After a long spell of no updates, TANARIS POWER (OTCBB:TPHX) has finally come up with some development. The company proudly announced last week that it has won a product evaluation agreement with the United Airlines. The agreement holds a lot of value for the company and its investors as it brings the developer of Smart Lithium Ion batteries closer to a long-term relationship with the world’s largest airline.
First important development in a long time
TANARIS POWER (OTCBB:TPHX) noted that though the agreement was earlier executed by Tanaris Systems, but the same has been fully assigned to the company. On the occasion of sharing the biggest development with the stakeholders, CEO Bruce Farmer said that the agreement will open the doors to several opportunities for the company. He expressed hope of extending the relationship with the United Airlines for a long-period of time.
Financial position is a worry
The agreement with the United Airlines will be an important one for TANARIS POWER (OTCBB:TPHX), which has reported zero revenues in all of its last four quarters. Moreover, the financial position of the company is nothing but a disaster so far.
The quarterly report for the period ended on January 31, 2015 shows that the company had reported a net loss of $10,000. The company maintains current assets of $52,000, which stacks up against current liabilities of $72,000. The concerning factor is that the company had a cash deficit of $9,000 as on January 31. 2015. By any parameters, the stated financial numbers are far from satisfactory. It raises the question as how TANARIS POWER (OTCBB:TPHX) will fund its operations going forward.
The stock of TANARIS POWER (OTCBB:TPHX) ended nearly 16% higher at $0.724 during the previous trading session. An average of 25,154 shares traded on the day. Tanaris is into designing, engineering and production of the Lithium-Ion batteries.