Delcath Systems Inc (DCTH)

[ash111]

An increased deficit is defiantly a red flag.
When a business has paid more dividends and generated more net losses than profits over the life of the business, it has negative retained earnings, which it reports as an accumulated deficit in the stockholders’ equity section of its balance sheet....
A company with an accumulated deficit has no profits reinvested in its business and relies on its cash or other financing to remain in business. Banks might not lend to a business with an accumulated deficit. If a company’s cash runs out and it fails to turn a profit, it might end up in bankruptcy...

http://smallbusiness.chron.com/accumulated-deficit-balance-sheet-43886.html

$20m or more looks reasonable. In this case shareholders will receive about $6m but company has resticted cash so might be valued above $6m.imo