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Post by chuck on Jan 17, 2017 20:29:32 GMT -5
Monthly cash burn will remain the same as guided by Matt last week. All the new hires included. The company will execute on all initiatives in 2017 as guided. If there is no additional cash infusion by Q3, they will dilute or get other financing. They will just keep going until they succeed, get used to it! "Monthly cash burn will remain the same as guided by Matt last week. All the new hires included." How is that possible? Even aside from new management and other non-sales rep hires, it was stated that they were looking to get up to, as I recall, 95 new reps. Plus they said they were increasing advertising, helping fund a reality series, develop new products, etc. I would think it'd be necessary that the burn increase substantially. Where could they cut current expenses? You should expect to see them beginning to "shovel" mnkd shares/options out the back of the truck to new hires in order to minimize cash burn.
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Post by sayhey24 on Jan 17, 2017 20:41:11 GMT -5
Monthly cash burn will remain the same as guided by Matt last week. All the new hires included. The company will execute on all initiatives in 2017 as guided. If there is no additional cash infusion by Q3, they will dilute or get other financing. They will just keep going until they succeed, get used to it! "Monthly cash burn will remain the same as guided by Matt last week. All the new hires included." How is that possible? Even aside from new management and other non-sales rep hires, it was stated that they were looking to get up to, as I recall, 95 new reps. Plus they said they were increasing advertising, helping fund a reality series, develop new products, etc. I would think it'd be necessary that the burn increase substantially. Where could they cut current expenses? How is that possible? Maybe they expect to sell something. I know it sounds crazy at this point but hope springs eternal. I read the Dexcom PR about the medicare approval and they said CGM was the greatest advance in 40 years. I contend afrezza is the greatest advance in 80 years. It sure would be nice to combine the two and get near-natural pancreatic meal-time results.
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Post by buyitonsale on Jan 17, 2017 20:54:47 GMT -5
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Post by slugworth008 on Jan 17, 2017 23:18:24 GMT -5
I don't think anyone coming into the company is too worried, or gives much thought at all, to the company's financials before accepting a position. Think about it, did you financially vet any companies you've worked for before you accepted a position. Most people haven't done that either and I'd wager none of the recent hires are right there with them. People are more focused on the job, what their responsibilities are, what challenges they might face and aren't worried about the 40,000 foot view of the company all together. That's the CEO/CFO's job and that's Matt in both cases. Mike probably isn't, and shouldn't be worried about the company's finances. If he is, I certainly wish he'd focus on his one and only job: sell Afrezza. So no, I don't think new hires are vetting MNKD before accepting positions and no, I don't think that MNKD hiring someone means that good things are on the horizon because somehow someway MNKD hiring someone means anything other than what it is on face value. MNKD offered them a job that probably pays pretty well and it would be an improvement from their previous job. It's why people accept any job. I think that's as far as you can read into it. But that's just my opinion. This is just a ridiculous thing to say that people don't properly vet a company before joining. It would be so irresponsible for an executive level professional to not vet a company's financial position before joining when a huge chunk of compensation is related to stock performance. Maybe if you are a fry cook at mcdonalds then the financial position of mcdonalds may not matter to you. Joining a new company at the highest levels is a huge decision, it's a long term decision that impacts your career, your life, and your family. Nobody jumps on a sinking ship if they think it is sinking, a few months of salary aren't worth it. Well said and absolutely !!!!
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Post by Deleted on Jan 18, 2017 6:12:50 GMT -5
Some look at financials before accepting an offer but don't be surprised if others don't give it much thought. Crazy yes but people never fail to amaze or surprise.
Cash burn, not so sure it was or was not an accurate portrayal on the call and this is not intended to say there is / was an attempt to deceive. New sales people working with lower base, bigger bonus and options. In this compensation scenario, the upside has to be greater than the typical base / bonus structure a rep would get at a stable company; more risk hence more reward at MNKD. If the rep sells enough Afrezza they make more and presumably the incremental sales more than cover their bonus with an overall positive impact to the cash situation. Problem is if reps cannot sell enough Afrezza to make bonus, they become demoralized and their productivity drops and if other jobs available, they will leave and MNKD then has to go interview, hire and train a new rep which is time consuming and expensive. This reality exists with any new or young company. Watch the NRx closely, without growth, cash is adversely impacted and turnover among salesforce will be an issue. Conversely, if NRx grows, happy times for all and after this, refill rate is next key metric.
