Will OXIS International, Inc. (OTCMKTS:OXIS)’s Jump Continue?
OXIS International, Inc. (OTCMKTS:OXIS) managed to make a 16.13% jump on Friday, after a couple of sessions of relative inactivity – but will this state of developments last?
The company’s fundamentals certainly don’t seem to point in that direction. Its latest financial report, for the fiscal year ended Dec. 31, 2014 contained some pretty disturbing numbers:
- cash – $855 thousand
- current assets – $882 thousand
- current liabilities – $29.82 million
- revenue – $61 thousand
- net loss – $23.48 million
To say that the filing is not what you would expect of a company that is “soon to be on the NASDAQ” might be the understatement of the year. In spite of what its supporters may claim, even one glance reveals that OXIS‘ financials are extremely underwhelming.
This impression only solidifies if you take the time to examine the part of the report where OXIS describes its many convertible notes. Sections such as “the 2006 Debentures are subject to an original issue discount of 20.318%” and “to sell 10% convertible debentures, with an exercise price of $0.01, with an initial principal balance of $1,250,000 and warrants to acquire up to 100,000,000 shares of the Company’s common stock at an exercise price of $0.02 per share” should serve as a fair warning to investors.
And let’s not forget that just three months ago, OXIS was targeted by a paid pump. With all these red flags in mind – let the buyer beware.
