Finjan Holdings Inc (FNJN)

[Det_Robert_Thorne]

Another dismal Q1, another out-of-cash deadline

The 10-Q was released yesterday, and as usual, they lost over $1M, and there's another deadline for when they claim they will run out of cash. This time, it's May 15:

As reflected in the interim consolidated financial statements, the Company incurred a net loss of approximately $1.2 million for the three months ended March 31, 2013 and had an accumulated deficit of approximately $117.0 million and a working capital deficiency of approximately $3.0 million.

Presently, the Company’s liquidity is limited to its cash on hand at March 31, 2013 of approximately $58,000. As of March 31, 2013 the Company’s warrant issuances are in the money, however, its stock price has been less than $.01 per share and, therefore, the Company does not expect to raise any significant funds due to the exercise of warrants.

During April and May 2013 the Company sold an additional $97,700 of convertible notes, the proceeds of which will be used to complete its public company filings and operate until May 15, 2013, while the Company continues to seek a merger partner. There is no guarantee that the Company will complete such a merger by that date.

If the Company does not receive additional funds in excess of the amount of cash on hand, whether as a result of the exercise of the warrants issued or the issuance of further convertible notes, or otherwise, the Company will not be able to continue its operations once the cash on hand is utilized, which the Company estimates to be May 15, 2013.

http://www.sec.gov/Archives/edgar/data/1366340/000138713113001658/coin-10q_033113.htm

Gildea was able to obtain a couple of small loans via convertible notes at the beginning of April and May in order to keep the lights on, but he didn't bother to issue filings announcing these in real-time, which I thought was required and what they've done in the past for the other convertibles.

On April 1, 2013, The Company entered into a letter agreement with two institutional investors, which amended the Company’s existing Securities Purchase Agreement, dated as of January 3, 2012, by and between the Company and one of the institutional investors to provide for an additional closing pursuant to which the investors agreed to purchase an aggregate original principal amount of $14,300 of additional senior secured convertible notes and additional warrants to purchase an aggregate of 2,383,334 shares of the Company’s common stock. These Warrants expire on April 4, 2018 and have an initial exercise price of $.003.

On May 1, 2013, The Company entered into a letter agreement with two institutional investors, which amended the Company’s existing Securities Purchase Agreement, dated as of January 3, 2012, by and between the Company and one of the institutional investors to provide for an additional closing pursuant to which the investors agreed to purchase an aggregate original principal amount of $83,400 of additional senior secured convertible notes and additional warrants to purchase an aggregate of 23,166,666 shares of the Company’s common stock. These Warrants expire on May 1, 2018 and have an initial exercise price of $.0018.

They also seem to have found someone outside the U.S. who is interested in buying a license to use the HTLC process, and they have received $70K as part of the memorandum of understanding. There is no mention as to how much they will receive if the deal goes through.

Still, they say they will run out of cash on May 15.