IceWEB Inc plans to sell equity securities to raise new capital and continue its operations, according to The Middle Market.
As of September 30, the troubled data storage firm had accumulated a total deficit of $47.9 million. The company also posted a net loss of $6.5 million in the fiscal year ending September 30, 2012, the report detailed.
Because of IceWEB's losses, its accounting firm doubted that the company will be able to continue operating without the threat of being liquidated. This was revealed in a document filed with the US Securities and Exchange Commission on January 14, the report explained.
To continue its operations, the team of the Kansas City, Missouri-based firm plans to increase products and services sales. The company also plans to raise fresh funding through equity securities offerings, the report added.
IceWEB's sales decreased after Chief Executive Officer (CEO) John Signorello died in May 2012. The firm's clients put purchases on hold until they received assurance of IceWEB's continued operations. CEO Robert Howe resigned on January 14 and board chairman Hal Compoton will now sit as the interim CEO, The Middle Market reported.
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