Drone Aviation Holding Corp. (OTCMKTS:DRNE) Takes A Step Back

[[tagnumber 0]][[tagnumber 1]]The stock of Drone Aviation Holding Corp. (OTCMKTS:DRNE) managed to reach a price above the 50 cent per share mark in the beginning of March after a run that started mid–February. Since then, however, DRNE has had a rough time and the ticker had lost a little over 50% of its value by the start of May.[[tagnumber 2]] [[tagnumber 0]] [[tagnumber 2]] [[tagnumber 0]]Recently, it has tried to recover, but this has proved no easy task. One thing that can be to blame and comes quickly to mind is the company’s financials. They are not that bad compared to other OTC companies, but [[tagnumber 6]]DRNE[[tagnumber 7]] doesn’t have anything impressive to offer. Back on March 31, 2015 the company had:[[tagnumber 2]] [[tagnumber 0]] [[tagnumber 2]] [[tagnumber 11]] [[tagnumber 12]]cash: $793 thousand[[tagnumber 13]] [[tagnumber 12]]current assets:$ 917 thousand[[tagnumber 13]] [[tagnumber 12]]current liabilities: $238 thousand[[tagnumber 13]] [[tagnumber 12]]revenues: $15 thousand[[tagnumber 13]] [[tagnumber 12]]net loss: $934 thousand[[tagnumber 13]] [[tagnumber 22]] [[tagnumber 0]] [[tagnumber 2]] [[tagnumber 0]]Still, despite the not–so–good financials [[tagnumber 6]]DRNE[[tagnumber 7]] can really hype things up. It showed us just that in Wednesday when the company announced a contract with BAE Systems, a contractor with the U.S. government for enhancing and supporting two WASP aerostat systems for the Department of Defense in an upcoming exercise.[[tagnumber 2]] [[tagnumber 0]] [[tagnumber 2]] [[tagnumber 0]]This managed to push the ticker 11.21% in the “[[tagnumber 32]]right direction[[tagnumber 33]]” and the volumes also increased, generating $1.02 million in daily trade value. Unfortunately, the hype didn’t last long and [[tagnumber 6]]DRNE[[tagnumber 7]] slipped 6.98% in yesterday’s session, closing the day at the $0.30 per share mark, while the volume remained well below the average.[[tagnumber 2]] [[tagnumber 0]] [[tagnumber 2]] [[tagnumber 0]]Let’s not forget that, after all, [[tagnumber 6]]DRNE[[tagnumber 7]] is no stranger to dilution, a thing which we discussed in our previous article. Furthermore, a pump email distributed by RedChip Companies, Inc. who are compensated 500 thousand restricted shares of [[tagnumber 6]]DRNE[[tagnumber 7]] stock informed us that the company has closed a $1 million preferred stock offering in the beginning of this month.[[tagnumber 2]] [[tagnumber 0]] [[tagnumber 2]] [[tagnumber 0]]Considering all these facts you should thread carefully, do your due diligence and weigh out the risks before putting any money on the line.[[tagnumber 2]]