only two choices imo, are going to want plant & equipment collateralized (shiny new roller machine anyone?), do the 15 year old patents hold any value? Relief-from-royalty certainly won't show much! Notes should buy them another year, but shareholder equity will be gone.
"it's complicated" but there is still a lot of shareholder equity left that could probably keep them afloat, it's hard to say. If they collateralize the assets to raise equity and they don't get orders or new investment capital it will be a big problem in another 6-12 months. A big order right now would be a big windfall. Chapter 7 right now would probably leave the investors with some money remaining maybe 5-15 cents a share (+whatever the intangible assets like the patents bring in), but if they use the remaining assets and still don't get orders, there won't be anything left when the absolute priority rule comes into effect at the bottom of the food chain (the owners aka shareholders). The real question is, can they get orders....soon. DIP financing is not out of the question according to the last 10K.
If I was an investor here I'd want to know exactly when and to whom the battery will be selling. If the railroads are "testing" it, I'd want to know when the tests will be complete and the results released. At least then I could calculate equities risk factor. Patents get less valuable with time, if the patents were only good for 20 years some of original PbC will become public domain in 7 or 8 years, "testing" can't continue for the entire life of a patent..