Top Ships - Are They a Going Concern

TOP Ships Inc. (Nasdaq: TOPS) announced operating results for the Q1 ended March 31, 2009. They claim to be making money as opposed to red ink this time last year. They proceed with some discussion on operations. But the question becomes are they a going concern. They are in breech of loan covenants. The business model is malfunctioning. Then they lay this comment out about how they will finance the future.

“The Company expects to rely upon operating cash flows, long-term borrowings and equity financings to implement its future growth plan.”

What company does not? When you have violated your financial covenants your credibility disappears. The question becomes is Top Ships a going concern? How would we know?