Adaptive Medias Inc. (OTCMKTS:ADTM) Crashes After Reporting

Adaptive Medias Inc. (OTCMKTS:ADTM) had a horrible 69% crash yesterday, as a direct result of its latest financial report finally hitting the web. 

The reason for the investors’ horrified reaction to the report quickly becomes obvious once you take the time to look at the numbers in it. Said numbers are horrible indeed:

  • Cash – $7 HUNDRED
  • Total Current Assets – $994 thousand
  • Current Liabilities – $5.3 MILLION
  • Revenue – $173 thousand
  • Net loss – $5.4 million

These numbers sort of speak for themselves – and the tale they spin is less than encouraging.

Still, what’s worse is that that’s not even when the red flags in the report end. No, not by a long shot.

A quick check reveals that the company’s share structure has taken a serious hit since it last reported as well:

  • As of March 26, 2015, there were 14 million shares of ADTM common stock issued and outstanding
  • As of May 20, 2016, there were 33 million shares of ADTM common stock issued and outstanding

That’s right, 19 million of ADTMs 33 million shares of common stock currently outstanding came into existence as a result of conversions of toxic debt in the last two months or so. That fact is horrifying enough in and of itself, even before you notice that most of the company’s debt converts at a rate of “60% of the lowest trading price of the Company’s common stock for the previous 25 trading days prior to the conversion date”.

Long story short – there are plenty of very good reasons why ADTM‘s market cap is currently below the million mark. Investors should note them all and act accordingly.

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