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By Boyan Angelov
Dec 01, 2014

Easton Pharmaceuticals, Inc. (EAPH) Climbs On A Number Of Initiatives

Easton Pharmaceuticals, Inc. (EAPH) issued a press release amid the trading session on last Wednesday, giving a couple of updates to investors. EAPH announced making a 25-40% discount on its products on Black Friday and Cyber Monday.

The company also gave an update on a its venture into the fast growing vaporizer market which it entered a few months ago. As part of EAPH's initiative to establish itself in the sector, the company has been seeking an MMPR license from Health Canada. Easton Pharmaceuticals made an optimistic prognosis for its pending license approval, as the company learned that an entity by the name of Broken Coast Cannabis has received an MMPR license.Easton Pharmaceuticals, Inc. stock chart

EAPH stated that it anticipates being the next company to be inspected due to being one of the first applicants to receive a letter from Health Canada under the newly established MMPR system. The key aspect here is that the company has stated only its expectations and there is no notice from Health Canada on the subject to give an idea of when the licensing inspection will commence.

Earlier today, the company posted another press release, discussing its MMPR application. EAPH announced that it has submitted its 2013 financial audit to two American and a Canadian based medical marijuana growers. The company stated it hopes to be among the next companies to be assessed by Health Canada.

While EAPH's current ventures initiatives are still in their developmental stages, a look into Easton Pharmaceuticals' latest financial disclosure may provide a better idea of the company's long term potential. EAPH just filed its latest quarterly report for the period ended September 30, 2014 on Friday. The disclosure contains the following:

  • Cash: $648 thousand
  • Total current assets: $710.5 thousand
  • Total current liabilities: $138.9 thousand
  • No revenues
  • Net loss: $250.5 thousand

EAPH has managed to improve its assets significantly, while reducing its liability amount. However, the company has ultimately ended the period at a net loss, making for a worse operational performance than the previous few periods. A reason for this may be its inability to make any revenues, which is in any event a red flag about the company.

EAPHThe recent share issuance is another aspect which should be evaluated. In the past quarter, EAPH has issued a total of 5.4 million shares of common stock for the settlement of debt in the amount of $34.8 thousand. Looking through Easton Pharmaceuticals' issuance history, we see the company has used shares to cover due debts on many occasions in the past.

While EAPH has done its best to keep eyes on itself, it stands that the ongoing ventures the company has taken up are pending completion. Investors who are interested in EAPH stock should do their due diligence on the venture before making an investment.

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