week, yesterday the stock moved back down on the chart. Though, maybe ECRY still has the opportunity to climb up due to the latest promotions of the stock.Yesterday, ECRY started a promotional campaign reporting that the company has just appointed a former congressman to its board. The stock alerts appeared on a couple of promotional websites that have received a compensation of $10.000 for the campaign. The paying party was not revealed, though the promotions most probably will heat up ECRY’s market position any minute.
In fact, by releasing the news on the company’s new appointment, eCrypt Technologies has additionally secured its stock price with optimistic statements and future projections for its new product. Yet, only time is capable of proving the expectations of the management team.
eCrypt Technologies, Inc. is an information security firm focused on ease of use and end user control. Apart from the congressman appointment, the company has not produced much news on its business, excluding its recent financial report. However, it does not look as inspiring as the management’s statements.
By December 31, 2010 the liabilities of eCrypt were more than five time higher than its total assets and the stockholders’ deficit has exceeded $205 thousand. Meanwhile, the company’s net loss has been increasing as well as its accumulated deficit during the development stage period.[BANNER]
eCrypt anticipates that it will require approximately $4 million of working capital to complete all of its desired business activity during the next twelve months. Thus, the management plans to seek additional capital through a private placement and public offering of its common stock. However, the team claims that the company’s ability to continue as a going concern is dependent upon its ability to generate profitable operations and/or obtain the necessary financing and repay its liabilities. So, in case ECRY doesn’t find a way to achieve profitability, its future existence might be questionable.
