NeoMedia Technologies, Inc (NEOM)

[jonesieatl]

Burn Rate

Doesn't it look like NEOM's actual cash burn rate was at least $3,000,000 in the 2Q?

I wonder how less than $8MM ($8.6MM financing less all the fees) is supposed to last them a year , much less to the end of 2009 , when NEOM was basically out of cash when they got this financing?

"On July 29, 2008, we entered into a Securities Purchase Agreement (“SPA”) in the amount of $8,650,000 with YA Global Investments, LP (“YA Global”), an accredited investor . Under the SPA, YA Global will buy three secured convertible debentures, subject to our meeting certain milestones, which are designed to fund the Company’s business plan to bring our products to market over approximately the next one and one half years. The first debenture under the SPA was issued on July 29, 2008, in the amount of $2.325 million."