Sphere 3D Corp. (ANY)

[Hugodrax]

The psychological damage of finally admitting one has been a mark is too much to bear for many.


Frankly all that matters immediately is how the company will meet payroll when it runs out of money - in a few weeks on my estimate. Middle of Sept took in $2.5M and I estimate they burn $5M or so every 12 weeks. So 6 weeks from mid Sept is like 10 business days from now. I'm giving them the benefit of the doubt that they can stretch things out a little so I'm thinking mid Nov they could be toast without another bailout.

This thing is nearly $50M in debt and 2/3 of the debt is very high cost. The interest payments are being made in stock at a penny stock price so the dilution kicking in is unbelievable.

IMHO Overland has negative value (check out iMation now where even the public markets value the company below net cash to account for this). V3 might be worth $5-10M on a good day. That would leave "Glassware" doing approximately zero in revenue from what I see to be worth $40 M just cover the remaining debt.

Sadly, IMHO, the equity is utterly worthless here and I think the cat has burned 8 lives already.

IMHO Opus is probably freaking out right now. If they sell any assets like RDX there's a good chance Opus demands the proceeds are used to pay down their line.

I also wonder if they may be in default as of Sept 30, or perhaps that Cyrus injection was enough to cure it for now. Who knows. The company redacted the covenants so baggies couldn't figure out his critical point.

IMHO....

Also IMHO they can't afford to fire EK - his cash severance could sink the company.

Ugh.


IMHO.....