Ipix files for bankruptcy, ceases operations
RESTON, Va.--A little more than a month after securing $5 million in funding, and fresh off a first quarter that saw nearly 200 percent growth in revenues, Ipix announced July 31 it has filed for bankruptcy protection and "has ceased all business activity and operations." The company, which made cameras featuring "immersive technology" and offering 360-degree views, reported $3.8 million in losses for first quarter 2006, and $22.4 million in losses for 2005.
According to a bankruptcy court filing, the decision to file for Chapter 7 bankruptcy was made by the board of directors at a July 24 meeting where four of those directors resigned. Ipix reported $7.87 million in debts against only $7.67 million in total assets. Creditors will be paid according to a tiered system, with secured claims taking precedence over unsecured claims and Ipix shareholders holding the least status.
Barry Walker, chief executive officer at CoVi, which just secured $15 million in funding on Monday, said he doesn't think Ipix's bankruptcy is likely to scare investors from the security field. Though not referencing Ipix's products specifically, Walker opined that "technology for technology's sake does not a business make. If you're solving customer problems with technology, then you're got a winner, but if it's more technology than solving problems, then it doesn't work. There will be some hits and there will be some misses."
For more on Ipix's collapse and CoVi's new round of funding, see the September issue of Security Systems News.