Todor Pichurov

Growlife Inc (OTCMKTS:PHOT) Deflates Further

by Todor Pichurov March 16, 2016

After another double-digit slump yesterday Growlife Inc (OTCMKTS:PHOT, PHOT message board) is more or less back to its price levels from before its uplisting from the grey sheets. By the closing bell PHOT was planted at $0.02 per share.

Was all the excitement surrounding the company's uplisting from the grey sheets back onto the pinks worth it? Judging by the way the price has moved ever since the original surge, the short answer might be a 'no'.

PHOT is not giving traders a lot to be excited about as well, and those who decided to jump on the hype bandwagon might have actually got around to reading the latest quarterly from the company, which has the potential to sober people up quite a bit. Here is a brief summary of PHOT's balance sheet as of September 30, 2015:

  • $62 thousand in cash
  • $515 thousand in current assets
  • $525 thousand in quarterly revenue
  • $78 thousand in quarterly gross loss
  • $777 thousand in quarterly operating loss

Cash is thin, gross loss is there due to the closure of unprofitable stores and selling their inventory at liquidation prices. Looking at the nine-month period ending September, net loss is at $3.4 million, swelling with the inclusion of a $2 million expense deriving from the settlement of class action lawsuits.

The company had not paid up this $2 million as of November but expected to issue a new 115 million new common shares for the settlements.

Traders are hoping PHOT is going to come up with big, flashy, exciting news soon and the price movement will be revived again. Even if such news does come around, it's not too certain that the people who stuck around after the last spike won't use a new one to cash out, given how short lived this last one turned out to be.

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