EQ LABS INC (OTCMKTS:EQLB) Up on Fresh PR
Yesterday’s session was no doubt a pleasant surprise for EQ Labs Inc (OTCMKTS:EQLB) shareholders. The company shot up a massive 166%, following the release of a morning press announcement. By the end of the session EQLB managed to become heavily overbought, as over 94 million shares changed hands.
The press release that stirred things up announced that EQLB finalized a “partnership” with famous music producer and performer Timothy Mosley, better known by his stage alias – Timbaland. The release never mentions a single detail about the deal and gives no specifics on the nature of the partnership, but the mention of Timbaland’s name alone was enough to send traders in a buying frenzy.
A quote from Mr. Mosley himself alludes to him “introducing” EQLB‘s ‘3 in 1 Last Shot’ energy drink to the North American market, whatever that may mean. Outside of the press release, there is also a photo of Timbaland holding a Last Shot can in a poorly lit room. How Mr. Mosley will be compensated for his celebrity-level endorsement of EQLB‘s product is not known.
EQLB‘s latest quarterly report inspires a lot less confidence in future success than yesterday’s upbeat PR. Here is a brief look at the company’s balance sheet as of the end of June 2015:
- $2 thousand in cash
- $42 thousand in current liabilities
- $125 thousand in quarterly revenues
- $62 thousand in net income
The company managed to actually record net income because the cost of the $125 thousand revenues was a total of $240. This was possible because the revenue generated came from “sale of obsolete inventory”. The report states that EQLB does not have an established source of revenue to cover its operating costs.
Investors may also want to know that EQLB diluted its common stock considerably over its last reported quarter. The company had 578 million outstanding shares as of March 2015. By June this figure grew to 790 million. The combination of the balance sheet’s numbers and the dilution over Q2 may be the reason why EQLB was lolling about in triple zeroes shortly prior to the press release in question.
