soared 50% sharp and its traded volume spiked over 2 million shares. However, what has provoked the unexpected gain is yet a mystery.According to the records, Mandalay Media has not published any news on its business recently and no one is familiar with its activities. Though, it looks like something is about to happen with the stock as its market position has changed significantly.
NeuMedia, Inc., formerly Mandalay Media, Inc., operates through the wholly owned-subsidiaries Twistbox Entertainment, Inc. and AMV Holding Limited. In June 2010, NeuMedia reported it has reduced its debt by $23 million and has raised additional $2.5 million. Though, since then not much has been said neither about the company, nor about its subsidiaries.
Regarding its financials, Mandalay’s latest 10-Q report shows that the company’s liabilities are close to its total assets, while its accumulated deficit reached over $95 thousand. Besides, MNDL also has other losses uncovered and lower revenues as compared to the previous quarter.[BANNER]
According to the financial report, Twistbox has incurred losses and negative annual cash flows since inception and it had a deficit in net current assets of $4.5 million on December 31, 2010. Besides, the company has significantly reduced its personnel and other overhead costs over the last year to address a decline in revenues and margins, and is likely to continue to do so in the short term.
Its primary sources of liquidity have historically been issuance of common and preferred stock, and in the case of Twistbox, borrowings under credit facilities. In future, the team expects its primary sources of liquidity to be cash generated by operating activities, further borrowings or further capital raises. However, the sale of convertible debt securities or additional equity securities could result in additional dilution to the stockholders or restrict the company’s operations.
