RE:RE:Question For The BoardI believe large contracts will be staged over mutiple years. It's usually the hardware portion of contracts that would require the most capital. If the TTC said they wanted ALE on their fleet of buses, it could be $20M (est. 2000 buses x $10K/bus) over 2 years or $10M / year. If they had multiple contracts awarded simultaneously (say LA with 2300 buses) that could be another $12M/year for a total of $22M a year.
Add those high valued " contracts" spread over 2 years, or $22M a year to their current business of say $35M rev / year and that comes to about $57M. To fund those sort of revenues, you would need about 25 - 30% capital or about $15 - $20M. Under that scenario, with $13M in working capital at year end and an untapped LOC, they shoud be OK in this case. If the share price jumps up to $1 or so on this type of news and positive financial reports, GSI could consider an equity financing to avoid those bank interest rates.