EFTA02516378

From: jeffrey E. <[email protected]> Sent: Sunday, December 14, 2014 9:28 PM To: Brad Wechsler Subject: Re: Phaidon Need to combine with bfp On Sunday, December 14, 2014, Brad Wechsler= > wrote= Jeffrey-after our conversation today I =ook a look at Phaidon summary financials (for the first time). Here's =ow I would re-state your observation(s): 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 pro=ection and funding request. B www.imax.com <http://www.imax.com> 'MAX. 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 (collect calls will be accepted) or by=email at [email protected] <javascript:;> and delete and destroy t=is correspondence inadvertently sent to you. Thank you =C2 please note The information contained in this communic=tion is confidential, may be attorney-client privileged, may constit=te inside information, and is intended only for the use of the addresse=. It is the property of JEE Unauthorized use, disclosure or copying =f this communication or any part thereof is strictly prohibited and =ay be unlawful. If you have received this communication in error, pleas= notify us immediately by return e-mail or by e-mail to EFTA_R1_01651337 EFTA02516378 [email protected], and<=r>destroy this communication and all copies thereof, including all atta=hments. copyright -all rights reserved 2 EFTA_R1_01651338 EFTA02516379