They only admitted to it...
... because the auditors made them do it, in my view. Read the auditors' statement, without the auditors including a paragraph questioning the company's ability to survive, I don't think Lynn would've admitted to it in the 10k. It's just not like him to admit something negative about the company. He only likes to *accentuate* the positive and ignore the negative.
I'm glad you saw the subsequent decline in cash and increase in payables. The company is not paying its creditors and that will hamper its ability to operate, in my view. They do have about $4mm in receivables from JV partners, but I don't think that's enough to last them more than a quarter or two. I bet they don't go under just yet, but be prepared for some really ugly dilution. If in a month, perhaps three, this stock is above $0.50, I'd be surprised. Boy has Lynn really driven this company into the ground.
Asalways, just one man's opinion. Mine.
News 
Market Data 
Discover 
