As of Aug. 14, the firm had just $2.7 million in cash and cash equivalents, with accounts payable and accrued expenses looming large at $7.5 million. "As a result, the amount of cash on hand is not sufficient to continue to fund our ongoing clinical trials of Androxal, complete all necessary activities relating to the suspension of our clinical trial program for Proellex, pay our accounts payable and accrued expenses as well as our normal corporate overhead and expenses," said Repros in a statement.

Thanks to its remarkably weak capital position, RPRX warned of substantial doubt regarding its ability to continue as a going concern. Effective Aug. 16, the company slashed employees' salaries by 50%, but additional measures are needed. RPRX said that it's "exploring potential new financing alternatives," but added that there are no guarantees such measures will be successful.

"Significant additional capital will be required for us to continue development of either of our product candidates," explained Repros. "Failure to raise sufficient funds in the immediate short term as described above will likely result in the filing of bankruptcy and dissolution of the company."

Traders have wasted no time dumping shares of RPRX following this morning's announcement. The stock was last off more than 26%, and it earlier tagged a new all-time low of 74 cents per share. This fresh nadir stands just one penny below the stock's previous all-time low of 75 cents per share, tagged back in December 2002. With the shares breaching this threshold, a few short sellers might have been inspired to take profits -- currently, a healthy 8.7% of the equity's float has been sold short.

Elizabeth Harrow is an analyst and financial writer in the research department at Schaeffer's Investment Research. She is featured in the video series Schaeffer's Daily Q&A on SchaeffersResearch.com.