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Post by thall on Aug 1, 2017 10:17:25 GMT -5
One question I have regards the new lease. The lease they had with the Mann Foundation was $21,000 a month. During the previous conference call, Rose said something to the effect they had been looking for some less expensive office space and then reported that they had leased a new office. But then the 10-Q says:
"Office Lease — On May 5, 2017, the Company executed an office lease with Russell Ranch Road II LLC to lease office space for the Company’s corporate headquarters in Valencia, California. The office lease commences on the earlier of (i) the date the Company commences business from the leased space or (ii) the later of the date of substantial completion of the build out by the landlord or August 1, 2017. The lease requires monthly payments of $40,951, increased by 3% annually, plus the estimated cost of maintaining the property by the landlord. The lease expires sixty-five months from the commencement date and contains a five year renewal option."
Twice as expensive not counting annual increases and property maitenance doesn't quite register as "less expensive" to me.
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Tinkerbell
Researcher
Watcher of the Skies
Posts: 143
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Post by Tinkerbell on Aug 1, 2017 10:26:11 GMT -5
One question I have regards the new lease. The lease they had with the Mann Foundation was $21,000 a month. During the previous conference call, Rose said something to the effect they had been looking for some less expensive office space and then reported that they had leased a new office. But then the 10-Q says: "Office Lease — On May 5, 2017, the Company executed an office lease with Russell Ranch Road II LLC to lease office space for the Company’s corporate headquarters in Valencia, California. The office lease commences on the earlier of (i) the date the Company commences business from the leased space or (ii) the later of the date of substantial completion of the build out by the landlord or August 1, 2017. The lease requires monthly payments of $40,951, increased by 3% annually, plus the estimated cost of maintaining the property by the landlord. The lease expires sixty-five months from the commencement date and contains a five year renewal option." Twice as expensive not counting annual increases and property maitenance doesn't quite register as "less expensive" to me. Excellent observation and I couldn't agree more. It requires a response given the obvious disparity from what was said and what is documented. We can speculate that there may be news August 7th that may make this expenditure understandable nonetheless, a statement was made and the opposite was done. This kind of thing needs to stop. Period.
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Post by dreamboatcruise on Aug 1, 2017 10:28:58 GMT -5
Where's the cash coming from? Where's the Cash coming from? Where's the CASH coming from? If/when they decisively answer this question and stop kicking the proverbial can - The share price will respond either VERY favorably or hit some new lows. There is no in between once we have an answer here, which is why we sit in this purgatory right now. Though if there is a can kick to be had and it avoids bankruptcy, kick away.
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Post by dreamboatcruise on Aug 1, 2017 10:31:19 GMT -5
One question I have regards the new lease. The lease they had with the Mann Foundation was $21,000 a month. During the previous conference call, Rose said something to the effect they had been looking for some less expensive office space and then reported that they had leased a new office. But then the 10-Q says: "Office Lease — On May 5, 2017, the Company executed an office lease with Russell Ranch Road II LLC to lease office space for the Company’s corporate headquarters in Valencia, California. The office lease commences on the earlier of (i) the date the Company commences business from the leased space or (ii) the later of the date of substantial completion of the build out by the landlord or August 1, 2017. The lease requires monthly payments of $40,951, increased by 3% annually, plus the estimated cost of maintaining the property by the landlord. The lease expires sixty-five months from the commencement date and contains a five year renewal option." Twice as expensive not counting annual increases and property maitenance doesn't quite register as "less expensive" to me. Excellent observation and I couldn't agree more. It requires a response given the obvious disparity from what was said and what is documented. We can speculate that there may be news August 7th that may make this expenditure understandable nonetheless, a statement was made and the opposite was done. This kind of thing needs to stop. Period. What space was MNKD leasing from the Mann Foundation? The corporation owned their old HQ, didn't they?
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Post by cjm18 on Aug 1, 2017 10:39:13 GMT -5
When is the dilution? How much dilution?
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Post by thall on Aug 1, 2017 10:52:52 GMT -5
Excellent observation and I couldn't agree more. It requires a response given the obvious disparity from what was said and what is documented. We can speculate that there may be news August 7th that may make this expenditure understandable nonetheless, a statement was made and the opposite was done. This kind of thing needs to stop. Period. What space was MNKD leasing from the Mann Foundation? The corporation owned their old HQ, didn't they? Rose said: "Many of you noticed and I heard it, reported at few places on message boards that our -- the lease on our corporate headquarters here in California expired in April."
The 10-Q said: "In May 2015, the Company entered into a sublease agreement with the Alfred Mann Foundation for Scientific Research (the “Mann Foundation”), a California not-for-profit corporation. The lease is for approximately 12,500 square feet of office space in Valencia, California which expired in April 2017 and was renewed on a month-to-month basis at a rate of $21,000 per month."
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Post by dreamboatcruise on Aug 1, 2017 10:55:52 GMT -5
What space was MNKD leasing from the Mann Foundation? The corporation owned their old HQ, didn't they? Rose said: "Many of you noticed and I heard it, reported at few places on message boards that our -- the lease on our corporate headquarters here in California expired in April."
The 10-Q said: "In May 2015, the Company entered into a sublease agreement with the Alfred Mann Foundation for Scientific Research (the “Mann Foundation”), a California not-for-profit corporation. The lease is for approximately 12,500 square feet of office space in Valencia, California which expired in April 2017 and was renewed on a month-to-month basis at a rate of $21,000 per month."
Thanks... I guess I've never known exactly what and where they were using office space.
