Skins Footwear Inc Corp., the firm that patented the two-part footwear, filed for Chapter 7 liquidation on Friday.
The filing was made in Delaware bankruptcy court. Skins’ patent utilizes a footwear concept that features changeable outer skin that fits over an inner orthopedic structure called the “bone,” allowing consumers to buy several skins for use with the same bone.
According to the petition, the Hoboken, N.J.-based firm estimated assets of no more than $50,000 and liabilities of between $10 million to $50 million.
In its annual filing with the Securities and Exchange Commission in April, the company posted a loss of $4.6 million for the year ended Dec. 31, 2008, compared with a loss of $6.6 million the prior year.
The company said in the filing it had no established source of revenues and had accumulated losses of $16 million since inception in May 2004. As of Dec. 31, 2008, the company had $88 in cash and earned no revenues since inception. The company financed operations through private placement of equity securities. Its latest equity transaction was the sale on April 9, 2008, of 13.4 million units to 27 investors that raised $2.7 million in a private offering.
The company said in its annual report that if it could not obtain additional financing, there was a risk it might not be able to continue operations beyond Dec. 31.