Very unfortunate. I'm very familiar with this company, and they have a good product -- one that actually works and is gaining traction in the market. Their problem is/was that the service they provide -- extremely fast reserve power -- isn't particularly valued for most applications. Their flywheels don't store much energy (only 15 minutes at full discharge), but they can release that energy to balance the grid astoundingly quickly . The perfect storage device would store a LOT more power (at least 4 hours).
Hopefully, Beacon Power's technology will get picked up by some deeper-pocket firm, like GE or Siemens, that can really get this technology in play.