Anastas Gegov

Wowio Inc (OTCMKTS:WWIO) Explodes On Financing News

by Anastas Gegov April 15, 2015

The stock of Wowio Inc (OTCMKTS:WWIO, WWIO message board) has been sliding down the charts in the past six months and has obliterated more than 95% of its value in that time, slipping low into triple-zero land, almost reaching rock bottom with a 52-week low of $0.0002 on April 7.

 

Having reached such a price and with an outstanding share count of 188 million, the company's market cap came at around $37 thousand, which is low even for an OTC companies. However, looking at the numbers in the last available financial report of the company this doesn't seem very surprising. Since the company filed an NT 10-K on April 1 we will have to rely on the numbers contained in the balance sheet of the report that covered the period ended September 30, 2014.

 

  • cash: $51!!!
  • current assets: $310 thousand
  • total liabilities: $3.51 million
  • quarterly revenues: $50 thousand
  • quarterly net loss: $294 thousand

From these numbers we can see that while the cash reserves of WWIO are virtually non-existent the liabilities of the company are quite significant. On the not-so-bad side of things, it is obvious that the revenues have been increasing, but they are still unfortunately too low to make up for the operating expenses and the company can't turn a profit.

 

This is why the downward run in which WWIO almost hit rock bottom was something that was justified and even the promotional efforts made in November, 2014 didn't have any effect on the price of the company stock.

 

The latest news, however, gave investors some optimism. Yesterday, before the session started, WWIO came out with a press release that announced that they have secured a $5 million equity investment commitment.

 

Needless to say, this brought a lot of attention to the stock which rarely records daily trade values of over $10 thousand. Over the course of yesterday's session WWIO gained an impressive 106.90% in value and finished the day with a price of $0.0006 while a total of 335 million shares changed hands, generating a daily dollar volume of $164 thousand.

 

This comes as a bit of a shocker as we previously mentioned that the outstanding share count on the OTC markets website is 188 million and brings the question of how is WWIO able to record nearly double that amount of traded shares in a single session.

 

In any case, the stock of WWIO should be approached with caution and you should remember to do your due diligence and weigh out the risks before putting any money on the line.

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