Oxysure Systems Inc (OTCMKTS:OXYS) is Sick of Being a Sub-Dollar Stock
Oxysure Systems Inc (OTCMKTS:OXYS)’s performance since the beginning of the month has been rather impressive. The total gains amount to 42% and the increasing volumes suggest that the stock is attracting more and more attention which was quite a big problem a few weeks ago. During yesterday’s session alone, OXYS managed to add an impressive 23% and it even briefly broke through the $1 per share barrier for the first time since February 2013. Although it later slipped and closed the day at $0.95, it seems determined to exit the sub-dollar levels as soon as possible. By the looks of things, quite a lot of people are excited about OXYS and we should note that they have a few reasons to feel that way.
Recently, OXYS‘ management team announced a merger between their company and an entity called Estill Medical Technologies and during a conference call, they said that according to their estimates, the deal will help them register revenues of over $10 million for the fiscal 2015. That’s quite a figure, but we should note that even without Estill on board, OXYS is not doing too badly. Here’s what the financial statement looked like at the end of the third quarter:
- cash: $8,654
- current assets: $1.3 million
- current liabilities: $1 million
- quarterly revenues: $818 thousand
- quarterly net loss: $462 thousand
As you can see, the 10-Q is not perfect. The cash reserves are laughable and the company is still working at a loss. Even so, we can’t overlook the fact that OXYS registered a 50% jump in revenues on a year-over-year basis while still keeping the liabilities in check. Hopefully, with Estill’s Thermal Angel as a part of their portfolio and with the new military connections, things will be even brighter in the future.
Some analysts are also looking into the stock which, theoretically speaking, should mean that liquidity won’t be a problem in the future. And since we mentioned the stock, we should probably note that OXYS‘ management team deserve a pat on the back for protecting their shareholders from dilution.
Once you take a look through the SEC filings you’ll see that unlike many other OTC companies, OXYS has refrained itself from issuing vast quantities of stock. Currently, the O/S count stands at just under 27 million which means that the market cap at yesterday’s close amounts to less than $25 million. But how long will they manage to keep the dilution at bay?
We’re about to find out. We do know, however, that during the first nine months of 2014, OXYS issued a few convertible notes. They managed to repay some of them with cash, but on September 30, there was still some debt outstanding which can be turned into common stock at a 38% discount.
So, the company seems to be moving forward and, at least for the time being, the stock is following suit. That said, an investment is never risk-free which is why, considering all the dangers carefully before putting any money on the line is absolutely essential.
