Baltia Air Lines Inc (OTCMKTS:BLTA) Crashes
Dealing with pennystocks is always risky and Baltia Air Lines Inc (OTCMKTS:BLTA) are not an exception. Yesterday the company crashed by nearly 15% and finished the session at $0.004 per share. The daily volume of 37 million shares surpassed the monthly average by close to four times. Will the negative momentum carry over to today’s trading though?
Well, in the fourth quarter of 2010 Baltia bought a Boeing 747 aircraft as part of their goal to become America’s newest airline. Almost five years later however the company is still not allowed to perform any flights. Back in October 2014 the company entered Phase III of the FAA Air Carrier Certification and they are still trying to complete it. Baltia made several attempts to pass the mini evacuation test of the certification program but so far they have not announced that they have been successful in doing so.
The fact that BLTA are still not allowed to start flying and thus generate any revenues means that their financial state has continued to deteriorate. Indeed, the financial report filed last month showed that as of June 30 the company had:
• ZERO cash
• $3009 total current assets
• $3.3 million total current liabilities
• $1.8 million net loss
The working capital deficit stands at over $3.3 million while the accumulated deficit has now moved above $115 million.
In addition to the depressing numbers on the balance sheet investors should also taken into account the crushing amount of dilution. As of December 2014 BLTA had approximately 5.5 BILLION outstanding shares. During the first six months of 2015 close to 900 million fresh shares got issued bringing the outstanding amount to 6.3 billion shares. Although there is no subsequent events section in the quarterly even more shares have been printed because as of July 29 BLTA had 6.6 BILLION outstanding shares. Earlier this year the company already increased it authorized amount to 6,986,000,000 shares but they are rapidly running out of room.
The red flags surrounding Baltia are far too serious to be taken lightly. If you are determined to trade the stock do your own due diligence before putting any money on the line.
