PAM, distribution of stock

[Neil Frank <nfrank@mindspring.com>]

>From DG:
>I expect that the getting-started negative cash flow will continue for 6-8
>quarters.  So I will need to take stock (can't get my $20 per hour from
>cash on hand) for say 8 quarters.  If it takes me 75 hours to put together
>an issue, that is $1500x8=$12K for two years work.  If it takes $4K cash
to cover the negative, then that would give AGA the opportunity to buy me
out or save its cash until it saw which way the wind was blowing.
>

I don't understand the above numbers when compared to the projected 2year
distribution below. I must admit that I was also pleasantly surprised when
I saw a tangible benefit to my offer to help PAM. This was my first glimpse
of those numbers. It actually makes me feel a bit uncomfortable to
participate in a final vote it anyone thinks that my comments or
recommendations are tainted or in anyway biased. If so, I will gladly
"recuse" myself. On the other hand, it should not come as a big surprise
that I would submit an illustrated article or 2 <g>.

  Just for imagining's sake, what
>if two years in we had $16K in stock distributed as follows:
>
> $3K AGA startup purchase
> $3K AGA additional purchases over two years
> $6K Gomberg
> $1K Randall (for pics and articles)
> $2K Frank (for editing)
>
>

So if AGA as an organization decided it did not NEED control, is there any
expectation from PAM that AGA would need to continue pumping in money to
help cover expenses. 
Dave, can you please construct the worst financial scenario for AGA.

If the mag does well and a profit occurs, is it important for AGA to
benefit financially. As Lass has said, why is it important for a non-profit
organization to make money (or can we even invest). I suppose we could fund
other activities and still stay non-profit, but what are our activites that
need money that we can't already afford.

Just in case, it would be good if DAVE-G can paint the favorable financial
forcast. 

I assume that if PAM does well and if PAM's unit costs go down, then AGA
can pay less than $12 per copy? Would the same principle apply if AGA
membership increases and we are helping supply PAM with customers. (I know,
it could be symbiotic 'cause AGA could get more members because of PAM)
After how many copies sold is PAM expected to break even and from there
where is the profit. Dave, please present the numbers.