I examined the filing closely and I don't see how they can pay. 2 things jump out at me. First, the company spends more on admin than RD. Admin chews up half of the revenue. Even at 200mm sales next year, it will still be over 20%. TOO HIGH. Also, interest expense at 20mm per year is another 20-odd percent of revenue. The spells only one thing - ANOTHER OFFERING. This is what is going to hold this stock down. My hunch is that with delinquent payments on their debt in the past, and 15% interest rate in the lowest interest rate environment in history, any stock/convertible offering will have to be at a discount. The last one they did was at 3.7bucks. The company has more potential now, but it is still only potential until product hits the market. Thus, maybe a 5/shr is not unlikely. Of course, they will probably wait until after submission before doing this, but it's coming for sure. The only upside is if the stock goes on a run before the end of the year in anticipation of JZP-6 submission. If this happens, then the offering could be higher.

Bottom line - no new positions either long or short and price may drift downward from here. The earnings report sounded great until you read the fine print, and this is the reason the stock failed to confirm yesterday's highs, and in fact gave back 75% of the gains.

That's it for now. I'm moving on.