Yesterday, Q Lotus Holdings, Inc. (OTC:QLTS) hit the gain. After being hot and cold over the past days, now the stock is 
climbing up again, convinced to hold the progressive move. However, this time on promotions.
According to the records, QLTS has been promoted heavily since the end of April and currently the promotions continue. The whole campaign cost $75.000 so far, paid by TI Consulting, while some of the promotions have been with no third party involved.
Apparently, Q Lotus has been regularly ensuring its market position, trying to pump up the stock price every time it falls down. Will QLTS manage to hold the gain this time?
In any case, the company used another strategy to climb up – good news. Apart from the promotions, since end-April Q Lotus has been publishing optimistic announcements on a Letter of Intent to loan The Plastics Exchange up with to $25 million. According to the announcement, some time after the closing date, QLTS will have the option to convert the outstanding principal loan amount into an ownership interest in TPE.
Q Lotus Holdings Inc is a development-stage company focused on providing one-stop website for home owners, real estate brokers and flippers to maximize their revenue any time a house they own or represent is sold. Despite the fact that the company has been constantly promoted since last month, the position of the stock has been quite uncertain.[BANNER]
Meanwhile, the biggest problem about QLTS remains the same – poor financials. As of September 30, 2009 the company has not started operations or generated any revenues. According to its 10-Q, by end-December, 2010 the deficit accumulated during the development stage period has exceeded $1 million and the company had no capital to cover the losses.
The management stated that since last March funds were primarily used in operations to formulate business plans and explore opportunities, thus Q Lotus is almost out of cash. In other words, if the company does not raise additional capital for its operations, its continuation will be questionable. Meaning that promotions will not be the right solution for QLTS.
