RE:KRC Insights - Equity Research I have to say that KRC is out to lunch on these estimates. FLY just took $600K per year in interest payments on the $5M they borrowed and now have a servicable debt of close to $12M. Edge has not been certified yet, but is close. Based on past sales experiences from FLY, they are more than a year out on seeing any significant revenues from the edge device. And even then based on past sales, the ramp up will be way slower than KRC is showing. I predict their YOY EBITDA will creep towards $0.00 over the next 3 year and only if they can continue to keep reducing expenses by at least that $600K. Ask me how I know? Business Common Sense.
Over simplification:
The Debenture: $5,000,000
Net dollars to FLY: $4,450,000
12% Interest, 3yrs: -$1,800,000
Net $ gain to FLY: $2,650,000 or $833K per year
That is pretty expensive money assuming FLY is on a solid footing. I know you need to take the cash to stay alive, but saying this plus the over-promises on sales expectation to get to a target price of $1.80... really? ...come on!