1. The $ 20 million is to pay off Oxford/Silicone Valley. The Oxford/Silicone Valley loan is cancerous. A major mistake of Saad.
2. Another $ 5 is for fill the cash deficit for the remaining 2015.
3. With 1 and 2 taking care of, the income and expense (including Lorem's new orders) should be even (as reflected by the cash depletion of just $ 1.5 million during the first Q).
4. Reverse split looks certain for 2 reasons: too many shares outstanding now, reducing the flexibility of using stock as cash in the future. With just 20 million shares outstanding, CYTX can raise more money beyond 2015. Money is needed for general r/d (including phase 3 trials in scleroderma) and beef up sales and marketing. R/s is good for the company, but bad for the longs.
5. Otherwise, the basic technologies and r/d developmental plan (niche indications) sound OK. The current financial activities look very bad for all of us bag holders, but it may be necessary because money for stem cells is very dry in the absence of big pharma interest. CYTX has to rely on all these distasteful financial choices (in other words: relying on no one but itself) to stay alive. I think the whole stem cells area is out of favor and many companies may fail in this drought.