CodeSmart Holdings Inc (OTCBB:ITEN) Still Sliding
We first wrote about CodeSmart Holdings Inc (OTCBB:ITEN) a week ago when the increased dollar volume and the erratic ticker behavior caught our attention. If you check out our article, you’ll see that ITEN has all the prerequisites for a pump campaign. Yet, even now, a week later, we have managed to intercept no efforts on artificially inflating the price. While this is definitely a good thing, the ticker seems to be on a steep downward slope and although there is the odd green session, it does little to comfort the people who are losing more and more money. What are the reasons for this?
Well, as we mentioned in our first coverage, ITEN changed their business a couple of months ago and they now plan to teach and train people how to use ICD-10 – a new, more complex type of coding system for physicians that will become compulsory in 2014. They have already developed their own CodeSmart University website, and if you are one of the people who want to learn how to use the brand new system, you can enroll with just a few clicks of the mouse.
This means that revenues are coming in and ITEN published their financial report for the second quarter of 2013 to prove it. According to the 10-Q, the tuition fees for the three months that ended on June 30 amount to around $24 thousand while the number for the first two quarters hovers around $31 thousand.
That’s not such a bad performance for a relatively new service provided by a newborn publicly traded company, but let’s not forget what they said about a month ago when they were presenting the new line of business to the general public. Back then, they projected that revenues for 2013 will reach $6 million which means that, if the calculations are correct, the second half of the year should result in exactly $5,968,243 in tuition fees earned by ITEN. Whether this will happen or not, remains to be seen but you would agree that it’s going to be a tall order.
Especially when the rest of the figures in the 10-Q aren’t particularly inspiring:
- cash: $261 thousand
- current assets: $264 thousand
- current liabilities: $1.2 million
- quarterly net loss: $1.9 million
- accumulated deficit: $2 million
Is this the reason for the fall that the ticker has been experiencing over the last couple of weeks, however?
Well, it could be, but the descend could also have something to do with the fact that, despite the new financial statement, traders seem to know very little about ITEN at the moment. The company hasn’t chosen the most popular business plan in Pennyland and the only way they can assure everyone that the stock is a viable investment option is to stick to the promises that they made when they went public.
In the meantime, some things like, for example, the fact that their New York HQ is available as a virtual office and the fact that quite a lot of discounted shares saw the light of day recently certainly raise some eyebrows.
For the moment, ITEN is displaying a pretty horrific stock performance and the losses seem so relentless, that the chart could soon resemble the one for Xumanii, Inc. f/k/a Medora Corp (OTCMKTS:XUII) even though, as we mentioned, there seem to be no paid pumps for ITEN. Make sure you conduct a thorough research and perform a lot of due diligence before making any investment decisions.
