Cash almost gone -- looks like the end of the road
They had $3.5m of cash as of 6/30/09. They issued $5m of 10% secured notes in July, with est proceeds of $4.7m or so, gets them to $8.2m. However, the cash burn rate is about $1m per month, including a $1.1m coupon payment on the 8% secured notes paid on 8/1/09, so they are down to about $5m as of the end of Sept. Unfortunately, $17.25m of the 10% secured notes are due on 12/20/09. At this point, they can't raise any more money, I think. It may not be an immediate bankruptcy, but I don't see how they last past December.