Carbon Sciences, Inc. (OTC:CABN
, CABN message board
) has been falling down since last week. Yesterday, the stock lost the next 1.36% of its price,
while its traded volume jumped up.
Looks like the situation is getting worse every day, though it might change today provoked by some positive news.
Just a few hours ago, Carbon Sciences announced the successful test of a new version of its natural gas dry reforming catalyst that can process high CO2 content natural gas at high efficiency. In addition, the company claimed that its breakthrough catalyst might help accelerate the growth of the emerging natural gas to liquid fuels industry.
The effect of the optimistic statements should be seen any minute, though it seems that CABN will need much more than statements to succeed.
On March 30, the company filed its annual report. However, it was not encouraging at all.
As of December 31, 2011 liabilities of CABN substantially increased, unlike the company's cash. During the same period of time, the net loss jumped up, the accumulated deficit during the development stage reached $7.6 million, and the revenue kept missing.
The negative cash flows from operations and its number of losses since inception raise substantial doubt about the company's ability to continue as a going concern. Meaning that its future operation is dependent upon, among other things, additional cash infusion.
Management believes the existing shareholders will provide the additional cash needed to meet the company's obligations as they become due. However, this funding is not guaranteed and CABN should seek new potential investors.