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Post by falconquest on Jan 18, 2017 6:24:15 GMT -5
Very rational comments scotta.
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Post by wildthing on Jan 18, 2017 13:05:17 GMT -5
I saw where he said "I can tell you it’s really essentially not going to change for ‘17 over recent periods," but I don't see how that is possible. I would think all the new hires, both sales reps and otherwise, plus DTC advertising, etc, must increase burn unless they cut costs somewhere else. However, he didn't say anything about cutting costs. What can they eliminate to save money?
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Post by dreamboatcruise on Jan 18, 2017 15:18:36 GMT -5
I don't think anyone coming into the company is too worried, or gives much thought at all, to the company's financials before accepting a position. Think about it, did you financially vet any companies you've worked for before you accepted a position. Most people haven't done that either and I'd wager none of the recent hires are right there with them. People are more focused on the job, what their responsibilities are, what challenges they might face and aren't worried about the 40,000 foot view of the company all together. That's the CEO/CFO's job and that's Matt in both cases. Mike probably isn't, and shouldn't be worried about the company's finances. If he is, I certainly wish he'd focus on his one and only job: sell Afrezza. So no, I don't think new hires are vetting MNKD before accepting positions and no, I don't think that MNKD hiring someone means that good things are on the horizon because somehow someway MNKD hiring someone means anything other than what it is on face value. MNKD offered them a job that probably pays pretty well and it would be an improvement from their previous job. It's why people accept any job. I think that's as far as you can read into it. But that's just my opinion. I have. Not that I would necessarily drop a poorly financed company from consideration but it might affect what I'd look for in a compensation package. Though as I get closer to retirement I think the vetting might actually sway me to go with a safer bet. I couldn't possibly guess what these guys might have considered or not... people are VERY different in the willing to take risks, and the dynamics of their profession/career would highly influence how much of a risk going with a long shot might be if they indeed perceived it as a long shot.
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Post by nadathing on Jan 18, 2017 19:06:19 GMT -5
I'm in sales for the money. I determine my own destiny. Dangle a large enough carrot in front of me and you get 110%. I would think some stock options and huge bonuses are out there for successful reps. If MNKD folds these reps will find another home. Good sales people are never unemployed.
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Post by kuka on Jan 19, 2017 2:29:02 GMT -5
I have worked at many companies, and jumped to many new "opportunities". And only once (out of 11 job moves) did I jump to a sinking ship because I got laid-off and had nothing better. I even turned-down a Fortune-20 company last year because they could only guarantee me 1 year employment. These Amgen guys aren't jumping to MNKD without big guarantees and have gotten huge insider knowledge.
Exactly .... no VP of anything would risk moving over to a company that some say is going Bankrupt ..... lots of subtle bashing going on here ....but its more sophisticated than other boards. I stand my my initial theory but I really care about other negative opinions here because I am loaded for Bear with MNKD. Time will prove if I am a genius or a broke idiot.
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Post by silentknight on Jan 19, 2017 7:02:38 GMT -5
MNKD isn't going bankrupt, at least not for several months at the earliest. They have ATMs they can use as well as a line of credit from the Mann Group. That would get them through 2017 at least. Beyond that is anyone's guess, including these new hires. Matt CANNOT provide them assurances, beyond what we all know to be public knowledge already, that MNKD will survive past their current runway plus ATM & Mann Group financing. He can sell them on a great opportunity, exciting potential with Afrezza and probably a pretty lucrative options package to sweeten the deal but to provide them assurances that MNKD will be alive an well beyond what we all know to be their present balance sheet would either be a) a lie or b) material information that he (and the company) are witholding from shareholders, in violation of federal securities law.
The new hires might have looked at the situation and still decided to work at MNKD, but this idea that they're all coming to the company because there's some secret, previously unannounced (but finalized) plan to keep the company alive that only Matt and company insiders know about has no legs. I'm a believer that the new hires saw a pretty sweet stock options offer in front of them, were looking for other opportunities, knew Mike, and took the deal. Simple as that.
