Lamperd Less Lethal Inc (OTCMKTS:LLLI) Gives it Another Shot

The month of October was quite a busy one for Lamperd Less Lethal Inc (OTCMKTS:LLLI)’s PR department. The company made no less than seven announcements and said that it has signed distribution and licensing agreements, and that its products are now being sold in more and more countries around the world.

The market, however, couldn’t care less. Trading volumes remained small, and although we saw one or two spikes, the price failed to make a significant move in the right direction. Eventually, LLLI simply gave up which means that the latest press release is now more than a month old. Despite this, we are seeing some movement.

Out of the five sessions last week, only one ended in the red, and the ticker managed to gain a total of 20%. LLLI closed Friday’s session at $0.092 on a dollar volume of around $324 thousand, and it even managed to briefly break through the $0.10 barrier for the first time since September. Not bad, but once you take a look at the reasons for the performance, you’ll see that caution is advisable.

The riots in Ferguson, Missouri and Berkeley, California are still grabbing headlines, and plenty of people are trying to find a way of reducing the risk of brutality and abuse of authority by police officers. President Obama, for one, is taking the matter very seriously, and last week he called for equipping policemen with wearable cameras. Apparently, he reckons that the project will cost about $75 million. LLLI have a wearable camera in their product line-up, so it’s not that difficult to see why investors are getting excited about the stock once again.

The thing is, currently, everything is in the realms of speculation. The company itself hasn’t announced any moves towards getting a piece of the $75 million pie, and while nothing is impossible in the world of penny stocks, people who base their investment decisions solely on hype and excitement usually end up disappointed.

And unfortunately, other than the hype and excitement, there’s nothing else to suggest that LLLI is a safe place for your hard-earned cash. Here, for example, is what the Q3 report looks like:

• cash: $0
• current assets: $226 thousand
• current liabilities: $466 thousand
• revenue for the first nine months of 2014: $255 thousand
• net loss for the first nine months of 2014: $636 thousand

You have to agree that things weren’t looking good for LLLI back on September 30. When you check out the previous financial statement, however, you’ll see another major problem. The Q2 report tells us that during the first half of the year the company registered just under $237 thousand in revenues. As we mentioned already, the sales figure for the first nine months of 2014 stands at a little under $255 thousand which means that during the third quarter, LLLI managed to log less than $18 thousand in revenues. And that’s not exactly the performance people wanted to see while they were jumping in when the price was hovering above the $0.15 per share mark.

Of course, the shareholders can now hope that the contracts signed back in October will result in some more solid figures in the future, but while they are waiting to see what happens, they might want to take a look at the “Issuance History” section of the latest report. If they do, they’ll see that quite a lot of stock has seen the light of day over the last year or so, and they’ll also notice that a large portion of it was issued at rates way below the current market price.