Implant Sciences Corp. (OTCMKTS:IMSC) With A Modest Gain

In the pre-holiday session investors showed some serious interest in the stock of Implant Sciences Corp. (OTCMKTS:IMSC). In just the shot span of active trading more than 300 thousand shares changed owners and the ticker rose by 4%. Admittedly the gain isn’t very impressive but at the current price levels of the stock it means that IMSC added 5 cents to their value and closed at $1.24. We will see if the gathered momentum carries over to tomorrows market and if the stock climbs even higher.

IMSC provide Explosive Trace Detection technologies through their two products QS-B220 and QS-h150. The main difference between them is that the latter is capable of detection without making direct contact with the target. Back in January IMSC got approval on their products by the US Transportation Security Administration but curiously enough the main market they have been expanding their activities has been China.

According to the CEO, the company has sold 800 hundred of their quantum sniffers for a total of $25-30 million worth in revenues. And they desperately need those kinds of funds in their balance sheet. Despite having success in attracting various buyers IMSC finished the quarter ending March 31 with the following results:

• ZERO cash
• $4,5 million total current assets
• $46 million total current liabilities
• $1.2 million revenues
• $5.3 million net loss

It becomes painfully obvious that the debt levels are getting out of control. As a result of financing their operations throughout the years IMSC owe quite significant sums. Their obligation to DMRJ Group LLC. as of May 6 consisting of four promissory notes and a revolving credit facility amounted to $3.8 million, $12 million, 12 million, $1 million and 10 million, respectively. Furthermore accrued interest reached $4.1 million. Investors should also expect some considerable dilution of the company’s stock.

During the short span of yesterday’s trades some stocks had plenty of time to tumble towards. ImageWare Systems, Inc. (OTCMKTS:IWSY) dropped for a second time in row and closed at $2.17 but falling as low as $2 in early trading. American Graphite Technologies Inc. (OTCBB:AGIN) are still proving to be unable to stop the stock’s free fall and lost another 8% on their way to the bottom.