were prw technically insolvent?

Looking at the cash that PRW had in the bank in the last quarter of 2008 and first quarter of 2009 tells us:

In the Dec 08 Qtr PRW only had $401,000 in the bank. They then raised $350,000 in January.

In the end March 09 Qtr PRW only had $109,000 in the bank.

This means in the 3 month period from the Dec to March 09 quarters they had spent $642,000 ($401k + $350k - $109k).

With the spend rate being in excess of $200,000 per quarter meant that coming into late April or early May they would not have had a penny left in the bank. In late May they issued a prospectus for 32.2 million shares at 3 cents.

It is doubtful that they would have any money present. Looking at the spent rate you could assume that they didn't have any money, or were trading insolvent.

The savior was the release of claims suggesting that a significant discovery was about to happen.