May. 7 at 7:29 PM
$BIOCQ In Short SAD Part #2
These expenses, coupled with administrative costs, put pressure on the company’s financial health.
Cash Flow Constraints: Biocept faced cash flow constraints due to its limited revenue streams. The company’s financial statements indicated that it had only
$6.6 million in cash at the end of the last quarter. Insufficient cash reserves made it difficult to sustain operations and meet financial obligations.
Strategic Alternatives: In an attempt to address its financial challenges, Biocept explored strategic alternatives. This included seeking potential partnerships, collaborations, or acquisition opportunities. Unfortunately, these efforts did not yield the desired results, leading to the eventual bankruptcy filing.
Dilution of Shareholder Equity: To raise capital, Biocept conducted a highly dilutive equity offering. While this provided short-term funds, it significantly diluted existing shareholders’ equity.
