If you look at the latest 10K from 1/16/97,
click on:
sec.gov
one thing just jumps right out:
Oct 11,1996: Cash $2.8 mil , borrowings $750,000
Dec 31, 1996: Cash $1.1 mil, borrowings $210,000
Unfortunately, the writings on the wall that last Q did
not go well, and the main reason being lack of shelf space.
The cash burn(losses) has continued to mount at the rate
of $1 mil a quarter. The bank did not renew the credit line,
so basically there's only 1 quarter of money left to burn
without additional financing(i.e. stock dilution).
After a required financing/stock dilution and the accompanying
drop in stock price, it will require
at least a 10:1 reverse split to get back on NASDAQ like you
mentioned, which will depress the stock price even more.
But on the other hand, things might take a radical upward turn.
This was the 1st report by Charlotte Walker, CEO, which mentioned
a possible "merger" or "strategic alliance", hinting at a possible
buyout to cure the company's shelf space and cash flow problem, as well
as the stockholders problem! |
