NanoTech Entertainment, Inc. (OTCMKTS:NTEK) Down in Double Digits
NanoTech Entertainment, Inc. (OTCMKTS:NTEK) published its due quarterly report for the three months ended March 2015 just over a week ago. The market’s reaction was less than enthusiastic. NTEK dropped in the three sessions following the report and after a single green pop on Thursday closed down in double digits ahead of the long weekend.
On Friday NTEK stock stopped 13.5% down by the bell on a volume swell of 14 million shares changing hands. It seems the investors hoping for booming business and great financial performance in Q1 had their hopes dashed. The short version of the figures published in the Q1 balance sheet is as follows:
- $44 thousand in cash
- $1.1 million in total liabilities
- $2.6 million in Q1 sales
- $333 thousand in Q1 net gain
The company’s bottom line is still in the black but the net profit has shrunk by over 50% compared to the previous quarter. NTEK reported a net gain of $831 thousand for the three months ended December 2014. Individual sales figures by segment actually went up in the new quarter but the bottom line shrinking was due to both cost of sales and general and administrative expenses going through the roof.
Some investors may find a lot to dislike about the cost of sales growing nearly 600%, while sales only grew by 13%.
The report provided a much-needed update on NTEK‘s share structure as well. In an early May article we informed that NTEK‘s authorized shares had increased to 990 million, up from 740 million in December. The latest quarterly shows that as of March 31 there were 847 million shares outstanding, so about 123 million new NTEK shares were pumped out within the first three months of 2015.