Question-and-Answer Session
Operator
(Operator instructions) Our first question comes from Kevin Burdick [ph], a private investor.
Kevin Burdick
Yes, gentlemen can you hear me?
Steve King
Hey, good morning Kevin. How you doing?
Kevin Burdick
Hey, the market cap for the company is roughly $74 million, of which you can argue that Avid is worth roughly $45 million based on standard sales multiples, you got the $10 million in cash; so that means the remaining value of about $20 million for the entire pipeline. Tell me, is the market bright; or what is going on there and if it is wrong, then what are you guys doing to educate the market that our pipeline is worth much more than $20 million, strictly without the appetite for pipelines with big pharma and big biotech?
Paul Lytle
Yes, I mean I think we clearly feel that our market cap is not representative of the true value of the company, I think you did an excellent job of breaking it into the individual units and when you really break it down and just consider the value that’s currently being given to the technology, it seems extremely depressed currently. When you consider the facts that we are generating Phase II data, we have some very promising things happening on the preclinical side in addition to the $44.4 million potential from the contract with the U.S. government. Clearly, the overall market is down. We feel that particularly small biotech companies have been adversely affected by the overall market conditions maybe more than other sectors.
We are really – I think one of the keys is getting beyond the current delisting threat and you know, throw the associated activities with that. I think as we get through that, we will be able to really do a lot more outreach and we are obviously currently doing outreach, but really be able to step up those efforts with institutional investors. We know there is a lot of interest in the company from potential partners. Hopefully, we will be able to close some deals that will bring additional cash in and again provide further outside validation, which should come on several fronts against republications, hopefully some partnering deals as well as some – just generating some additional clinical data which I think is going to be very promising. I think it is perplexing the reason our stock price is depressed. We are certainly working on multiple avenues to get the word out there about the company, the promise of its technologies, and while we can’t control the stock price, there certainly are a lot of exciting things happening that we hope will drive that value in the future.
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