Ann: Trading Halt, page-38

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Niftyw

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05/04/19

11:20

Post #: 38010880
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Originally posted by OzJ: ↑

On the good news side of the GOM reports, they didn't write off any of the SAS debt. So they still see SAS as a viable concern, which is good. Their accountants would have been looking at those outstanding amounts closely and would have (you hope) allowed no shenanigans.

GOM has one provision in their financial statement for the interest costs from the unpaid SAS bills (I expect the new contract terms, if that is what is announced, to no longer have GOM wearing the costs of a late SAS payment). They also have a provision for contract losses but that amount isn't even close to what SAS owes and they don't detail which contract required the provision. It could be for a non-SAS contract. It could also be for work that they started for SAS (before payment) so it hangs as a potential loss (and they stopped the work before it reached anything close to the full contract value).

But regardless, I expect the announcement to be new contract terms that involve upfront payment before GOM restarts construction. Additionally, I would expect SAS to announce they have paid their remaining outstanding debt to GOM (they paid about 2/3's of it in the beginning of March, just before GOM published their financial statements) and that the production line has restarted. But as I pointed out before, we'll see how many sats GOM is agreeing to build. If they won't build without upfront payment (my guess on the new terms) then that will give a clear indication of where SAS stands financially (as I stated immediately above).

DOYR.

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Unfortunately i think you are right. As much as I want it to be something much more exiting than renegotiated terms with Gomspace. This does seem to be the most likely. I really am hoping you and I are both wrong and it is something much better.

SAS Price at posting: 2.8¢ Sentiment: Buy Disclosure: Held
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Ann: Trading Halt, page-38

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