RE:RE:Interesting information on SIOSailor, here's a translation of the first slide:
First, some context: this appears to have been written by Routhier, back in December. I've added notes in yellow based on my research or educated guesses.
SENSIO TECHNOLOGIES
ADDITIONAL INFO AND GAME PLAN
ADDITIONAL INFO ON CASHFLOW
SALARIES AND WAGES
-Julie (Pedneault - marketing) and Roberto (Pimental - VP Engineering) will work 3 days/week, Eric and me 4 days/week.
-Eric and me will be on vacation during the Holiday season (unpaid days except for Holidays)
-Eric will take two weeks of unpaid vacation in February (honeymoon!!!)
-A $10K bonus granted immediately but payable at the end of February to Eric
-We have reduced the amount of committee meetings to 1 per month (we will send regular updates so that you may be aware of new developments)
-Each (board?) meeting costs at least $4k-$5k, or $1k in tokens and $3k-$4k in fees from Stikeman and Deloitte (preparation, presence to meetings and follow-up)
-We have reduced the monthly wages of the Board to 60% of the base amount due to budget restrictions.
-The "dette salariale" (salary debt - see sheet) represents the amount which will be owed to Sensio employees who have worked pro-bono until regular pay is restored
CRITICAL SUPPLIERS
-All critical suppliers will be paid as we go, including Deluxe and Cogir (landlord) for the first month of rent.
-We have a reserve set aside for Disney and Paramount ($25k each) just in case, but we'll try to pay nothing.
-The first installment of $32k to Stikeman is planned
-After discussing with Benoit (probably from Stikeman), an amount of $3k per week, including Patrick St-Yves (lawyer/corporate counsel - was in the creditors list) was added - which seems reasonable.
-Deloitte has not given us any numbers. Martin (Franco - Deloitte guy) has mentioned that as long as we don't reach liquidation, fees should be minimal, maybe even null.
SALE OF ASSETS
-The sale of Algolith technologies and the transfer of the Matrox contract are included in the $50k CAD amount, i.e. the offer from Eric and me (could be more if we obtain something better from Matrox) as well as a $10k fee to have it authorized by a judge.
-The WiLAN sale is set for 2 weeks after the LOI, to make sure we have the financial resources to pull through if there are unexpected delays.
MISSING ELEMENTS
-We have no amount set aside for travelling or other expenses in support of the 3DGO sale.
With all that, we still have enough money at the end of February to be able to take some decisions. FYI, the total of hours for the team in this context only represents about 2.6 full-time employees. This isn't much to run a service and manage a liquidation and sale, no matter how we want to justify it. I don't think it's a luxury!
GAME PLAN
PHASE 1 - PREPARATION
January
-Transfer of all equipment required by 3DGO operations to Nicholas' home (plan for phones lines, etc)
-Liquidation of anything not required by 3DGO operations
-Closing the offices at Nordelec (that will save $11k per month)
-Deals with critical suppliers, including studios
-Sending teaser to potential buyers and first contacts
PHASE 2 - INTEREST
February
-Preparing 3-year projections and revenue hypotheses
-Preparing document vault for due diligence
-Follow-up with potential buyers and generating NDAs + initial interest
-Interest qualification by Deloitte and decisions on the next steps
-If no interest, stopping the process, permanent layoffs and final liquidation; else, phase 3
PHASE 3 - NEGOTIATIONS (if interest for 3DGO)
-Finalizing sale of Algolith technologies (to Eric and me or Matrox)
-Meeting with potential buyers and negotiations
-Sale of 3DGO!
The point is to make sure to start the process in January and, while waiting for answers from potential buyers, to liquidate unnecessary assets and significantly reducing our costs by cutting off the rent. Nicholas is offering to host critical equipment at his home (at no cost for Sensio). If, by the end of February, we are unable to generate obvious interest from potential buyers, then we'll have to liquidate Sensio and we'll have enough money by then to do so. To accomplish all that, we won't have too many hands internally, and for what comes next (after February), we'll see and we'll have to discuss it at that time with the information we have in hand.