Financial Strength?

[boomboom]

With all the recent PR, I seem to have momentarily forgotten about the lack of cash situation but if I recall correctly we should only have...a month or less of cash available? Not sure if this is accurate but I think its close. Is there a feeling that we are going to receive or dilute in the near-term? Just have not heard many people discussing this as of late. Thoughts?

[sexychefski]

Do we think that the cash situation is already priced in at this point, or has this price movement been created to build excitement among us?

[saxcmann]

Jun 9, 2017 9:53:37 GMT -5 boomboom said:

With all the recent PR, I seem to have momentarily forgotten about the lack of cash situation but if I recall correctly we should only have...a month or less of cash available? Not sure if this is accurate but I think its close. Is there a feeling that we are going to receive or dilute in the near-term? Just have not heard many people discussing this as of late. Thoughts?

We have 3-4 months minimum. Cash burn changed.

[deaner3]

Yes. I believe dilution is baked into current pps

If mike comes through with non dilutive funds price will skyrocket up.

I don't think the market believes it will happen thus the current price per share

But we have funds until fall.

And if we were really worried about financing then you'd like Chung wouldn't be leaving decades long good jobs from Amgen and MILLER was at Bristol Myers for close to 2 decades. So these top guys wouldn't leave top jobs to join forces if they were concerned. They know more than we do.

So they aren't concerned. I'm not concerned in the slightest

[cjm18]

Cash until September. Burn rate more than 7 million per month.

Matt seemed to think 20 to 25 million cash would come from debt.
Epipen partner and afrezza shipment overseas could help too.

[Tinkerbell]

Personally I think we need to see a raise come through a Rights Offering and in my opinion, it should be enacted sooner rather than later.

I've held stock in this company well beyond 2 years while others have held for longer and some left their position long ago. At the core of my long view is a steadfast belief that Afrezza and Technosphere are genius and if wasn't for long term investors and Mr. Mann's personal money, Afrezza would not exist. Those who shorted this stock for years had nothing to do with Afrezza's market approval in any way, shape or form - of that you can be sure.

Some will say geesh - I can't afford to put another nickel into this company. A Rights Offering doesn't insist you spend a red cent and that's why it's an offering. However, putting additional shares out into the public domain where market makers could access them? I don't think so. This long term investor would instead agree to a dilution where I could potentially benefit 10 years from today when such a dilution would mean squat. Note the word - potentially. I could lose all of my investment and that is also a reality I live with but not one I ascribe to - not yet anyway.

To this day and despite my paper losses, Afrezza has never, ever been the issue. MannKind BOD and management up through Sanofi's exit? That's a whole other story for MBA programs to decipher.

[babaoriley]

Jun 9, 2017 10:15:52 GMT -5 deaner3 said:

Yes. I believe dilution is baked into current pps

If mike comes through with non dilutive funds price will skyrocket up.

I don't think the market believes it will happen thus the current price per share

But we have funds until fall.

And if we were really worried about financing then you'd like Chung wouldn't be leaving decades long good jobs from Amgen and MILLER was at Bristol Myers for close to 2 decades. So these top guys wouldn't leave top jobs to join forces if they were concerned. They know more than we do.

So they aren't concerned. I'm not concerned in the slightest

Hey, deaner, are those "top guys" kinda like our "top salesforce?" 

[scoy]

Jun 9, 2017 10:15:52 GMT -5 deaner3 said:

Yes. I believe dilution is baked into current pps

If mike comes through with non dilutive funds price will skyrocket up.

I don't think the market believes it will happen thus the current price per share

But we have funds until fall.

And if we were really worried about financing then you'd like Chung wouldn't be leaving decades long good jobs from Amgen and MILLER was at Bristol Myers for close to 2 decades. So these top guys wouldn't leave top jobs to join forces if they were concerned. They know more than we do.

So they aren't concerned. I'm not concerned in the slightest

What if the issue has a reality that extends beyond what lives in your cerebrum? I believe that tendency to be concerned is mostly personality type. I grew up poor and I'm really concerned about finances and that seems natural to me. What if financial strength is different than thinking what if Mike comes through?

What if financial strength is more than just paying bills for some small number of weeks?

An example is, what if the company is wrong on the economics of advertising? What if it was such that they ran ads and 1000s of people called their doctors? What if those 1000s reported great news to their doctor and those 1000 doctors started converting all their diabetic patients to Afrezza?

What if financial strength has a real impact on companies?

[deaner3]

I wouldn't say we have a top sales force yet since they were just hired and just started. So hopefully they develop into that but so far not

[matt]

The company does not have a prudent amount of cash on the balance sheet, which most financial people will tell you is a minimum of one year of anticipated cash burn. The analogy is that of a family that is barely making its mortgage payments each month; that is fine while the good times last but when the furnace dies in January where does the money come from to replace it?

