Tapinator Inc. (OTCMKTS:TAPM) Explodes Up The Charts

Tapinator Inc. (OTCMKTS:TAPM) finished yesterday’s session 47.17% up, as even more people jumped at its stock after its latest announcement hit the web.

This latest upward surge seems to have been caused by hype triggered by the announcements that TAPM has been issuing on a regular basis for a few days now filing. The first one of those hit the web right after the company filed its quarterly report and heavily emphasized on many of the positive things that the company has achieved to date. Like the fact that TAPM “ended Q2 with 112 games, of which 19 were launched in the quarter” and that the company’s “quarterly revenues grew 172% year-over-year and 49% quarter-over-quarter”.

Well, one look at said quarterly report tells another tale entirely, and it s rather less optimistic than the one the flood of press releases try to spin:

• Cash and cash equivalents – $1.8 million
• Total current assets – $2.1 million
• Total current liabilities – $71 thousand
• Revenue – $615 thousand
• Net loss – $4.9 million

One year ago, the filing covering the same period showed a picture of appalling idleness and insignificance. By all accounts it looks like TAPM has grown out of that phase by now, only to enter the stage where it is actively struggling with the market and failing to make ends meet.

True, most of its net loss seems ti be due to “loss on derivative liability”, but even if you discount that figure, the company would still come out in the red.

Another detail that consistently gets neglected is the fact that as a result of toxic conversions, TAPM common stock issued and outstanding has increased from 46 million to 57 million over the last year or so. While that can hardly be called a glaring red flag, it shows that the company doesn’t shy from stock dilution. Consider also the fact that TAPM just upped its authorized shares from 75 million to 150 million and the picture changes dramatically.

Investors should be aware of such details if they are to make any money out of TAPM, and for that to happen they need to do careful due diligence, not just blindly trust in all of the company’s forward looking press releases.