Latitude 360 Inc (OTCMKTS:LATX) Trundles to New 52-Week Low

After shifting its heaviest share volume for the past year, Latitude 360 Inc (OTCMKTS:LATX) screeched down the charts in yesterday’s session to log its lowest close for the past 52 weeks. As the share price slid 21%, LATX sat at $0.027 per share by the bell.

All of 2015 has been rough for LATX but the real drama began in the summer, when the company started sliding down the charts in leaps and bounds. In the two and a half months between late July and yesterday the company had its share price steamrolled from around $0.50 per share all the way down to $0.027 yesterday – a staggering drop of over 90%.

LATX‘s balance sheet could provide some insight into why the company is struggling so hard on the charts. Here is what the latest report contained in terms of numbers:

• ZERO in cash
• $88 million in current liabilities
• $4.2 million in quarterly sales
• $4.3 million in quarterly net loss

This grim picture is further darkened by floorless convertibles with attached variable conversion features which are never explicitly detailed.

The situation is further compounded by the recent bad news the company published in an 8-K report dated Sep 2. LATX informed shareholders that the landlord under its lease agreement for Latitude 360 locations in Jacksonville, FL and Indianapolis, IN sent a letter “purporting” to terminate the agreement. LATX previously defaulted in its payments under the lease agreement and a forbearance agreement was signed, which stipulated for LATX to pay monthly $200,000 installments. Those installments stopped coming in June 2015 and now the landlord is looking for the money due. Whether the parties manage to find a solution outside of court is not yet known.

There is also the matter with two other parties seeking payment from LATX, which we mentioned in a previous article.