Medbox has little revenues and absolutely HUGE losses.
One significant part of MDBX losses, and one that will not go away anytime soon, is the legal expenses to fight off many lawsuits, including several shareholders lawsuits that are likely to get consolidated together, and a almost-certain SEC indictment.
The lawsuits not only will be a huge financial burden for Medbox for the next couple of years, but are also extremely likely to end up with a terrible fine. Why ? Because Medbox is guilty as sin.
Just look at the Restatement, excuse me, the multiple restatements where all of Medbox posted revenues vanished into thin air. The ex-CEO PVSP at the time claimed it was just an accounting difference of opinion, maybe some revenues had been counted a quarter early.
But you can have what, $5 million of revenue vanish, never to return, and ascribe that to overeager accounting.
The company, or at least its stock price, would be doomed by the SEC lawsuit and the shareholders lawsuit alone,
but then there are the huge amounts of convertible debt on the books. The conversions are for all intent and purposes floorless, because when the lenders complain they would start losing money, MedBox renegociates the debt at a lower price and a bigger discount.
The triple whammy,
1) very little revenues, huge losses
2) huge ongoing legal expenses, with a colossal fine when Medbox finally loses
3) lots and lots of toxic financing
leave very little hope for Medbox or for its share price to stabilize at any level.
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