You are correct Joe, nothing has changed, company still burning through cash, the last 3 million dollars won't last much longer, 2nd quarter ends june 30th so I'm sure they have less then 2 million by now. So they have three options in my opinion, go private, be bought out by bigger company, or to raise cash: increase the float by using shares as cash, authorizing secondary offering, then conduct a forward split so those shares become marketable at a reasonable price thereby raising cash, lastly find another wealthy investor willing to throw more cash their way. Either way shareholder value per share decreases. Why the decrease: 1) Go private, already discussed how that hurts the shareholder; 2) secondary offering - basic financial dilution,3) Buyout from another company? share price will be realistic as to current earnings/value, thus a lower pps 4) New investor - adds debt to books reducing share value, especially if return payment given in shares.
Just my opinion, but they have to get operating capital from somewhere, and as sales decrease they have to do something different. Shareholder meeting will be interesting if they release their future plans.
