IMDS share price surged 56.52% up yesterday and closed at $0.036 on a trading volume of over 23 million shares. During the session, IMDS went as high as $0.05, a value that had not been reached since April this year. Along with announcing a major step towards U.S. market clearance for the company’s internationally distributed breast imaging device, one promotional disclosure for IMDS stock appeared. The promoter listed no compensation, but the promotion is likely to have increased substantially the demand for the shares.
It is not known if traders actually believe that Imaging Diagnostic can finally secure sustainable growth of their revenues and get profitable, but the filed last Monday quarter report for the three months ended September 2010 speaks rather for the opposite.
Sales have increased from the previous quarter, but still do not suggest that the business can generate a positive cash flow soon. As of this September, the company has sold 15 of its CTLM Computed Tomography Laser Mammography, the only manufactured product. Since inception in 1993, IMDS has made less that $2.4 million in product sales, a meager amount compared to the $106 million accumulated loss and to the $31.83 current market cap.
Moreover, Imaging Diagnostic has no cash to cover even one third of its expenses in the current quarter. The current liabilities are over $3.17 million compared to total assets of $1.14 and the company is already in default on a large part of its debt. If no cash is raised immediately, it is highly questionable if the company’s laser device will ever get the chance to be launched on the U.S. market even if FDA clearance is given.
