Imageware Systems Inc (OTCMKTS:IWSY) Sinks Even Deeper

After dropping to 52-week lows on the last day of October, Imageware Systems Inc (OTCMKTS:IWSY) seemed poised for recovery, bouncing off its new lows with a strong session in November, maintaining a heavy daily volume. However, the reversal was momentary and IWSY found itself wedged into a fresh new 52-week low by the closing bell on Friday.

A blitz of four red sessions culminated with Friday’s double-digit drop to $1.15 per share, making for a cumulative drop of 21%. On Wednesday IWSY announced a new partnership with one CDW Corporation. CDW will provide its own customers with IWSY‘s biometric authentication services for mobile devices and in the cloud.

The news had little to no impact on the stock’s price, simply slowing down the 6% drop from the previous session and giving IWSY a bit of pause before Friday’s 11.5% slide. The company has been keeping very quiet in terms of PR for months prior to the Wednesday release and all recent filings in IWSY‘s feed are insider Form 4 submissions.

While investors are waiting for the company’s due Q3 report that should go online within a week, they have the previous one to flip through and it’s not a particularly impressive sight. As of June 2015 IWSY had the following on its balance sheet:

  • $6.4 million in cash and equivalents
  • $1.8 million in current liabilities
  • $1.69 million in Q2 revenues
  • $1.76 million in Q2 net loss

While IWSY has access to sufficient cash supplied with another $3.1 million line of credit readily available if needed, it’s also still losing seven-digit sums per quarter, with a total net loss for Jan – Jun 2015 of $4 million.

With a very short stretch of time ahead of the report and IWSY sunk to new 52-week lows, anything is possible once the filing goes up.

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