The financial markets are fickle, and medical stocks in particular are due for a correction. The sooner the balance sheet is corrected the better because as the financial condition continues to deteriorate the price of that financing will only increase, and at some point it will not be available at all on commercially reasonable terms. People have talked about a rights offering, but that requires authorization of more shares and that is a minimum 21 day process due to the need for a fresh proxy and shareholder vote (SEC rules require 21 day notice before a vote). There is hope for more foreign deals, but one was just announced with Brazil that came with no up-front money. More licenses of TS are possible, but RLS only paid $1 million and that required MNKD to do a lot of development work before it was paid, and $1 million only covers three days of operations!

The problem is that many of the ideas on the table take time to develop and are uncertain at best, while the $10 million of debt due in July is a certainty as in the $7 million per month burn rate. The market is not going to look kindly on the company until some of the ideas for strengthening the balance sheet shift to completed transactions.

[sayhey24]

Mike C. said the other week he is looking for a U.S. partner to sell to the T2 U.S. market. He seemed to have someone in mind with 300-500 sales guys. Lets see if we see a PR in the next few days. In the meantime I would suggest a nice cool summer drink - gin/tonic maybe and relax.

[slugworth008]

Jun 9, 2017 15:36:52 GMT -5 babaoriley said:

Jun 9, 2017 10:15:52 GMT -5 deaner3 said:

Yes. I believe dilution is baked into current pps

If mike comes through with non dilutive funds price will skyrocket up.

I don't think the market believes it will happen thus the current price per share

But we have funds until fall.

And if we were really worried about financing then you'd like Chung wouldn't be leaving decades long good jobs from Amgen and MILLER was at Bristol Myers for close to 2 decades. So these top guys wouldn't leave top jobs to join forces if they were concerned. They know more than we do.

So they aren't concerned. I'm not concerned in the slightest

Hey, deaner, are those "top guys" kinda like our "top salesforce?" 

  Or like the quote from the Indiana Jones movie about the Ark of the Covenant - Question: Who's working on this" Answer: "Top-People"....."Top-People"....lol 

[slugworth008]

Jun 10, 2017 8:17:15 GMT -5 sayhey24 said:

Mike C. said the other week he is looking for a U.S. partner to sell to the T2 U.S. market. He seemed to have someone in mind with 300-500 sales guys. Lets see if we see a PR in the next few days. In the meantime I would suggest a nice cool summer drink - gin/tonic maybe and relax.

  Or a PIMMS FIZZ   Cool as a cucumber - 

[lakon]

Jun 10, 2017 8:09:56 GMT -5 matt said:

The company does not have a prudent amount of cash on the balance sheet, which most financial people will tell you is a minimum of one year of anticipated cash burn. The analogy is that of a family that is barely making its mortgage payments each month; that is fine while the good times last but when the furnace dies in January where does the money come from to replace it?

The financial markets are fickle, and medical stocks in particular are due for a correction. The sooner the balance sheet is corrected the better because as the financial condition continues to deteriorate the price of that financing will only increase, and at some point it will not be available at all on commercially reasonable terms. People have talked about a rights offering, but that requires authorization of more shares and that is a minimum 21 day process due to the need for a fresh proxy and shareholder vote (SEC rules require 21 day notice before a vote). There is hope for more foreign deals, but one was just announced with Brazil that came with no up-front money. More licenses of TS are possible, but RLS only paid $1 million and that required MNKD to do a lot of development work before it was paid, and $1 million only covers three days of operations!

The problem is that many of the ideas on the table take time to develop and are uncertain at best, while the $10 million of debt due in July is a certainty as in the $7 million per month burn rate. The market is not going to look kindly on the company until some of the ideas for strengthening the balance sheet shift to completed transactions.

How many authorized shares does MNKD have today?

[rossomalley]

Jun 10, 2017 8:17:15 GMT -5 sayhey24 said:

Mike C. said the other week he is looking for a U.S. partner to sell to the T2 U.S. market. He seemed to have someone in mind with 300-500 sales guys. Lets see if we see a PR in the next few days. In the meantime I would suggest a nice cool summer drink - gin/tonic maybe and relax.

If we don't see a deal like that announced within next week or two MNKD will be heading back under a dollar. Rx are shockingly bad (clearly we haven't solved retention problems & Mike's insurance coverage progress seems to be less than advertised), so we're going to get growing presumption of BK again soon. Enjoy your G&T this weekend and let's hope for a PR that involves some cash on Monday.