Rockley Photonics Files For Bankruptcy Protection [2023.1.23]
Well, this is a turn-up for the books. The Sensor Saviour for the future of wearables, Rockley Photonics, has filed for bankruptcy with the SEC (Source: 8-K Filing, Chapter 11, Voluntary Petition for Reorganization).
Rockley pioneered the commercialisation of innovative laser tech that would sense the status of biomarkers more efficiently and accurately than traditional methods that use various colours of LED lights.
The company had reportedly raised over $290 million in funding from investors, including strategic partnerships with major players in the tech and healthcare industries like Apple.
Rockley Photonics reported $120.7 million in liabilities on Sept. 30, 2022, more than double 2021. It took on around $120 million in short-term debt last year, which is now due and payable following the Chapter 11 filing. Its third-quarter financial report showed a net loss of about $152 million with year-to-date revenues of just $3 million, down from $5.8 million in the first three quarters of 2021. The company tried to stop haemorrhaging cash by cutting operational spending and staff and the CEO was replaced in December 2022.
What This Means
Rockley has filed for bankruptcy protection, so to some extent, it is still in business. However, it may face challenges in trading with suppliers and obtaining credit. The company may need an injection of cash or may consider selling its patents, research, and technology.
Regarding the company’s products, I have heard conflicting stories over the last six months. While I found the positive ones more credible, it appears that the company was indeed facing financial difficulties. Additionally, there may have been issues with validating the technology, as per the rumours I heard.
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