Replies to post #71000 on Zerify Inc (ZRFY)

[cybear_mn]

From Jan. 2016

Strikeforce Technologies Inc (OTCMKTS:SFOR) Stuck in Neutral

About an hour before the end of last Wednesday's trading session, they published an 8-K form announcing that their patent infringement lawsuit against Microsoft Corporation (NASDAQ:MSFT) has resulted in a settlement agreement. As a part of it, SFOR will receive an undisclosed sum of money.

Although the news wasn't reported in an official press release, it swept through the investment community like wildfire. On Wednesday, in a matter of just over an hour, SFOR managed to gain no less than 743% and after smashing its way out of the triple-zero range, it reached just under $0.006 per share. On the very next day, however, it burned through almost half of its value and it stopped at $0.0032. Many people believed that the crash will be followed by a substantial bounce, but it wasn't to be. SFOR did reach a couple of intraday peaks on Friday, but it failed to stay aloft and it closed the week with no gains whatsoever.

So, the news is good and yet, investors are being careful. Why?

Well, the latest 10-Q doesn't really inspire any confidence. Here's what the figures look like:

cash: $60 thousand
current assets: $93 thousand
current liabilities: $11.8 million
quarterly revenues: $76 thousand
quarterly net loss: $390 thousand

Of course, the money coming from the Microsoft settlement might be able to tidy up the balance sheet to some extent, but since the amount remains undisclosed, the effects on SFOR's state of affairs can only be speculated upon.

The company's financial woes, however, are nothing compared to what has happened to the share structure over the last year or so. SFOR went through no less than three massive reverse splits in a matter of just over sixteen months in an attempt to stop the dilution, but unfortunately, this has turned out to be far from enough.

In fact, between November 11 and January 22, the number of issued and outstanding shares grew from just under 10.5 million all the way to 50.4 million. The horrific dilution is mainly due to note holders converting debt into shares at discounts ranging from 40% to 60%, and the sell-off at the end of last week suggests that they are not willing to stick around and see what the Microsoft settlement brings. Whether you should do the opposite is for you to decide.