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IZZI looks thin here...was as high as $.017 yesterday...been watching this one closely
EGTK should be in play today
Looking for a big move here today. HotOtc.com announced EGTK as new pick last night.
IZZI $.0125 x $.0129 here looks good
IZZI on watch
IZZI looking for a late day run
IZZI - looks like it's setting up for a run here. Nice 10-Q out last Friday...willing to bet you a dollar they swing to profitability next Q
keep an eye on IZZI...something is up
IZZI on alert...
IZZI been under quiet accumulation
IZZI looks super thin
IZZI $.0132's someone's been nibbling this thing
IZZI - looks like someone has been nibbling...put out a nice 10-Q on Friday...could have something to do with it. Ameriturd showing $.03 EPS...
IZZI $.0132 hod
IZZI starting to get jiggy
radar IZZI...hearing it should be in play this week
morning bud...you ready to shake and bake?
check out IZZI...hearing it should be in play this week
VGPR is in play this week...
keep an eye on IZZI tomorrow...hearing it could get jiggy
IZZI - I'm showing an EPS of $.03...which would make the stock grossly undervalued at it's current level...
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
________
Form 10-Q
________
ý
QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE QUARTERLY PERIOD ENDED December 31, 2009 .
¨
TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE TRANSITION PERIOD FROM ______________ TO ______________.
Commission file number 1-11900
Integrated Security Systems, Inc.
(Exact name of small business issuer as specified in its charter)
Delaware
75-2422983
(State of Incorporation)
(I.R.S. Employer Identification No.)
2009 Chenault Drive, Suite 114, Carrollton, TX
75006
(Address of principal executive offices)
(Zip Code)
(972) 444-8280
(Issuer’s telephone number)
Indicate by check mark whether the registrant (1) filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”) during the past 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes x No o
Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes o No o
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act): Yes o No x
Indicate by check mark whether the registrant is a (See definitions in Rule 12b-2 of the Exchange Act:
Large accelerated filer ¨ Accelerated filer ¨ Non-accelerated filer ¨ Smaller reporting company ý
As of January 31, 2010, 560,764,951 shares of the registrant’s common stock were outstanding.
Page 1 of 17
--------------------------------------------------------------------------------
INTEGRATED SECURITY SYSTEMS, INC.
INDEX
Page
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements
Consolidated Balance Sheets at December 31, 2009 (unaudited) and June 30, 2009
3
Consolidated Statements of Operations (unaudited) for the three months and six months ended December 31, 2009 and 2008
4
Consolidated Statements of Cash Flows (unaudited) for the six months ended December 31, 2009 and 2008
5
Notes to Financial Statements
6
Item 2. Management’s Discussion and Analysis or Plan of Operation
12
Item 4. Controls and Procedures
14
PART II. OTHER INFORMATION
Item 1. Legal Proceedings
15
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds
15
Item 3. Defaults upon Senior Securities
15
Item 4. Submission of Matters to a Vote of Security Holders
15
Item 5. Other Information
15
Item 6. Exhibits
15
SIGNATURES
16
Page 2 of 17
--------------------------------------------------------------------------------
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements.
INTEGRATED SECURITY SYSTEMS, INC.
Consolidated Balance Sheets
December 31,
June 30,
2009
2009
ASSETS
Unaudited
Current assets:
Cash and cash equivalents
$
23,092
$
30,944
Short term investments
40,525
56,000
Accounts receivable, net of allowances of $219,432 and $204,803, respectively
1,130,398
1,487,175
Inventory, net of reserves
325,819
314,430
Other current assets
254,033
242,509
Total current assets
1,773,867
2,131,058
Property and equipment, net
21,580
28,884
Goodwill
1,707,953
1,707,953
Other assets
162,454
218,199
Total Assets
$
3,665,854
$
4,086,094
LIABILITIES AND EQUITY
Current liabilities:
Accounts payable
$
978,956
$
1,252,517
Accrued liabilities
744,540
923,537
Demand note payable
362,615
287,985
Current portion of long-term debt
8,033
7,657
Liabilities related to discontinued operations
15,612
20,892
Total current liabilities
2,109,756
2,492,588
Long-term debt
11,187
15,299
Equity:
Convertible preferred stock, $0.01 par value, 750,000 shares authorized; 22,500 shares issued and outstanding ($450,000 of liquidation value)
225
225
Common stock, $0.01 par value, 800,000,000 shares authorized; 561,043,473 and 559,126,805 shares issued, respectively
5,610,435
5,591,268
Treasury stock, at cost, 278,522 common shares
(125,606)
(125,606)
Additional paid in capital
37,947,058
37,888,178
Accumulated deficit
(41,864,994)
(41,780,971)
Accumulated other comprehensive loss; (available for sale security)
(28,289)
(12,000)
Total stockholders’ equity
1,538,829
1,561,094
Noncontrolling interest
6,082
17,113
Total equity
1,544,911
1,578,207
Total liabilities and equity
$
3,665,854
$
4,086,094
keep an eye on IZZI tomorrow...hearing things
set up for a run into the $.002's looks like
$.0013 x $.0014 looking good going into the close here
IDCN going hard $.0013 x $.0014
IDCN - THE top sub-penny pick of the week
interesting...looks like this company has an EPS of $.03...
