Kirk, your 'cash is king' philosophy seems like a good idea as well. But if we only have $1.1M in debt, and with RP telling sunpoop only LG got a discount by settling early, perhaps we could pay off the entire $1.1M with the Casio settlement money and still have enough to be king. Hopefully we'll even get more settlements this month from either Nikon, Olympus, Sanyo, Samsung and/or Avid through the mediation with Judge Martin (ret).

Let's suppose we got twice the amount from Casio as we got from LG (conservative by sunpoop's estimate). That's $3.2M minus DM's 40% would leave us with $1.92M. Then subtract the $1.1M in debt and we'd have $820K in cash. With a burn rate of $250K/month, we'd still have enough money to be in the black for 3Q FY09...and this is not considering any new settlements.

Or perhaps they could pay down half the debt ($550K) and have enough money to get through 4Q FY09 (31 Mar 09). Always having money in the bank to fund the current quarter's operations would sure be a nice position to be in. I realize I have no corporate experience and am applying personal financial strategies to this equation. I hate debt and have taken steps in my life to keep it to an absolute minimum. Helps make everyday stress-free...well as stress-free as is possible with a 14-year old daughter.