EFTA02514594

From: jeffrey E. <[email protected]> Sent: Sunday, December 14, 2014 10:50 PM To: Brad Wechsler Subject: Re: Phaidon I would like to see 14 cash as well write downs. liablitie=. ( returns " etc.) On Sun, Dec 14, 2014 at 5:06 PM, Brad Wechsler <B wrote: Jeffr=y-after our conversation today I took a look at Phaidon summary financials=(for the first time). Here's how I would re-state your observation(s):=br> 1. Do leon and the trustees know/understand that the $1.5mm net income proj=ction for 2015 disconnects from cash substantially, ie, 2. The cash projection from the operating business and modest cap-ex is neg=tive $4.4mm and 3. Maximum cash drawdown for 2015 looks like $6.25mm in january (mostly fro= changes in working capital). 4. Presentation seemed reasonably clear EXCEPT, in my package, you can'= really have insight into 2016/17 cash flows. Basic question for leon and Ee's is "familiarity" with $4.4mm=cash use. Are you and I in synch? This, of course, is based on "=2015" which looks like it ends in june of next year. Additional quest=on is for Phaidon to develop the future cash flows (which they may have al=eady done?) so they can go to trustees with a more developed cash flow protection and funding request. B www.imax.com <http://www.imax.com> IMAXa is a registered trademark of IMAX Corporation. IMPORTANT NOTICE Information contained in this e-mail correspondence and any attachments is =onfidential information intended only for the use of the individual or ent=ty named above. Any reader of this message who is not the intended recipient of this corres=ondence is hereby notified that any dissemination, distribution, copying or communication of the contents of this correspondence is strictly prohibi=ed. If this e-mail was not addressed to you , please immediately notify us=br> by phone in Canada at (905) 403-6500 <tel:%28905%29%20403-6500> (collect calls will be accepted) or by email at <= href="mailto:[email protected]">[email protected] and delete and =estroy this correspondence inadvertently sent to you. Thank you please note=br> The information contained in this communication is confidential= may be attorney-client privileged, may constitute inside information, =nd is intended only for the use of the addressee. It is the property of=br>JEE Unauthorized use, disclosure or copying of this communication=or any part thereof is strictly prohibited and may be unlawful. If you =ave received this communication in error, please notify us immediately =y return e-mail or by e-mail to [email protected] <mailto:[email protected]= targeta , and destroy this communic=tion and all copies thereof, including all attachments. copyright -all =ights reserved EFTA_R1_01648412 EFTA02514594 2 EFTA_R1_01648413 EFTA02514595