If you read the series of complaints in the court documents, and I have... you learn that previous to the issues with Grewal, PPJ was a growing business with a decent customer base.
Then, as a corporate officer and member of the board of directors for PPJ, Grewal stole large chunks of PPJ's revenue.
Grewal started a competing business, and used his inside knowledge of the company to steal PPJ's intellectual property (ie: software trade secrets, etc.).
Grewal stole some of PPJ's customers, and "poisoned the well" by contacting all of PPJ's customer base, and in his position as a PPJ corporate officer, lied to them by telling them that they were being cheated out of funds.
Grewal even hired away some of PPJ's staff (ie: software programmers).
He systematically used his inside position to destroy PPJ as a business, and he was pretty damn successful in that endeavor.
Basu has managed to keep PPJ just barely in existence all of these years as the court case dragged on... but it is just barely a viable business with its current financials. For this size of business, borrowing money to get it restarted is really the only viable solution.
However, because PPJ has a viable product with a proven business plan (ie: proven by the fact of the customer base that PPJ had before Grewal screwed everything up), funding this business is much lower risk than funding a typical startup. That is undoubtedly a large part of the reason that PPJ has been able to get such a great funding deal as described in the 2/24/2014 PR.
That PR should have driven the stock prices much higher because PPJ just won the angel investor lottery, but I guess because it will realistically take something measured in quarters before the financials reflect the results, people are going to be skeptical. People who bought into PPJE at these low prices, and held, are going to have the last laugh.
PPJ now has the funding required to update their software product (it is software... it always needs to be updated... that is the nature of the software business) and maintain a programming staff who knows their software code base (I cannot stress how terribly critical that is to be a successful software shop!) to allow for smooth enhancements. PPJ already had the business model that was successful. Now, it can execute, and start making money again.
Given the implications of Obamacare, PPJ is going to turn out to be in the perfect place in the medical billing software industry. They will never be another Microsoft, but they should have a really great future ahead of them.
AI
