Metricom Inc. continued to tailspin toward insolvency last week as its auditor Arthur Andersen expressed “substantial doubt” about the company’s ability to stay afloat in an annual report filed with the Securities and Exchange Commission.
“Our future cash flow may be insufficient to meet out payment obligations under our outstanding senior notes when those payments become due,” Metricom’s 10K filling said.
The company said if it were unable to obtain additional financing it would not be able to continue operations beyond August. Metricom’ s stock dropped more than 10 percent on Friday following the news to a new 52-week low of $2.06 per share.
