Crucial 2011 Annual Report Download - page 204

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53
INOTERA MEMORIES, INC.
NOTES TO FINANCIAL STATEMENTS
The management of the Company has evaluated the subsequent events as disclosed in the financial statements through
March 28, 2011.
The Company's operations have been adversely affected by the recent market conditions particularly for the DRAM industry. For
the nine month period ended September 30, 2011, the Company has incurred an unaudited net loss of approximately $15 billion
and its unaudited net cash provided from operating activities approximated $10 billion compared to approximately $18.7 billion
for the comparable period of the prior year. As of September 30, 2011, the Company's unaudited current liabilities exceeded its
unaudited current assets by approximately $37.7 billion, its unaudited cash and equivalents amounted to $0.7 billion and it
continues to be unable to maintain certain financial covenants required in its debt agreements. Management plans to adopt the
following strategies for improving the Company's operations and financial situation.
(i) Obtain additional equity capital and/or draw down on credit facilities to strengthen liquidity.
(ii) Transition to advanced DRAM process technology and product diversities to enhance cash flow.
Management believes the Company's operating results and financial structure will improve by executing the above plans. As of
September 30, 2011, the Company has an unconditional $28 billion unused credit line available to it (that increases as and when
necessary) with the Formosa Group as well as available unused bank lines of credit. Management continues to believe the
Company, in combination with the strategies described above, will have sufficient sources of liquidity to meet its obligations as
they become due for at least the next 12 months.
(3)
Date through Which Subsequent Events Have Been Evaluated
(28)
Event (Unaudited) Subsequent to the Date of the Report of the Independent Registered Public Accounting Firm