Because uncontrolled debt can be a major negative

Because uncontrolled debt can be a major negative during lots of considerations, including negotiating collaborations. I wouldn't want Leo walking in on his last few thousand dollars. Not to mention the fear that shareholders would experience if the cash on hand value dropped to a few weeks of operations - Leo was simply being prudent, keeping the business and shareholders in mind. Thus, the day after 10q is released, we are flat - not decreasing, current investors are happy!