This is from the 10Q just posted by the company:
The Company estimates that its cash and cash equivalents, along with its restricted cash, together with the additional proceeds from the First Amendment to the Credit Agreement and additional proceeds raised under the Sales Agreement, combined with anticipated cash to be generated from new and existing customer agreements are expected to provide the Company with sufficient liquidity through fiscal year 2015.
However, there can be no assurance that such cash from customer agreements will be available when needed. These factors continue to raise substantial doubt about the Company’s ability to continue as a going concern.
I hate to say this but this reinforces my desire to see a CFO who can and should be raising money. Given the incredible income potential a good CFO should be able to raise the necessary funding and permanently eliminate the need for such statements in the published financial reports. The above comment essentially says that the auditors may not give UNS a clean opinion. Hopefully the AGM and new deals will provide color to this comment but as an outsider looking in I think there is a serious need at the top for a finance guy who knows his stuff. We have VCs who fund far riskier ventures, so either the company has something up its sleeve and there is no issue or the company is ignoring a serious need by not hiring the right talent. How can UNS be a potential billion dollar company while ignoring a key position is beyond me.
Whereas based on AS's (Alan Shortall's) comments I shouldn't be concerned it still bothers me that their financial reports bears this warning. This is fodder for the shorts and AS should NEVER allow this. Hopefully a shareholder who is attending the AGM reads this and raises it at the AGM.
As usual just my 2 cents!
UNS Price at posting:
54.5¢ Sentiment: Buy Disclosure: Held
