Will MassRoots Inc (OTCMKTS:MSRT) Survive Or Collapse?

Is MassRoots Inc. (OTCMKTS:MSRT) on the brink of collapse? That’s the big question as management squabbles and disappointing financial results continue to arouse concerns among Investors. The stock finds itself in unfamiliar territories having been on the receiving end for the better part of the year. Stock performance Since the start of the year, MassRoots stock has been on a free fall and is currently languishing near all-time lows. The stock is down by more than 70%, for the year, as short sellers continue to pile pressure. However, the stock has come to life in recent weeks, after bouncing back by more than 50% over the past one month.MassRoots faces immediate resistance at the $0.36 handle, a close above which could see the stock making a run for the $0.54 mark. However, given the strong selling pressure, chances are very high the stock could continue to trade lower. MSRT Daily ChartOn the downside, the stock faces immediate support at the $0.18 handle, a close below which could see it drop to 52-week lows of $0.12 a share.Even though MassRoots is one of the largest technology platforms for the regulated cannabis industry, it finds itself in a tight spot. After reporting its worst-ever fiscal quarter, the company’s future has been thrown into disarray by an ongoing lawsuit lodged by the former CEO, Isaac Dietrich.MassRoots Business Overview MassRoots bills itself as a leading technology platform for the regulated cannabis industry. Through its mobile apps, the company empowers more than one million registered users how to make informed cannabis purchasing decisions.Consumers also use the company’s apps to make reviews of various cannabis strains and product. The company’s point of sale system, MassRoots Retail, enables cannabis businesses to streamline retail operations and manage compliance reporting to state regulators.While the company has a significant market share for medical cannabis patients and more than 25,000 shareholders, sideshows threaten to adversely affect its competitive edge.MassRoots HeadwindsInvestor confidence on MassRoots has taken a hit following revelations that former CEO misappropriated funds. The company in a lawsuit alleges that Mr. Dietrich, caused the company to make unauthorized payments to him and third parties. The company says it lost in the excess of $250,000 as a result.The lawsuit goes on to claim that the former CEO, violated a Separation Agreement signed with the company.The company’s management has further been thrown into disarray with the resignation of Vincent Keber and Terrence Fitch from the board of directors.While the resignations are not as a result of disputes or disagreements with the company, it raises serious questions among investors of what could be happening behind eh scene.“Our last fiscal quarter was the worst quarter MassRoots ever recorded, and it was all Isaac Dietrich's doing. Moreover, misappropriation of Company funds and illegal drug use at the workplace are unacceptable on any level. We intend to enforce the standstill provisions of the Separation Agreement as we believe engaging in a protracted proxy contest now would be a huge waste of our Company resources,” said CEO, Scott Kveton.For the Three months ended September 30, 2017, MassRoots generated revenues of $11,516 compared to revenues of $209,003 reported a year ago. Operating expenses, on the other hand, more than doubled to $7.5 million from $2 million reported a year ago. MassRoots Recovery Plan In response to the disappointing financial results, the Chief Executive officer says they intend to focus on achieving cash-flow positive by maximizing revenue streams. The company also plans to monetize its massive customer base to generate value.Acquisitions made at the start of the year are expected to expand the company’s software offerings which should allow the company to reach out to more licensed cannabis businesses and consumers.The leading technology platform is currently testing new concierge services for cannabis enthusiasts. The service is being tested in partnership with Diem cannabis, an Oregon based dispensary, and delivery service.The concierge service will allow consumers to speak by phone or text chat to ask questions, get recommendations and verify information before Diem can make deliveries on ordered products. The partnership provides MassRoots an opportunity to expand its footprint in Oregon which has only started to issue licenses for cannabis delivery services."We're excited to fill that gap, the vacancy created in online ordering when details on the product can be incomplete or missing altogether. We're thrilled to provide a complementary service ensuring customers have the best cannabis experience possible,” said Mr. Kveton.Bottom LineIf the management squabbles are anything to go by, then MassRoots is without a doubt facing an uncertain future. After posting its worst ever quarter, there are already concerns whether the company has what it takes to continue operating as a going a concern.Investor sentiments can only continue to drop until the company stipulates how it intends to trigger revenue growth. As it stands the stock may continue to feel the effects of short sellers in the market.We will be updating our subscribers as soon as we know more. For the latest updates on MSRT, sign up below!Disclosure: We have no position in MSRT and have not been compensated for this article. We have been previously compensated ten thousand usd by a non affiliated third party, sunrise media, LLC for a 2 day awareness program regarding MSRT. Prior to this, we were compensated twenty thousand usd for a two day awareness campaign, which has expired.