Until yesterday, LYFE Communications, Inc. (OTC:LYFE) had been making corporate history on the stock market. Nine consecutive positive sessions and a cumulative price increase of 574% were brought to an abrupt end during the Sep. 8 trading session in which LYFE stock went down 20% to $0.135 per share.
The volume also failed to make any significant impact with some 76 thousand shares changing hands which roughly accounts for one fifth of the 30-day average trading volume.
LYFE’s successful run started on Aug. 31 when the company informed its customers that it would improve the quality of its services. Back then, third parties immediately tried to capitalize on the news by putting $8 thousand into a promotional campaign. Since the latter eventually bore substantial fruit, it is no wonder that this time the company itself applied the same formula yesterday shortly after it issued another press release.
In other words, the news about a fifty-percent increase in the number of subscribers over the last three-month period practically led to a new promotional wave evaluated at $6,400 plus 400 thousand restricted 144 shares of stock. As mentioned above, however, the new promotion is a direct result from an investor relations contract signed between LYFE and Pentony Enterprises LLC. Contrary to all expectations, the impact of this move has so far been slim to none.
LYFE’s second 10-Q report for 2011 saw the light of day more than two weeks ago, but only to reveal:
- cash reserves of $26K;
- current assets in excess of $180 thousand as compared to $63 thousand as of Dec. 31;
- $2.57 million in current liabilities vs. $1.66 million accrued in Q4 of 2010;
- $95 thousand in revenue, which marks a three-fold improvement over the same quarter of 2010;
- a quarterly net loss of $1.72 million as opposed to $6.4 million incurred during the three-month period ended Jun. 30, 2010.
Unlike many other penny stock companies, LYFE Communications, Inc. appears to have real business operations and its revenues have enjoyed some steady improvement. Yet, the company’s liabilities considerably exceed its assets and it will take a while before LYFE goes in the red.
