Virtual Piggy, Inc. (OTCBB:VPIG) Takes Another Step Down the Charts

VPIG_chart.pngThe previous two months have been mostly kind towards Virtual Piggy, Inc. (OTCBB:VPIG). The company’s stock price practically doubled from early April to late May, going from $1.60 to $3.20. May 28 marked the first of a series of sneezes that sent the price on a red streak, which more or less continued into yesterday’s session, when VPIG closed 6% down.

Virtual Piggy is a business offering online payment solutions for children and teenagers, controlled and administrated by their parents. The company is still developing its business and has not really rolled out a successful revenue generation model. VPIG‘s plans for 2013 development include consumer acquisitions and expansion, with plans to maximize revenues in 2014.

Despite that, the company does have a respectable amount of cash on hand and modest current liabilities. Here is what VPIG published as financial information as of March 2013, in their Q1 report:

  • $5.3 million in cash
  • $853 thousand in current liabilities
  • $2.6 million in quarterly net loss

While the company has a good amount of cash on hand, losses piling up over time have led to an accumulated deficit of $22 million. The company would do well to roll out a revenue generating model as soon as possible, as even quarterly loss is in the millions.

Despite the fact that it was trading much higher at the time, on May 28 VPIG issued 2.5 million shares at $1.80 per share to accredited investors. In the month of May the company issued more shares, for total cash proceeds of $1.3 million, with share prices of the newly issued shares ranging from $0.04 to $0.50. Those cheap shares were issued over “previously outstanding options and warrants”.

Today VPIG announced its new partnership with Live Gamer, an enterprise offering microtransaction models and services for the gaming industry. Live Gamer’s services are employed by Facebook and were formerly used by Sony Entertainment for their EverQuest 2 franchise. Live Gamer discontinued their work with Sony by mutual consent in 2011.

81BMSN_chart.pngIntegral Technologies, Inc. (OTCMKTS:ITKG) generated dollar volume comparable to that of VPIG, but dipped much further, closing 25% in the red. Despite their much lower share price, Bio Matrix Scientific Group, Inc. (OTCMKTS:BMSN) shares that changed hands yesterday were worth almost as much, at 148 million BMSN shares traded.

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