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Message: Re: Big or Small / DaBoss/jhawk/doni./.... calculations/ OZ
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Oct 16, 2008 08:09AM

Oct 16, 2008 08:11AM

Good stuff.

If memory serves, EDIG's burn rate has been ~$275K per month. They were looking to add an engineer or two and maybe they added support staff, so let's call it an even $300K.

At that rate, even a lower than expected $1M net would give them plenty of breathing room for the additional license. If they net $5M, we now have more than one year's operating expenses from only one mean ole copy cat. There are lots more in the weeds and six more on the grill.

Now, add one or two more license deals (probably from those on the red hot grill) before the end of the year or in early 2009 and any Wall Street calculator can do the math with all that black ink. It they announce new non-IFE programs -- we know they had some level of success with a health care trial but needed cash to move forward -- and we could get some notice from all that backed up cash lookin' for a home.

Obviously, all speculation, but not a bad daydream.

John


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