Yesterday, the up move continued along with an impressive volume spike for DNPI.The most reasonable explanation on the gain turns out to be the latest news about DecisionPoint Systems, which interested investors. Over the past 2 days, the company has released some positive announcements, reporting its new plan of arrangement along with the news that DNPI has been named a select member of the Motorola Solutions 2010 Pinnacle Club for outstanding sales and partner performance for the last year. On the day before the acknowledgment, DecisionPoint announced that its Grapevine(TM) Push-to-Talk software solution has received Enterprise Mobility Validation from Motorola Solutions, which prepared the stock for the future gain.
DecisionPoint Systems, Inc. designs, implements, and supports mobile computing and wireless systems for the customers. During the past year, there have been huge differences in the company’s share price and now it is interesting how far the stock may go.
The 10-Q report of DecisionPoint looks quite bothering. As of September 30, 2010 the company’s liabilities are higher than its total assets and the accumulated deficit is already over $11 million. Apart from these facts, the company has huge stockholders’ deficit, as well as an $8.5 million line of credit, which is meant to provide for borrowings.[BANNER]
Due to the negative working capital of $9.5 million and the total stockholders’ deficit of $4.4 million, DecisionPoint is dependent on its line of credit and eventually, on its future revenues. The management believes the borrowings will be sufficient to support the operations through September 30, 2011, however, if DNPI is unable to raise funds through private placements the company may need to reduce its selling, general and administrative expenses and to find another way to cover its liabilities.
