market and its traded volume exceeded 2 million shares for a day.The question is what explains the gain as Echo has not released any news about its business since mid-November. Then, the company was invited to participate in the 2010 Mobile Marketing Association Forum in Los Angeles. However, after that no further announcements on Echo Metrix have been published. Looks like something has grabbed traders’ attention after all, something that is still behind the curtains.
Echo Metrix, Inc. is a software development company that maintains core technology for analyzing digital data streams. Through FamilySafe, Inc., its wholly owned subsidiary, the company operates FamilySafe Parental Controls. On Nov 29 an Initial Statement Of Beneficial Ownership Of Securities appeared on otcmarkets.com. According to it, in October Mr. Olbres Matthew, Director of EHMI, has obtained a certain amount of the company’s common stock directly or indirectly. However, the reason for this purchase remained unknown.[BANNER]
According to its 10-Q report, Echo’s liabilities are approximately 7 times higher that its total assets and the company’s accumulated deficit is higher than $38 million. Echo hasn’t covered its operating loss and stockholders’ deficit, while its revenues have decreased and the company has no sufficient cash to cover the losses.
Since inception Echo has funded its operations with stockholder loans, by issuing notes and by the sale of common and preferred stock. The management claims that “If the Company does not generate sufficient revenues from the sales of its products in an amount necessary to meet its cash needs, the Company will need additional financing to continue to operate”. Thus, Echo is highly dependent on raising additional funds over the next twelve months and on higher sales to continue operation.
