PositiveID Corp (OTCMKTS:PSID)’s Recovery Didn’t Last

PositiveID Corp (OTCMKTS:PSID) manged to spike above $0.03 a couple of days ago, but by the time the final bell for last week’s trading rang, it had once more fallen below that threshold.

This latest slide brought the ticker 12.03% down the charts, and by the look of PSID‘s situation, this may not be the lowest point that the ticker will reach in the near future. Why?

Because even though PSID talks big, its achievements to date can be called mediocre at best – and that’s not just an empty claim. The company’s latest financial report, for Q1 2015, looked positively terrible:

  • Cash – $598 thousand
  • current assets – $608 thousand
  • current liabilities – $9.7 million
  • quarterly revenues – $131 thousand
  • net loss – $3.8 million

And, as bad as these numbers are, there is something that outdoes them and makes the picture even more bleak – and that something is PSID‘s share structure.

Let’s just say that 103 out of the 262 million shares that PSID currently has outstanding have been issued between November 10, 2014 and May 11, 2015 as a result of toxic debt conversions.

The average price of said conversions can be calculated as being as low as $0.013 – and there is no evidence that the rain of toxic dilution is near an end. In fact, it there is a reasonably high probability that it is going on right now.

Which is probably the reason why the ticker fails to retain any gains, even if it does manage to capture the investors’ attention and rise up for a while.

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