Motricty today reported first quarter 2012 losses to the tune of $8.7 million.
One year ago, those losses were $6.1 million, a fact that underscores ongoing trouble for the mobile web services company.
“We believe that our future cash flow from operations and available cash and cash equivalents will be sufficient to meet our liquidity needs for the next 12 months,” Motricity states, adding that choppy waters are still ahead.
“However,” the company goes on to say, “this may not be the case, our longer-term liquidity and ability to execute on our longer term business plan is contingent on our ability to raise additional capital, including in the proposed rights offering and on our not experiencing any events that may accelerate the payment of amounts outstanding under our term loan and revolving credit facility… We may also need to raise additional capital to execute our longer term business plan.”
“If we are unable to raise sufficient funds, we may need to implement additional cost reduction measures and explore other sources to fund our longer term business needs and repay amounts outstanding under our term loan and revolving credit facility when due,” Motricity’s SEC filing reads. “Our failure to do so could result in, among other things, a default under our term loan and revolving credit facility, loss of our customers and a loss of our stockholders’ entire investment.”
To read the full earnings report, click here.