ImageWare Systems Inc (OTCMKTS:IWSY) Grates to New 52-Week Low

After a disappointing second half of September and a bit of sideways drifting in October, ImageWare Systems Inc (OTCMKTS:IWSY) screeched its way to a stop at $1.25 per share. This is the company’s lowest close for the past 52 weeks. IWSY touched its lowest intra-day price for the same period on Friday, slipping to $1.20 during the session.

The company has been keeping a very low profile in terms of PR and filings over the past few months. IWSY‘s filings feed has been nothing but Form 4 submissions since early August, when a conference call transcript was put up, discussing Q2 performance.

IWSY‘s name comes up occasionally in news posts on the company’s PR feed in Yahoo Finance, but the last few entries were largely inconsequential from a material point of view, announcing participation in more specialized security website interviews.

IWSY‘s latest quarterly report contained the following in its balance sheet:

  • $6.4 million in cash and equivalents
  • $1.8 million in current liabilities
  • $1.6 million in Q2 revenues
  • $1.7 million in Q2 net loss

The small boost in revenues QoQ came along with a significant reduction of expenses, which in turn led to smaller net loss compared to the previous quarter, when IWSY logged $2.3 million in Q1 loss.

The company scored a three-year licensing deal with Lockheed Martin, which was one of the highlights of the Q2 results report. The company also discussed its current cash availability and the opportunity to “dip into” another $3.1 million line of credit, which management thinks will not be necessary. IWSY anticipates to go cash flow positive within 2015, according to CFO Wayne Wetherell.

With IWSY dropping to 52-week lows, some traders are cheering and are swearing up and down discussion boards that they are loading up on cheap shares. Only time will tell whether IWSY has indeed found a bottom at this price level.

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