IMMUNE THERAPEUTIC COM USD0.001 (OTCMKTS:IMUN) Jumps Up The Chart
After logging three consecutive sessions in the red the stock of Immune Therapeutics Inc, Inc. (OTCMKTS:IMUN) managed to recover some of its losses during Friday’s trading. The ticker closed the session with an impressive gain of over 12%, sitting at $0.146 by the time of the closing bell. The outcome of the session may have been positive but looking at the trading throughout the day leaves a lot be desired – despite over 1.3 million shares getting exchanged as a whole the number of trades was rather small.
In addition, Friday’s gains have pushed IMUN‘s market cap to over $29 million, valuation that simply cannot be justified by the fundamentals of the company. Before we open the financial report covering the first quarter of the year let’s just say that IMUN decided that it was better to publish the same PR about its attendance at the 69th World Health Assembly twice but couldn’t be bothered to even mention its most recent financial results.
Well, the quarterly report isn’t something that any company would be proud about – according to it as of March 31, 2016, IMUN had:
• $132 thousand cash
• $153 thousand total current assets
• $6.34 million total current liabilities
• $3,463
• $6.6 million net loss
Although the revenues for the quarter are not exactly confidence-inspiring they are actually close to $1500 higher than what the company reported a year ago for an increase of over 66%. The problem is that the losses have been growing at an even faster rate with the loss from operations up by 72% while the net loss has more than doubled and from $2.78 million at the end of March 2015 it now stands at more than $6.6 million.
The depressing financial state of the company is just the first in a long line of red flags, though. During the quarter covered by the report IMUN issued more than 30 million shares. 19 million of them were for services valued at $1,314,169. This makes the average price of each share just $0.07. Another 8.5 million shares were used to settle amounts owed under the various outstanding notes of the company. Although IMUN has actually defaulted on quite a few of the outstanding notes it is still being forced to take on more and more debt – the subsequent events section of the quarterly shows that between March 31 and May 16 IMUN sold new promissory notes in the aggregate amount of $961 thousand.
The same section also states that the son of IMUN‘s CEO has been hired as Senior Content and Web Developer with an annual base salary of $120 thousand.
Even if you believe in the potential of IMUN‘s products and immunotherapy technologies the risks are far too serious to be taken lightly. Do your own research and adjust your trades accordingly.
