Aqua Power Systems Inc. (OTCBB:APSI) Crashes Horribly
Aqua Power Systems Inc. (OTCBB:APSI) managed to lose 17.65% of its market value after just 33 trades on Friday.
To say that this particular ticker has not seen much action in recent months would be something of an understatement. And, truth be told, there is a good reason for the lack of investor interest. Put quite simply – it looks like the company has nothing going for it.
Why would we say that? Well, for starters, APSI was incorporated in 2010. Since then, it has advanced so fast and so far, that as of March 31, 2015, it had:
- Cash – $1.5 thousand
- Total Current Assets – $270 thousand
- Total Liabilities – $366 thousand
- Annual Revenue – $2 thousand
- Annual Net Loss – $103 thousand
And if you think this picture of appalling idleness can’t get any bleaker, think again. Some digging reveals the fact that $266 thousand of APSI‘s current assets are in the form of loans receivable from a “related party”.
What’s even worse, at that point in time the company had $247 thousand worth of convertible note payable, and most of said debt converted at exactly $0.20 per share.
Conversion of debt by a noteholder and dumping of the resulting shares on the market may be the reason why the ticker plummeted on Friday. Another likely scenario is that a regular shareholder got tired of holding onto illiquid stock and decided to cut and run.
The bottom line is that APSI took a heavy blow, and it doesn’t look like it has anything to help it recover any time soon.
