LaserLock Technologies, Inc. (OTC:LLTI) Starts a Romp in 2013
Among the stocks that had a wild run in 2013 is LaserLock Technologies, Inc. (OTC:LLTI), a ticker that in the past month marked record after record in price and daily volumes. The company, offering laser authentication technologies, is now making a correction, losing more than 20% on Wednesday, to $0.274, although on better days LLTI set records at 50 cents.
LaserLock is currently re-launching its site, which now only gives limited information. To create and market its laser reading devices, LLTI has the following financial strengths and weaknesses:
- $63,833 cash
- $212,619 current assets
- $2.6 million current liabilities
- $3,289 revenues
- $155,343 net loss, more than $11 million net loss accumulated since inception
Currently, we are not registering a paid promotion for this ticker, and there were no pumps in the past, which is easily seen in the low activity and flat price over the years. However, the company issued a series of press releases in well-read news web sites. LLTI also posted an 8-K form stating it issued a warrant for the sale of 33 million common shares at 3 cents, with an exercise price of 12 cents. Given that the price is double this, and has been higher, the subscription agreement may have worked already. The buyer is Texas-based company VeryfyMe, Inc. LLTI announced it would use the proceeds from the subscription sale for ordinary costs of business.
The newest business bid for the company is to create smartphone technology for authentication- but without using an actual laser devise outside the phone’s own camera. This means that LLTI will in fact be creating an app that could identify brands, security marks and even persons, but will not employ any proprietary hardware. And, as we know, the app market is overly supplied, each maker trying to gain
LLTI may be burdened by the unexpected effects of a stock warrant and dilution with 33 million potential shares added to the 145 million shares outstanding. So, it is best to estimate your own acceptable level of risk and preferable time horizon before joining a seemingly solid upward trend.
A similar ticker, Location Based Technologies, Inc. (OTC:LBAS) shows the risks for a small technology company struggling to become profitable. The stock easily doubles in price in a few days, only to fall back to its ordinary levels, wiping out all gains.