LifeLogger Technologies Corp. (OTCMKTS:LOGG) Surges at the Start of the Week
Yesterday the stock of LifeLogger Technologies Corp. (OTCMKTS:LOGG) had a rather turbulent session. It opened with a gap up at $0.589, immediately surged to its high of the day of $0.75 and equally as fast fell back down. A couple of hours before the end of the session it once again found itself at $0.74 but failed to hold those prices for a second time and closed at $0.64 for a gain of nearly 12%. Despite the inconsistent performance the stock never fell below its opening price and it seems that the positive momentum is holding for now.
Last month the company enjoyed increased media exposure with two articles talking about its product being published by the Street Authority and Venture Capital Log. Both of them praised the potential of LOGG’s wearable camera and even compared the company to GoPro Inc. (NASDAQ:GPRO). Investors certainly got excited about the possibility of LifeLogger mirroring even a portion of the success of the NASDAQ giant. Before you get too excited though there are some important issues that need to be taken into account.
First of all, at the moment not only are LOGG nowhere near having a completed product but they don’t even have a working prototype. Not to mention that apparently the company has run into some troubles. In the report for the second quarter of the year they expected to have 100 prototypes available in November while the recently filed report for the third quarter stated that they expect to have a prototype available in December. Another rather serious discrepancy between the two reports concerns the state of the software – the Q2 report said that is was in the beta stage but the Q3 report now states that it is still in the alpha stage of the development.
And as long as we are talking about financial reports let’s see what LOGG’s financial results were at the end of September:
• $248 thousand cash
• $266 thousand total current assets
• $84 thousand total current liabilities
• $92 thousand revenue
• $18 thousand net loss
The company is able to generate revenues by offering consulting services while the net loss is kept at manageable levels. Back in September the cash reserves received a considerable boost when LOGG sold 417 thousand shares at $0.60 for proceeds of $250 thousand. The problem is that for the next twelve months they expect their expenses to reach $917 thousand. If this is indeed the case the company will need to look for more outside sources of capital. In our previous articles we already warned you that back in 2013 31 million shares priced at just $0.001 were sold. Having in mind the limited trading volumes it is more than likely that the people who bought those shares still own the majority of them. If even a portion of that amount is dumped on the market the consequences could be dire.
LOGG are going to attend the Consumer Electronics Show (CES) in January 2015 where they should present their wearable camera. During the time leading to the event interest in their stock should remain high. Before you establish a position in the stock though be sure to do your own due diligence.
