Jovita Baltrusaityte

Is there Any Hope Left for Gen2Media Corporation (OTCBB: GTWO)?

by Jovita Baltrusaityte August 18, 2009
gen2media.jpgGen2Media Corp. has recently paid 50,000 shares to Emerging Markets Consulting for the promotion of its stock. It seems the company expects to receive attention from investors. However, no positive signs are on the horizon.

Gen2Media Corporation (GTWO.ob, or OTCBB: GTWO) is a digital media, technology, and marketing company. Currently, the stock price is set at $0.40, while trading remains highly illiquid. Negative perspective is also reflected in the financial situation of the company.

According to the latest quarterly report, the operating loss has increased almost three-times, i.e. from $463,000 in December to $1,189,000 in March. Similarly, liabilities went from $433,000 to $618,000. Although GTWO has $119,000 of assets, it's insufficient to cover all the debt.

It shouldn't also be forgotten that due to the harsh financial times, GTWO keeps paying salaries in different ways, for example, during the quarter ended March 31, 2009, the Company's Chief Executive Officer agreed to exercise 970,962 options in exchange for the forgiveness of $48,548 in accrued salary.

All in all, if you consider the current share price, harsh financial situation and stock promotion, would you dare to put your money in Gen2Media Corp.?

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Reference:

http://www.gen2media.com

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