Drone Aviation Holding Corp. (OTCMKTS:DRNE) Slides Back Down
Yesterday Drone Aviation Holding Corp. (OTCMKTS:DRNE) continued its slide and closed another 13% down, stopping at $0.295 by the closing bell. The company now sits a good 70% below the price levels it enjoyed in early September, when share volume picked up dramatically.
The company was launched into massive volume trading in early September with the assistance of a Seeking Alpha article and a couple of press releases. Those who missed it back then may want to know that the piece in question singled out DRNE as the ‘best drone investment’. It seems the author must have been a little off the mark, considering DRNE dropped some 70% from the date the Seeking Alpha article came out.
The company produces tethered aerostats and its Blimp in a Box system is used by the DoD. The last couple of press releases coming from DRNE informed of supply orders for system sustainment equipment for the blimp as well as ‘aerial and ground based equipment’ being dispatched to Eglin AF base. This does seem like good news but it remains to be seen whether those orders will translate into significant revenues.
The company last reported the following numbers:
- $1.7 million in cash
- $2.8 million in current liabilities
- $124 thousand in Q2 revenues
- $391 thousand in Q2 net loss
The disappointing performance of the stock over the past couple of months does not place DRNE in a particularly favorable position. The company’s next quarterly report is due next week and it will show if and how the share structure has changed and whether there was any improvement in DRNE‘s revenue.
