Not that we make a habit of ploughing through SEC filings (okay, sometimes we do), here’s a seriously interesting filing from Broadcast International (click here) which tells us that they have a loan due, in less than two weeks (on 28th February) for USD 1.3 million.
The Note is due on February 28, 2012.
(ii) The Note bears 18% annual interest, payable monthly in arrears beginning January 28, 2012. The interest is payable in cash.
(iii) As collateral for the repayment of the Note, we granted to the Purchasers a security interest in all of our accounts receivable.
(iv) The Note contains a prepayment provision pursuant to which if the Note is paid off before its maturity date, we would owe a penalty equal to the difference between the interest actually paid under the Note and 3% of the original balance of the Note.
In summary it looks like they burned through USD 5.5 million in a little over nine months (we see USD 6 Million in cash down to 414K)
The filing also contains the quote “For the nine months ended September 30, 2011 and 2010, we had one customer that individually constituted 91% and 87%, respectively of our total revenues” – ouch, how bad is that?
With losses like these they can only be living hand to mouth and oh! by the way that single customer is undoubtedly Bank of America