Sphere 3D: A Risky Investment Move

Sphere 3D is a US-based software company that has never released a commercial product and has a history of de minimis revenues and persistent losses. The company has a poor financial position and has been described as a very speculative penny stock. Its CEO, Peter Tassiopoulos, has a history of involvement with failed companies, and Sphere 3D's management team has been accused of misleading investors. With no meaningful intellectual property or revenues to date, Sphere 3D appears to be a risky investment with a potential for significant losses.

Sphere 3D has a history of de minimis revenues and persistent losses

In 2018, Sphere 3D, the owner of Overland Storage and Tandberg, saw revenues decline and losses deepen in its third quarter. The company blamed an inadequate supply of products to meet customer demand for the revenue decline, which led to a $5.7 million increase in backlog orders. Revenues of $15.9 million were 26.7% down on the previous year's $21.7 million, while the loss of $4.9 million was 40% worse than the $3.5 million reported a year earlier.

In 2023, Sphere 3D reported a net loss available to common shareholders of $23.4 million, or a net loss of $1.93 per share, compared to a net loss available to common shareholders of $192.8 million, or a net loss of $20.36 per share, in 2022.

In 2024, Sphere 3D reported a revenue of $21.9 million, an increase from $6.1 million in 2022.

The company has a poor financial position

Sphere 3D has a poor financial position. The company has a history of de minimis revenues and persistent losses. In fact, Sphere 3D has generated only $671,000 in revenues during its entire existence, while losing a total of $5.2 million. The company is paying out salaries that account for more than half of its losses and are 20 times greater than its investment in research and development (R&D). Sphere 3D has also never released a commercial product.

The company's financial position is so poor that it has been described as a "mirage" and a "scam". Sphere 3D's management team has a history of misleading investors and pulling tricks to make the company seem more appealing than it is. For example, Sphere 3D has announced multiple deals and acquisitions that have amounted to nothing. The company has also released software that doesn't exist and made broken promises about beta versions of products.

In addition, Sphere 3D's CEO, Peter Tassiopoulos, has a history of failed business ventures. He has been associated with multiple companies that have faced litigation or collapsed. Sphere 3D's founders, Mario Biasini and John Morelli, also lack significant public company experience, and Morelli has previously been charged with potential embezzlement of funds.

Overall, Sphere 3D's poor financial position, non-existent revenues, and questionable management practices make it a risky investment.

Sphere 3D has a very high chance of going through financial distress in the upcoming years

Sphere 3D's financial position is poor based on the latest SEC disclosures. The company has about $10.72 million in cash with ($30.77 million) of positive cash flow from operations, resulting in a cash-per-share (CPS) ratio of 0.16. The company's liabilities-to-assets ratio for the quarter that ended in Sep. 2023 was 0.46, indicating that nearly half of the company's assets are made up of liabilities. Sphere 3D's high liabilities-to-assets ratio suggests that the company may have potential solvency issues and could be a signal of financial distress.

Additionally, Sphere 3D has a history of questionable management decisions and associations with fraudulent schemes. The company's CEO, Peter Tassiopoulos, has a checkered past and has been associated with multiple failed business ventures. Sphere 3D has also never released a commercial product despite announcing multiple software releases over the years. The company has a history of broken promises and unfulfilled partnerships, raising concerns about the legitimacy of its operations.

In summary, Sphere 3D's financial distress is likely due to its poor financial position, high liabilities-to-assets ratio, and questionable management decisions. The company's history of losses and lack of commercial products further contribute to its high chance of financial distress in the upcoming years.

The company has a history of misleading investors

Sphere 3D has a history of misleading investors. The company has been described as a "mirage" and a "scam", with a management team that has pulled similar tricks at least once before with Biosign Technologies. The company's CEO, Peter Tassiopoulos, has a "chequered past", having been a senior executive of multiple companies that have failed.

Tassiopoulos was formerly a consultant for Bach-Hauser Inc., which later became Financial Access Technologies, then ABV Gold, and now Pharmacom Biovet. Bach-Hauser's key players faced litigation from the SEC for illegal promotion and later settled. Tassiopoulos was also formerly CEO of Healthanywhere Inc., which is described as a "prior version of Sphere 3D".

Sphere 3D and Biosign Technologies share the same CEO, management team, press releases, partners, and stories. Biosign traded as high as $2.56 on February 11, 2011, but has since fallen more than 98% to $0.04. Biosign announced multiple deals that amounted to nothing and suffered never-ending losses on negligible revenues.

Sphere 3D has never released a commercial product and has paid out salaries that are 20 times its investment in R&D, which is only $200k since its inception. The company has generated only $671,000 in revenues during its entire existence, while losing a total of $5.2 million.

The company has announced multiple deals and partnerships, all the while having no technology, not even a beta version, and no revenues.

Sphere 3D has a volatile share price

Sphere 3D's share price volatility can be attributed to several factors, including the company's small size, limited revenue, and lack of commercial products. The company has a market capitalization of less than $150 million and has reported losses in recent years. Additionally, Sphere 3D has been criticised for its management practices and questionable partnerships, which may have contributed to the volatility of its share price.

Furthermore, Sphere 3D's share price has been influenced by short-selling activities and promotional campaigns. Short-sellers have targeted the company due to its volatile nature and speculative penny stock characteristics. On the other hand, the company has also engaged in promotional activities, such as hiring investor relations firms, which may have contributed to fluctuations in its share price.

Overall, Sphere 3D's share price volatility is a significant consideration for potential investors. The company's small size, limited revenue, and controversial management practices make it a high-risk investment. The volatility of Sphere 3D's share price can lead to substantial gains or losses, and investors should carefully evaluate the risks and conduct thorough due diligence before investing.

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