Implant Sciences Corporation (OTCMKTS:IMSC) Almost Breaks Its 2016 High
On Friday the positive momentum behind Implant Sciences Corporation (OTCMKTS:IMSC) reached critical mass and as a result the stock of the company exploded up the chart. When the closing bell put an end to the trading the ticker was sitting at its highest point for the day of $0.56, representing a daily gain of nearly 22%. Friday’s traded volume of 900 thousand shares more than tripled the monthly average.
It is clear that even without any PRs for close to two weeks investors remain excited about IMSC. After all, the company did announce a 380% increase in revenues for the quarter ended December 31, 2015. For the six-month period the results are even better – from $4 million the revenues reported by IMSC now stood at more than $24 million. Before you get too overwhelmed let’s cool you down a bit by opening the financial report for the quarter and warning you that the picture it paints is far less encouraging. At the end of December IMSC had:
• $776 thousand cash
• $14.5 million total current assets
• $96 million total current assets
• $10.2 million revenues
• $3.3 million net loss
In our articles we have often talked about the massive indebtedness of the company. IMSC owe over $85 million to DMRJ Group LLC, Montsant Partners LLC, and BAM Administrative Services LLC. The Form 3 filed on April 18 reveals that Montsant own close to $5.3 million that can be converted into preferred J stock and subsequently converted into over 66 million common shares at a price of just $0.08 per share.
All of the company’s debt had a maturity date of March 31, 2016, but IMSC were able to negotiate an extension. After agreeing to amend the terms of some of its series of preferred shares the company moved the maturity date of the non-convertible debt to June 30, 2016, while the maturity dates of the notes owned by DMRJ and Montsant was pushed back to December 30, 2016. If IMSC don’t find a more permanent solution they will be facing the same problem in just a few months, though.
At least the company has continued to register sizable sales – $1.3 million of explosives trace detectors were sold by February 18 with another $1 million of shipped products reported by March 31. No matter how excited you might be about the potential of IMSC‘s products and patents the risks are far too serious to be taken lightly. That is why you should take the necessary time to do thorough research before putting any amount of money on the line.
