We covered a lot of failures lately, and they just keep coming. Latest addition for our entertainment is Imaging Diagnostic Systems, Inc. (OTC:IMDS).
The price might look high for now, but surely the fact it’s constantly pushed against support @ $0.05 is worrying. Isn’t it? Well, ok, they have this $2.3 stock offering secured and all, but they lost the same amount in just 6 months in 2009. And most expenses were not even R&D, but SG&A.
I just love how the company gives a heads up on what’s coming:
Our currently authorized common stock may not be sufficient to satisfy our financing needs.
The Southridge Private Equity Credit Line may not be available when we need it, thus limiting our ability to bring our CTLM® to market.
We have had and may have to issue securities, sometimes at substantially below market price, in order to pay off our debts which may further depress our stock price and dilute the holdings of our shareholders.
Conversions of our convertible preferred stock and exercise of our convertible debentures and warrants may cause a change of control and other detrimental effects to the value of our shareholders’ holdings.
Etc, etc.. What they are really trying to say is that things are not going good and they need more money get their product out. Thing is, they’ve been working with their CTLM since 1993 and its still not out in the market. IMDS doesn’t even have the Pre-Market Approval from the FDA. Costly things are to come and these guys don’t expect revenues for the coming 12 months. How do you think the price is still holding altogether?
