Georgi Kamburov

Are Investors Returning to Lifelogger Technologies Corp (OTCMKTS:LOGG)?

by Georgi Kamburov April 26, 2016

After weeks of rather subdued trading yesterday the stock of Lifelogger Technologies Corp (OTCMKTS:LOGG, LOGG message board) enjoyed a significant surge in interest from the market. During the trading day over 1.1 million shares changed hands, volume that is nearly 5 times higher than the monthly average. The heightened trading pushed the ticker to a close 5.23% in the green at $0.145 per share. So, what caused the sudden change in investor sentiment?

Well, yesterday's performance doesn’t appear to have been supported by absolutely anything. The last PR that came from LOGG is over a month long now while the SEC filings submitted by the company have all been rather depressing. Let's start with the annual report for 2015 that was filed on April 8. It shows that at the end of December LOGG had:

• $132 thousand cash
• $145 thousand total current assets
• $552 thousand total current liabilities
• ZERO revenues
• $1.08 million net loss

The balance sheet is simply atrocious. In addition to the limited cash reserves and the sizable working capital deficit the company actually failed to generate even a dime throughout the entire 2015 compared to the $350 thousand in revenues at the end of 2014. The lack of revenues is accompanied by a drastic increase in the reported losses - on year-over-year basis the company's total operating expenses grew by nearly 3 times while the net loss is nearly 6 times higher.

This is just the start, though. Last month LOGG entered into a debt settlement agreement with Glamis Capital SA and under its terms around $142 thousand in debt was converted into 1.8 million shares making the conversion price of each share just $0.07875. Again in March the company decided to double its authorized shares - from 125 million to 255 million, of which 250 million will be common stock and 5 million will be preferred stock.

The acquisition of the assets of Pixorial, Inc. that was announced at the end of October 2015 appears to have run into some unforeseen troubles. The initial closing date of the deal was March 30, 2016, but at the start of this month LOGG filed an 8-K form informing investors that the deadline has been pushed back to April 30. This means that the company has just a couple of days left to close the deal.

It should be clear that the red flags surrounding LOGG are extremely serious. Any trades involving the stock must be preceded by thorough due diligence and careful planning. 

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