HDS International Corp (OTCMKTS:HDSI) took a big step into triple zero zone, after crashing more than 18% on Wednesday’s trading session. The stock price managed to recoup deep losses and posted gains of more than 22% in last trading session. It recorded gains of $0.00020 to close at $0.00110 well above the triple zero mark. However, the concern here is whether it would be continue to post gains in the coming days or not.
Unfortunately enough, investors don’t even need to put in a lot of time to do in-depth due diligence. There are a number of terrible red flags associated with HDS International. The latest form 8-K revealed that upon the issuance of 75 million common shares on March 16 and the issuance of 75 million common shares on March 17, HDS International is deemed to have 16.65 billion shares of common stock outstanding. It is a horrifying state of dilution, considering the fact that in the last quarterly report the outstanding shares were 377 million.
The dilution is not the only disturbing fact that the last quarterly report reveals. The financial numbers are dismal as HDS reported cash f just $163 in last financial report. The total current assets were not more than $2600 while total current liabilities were massive at $1.3 million. HDS posted zero revenue, and net loss was $120,000. The number reflects the dismal situation of the company and combined with dilution statistics, it is evident why HDS International stock prices are close to triple zero.
On March 12, 2015 HDS International confirmed that it entered into an ‘intellectual property license’ deal with SirenGPS. It intends to use the opportunities present in the industry of emergency response technologies. It will shift its focus on the development and sale of emergency management software.