The clock advances

One more item from yesterday's 10-Q has come to light. The 10-K, published not quite two months earlier, contained this statement:

The Company would have to raise additional capital no later than the first quarter of 2010 if operations, including research and development and marketing, are to be maintained at current levels if its revenues do not increase before then.

Yesterday's filing, on the other hand, reads:

Based upon existing levels of cash expenditures, existing cash reserves and budgeted revenues, the Company believes that it would not require additional funding until the end of 2009.

This distinction is somewhat crucial, as it would mean that, if nothing else were to change, in 10 months REFR would have to include the dreaded "going concern" clause in their 10-K filing. That said, it may only require a trivial cut in expenses to push the zero-hour back beyond January 1st, 2010.

Still, one wonders what's changed to bring the threshold closer than previously expected. Did some anticipated source of revenue not come through for them? Was the $75,000 for SCSC not budgeted for? Are they anticipating new direct expenses from the Equity Incentive Plan? Did the rent on meeting room at the Fox Hollow Inn (site of the annual meeting) go up? About the only thing we can be sure of, REFR will not be forthcoming with an answer anytime soon.

Another 10-Q already?

Man, where does the time go. $170k in revenues this quarter, more than half of that coming from the Hitachi deal. That's got to make a company feel good, being the source of more than half another company's revenue, especially if you have yet to see any benefit for your money.

Apart from REFR making good on $75,000 worth of its promise to support SPD Control Systems, and managing to shave quarterly cash burn back to the low $900,000s, the only other standout item was a $3 million investment in US Treasuries.

Not to say that's irresponsible or anything, but... you really know you're dealing with a dynamic, cutting edge technology company when they can't think of anything more productive to do with half of their cash than throw it into T-Bills. Again, I'm sure this is exactly the kind of activity Hitachi had in mind for their yen.

Same time next quarter then?