heard through the grapevine that hototc.com was also starting them this week
VGPR back on alert - hearing alot of behind the scenes banter on this one
You need to put these 3 on your watch list for this week:
AMCG
VGPR
IDCN
I suspect we will see a few more e-mails from them over the weekend regarding AMCG...I like how they tried to slip it in at the bottom of the e-mail sort of under the radar still
PSC is now on AMCG...just got the e-mail today...see the bold print at the bottom where it is mentioned...
How do I make money on PSC picks? How does PSC make money? How does PSC make picks?
PSC likes to take the time to answer member questions and concerns on a regular basis. Recently, PSC has received inquiries from members with some specific questions.
These include how do I make money on PSC picks and does PSC make money? Also , we have been asked how does PSC make picks?
It is our hope that we can answer these questions by giving members some idea about how PSC is run.
The underlying principle of the PSC site is to put our members first in every instance and every decision we make while picking our stocks.
To that end, PSC has traveled the country in the last ten months meeting consultants and management of companies like EXPU, RGTX, HSCO, and AWSL. Meeting management and consultants near these companies allows us to get perspective on the upside for anyone company. The result of our travels have brought us some terrific picks which have raked in some strong short term (1 month) and long term results (6 months). It may seem funny to talk in terms of one to six months as the difference between short and long term but members have to take into account the volatile and risky nature of penny stocks.
Big long term home runs have included stocks like RGTX and AWSL.
RGTX moved from .12 in October 2009 to $1.79 close on Friday; in straight line and has held all gains. This is a massive 1316.67% gain for members who bought on our alert.
The company is still releasing strong news and like the PR announced today.
Registered Express Corporation Announces RegEx Environmental Calculator(TM), for Tracking Savings and Positive Environmental Impact While Sending Documents and Files
http://www.stockwatch.com/newsit/newsit_newsit.aspx?bid=U-z0184236-U:RGTX-20100212&symbol=RGTX&news_region=U
AWSL was another big gainer for PSC. The stock was picked up by PSC @ .84 and rocketed 476.19% to $4.84 in October 2009. The stock closed @ $2.74 on Friday which is still up 226.19% from our alert. On top of this , the company announced a 1 for 3 dividend which further boosts your return depending on where you bought AWSL.
Atlantic Wind and Solar Inc. Stock Dividend Paid
http://www.stockwatch.com/newsit/newsit_newsit.aspx?bid=U-i0585050-U:AWSL-20100208&symbol=AWSL&news_region=U
We also have super short term plays which can be alerted on the PSC twitter link.
http://twitter.com/stockchaser
The twitter link has 34,637 members so it is very powerful. PSC is undertaking efforts to build twitter up to over 60,000 members so get in on the action and join today. The more members we have; the faster and higher the alerts will move.
Just this week twittered our large purchase of AVOE shares and the stock bounced from .10 to a high of .17 which means some smart traders made 70%. Members on twitter were able to get in and make cash because a large amount of stock traded between .10 and .12 and then .15 to .17. We bought over 700,000 shares so we like the long term upside here. This stock used to trade @ $2.46 this year so we like this price point for substantial lift.
On Friday afternoon we twittered on WDRP and the stock zoomed up by 50% to a close of .012. This move proves that our twitter alerts work. Members can choose to jump when we twitter and sell after raking in the bucks or they can hold till we mail to the main membership and explain why we think the stock is going even higher. This stock is a great example of how a short term trading opportunity on twitter can turn into a 500% to 1000% mover. WDRP put out news @ the close and we will cover it on Sunday and Monday to show you the upside.
Anyway you cut it, PSC can make you some serious dollars if you are responsive to the alerts.
Do these alerts always work? The answer is no. Although our alerts work on a very high percentage basis , they do not always wok. The most common reason picks don't work is that some of these companies have large shareholders which go offside and catch us by surprise and sell some large positions.
