PositiveID Corp. (OTCMKTS:PSID) Slumps Further Down
PositiveID Corp. (OTCMKTS:PSID) lost another 7.81% of its market value yesterday, in spite of the fact that a meager $158 thousand worth of PSID stock changed hands that day.
This crash should come as anything but a surprise for anyone that’s kept an eye on PSID lately. To put it plainly – the company’s dubious nature is obvious with even a bit of superficial due diligence.
The first of the glaring red flags can be found in the dismal numbers in the company’s latest financial report:
- Cash – $598 thousand
- Current assets – $608 thousand
- Current liabilities – $9.7 million
- Quarterly revenues – $131 thousand
- Net loss – $3.8 million
But the weak financial standing isn’t this company’s only fault – no, not by a long shot. Dilution is.
A quick check reveals that, as of May 11, 2015 PSID had 262 million shares outstanding.
Just six months earlier, on November 10, 2014, PSID had 159 million shares outstanding.
That’s a frightful amount of dilution, to be sure – and most of these shares were issued as a result of conversions of promissory notes at an average price of of about $0.013. But what’s even worse is the fact that PSID has a lot more outstanding debt.
Moreover, it has increased its authorized shares from 970 million to 1.97 BILLION, which is a clear sign that even more shares are to hit the market. And if that wasn’t horrible enough – PSID has been the target of multiple paid pump campaigns while all of this dilution was taking place.
Investors should really take notice of all of these obvious hints and warnings of the danger associated with PSID and act accordingly.
