Topwon,Look at an appendix 3B, one of the biggest challenges...

Topwon,

Look at an appendix 3B, one of the biggest challenges when investing in this sector is to making a qualified value judgment on how many shares will be on issue (the denominator) before (1) the company is cashflow positive or (2) it is taken out by (in this case most often by an o/seas player arbitraging the valuation gap between Australia and the ROW)...ie. Vision Systems

Next step is to come to a fair current value for the company (the numerator).

If you have no confidence in working out the denominator what hope do you have spending considerable time and effort to work out a mark to market value being the numerator.

Legend (for a per share value) = numerator divided by the denominator.

Capital or 'Cap' Structure refers to the share structure not the cash position.

cheers

PS...by the way the current cash position of KSX is IMO dubious