WebSafety, Inc. (PINK:WBSI) Shows Signs Of Life

WebSafety is a provider of mobile phone software that notifies parents and employers of cyberbullying, explicit or degrading texting, and disables the cell phone’s ability to text, email or web browse in a moving vehicle. 

The company filed their 10-K report a week ago and looking at it, they have indeed fallen on hard times:

• $25 thousand cash
• $31 thousand total assets
• $1.3 million total current liabilities
• no revenue for 2012
• $1.1 million net loss

The company is also being sued by Mr. Keith Miller, a part time employee of the company who previously took the position of the Interim Chief Technology Officer. Mr. Miller alleges that he was induced to work by promises made by the representatives of WBSI and that he was not paid for his services. What will the final outcome of the trial be is anybody’s guess.

Moreover, as of August 2011 all employees left the company and they suspended all operations due to the lack of revenue and inability to raise enough capital for ongoing activities. To date WBSI still haven’t got sufficient funding to resume their business.

If you are now curious what caused yesterday’s spike in price level, look no further than their newest press release. Apparently the U.S. Patent Office has issued to WebSafety a patent for inhibiting a cell phone’s ability to text, email or web browse in a moving vehicle. Maybe after this they will finally find the $250 thousand needed to resume their operations.

WBSI is very speculative bet. Future press releases may drive the ticker upwards but seeing as all of WBSI‘s functions have been terminated for more than a year now any long term positive movement is unlikely.