Strikeforce Technologies Inc (OTCMKTS:SFOR) has finally released its 10-K report, for the period ended December 31, 2015. As was expected, the company posted yet another net loss, worth $1.8 million. Furthermore, Strikeforce’s cash and revenue position were disappointing as well, standing at $37,000 and $271,000 respectively. However, the real red flags in the report were the liabilities and notes payable of SFOR. The company had $13.5 million in liabilities and $2.2 million in notes payable.
In the 10-K filing, SFOR management stated that the company was experiencing a continued growth in demand for its products, but the 10-K painted a completely opposite picture. The revenues of the company for the period ended December 31, 2015 were actually lower than that in December 31, 2014, by 16.4%. SFOR, however, did reveal plans to develop global resale and distribution channels, in a cost-effective manner, which would minimize the need for an increased staff.
Although the company’s stock position seems bleak at the moment, with 2.1 billion shares outstanding, SFOR has been known to exercise reverse stock splits sometime between the first and second quarter of the year. Furthermore, SFOR attributed the decline in revenues to decreased hardware and maintenance sales. The company also stated that it had suffered some delays, in realization of revenue from its new distributor and the rollout of its mobile security technologies. The management stated that it has some pilot programs, scheduled for launch in 2016, which it anticipates would help boost revenues.
Apart from declining sales, the company also reported a decline of 12.6%, in its cost of revenues. However, a closer look revealed that cost of revenues as a percentage of revenues actually increased by 0.2%, hinting that the management had not been exercising any cost initiatives. Despite the poor performance, Strikeforce was able to lower its net loss by 46.1%, on a year-over-year basis.
Strikeforce Technologies Inc (OTCMKTS:SFOR) had a trade volume of 355.38 million shares and lost 11.11% of its share value, during the April 15 trading session, to reach a close at a share price of $0.0008.