There aren't many people who'd invest in Hyperion unless Hyperion can convince them that the company can turn a profit with an infusion of cash and a reorganization.
Profit is overrated, you just need enough to pay your bills and salaries. If every spare bit of cash goes to the owners salary/bonus then you never make a profit.
Most investors are more interested in turnover than profit. It's unlikely that their turnover is that impressive, even with all the upgrades they have been selling. However it might be enough and some people are optimistic about the future anyway (or are just living the dream as long as they can).
Even strategic losses can be ok. It all depends on how others perceive you (see google/twitter/etc). They got lucky because people threw money at them when they weren't making money.
