Thinspace Technology Inc (OTCMKTS:THNS) has been moving downhill for the larger part of the past few weeks. This has not been a very promising year for the stock, since it has recorded a decline from $0.15 per share to slip to double zeros. Much of this decline can be attributed to the large number of pumps the stock has been a target of. As per the most recent figures, there have been over 140 promotional mails for the stock this year.
Additionally, the company has mostly remained silent, with the exception of recent news stating that AlarmForce Industries Inc. has selected Thinspace to be the desktop virtualization provider for the company. Unfortunately, the press release was soon followed by a series of promotions, which in turn led to a series of losses, completely wiping of the gains made through the press release. Although promotional emails are aimed at adding to the share value of the stock, they have been doing quite the opposite for THNS.
Furthermore, THNS has also been in a poor financial state, despite repeated increase in sales and revenues. In its latest 10-Q, the company reported that it has generated $790,000 in sales, with cash equivalent of $166,000 and $785,000 in assets. Unfortunately, with the liabilities standing at $15.7 million, the company still reported a quarterly net loss of $272,000. The failure to report a profit, despite the constant rise in revenues has been discouraging for the investors. As is mostly the case with poorly performing OTC companies, THNS has also been a target of severe dilution in the past few months.
The company has a large amount of outstanding debt, which has been issued on convertible notes. During the two months of April and May, the note holders possessed more than 6 million shares. However, the worst is not yet over, since THNS still has a huge amount of unconverted toxic debt, which could lead to further dilution of the company.
Thinspace Technology Inc (OTCMKTS:THNS) lost 6.45% of its share value, after trading 25.93 million shares during the July 13 session to close at $0.0058.