RE:RE:You Can't Pay Your Bills with Accounts Receivable You have to stop expressing the false view that signing of the contract means that PYR is in "good standing". For this kind of an assessment, everyone asks for your financial statements and may want to look at only the audited ones. There is no individual within Department of Defence that would present an opinion on these financial statements that they are in good standing. They are taking a certain amount of risk and accepting certain management representations and maybe forecasts. They will pay milestone payments as milestones are met. PYR falters, payments stop, they accept the risk of a loss.
As for going out of business by now, they could if the creditors pushed them into paying the amounts owed. But every creditor knows they have a better chance of recovering more by giving them a chance. Note that part of the accounts payable includes an amount owed to the CEO. He will not collect this payment because that money is needed to pay more pressing bills.
If everything was in good standing, they get a bank loan and pay their creditors that have been waiting for way beyond normal timelines. And then they can just make regular loan payments and life is good. Or do a $20 million placement, cover the working capital deficiency, have some cash until you can hopefully start generating positive cashflow.
You can't ignore what financial statements show. That is exactly the reason for their requirement and accounting standards dictating how transactions should be recorded, still with room for judgment and estimates.