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They need/needed to strengthen their balance sheet as it stands the liabilities (including the marathon loan and its minimum liquidity covenant) is a "going concern".
In the letter by the CEO in the beginning of the year cost cutting was mentioned however they really didn't make any efforts as far as we know until now. The plan is reducing head counts of the R&D personal and less R&D activities, nothing was mentioned about how many will be effected or which activities!
One has to wonder why waiting so long as they surly realized maintaining a minimum liquidity is at risk if the revenues won't materialize and they surly know ON A WEEKLY BASIS at the bare minimum how the sale's trends are as any business should be able to track and monitor it if necessary make appropriate changes to mitigate any issues. I believe tracking/monitoring the demand, calls, convention rate etc is a must to do for any business. So the question is why despite lesser demand/revenues and pending minimum liquidity requirements the company didn't start the cost cutting process earlier as a result the lender will be able to take advantage of it?
The other question is why they didn't start with the populated board which in my opinion doesn't add much value? Also in times the responsible leaders should agree to wage reductions in order to deal with financial crisis. Point is yes do what you have to do including the above to increase the revenues but proactively monitor the financial situation and deal with liquidity issues in advance before any adverse impact to the business. The strict cost control/cuts should have started much earlier and it should be based on poor performing /less value adding personnel including the board followed by a temporary reduction of wages of the c suite/upper management and termination of personnel down the line which had not added much value to the business. At times one can do everything to increase the revenues yet it is still not enough for an acceptable financial stability the sooner counter measures are taken the better and those actions should not spare anyone in the company and should be based on the performance without any prejudices.