Audio Pixels - Research Report - 24th Of June 2020, page-40

Possibly Bob, but I wonder what sort of production volumes they will start with. Either way it's likely that a significant amount of cash will be required. We know it will take 6 months to produce, test and package chips ready for distribution to customers. So that's 6 months production costs before even the first chips are ready. You might then stage delivery over a period of months or continue producing x-number of chips per month for a number of customers Then maybe another 1 or 2 months before invoices are paid. So at least 7 to 8 months before you start seeing any real cash flow and you will have had to finance another 6 months of lead time fabrication. So that's well over a year's worth of fabrication to cover off on. Meanwhile you are likely to have had to ramp up production for additional customers (otherwise there would be no growth).

I'm expecting 2 x capital raises. One at the end of this year and one towards the end of next year to ramp up production. I also think that the amount of the raise will depend on the share price at the time as Fred will not want to dilute his holding too much. So the initial production volume might also well depend on the capital raised.

I've tried to find out what sort of spare capacity Tower Semiconductors has, but I can't see any firm numbers. However, from a CEO investor briefing some years ago he did say that one of his missions was to fill their spare capacity - so they will likely have spare capacity at least. So cash might be the limiting factor.