Question-and-Answer Session
Operator
(Operator Instructions) Your first question comes from Ren Benjamin - Rodman.
Ren Benjamin – Rodman
A couple of questions; unfortunately I can make it one question, but it will be broken up into multiple parts, so however they want to take it. What are the additional conditions that are required to trigger the second trench of this loan?
Steven King
What we will be doing Ren is, we’re filing an 8-K to add a lot of details, but what I can say is they are clinical based milestones that we need to achieve and they are also financial based milestones that we need to achieve and what the main concerns of our lenders are and our programs continue to move forward which is key and is part of the collateral, and also we have the financial stability to continue to move those programs forward.
I think that’s all we can say at the present moment. We have been into the wording of the agreement and we have built the wording around goals that we can and believe we can achieve to drawdown that second $5 million trench.
Ren Benjamin – Rodman
And based on the guidance that you’ve given for the third quarter ?09 revenue numbers am I being off base or does that seem like it will likely be a profitable quarter for you guys?
Steven King
In the third quarter, it will definitely be a profitable quarter for Avid bio services on a stand alone basis. On a consolidated basis, it’s going to be close, we haven’t put any overall projection out there for the third quarter, but we’re excited about the business; we’re excited about the pent up revenues that we’re going to see here in the third quarter and really the overall revenues for the entire year I think are looking very promising.
Ren Benjamin – Rodman
Okay and then one final question on the financials; how long will this cash last? I’m trying to take into account your cash on hand, the liquid cash if you will for the working capital of about 10.8, as well as let’s just say the first trench which is guaranteed right now of $5 million. So you’re talking about $15 million or so; how long does that take you out to?
Steven King
I think that that’s somewhat of a tricky question to answer depending on how we do the analysis. If you look back over the past six months, I believe the change in our liquid assets was probably around $5 million for that entire six month period. So if we project that going forward and again we do believe as we grow the revenues at Avid, that we have the potential to again continue to execute on the clinical side and maintain that sort of burn rate, then of course that money is going to go a fair distance.
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