So far, April has been a good month for stock of Advanced Medical Isotope Corp. (OTCMKTS:ADMD) as it has climbed from level of $0.002 to $0.006. However, it eroded a part of its gains in yesterday’s trading session. The stock price declined more than 8% to close the trading session at $0.00530.

The momentum

Since February 2015, the performance of Advanced Medical stock has been amazing. It has surged almost 10005 from its lows of $0.0006. Even on Wednesday’s trading session, the stock added 20% to its value. The last time, ADMD stock traded at such prices was in September 2014. The recent gains can be attributed to company’s plan of improving their capital structure that boosted investors’ confidence, and prompted a much more positive reaction.

The performance

The financials of Advanced Medical do not support the recent price momentum on the charts. As per the latest report released at the end of 2014, the company had just $203 in cash. Now, that is a horrendous figure. The total current assets came at $30,288 and total current liabilities stood at $20.2 million. The annual revenue was $24,108 and annual net loss surged to $18 million. The net loss from operations came at $1.9 million.

The problems

At the end of 2014, Advanced Medical had $600,000 convertible notes payable and more than $11.5 million in derivative liabilities. In past four months, the company issued $378,000 worth of convertible notes. As a result, the outstanding shares grew from 120 million to 1.7 billion in just last one year. As of April 12, the count stands at 1.84 billion shares.

The remedial actions

On April 23, Advanced Medical announced that a deal has been reached with its primary lender, Carlton Cadwell, and almost $5 million of long-term debt will be transformed into a new series of preferred shares. These will be convertible into ADMD common shares at a conversion price of $0.015.