Implant Sciences Corp. (OTCMKTS:IMSC) Crashes After Quarterly Report

7IMSCchart.pngThe quarterly report published by Implant Sciences Corp. (OTCMKTS:IMSC) on November 14 caused their stock to plummet and brought it well below the $1 mark. Since then IMSC has been unable to return to its previous price ranges and shareholders are starting to lose their confidence in the company. On Friday the spreading negative sentiment resulted in a 13% drop and a close at $0.74, just 2 cents above the 52-week low of $0.72.

The reason for the fall was much the same- IMSC filed the next quarterly report. And judging by the stock performance it is quite obvious that the numbers it contained were rather disappointing. The company finished the calendar 2013 with the following results:

  • $271 thousand cash
  • $4, 3 million total current assets
  • $57 million total current liabilities
  • $3.1 million revenues
  • $4.3 million net loss

Although still quite respectable the 3.1 million in revenues actually represent a 53% drop when compared to the same period the previous year. And despite the millions in sales IMSC‘s inability to turn a profit has resulted in a massive accumulated deficit of $157 million while the working capital deficit amounts to $53 million. 

This month the company has announced several orders for their handheld explosives traces detectors. The last one was revealed on Thursday for the total amount of $1.5 million. The company expects the first $1 million worth of devices to be delivered before the end of June this year. Around at the same time they should also finish acquiring all the necessary approvals and qualifications for a possible deal with the Transportation Security Administration (TSA). 

Meanwhile their debt is rising higher and higher. As of February 4 they owed DMRJ Group LLC close to $43 million in three convertible notes, one promissory note and a revolving line of credit. The whole sum was due at the end of March but they managed to negotiate that date to be moved to September 30. 

As we said IMSC have a promising product and are moving forward with their business plan but the serious concerns around them demand extensive research before jumping in. 

4PHOTchart2.pngOn Friday the performance of all the various marijuana pennystocks received another huge boost when the the Treasury and Justice Departments issued a new set of guidelines aimed at easing the relationship between banks and legal marijuana business. Both departments said that banks will avoid federal law prosecution when dealing with state-regulated marijuana companies. As a result Terra Tech Corp. (OTCMKTS:TRTC) surged by 16% at the end of the week and returned back to $0.54 per share. At the same time the stock of Growlife, Inc. (OTCBB:PHOT) gained 8.5% arriving at $0.38.

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