Thanks Neutral. I didn't quite follow all of your arguments, but in terms of revenue this is accounted for in the Oct 31 quarterly with a NET $3.728m cash burn, i.e. after revenue.
Some costs like the $218k marketing could be cut straight away and also some R&D. But I'm acknowledging that in saying allow an average of 3mths cash burn for wind up. i.e. some costs can be cut immediately, some costs need possibly 6mths run off.
What is certain is that the starting point is $34m at Oct 31. You can then deduct your own calcs of cashburn and run off. Whatever numbers you use, as a cashbox it's going to come down to less than the current price of $0.20 or $31.6m.
So to buy the current price you have to assume some value in the existing business, I say nil (it's a liability), or you put some value on the unknown future business they might vend in. That for me is too far away, uncertain and subject to further cash burn with delays whilst they sort this out so yes, you'd have to take these guys on a lot of trust.
I'll stick to a $0.10 valuation at this point and I think you're agreeing with me at the end of your post. I'm not buying for the moment anyway.
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