Brainybrawn Inc (OTCMKTS:BRNW) Makes a Deep Dive
Brainybrawn Inc (OTCMKTS:BRNW) is a company that develops web applications and provides solutions in sectors, such as healthcare, education and retail. Brainybrawn is located in Allentown, Pennsylvania, USA, while its subsidiary, Sanvi Infotech Private Limited (“SANVI”), is set in India.
The company’s fiscal year end is on March 31. There is no quarterly report for the year 2014, and BRNW has filed a Notification of Late Filing, in regards to their annual report. The last quarterly report the company has issued, covers the last quarter of 2013, ended December 31. In that last report, BRNW listed:
- cash – $4482
- current assets – $55 thousand
- current liabilities – $822 thousand
- revenue – $29 thousand
- net loss – $49 thousand
From the Balance sheet for the years ended March 31, 2013 and March 31, 2012, we discover that on December 31, 2013, the company had 100 million authorized shares, and 60 million outstanding shares. But on March 07, 2014, BRNW decided to raise the limit of its authorized common stock to 500 million. After that, sometime in March, 2014, the company issued 120 million shares of common stock to Brainybrawn’s CEO and Director, Naresh Belwal, to write off $50 thousand “in past due and unpaid compensation owed”. That makes the price per share $0.0004.
Prior to May, judging by the lack of active trading, noone really cared about BRNW. Things changed in the second half of May. There doesn’t seem to be a particularly good reason for the sudden rise or the following crash.
Yesterday’s session delivered another severe blow to BRNW‘s price, decreasing it by almost 40%. It opened at $0.0405, but by the end of the session, it was $0.0235. That day the company managed to rack up its biggest volume yet – 8.6 million.
P
ress releases are also scarce. In a press release from June 18, the company states that their innovative product – the Sanvi Student Admission Management Application, which they called Sanvi SAMA, has been installed in a “prestigious” university in India. What’s alarming here, is that the university’s name has not been mentioned anywhere, which makes fact checking hard, if not impossible.
In their most recent press release, from July 01, BRNW announced the release of their SANVI Retail 1.1 on the Indian retail market. What’s interesting is that on the company’s website, the product’s name is listed as SANVI 9.1 Retail. The press release also makes grand projections about the profit growth. It is highly uncertain whether these projections will be met, given Brainybrawn’s trading record.
Information Architects Corporation (OTCMKTS:IACH) and CYNK Technology Corp (OTCMKTS:CYNK) have also made tremendous drops in their prices. IACH went down by 32% and CYNK by 51%. It remains to be seen whether they will be able to recover. Until then, we advise everyone to do their due diligence before deciding to invest.
