AXIOLOGIX INC (PINK:AXLX) Calling for Another Promotion

5AXLX.pngWhat can’t you do on the Internet: play games, socialize, meet the love of your life, listen to music, watch movies, read about penny stocks… The possibilities are literally endless. For the last couple of years one technology has exploded – Voice over IP (VoIP) and it has greatly influenced the way we communicate through the Net. AXIOLOGIX INC (PINK:AXLX) have taken notice and they have, for the last year or so, been developing in this particular field.

We’re not going into unnecessary details about what it is exactly that they’re offering and, unlike them, we will save you the complicated terms and abbreviation (partly because even we weren’t able to understand them). What we we did understand, though, is that with their services, a small or medium-sized business is supposed to save around a third of their communication costs. So far so good.

They are operating primarily through their subsidiary Axiocomm which they acquired in January 2012 and they are mightily optimistic about the future. Looking through their latest financial statement, however, we’re not ready to put our rose-tinted glasses just yet.

When Axiocomm were acquired they had a modest amount of money and quite a lot of liabilities. AXLX, however, were so inspired by the opportunities that they issued a total of 1,150,000,000 shares of common stock. This is just one among many instances when shareholders experienced dilution on a grand scale. To give you an example of how unpleasant an experience this is for them, we can tell you that over the course of the last eight months AXLX have issued at least 120 million shares to cover for debt and services. There are also $290 thousand worth of convertible notes that can be transformed into common stock at any given time and two additional notes on which AXLX have defaulted.

The result of all this is that the company is in some dire financial straits as the figures below suggest:

  • cash: $2,652
  • current assets: $656 thousand
  • current liabilities: $1.3 million
  • revenue (six months prior to November, 2012): $468 thousand
  • net loss (same period): $294 thousand
  • net loss since inception: $1 million

AXLX_logo.jpgOn a brighter note, the latest financial statement does look better that the ones before it, and if you are to believe their website, their CEO has had a lot of experience in the business sector and generally knows what he’s doing.

FLTT.pngWe did a quick check and we can confirm that Mr. Vincent Browne is the CEO of another company dealing with VoIP technology. It’s called Flint Telecom Group, Inc. and it’s traded under the ticker symbol PINK:FLTT. AXLX tell us that, with Mr. Browne at the helm, FLTT reached a total of $34 million in revenue in 2010, which a quick check also confirms. What they don’t tell us is that when they achieved this remarkable result, FLTT ended up with a net loss totaling $28 million and, as per their latest financial statement, they had accumulated a deficit of over $60 million. They also keep quiet about the fact that some charges were filed against FLTT and Mr. Browne in particular for securities fraud as FLTT‘s own filings disclose. The result of all this is that FLTT‘s price has been going steadily down for quite a while, which is exactly what will happen to AXLX unless Mr. Browne and the people around him are able to turn a profit very soon.

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