HTG Molecular Diagnostics (NASDAQ: HTGM) stock is down on Tuesday after the company announced a Chapter 11 bankruptcy filing.
According to the filing, HTG Molecular Diagnostics will operate as a "debtor-in-possession" business during the bankruptcy.
It's also seeking a variety of first-day motions that will allow it to continue normal operations.
The filing also accelerates the obligations of the company's debts, including a $2.68 million loan held by Silicon Valley Bank, now a division of First-Citizens Bank and Trust Company.
HTG Molecular Diagnostics notified the termination of Senior Vice President and Chief Commercial Officer Byron Lawson at the start of the month.
However, the company also signed a deal for his consulting services during a one-month transition period. This has the company agreeing to pay Lawson $23,000.
In its Q1 earnings release, the company said partnering discussions had been initiated with global biopharmaceutical companies around its portfolio of drug candidate molecules in oncology and neurodegenerative disease indications.
In addition, HTG has initiated partnering conversations regarding the use of HTG's drug discovery engine within the partners' portfolios of drug assets.
HTG Molecular reported Q1 sales of $1 million, on a net loss of $5 million.
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