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SCO's 10Q - Where's the Money?

By Pamela Jones et al.

SCO has filed its 10Q and all the certifications, for the quarterly period ending April 30, 2008, and here's a snip:

It is the Company's intent to appeal the adverse August 10, 2007 summary judgment ruling as soon as that opportunity is available to the Company. However, the Company must complete further legal proceedings before it can take such an appeal. In the event that any substantial amount of the Company's assets are frozen or if its assets or resources are further depleted, the Company may not be able to appeal the August 10, 2007 ruling.

The Company's management and Board of Directors determined that filing for relief under Chapter 11 of the United States Bankruptcy Code was appropriate and necessary. As a result of both the Court's August 10, 2007 order and the Company's entry into Chapter 11, among other factors, there is substantial doubt about the Company's ability to continue as a going concern including continuing the SCO Litigation or appealing the adverse ruling of August 10, 2007.

The accompanying financial statements do not include any adjustments that might result from the outcome of these uncertainties. Absent a significant cash payment to Novell being required by the final resolution for this matter, management believes that the undiscounted future cash flows generated by the Company will be sufficient to recover the carrying values of the Company's long-lived assets over their expected remaining useful lives. However, if a significant cash payment is required, or significant assets are put under a constructive trust, the carrying amount of the Company's long-lived assets may not be recovered.

What about the reorganization plan? Where's all the money they told us was flowing their way?

Full post as published by Groklaw on June 16, 2008 (boomark / email).