Despite the promotion that took place last Friday, the stock of the development stage company mPhase Technologies, Inc. (OTC:XDSL) continues being on the way down in terms of share price. The trading session opened at $0.009 and closed at $0.0085 per share as the volume of traded shares also did not surpass the usual one in the last few months – it was almost 4.5 million. On the other hand, a possibility exists that there would be a delayed reaction to take place in today`s session.
logo-xdsl.jpgAt present, the stock price is very close to reaching the all-time low of last October. In general, it has followed a downward movement since the company was firstly introduced to the stock mXDSL-18.01.11.pngarket some years ago. Also, apart from this negative trend it is also high volatility that characterizes XDSL development on the market.
Now, both increases and declines have their causes. Very often the first followed some very positive announcements from the company, coupled with stock promotions and revealed plans or achieved breakthrough innovations. Yet, the truth of the matter is that the increases were short-lived, as announcements about plans which stay on paper tend not to change the balance sheet whatsoever. Speaking of financial statements, the last one covering the first three quarters of 2010 is in sharp contrast to the announcements made during the same period of time. Key figures to be taken into account are:
  • cumulative development stage losses of $192 million
  • stockholders’ deficit of $5,1 million
  • negative cash flow from operations of $86 million [BANNER]
On one hand, many development-stage companies have similar financial problems. On the other, mPhase Technologies was founded in 1996. Fourteen years later, it is still in the development stage and the only product it can offer is the Emergency Illuminator. Not quite what investors and lenders expect, especially after all the announcements about a revolutionary type of battery to have been developed by mPhase using nanotechnology.
Well, many people see nanotechnologies as the first steps towards entering a new type of technology-based civilization. Thus, innovations in this field can be highly lucrative. Though, it is not the word profit that comes to mind when considering mPhase as an investment option, but rather words like uncertainty and risk.