"But if they did tap Lincoln, isn't that something material they'd have to report?
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I'd have to read the last 10-Q again, but I believe they essentially have an "open line" with Lincoln at this point? Meaning they can make "cash draws" periodically, within certain limitations as to amount per draw, percent of shares O/S, probably a bunch of parameters like that.
I don't think they need any "reporting" of it other than it will show up in each 10-Q filing and then the end of yr 10-K. We'll see any of those shares-for-cash draws in this next SEC filing, the end of yr 10-K due in about a month or so and also then see the most up to date cash balances, debt, sharholder equity, etc.
"IF" they place this secondary- I don't know if they'll issue a more current set of financials or not? They may have used that 9 month set, the "current as of Sept 30, 2014" perhaps because they may be audited (I'd have to check?). A lot of 10-Q filings have un-audited financials- meaning one is trusting the company's accounting dept and then Sr Mgt signing off that they are truthful and accurate.
On the end of yr filing, the 10-K, then the outside audit firm does a full audit of the entire year's "roll up" of all the 10-Q's and yr end "closing of the books" and then the audit firm puts their signature on it- being legally and fiduciary bound. Not that mistakes, screw ups, bad numbers don't happen, etc. Remember, OCAT has several yrs of "re-stated" stamped on the financials in that prospectus- part of cleaning up the Gary mess, but the BOD also oversaw those yrs too, they're all responsible. They had to go back and get a re-audit back several yrs when they got into SEC trouble, resulting in various "re-statements" to give the correct and accurate historical financials.
So, this next 10-K is going to be the most up to date snap shot of where they are at financially. It will be audited and good till Dec 31, 2014 and often even has a supplement to cover Jan/Feb most recent events, right before they release it.
This 10-K will tell a lot about where they are at now financially- unless of course the secondary places in the interim, then it's a whole new ballgame in terms of their cash balances, whether they choose to pay-off and eliminate some debts, etc.
We'll see. I just know that they'd have needed cash from someplace in these past 3 months or so- and not trivial amounts. They'd have needed a guesstimate as stated, of at least several $million, so they had to get it from someplace? They're still in biz and the lights are still on- so someone is still paying the bills and salaries and all.
AI
