FONU2 Inc (OTCMKTS:FONU) Sinks Like A Rock

[[tagnumber 0]][[tagnumber 1]]The second half of August didn’t go very well for the stock of FONU2 Inc (OTCMKTS:FONU) as we saw the ticker slide steeply down the charts crashing below the 1 cent per share mark by the final sessions of the month.[[tagnumber 2]] [[tagnumber 0]] [[tagnumber 2]] [[tagnumber 0]]As the company stock entered this month we saw increased volumes and a short–lived attempt at regaining some of the lost value. This, however, was quite hard when you consider the fundamentals behind [[tagnumber 6]]FONU.[[tagnumber 7]] Here is what the company had to offer in the financial report for the second quarter of the year.[[tagnumber 2]] [[tagnumber 0]] [[tagnumber 2]] [[tagnumber 11]] [[tagnumber 12]]cash: $178 thousand[[tagnumber 13]] [[tagnumber 12]]current assets: $191 thousand[[tagnumber 13]] [[tagnumber 12]]current liabilities: $4.07 million[[tagnumber 13]] [[tagnumber 12]]revenues: ZERO[[tagnumber 13]] [[tagnumber 12]]net loss: $1.89 million[[tagnumber 13]] [[tagnumber 22]] [[tagnumber 0]] [[tagnumber 2]] [[tagnumber 0]]This should be enough of a red flag, but it certainly isn’t the biggest one. [[tagnumber 6]]FONU[[tagnumber 7]] has suffered through quite a lot of dilution. The last time that we wrote about the company it had nearly 1 billion shares outstanding. After performing a 1 for 400 reverse split in the beginning of the year the company reduced the outstanding share count from 1.12 billion to around 2.8 million.[[tagnumber 2]] [[tagnumber 0]] [[tagnumber 2]] [[tagnumber 0]]Meanwhile, the issuance has not stopped, neither has it slowed down. After the implementation of the split on February 3 [[tagnumber 6]]FONU[[tagnumber 7]] has issued massive amounts of shares that have grown from the 2.8 million previously mentioned to a whopping 259,199,059 on September 3.[[tagnumber 2]] [[tagnumber 0]] [[tagnumber 2]] [[tagnumber 0]]Considering the fact that there are still a lot of convertible notes left we aren’t surprised that the stock’s performance is bad. The ticker finished last week with a 54.29% loss, at $0.0032. The 20.9 million shares that were traded during the session generated $86 thousand in daily dollar volume.[[tagnumber 2]] [[tagnumber 0]] [[tagnumber 2]] [[tagnumber 0]][[tagnumber 6]]FONU[[tagnumber 7]] is doing quite good in today’s session, however. The ticker is sitting 46.88% up as of the writing of this article, which just shows how volatile it can be. Be sure to do your due diligence and weigh out all the risks before putting any money on the line.[[tagnumber 2]]