Britania, they have about a million less in cash than I had estimated from their stated burn rate. Obviously, the burn rate the CEO gave in Vegas is not correct.
As for the default, it is totally caused by the inaccurate filings made with the SEC. The SEC is demanding they file accurate financial statements and that is the reason the S3 and the PRER 14A have not been approved. Without those filings approved, no shares can be registered for the lenders.
The lenders now have a huge hammer and can demand the loan conversion price changed along with the warrants. This is going to be MASSIVE dilution like none other you have seen yet. If the lenders demand cash, the company will be forced into bankruptcy and IMO, will not emerge. Current shareholders would get nothing.
The lenders best option is to take a huge number of cheap shares.
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