Medbox, Inc. (OTCMKTS:MDBX) Turns a Deep Red Again
The stock of Medbox, Inc. (OTCMKTS:MDBX) made a second recent attempt at recovery, closing 20% up on Friday. However, the first quarter report submitted after the closing bell on the same day put a spanner in the works. Following the filing, the company has completely wiped Friday’s gains over two red sessions in the current week.
Yesterday MDBX closed another 8.8% down, at $0.51 per share. The contents of the Q1 report were likely the driving factor behind this latest drop. The figures contained in it were not exactly stellar and it seems the market is not enthused either. Here is what MDBX reported, in short:
- $92 thousand in cash
- $10.2 million in current liabilities
- $66 thousand in Q1 revenues
- $4.4 million in Q1 net loss
The company’s modest $66 thousand in revenues are still an improvement over the negative $8.9 thousand in Q1 of 2014, as per the restated report for the older period. The reason MDBX‘s six-month chart looks the way it does is the announcement that the company made significant revenue recognition errors in a number of reports and eventually restated said reports, after announcing a SEC investigation of the issue.
The myriad of class action lawsuits by a number of private law firms did not do MDBX any favors either. The share price charted ever new lows over the last few months. In an early May interview MDBX founder Vincent Mehdizadeh commented on the restatement of filings and said he thought a restatement was not necessary as the problematic points and the questions the SEC raised about them were ‘easily addressable’.
