re. BFLY, only 2.7 M shares out, market cap of about $30 M, this is a littly bitty thing.
liquidity is scary: they burned about $2.2 M in last 9 mos., only about $1.7 M on hand now.
I don't see how they can spend the money on advertising that they need to spend in order to get customers to their site.
Here's what their 10Q said:
The Company anticipates, based on current plans and assumptions relating to its
operations, that the proceeds of the IPO, together with existing resources and
cash generated from operations, should be sufficient to satisfy the Company's
contemplated cash requirements for only approximately seven months after the
date of this filing. Moreover, there can be no assurance that the Company will
not require additional financing during such 7-month period. The Company's
current borrowing arrangements substantially limit the Company's flexibility in
obtaining additional financing. Proceeds from the exercise of the Company's
outstanding warrants and the purchase option held by the underwriter of the IPO
could be a source of capital, although, there can be no assurance of any such
exercise.
The Company intends to seek additional debt and/or equity financing through a
public offering, private placement or otherwise. There can be no assurance that
any additional financing or other sources of capital will be available to the
Company upon acceptable terms, if at all. The inability to obtain additional
financing, when needed, would have a material adverse effect on the Company's
business, financial condition and operating results and raise substantial doubt
about the Company's ability to continue as a going concern.
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looks like the 1.7 M warrants have a $5 strike price, so if they can price, maybe they can get a few bucks that way. |
