Some nice tidbits from the financial statements. New this year.
"The accompanying consolidated financial statements have been prepared assuming that the Company will continue as a going concern. As discussed in Note 2 to the financial statements, the Company has recurring losses from operations and negative cash flows from operating activities that raise substantial doubt about its ability to continue as a going concern. Management’s plans in regard to these matters are also described in Note 2. The consolidated financial statements do not include any adjustments that might result from the outcome of this uncertainty"
I was under the impression that they were diluting all of those shares to raise cash so they wouldn't get the going concern. But wait, they only need one year's cash to avoid this. Not true as I said.
I guess they raised all of that cash through dilution this past few months to build out that third Avid facility.
“Although we previously anticipated that the new manufacturing facility would be constructed and ready for manufacturing activities by mid-calendar year 2018, due to unanticipated changes in and/or timing of customer demand (as discussed above), we have decided to defer construction of this third facility until demand from existing or potential new customers is expected to exceed the current manufacturing capacity at our Franklin Facility and Myford Facility. Additionally, commencement of construction is also subject to our ability to raise sufficient additional capital to support this expansion effort. As a result, we presently do not expect to commence construction of this third facility prior to April 30, 2018.”
Ooops, maybe not.
Looks like they’re backing off their statement about being profitable by the quarter ending July 31, 2018.
“While we are pleased at the continued year over year revenue growth, we have also recently seen unanticipated decreases in manufacturing demand from our largest customer and a recent regulatory filing delay from our second largest customer which will have some impact on our ability to grow the revenues from our CDMO business in fiscal year 2018 and could impact our ability to achieve overall profitability by the quarter ending July 31, 2018.”
These guys are screwing up Avid. I knew that they would once they started to concentrate on it. Keeping any of these criminals on board would be unfathomable. Saying that a 9% shareholder is untrustworthy and looks to give away the ip makes zero sense.
