Another quarter, same story for the blended digital signage vendor entity that rolls up as Creative Realities.
The latest financial filings show the Wireless Ronin-Creative Realities-Broadcast International-Conexus World combination is still losing a pile of money, and issuing a lot of promissory notes.
From the filing:
Liquidity and Capital Resources
We incurred net losses and negative cash flows from operating activities for the three and six months ended June 30, 2016. At June 30, 2016, we had cash and cash equivalents of $373 and a working capital deficit of $(8,112). Cash used in operating activities for the six months ended June 30, 2016 was $(1,832).
These factors raise substantial doubt about our ability to continue as a going concern. Management believes that, despite our losses to date and while we can provide no assurance that our ongoing integration efforts will be successful, the operations of the combined Company resulting from the completed acquisitions and related restructuring actions will provide greater sales, margin, scale and operating efficiencies, all of which we believe will ultimately lead to operating profitability and positive cash flows from operations.
We do not currently generate positive cash flow. Our operational costs have been greater than sales generated to date. As of June 30, 2016, we had an accumulated deficit of $(15,851). The cash flow used in operating activities was $(1,832) and ($1,938) for the six months ended June 30, 2016 and 2015, respectively.
The majority of the cash consumed by operations for both periods was attributed to our net losses of $(1,237) and $(4,221) for the six months ended June 30, 2016 and 2015, respectively. Included in our net losses were non-cash charges totaling $193 and $379 for the six months ended June 30, 2016 and 2015, respectively.
Along with a series of promissory notes, the company also completed a $3 million loan last week with Slipstream Communications, LLC, which has been around CRI in some way or another for years, long before the Ronin and BI elements. Slipstream was, at one point, an investor in Coolsign.
CRI describes itself as a “Minnesota corporation that provides innovative shopper marketing and digital marketing technology and solutions to retail companies, individual retail brands, enterprises and organizations throughout the United States and in certain international markets. We have expertise in a broad range of existing and emerging shopper and digital marketing technologies, as well as the related media management and distribution software platforms and networks, device management, product management, customized software service layers, systems, experiences, workflows, and integrated solutions.”