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Re: md1225 post# 129010

Friday, 10/21/2011 7:22:28 PM

Friday, October 21, 2011 7:22:28 PM

Post# of 257684

They have no debt and only burn 4 million/year.

And they have publicly disclosed that their existing cash will only get them to January 2012. I think it's fair for posters to be wary of the short runway. Sure, maybe they get some non-dilutive capital to come in via contracts, partnerships, or whatever. But, if not, there stands to be the potential for major dilution to keep them afloat. I no longer seriously consider companies that are so close to running out of cash, regardless of how promising their technology may seem, just because that generally means they have very little leverage in negotiating with prospective partners. And it often means they end up going the way of serious dilution. All this said, I wish you the best of luck in your investment. And perhaps I'll take a look once they get their finances more in order.

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