Ann: Results of 2018 Annual Meeting of Stockholders, page-83

I hope there is a big pick up in sales growth, and soon because they are in desperate need of it. At the end of last quarter they had around only around $13.5m in cash and treasury securities.

Forecast expenditure for this quarter was almost $8m (wow). Revenue from last quarter was flat at only $1.9 mill. Assuming growth is relatively flat again at $2m they will end the FY with only $7.5m in cash/treasury securities. Note that there is still the $15million in debt hanging over them (this debt was such a cavalier move).

I cannot see them cost cutting and growing enough at the same time to get out of a cap raising. The $15million debt is going to make it difficult to get a good price on the cap raise too.

None of this is new and is reflected in the company's statement in its Form 10-Q for the end of the March quarter:

"Management expects operating losses and cash flow deficits to continue for the foreseeable future. The Company’s ability to achieve profitability is dependent primarily on its ability to gain market share in the U.S, build and maintain manufacturing capacity to support commercial launch in the U.S. and obtain a more profitable per unit manufacturing cost for its products. These conditions raise substantial doubt about the Company’s ability to continue as a going concern for at least a year after the issuance date of the accompanying condensed consolidated financial statements. The Company plans to address these conditions by raising capital through equity or debt financings, or a combination of both, from outside current and new investors and institutions. There is no assurance, however, that the Company will be successful in raising the needed capital and, if funding is available, that it will be available on terms acceptable to the Company. The accompanying condensed consolidated financial statements do not include any adjustments that may be needed if the Company were unable to continue as a going concern."

What do they mean "from outside current"? - They are not considering current investors to raise capital from? Only new investors and institutions? Maybe they think everyone is already tapped out. The fear of massive dilution could explain why the share price is in the doldrums.