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Liquidity
6 Months Ended
Jun. 30, 2015
Liquidity  
Liquidity

NOTE 3—LIQUIDITY

 

The Company believes that it will have sufficient liquidity to finance its activities and the activities of GridSense and OmniMetrix over at least the next 12 months based upon its current cash balance, the support expected to be provided by DSIT and the funds provided by its recent financing (see Note 12 – Subsequent Events). If the support expected to be provided by DSIT (up to $5,000 in 2015) is not available in sufficient amounts, Acorn may not be able to fund its own corporate activities and Acorn may not be able to fund GridSense and OmniMetrix as it has historically which could materially impact the carrying value of these subsidiaries and the Company’s ability to continue operations. Through June 30, 2015, DSIT has lent Acorn $500 in 2015. At June 30, 2015, DSIT was not in compliance with one of its financial covenants following the receipt of the $6,168 down payment from its recently received $15,420 order. The bank is working with DSIT to reformulate this covenant to take this into account.

 

See Note 12 for additional developments with respect to the Company’s liquidity.