Rennova in Financial Trouble According to New SEC Report

By Jacob E. RosenbaumBy Jacob E. Rosenbaum

A recent Securities and Exchange Commission (SEC) filing made by Rennova Health, the company that currently owns Jamestown Regional Medical Center, reveals  that the company was nearing financial ruin at the close of the 2018 fiscal year. The report, which is months overdue, says that the company lacked the  financial ability to cover basic operations such as rent and payroll.

According to the report, the company had just $7,000 cash on hand at the end of the 2018 fiscal cycle. “Our cash position is critically deficient, critical payments are not being made in the ordinary course of business, and we have indebtedness for which we do not have the financial resources to satisfy,” the report admits.

Along with this cash deficiency, the company also reported a $13.6 million operating loss last year, along with  combined stockholder and and working capital defecits  of nearly $80 million.

“We need to raise additional funds immediately and continue to do so until we begin to realize positive cash flow from operations,” the report states.

Along with these glaring figures, also included in the report are a number of statements which demonstrate a level of frankness which has previously not been displayed by Rennova. These statements paint a dire portrait of the companies financial future, as well as admissions that their present business model:

“There can be no assurance that we will be able to achieve our business plan, which is to acquire and operate clusters of rural hospitals, raise any additional capital or secure the additional financing necessary to implement our current operating plan. Our ability to continue as a going concern is dependent upon our ability to significantly reduce our operating costs, increase our revenues and eventually regain profitable operations.”

The report further states:

“We generated negative cash flow from operating activities for the years ended December 31, 2018 and 2017. If this trend were to continue and we are unable to raise sufficient capital to fund our operations through other sources, our business will be adversely affected, and we may not be able to continue as a going concern. There can be no assurances that we will be able to raise sufficient funds on terms that are acceptable to us, or at all, to fund our operations under our current business model.”

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