At the moment they have "qualified" accounts which means at the...

At the moment they have "qualified" accounts which means at the bottom of the audit report there is a line which says basically they could go broke.

To have this removed they need about $5m in the bank, at the moment they have about 1.5m in credit.

Some blue chips have rules, basically as part of their due diligence regarding items that could potentially effect the smooth running of the company, data security in particular. This means that some just can't use newsat while their accounts are qualified.

I asked the exact same question "if you're making money why not put some back into reserves?" the answer is, you could do that but it would take longer and there are contracts that could be got right now so it's a bit of a catch 22 if you put money into reserves you make more money quicker.

Also finance for the satellite is a lot easier if you present unqualified accounts to the prospective financiers. As the want this sorted by June it may be easier to just issue say $3m to people that want them? I as a fairly large share holder expect to be offered some should they go down that path. It's not in cement yet as far as I know.


TG