Thinspace Technology Inc (OTCMKTS:THNS) succeeded in filing its 10-K report for FY2014 on time but it hardly did anything to boost the stock price. On March 30, 2015, the stock price witnessed a sharp fall. It was just hours before releasing the financial report. The stock price eroded 15% of its value. It regained some ground in next few trading session but that have come relatively slower. In last trading session, the stock price once again registered a red session with decline of more than 5% to close the day at $0.100.

The downfall

The 10-K report of Thinspace Technology Inc (OTCMKTS:THNS) was accompanied by a cheap promotion done out by several newsletters. The shareholders who have been holding with the stock from a longer time know that a paid pump can result in momentary gains, but in the long reason it can result in a deeper crash. Thinspace first started trading under its current ticker about a year ago, and during this period it became a target of hundred email alerts. It is all because of the touting of the stock. As a result, the share price declined from a high of $0.90 posted in March to $0.100.

The performance

The paid pumps are making investors put in their money carefully. Moreover, the 10-K report of Thinspace is not at all encouraging. As per the last report, Thinspace had cash of $136,000. The current assets came at $412,000 while the current liabilities were $15 million. The annual revenue was $6.2 million. The company posted annual net loss of $8.3 million.

The problem

It is evident from the financials that the colossal amount of liabilities is the major problem. As per the report, almost $2.6 million of liabilities consist of convertible notes. It is important to notice that the recent toxic debt can be converted into THNS common stock at 70% of the prevailing price.