IFAN Financial Inc (OTCMKTS:IFAN) shares jumped 141.43% on Friday to $0.00338 and fell 11.24% in after-hours trading. Share prices have been trading in a 52-week range of $0.00 to $0.26. The company has a market cap of $322,935.00 at $95.55 million shares outstanding.
IFAN Financial Inc is a development-stage company that engaged in providing a mobile payment solution that utilizes the text messaging function of any mobile phone, as well as providing a secure e-payment solution. Through its subsidiaries iPIN Technologies and Mobicash America, the company designs develops and distributes software that enables mobile payments and has a portfolio of solutions with the ability to use a debit card and corresponding PIN number while purchasing online through mobile phone, tablet or computer, and peer-to-peer cash transfers. Aside from that, it provides business-to-business white label online and mobile payment enabling solutions.
IFAN Financial Inc is due to report its Q3 earnings figures soon and investors are keen to see how the company’s PayX product has performed. PayX is the first fully optimized, integrated mobile solution for merchants with an installed customer base, giving businesses the ability to make a custom, mobile, online, and in-store commerce experience based on their customer’s defined needs using our mobile wallet, smart beacon technology, and payment gateway. Back in August, the company reported revenues of $268,294 from the license of its PayX product as well as processing fees.
The PayX Platform offers an instantaneous method for processing transactions through a mobile device either online or via a physical device. The benefits to PayX merchants are lower processing costs, higher security, and a one-on-one interaction with their customer base. Additionally, merchants receive valuable, purchasing data from their customers which may be used for targeted marketing, loyalty, and promotional programs,” explained IFAN Financial Inc CFO Steve Scholl.
If the company’s numbers show that it made another round of strong revenues from PayX, investors could continue to project more upside for the product and bottom line profits. Note that the company has very little cash on the books, including assets of less than $4.1 million so revenues of around $300K represents a huge boost percentage-wise.
We are excited about our first significant revenue since we began commercialization of the IFAN Financial Payment Gateway and PayX Platform. This revenue reflects initial validation from the marketplace for a seamless solution designed for merchants,” remarked IFAN Financial Inc CEO Christopher Mizer.
A look at the daily chart of IFAN Financial Inc shows that the stock has plenty of room to go in terms of upside. Price still seems to be hovering around the bottom but it does have a history of sharp rallies and volume has been picking up, suggesting that any upside momentum might gain traction on stronger market interest.
Analysts are expecting to see earnings per share of -$0.01 at a net loss of $0.66 million for Q3, larger than the loss of $0.5 million reported in the earlier quarter. As it is, IFAN Financial Inc has been losing money on operations, which explains the bleak forecast, but an upside surprise in revenues could suggest a turnaround for the company and a bottom for the stock. The PayX product offers significant potential, although it does face stiff competition from more established e-payment companies such as PayPal moving forward.
DISCLAIMER: There is a substantial risk of loss with any speculative asset, especially small cap stocks. The opinions expressed are those of the author, and do not constitute recommendations to buy or sell a stock. Do your own research before committing capital.