Jammin Java Corp. (OTC:JAMN
, JAMN message board
) got back on track. After a serial loss over the past week, on Friday the stock added 13.73% to
its price and its traded volume increased. However, the strangest thing here is that no particular reason for the gain can be found yet.
Historical records show that Jammin has not released any news on its business lately, thus no one is familiar with its present activities. Though, what is known about JAMN is that this month the SEC has been conducting a non-public and confidential inquiry in order to determine whether Jammin and any party affiliated or unaffiliated with it, has violated the federal securities laws by participating in an unlawful "pump and dump" scheme to artificially inflate JAMN's stock price. True or not, it was immediately denied by Jammin, who blamed the promoters for this.
In any case, the most recent data on JAMN turns out to be its latest quarterly results, which the company filed a week ago. According to the 10-Q, as of July 31 this year Jammin had more assets than liabilities in its balance, though its accumulated deficit exceeded $1 million.
The company managed to generate some revenue, however, expenses were much higher as well as the net loss had substantially increased. Also, the financial report contains numerous risk factors that can influence the business of JAMN.
Still, Jammin anticipates using the funds received from Straight Path to meet its capital needs for the remainder of fiscal 2012 and to support its operations with any additional financing in future. However, a failure to obtain financing could have a substantially adverse effect on the company's business and financial results.