Ronin Needs Cash To Live Past May
Adrian J Cotterill, Editor-in-Chief
Wireless Ronin Technologies, Inc. (RNIN) snuck their earnings out Tuesday evening (Q4 2012 Results Earnings Call February 26, 2013 4:30 PM ET).
Their CFO says they need cash to live past May. We note that they have hired an advisor and are, we quote “considering strategic alternatives”.
These folks are still burning cash at the rate of USD 100,000 per week.
March 4th, 2013 at 20:31 @897
We cannot assure you that such funds would be available or sufficient under our loan and security agreement with Silicon Valley Bank, and we may not be able to successfully obtain additional financing on favorable terms, or at all. Although we were not in compliance with the minimum tangible net worth requirement under the loan and security agreement as of December 31, 2012, we obtained a waiver from Silicon Valley Bank for the default. From time to time we have failed to satisfy such covenant, which must be satisfied in order for us to borrow under such agreement. Furthermore, as a result of the contractually-imposed limits on our borrowing base, the amount available to us under the agreement, based on calculations as of January 31, 2013, was approximately $193,000. The line of credit, which is secured by all of our assets, matures on March 13, 2013.