Replies to post #68287 on Ayala Pharmaceuticals Inc (ADXS)

[Bourbon_on_my_cornflakes]

Wrong to say "They have no debt=No bankruptcy"

You gotta have cash to keep operating. This company is a blast furnace that uses Benjamins for fuel. burns $20 million a quarter, you dont have that you go out of business, debt or no debt.

What the hell do 100+ employees do here? You need a few scientists like Petit, a few financial types and that is about it. Shouldn't be more than 30 employees tops when you aren't making ANYTHING.


And the vastly overinflated titles. Noelle is Senior Director of PR. Not Director, not Manager. You should only have a Senior Director when there are 3 or more directors to manage, and a Director only when there are 3 or more Managers to manage. The Senior Director then gets a non-merit raise because she's a Senior Director, even though she is doing only a Manager's work. That is the cost problem that is killing ADXS.

It is all through the top mgt. Everyone is an Executive VP, not just a VP or better yet, a director. Take Petit. Worthy as he is (and he is one of the few), his experience warrant the title Director, not Executive Vice President. And the compensation should be reduced accordingly.

The whole company is too many chiefs and not enough indians, an army of all generals with no sergeants. And they are vastly overpaid when their titles are deflated and matched to their actual responsibilities.

Yes ADXS can go bankrupt, and will, when shareholders get tired of getting screwed.

[cab033]

I have read this many times here but never asked the question. If you spend $6.5M per month and you have current liabilities of $20M and another $15M in long term liabilities (not debt), how do you survive?

Easy answer is sell stock. But is that feasable to do at/under $1? How long until it is back on the OTC pink sheets and still blowing through tons of cash with no product or revenue. What is your plan on surviving and not filing bankruptcy at that time? Just currious if you thought this out or just think filling bankruptcy is impossible without having debt?


FYI a creditor from debt, AP, employee, of other, all have the right to file suit for their payment if not received timely, and with no cash in the bank, bankruptcy is a strategy to possibly save the company. So it is possible even with having "debt".