This week has started on a subdued note for Medbox Inc (OTCMKTS:MDBX) as the stock prices registered a sharp decline of 5.73% in last trading session. It gave away more than 50% of the gains that it posted on Monday. The volatility in MDBX stock price continues. However, the wind is favoring bears as the shareholders and market are not delighted with the restated results.
The woes continues
As it was believed, Monday gains were not supported by next trading session. Most of the participants are raged with the restated financial numbers. Also, they have every reason to be as there is a big discrepancy in the originally reported and restated financial numbers. Medbox rectified several errors in revenue report and the errors were not small. The company was forced to opt for a revision after the SEC ordered an investigation into the matter. Medbox became a target of private law entities. They alleged that due to accounting errors, shareholders suffered huge losses in last year. The stock price dropped from $20 levels recorded last year to less than $2 in 2015.
The financial numbers
Medbox Inc (OTCMKTS:MDBX) restated reports revealed that shareholders have every reason to get agitated on the company. The discrepancies reported are huge and converts the positive revenue into negative revenue. As per the original 1Q2014 numbers, revenue was $331,000 whereas now as per restated results it stands at negative $8,000. The revenue for FY2012 in original report was $2.59 million which came at $1.17 million in restated filing. The revenue for FY2013 in original report was $5.22 million which now the company reported at $2.06 million in restated filing.
Nothing more can be said about Medbox apart from a single word and that is “caution.” The restated numbers shakes the shareholders trust in the company. The impact of restated numbers will be further seen on MDBX stock prices in coming days.