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<\/p>\ntags: SFOR <\/p>\n
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After logging in four sessions in a row of massive gains and reaching a close at $0.003 at the end of last week yesterday the stock of Strikeforce Technologies Inc (OTCMKTS:SFOR<\/a>) suffered a painful drop. It opened the trading day at $0.003 but it quickly lost its footing and plunged towards the bottom of the chart. When the closing bell rang SFOR<\/a><\/strong> were sitting at $0.0023 for a loss of nearly 18%. Will this be a brief step back or is the stock going to wipe even more of its recent gains?<\/p>\n Well, there aren’t that many pennystocks that can claim to have won a patent litigation against one of the most powerful corporations in the world but SFOR<\/a> <\/strong>did exactly that. On January 15 the company settled its litigation against Microsoft Corporation (NASDAQ:MSFT) and in exchange for licensing its patents to MSFT it received a non-disclosable one-time lump sum payment. The quarterly report covering the first three months of the year revealed that the sum was in the amount of $9.75 million.<\/p>\n Although at first glance this truly seems as a gargantuan success for the company upon closer inspection things start to look far less impressive. First of all SFOR<\/a> <\/strong>had to use over $4.1 million in order to pay the fees related to the settlement litigation. That still left them with proceeds of more than $4.5 million and it allowed the company to pay off some of its outstanding convertible debt. The shareholders still suffered through a disastrous amount of dilution, though, when in less than six months the outstanding shares grew from 22.7 million to over 2.2 BILLION.<\/strong><\/p>\n The quarterly report states that by March 31 1.8 billion shares had seen the light of day at prices ranging from $0.000058 and $0.0008<\/strong> while according to the subsequent events section since the end of the quarter SFOR<\/a> <\/strong>has issued 313 million shares as a conversion of accrued interest on notes with variable conversion features and 155 million shares as a cashless exercise of warrants.<\/strong><\/p>\n