<table><tr><th>From:</th><th>jeffrey E. &lt;jeevacation@gmail.com&gt;</th></tr><tr><td>Sent:</td><td>Sunday, December 14, 2014 10:50 PM</td></tr><tr><td>To:</td><td>Brad Wechsler</td></tr><tr><td>Subject:</td><td>Re: Phaidon</td></tr></table>

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

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