We said back in September 2009 in our post ‘Bank Of America Deployments‘ “We are not sure of the exact logic of awarding a USD 10M contract to a company that has been ‘functionally’ bankrupt since September 2008 (liabilities exceeding assets)” and it looks like Broadcast International (who for some reason were awarded the BoA contract ahead of CoolSign) may be in even more trouble now.
In a recent US Securities and Exchange Commission (SEC) filing (form 10-Q Quarterly report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934) for the quarterly period ended March 31, 2010 we see that they have assets of USD 7.7 million versus liabilities of USD 22.9 million.
We wouldn’t expect readers to pore over the whole form 10-Q but ‘Note 3 – Going Concern‘ is well worth a read, we quote part of that section “We have incurred losses and have not demonstrated the ability to generate sufficient cash flows from operations to satisfy our liabilities and sustain operations. These factors raise substantial doubt about our ability to continue as a going concern”.
Bank of America awarding a digital signage contract to a relatively unknown in the sector was always a weird and a little suspect (just who are these consultants either in the company or outside who recommend vendors with (a) no real experience, (b) no real product and (c) not financially stable).
Being a bank and all you would have thought that (c) was actually one of the first things they would have checked and insisted upon.
Undoubtedly this will be more wasted Bank of America dollars as it won’t end well.