Implant Sciences Corporation (OTCMKTS:IMSC) Crashes To New Record Lows
Implant Sciences Corporations (OTCMKTS:IMSC) were already sliding down the chart for several sessions in a row but yesterday they got simply devastated. The stock plummeted downwards and when the closing bell rang it had wiped over 24% of its value sitting at $0.47. During the session a new low of $0.43 was registered. The last time the company traded at such price ranges was way back in late-2011.
Although IMSC‘s financials are not what one would expect from a pennystock venture the latest annual report filed by the company still left investors quite disappointed. At the end of June IMSC had:
• $1.98 million cash
• $9.4 million total current assets
• $88.2 million total current liabilities
• $12.9 million annual revenues
• $21.5 million net loss
Despite the annual revenues surpassing the ones for the previous fiscal year by nearly 52% they simply cannot offset the massive net loss and the crushing liabilities.
Over $80 million of the liabilities can be converted into shares with $3.18 million under a promissory note and $1.9 million in accrued interest having a conversion price of just $0.08 per share. On September 24 $245,000 of the accrued interest was turned into 3,062,500 shares. Investors should keep in mind that IMSC will have to repay all of its borrowings from DMRJ, Montsant and from a group of institutional investors for which BAM Administrative Services LLC acts as administrative agent on March 31, 2016.
As we said in our previous article IMSC is making considerable progress with its business plan. Since April this year the company has received orders of up to 883 QS-B220 desktop explosives trace detectors from international airports in 11 EU countries. A follow-on order worth $500 thousand the Incheon International Airport, the largest airport in South Korea, was announced this Wednesday. For 2016 the company has given a guidance of $40 to $45 million, if everything goes according to plan.
For now though IMSC demands serious due diligence before any trades involving its stock are attempted. Take into account all of the various risks and adjust your position in the ticker accordingly.
