This is from the Company's Recently filed 12b-25 Extension:
Here's the Link:
***Management has not yet completed its evaluation as to whether substantial doubt exists relative to the Company’s ability to continue as a going concern for a reasonable period of time. A significant element of that evaluation relates to uncertainties associated with funding of amounts stipulated in the aforementioned Investment Agreements. These uncertainties may not be resolved by the time the Company files its Form 10-K with the Securities and Exchange Commission. In the event such uncertainties remain unresolved, management anticipates that KPMG LLP’s auditors’ report relative to the Company’s 2008 consolidated financial statements will contain an explanatory paragraph indicating substantial doubt about the Company’s ability to continue as a going concern.
In addition to resulting in termination of further funding pursuant to the Investment Agreements, the inclusion of such a paragraph by KPMG LLP would result in a default under certain indebtedness of the Company, XM Holdings and XM Satellite Radio Inc. (“XM Inc.”) which defaults, if not cured or waived prior to the expiration of the applicable grace period, would result in an event of default under other indebtedness of the Company, XM Holdings and XM Inc. Such events of default, if they occur, provide the lenders the right to demand all amounts due under the respective agreements immediately due and payable.****
And This in The Filing's Attachment: Could This Be and Indicator of FCF and COH without the need to Grow Subscribers with Retail Sales, Best of Both, and Subscriber Resets??
Sirius XM Radio Inc. Attachment 1 to Form 12b-25
On July 28, 2008, Vernon Merger Corporation, a wholly-owned subsidiary of Sirius Satellite Radio Inc., merged with and into XM Satellite Radio Holdings Inc. (“XM Holdings”), whereupon XM Holdings became a wholly-owned subsidiary of Sirius Satellite Radio Inc., which changed its name to Sirius XM Radio Inc. (the “Company”). The results of XM Holdings’ operations will be included in the Company’s consolidated financial statements as part of the Company’s Annual Report on Form 10-K for the year ended December 31, 2008. Accordingly, the Company expects, primarily as a result of the merger, to have a significant change in its results of operations from the year ended December 31, 2007. Subscriber revenue of the Company is expected to approximately double for the period from the date of the merger to year-end compared to the comparable period in 2007. This increase was primarily attributable to the merger and, to a lesser extent, to the growth of subscribers. The Company’s results were also impacted by required purchase accounting adjustments and an impairment charge to goodwill. In addition, the current global economic and financial crisis has had an adverse impact on the Company’s results of operations for 2008 compared to 2007. For example, the sale and lease of vehicles with satellite radios and sales of satellite radios in the retail market are important sources of subscribers for the Company. Current economic conditions, particularly the dramatic and recent slowdown in auto sales, have negatively impacted subscriber growth for 2008.
So What Do You Think Any of This Sets Up For The 17th Conference Call??