Worlds Inc (OTCBB:WDDD) With A Green Close
It wasn’t that long ago when Worlds Inc (OTCBB:WDDD) were actually generating revenues. They had a product, it was an online 3-D chat service and the money was coming mainly through VIP subscriptions on the website that hosted the platform.
Then, for reasons that are not very well explained, WDDD decided to spin off the operations and assets related to the chat service and continued as a company that intents on making money through licensing software and the enforcement of their patents.
The 3-D chat is not gone, however. When WDDD decided that they no longer want to develop the Worlds Ultimate 3-D Chat service, they transferred the subsidiary to another publicly traded penny stock called Worlds Online Inc. (OTCBB:WORX). WORX are regular in their filings with the SEC and we can see that during the first quarter of 2013 the chat platform has generated a total of $210 which is exactly $210 more than what WDDD have managed to generate ever since they discontinued developing Worlds Ultimate 3-D Chat.
That said, the revenues are still probably going in the same place. Namely, the rather good-looking masonry house that you see on the right which acts as the corporate headquarters of both WDDD and WORX. Not surprisingly, the people (or rather, the person) standing behind the whole thing is one and the same – Mr. Thomas Kidrin. He acts as the CEO of both WDDD and WORX and has two separate employment agreements with the two companies receiving as much as $175 thousand in annual salary as well as monthly car allowance of $500 from each of his ventures.
With all these things in mind, investing in WDDD who, despite all odds, closed yesterday’s session in the green, is becoming rather difficult and there are plenty of other reasons for this, as well. The first of which is the financials. Here they are once again:
- cash on hand: $248 thousand
- current assets: $2.4 million
- current liabilities: $5.8 million
- no revenues since the second half of 2011
- quarterly net loss: $331 thousand
Another reason for our skepticism towards WDDD is the fact that according to the 10-Q the company consists of one single full time employee and the fact that the revenues are missing suggests that there are not that many people interested in WDDD‘s licenses and patents. Or maybe there are, but they don’t want to pay for them.
As we mentioned in our previous articles, WDDD commenced a legal proceedings against Activision Blizzard, Inc. (NASDAQ:ATVI) recently and the news about it caused quite a stir among investors, which pushed the ticker in the right direction. Last week, however, the Court announced that the hearing must be postponed by a couple of months and that’s quite a lot of time in Pennyland as you probably know. Predictably the price took a tumble, and you can imagine what the crash would be if for some reason WDDD lose the case.
On the whole, WDDD reminds us a lot of Northumberland Resources Inc (OTCMKTS:NHUR) and if you have had a look at our articles, you will know that just like WDDD, the people who stand behind NHUR are also connected with a few other shady penny stocks like Tiger Oil and Energy Inc (OTCMKTS:TGRO), Black Hawk Exploration Inc (OTCMKTS:BHWX) and Universal Potash (OTCMKTS:UPCO) among others. NHUR‘s stock was lifted off the ground because of a paid pump, while WDDD‘s movement was caused by the news of the legal proceedings against Activision, but having in mind all the facts above, we’re struggling to see how the two runs will end differently. That’s why doing a lot of due diligence is absolutely crucial before making any rash decisions that might prove costly in the long run.