Imaging3, Inc. (OTC:IMGG) is on the progressive move again. Yesterday, the stock hit an impressive gain by soaring the next IMGG_chart7.png16.36% on the market and trading over 1 million shares for the day. The question is, what has caused the unexpected gain?

According to the records, there is no fresh news on Imaging3 this week, though the stock price jumped up. In this case, the only reasonable explanation on the gain remains the new CCI buy signals on Internet, which appeared on Monday.

Last week, IMGG issued a letter to its shareholders, explaining the current situation in the company as well as the FDA approval which is still expected. These publications have probably given new hopes to investors, despite the fact that in fact Imaging3 did not report anything new these days, apart from its latest quarterly report.

Unfortunately, the 10-Q cannot be a reason for the price jump of IMGG. According to the report, by end March this year the company’s total assets have decreased, while its liabilities and the stockholders’ deficit exceeded $5 million each. Meanwhile, the accumulated deficit jumped over $17 million and put another burden on the company’s management.[BANNER]

Imaging3_logo.jpgBased on these financial results, the team claimed that the continuing losses have adversely affected the liquidity of Imaging3, though the losses are expected to continue. Thus, a “Going Concern Qualification” was included in the company’s financial report.

Management’s plans include seeking additional capital and/or debt financing, however, as already reported on, this may lead to dilution for the stockholders and even to greater losses in future. In this case, how long may the current up move resist?