Overland Enables to File Form 10-K
In bad financial shape, the company needs desperately cash, at least $10 million.
This is a Press Release edited by StorageNewsletter.com on September 30, 2008 at 3:54 pmOn September 29, 2008, Kurt L. Kalbfleisch, Vice President of Finance and Chief Financial Officer of Overland Storage, wrote:
"We are unable to file our annual report on Form 10-K for our fiscal year ended June 29, 2008 within the prescribed time period because we need additional time to complete additional procedures to test for the recoverability of long-lived assets, including property and equipment, in accordance with SFAS No. 144, Accounting for the Impairment or Disposal of Long-Lived Assets. Please see our Form 10-K for our fiscal year ended July 1, 2007 filed with the SEC on August 23, 2007 for more information on our policies for evaluating the recoverability of long-lived assets. We expect to file our Form 10-K promptly after we have completed these procedures.
Comments
Overland is really in bad financial shape. Read these comments of the company for its fiscal year ending last June:
"These results of operation may change if our additional procedures to
test for the recoverability of long-lived assets indicate that any such
assets may not be recoverable. In such case, we would record a
non-cash impairment loss for the year ended June 30, 2008 for the
amount by which the carrying value of a long-lived asset or asset group
exceeded its fair value.
"We are currently exploring funding alternatives to enable us to
continue our operations and execute our strategy. Possible funding
alternatives we are exploring include bank or asset backed financing,
and equity or equity-based financing, including convertible debt. We
are in discussions with funding sources for both of these options, but
we currently have no funding commitments. Management projects that our
current cash and investments on hand will be sufficient to allow us to
continue our operations at current levels through November 2008. If we
are unable to obtain additional funding, we will be forced to liquidate
certain assets where possible, and/or to suspend or curtail certain of
our planned operations. Any of these actions could harm our business,
results of operations and future prospects. We anticipate we will need
to raise approximately $10.0 million of cash and cash equivalents to
fund our operations through fiscal 2009 at planned levels."
With the current international financial crisis, it's not the best time to find funding.
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