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Message: RE: Business Update

RE: Business Update

posted on Apr 14, 2005 11:00AM
I agree with all the points Sinkman has made and might add that the 1000 units that Jetsgo has and apparently owes Wencor for, represents 2M or a portion of. (balance due)This amount tells us that Jetsgo paid $2000.00 / unit. My understanding is that Wencor pays us for the manufacturing and margin, or about $600.00/ unit. If thats the case the actual costs incurred by Wencor would be $600,000 not 2M. If I understand the article correctly Wencor is attempting to have the units returned in leu of payment. If so then the shells can be replaced and sold to other airlines. The impact of that would be to delay additional orders or reorders to EDIG. IMHO not a biggie as far as impacting our bottom line.

Larry

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