"LDM thinks it bad news they want to delay but I don't see any advantage bad or good in a delay."
That's because you can't see that it could be so bad as to sink the share price into the single digits. That would probably eliminate any more conventional financing, and also make raising substantial capital via ATM less likely. And it is substantial capital that pays these crooks their salaries and bonuses. The company had forecast that the 2018 restatement would be: (8K) "While
the Company’s analysis is still underway, the Company currently
estimates the revenue impact for the full year 2018 to be a reduction of
approximately $9 million. For the first half of 2019, the Company
currently estimates the revenue impact to be a reduction of
approximately $24 million.".
Let's see: the restated 2018 financials: 1) Revenue was down $12M (50%) versus $9M projected.. 2) Gross Margin down 50%. 3) Loss from operations up 85%. 4) Net Loss up 50%.
There is absolutely no real reason to believe the errors won't be similar, or worse, in 2019. Since
the foretasted revenues for just the first half of 2019 to be down $24M , one
could expect the same percentage miss, or worse, and the real first half miss would come
in at $32M less (or worse), with net loss up additional 50%. Who can tell about
second half 2019 or any of 2020?
Then there's this: They
worked out at least a temporary truce with the note holder of their
$17M debt. They made the past due payment with a whole lotta shares because they don't have cash (revenues?). They have until Feb. 28 to restate or the note holder can
call the note, and convert to shares at 75% of the lowest share price of
the previous 30 days, and they removed the share price floor to boot.
Oh yeah, I almost forgot----the interest rate is now 18%..... That means the results of restating (expected by the Company) is a whole lot worse than that agreement.
If they weren't lying out their ass about future revenue one would expect all the future revenue would have come to fruition and they wouldn't need to borrow under such onerous terms---the old future is now.
To make a long story short: they appear to be dragging it out to keep their personal piggy bank operating, and are hoping for a miracle that even one of their bull-shit customers will live up to the hyped projections.