AIKIDO PHARMA INC (NASDAQ:AIKI)

Yet another patent firm I don’t think very highly of. I know others have hit this one several times, but it looks to me like it needs another whacking. This one has a tendency of being super-volatile so be careful if you are joining me. I didn’t really pay a whole lot of attention to the chart, frankly because I think this is a close to worthless stub as I am able to find in the marketplace.

A bit about the firm:

“We are an intellectual property company that owns patented and unpatented intellectual property. Spherix Incorporated was formed in 1967 as a scientific research company and for much of our history pursued drug development, including through Phase III clinical studies, which were largely discontinued in 2012. In 2012 and 2013, we shifted our focus to being a firm that owns, develops, acquires and monetizes intellectual property assets. Through our acquisitions of 108 patents and patent applications from Rockstar Consortium US, LP ("Rockstar") and acquisition of several hundred patents issued to Harris Corporation as a result of our acquisition of North South Holdings, Inc. ("North South"), we have expanded our activities in wireless communications and telecommunication sectors including antenna technology, Wi-Fi, base station functionality and cellular.”

They’ve been around for a really long time (1967)!!! It looks like they’ve tried several different business plans, and from what I am seeing in their history, they haven’t been very successful in any of them. They have a long historical introduction in the recent 10-K if you want to see more about their travails over the past several years.

It’s obvious on the chart that they have reverse split multiple times in their history. If you go back to May of 2007, the share price after reverse splits is listed at nearly $11,000!!!!! They have about $3.5MM in cash and their free cash burn rate is about $5MM per year. So they have enough for about 9 months, but it’s obvious they are getting close to needing another reverse split and reissue of more shares. This is very, very, very easy points over the long term.

Great going concern statement that EVERY investor should read (and understand):

“We expect that as our business continues to grow we will need additional working capital. If adequate additional debt and/or equity financing is not available on reasonable terms or at all, we may not be able to continue to expand our business or pay our outstanding obligations, and we will have to modify our business plans accordingly. These factors would have a material and adverse effect on our future operating results and our financial condition. If we reach a point where we are unable to raise needed additional funds to continue as a going concern, we will be forced to cease our activities and dissolve the Company. In such an event, we will need to satisfy various creditors and other claimants, severance, lease termination and other dissolution-related obligations and we may not have sufficient funds to pay to our stockholders.”