Borislav Tonev

Lifelogger Technologies Corp (OTCMKTS:LOGG) Wants to Resurrect Pixorial

by Borislav Tonev November 2, 2015

Last Thursday Lifelogger Technologies Corp (OTCMKTS:LOGG, LOGG message board) issued their first press release in over two and a half months. They said with it that they have signed a letter of intent for the acquisition of a company called Pixorial.

The market's reaction wasn't exactly instantaneous. In fact, Thursday's trading was a bit slow and the ticker only moved up about 7%. On Friday, however, it picked up quite a lot of speed. $122 thousand in dollar volume and daily gains of around 38% brought LOGG back to the $0.20 per share mark. Quite clearly, investors seem pretty excited about the acquisition which, according to the press release, is expected to be closed within the next few weeks. We can see why.

Pixorial was established in 2007 and its initial business plan involved digitizing old VHS cassettes and other outdated video formats. In 2013, however, they also launched a couple of mobile apps and within a year, their user base amounted to 636,000 users. It was also one of the first companies in its field to offer Google Drive integration in its video storage service.

In other words, Pixorial's story is very interesting and LOGG might just manage to profit from the acquisition. So where's the catch?

Well, back in June 2014, Pixorial's management team announced that, having discussed the matter in great detail, they have decided that carrying on is not economically viable for them. A month later, the apps were taken down and the service was discontinued.

In other words, if all goes according to plan, in a couple of weeks' time LOGG will close the acquisition of a company that has no active operations. Once they've done that, they'll need to try and re-start it.

Not an easy task, you have to agree, and the latest 10-Q doesn't suggest that success is just around the corner. Here's what the figures looked like at the end of Q2:

  • cash: $33 thousand
  • current assets: $38 thousand
  • current liabilities: $100 thousand
  • NO quarterly revenues
  • quarterly net loss: $322 thousand

It must be said that in September, LOGG raised some money with the help of a convertible note and that should improve the balance sheet a little bit. Nevertheless, reading through the terms of the note might not be a bad call as it should give you an idea of how bad the potential dilution is.

There's also LOGG's other project – the lifelogging camera that they've been talking about ever since they listed the stock on the OTC Markets. Things are not going well on that front. In May which wasn't that long ago, they were talking about a planned launch in the second quarter of 2015. In case you haven't noticed, we're now well into the fourth quarter and all they've managed to do so far is initiate some beta testing of their mobile applications.

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