The next quarter report of IDO Security is probably eagerly expected by investors, as it will show if all the efforts to market the MagShoeTM have managed finally to secure market acceptance for the product that was “ahead of its time” so far and to cure the stable losses. The effects on the share price are more evident though. Promoted each day since the beginning of the month, IDOI added yesterday another 11.11% to its value and closed the session at $0.002 on a trading volume of 271.88 million shares.
The many “milestone events” probably do not sound that credible to traders anymore, but certain third parties keep paying enormous amounts of cash to promote IDOI common stock. Yesterday’s promotion was also part of the long-term $80,000 worth campaign, and last week $200,000 have been paid to a number of other promoters.
At the end of June, the company was in a dire need of cash, having $300,000 in current assets and almost $14 million in current debts, thus it is very questionable if or when cash can be raised. Management’s short-term solution will be voted tomorrow, when a special meeting of the company’s stockholders will take place.
The main purpose is to approve the increase of the number of authorized shares of common stock from 5 billion to 60 billion, the main reason being the large debts and the fact that IDOI share price has lost almost all of its value over the past two years. In connection with the company’s December 2007 Notes and related warrants, 6.16 billion new shares may be issued to repay the outstanding amount, and another 15.78 billion should be reserved for issuance in connection with the issued in 2008 and 2009 notes and convertible preferred stock.
