Yesterday, the share price of Ecosphere Technologies, Inc. (OTC:ESPH) looked like it would hit the six-month bottom, though its fall stopped at $0.40. There is no news from the company since it filed its latest quarter report on Wednesday last week. 
The session closed with a 4.44% decline at $0.43, while the trading volume was more than twice the average for the past three months with 424,000 traded shares. ESPH downtrend stopped in August and since October the stock price is in a trading channel which even the latest 10-Q with the new increase in the revenues and the positive cash flow from operations could not break.
Last Wednesday, Ecosphere filed its 10-Q for the quarter ended September 30, 2011. The announcing press release came on the following day and, of course, it focused on the huge increase in the revenue to $8.2 million for the three months ended September 30, 2011 and the much better cash position of over $1 million. While the company’s management was quite confident in the press release that ESPH would soon get profitable, the financial reports does not hide the negative facts which still remain.
At the end of September ESPH still had a working capital deficit of $2.2 million, and a stockholders’ deficit of $1.5 million. Though, ESPH believes that the recurring revenues from the agreement with certain oil and gas exploration and production companies would provide positive cash flows and the company will be able to cover its obligations.
