Indeed its financial statements show no sign of a healthy company. Net income for the past 4 quarters have been a negative figure, with no significant improvement over this period.
Their cash flow has also been negative in the most recent quarter. However, total cash flows from operating activities has shown a consistent negative trend. This is a company that will definitely have trouble meeting many of its financial obligations. They were probably breathing a sigh of relief after receiving some much needed grants for its research objectives.
As mentioned, stock issues might be expected sometime in the near future by GenVec. Investor skepticism, given the company's financial health, may not necessarily provide an easy road for GenVec with regards to raising capital.