IFAN Financial Inc (OTCBB:IFAN) Barely Stays Afloat

There is a YouTube channel named after IFAN Financial Inc (OTCBB:IFAN)’s iPIN Technologies. We don’t know whether the company has set it up or not, but in it, we can see an interview with Steven Scholl, IFAN‘s CFO. Mr. Scholl says at one point that the PIN Terminal device is going to be “pushed out by major merchants in about sixty days”.

We don’t know the exact date of the interview, but we do know that the video was uploaded on September 26 which means that IFAN‘s gizmo should be available right now. So, is it?

We don’t know. The company website doesn’t say anything about the availability of the device, there have been no press releases announcing its launch, and the SEC filings contain no information on that front whatsoever.

Speaking of the SEC filings, IFAN‘s 10-K was supposed to come out before the end of last week, but the company failed to file it on time. They did publish an NT 10-K earlier today, but it was too late. Right now, the company profile is stamped with a Limited Information sign.

The latest financial information that investors can work with is found in an 8-K/A form published on October 14. It says that at the end of May, Mobicash America, IFAN‘s operating subsidiary, had:

• current assets: $4,586 in cash
• current liabilities: $223 thousand
• NO revenue since inception
• accumulated deficit: $752 thousand

We should probably note at this point that although the shareholders haven’t been notified about it, IFAN has managed to raise some cash. Quality Stocks recently started featuring the company in its newsletter and blog posts and their disclaimer says that they are doing this in exchange for a $25 thousand compensation coming directly from IFAN.

We’ll leave it up to you to decide whether splashing out on investor relations services without telling anyone if you’ve met your own deadlines is a good call. Whatever your opinions is, however, you have to agree that IFAN‘s failure to meet their reporting obligations is a rather big red flag. So, are investors worried about it?

Apparently, they aren’t. The performance is far from perfect and the volumes are extremely inconsistent, but the stock has so far managed to avoid a more serious drop. Yesterday, IFAN gained about 7% and it finished the day at $0.44 per share on a dollar volume of about $236 thousand.

So, investors don’t appear too bothered about the lack of a 10-K. And why would they be? After all, with or without the report, Don McShane is still adamant that the stock can go as high as $19 per share.

As we mentioned in our previous articles, some third parties have set aside a total budget of $3.5 million in an attempt to boost IFAN‘s share price. The landing page is still up and running and last week some investors around the internet forums informed us that they have received copies of the hard mailer brochure which started flying around at the end of October.

The $3.5 million pump is the only thing supporting the stock at the moment and this puts IFAN in a rather delicate situation because nobody can say with absolute certainty when it will cave in under the pressure. We do know for sure, however, that if a huge amount of discounted stock hits the open market, sustaining the current levels will be extremely difficult.

And if you’ve read through our previous coverages, you’d know that there are people who own a huge amount of discounted stock.