Ann: Company Update, page-42

A loose, back of the envelope calculation:

SAS have $14m in the bank after the last raise (following fees, etc). Set Apr 1 as day 1. They cost $10m a year to keep the lights on and have reduced spending by $1.4m, so that is $8.5 to run for 12 months.

They need to give GOM EUR4m (in advance, I believe, which will be in May) to build the sats. That's $6.2m. Plus, let's say double that again to launch them and get regulatory approvals and insurance and whatnot. So that's $12.5 to get the sats into the sky.

That leaves enough money to keep the lights on (14 - 12.5 = 1.5) for a little over a month. If they want to get the sats up, plus the next batch, at least $20m from here between payments in advance and lights on costs until revenue starts.

I don't see how they get anywhere near that money. They need revenue and don't have the cash available to get to that revenue bump. I don't think they can get a loan of a whim of a promise, not from a regular financial institution. Perhaps a VC loan of some sort with dibs on first revenue. But the equity position is such that there really isn't any company left to sell.

Yeah, I don't see how this doesn't end up as anything but a dead duck. Pump that GOM contract in the next 30 days so I can get out. Thanks.