Guided Therapeutics Inc (OTCBB:GTHP) Crashes Horribly
Everything was going well with Guided Therapeutics Inc (OTCBB:GTHP), until the company published its disastrous announcement on Tuesday.
Needless to say that all GTHP enthusiasts were eagerly expecting the FDA’s approval of the company’s product. There was only one possible reaction from said investors when they were slapped with the announcement that said approval was not given.
In spite of GTHP‘s reassuring words that the FDA simply wants more data “before granting approval”, many investors abandoned ship – and who could really blame them?
Put simply – a lot depended on this approval. It was a crucial step on GTHP‘s road to profit, and now it has been delayed for who knows how long. Now, medical companies run into that sort of thing all the time, and to be honest, this turn of events would not be all that big of a deal, if the company’s latest financial report didn’t look like this:
- Cash and cash equivalents – $18 thousand
- Total current assets – $1.5 million
- Total current liabilities – $5.1 million
- Sales – $127 thousand
- Net loss – $1.2 million
With so little cash on hand, GTHP can ill afford to wait any amount of time at all. By all accounts, it looks like it may be forced to rely on selling more stock to fund its operations, so prudent investors should probably look out for more dilution.
The silver lining in this whole situation is that the other part of the report is actually not that disastrous – especially if you consider the fact that $714 thousand of the $1.2 million reported under “net loss” can be attributed to Change in fair value of warrants.
It’s up to investors to decide what to make of all these facts, but a word of warning is probably in order here. GTHP seems to be walking on thin ice, and with this latest delay, it now seems like said perilous walk just got extended – perhaps drastically.
