LiveWire Ergogenics, Inc. (OTC PINK: LVVV), a terribly under-performing performance nutrition company, is undoubtedly in need of some serious supplements to reestablish their shareholder confidence. Having only briefly visited the penny price tag only once this entire year, LVVV stock has proven to be a momentum play on two occasions which allowed for possible gains 67% at the end of February and 200% at the start of April. Without any news in nearly six months and some interesting events which have occurred during the course of the year, the recent volume is starting to show signs of another one of those chances for gains.
In the past, we’ve covered Livewire Ergogenics a few times and since the calendar change from 2013 to 2014, the message has pretty much been in-line with the chart: negative. The recent volume sessions and the ability for LVVV shares to avoid breaking past that 0.0012 low they set last week has caused us to look deeper to see what it is we’re dealing with here.
An SEC filer, Livewire has kept current with producing the minimum requirements having filed their 10-Q for the three months ended March 31, 2015 just a couple of days after filing their 10-K for the year ended December 31, 2014. Absent of the top line numbers in cash ($0) and gross profit from sales ($8,124), how they stay afloat and how that affects buying LVVV shares is the information we’re hunting for.
The first thing you notice is that the company voted to increase their authorized shares from 200 million to 1.5 billion; a move that had to be done considering how there was no other way to issue shares. Another note was that, in February, Brad Nichols pulled his own plug, resigning as an executive officer and a director of the Board of Directors, leaving Bill Hodson holding the bag that is Livewire Ergogenics.
From the 10-K filing, Nichols and Hodson collectively held 30.32 million shares of LVVV stock, but in the background of their holdings was the 2013 Stock Incentive Plan which had been amended from 5 million to 15 million to now 135 million shares. Now you can dig down as deep as you wish in regards to this, but that “proposed maximum offering price per share” of $0.0055 is not what the buyer would be paying for the shares.
As of March 31, 2015, the remaining balance for notes payable totaled $245,700. Knowing those cheap shares that stem from the S-8 are due to be out there, the debt conversions that took place, a look at what was converted during the course of 2015 indicates a bounce could be coming for LVVV.
In short, 49,219,035 shares were issued from February 9, 2015 to April 21, 2015 for 0.00049, 0.0032, 0.002, 0.0019, 0.0025 and 0.0025 (see page F-20 from the 10-K). With LVVV stock lower than all but one of those conversions (2,448,980 @ 0.00049), are we looking at the retail price lower than the toxic converted price? It will be interesting to see where this recent volume takes LVVV shares.
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