Dragni Dragnev

Implant Sciences Corporation (OTCMKTS:IMSC) Steps Further Down

by Dragni Dragnev June 17, 2016

Implant Sciences Corporation (OTCMKTS:IMSC, IMSC message board) published a rather optimistic PR about its latest commercial breakthrough last Thursday, but the investor's enthusiasm doesn't seem to have survived the weekend that followed.

The ticker has been headed down ever since the market's opening on Monday in spite of the relative fresh news of the deployment of IMSC's QS-B220 desktop explosives and drugs trace detector over 160 airports worldwide. This is sort of a big deal for the company, and certainly seems like a step in the right direction – so why didn't it push IMSC further up the charts?

Well, this recent positive development suddenly seems less relevant when you take it in the context of IMSC's overall financial situation, which was pretty grim last time it reported:

  • cash - $280 thousand
  • current assets - $14.7 million
  • current liabilities - $99.66 million
  • quarterly revenues - $10.74 million
  • quarterly net loss - $4.09 million

So while IMSC does stand head and shoulders above most OTC Markets penny stock companies in terms of revenues generated and assets it has at its disposal, it is not without its faults. Its net loss is sizable, its cash on hand is abysmally low for an operation of that scale, and the amount of debt it has accumulated over the years is simply atrocious.

The good news is that although a sizable chunk of that debt is in the form of convertible notes, it doesn't really seem like said notes have put an undue burden on investor value so far – by the standards of the OTC Markets, anyway. The company has issued less than 5 million out of its nearly 80 million shares of common stock outstanding in the 12 months that preceded its latest filing – so that's encouraging, at least.

In conclusion – IMSC combines the volatility of a penny stock with the operations scale of a NYSE entity, which some investors might find alluring, especially in light of the company's recent announcements. As usual, we recommend that investors take a good look at the whole picture when making up their mind about committing to a company's stock.

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