Green Parts Intl Inc. (OTCMKTS:GNPT) Goes Red After Reporting Q2
Green Parts Intl Inc. (OTCMKTS:GNPT) published its latest financial report, for the period ended June 30, 2015 after Wednesday’s trading session, and promptly proceeded to crash as soon as the market was given time to react to the numbers in said report.
Suffice it to say that said numbers were disappointing indeed. So much so, in fact, that investors completely ignored the announcement that hit the web on August 20, proclaiming that GNPT has just signed a recycled oil export agreement with a “South Korean Partner” and that “global exports are thriving”.
Well, global exports may be thriving, but GNPT itself sure doesn’t seem to be doing too well:
- Cash – $7 THOUSAND!
- Total Current Assets – $4.7 million
- Total Liabilities – $7.7 million
- Sales – $2.6 million
- Net loss – $392 thousand
If anything, the company’s cash on hand seems to have hit an all-time low. Which is not exactly unusual – the majority of the company’s assets have always been in the form of inventory, and that doesn’t seem to affect its ability to do business. However, at the end of the day, GNPT is still having trouble making ends meet in spite of making millions of dollars worth of revenues – which is a serious red flag.
And speaking of glaring warning signs, investors should really take notice of the fact that GNPT has issued almost 100 MILLION shares of common stock. A serious portion of said shares have come into existence as a result of toxic conversions of notes with discount provisions ranging from 40% to 60%:
As of August 1, 2014 GNPT had 64,618,604 shares of common stock outstanding.
As of July 31, 2015 GNPT had 164,277,804 shares of common stock outstanding.
Under the circumstances, it’s no mystery why GNPT fell as hard as it did once investors caught wind of its current state, and it will be no surprise to see it fall further down before the week is over.
