At the beginning of the March Q, they had 5,713M in cash and subsequently added $11,394M.
sec.gov
Where did they get the 11.3M?
Their operating expenses in the March Q were US$5.4M. What is their current burn rate and where will they get funding when the $17M is gone.
This may be of interest to investors:
WE HAVE A HISTORY OF LOSSES, WE EXPECT FUTURE LOSSES AND OUR FUTURE PROFITABILITY IS UNCERTAIN.
We have incurred operating losses since our inception, and as of March 31, 2001, had an accumulated deficit of approximately CDN$267,826,000 (US$169,790,000). We
expect to spend substantial funds to continue research and product development, to establish sales, marketing and quality control departments and for other general corporate purposes. As a result, we expect to incur increasing losses
over the next several years.
WE HAVE A SIGNIFICANT NUMBER OF OUTSTANDING CONVERTIBLE NOTES, WARRANTS AND OPTIONS, THE EXERCISE OR CONVERSION OF WHICH COULD DECREASE THE PRICE OF OUR COMMON STOCK, WHICH WOULD LEAD TO ADDITIONAL SHARES OF OUR COMMON STOCK BECOMING
ISSUABLE UPON THE CONVERSION OF ANY REMAINING OUTSTANDING CONVERTIBLE NOTES.
To date, we have issued numerous warrants, options and notes, which are exercisable or convertible into shares of our common stock. No holder may convert any portion of the notes or exercise any portion of the warrants issued
in July 2000 if upon such conversion or exercise that holder or any of its affiliates would beneficially own more than 4.99% of our outstanding common stock. Therefore, a holder may have to sell shares of common stock in order to
be able to convert notes or exercise warrants. The notes are convertible into shares of common stock at a price equal to the average of the closing bid prices of our common stock for the five trading days ending immediately prior to conversion; however, the minimum conversion price is fixed at US$7.00 and the maximum conversion price is fixed at US$25.00. The conversion price may be adjusted to reflect the effect of any stock splits, stock dividends or other similar transactions. Moreover, in the event that we issue any securities which are convertible or exchangeable into common stock at a price lower than the minimum conversion price of US$7.00, the holders of the notes issued in July 2000 shall be entitled to convert the notes at the lower price. As a result, if any market activity occurs which results in the depression of the price of our
common stock, including the taking of a significant short position against our stock, the number of shares issuable upon the conversion of the notes could increase, which could result in substantial dilution to the holders of our
common stock. The following table sets forth the number of shares of common stock that would be issuable upon the conversion of US$12,250,000, the amount remaining outstanding under the notes as of March 31, 2001, at assumed
conversion prices and the exercise of the warrants issued in connection with the note financing, as well as the percentage of our outstanding share capital that those shares will represent.
. . .
The following may explain the $17M:
SEVERAL OF OUR AGREEMENTS WILL REDUCE THE AMOUNT OF REVENUES THAT WE WILL RECEIVE UPON THE SALE OF OUR PRODUCTS AND THIS MAY DECREASE OUR PROFITABILITY.
We did not have material revenues from product sales during the nine months ended March 31, 2001. Our agreement with Polyvalor and McGill University requires that we pay a royalty based upon our gross sales. Furthermore, our
agreement with Polaroid requires us to pay them a percentage of the net selling price of products incorporating their technology. In the event that we do
generate revenues, those agreements require us to allocate a percentage of our revenues to our strategic partners and may ultimately lower our gross profit margin.
WE MAY BE UNABLE TO OBTAIN FUNDING TO MEET OUR FUTURE CAPITAL NEEDS, WHICH COULD CAUSE US TO DELAY OR ABANDON SOME OR ALL OF OUR ANTICIPATED SPENDING, CUT BACK
OUR OPERATIONS, SELL ASSETS OR LICENSE OUR TECHNOLOGIES TO THIRD PARTIES.
We will require substantial additional funding over the next several years to develop our technology, to broaden and commercialize our products and to expand assembly capacity. Additional funding could be unavailable on favorable terms, or not be available at all. If we are unable to obtain sufficient additional funding, we may have to delay or abandon some or all of our anticipated
spending, cut back our operations significantly, sell some or all of our assets, or license potentially valuable technologies to third parties that we currently plan to commercialize ourselves.
To date, we have received approximately CDN$75,000,000 (US$47,450,000) from third parties through various debt and equity financings. If we borrow additional funds, we may become subject to restrictive financial covenants and our interest obligations will increase. In addition, we may need to raise additional capital by issuing additional securities, including additional floating-price convertible securities, which could result in additional dilution to our existing stockholders.
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