X-Message-Number: 22212 From: Subject: Clarifications to 22199 Date: Wed, 16 Jul 2003 09:29:28 -0700 This is a multi-part message in MIME format. ------=_NextPart_000_0032_01C34B7C.C11347C0 Content-Type: text/plain; charset="iso-8859-1" July 16, 2003 From Michael Riskin Chairman, Alcor Board of Directors. Following is additional or clarifying information related to Rick Potvin's report on the Alcor board meeting of July 13, 2003: * Mr. Potvin indicates that the reason Alcor recommends that terminal members relocate to the Phoenix area is to " reduce the load on the foundation". The primary reason for the recommendation is that the member will have the Alcor Arizona headquarters stabilization and surgical team immediately available, 24/7 upon need. Among other advantages of this proximity, the time from pronouncement to the operating room, can be shortened to minutes rather than the hours required from a more remote location. An additional advantage is that there is a cost reduction for both the member and for Alcor, due to such proximity. * Mr Potvin indicates that the Patient Care Trust ( PCT) has about $2,000,000 in both assets and liabilities. That is true. It is also important to understand what the liability represents. It is the amount put aside, from patient funding, conservatively recorded as a long term patient care reserve liability, to be used exclusively for patient expenses. It does not represent liabilities to outside vendors or creditors. The income generated from these assets is sufficient to cover all annual costs, leaving the principal intact. These funds are completely segregated (and administered by its' own board) from the general operating funds, not to be used for anything but long term patient storage and hopefully, reanimation expenses. * Mtr Potvin mentions the current negative cash flow that is unrelated to patient care. About 25% of the deficit is for one time facility expansion and technical upgrades. Alcor has sufficient operating cash reserves for about two years, conservatively assuming no other sources of revenue arise. (There is a major bequest currently being probated but Alcor does not count anything until it is received.) Further, non member care cost reductions that have been initiated in the past few months, have just started to kick in. Lastly, following its' conservative ( and correct, according to generally accepted accounting principles) policy, Alcor records all member prepaid funding as a debt rather than current income, since the member can always request a refund should (s)he change their mind. Another cryonics organization, by contrast, chooses to record such funding as current revenue, available for general operating and administrative expenses. ------=_NextPart_000_0032_01C34B7C.C11347C0 Content-Type: text/html; [ AUTOMATICALLY SKIPPING HTML ENCODING! ] Rate This Message: http://www.cryonet.org/cgi-bin/rate.cgi?msg=22212