This is not a sign that the company is bad it is merely an indication that greed has taken over. When we see this in action we step aside and wait for the stock to find a new level of trading.
It is our strong belief @ PSC that the simplest answer is always the correct answer. Insiders or companies might deny that the selling is coming from someone close but mathematics never lies. The people with the biggest amount of stock are always the ones to sell first and sometimes in large amounts. I suppose you might call it motive.
Unexpected selling pressure on some our picks often leads members to ask if we are selling. PSC has 12 full time employees so the short answer is yes we do sell. The way we sell is what members should know. PSC might sell 5% to 10% of the volume in a stock on any given day. Just like our members we are motivated to get the best possible price so we seldom hit the bid. Bid selling might happen if we see that a stock is being sold by insiders and we need to follow the market down. Again, we would never sell more than 10% during a day so we are never the fuel to a sell off. We believe in our picks and we stand behind them as long as we believe there are no issues.
The reasons PSC sells are to pay for advertising and wages. A full 40% to 50% of all sales generated go back into the business. In the long run a stronger and bigger PSC is good for everyone. The membership is extremely big and we fully anticipate that membership will double this year.
Members should also be aware that we still have over 60% of all the stock we have received as fees.
Another interesting question we received is why does PSC cover so many stocks? The number of picks may seem huge but it is not really if you put it in context.
PSC receives 3 to 5 requests from companies to initiate awareness programs on a daily basis. That is 15 to 20 a week. Our goal is to bring one to two new choices to members on a weekly basis.
The main reason we cover many stocks is to maintain a healthy variety of picks is to differentiate ourselves from other newsletters who tend to be very short term players.
Another reason is that if we narrow our picks to much we risk getting super spikes which could cause many of members to get stuck in a stock once the excitement fizzles. Super spikes caused by co-ordinated mailing by competing newsletters have cause some serious problems in other stocks during 2009 and 2010.
Lastly, we have many a steady stream of picks because some members prefer higher price stocks and some members prefer sub-penny stocks. Some like oil and gas plays while others like technology plays. Variety gives members the chance to pick and choose where they would like to put their money.
The reality is, members should have many different picks in their portfolio. This reduces risk and maximizes returns. Even the best run penny stock companies run into bumps and see their stock prices drop. Sometimes it is because of market conditions or the stock just happens to be in the wrong sector because of news events. Members are encouraged to buy or not buy based on their own risk tolerance. The same principal applies to when is the right time to sell. It all depends on you. Ignoring the hype and the noise and making decisions based on your risk tolerance will allow you to sleep at night and profit. The trick is to keep emotions out of the equation and look out for the bottom line. Even if you loose X% on stock pick, you might make 500% or more on the next pick. Live to fight another day in other words.
In closing, we are super pumped for the rest of 2010. PSC will be bringing you a slew of twitter trader specials and short and long term plays. In the next few weeks we will be visiting future tech standouts like MYSL and AMCG.
MYSL closed @ .86. We like the upside for the company. The stock is near a 52 week low and the upside seems just like a matter of time.
The platform developed by the company is getting serious buzz with techies and we think that this kind of acceptance will result in a very big deal getting inked very soon. The last PR from the company gives you an idea of how close these guys are to a breakthrough deal.
TrendLink in partnership with MyScreen to launch commercial version of MyScreen mobile advertising platform in Turkey following already successful Turkcell trial.
http://www.stockwatch.com/newsit/newsit_newsit.aspx?bid=U-prTO843-U:MYSL-20100205&symbol=MYSL&news_region=U
AMCG is new to the PSC buy list and it is trading steady volume. The stock closed @ a new 52 week high on Friday @ .83. Something big is up here and the chart is pointing North.
The news released by the company today made our eyes pop out. This is something special. Members should expect some updates on AMCG this weekend.
Amico Games Corp. Adds Approx 1 Million New Users Through January 2010
http://www.stockwatch.com/newsit/newsit_newsit.aspx?bid=U-i0586854-U:AMCG-20100212&symbol=AMCG&news_region=U
It is our pleasure to answer questions from members at anytime. If you have questions please do not hesitate to contact us info@pennystockchaser.com
DMXC - looking for move back above $.01
DMXC $.009's getting hammered should break soon
I think $.012 is resistance
DMXC $.009's getting hammered
(sorry did not realize)
DMXC $.0085 x $.009 been under solid accumulation the past few days...looking for a break back above $.01
DMXC $.0085 x $.009 - looking for $.01 break