Cesca Therapeutics Inc. (NASDAQ: KOOL) recently put to rest the matter over its financial flexibility. The company said it exited F3Q2016 ended March 31, 2016 with $7.2 million in cash and equivalents. According to management, the amount is adequate for the company to finance its activities without cash shortage problems for at least the next 12 months. Currently, representatives of Cesca are exhibiting a high-power industry gathering called 2016 International Society for Cellular Therapy (ISCT) in Singapore.
What about the liquidity issue?
After Cesca Therapeutics Inc. (NASDAQ: KOOL) posted a larger loss for F3Q2016, fear increased among investors that the company could be running short of cash. Cesca is at a critical stage of product development and commercialization that cash shortage can greatly paralyze its operations and delay the gains promised to investors.
What happened to Cesca Therapeutics Inc. (NASDAQ: KOOL) in F3Q2016?
Cesca generated revenue of $2.8 million, a pullback of $1.2 million from the corresponding quarter a year ago. According to the management, the disappointing topline results weren’t caused by any execution missteps during the quarter, but by a change in timing of a certain orders. Perhaps that should be interpreted to mean that orders that weren’t closed in F3Q2016 because of timing will be registered in F4Q2016. But that was not what the management said.
In other F3Q2016 details, Cesca Therapeutics Inc. (NASDAQ: KOOL) said it suffered a net loss from operation of $2.7 million, suggesting an improvement from $4.8 million in the like quarter a year ago. But the reported net loss widened to $10.9 million compared to $4.8 million in the year ago quarter. The management explained that the increase in reported net loss was occasioned by a one-time charge amounting to $7 million.
What was the source of the charge? Cesca said that the charge was caused by $5.5 million related to its 30-year debentures and other losses.
At the end of the day, Cesca posted adjusted EBITDA loss of $2.3 million, better than $4.1 million in the like quarter in 2015.
What about the ISCT exhibition?
Cesca Therapeutics Inc. (NASDAQ: KOOL) has its representatives in the Singaporean city of Suntec City to exhibit at the ISCT. While there, the company will show off some of its innovative products and hopefully end up with some orders and partnerships that can push it to the next level.