The problems of Medbox Inc (OTCMKTS:MDBX) seems to be far from over. At the start of the year, no one expected the company’s stock to decline from levels of above $6 to as low as $0.20. Unfortunately, in just few trading sessions, the stock price eroded over 90% of its value. The stock has managed to post only a single green trading session in this month. With each passing day, the stock is making new 52-week lows, all thanks to the restated financial reports.
The problem for Medbox started when the company had to restate its financial reports. The restated reports highlighted the discrepancies which were pretty enormous. The report for the first quarter of 2015 revealed that the company cash reserves were $92,000. The current assets came at $1.48 million while current liabilities were $10.27 million. The revenue in 1Q2015 was $41,000 and $4.43 came as net loss.
The discrepancy, as revealed by the financial reports, was not the only problem that resulted in Medbox’s decline. The discrepancy in revenue recognition prompted SEC to conduct a investigation. It was even followed by a series of class action lawsuits from numerous law firms. The company issued several measures to boost investor confidence but all efforts went in vain. At the start of this week, the company reported that they will be participating in the Viridian Capital investor conference to be held in New York. However, the PR failed to support the stock that has been moving sharply down on the charts.
Medbox Inc (OTCMKTS:MDBX) stock declined over 11% in yesterday’s trading session and slid to a close at $0.210. A total of 792,408 shares changed their owners compared to average share volume of 581,501. As of now, there are no signs of MDBX recouping its losses and gaining some ground in coming trading sessions.