The only thing that conderns me at the moment is that they are...

The only thing that conderns me at the moment is that they are cash flow negative by the tune of -$1,000,000+, and have to cover by going into debt, sounds like a 'debtor days' problem that, if not over come in this quarter, will drive them to the wall, no matter how good the company is, this must be over come this quarter, they must be cash flow positive by the end of march.

And yes, you can still make a profit but still go broke by having a very poor cashflow.