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Post by lakon on Jan 19, 2017 10:21:31 GMT -5
MNKD isn't going bankrupt, at least not for several months at the earliest. They have ATMs they can use as well as a line of credit from the Mann Group. That would get them through 2017 at least. Beyond that is anyone's guess, including these new hires. Matt CANNOT provide them assurances, beyond what we all know to be public knowledge already, that MNKD will survive past their current runway plus ATM & Mann Group financing. He can sell them on a great opportunity, exciting potential with Afrezza and probably a pretty lucrative options package to sweeten the deal but to provide them assurances that MNKD will be alive an well beyond what we all know to be their present balance sheet would either be a) a lie or b) material information that he (and the company) are witholding from shareholders, in violation of federal securities law. The new hires might have looked at the situation and still decided to work at MNKD, but this idea that they're all coming to the company because there's some secret, previously unannounced (but finalized) plan to keep the company alive that only Matt and company insiders know about has no legs. I'm a believer that the new hires saw a pretty sweet stock options offer in front of them, were looking for other opportunities, knew Mike, and took the deal. Simple as that.With respect to the law, I think that you have said this sort of thing a few times, or maybe you and a few others. The statement is not entirely accurate. Before hiring, it would be true that they could not tell potential new hires anything that is not already public information. They could imply things are in the works so that the CEO is not too terribly worried, like Matt already said. Mike could give a wink and a nod to his buddies over a beer. "We're all winners here, aren't we?" That would all be perfectly legal. After hiring, they become insiders, subject to insider trading rules AND inside information, such as potential sources of financing being pursued as well as expectations of successfully negotiating terms. Since none of the inside information is completed and signed on the dotted line, it is not material information subject to legal disclosure rules under federal securities law. For example, if Claude Mann said to Matt that he should give her a call if all else fails, that would be good inside information to know after hiring, but not material until after a deal is made. In summary, you are overstating the extent of federal securities laws with respect to material information under disclosure requirements. That said, I agree that there is likely no big secret that is shared with the new hires, but there could very well be a lot of insider secrets that only Matt knows. Hakan probably knows some too so MNKD keeps paying him to keep him quiet and non-competitive -- far better than a fight in court after the fact. Keep your friends close... Mike might even know a few secrets by now. I'm sure the new hires, including Mike, saw that they stand to profit enormously IF they succeed in a few years. Over the next ten, the decision could make their careers, make them very wealthy, and they are still young...so why not is the question. I'd consider working for MNKD for $1/yr with a good stock option plan, but not sure they'd have me since I'm not experienced in their fields of interest at the moment. Also, I don't like the idea of being regulated, but Trumped, sure, I could go for that.
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Post by sportsrancho on Jan 19, 2017 11:27:52 GMT -5
MNKD isn't going bankrupt, at least not for several months at the earliest. They have ATMs they can use as well as a line of credit from the Mann Group. That would get them through 2017 at least. Beyond that is anyone's guess, including these new hires. Matt CANNOT provide them assurances, beyond what we all know to be public knowledge already, that MNKD will survive past their current runway plus ATM & Mann Group financing. He can sell them on a great opportunity, exciting potential with Afrezza and probably a pretty lucrative options package to sweeten the deal but to provide them assurances that MNKD will be alive an well beyond what we all know to be their present balance sheet would either be a) a lie or b) material information that he (and the company) are witholding from shareholders, in violation of federal securities law. The new hires might have looked at the situation and still decided to work at MNKD, but this idea that they're all coming to the company because there's some secret, previously unannounced (but finalized) plan to keep the company alive that only Matt and company insiders know about has no legs. I'm a believer that the new hires saw a pretty sweet stock options offer in front of them, were looking for other opportunities, knew Mike, and took the deal. Simple as that.With respect to the law, I think that you have said this sort of thing a few times, or maybe you and a few others. The statement is not entirely accurate. Before hiring, it would be true that they could not tell potential new hires anything that is not already public information. They could imply things are in the works so that the CEO is not too terribly worried, like Matt already said. Mike could give a wink and a nod to his buddies over a beer. "We're all winners here, aren't we?" That would all be perfectly legal. After hiring, they become insiders, subject to insider trading rules AND inside information, such as potential sources of financing being pursued as well as expectations of successfully negotiating terms. Since none of the inside information is completed and signed on the dotted line, it is not material information subject to legal disclosure rules under federal securities law. For example, if Claude Mann said to Matt that he should give her a call if all else fails, that would be good inside information to know after hiring, but not material until after a deal is made. In summary, you are overstating the extent of federal securities laws with respect to material information under disclosure requirements. That said, I agree that there is likely no big secret that is shared with the new hires, but there could very well be a lot of insider secrets that only Matt knows. Hakan probably knows some too so MNKD keeps paying him to keep him quiet and non-competitive -- far better than a fight in court after the fact. Keep your friends close... Mike might even know a few secrets by now. I'm sure the new hires, including Mike, saw that they stand to profit enormously IF they succeed in a few years. Over the next ten, the decision could make their careers, make them very wealthy, and they are still young...so why not is the question. I'd consider working for MNKD for $1/yr with a good stock option plan, but not sure they'd have me since I'm not experienced in their fields of interest at the moment. Also, I don't like the idea of being regulated, but Trumped, sure, I could go for that. lakon, when I read the above post early this morning I thought no, there is something wrong here. It's not that simple! You expressed what I was thinking but couldn't put into words. There is a lot of gray. It's not just black and white. Many things could be in the works that will not be talked about until done. Which when someone is privy to can be alluded to easily. Anyway great post!
