Beverly Hills, CA-based Cardo Medical has terminated 15 of its 30 employees. And for the foreseeable future CEO Andrew Brooks and President and COO Michael Kvitnitsky have agreed to forgo their salaries.
Cardo undertook these actions to reduce its operating costs and preserve cash while it continues to seek alternative sources of capital or some other type of restructuring. It had been seeking funding through a private placement, but was unsuccessful. While these actions are expected to result in substantial salary, fringe benefit and other cost savings going forward, the reduction in staff will result in a scaled-back level of operations and decreases in net sales going forward.
"At this time, we continue to seek alternative sources of capital, including the selling of some or all of the Company's assets, as well as looking to enter into strategic alliances," Brooks says in a statement. "In the event we are unable to raise additional funds, we may have to terminate additional employees, further scale back or cease operations and seek other strategic or liquidity alternatives. A special committee will be appointed by the board of directors to explore these alternatives."
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