Current portion of debt is $28.6M. Add the $4.7 M of A/P and the $7.4M of interest and other payables and we are now at over $40M that needs to be paid off this year (and that is without adding the new debt, interest and payables that will occur over the rest of the year).
So without even factoring the operating losses they incur, they somehow need over $40M in cash just to pay their current debt.
The fact is it isn't easy to just renegotiate debt, never mind at those levels. Revenues have peaked and have actually dropped. Yes they have made allot of improvements on the cost side and other things within the organization, but who in their right mind would loan them money under traditional terms right now? In order to renegotiate or obtain additional financing they are going to have to concede things that are not in current shareholders best interest. Plus, what collateral is left to obtain any new loan? $10M in current assets isn't going to get them anything when their current liabilities are 4 times that.
They gave millions of shares away to obtain a few million, what do you think they will give to get $40M?
I see a way for this company to have a future, but that means I would have lost everything....
