Although it is true that PSID has sales, they lose over $1 million per month. And with a greedy CEO that pays himself a million dollars per year. So there are stinky pinkies out there that may not have as much in revenues, they don't have as much overall debt either. This company is bleeding cash month after month, year after year. There's a good reason that the stock has been going south since its inception and just a matter of time before they end up in bankruptcy. That will happen once the CEO can no longer dilute the stock. The SEC has a limitation on the number of shares a company may print.
POSITIVEID CORPORATION AND SUBSIDIARIES
Condensed Consolidated Statements of Cash Flows
(In thousands)
(Unaudited)
Nine Months Ended
September 30,
2016 2015
Cash flows from operating activities:
Net loss $ (10,317 ) $ (6,886 )
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization 251 187
Stock-based compensation 2,908 1,315
Convertible debt discounts and premium amortization 5,306 2,942
Loss on extinguishment of debt 6 233
Change in fair value of embedded conversion option liability (1,424 ) 1,446
Change in acquisition obligations (107 ) —
Gain on sale of investment shares — (336 )
Allowance for collection of note receivable — 135
Note issued as consideration for services 145 129
Changes in operating assets and liabilities:
Decrease (increase) in prepaid expenses and other current assets 456 (13 )
Decrease in inventory 1,214 —
Increase (decrease) in accounts payable and other accrued expense (39 ) (89 )
Increase in accrued interest 471 447
Decrease in deferred revenue (1,724 ) (2,571 )
Decrease in tax contingency (58 ) (215 )
Net cash used in operating activities (2,912 ) (3,276 )
Cash flows from investing activities:
Proceeds from sale of investment shares, net — 336
Cash loaned for note receivable — (135 )
Purchase of property and equipment (8 ) (4 )
Net cash (used in) provided by investing activities (8 ) 197
Cash flows from financing activities:
Proceeds from debt financing, net of fees 3,076 3,891
Payments on short-term debt (189 ) (638 )
Net cash provided by financing activities 2,887 3,253
Net (decrease) increase in cash and cash equivalents (33 ) 174
Cash and cash equivalents, beginning of period 173 145
Cash and cash equivalents, end of period $ 140 $ 319
Supplementary Cash Flow Information:
Cash paid for interest $ 70 $ 48
Cash paid for income tax $ — $ —
Non-cash financing and investing activities:
Conversion of promissory notes into common stock $ 3,270 $ 2,581
Stock issued for prepaid services $ 159 $ 149
Reclassification of embedded conversion option liability upon conversion of debt $ 3,026 $ 1,240
Premium recorded on debt $ 447 $ —
Reclassification of stock settled debt premium to equity upon extinguishment and conversion of debt $ 28 $ 2,082
Discounts recorded for loan fees and original issue discount $ 320 $ 638
Embedded conversion option liability recorded as debt discount $ 2,270 $ 4,307
