Lifelogger Technologies Corp (OTCMKTS:LOGG) Pushed Up Again
Lifelogger Technologies Corp (OTCMKTS:LOGG) has only been publicly traded for less than a year, but it would appear that its startup status isn’t bothering some people. In fact, the aforementioned people reckon that, despite being on the scene since January, LOGG already has what it takes to rival what is undoubtedly the company to beat when it comes to wearable cameras – GoPro Inc (NASDAQ:GPRO).
A website called Venture Capital Blog and another outfit by the name of Street Authority published a couple of articles recently. They explained LOGG‘s concept and said how, in their opinion, it stacks up against GRPO‘s products.
Neither of the outfits disclose any compensations in their disclaimers which suggests that they are simply optimistic about LOGG‘s future and its ability to challenge the $9 billion industry leader. But can this really happen?
LOGG‘s performance from the last few weeks suggests that many people believe so. Red sessions are a rarity at the moment and although the ticker fell from over $0.60 to just $0.40 in October, it’s now back at $0.55 and it appears to be determined to continue going up.
The company also announced on Friday that it will be exhibiting at the 2015 CES which leads a lot of people to think that everything is going according to plan. Unfortunately, the latest 10-Q suggests that this is not strictly the case.
Before we get to the financials recorded on September 30, we would like to draw your attention to the report covering the second quarter of 2014. If you open it and scroll down to the Overview of Our Performance section, you’ll read that a couple of months ago, LOGG expected to have “100 prototypes available in November 2014”. The management team also said that they plan to start production during the first quarter of 2015.
Apparently, LOGG bit off more than they can chew with these deadlines because the Q3 statement tells us that they now expect to have “a Lifelogger prototype available on December 2014” and that they are “anticipating commencement of production sometime in the second quarter of 2015”.
So, there has been a delay. Having gone through the financial statement, we can’t say that we’re shocked. Here’s what LOGG recorded at the end of the third quarter:
- cash: $248 thousand
- current assets: $265 thousand
- current liabilities: $84 thousand
- quarterly revenues: $92 thousand
- net loss: $18 thousand
The revenues are still coming from a product development agreement and, in LOGG‘s own words, “the company’s cash position may not be sufficient to support its daily operations”.
The only positive thing that we can see in the 10-Q is the fact that the shareholders didn’t suffer any significant dilution during the reported quarter (only 416 thousand shares were sold at $0.60 a piece during Q3).
Unfortunately, once you take a look further back in time, you’ll notice that this hasn’t always been the case. Back in June 2013, some unnamed investors bought a total of 3,100,000 shares for $31,000. Later, there was a 10 for 1 forward split which means that the aforementioned unnamed investors could now be holding up to 31,000,000 shares of LOGG common stock. It also means that they might be tempted to start selling their holdings on the open market and cash in on the millions of dollars in profits awaiting them. And we all know what will happen if they do it.
