The latest REFR gambit being flogged on the boards stems from an article in the Billings (Mont.) Gazette regarding Volkswagen's research and development work on SPD shading in windows. The article references an experimental Touraeg... Torueag... Toerag... that new SUV model, with windows that can change from a clear state to a dark state yada yada yada we've heard all this before.
Oh, and someone found a video which mentions just about everything the VW research center is working on, including, if you sit through enough of it (I had to resist the urge to click the back button when the Segways showed up), the switchable windows.
Okay, first of all... Billings, Montana? As best as we can tell, this appears to be the only newspaper in the country to pick up this story. Can it be that the rest of the country has already been saturated with "first impressions" of SPD?
Secondly, this represents no advancement at all for SPD. The big Setra rollout that ultimately went nowhere for REFR and SPD Inc. is several steps down the road from where SPD is with Volkswagen. Even if this was destined to be SPD's long-awaited big breakthrough, it's several years and at least one significantly dilutive refinancing away from bearing fruit from REFR.
But none of this matters to the people that uncovered this little nugget. It's become clear that finding "something new" has become its own reward, and that actually evaluating the information is something best left to the pedants.
That is what passes for "due diligence" these days.
Thursday, August 11, 2005
Wednesday, August 10, 2005
The receivables conundrum
My general disinterest in REFR's most recent quarterly report notwithstanding, one item of interest has come to light, even if it more of a curiosity than anything else.
For the first half of 2005, REFR has recorded revenue of $78,242. Over the same six months, REFR's accounts ("royalty") receivable has increased by $110,750. Now, for those not familiar with accounting practices, receivables are money the company has earned but not yet been paid. They are recorded as revenue, but are carried as a non-cash asset on the balance sheet.
But if receivables have increased by over $110,750, how is it that there isn't at least that much in revenues? Did REFR somehow have negative payments from its customers?
The answer appears to be in the "deferred revenues" line of the balance sheet. In the past six months, deferred revenues have jumped from $10,000 to $90,000. Deferred revenues are, in a way, the opposite of receivables, in that they represent money paid to REFR but not yet earned by the company. So, reducing the increase in receivables by the increase in deferred revenues, the increase in receivables drops to $30,750, which is at least within the realm of mathematical possibility.
Mind you, it is widely considered a red flag by company watchers when receivables increase faster than revenues. Of course, in REFR's case, revenues aren't increasing anyway. Besides, what is one more red flag among in a company with so many you'd think it was the Chinese embassy?
For the first half of 2005, REFR has recorded revenue of $78,242. Over the same six months, REFR's accounts ("royalty") receivable has increased by $110,750. Now, for those not familiar with accounting practices, receivables are money the company has earned but not yet been paid. They are recorded as revenue, but are carried as a non-cash asset on the balance sheet.
But if receivables have increased by over $110,750, how is it that there isn't at least that much in revenues? Did REFR somehow have negative payments from its customers?
The answer appears to be in the "deferred revenues" line of the balance sheet. In the past six months, deferred revenues have jumped from $10,000 to $90,000. Deferred revenues are, in a way, the opposite of receivables, in that they represent money paid to REFR but not yet earned by the company. So, reducing the increase in receivables by the increase in deferred revenues, the increase in receivables drops to $30,750, which is at least within the realm of mathematical possibility.
Mind you, it is widely considered a red flag by company watchers when receivables increase faster than revenues. Of course, in REFR's case, revenues aren't increasing anyway. Besides, what is one more red flag among in a company with so many you'd think it was the Chinese embassy?
Monday, August 08, 2005
Giving shareholders no quarter
With the release of second quarter results (via 10-Q, as per usual), REFR has given shareholders a good idea of just what it intends to do with the $5 million dollars it raised last February.
That is to say, they intend to continue their policy of collecting paychecks, as SPD technology collects dust, while making a handful of purchases of stock just to give the marks a cue to follow.
Second quarter revenues of $36,992 are down from the same quarter last year, while the net loss is lower due to a cut in "research and development" expenditures. But who cares. Bottom line, another million in cash was burned, give or take a hundred thousand, leaving them with a bit over five quarters' cash left (as of June 30th). Meaning, the proxy to increase the share authorization by another couple million (because just one million shares at this price level will be a waste of time) should show up just about any time now.
Really, the biggest accomplishment for the quarter was a 30% decline in the share price, to multi-year lows. And even then, the legwork on that was accomplished the quarter before (in the form of the issuing of the shares for the aforementioned fundraising).
Move along, there's nothing to see here.
That is to say, they intend to continue their policy of collecting paychecks, as SPD technology collects dust, while making a handful of purchases of stock just to give the marks a cue to follow.
Second quarter revenues of $36,992 are down from the same quarter last year, while the net loss is lower due to a cut in "research and development" expenditures. But who cares. Bottom line, another million in cash was burned, give or take a hundred thousand, leaving them with a bit over five quarters' cash left (as of June 30th). Meaning, the proxy to increase the share authorization by another couple million (because just one million shares at this price level will be a waste of time) should show up just about any time now.
Really, the biggest accomplishment for the quarter was a 30% decline in the share price, to multi-year lows. And even then, the legwork on that was accomplished the quarter before (in the form of the issuing of the shares for the aforementioned fundraising).
Move along, there's nothing to see here.
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