Lifelogger Technologies Corp (OTCMKTS:LOGG) Crashes Hard, Files Quarterly Report
Yesterday the stock of Lifelogger Technologies Corp (OTCMKTS:LOGG) suffered a devastating drop wiping over 21% of its value and closing at $0.41 per share. The massive crash took place on above-average volume of 1.9 million traded shares. Despite the slide LOGG still command a ridiculously inflated market cap of $33.7 million.
Two days ago a rather negative article about the company was published on SeekingAlpha. In it the author discussed the numerous red flags around the company that we have been warning you about since we first began writing about LOGG – the atrocious financials, the multiple product delays which in turn means that the company still has no products, not to mention the unrealistic share price.
Well, yesterday LOGG submitted their financial report for the first quarter of 2015 and it showed that the financial state of the company is as dire as ever:
• $81 117 cash
• $89 thousand total current assets
• $55 392 total current liabilities
• ZERO revenues
• $290 thousand net loss
The company is still relying primarily on its shares in order to raise the necessary capital for its operations and according to the subsequent events section of the report on May 12 they sold 348 thousand shares for $150 thousand in proceeds. Investors should take into account the fact that 31 million out of the 82 million currently outstanding shares were sold back in 2013 at $0.001 each.
The last PR published by LOGG is now over two and half months old and it wasn’t particularly exciting either – the company announced that it was approved by OTC Markets to continue trading on the OTCQB Marketplace. The prolonged silence about their current operations may be starting to leave its mark on the performance of the stock.
In its corporate presentation from December LOGG showed that they plan to start private beta testing of their cloud storage software by the end of January, this year, with an open beta to follow in May. According to the SeekingAlpha article beta testing still hasn’t started. The other product of the company, the wearable camera, is slated to hit the market during the second quarter of the year. Will this time LOGG manage to keep their deadlines though?
The business plan of the company may sound promising but they still don’t have any products while the market for wearable cameras is only getting more and more competitive. The red flags around LOGG are extremely serious and any trades involving the stock should be attempted only after doing extensive due diligence. A new PR could help the stock stabilize but if there are more delays the ticker could slide even lower down the chart.
