PositiveID Corp (OTCMKTS:PSID) Goes Through a Hiccup
After a strong finish last week, with PositiveID Corp (OTCMKTS:PSID) climbing just over 9%, the stock retreated in Monday’s session. The red session saw PSID close at $0.027 per share on even heavier volume of over 5.8 million shares changing hands yesterday.
PSID is a tech company, working in the field of biological detection, with a focus on real-time analysis and rapid results. PSID published its quarterly report in mid-August. Here is the brief version of the filing’s balance sheet:
- $672 thousand in cash
- $10.8 million in current liabilities
- $51 thousand in Q2 revenues
- $2.9 million in Q2 net loss
The company previously received sizable amounts of government grant money and did work for the Department of Defense. The report states that the company ‘expects’ to recognize as revenue $2.5 million under a Boeing agreement but doesn’t mention when it expects to do that.
The 10-Q was followed by an 8-K filing, which disclosed the signing of a new $2.4 million financing. The convertibles Dominion Capital LLC received against its money can be turned to shares without a fixed discount, but at a fixed rate, at $0.028 per share. The potential conversion of that sum into shares priced at under three cents apiece can result in rather a lot of new common stock being issued.
PSID is not exactly shy when it comes to dilution. Between early May and early August the company’s outstanding common shares went up 33%, from 262 to 350 million.
Thankfully, the stock pumps targeting PSID have stopped coming. The last couple of promoter emails for PSID were dated Aug 10, one of them disclosing a hefty 1,300,000 shares paid to advertise the stock, and paid directly by the company itself.
