I'm here, initial short position at 1.36, waiting to see how it tests 1.60 before I add onto my position.
The company has 50M O/S, 0 revenue (not 0 profit, 0 revenue they didn't take in a single dime), $8M listed as 'Goodwill', $550k in expenses and only $1.2M in cash. Having a market cap of $75M in its current state, or even $50M when it drops to $1.00 is still overvalued when the only 'contracts' are a free trial. I don't even care what they're product is or if its a copy of a free program, those financials are not good. God forbid they follow through with this gem from the 10Q:
"Although the Company obtained debt financing in July (See Note 5), the ability to continue as a going concern is dependent upon the Company generating profitable operations in the future and/or to obtain additional financing to meet its obligations and repay its liabilities arising from normal business operations when those come due. Management intends to finance operating costs over the next twelve months with existing cash on hand and additional funds from operations, and either equity sales or debt proceeds."
AKA, going forward odds are they'll need to obtain more financing, actually generate revenue (which they have not yet done) or use cash on hand, or more equity sales (share dilution).
And if you want to just completely ignore fundamentals and focus on the TA, the PPS has had TWO 50% drops over the past two months, Average Daily Share volume over the last 9 day period when a breakdown took the PPS from 2.04 - under a $1 was THREE times the Average Daily Share volume over the most recent 9 day period that has been melting the PPS up. Real moves require volume, absence of volume is a fakeout. Odds are high this will correct down to a more reasonable level under $1, not sustain a market cap over $50M.
AI
