DayStar Needs More Cash; Threatens Bankruptcy

Solar products company DayStar Technologies (DSTI) late yesterday warned in an SEC filing that it is running out of cash and may have to seek bankruptcy protection. For Q1 , the development stage company had zero revenues, with a net loss of $7.7 million, or 23 cents a share. The company finished the March quarter with $6.5 million in cash, down from $17.1 million at the end of December. That’s the issue in a nutshell: the company burned more than $10 million in the latest quarter, and now has well under a quarter’s worth of cash remaining. In the 10-Q filed with the SEC yesterday, DayStar said that it expects to continue to lose money, and that there is “substantial doubt” about its ability to continue as a going concern. DayStar said that commercialization efforts will require “significant additional capital expenditure,” and that it has hired a financial advisor to seek investors or partners to continue operations. But it adds that it has not found ... (link)