PositiveID Corp (OTCMKTS:PSID) has been the target of a series of declines in the market, recently. Even though the company has been making significant progress with its handheld pathogen detection system, Firefly Dx, PSID has not been able to attract significant investor interest in recent weeks. The main reason for the decline has been attributed to the poor financials highlighted by the company in its 1Q2015 filing.
The 1Q2015 report had revealed that PSID has just $598,000 in cash reserves and just $131,000 in revenues, while the liabilities stand at $9.7 million, resulting in a net loss of $3.8 million. Even though poor financial reports are a bit of a norm for the OTC markets, PSID is also affected by severe dilution. In the last 6-months the company experienced an increase of over 100 million outstanding shares. However, the greater part of these shares was associated with unpaid toxic debt. To make matters worse, PSID still has a large amount in unpaid toxic debts, which could result in further conversions to outstanding shares. It is also important to note here that the company has recently increased its authorized shares from 970 million to 1.97 billion.
With the overwhelming risk of severe dilution, with meager revenues and just a single potential product in the pipeline, it is no wonder that PSID has been losing its ground. Additionally, the stock has been part of a number of paid pumps recently, none of which have been able to produce lasting results. Recently, PSID and its Firefly Dx were featured in Wealthy Biotech, which apparently sees the detector as a big winner. Even though the company has potential buyers for the handheld system and it even has an agreement with Directview (OTCMKTS:DIRV). Unfortunately, the potential revenues from the sale of the system does not seem sufficient to investors, so as to outweigh the existing debts.
PositiveID Corp (OTCMKTS:PSID) gained 9.72% during the July 9 session to reach a closing price of $0.0316, after trading 6.39 million shares.