I like the potential, long-term marketplace of physician office diagnostics that GenMark is aimed at, but at the rate they are losing money, it looks like they will run out of cash before the end of this year?!? Anyone see them progressing far enough with the product that the cash burn rate will drop enough to get their cash into next year without a highly dilutive round of equity?
The next financing round is going to be very very damaging to current shareholders. and i've seen this story before---it's pretty much a guaranteed lock that the upcoming financing round won't be the last. there's a death spiral coming.
I don't know it's going to take for this company to stop the bleeding and actually have some respectable sales. all their competitors are also aggressively moving into the doctor's office. and genmark has pretty much the same tests as everyone else.
it's neat technology and a respected management team, but i doubt that's enough.
I agree with you Jerry. I noticed that their cash would have dropped approximately another $5 million if they had not gotten a $2 million note, cashed ~$2 million of an "Other Current Asset," and stretched out "Accounts Payable by almost $1 million. When these items come due, the next quarter's cash could drop near $10 million. That means they could run out of cash before the end of this year...?!