The milestones would probably only be factored in

The milestones would probably only be factored in as a potential or secondary source of repayment, not as an asset to secure the loan. I think it would be too speculative to call conditional milestone payments receivables, because the partner would only be contractually obligated to pay based on performance that isn't solely in the control of the company - in other words, the FDA could likely muck up the works, and the bank wouldn't take that risk. At least if it was coming from anything approaching a traditional banking organization. The basic economics of making a loan to this company at this point have always led me to believe that it's somewhat unlikely. If you think that CYDY is going to be able to pay you back, then you think that they're going to succeed. In that case, you'll almost certainly make a better return through investing in the equity. That's why no PE/VC or anyone has come through with money on better terms than we've seen in our raises, and I don't think that management has ever fully understood that concept.

The only chance for any sort of a traditional loan that I could imagine would be a money center bank that had a life sciences arm and wanted to create a relationship to gain the ongoing corporate accounts business from something that they view as a burgeoning large corporation. Even so, I'm not sure that I really see that happening. All of those "banks" also have PE/VC/IB arms, and the traditional bank probably wouldn't get involved with a more traditional loan structure unless it was to fund the working capital/cost of goods post-approval. Anything more is likely too speculative, because there's no acceptable source of repayment. The IB arm could provide a bridge loan if there was M&A in the works, I suppose.