First Virtual Communications of Redwood, Calif., maker of the Click to Meet video and Web conferencing suite, earlier this month furloughed all of its employees and is likely to file for bankruptcy protection as it mulls its future.

According to a filing with the SEC, the company furloughed indefinitely some 90 to 100 employees as of Jan. 6 and has essentially discontinued operations. The company also made chief executive Jonathan Morgan the chief financial officer of the company. Reached at FVC’s headquarters, Morgan declined comment on the company’s situation, saying statements made in the company’s filing stand on their own. FVC is exploring the possibility of selling its assets, reducing other expenses or officially discontinuing operations.

The company’s financial position has been slipping over the past year. FVC’s stock was delisted from the Nasdaq stock exchange in August after the company failed to file its quarterly results on time. FVC said it was investing potential accounting irregularities in its Asia operations, which delayed the filing.

In an SEC statement filed mid-November, the company says it had been operating at a loss since inception and was relying on “private and public placements of equity securities, revenue from the sale of our products and services and through credit facilities.” The company claimed it had $1.4 million in the bank and forecasted it could only survive another 20 to 60 days without another infusion of capital. Further compounding the situation, FVC entered into a forbearance agreement with Silicon Valley Bank over a $3 million credit line and was the subject of a federal class action lawsuit that claimed company officials artificially increased its stock price through misleading statements.

Despite the ongoing financial woes, the company released version 4.1 of its Click to Meet Express line in November, which featured a new group conferencing interface, among other changes.

“They didn't fail because of the technology being poor,” says Christine Perey of Perey Research and Consulting in Placerville, Calif. “The have very mature technology, good features and it’s scalable.”

Vemics in Boston uses the Click to Meet infrastructure for the backbone of its video and Web conferencing service. Rick Marcimiack, president and COO, says FVC’s business woes will not impact Vemics’ current operations and offerings.