NGNM:From what I can tell, they aren't your typical shady OTC company.
Having been invested in this co. since late '05 I have watched the co. raise cash through one SEDA ('05), one PIPE ('06) and since then, has maintained a balance sheet that has been fairly respectable. They've raised cash since through ABT taking a stake, Van Oort taking a stake, and the recent private purchase from insiders. The co. has grown sales and revenues every quarter since I've been in, but has only had a handful of profitable quarters, usually coming in just under profitability. Mgmt has repeatedly stated that once they hit about $10 million/quarter, they have much greater leverage with cash flow/EBITDA and we will see much more profitability going forward (I do not understand co. finance well enough to be able to explain this, but both Jones, Van Oort and the last CEO all boasted about this.)
Growth has been less than expected for several reasons, including hiring a VP who apparently did very little before he was dismissed (with a generous compensation package I might add) and a slower than expected transformation from providing bulk testing services to other labs, to being a provider to individual pathologists and oncologists. The sales force has essentially doubled since '08 to 26(if memory serves) reps and supervisors. Currently there are three CLIA certified labs and last year, mgmt reported that they anticipated opening/acquiring a 4th sometime this year (which is why I speculate that the insiders raised some cash through the recent insider buy.)
The co. has also played in attempts to get in on early proteomics, with an agreement and potential investment in Power3 Genetics (PWRM.OB now, PWRM.PK just a few months ago; then a longshot microcap co., now a total scam that backwards merged with some other scam co.) which was a complete bust. The co. also attempted to start a CRC contracting business several years ago, to provide genetics testing for pharmaceutical clinical trials, also a bust.
Pcrutch, if I've left out any of the other major details of the co. please feel free to chime in.
Regards,
aj
AI
