EFSF Delivers Year End Numbers

eFoodSafety finally got their annual 10K filing in late today, and everything is pretty darn ship shape on a go forward basis.

This financial statement is already nearly 3 1/2 months back, so it’s already kind of old news. When you read a 10k, you are looking for negatives the company might not disclose in a public forum. In short, I simply couldn’t really find any.

If you want to look at one minor negative- the number of shares I&O is climbing as the company uses stock to pay for a lot of stuff, raise capital, and reduce debt. As of July 9, there were about 164 million I&O.

On the plus side, the balance sheet is in absolutely great shape for a company in its development stage. They have no long term debt, and had about $1.1 million in cash at the end of April. Restricted shares were sold at $.25, which I believe is a very fair number for shareholders, to raise capital. Debt related to acquisitions was converted to shares at a number above the prevailing market- also more than fair to shareholders.

Revenues, primarily from sales of Cinnergen, climbed to $1.1 million for the year- double the previous year. This suggest a fairly robust Q4 as opposed to Q3 when they were just starting to sell Cinnergen.

All in all, for a development stage company with several commercial roll outs in the pipeline, they are positioned very well. Now, they just need to execute. PurEffect- here we come.

Here’s a look at the chart:

efsf1.gif

The stock has been going through a little consolidation phase, which I believe is a very bullish sign considering the drubbing the market has taken of late.

In short, this stock is poised to run up. I think it’s highly unlikely the stock will go down on the 10k- there really isn’t anything in it to spook investors.

I’ve included the 200 day moving average, which some avid followers of this stock tell me is the key swing point. A stock trading above its 200 day moving average is considered in a long term uptrend. The 200 day MA on EFSF is about $.31.

A little volume surge to the positive and off we go if they are right. Right or not, I believe this one could be setting up for a great second half of the year.

As usual, comments and questions are welcome.

107 thoughts on “EFSF Delivers Year End Numbers

  1. I find it hard to get overly excited about Citroxin.

    What has EFSF done to showcase their ability to ‘close the deal’ to this point? On ANYTHING?

    The company has managed to find a way to botch just about every product they have to date. Whether it be time-wasting improper testing protocol (Oraphyte), Cinnergen (poor marketing), Diabetes Month (I thought they were planning to leverage this?), Cinnechol (delayed / non-existent launch), Pureffect (missed deadlines / absurdly delayed launch), ImmuneBar (vague press releases / non-working e-commerce web site)….and on and on…and on…

    I am tired of the “can you imagine if X product got in the right hands/got bought/launched big” scenario.

    Editor: As are a lot of investors. I feel like it will happen sooner or later, but investors like yourself are justified to be losing patience.

  2. In your recent newsletter, you reference another product as “one unnamed”…is that a hypothetical, or a direct reference to another product you know is in the wings but which you cannot specify at this time? This is the text i’m referring to:

    “…if not more. Pureffect, Cinnechol, Cinnergen, Oraphtye, or one unnamed- ”

    thank you, and happy thanksgiving.

    Editor: To you as well. No, just pointing out you never know which product is going to be the one that takes off. I don’t know of any top secret products that they have, but I didn’t know about the Citroxin application until two weeks ago.

  3. the problem with this company is they have is they have not delivered on any promises yet. This is just another promise until something actually happens from it. Until then the stock will linger where it is. They need one of there products to actually take the next step.

    Editor: Seem like you could be right. However, doesn’t seem like it wants to trade down too much either. So, we have a bit of a stand off for now.

  4. What do you hear about how the immune bar is selling so far? (It can only be purchased via phone – no online ordering yet, as I’m sure you’re aware).

    Editor: They haven’t had a retail product launch yet. I’m sure they’ll let everyone know when they are ready for market.

  5. its almost been a year and this company has not deivered anything it may be time to bail out. maybe they should get a new ceo this is not a travel agency are any of there products for real?

    Editor: The numbers on Cinnergen are not nearly what they forecasted, but coming up nicely. If you don’t want to hang in there, sell the stock. What can I tell you. I believe the stock is more of a buy right now, but I wouldn’t blame you.

  6. What do you think about todays news? Do you think they hit the nail on the head with the delivery through the skin? This could really increase the strength of citroxin. This bolds well for the bird flu and the A and B virus. Now it doesnt have to deal with being broken down in the stomach be the acids our body produces.What are your thoughts?Do you think a large biotech or Pharma Co would love to own this product?I think they would.

    Editor: My comments in a BLOG which I posted after your question.

  7. nothing moves this stock up or down

    Editor: With the way the market has been, not going down is almost like going up.