"For the nine month period ended December 31, 2012, we incurred a net loss of $1,296,776. The previously disclosed trend of lower margins did not change for the fiscal quarter ended March 31, 2013. As a result, we expect to report a net loss for the year ended March 31, 2013 compared to a net loss of $2.1 million for the comparable period ended March 31, 2012. The final negotiated terms of any executed amendment to our credit facility will be incorporated into our Annual Report on Form 10-K, when filed.
Additionally, the Company recorded an increase to the valuation allowance for deferred income taxes in the amount of approximately $1.3 million as a result of the Company incurring cumulative losses as of March 31, 2013 and the associated uncertainty of realizing deferred tax assets in future periods."
"As of March 31, 2013, we were not in compliance with our debt covenants related to the ratio of earnings available to cover fixed charges and our interest coverage ratio. As a result, we are presently working with our bank to obtain a waiver for the period ended March 31, 2013 and to finalize the terms of an amendment to our credit facility, which is expected to amend our debt covenants for the period from March 31, 2013 through June 30, 2014 and to extend our revolving line of credit, due to expire on July 31, 2013. While there is no guarantee our negotiations will yield an amendment, any amendment executed will be described in a Current Report on Form 8-K to be filed with the Securities and Exchange Commission within the time frame allowed for such a report. The nature and terms of any amendment resulting from our current negotiations will directly affect the presentation of our financial statements and footnotes, our liquidity and capital resources, and the related disclosures to be included in our Annual Report on Form 10-K for the year ended March 31, 2013 (the “Annual Report”).
Without a definitive amendment to our credit facility, we are not able to complete an assessment of our liquidity or debt classification and how the status of these items impacts our evaluation of the going concern assumption. If we are not able to obtain a waiver for the period ended March 31, 2013, along with a favorable amendment to our credit facility and the debt covenants as described above, all of our indebtedness under the credit facility could become due. If the debt under the credit facility becomes accelerated and the lender demands repayment, we would be unable to pay the obligation because the Company does not have existing facilities nor sufficient cash on hand to satisfy these obligations. KPMG LLP, our independent registered public accounting firm, has informed us that if we are not able to obtain a waiver for the period ended March 31, 2013, along with an appropriate waiver of or sufficient modification to existing covenants applicable to future periods, its report on the Company’s consolidated financial statements for the fiscal year ended March 31, 2013 will contain an explanatory paragraph indicating there is substantial doubt about the Company’s ability to continue as a going concern. In light of the foregoing, the process of completing the financial statements and the related information required to be included in the Annual Report could not be completed by the scheduled filing deadline for the Annual Report. We currently intend to file the Annual Report as soon as practicable following the execution of any amendment to our credit facility.
These guys gave all the Directors tens of thousands of options in early June, at $.67 strike price, with up to 1/3 of those exercisable immediately. They would have known these details at that time and still awarded the options, knowing the stock would likely sell off, but made the large grants anyway. Whatever else they know, it seems that shareholders interests are not primary to the Board. Mevion must be scrambling to find other companies capable of building their Proton units.