MyEcheck Inc (OTCMKTS:MYEC) Recovers From Friday’s Descent
MyEcheck Inc (OTCMKTS:MYEC) ended last week by wiping out nearly 28% of its market price, and started the new one by gaining back 24%. Yesterday, the stock closed at $0.0259 after 12.9 million shares changed hands.
On Friday MYEC shared its latest quarterly report, which happens to be the latest available news on the company, as the latest press release was issued on Nov 5. The 10-Q covers the three months ended Sept 30, and shows the following:
- cash: $51.8 thousand
- current assets: $152.1 thousand
- current liabilities: $758.5 thousand
- revenue: $48.8 thousand
- loss from operations: $479.7 thousand
The numbers are dismal to say the least, and have worsened quarter over quarter. Cash has diminished, the current liabilities and working capital deficit have grown, and the reported revenues raise more than a few questions.
In the previous quarterly, MYEC reported that in six months the company has generated over $1.5 million in revenues. The Form 10 showed that the number has decreased to $752 thousand in just two months time, and then the latest report for the nine months ended Sept 30 showed it grew to $773 thousand. Something must be off with the numbers, as that amount of revenue cannot simply vanish.
Other than the grim financials, the 10-Q also showed that the company is prone to share-printing. A total of 800 million shares of common stock were issued to two accredited investors “for a subscription receivable”, and each investor was given 400 million shares. The first 400 million were issued on Feb 14 when MYEC closed at $0.004, but that didn’t stop the company from pricing each share at $0.00007. The other 400 million were priced a bit higher, at $0.000129 each. MYEC also printed 25 million shares at $0.0038 each to give “to an accredited investor for the settlement of debt”. On Sept 23, due to a “severance agreement with one of its executives”, the company authorized the issuance of nearly 5.6 million shares at the price of $0.0194 each, which was MYEC‘s closing price that day. These 5.6 million shares will be printed sometime in November.
Investors would do well to take into account all the risks associated with MYEC before deciding whether or not to put any money on the line.
