Lifestream Technologies to wind down operations

Lifestream Technologies Inc., of Post Falls, is looking to “wind down” its business and sell its assets, the company announced Wednesday.

The company’s shares also will be delisted from the over-the-counter Bulletin Board, where they last traded earlier this month for less than a penny a share.

The company, founded in Sandpoint more than a decade ago, makes cholesterol-monitoring devices that can be used by consumers at home.

Lifestream’s filings with the Securities and Exchange Commission say the company has little cash on hand, heavy debt and negative cash flow. In its annual report last year, the company’s accounting firm expressed “substantial doubt regarding the company’s ability to continue as a going concern.” Lifestream has yet to file an annual report for its 2006 fiscal year, triggering a timeline for delisting its stock. Delisting will take place on Nov. 3 if an annual report isn’t filed before then, say SEC filings.

Those filings also say the company missed a $3.4 million payment to lender RAB Special Situations (Master) Fund Limited in February, and that in April Lifestream gave rights to some of its patents and trademarks to RAB in exchange for a reduction of debt.

Wednesday, Lifestream said it has “entered into a forebearance agreement” with RAB, which calls for Lifestream to hire a turnaround specialist. That specialist, Frank Mack, has been named Lifestream’s chief restructuring officer and will report to the company’s board of directors.

Lifestream will pay Mack’s firm a fee ranging from $235 to $495 per hour.

SEC filings say Mack will “explore strategic options” for Lifestream.

Calls to Lifestream’s Post Falls headquarters were not returned Wednesday.

Longtime Chairman, President and CEO Christopher Maus relinquished those roles in April, SEC filings say, although he remained a member of the company’s board. Lifestream signed a consulting agreement with Maus that same month calling for him to be paid $11,500 a month for three years.

Another longtime director and a member of the board’s audit committee, Michael Crane, resigned from the board in March.

According to Lifestream’s third-quarter financial statement — the most recent numbers contained in SEC filings — as of March 31 the company had assets of $1.1 million and liabilities of $9.5 million. It posted an operating loss of $246,500.

At one time Lifestream employed more than 30 people in Post Falls, and its stock traded on the American Stock Exchange.