Iddriven Inc. (OTCMKTS:IDDR)’s Run Didn’t Last
Iddriven Inc. (OTCMKTS:IDDR) managed to explode 20% up the charts when it became clear that it will henceforth be traded on the OTC Markets’ QB tier, but it was clear from the get-go that it was unlikely that the ticker could retain its gains – and, true to form, it didn’t.
Yesterday’s 28.76% plummet brought IDDR lower than where it was before its latest jump took it up, which, in retrospect, is an event that should have surprised no one. After all, moving into a higher tier on the OTC Markets is all fine and dandy, but it doesn’t magically change the fact that we’re dealing with an idle and unimpressive looking entity with little to no achievements to date.
Sure, investors wishing to commit to IDDR stock may henceforth have the opportunity to get their hands on a little more information instead of relying on vague or sloppy pinksheets financials. However, as far as the due diligence one can do here and now is concerned, there is next to nothing this company has going for it.
Frankly, its latest financial report looked the documentation of a sad mess:
- Cash and cash equivalents – $161 thousand
- Total Current Assets – $236 thousand
- Total Current Liabilities -$1.6 million
- Revenues – $1.7 thousand
- Net loss – $1.6 million
Those numbers hint at idleness and disinterest at the very least, if not incompetence or something even more nefarious – and that’s just scratching the surface.
Once you start reading into it, it turns out that IDDR currently has about half a million dollars worth of convertible notes that can be turned into shares of its common stock at a 25% discount of the average stock price 10 days before the conversion. That fact in and of itself should raise a serious red flag for investors, and said red flag is one they would do well to note if they value their money.
Now, we can’t be sure that what we saw yesterday is the direct result of IDDR‘s toxic funding habits coming back to haunt investor value – but at this point that seems like a better explanation than most, alongside with “the hype just ran its course, which means that the ticker can return to obscure near-illiqudity now”.