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Post by madog365 on Aug 1, 2017 11:20:12 GMT -5
One question I have regards the new lease. The lease they had with the Mann Foundation was $21,000 a month. During the previous conference call, Rose said something to the effect they had been looking for some less expensive office space and then reported that they had leased a new office. But then the 10-Q says: "Office Lease — On May 5, 2017, the Company executed an office lease with Russell Ranch Road II LLC to lease office space for the Company’s corporate headquarters in Valencia, California. The office lease commences on the earlier of (i) the date the Company commences business from the leased space or (ii) the later of the date of substantial completion of the build out by the landlord or August 1, 2017. The lease requires monthly payments of $40,951, increased by 3% annually, plus the estimated cost of maintaining the property by the landlord. The lease expires sixty-five months from the commencement date and contains a five year renewal option." Twice as expensive not counting annual increases and property maitenance doesn't quite register as "less expensive" to me. Very interesting. It's actions like these that signal either extreme confidence in the financial health of the company OR sheer ineptitude demonstrated by Mannkind management. Combined with all of the hiring that's taken place over the past few months, i'm hopeful for the former. My only desire for this conference call is that Mike finally brings the investors in on this closed circle of information and let's us share in on some of his confidence. We have been outside the circle for far too long.
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Tinkerbell
Researcher
Watcher of the Skies
Posts: 143
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Post by Tinkerbell on Aug 1, 2017 11:23:29 GMT -5
Excellent observation and I couldn't agree more. It requires a response given the obvious disparity from what was said and what is documented. We can speculate that there may be news August 7th that may make this expenditure understandable nonetheless, a statement was made and the opposite was done. This kind of thing needs to stop. Period. What space was MNKD leasing from the Mann Foundation? The corporation owned their old HQ, didn't they? Good question. Honestly, I don't know though why would Rose have mentioned the $21,000 lease? Maybe when you compare what they were getting for that amount of money to what the true rental market is like, they were getting a huge break?
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Post by saxcmann on Aug 1, 2017 11:27:15 GMT -5
1) How long do you project it will take for Afrezza sales to get the company to a break even/positive cash flow? 2) What is the plan to raise the money to get the company to that point? Down and dirty extrapolations. 12 - 24 months $50 - 100 million Would be nice to get their estimate, but I doubt they will be as bold as me... of course I have no legal issues with presenting sloppy projections that need to be taken with a box of salt. ...if MC can give us a plan without dilution to extend runway 18-24 months the stock price should double, at minimum.
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Post by op2778 on Aug 1, 2017 11:39:14 GMT -5
I have a lot of questions, but i'll like to know about this issue:
Is Mannkind going to take advantage of this? MannKind : Foreign-Trade Zone (FTZ) 76--Danbury, Connecticut; Authorization of Production Activity; MannKind Corporation (Fumaryl Diketopiperazone (FDKP)..
The production activity described in the notification was authorized, subject to the FTZ Act and the FTZ Board's regulations, including Section 400.14.
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Post by dreamboatcruise on Aug 1, 2017 11:41:45 GMT -5
Down and dirty extrapolations. 12 - 24 months $50 - 100 million Would be nice to get their estimate, but I doubt they will be as bold as me... of course I have no legal issues with presenting sloppy projections that need to be taken with a box of salt. ...if MC can give us a plan without dilution to extend runway 18-24 months the stock price should double, at minimum. I would say doubling would be easy if they can pull that off, but problem is there isn't anything that looks likely in that regard (at least nothing close to 18 months of cash). The one caveat I'd add is that if they raise cash by totally selling off TS (if they can find someone to bite), that wouldn't be dilution with regard to share count, but it would dilute the assets that MNKD shareholders would have. I still suspect that share price would rise, as in current state of not being able to really advance API pipeline, I don't think MNKD is being given much credit for TS prospects in market cap. I do wonder if they've done the analysis of what divesting TS would look like.
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Post by dreamboatcruise on Aug 1, 2017 11:48:01 GMT -5
I have a lot of questions, but i'll like to know about this issue: Is Mannkind going to take advantage of this? MannKind : Foreign-Trade Zone (FTZ) 76--Danbury, Connecticut; Authorization of Production Activity; MannKind Corporation (Fumaryl Diketopiperazone (FDKP).. The production activity described in the notification was authorized, subject to the FTZ Act and the FTZ Board's regulations, including Section 400.14. This designation may already be saving them money if it avoids some import taxes until such time that they ship product to distributors within the US. Perhaps someone can confirm whether this is how an FTZ designation would work. When they start exporting, then they are totally avoiding those taxes on imports that feed into those exports. We aren't yet approved for sale in any other country, so exports are still some time off in the future.
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Post by falconquest on Aug 1, 2017 11:48:11 GMT -5
Where's the cash coming from? Where's the Cash coming from? Where's the CASH coming from? This is it in a nutshell, end of discussion. They can have all sorts of plans and deals in play but if they don't bring in cash it won't matter. Nothing else matters at this point. My question... You've done a great job of getting the word out on Afrezza and it looks as though there are potential long term international opportunities so as an investor I am encouraged by that. The one area that is absolutely critical to the future of this company is cash. What are your specific plans to remain a going concern long enough into the future to reach break even and then move into profitability?
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Post by matt on Aug 1, 2017 12:10:56 GMT -5
What are your specific plans to remain a going concern long enough into the future to reach break even and then move into profitability? This ^^^. The more specific Mike is the better the reception by the market. A dose of dilution should not be unexpected, albeit unwelcome, but if that is what it takes to save the company then man up and say so. At least if unwelcome news is out there, the market will react within a day or two, and then it will be over. If the news does not come out the price will stagnate and the PPS will go nowhere due to the overhang of uncertainty. At this point almost anything is better than more uncertainty. Another "stay tuned" CC or not addressing the financial issue would be a disaster.
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