Another Cashless Pump, This Time on Intelligent Living Corp. [PINK:ILVC]

Intelligent Living Corp. [PINK:ILVC] is put on high alert today by Penny Stock Beats, which is why trading with this stock could prove more intense than usual. However, heavier trading does not necessarily correlate to successful trading, especially when the penny stock involved seems utterly incapable of inspiring confidence among us.

While IVLC is now a regular SEC filer, this wasn’t always the case (see the two cease trade orders here). Nevertheless, do not bother looking for recent official press releases because there are none. As far as the company’s website is concerned, there is something terribly wrong with it at the moment. On the other hand, ILVC managers have been dilligent enough to file one 10-Q report after another, so let’s take a look at the financials.

As it seems, the $26 thousand of cash formed the backbone of ILVC‘s total assets as of Nov. 30, 2012. Needless to say, this amount is by no means sufficient enough to cover the company’s short-term debt in excess of $1 million. Not to mention the additional $800 thousand of long-term debt.If this were not enough, ILVC continues to incur mounting losses on a quarterly basis. In the aggregate, ILVC has lost a total of $15,000,000 since inception.

The figures mentioned above flatly contradict to management’s firm beliefs that ILVC‘s green business model is bound to succeed. Indeed, the green building sector could potentially provide a lot of business opportunities and the same goes for offering automation technologies for residential homes. Yet, this business does not appear to have done ILVC any good so far.

Considering ILVC‘s lack of progress and its huge authorized stock of 800 million, we could safely assume that the next logical step by the management would be opting for equity financing since barely 12 million shares have been issued so far. As far as debt financing is concerned, this is hardly a feasible option due to the company’s minuscule cash flows. New issue of stock will in turn lead to massive dilution, though.

No matter what course the company’s managers decide to take in due course, it will hardly bring any benefits to prospective shareholders and Penny Stock Beats’s free alert does nothing to make them buy the stock. The promoters know it very weel and haven’t even bothered to draw up some decent advertising content to tout ILVC.