MOD Systems, a maker of digital media kiosk technology, has raised more than $6 million from existing investors as the Seattle company looks to enter an "aggressive expansion phase." In a blog post announcing the financing, CEO Anthony Bay said that MOD is entering one of the most "exciting times in the company's history" as it looks to bring the technology to entertainment kiosks at airports and other retail locations.

The capital infusion comes at a critical time. In July, MOD -- which has been engaged in ongoing litigation with co-founder and former CEO Mark Phillips -- said in a court filing that it was running out of cash in the next 30 to 60 days. Despite that filing, Bay told TechFlash at the time that he was confident in the company's ability to remain a going concern.

"I can tell you that we'd be having a different conversation if we were all nervous that the company was going to go out of business in the next 30 to 60 days," he said. "We are not concerned about having sufficient capital."

The news of the financing comes just two days after Phillips -- who is no longer affiliated with the company -- was indicted on three counts of wire fraud, one count of mail fraud and one count of attempted bank fraud. Phillips is accused of embezzling funds from MOD and using the money for his personal gain.

Meanwhile, MOD says the business is progressing. The company's technology, which allows consumers to download movies, TV shows and other entertainment programs on SD memory cards from digital kiosks, recently deployed the system at the InMotion Entertainment store at Sea-Tac International Airport.

Bay explained the opportunity in the blog post:

"MOD is one of very few companies with licenses to sell both digital movies and music at retail, and we do so because we’ve developed a sophisticated technology platform that enables the secure encoding, ingestion and distribution of protected content. With our solution, retailers can rent or sell thousands of new release and catalog movies from some of the top Hollywood studios, including Warner Bros., Paramount, MGM, 20th Century Fox, Lionsgate, and independent studios such as Anchor Bay, Image Entertainment, and First Look Studios, as well as music from all major labels. It’s complex, but we have the best technologists on staff, partnerships with folks like NCR, Sonic Solutions, film studios and music labels, and a tremendous market opportunity."

Backed by NCR and Toshiba, MOD previously pulled in $35 million in funding in September 2008.

Here's a look at how the MOD technology works from a video demo earlier this year with TechFlash.