In early July, we wrote about Code Rebel and the dramatic drop in their stock price from their 52-week high of more than $44 to a then price of $24. The last half of July was even less kind, with Code Rebel’s stock falling by more than half again. For the month of August, CDRB has been bouncing around the $10 mark. From the high-point since their spring IPO, CDRB is down about 80%.
However, news out of Code Rebel is seemingly good. In the past couple of months, they’ve announced an acqui-hire, a list of Fortune 500 customers, and the hiring of “renowned futurist and former Apple executive,” Dr. James Canton.
In an email to Aloha Startups, Arben Kryeziu, Code Rebel’s CEO, explained that Code Rebel’s “core focus has been distributing our software suite nationally and international. Since the sales cycle is 3-6 months, we just now are seeing the results trickle in.”
“Our core objective this summer was to ensure that we release our product update with the latest OS X release – but also to slide in the new features such as Remote USB and File mapping which have been cooking in our Dev team department for a while and our clients are eagerly awaiting this feature since it completes the thin environment ecosystem compliance in the RDP protocol specifications.”
Regarding the acquisition of Houston-based ThinOpps Resources, Kryeziu said that it allows them “to be directly involved with the software integration and get the feedback first hand from the client – but also understand from our team in Texas what issues or feature requests come up.”
As for the future, Kryeziu stated that, “Exciting next steps are on the horizon, now that the summer is over and we go into a better business cycle.”
The acquisition of ThinOps is of particular interest, since it is a one-person “management and technology consulting services firm” and Code Rebel paid that one person about $750,000 in cash and $8.5 million in stock (now worth just over $6 million). In a press announcement at the time, Code Rebel said that ThinOps had over $2 million in revenue for 2014 and that Thomas Moreno, the owner, would stay on as president for three years.
Currently, CDRB is up nearly 3% today to $9.31, giving them a market cap of a bit over $118 million.
* I’m not counting Flikdate, since they are traded over the counter, reported a revenue of zero and “a severe working capital shortage”, lost $3 million in the first half of 2015, spent $636,500 on consulting in Q2, and issued $150,000 in convertible notes to fund operations. In other words, they’re on deathwatch…