Strikeforce Technologies, Inc. (OTC Pink: SFOR) is engaged as a cyber defense and data breach protection company. Shares of the cyber security company gains 10.47%, through early trading on Tuesday, September 19, 2017. Over the past month, Strikeforce Technologies, Inc. has seen average daily volume of 6.56 million shares. However, volume of 2.1 million shares or dollar volume of $17,010, has already exchanged hands on Tuesday.
Shares of Strikeforce Technologies, Inc. are gaining today, despite the fact that the company’s distributor, WYNIT Distribution, LLC, filed for Chapter 11 bankruptcy protection. As a result, the company expects to receive about $72,000 in revenues from consignments and assets from distributions. Management does acknowledge that there are no guarantees as bankruptcy court recognizes Strikeforce Technologies, Inc. has an unsecured creditor. Here part of the 8-K filing detailing of the distributor bankruptcy:
Strikeforce Technologies, Inc. 8-K Filing:
ITEM 8.01 OTHER EVENTS
On September 8, 2017, the Company’s retail distributor, WYNIT Distribution, LLC, filed for Chapter 11 bankruptcy protection in the Minnesota Bankruptcy Court (Bankruptcy Petition #17-42726). WYNIT serves a wide range of customers, including large national retailers such as Home Shopping Network, Office Depot/Max, Best Buy Canada, Staples and others as well as smaller independent resellers. Management estimates that the Company would have received approximately $72,000 in revenues through consignments and assets resulting from WYNIT distributions, primarily in the latest quarter. Management will file the appropriate forms, for the benefit of the Company, with the Minnesota Bankruptcy Court but recognizes that the Company is an unsecured creditor and may not receive any material amount of the anticipated revenues.
Management does anticipate revenues from other transactions currently in progress as well as recognizing that new retail sales will be forthcoming with the same or similar vendors once a new distributor is engaged (currently in the process of being retained). No assurances can be provided that such revenues will be realized or that there will be any recovery from WYNIT.
Here is the link to the full 8-K filing: https://www.otcmarkets.com/edgar/GetFilingHtml?FilingID=12282547