continued and NEOM added the next 50% to its market price. Along with the price, traded volume of the stock reached approximately 2 million shares and NEOM got overbought.The most reasonable explanation on the up move turns out to be the company’s entry into a few material definitive agreements with a Delaware corporation. The last one was to grant NEOM a five year, non-exclusive, non-sublicensable license to eBay Inc. The agreement states that the license to the NeoMedia’s Barcode Technology and optional license to the company’s Search Technology may be extended for successive 3 year terms for additional license fees from eBay.
Having heard the positive news, traders’ activity increased and the high trade was on.[BANNER]
NeoMedia Technologies, Inc. utilizes the mobile phone by leveraging barcodes as a mechanism to link brands, advertisers, carriers, retailers and consumers using mobile Internet. At the beginning of this month, the company was on low-trade, though since the last news on the company was released NEOM has been climbing up.
According to its 10-Q report, the liabilities of NeoMedia are approximately ten times higher than its total assets and the shareholders’ deficit is over $85 thousand. Besides, the company has a significant net loss, an increasing comprehensive loss and not enough cash to cover them.
Due to all the incurred losses and negative cash flows, the management team states they “currently do not have sufficient cash to sustain us for the next twelve months”. In that case, NeoMedia will need additional financing to execute its operating plan and will depend on the new agreements the company has entered into.
