MiMedx is pro forma bankrupt

With only $33 million in cash on the balance sheet at the end of December, MiMedx is pro forma bankrupt.

Selling General and Administrative (SG&A) expenses ran over $60m in the last reported quarter, or about $55m even without stock based compensation. If MiMedx has had to use its cash to meet payroll, then cash on the balance sheet is already down the drain.

An inability to file timely financial statements will put MiMedx in technical default and choke off their credit line. Ernst & Young said they were reviewing prior years which will not be a quick process, especially with prior years audited by Cherry Bekaert, which is not exactly a household name.

MiMedx’s Real Sales, if any, are now in free fall but expenses are not.

Professional fees for an army of lawyers and forensic accountants will run into the tens of millions and accelerate cash burn.

MiMedx is now in what is known as a “death spiral” as it struggles to stabilize sales while cash evaporates and employees leave or are fired.

Look for more shoes to drop. There’s never just one cockroach in the kitchen.


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