Hipcricket Inc.(fka HIPPQ)

[FORTY-8]

Something would see to be "amiss" here:

In its last 10Q, for the period ended August 31, 2014, Hipcricket reported total assets of $22.085 Million against total liabilities of just $18.423 Million. That would clearly mean that it was solvent ... as of that particular date.

See, at Page 1: http://ih.advfn.com/p.php?pid=nmona&article=64056149

Equally clear is the fact that "solvent" companies cannot seek the protections of the Bankruptcy Court.

So then ... one is left to wonder: what exactly has transpired between August 31, 2014 and now, such that the company can suddenly avail itself of bankruptcy protections?

And here are the answers:

"While revenue for Hipcricket, which says it has been involved in more than 400,000 marketing campaigns since 2004, has been growing, the company’s respective net losses from operations in fiscal 2014, 2013 and 2012 have been $22.3 million, $48.8 million and $22.6 million, respectively, according to a bankruptcy declaration from interim CEO Todd E. Wilson."

“The company is and has been subject to risks and challenges associated with companies at a similar stage of development,” Wilson said in the declaration. “The mobile marketing and mobile advertising sectors are both highly competitive and fragmented, and the company has faced intense competition for revenue and margin from larger, more established companies.”

"In its batch of first-day motions, Hipcricket unveiled plans to hold an auction for substantially all of its assets — including intellectual property, accounts receivable and the bankruptcy estate’s avoidance action claims — in roughly 40 days if it receives bids to best the stalking horse offer."text-here[/tag]

Sadly, this company would appear to be no more than a 'dead man walking'

See this article for source of the quotations shown above:

http://www.law360.com/articles/613491/mobile-ad-co-hipcricket-hits-ch-11-plans-4-5m-sale