Yes it is negative. Remember this became a public company not too long ago and has little cash to its name. To date its cash has been used to pay down debt. The Company finished paying the note in Q2, so that debt is now gone. Their only other "debt" is the earnout, which flipped up to a current liability last quarter because it has to be paid in Q1 2012, so that is hurting the current ratio. Once that is paid-off the company will be truly debt free and can build up that cash...they have very few needs for the cash. I expect that once cash gets to a comfortable level for them (I don't know what that is, $5M maybe?) they will return the excess cash in the form of buybacks. The CR will improve over time assuming the business continues to perform well. I hope that helps. CR is but one metric for evaluating a stock. WHLM needs some time to build up the cash balance. The receivables/payables don't look out of order.