I don't get your point. for a start that 10m paid (ie. cash) would include costs for the 3 diamonds. Refer to my previous post which outlines the difference between cash vs accruals.
The point is, it is a very logical argument to say that prior to CDR being completed (and paid), none of the previous costs paid to gomspace would be for the construction, materials etc for the first batch of Pearls. Thus why there is still 1.9m owing to gomspace for batch 1 construction.
Regardless, this recent CR will be enough to fund the construction costs etc for batch 1, I think most people accept that. The key thing at this moment is the launch costs which are currently not funded. I think an update on how the US debt funding is progressing is important. If it was in advanced negotiations 2 months ago, surely there should be an update as to how it's going?
SAS currently have no back up launch provider (that Chinese MOU doesn't count - its nonbinding). IF VO keep delaying launch then there are few things that can play out:
1) Some sort of penalty clause in the VO contract whereby SAS would be reimbursed for any delays caused by VO; 2) the delay also delays any potential revenues, which prolongs the working capital requirements of SAS, pushing out further launches which will mean further CR's down the line; 3) snowball effect
Even if SAS has secured a new launch provider, this would more likely cause a significant delay. For example refer to an example schedule from Rocket Lab. Approximately 12month lead-in time. So if SAS were to sign with rocket lab today, i doubt they will be ready to launch in June 2019.
Therefore I expect the Monday announcement to be around the following: 1) Alteration to the gomspace agreement 2) update on the virgin orbit agreement 3) new launch provider signed agreement
SAS Price at posting:
2.8¢ Sentiment: Sell Disclosure: Not Held
