Spherix Inc. (SPEX), the patent monetization company run by CEO Anthony Hayes, is going to have to raise about $6 million to redeem Series I preferred shares due June 30 and Dec. 31 after a first quarter net loss of $4.09 million left it with cash and cash equivalents of only $111,000.

“Pursuant to the terms of our Series I Preferred Stock, we are obligated to redeem 5,601 shares of our outstanding Series I preferred stock on June 30, 2015 at an aggregate redemption price of $935,367, and to redeem the remaining 29,940 shares of our outstanding Series I preferred stock on December 31, 2015 at an aggregate redemption price of $4,999,980,” the company said in its most recent 10Q filing.

“We currently do not have sufficient cash or working capital to make these payments. The company’s failure to generate or raise sufficient cash and working capital to meet these obligations may result in our default under these obligations, which would have a material and adverse impact on our results of operations and may require the company to suspend or discontinue its business activities.”

Hayes didn’t return a telephone call seeking additional comment.

Shares of Spherix fell 2 cents, or 2.9%, to 70 cents in midday trading.

The company’s options are somewhat limited. It may have to turn to Fortress Investment Group or to previous or existing shareholders such as Iroquois Capital, Hudson Bay Capital Management.

New York-based Iroquois Capital just provided $12.5 million in convertible debt financing to Vringo Inc. (VRNG).

Officials from Fortress, Iroquois and Hudson Bay couldn’t be reached for comment. Fortress and Hudson Bay are both also based in New York.

Spherix on May 8 posted a narrower net loss of $4.09 million in the first quarter of 2015 on lower expenses especially related to stock based compensation.

The net loss per share of 14 cents compared with a net loss of $7.96 million, or $1.66 a share, a year earlier.

The company’s costs included $2.42 million in amortization of patents, versus $2.43 million a year ago.

Compensation expenses fell by two thirds to $719,000 from $3.53 million. Professional fees including legal also fell to $729,000 from $1.15 million.

Selling,general and administrative costs also fell to $226,000 from $836,000.

The company reported revenue of just $2,000 versus $4,000, a year ago.

The company had cash and cash equivalents of only $111,000 at the end of the quarter.

The company also is facing delisting from the Nasdaq, because its stock price has fallen below minimum listing requirements.

To reach the reporter responsible for this story contact Dan Lonkevich at 707 318-7899 or dan@thepatentinvetsor.com