[Debt Due and the SDI]Some verbiage from the last con call regarding debt and the sdi:
"...The associated rate on two of the notes was reduced from 20% to 15%. We coupled this new $13.1 million note with the restructuring note from March totaling $9.1 million, the new outstanding balance with Vertex is therefore $22.3 million. The $9.1 million portion of this balance is due in August and the $13.1 million portion is due in October. We expect to service this debt from the proceeds of our SDI work and other portions of our business. The proceeds of the new $5 million borrowings were used to retire $600,000 of debt that came due in April from a lender other than Vertex, is also used for the payment of certain outstanding operating costs of the company and for the funding of pre-SDI activities required in advance of the project down payment and commencements..."
Regarding the highlighted debt dates:
- if imp intends to meet these dates then one could infer that they expect serious revenues over the next several months. Logic suggests its sdi revenue (speaking to imminent closure)
- of course these dates could concievably be extended once again for all or the remaining portions
Regarding pre-sdi activities:
- its apparant that pre work on the sdi has commenced (again speaking to imminent closure)
- Vertex increased lendings from 17m to 22m (roughly)...nearly %30 increase in exposure...what does that say about risk/confidence?