Up AH yesterday following its Q1 report, xG Technology (XGTI -7.7%) is now selling off. A downgrade to Hold from Feltl isn't helping.
xG spent $2.45M on R&D in Q1 (+49% Y/Y), and $1.68M on G&A (+24%). Ahead of an April stock offering that yielded gross proceeds of $10M, the company ended Q1 with just $686K in cash (down from $5.5M at the end of 2013).
Along with its Q1 results, xG announces it has been awarded a Mexican patent related to the SIP protocol (used to set up VoIP transmissions). The company now has 60 U.S. and 137 international patents/applications, of which 113 are issued patents.