Despite producing no revenues for the three years they have been in existence Inolife Technologies, Inc. (PINKSHEETS: INOL) continues to attract attention from investors, closing Thursday’s trading session with volume that topped the 7.8 million mark with their share price ending the day at 0.0024. While that closing was nearly 15% higher than the closing mark for Wednesday it was a significant slide from the 0.0054 it reached during Thursday’s session. That slide has continued into Friday with shares currently moving around the 0.0017 level.
It shouldn’t take investors long to discover the catalyst for Thursday’s volume surge and share price bump given the fact INOL hasn’t distributed a press release in nearly three months. Investors weren’t reacting to company developments, an announcement of revenues, or a new partnership but rather a promotional campaign that is focusing on the company; a company that says its mission is “to aggressively identify, manufacture and market innovative and affordable healthcare products and services directly to the marketplace.”
Just how aggressive is a company that can’t generate revenues for three years? Not only is INOL revenue-challenged, they appear to have a spending problem as they reported a net loss of $2,730,129 for the year ended March 31, 2012. INOL’s greatest expense was for consulting services, services that totaled $1,879,639 for the year.
Needless to say whatever INOL has been hearing from consultants related to business development they may want to reconsider if they’re serious about making money. That being said, in their most recent annual report released on July 19, 2012 INOL identified two main goals for the next twelve months:
First, the Company currently intends to identify, develop and market multi-faceted, human diagnostic product lines marketed towards both potential professional medical and retail customers. Based upon the Company’s recent execution of a Strategic Alliance Agreement with InoHealth Products, Inc., the Company currently markets product lines that pertain to human genetic DNA testing. Aligned with the Company’s plan, the Company acquired Stemtide Inc. on July 7, 2011. The Company acquired Stemtide Inc. for their ability to manufacture and market various products that may potentially be developed from revolutionary patent pending formulas for activation of endogenous stem cells for multiple uses including age reversal, follicle growth stimulation, skin repair, and acne formula. The initial product consideration planned is to be the aging product.
Investors should check the number of companies that have put out aging products over the past few years, the numbers are staggering and the success stories are few. To think that INOL has any chance at being one of those few may be a bit over-optimistic.
That over-optimism isn’t exactly felt by everybody as INOL noted in that annual report “We continue to actively seek investment capital. At the present time, however, we have had limited commitments from funders to provide us any additional funds.” They have limited commitments because they aren’t producing anything to invest in, it’s that simple.
This leaves them with one option, in order to fund their operations over the next twelve months INOL will have to raise capital through loans and/or sales of their common stock. Taking these steps will only dilute their share value, something shareholders abhor. Not only will it lower the share value, it would be naïve to think that the capital raised would actually lead to INOL producing revenue.
Back in May INOL announced they had appointed LWR Partners, Inc., “to advise and assist in bringing to market its new line of all natural skincare products, including its patented revolutionary formulas for activation of endogenous stem cells for multiple uses including age reversal, follicle growth stimulation, skin repair and acne treatment.” Before investors place their bets on INOL they should find out how close the company is to reaching this stated goal.
