According to a report from Reuters, lithium ion battery maker A123 Systems is dangerously low on cash. The company filed a report just before the weekend with the U.S. Securities and Exchange Commission indicating that it “expects to have approximately four to five months of cash to support its ongoing operations.”
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.
