RE: burn rate and cash flow Their burn rate has come crashing down 75% and they built up a lot of inventory, over $3M, so their working capital is still good. Even though they have $3M, the additional $3M in inventory should push back any need for financing to at least 9 months from Q1 quarter end. That would be my guess.
Keep in mind they WILL neeed financing even upon the announcement of a contract. But the type of financing or terms of it will be much more favourable. My hope is they use a non-dilutive way, probably debt where the financier has a lien on the cash flows to the company due in the agreement until its paid off. For instance if the company signs a 100 unit order and manages to extract $10M worth of revenue for it (I know people say $100K per unit is not the price going forward but this is just an example), they borrow $8-9M, send say $6-7M to Sanmina for manufacturing, spend $1-$2M in G&A, fulfill the contract, get their $10M, pay off the loan plus a bit of interest, and pocket $1-$2M in profits.
Upon announcement of a contract they would have a chance to get capital under very favourable terms, say a share issuance for 50 cents or more, similar to EKG or INT over the past year.