Re: PAM, distribution of stock

[Dave Gomberg <gomberg@wcf.com>]

Responding to this will take time and I leave for the airport in 30
minutes.   Rather than rush it I will respond when I return.   See the word
"imagining" below.   It was intended to describe something NOT REAL.  I was
trying to discuss the issue of control being different from stock ownership
(look at the names involved).   

At 09:45 AM 9/25/1999 -0400, Neil Frank wrote:
>>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. 
>
>
--
Dave Gomberg, San Francisco            mailto:gomberg@wcf.com
For low cost CO2 systems that work:  http://www.wcf.com/co2iron 
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