Adaptive Medias Inc (fka ADTM)

[236T568]

What is wrong with this picture? Scam company ADTM claims that it is moving towards higher margin business, yet its gross margin DROPPED significantly from 17% to 2.5%:




Revenues held steady despite a seasonally softer second quarter as well as significant changes in Adaptive Medias' sales force as the Company transitions away from its focus on low-margined advertising revenue to its higher-margin ad-tech video platform, Media Graph.

"Gross profit for the first quarter amounted to $27,342 or 2.5% of revenues compared to $197,000, or 17% of revenues in the first quarter of 2015. The sequential decrease in gross profit margin in 2015 reflects a slowdown in the Company's low-margined advertising sales as the Company continues to transition to emphasize revenues from Media Graph, its higher-margined advertising technology platform."


http://www.sec.gov/Archives/edgar/data/1428397/000117184315004700/newsrelease.htm