Integral Technologies, Inc. (OTCMKTS:ITKG) Jumps Up On PR
Yesterday Integral Technologies, Inc (OTCMKTS:ITKG) announced entering into a Joint Technology Assessment Program with Advanced Battery Concepts. The goal is to evaluate the performance, efficacy and cost efficiency of ITKG‘s ElectriPlast bi-polar plate when used in the existing architecture of ABC GreenSeal 12V battery.
The PR definitely got investors excited – the number of traded shares during yesterday’s session nearly doubled the monthly average for the company. The intense buying pushed ITKG nearly 10% up the chart to a close at $0.201 per share. ITKG has made similar jumps a few times already in the past couple of weeks but holding on to the gains has proved to be rather difficult.
Well, the reason for this can be easily found in the latest quarterly report. ITKG finished the period ended December 31, 2015, with:
• $282 thousand cash
• $329 thousand total current assets
• $1.68 million total current liabilities
• $30 thousand revenue
• $993 thousand net loss
The current financials of the company simply cannot justify ITKG‘s market cap of nearly $25 million. Not to mention that compared to the same quarter in 2014 the reported revenues are down by more than 50%. For the six-month period the incurred net loss is of more than $2 million.
According to the OTCMarkets profile page of the company as of April 1 ITKG had over 122 million outstanding shares out of the 150 million authorized. The O/S could continue to grow – at the end of last year more than $325 thousand in convertible debentures were still outstanding while in January, this year, a new $75 thousand note was sold. The holders of these notes can turn them into common shares at discounts ranging from 25% to 37%.
Trading pennystocks is inherently extremely risky and ITKG is not an exception. That is why before committing to anything you should always do your own due diligence.
