Bankruptcy ‘a possibility’ for Digiliti Money
Written by Anthony Strzalek
Digiliti Money, a US-based mobile FinTech provider, has announced its intention to file an extension with the Securities and Exchange Commission (SEC) after failing to meet the deadline to submit its Q2 earnings.
Digiliti Money says it has initiated an internal investigation regarding very recently discovered information indicating that it may need to restate its previously reported financial results.
In a statement the firm said: “The company believed it had the opportunity to obtain financing to fund its immediate cash needs, however after disclosing the situation to the potential funder, we believe the financing is no longer certain. As such, we are actively reviewing strategic options to restructure the company including the potential sale of the company or potentially filing for Chapter 11 bankruptcy.”
The news follows the resignation earlier this week of Digiliti Money’s president and CEO, Jeffrey Mack.
Interim CEO Bryan Meier, said: “In light of the recent management change and our preliminary Q2 results, we will be evaluating the company’s go forward strategy. Our near-term focus will be on our core products, growing our existing customers, and becoming more selective about the opportunities we pursue.
“In addition, we are reducing our cash burn to improve our bottom line performance, which we are demonstrating with the implementation of our recent cost-cutting initiatives intended to reduce our annual operating expenses by nearly $3 million.”