From: jeffrey E. <jeevacation@gmail.com>
Sent: Sunday, December 14, 2014 9:28 PM
To: Brad Wechsler
Subject: Re: Phaidon
Need to combine with bfp
On Sunday, December 14, 2014, Brad Wechsler= > wrote=
Jeffrey-after our conversation today I =ook a look at Phaidon summary financials (for the first time). Here's =ow I
would re-state your observation(s):
1. Do leon and the trustees know/understand that the $1.5mm net income proj=ction for 2015 disconnects from
cash substantially, ie,
2. The cash projection from the operating business and modest cap-ex is neg=tive $4.4mm and
3. Maximum cash drawdown for 2015 looks like $6.25mm in january (mostly fro= changes in working capital).
4. Presentation seemed reasonably clear EXCEPT, in my package, you can'= really have insight into 2016/17 cash
flows.
Basic question for leon and Ee's is "familiarity" with $4.4mm=cash use. Are you and I in synch? This, of course, is
based on "=2015" which looks like it ends in june of next year. Additional quest=on is for Phaidon to develop the future
cash flows (which they may have al=eady done?) so they can go to trustees with a more developed cash flow pro=ection
and funding request. B
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