Decision Diagnostics Corp. (OTCMKTS:DECN) Gets A Break
Decision Diagnostics Corp. (OTCMKTS:DECN) finally managed to break its red streak yesterday – but will this newest jump last?
While there is no real way to be absolutely certain about where a volatile OTC Markets ticker may head in the future, investors need to seriously consider the possibility that DECN‘s latest bounce may end up being of the deceased feline variety.
The reasons for that should be obvious by now – DECN‘s financials outline it as a struggling mediocre OTC markets pinksheets company at best:
- Cash – $627 thousand
- Total current assets – $2.3 million
- Total current liabilities – $1.8 million
- Revenue – $514 thousand
- Net operating loss – $2.4 million
What’s worse is the fact that the lack of actual proof of results is not even the biggest immediate threat to investor value that said filing reveals. No, that would be dilution.
Let’s start with the fact that, as per the company’s filings, the last quarter of 2015 has seen $597 thousand worth of debt turn into 3.3 million shares of DECN common stock. February 2015 has seen another $366 thousand of debt had been converted into 2.58 million shares. This means that, as far as we know, an aggregate of about 6 million shares has been issued at average prices varying between $0.14 and $0.18 in the last 7 months alone.
That’s not an encouraging statistic. And you know what else is not encouraging? The realization that an entity called Alpha Capital Anstalt currently owns 6.4 million shares of DECN‘s common stock, which equals 9.9% of the company’s total shares outstanding. Which means that the company’s shares outstanding must be approximately 64 million. That’s approximately 10 million shares than it had as of September 30, 2015.
And while on the subject of toxic conversions, one would be remiss to omit mentioning that there were 687 thousand shares of Series “E” convertible stock issued and outstanding last time the company reported. Each and every one of those can be turned into 14 regular shares of DECN common stock. Approximately 100 million of those shares were issued during the fiscal 2015, at prices varying between $0.19 to $0.25 a pop.
None of these facts bode well for DECN‘s chances of continuing its ascent – and investors should really take note of that.
