Yesterday the stock price of LabStyle Innovations Corp (OTCMKTS:DRIO) posted more gains adding 4.65% to its price and closing at $0.450. So, far the stock price has recorded nine consecutive sessions closing in the green. On Wednesday’s trading session, the stock price surged more than 14% to close the day at $0.43. The share volume was 811,000 compared to the average volume of 69,000. The surge in volume was almost twelve times. As of now, it is trading at the highest point of the past few months and can see a mild pull-back in the coming days.

The profile

LabStyle Innovation is the developer firm of the Dario Diabetes Management Offering, a cloud-based solution that covers a blood glucose monitoring mechanism. The product has been given marketing clearance in Europe. It has been introduced in several countries including the UK, Italy, the Netherlands and Australia.

It has also been accepted for sale in Israel market. Investors however are getting highly hopeful of an U.S. FDA approval that is expected before the end of the year. In March, LabStyle provided new positive data to the U.S. FDA after successfully concluding a 368 User Performance Trial.

The number game

Things are certainly moving in a promising direction but investors should remember that they are still investing in a penny stock. As per the last financial report for FY2014 submitted by LabStyle on March 24, the company recorded $1.45 million in cash. It posted total current assets amounting to $2 million while $1.6 came as total current liabilities. The revenue stood at $51,000 and the net loss was $`12.8 million.

The company recorded the first revenue generated from Dario sales in 4Q. The actual amount is underwhelming against the reported losses. The financials do not paint a rosy picture of LabStyle and therefore due caution should be taken before investing at higher levels.