RE:RE:Document arrived just now I think they are referring to Accounts Payables, so any short term operating expenses with payment terms of T+[X number of days] that THNK owes. Sounds like they made a choice to delay paying those obligations in order to preserve cash in order to remain current on their covenants.
I've mentioned poor balance sheet management before on top of poor business strategy. The biopharma and clinic360 acquisitions should have never been done (what a disaster they've turned out to be!) but what's really compounded the problem is that instead of issuing equity to finance these acquisitions they issued debt plus they agreed to future earn outs to be paid at the prevailing share price in the future.
At the time of these acquisitions, investors assumed that the decision to use debt financing was being done because management had really clear visibility into future cash flows related to business wins/pipeline etc. After all management couldn't possibly be so stupid as to mortgage the future of the company on wishful thinking right? Well turns out investors were wrong, and indeed management made a series of incompetent decisions that began to compound on themselves as they continued to draw on the Beedie line despite not having visibility on the company's ability to service the debt rather than issuing equity. I simply cannot emphasize enough how poorly this management team has performed by making pure asinine decision and unforced errors. All this despite having an excellent SaaS product suite and business. Management’s arrogance, incompetence, complacency, and lack of accountability are exactly why THNK is being acquired for $0.32 (possibly up to double that amount if another bidder steps up) rather than $3.20 or higher. It has turned out to be an incredible lesson learned for investors, myself included, that no matter how great a product is a company will not survive with very poor management and leadership. Interestingly, Glassdoor reviews of THNK were spot on in terms of identifying that management was an issue. Going forward I’ll be conducting much more extensive checks on the management teams of any potential investment.