The latest quarterly financials are out for Creative Realities, Inc., and the latest iteration of the company has lost yet more money.
“We do not currently generate positive cash flow,” the company has reported in its 10-Q SEC filing. “Our operational costs have been greater than sales generated to date. As of September 30, 2016, we had an accumulated deficit of $(18,497). The cash flow used in operating activities was $(3,738) and (1,953) for the nine months ended September 30, 2016 and 2015, respectively.”
“The majority of the cash consumed by operations for both periods was attributed to our net losses of $(3,883) and $(5,915) for the nine months ended September 30, 2016 and 2015, respectively. Included in our net losses were non-cash charges totaling $1,884 and $1,415 for the nine months ended September 30, 2016 and 2015, respectively.”
The filing also says:
As of September 30, 2016, we had cash and cash equivalents of $976 and a working capital deficit of $(8,420). 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 consolidated Company resulting from the acquisition of ConeXus World Global, LLC and our restructuring actions will improve our sales, profit margin, scale and operating efficiencies.
I think the going concern thing is something that comes up with every filing if it is the red. Looks familiar. The working capital deficit is not good, though, stating the blindingly obvious.
The accounting may not be this simple, but between Wireless Ronin, which through various twists, turns and mergers morphed into CRI, and this new entity, I think the accumulated deficit is in the area of $120 million now.
Dave Haynes is the founder and editor of Sixteen:Nine, an online publication that has followed the digital signage industry for some 14 years. Dave does strategic advisory consulting work for many end-users and vendors, and also writes for many of them. He’s based near Halifax, Nova Scotia, on Canada’s east coast.