Don, more importantly, RMTR has about two quarters of cash at their current burn rate, if they do no raise some cash fast, they may indeed be "dead meat". What is funny is the statement in their last release of earnings:
"The company's balance sheet is expected to improve during the September quarter due to anticipated increases in FRAM product sales and in development fees.", so let say they get to their stated $7.5 MM in revenues, their expenses are growing as well to $12 MM, which in my book is a loss of $5 MM, that is not an improvement in their balance sheet, at least not as I see it. That statement alone might be ground for "ambulance chasers" to go after them (if the pockets were deep enough (g)). They have only some $2.5 MM in cash, so just to survive the current quarter they'll have to sell $5 MM of their IFX shares (these were worth some $10 MM at the end of the last quarter, I have no idea what it is worth now, but IFX stock is not doing too well). Raising a year of burn rate will probably dilute the shares to between 30 MM to 40 MM depending how generous the market is going to be, if they can raise any (short of a floorless issue). Sure looks like a "death spiral" to me.
Zeev
Zeev |
