Walker Innovation Inc (OTCMKTS:WLKR)

I wrote this up Tuesday night and I don't recommend purchase of the shares now but I suppose it's still worth sharing.

Walker Innovation Inc is a nano cap company that trades OTC.

They just filed their 10-K and showed an increase in cash to $10.285m and an unrealized gain of $7.6m.

The increase in cash was in relation to "exercise and sale of 3.75m shares associated with its warrant to acquire shares of the Upside Commerce Group, a new business travel service founded and launched by Jay Walker".

The unrealized gain was in relation to the fair investment value of the remaining warrants in Upside. Here is an article on Upside: Priceline Founder Raises 50m for New Travel Venture

That's right, Jay Walker founded Priceline, so he is fairly competent in the travel space.

Total Liabilities equaled roughly 991k and operating income was profitable at 405k for the quarter.

Effective February 3rd, Jonathan Ellenthal has stepped down as CEO and is working full time with Upside, which indirectly benefits WLKR due to the ownership of the warrants.

Jay Walker has the company locked up with 82% of the common shares and 100% of the Series B Convertible Preferred Shares but companies don't trade at a huge discount to cash (even if you were to write down the remaining Upside Warrants to zero this was a buy at .32).

They are looking to acquire an operating with the cash from the sale of the Upside warrants. What that company is will have a huge impact on future earnings, along with how well Upside performs.

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