Andiamo Corp (OTCMKTS:ANDI) On The Verge Of A Breakout

A few weeks ago, we published our first article on Andiamo Corp (OTCMKTS:ANDI), which is focused on the development and distribution of mid-market smartphone. It was named "Andiamo Corp (OTCMKTS:ANDI) Climbing Up The Charts," which included many good points about this new runner.We noted that a lot of new apps, features, and partnerships were to be released in the coming months. We also observed the hire of the big fish in the startup universe “Mr. Darryl V. Green”. Additionally, we remarked that the market had correctly identified these announcements and ANDI had become an exciting business profile. We concluded saying that it was a good name to follow closely and believe today that it was a great decision.From trading at the level of $0.0008 at the beginning of December, the share price has jumped to hit six-month highs of $0.0024. These are extraordinary returns even for an OTC stock. We don't really know how long this upward trend will last. Thus we will try to inform our readers very often.Have a look at the most recent price action before we assess the new developments: 1-year chart for ANDIFor starters, ANDI was incorporated in Delaware on September 21, 2017. It is mainly interested in the acquisition of intellectual property in complementary technology firms. But, what the market seems to appreciate the most is Utopya smartphones, which is said to be positioned as one of the only mid-market smartphone companies to offer a proprietary software experience to its customers.The company will not take toxic debt and will not execute a reverse split The most interesting for shareholders is what the company communicated on December 20, 2017. ANDI published a statement noting that no toxic debt will be issued and the reverse splits will not be necessary. It is a significant announcement that should make many interested in the company.Why?Toxic debt refers to loan or notes that have a low chance of being repaid with interest. As a result, the interest expenses that companies have to pay to toxic debt holders is quite high. That's not all. Many times this type of debt can be converted into shares, which increases the risk of shareholder dilution.Market participants know very well that the company owns old debt like other old and mature businesses. That's why they are asking management how it is dealing with debt holders. In our opinion, ANDI is responding in a very beneficial manner noting that no shareholder dilution will be accepted. Additionally, reverse split, which many times damage the image of the company, will not be an option.Read the following answers carefully:

"Question: What has been done with old debts?Answer: We are negotiating those and they will be settled without diluting the stock." SourceQuestion: Will the company do a reverse split?Answer: We do not feel that is necessary and with our projections we feel we can see the price per share reflect our value." Source

ManufacturingThe management also said that the new phones would be ready through retail channels in mid-late 2018, and the first units are currently being tested/vetted. We appreciate that the company provides detailed information about the process. We believe that it offers a market opportunity. Following the company's announcements, we can know how advanced is the production process, and consequently, deduce how long we will need to wait until the first revenues are received. This information will move the share price and may deliver stock returns to market participants who are alert.The new financials are outIn our opinion, the market should have appreciated the latest quarterly report released on December 20, 2017. In the financial statements, we could read that the balance sheet is solid with $155,165 in total assets and only $44,500 in total liabilities.There is more.We assessed carefully what's the assets and found out that the most significant is the software developed by the company. Market participants, who only looked at the accounts, may not have recalled it as it is hidden in Note B. In our opinion, it shows that the company is working in something innovative that will be released when the new phones are sold.Have a look at it in the following image: Property and Equipment - Andiamo Corp OTCMKTS:ANDIRegarding the income statement, for the quarter ended October 31, 2017, the revenues reported were of $977, while the operating expenses were equal to $1,035. As a result, the net income that resulted from the quarter was a loss of $58; a negative effect that is quite usual in emerging companies.The company is trying to enhance the financial position by selling non-core assetsThere is another interesting fact to point out, which only a few may have seen. We could read in the report that the asset Campaign Matrix is being sold. Read the following text carefully:

"During this period, we were successful in obtaining a buyer for the asset Campaign Matrix. It was listed through a business broker on the open market and was completed as an arm’s length transaction with a non-affiliated party." Source

Shareholders usually appreciate this type of transactions, as they bring cash to finance other activities. If a reasonable price is obtained, the number of assets could increase. Thus, we will be ready to assess the next quarterly report. Our readers should do the same since it could move the share price up.ConclusionCurrently trading with a market cap of $6.2 million, ANDI is an exciting story among small caps. We believe that good news should come in this new year “2018” about the manufacturing of new phones. That's, in our opinion, the most significant catalyst that will be driving the share price.To sum up, if we liked the returns delivered in 2017, we could expect something similar in 2018.Be sure to check out our coverage on ANDI!We will be updating our subscribers as soon as we know more. For the latest updates on ANDI, sign up below!Disclosure: We have no position in ANDI and have not been compensated for this article.Image courtesy of Mr. Nixter via Flickr