My reading of the report is that they really should have done a...

My reading of the report is that they really should have done a CR some time ago. According to the report, current liabilities were greater than current assets at the end of December. Since then, 2 months have passed and the cash situation will have only become worse. It is management's responsibility to ensure they have the funds available when they need them so for me it is a black mark against management. Further consequence of doing a CR now is that they desperately need the money and this could lead to a steep discount in the CR price. Other eventualities are also possible (e.g. being forced into a deal with a less than scrupulous partner) but these seem less likely. I guess the CR will be priced in the $2 - $2.20 range.