Geospatial Corp (OTCMKTS:GSPH) Perks Up On News
Following a month of radio silence, Geospatial Corp (OTCMKTS:GSPH) put up a new press release only yesterday. The announcement sent GSPH into a session marked by heavy volume and a double-digit price rise. By the bell the stock sat at $0.167 per share on 707 thousand shares traded.
GSPH is a company that works in the niche of a niche sector, providing mapping and locational information for underground infrastructure. Despite this unique position, the company is struggling financially. The latest report available from GSPH is a Q2 filing that reveals the following figures:
- $4 thousand in cash
- $545 thousand in total company assets
- $5.1 million in current liabilities
- $20 thousand in sales for Jan – Jun 2015
- $1.3 million in loss from operations for Jan – Jun 2015
It’s probably worth mentioning that the company recorded gross loss in both Q1 and Q2 of this year, with Q2 cost of sales exceeding sales by about 100%.
The news release that propped the share price up stated that GSPH “plans” to launch an Android app of its Geographic Information System or GIS. Even though there was no mention of a release date for the Android mobile version or even a launch window or month mentioned in the release, the release was enough to get traders excited.
According to CEO Mark Smith, the undated Android launch will be another step towards making GSPH a “major data management” company – a rather bold claim, considering the financial situation the business is currently in.
It would be useful if the latest quarterly also gave specific information about conversion rates of promissory notes and the exact prices at which shares would be issued upon conversion but there is none of that. Notes are convertible “at the option of the holder”, and that should be enough for investors.
Whether yesterday’s vague launch news is enough to push GSPH further up the charts remains to be seen.
