After hitting rock bottom last Thursday, the stock price of Hi Score Corp. (PINK:HSCO) doubled its value yesterday, closing at $0.0002 per share. Though marking a twofold increase, this price must have provoked little interest among investors as the traded volume only reached 115.8 million, failing to surpass the average value of 116.3 million.
On Jan.10 HSCO officially announced it had taken on a new official to serve as CEO of one of the company's most recent acquisitions DMD Lighting & Energy Control Systems Inc. The management foresees a gross revenue of $500K per quarter, starting from Q2 of 2011, as a direct result of the merger. That same announcement was the subject of massive news alerts by stock promoters both on Friday and yesterday.
Hi Score Corp. was founded in 1995. Its core activity is the manufacturing and distribution of eco-friendly lighting equipment. On July 1, the corporation moved its domicile from the State of Delaware to the State of Florida. At that time, in accordance with its articles of incorporation, the number of shares of authorized common stock, par value $0.0001, was increased by 390% up to 490 million.
HSCO's latest financial report was disclosed in November and covers Q3 of 2010. At first sight it reveals a working capital surplus of $115 thousand. In reality, however, this surplus only exists on paper as $160K (or 35%) of the company's current assets are represented as accounts receivable. The direct result of HSCO's overall activity during Q3 of 2010 is a net loss of $230 thousand, exceeding the same figure for Q3 of 2009 by 60%. For the firs nine months of 2010, the company's net loss stretches to $525 thousand as compared to the loss of $230 thousand for the same period in 2009.
So far, only 37% of the company's 490 million authorized shares are outstanding. That leaves a lot of room for future financing through the issuance of additional stock. Investors should, however, proceed with extreme caution, because only six months ago HSCO shares were traded $0.07, i.e 350 times higher than the current price level.