Max Sound Corp (OTCMKTS:MAXD) issued last press release in April wherein it stated that it finalized a term sheet for Imperalis’ acquisition of its specific MAX-D Audio Technology. The purchase price that was decided amounted to 48 million shares and thesewere restricted shares of common stock. This deal do not include the MAX-D brand, Android and iOS MAX-D consumer apps, the client database and retail stick drive product. The company will also retain a part of existing sales for two consecutive years.
The performance
During the same period, the company updated that it has paid all its debt, and it was welcomed by the market. The convertible debt amounted to $3.6 million, which could have devastated the share structure of the OTC firm. However, this excitement failed to linger for an extended period, as a couple of weeks later, Max Sound reported that the count of issued and outstanding shares stood at 647 million shares compared to 285 million a year ago. It suggests that investor value has been damaged quite a lot already.
The financials
As per the latest 10-K, Max Sound reported cash of $211,000. The total current assets stood at $330,000 while total current liabilities came at $7.3 million. It should be noted that the company has not generated any revenue so far, while loss from operations in reported period was $5.5 million.Nearly $5.8 million of the firm’s debts were a result of derivative liabilities and convertible notes. It leaves ample space for severe dilution, and therefore investor should bear in mind that any outstanding notes can be converted at almost 40% discount from the current price.
To conclude, investor value for Max Sound shareholders is far less safe when compared to the company’s promising press release. On top of that, the company is racking massive net loss with no revenue generation.
OXIS International, Inc. (OTCMKTS:OXIS) Provides Update on Ongoing Clinical Trials
OXIS International, Inc. (OTCMKTS:OXIS) recently issued a letter to shareholder reiterating its plan for the year as well as progress on ongoing clinical trials. Carrying out Phase 1 and Phase 2 clinical trials on lead candidate drug OXS-1550 is top of the agenda as the company looks to come up with the next big thing on the treatment of Leukemia and lymphoma. Enrollment of new patients in OXS-1550 has already begun.
The immuno-oncology company has also confirmed that a trial on OXS-4235, a novel treatment for multiple myeloma, is going on well. The drug has already proved to be effective in killing multiple myeloma cells while decreasing osteolytic lesions in bone. Oxis is also working on OXS-2175 a therapeutic treatment targeting breast cancer.
In addition to advancing the product pipeline OXIS International, Inc. (OTCMKTS:OXIS) is also working on a number of partnerships that it hopes will lead to more shareholder value going forward.
