Paid Inc.(OTCMKTS:PAYD) Loses Patent Case And Crashes
Yesterday’s news pushed Paid Inc. (OTCMKTS:PAYD)’s prices per share 81.36% down the charts, as panicked and disappointed investors ducked and ran for the hills.
One does not simply sue eBay Inc. (NASDAQ:EBAY) – that much should be obvious to anyone. The e-trade mega-corporation is a dominating presence in much more than its niche – and its influence is only growing. Which is why PAYD‘s boastful claims that it can take it on were more than a little ridiculous. Apparently, the army of lawyers that EBAY undoubtedly has on retainer has done its job, much to the disappointment to investors that were rooting for the underdog.
Well, this particular story does not end like the one of David and Goliath. The USPTO Patent Trial and Appeal Board has entered a final ruling and has determined that PAID has failed to claim patent eligible subject matter.
The news had a devastating effect on the company’s price per share, and it seems like the drop may have been justified. Why?
Because PAYD doesn’t really seem to have much going for it, aside from the claims that it could use those patents in the future. And that’s not an exaggeration – its latest financial report looked like so:
- Cash and cash equivalents – $ 424 thousand
- Total current assets – $751 thousand
- Total current liabilities – $776 thousand
- Revenues – $52 thousand
- Net loss – $204 thousand
In spite of this, people on PAYD‘s message boards seem to think that the ticker can and will regain some ground in the next few days, because it has fallen too far too fast. Truth be told, a dead cat bounce is not out of the question at this point – however, there does not appear to be a force out there that could push the ticker up the charts at this very moment. Which is why a further descent towards triple zero illiquidity appears more likely.
Investors should take all these facts into consideration and act accordingly.
