PositiveID Corp (OTCMKTS:PSID) Stumbles After Quarterly
Last Thursday PositiveID Corp (OTCMKTS:PSID) put up its due quarterly report after the markets closed. Friday’s reaction to the filing was less than optimal. By Friday’s close, PSID was 6.7% down on a significant increase in daily share volume.
The ticker shifted over 15 million shares in its last session, picking up significantly compared to the last couple of weeks in terms of daily volumes. The price action did not follow suit, with PSID closing red. Here is the brief version of the report’s balance sheet:
- $319 thousand in cash
- $8.7 million in current liabilities
- $2.5 million in Q3 revenues
- $93 thousand in Q3 net loss
The press release accompanying the filing reported record revenues for the first nine months of 2015, at $2.7 million in total. Obviously, the last quarter is the biggest contribution to this figure. $2.5 million of that is a license fee from an agreement with Boeing that was signed in 2012 and PSID received the sums under it in full as soon as 2012. However, this revenue was previously deferred and shows up on the books now, when the license term is over. This in turn means there was virtually little to none ongoing revenue generation in the last reported quarter. PSID‘s cash reserve is also down to almost half of what it was back in June 2015.
PSID went from 350 million outstanding shares as of early August to 405 million OS in early November. Nearly half of the newly issued shares originated from the conversion of notes, with shares priced at $0.01 apiece. More specifically, $339 thousand in convertible notes transformed into 23.1 million shares, issued “subsequent to September”.
The initial market reaction to the filing has been unambiguous, considering the mix of price action and volume swell. Where PSID is headed remains to be seen.
