nxs debt going cheap, page-8

The amount of debt isn't an issue, the issue is for how long will NXS depend on their cash reserves to pay off their obligations? They raised capital in order to complete projects but they are also eating into the same reserves to pay off their interest. Even if you had a $200k loan, if you can't pay it off through income streams you have a problem.

Interest on its notes is $17 million. 50% of pre-tax revenue from Longtom is $35 million; approximately $8-8.5 million net. This isn't enough to pay off its obligations.

As I said, they have great assets which hopefully a deal is brokered very soon and get a nice injection of cash that will last three-four years, otherwise any sort of cap raising is going to be substantial. They won't seek futher finance, interest payments on zero revenue to $10 million revenue is way too high.