RE:$38,000 cash on handIf there was a deposit on the latest $27M contract, it would show up in the next financials, but it would effectively be used to finance that project, not the entire operations.
Liquidity is an issue for sure. About $40K cash at the end of the quarter compared to over $3M at the end of the previous quarter. They had about $3M cash burn after reduced costs and the booked revenue. They received over $1M through warrants after the end of the quarter. They got $10M in short term bills to pay. They need that big Radian A/R collection just to make it easier. Not to get them out of the woods but just to make it easier. 3P will have to work his magic to continue operating with such a liquidity problem.
As to the outlook, lots its cut-and-paste. Clients A, B and C appear in the outlook for 0 to 3 months, as they have been for many quarters now. Yet some of the write-ups suggest that nothing is going to happen in 0 to 3 months.
Pumpers look at the potential $ deal figures and see no issues with liquidity because that problem has existed for awhile. The question is who are the key people owed money in the accounts payable and accrued liabilities (forget about the other items) and how long will they wait for it. I doubt it is employees at this point, because I doubt those that can find jobs elsewhere would work for an employer without receiving a regular paycheck.
Hopefully some solid answers will be provided on liquidity on the conference call. Can't operate without paying.