A123 running perilously low on cash
The company says it spends between $18 million and $25 million per month in normal operational costs, and had about $68 million on hand at the end of May. In the same filing, A123 outlined plans to raise $39 million in an effort to remain afloat while it attempts to locate new business and shore up its finances. The company expects to turn a positive cash flow on a quarterly basis sometime in 2013.
A123 has major contracts with automakers such as Fisker and BMW, the former of which was involved in a massive battery recall that is said to have cost A123 nearly $67 million. The upcoming Chevy Spark EV is also slated to use batteries from A123, assuming the company is able to survive its recent monetary blows.
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