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Post by silentknight on Jan 19, 2017 12:28:25 GMT -5
MNKD isn't going bankrupt, at least not for several months at the earliest. They have ATMs they can use as well as a line of credit from the Mann Group. That would get them through 2017 at least. Beyond that is anyone's guess, including these new hires. Matt CANNOT provide them assurances, beyond what we all know to be public knowledge already, that MNKD will survive past their current runway plus ATM & Mann Group financing. He can sell them on a great opportunity, exciting potential with Afrezza and probably a pretty lucrative options package to sweeten the deal but to provide them assurances that MNKD will be alive an well beyond what we all know to be their present balance sheet would either be a) a lie or b) material information that he (and the company) are witholding from shareholders, in violation of federal securities law. The new hires might have looked at the situation and still decided to work at MNKD, but this idea that they're all coming to the company because there's some secret, previously unannounced (but finalized) plan to keep the company alive that only Matt and company insiders know about has no legs. I'm a believer that the new hires saw a pretty sweet stock options offer in front of them, were looking for other opportunities, knew Mike, and took the deal. Simple as that.With respect to the law, I think that you have said this sort of thing a few times, or maybe you and a few others. The statement is not entirely accurate. Before hiring, it would be true that they could not tell potential new hires anything that is not already public information. They could imply things are in the works so that the CEO is not too terribly worried, like Matt already said. Mike could give a wink and a nod to his buddies over a beer. "We're all winners here, aren't we?" That would all be perfectly legal. After hiring, they become insiders, subject to insider trading rules AND inside information, such as potential sources of financing being pursued as well as expectations of successfully negotiating terms. Since none of the inside information is completed and signed on the dotted line, it is not material information subject to legal disclosure rules under federal securities law. For example, if Claude Mann said to Matt that he should give her a call if all else fails, that would be good inside information to know after hiring, but not material until after a deal is made. In summary, you are overstating the extent of federal securities laws with respect to material information under disclosure requirements. That said, I agree that there is likely no big secret that is shared with the new hires, but there could very well be a lot of insider secrets that only Matt knows. Hakan probably knows some too so MNKD keeps paying him to keep him quiet and non-competitive -- far better than a fight in court after the fact. Keep your friends close... Mike might even know a few secrets by now. I'm sure the new hires, including Mike, saw that they stand to profit enormously IF they succeed in a few years. Over the next ten, the decision could make their careers, make them very wealthy, and they are still young...so why not is the question. I'd consider working for MNKD for $1/yr with a good stock option plan, but not sure they'd have me since I'm not experienced in their fields of interest at the moment. Also, I don't like the idea of being regulated, but Trumped, sure, I could go for that. You're correct in that there very well may have been some "Trust me, we're going to be ok. *wink*" type conversations with the new hires, but my point is that for Matt to say what many are speculating, i.e. full disclosure of concrete plans to provide assurances that the company will be alive 3,5,10 years from now simply couldn't happen without triggering the material notification obligations. They may have ideas or avenues for future financing, but none of it is complete or locked in or we'd have known about it. The absence of that means the new hires, like the rest of us with MNKD, are assuming risk by associating with the company. Obviously, they see the potential rewards outweighing the risks or they wouldn't have accepted the position. Investors are the same. We invest our money under the belief that the potential rewards outweigh the risks. Matt surely knows more than we do as CEO, but my point is that the level of certainty that many people believe these new hires have been given is likely not as concrete as people believe. That being said, I agree with your post and ultimately I think they are all there for the opportunity they see. Opportunity to succeed is something MNKD has much more to offer than job security, given their recent problems and efforts to reduce cash burn. IF they succeed, we will share in their success and I certainly hope they can.
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