Integral Technologies, Inc. (OTCMKTS:ITKG) Moves Up
Last Thursday the stock of Integral Technologies, Inc. (OTCMKTS:ITKG) almost broke its record for lowest closing price after it finished the session at $0.1711. On the very next day, however, the ticker bounced right back up and retraced its steps to a close nearly 17% in the green at $0.20 per share. Was this just a short-lived bounce or will ITKG manage to form a more prolonged recovery?
Well, at the end of last month the company announced that LeddarTech has chosen ITKG‘s ElectriPlast conductive resin material to produce lens barrels in its LeddarOne Sensing Module. The fact that this module can be used as altimeter for drones got investors so excited that on March 30 they pushed the stock of ITKG nearly 50% up to a close at more than 31 cents per share. That was as far as the ticker would go though as the momentum disappeared completely and the stock crashed hard right on the very next day. In fact, for the next 11 sessions the stock didn’t register even a single one ending in the green.
Not to mention that at the moment ITKG commands a market cap of nearly $25 million, valuation that can hardly be justified by the financials of the company. Opening the quarterly report for the period ended December 31, 2015, reveals that at the end of last year ITKG had:
• $282 thousand cash
• $329 thousand total current assets
• $1.68 million total current liabilities
• $30 thousand revenue
• $993 thousand net loss
The balance sheet is far from reassuring. The quarterly revenues show a decline of over 50% on a year-over-year basis while the net loss remains massive. Investors have a lot more to worry about though.
In order to raise the necessary funds to keep itself going ITKG has been forced to issue numerous convertible notes that can be turned into shares at discounts going from 25% all the way up to 37%. At the end of December over $325 thousand in convertible debentures were still outstanding. The subsequent section of the quarterly report reveals that the company is actually taking on even more convertible debt – a $75 thousand convertible note was sold on January 28.
Integral Technologies have an exciting product in ElectriPlast but they are still reporting underwhelming revenues. Adding the other red flags that surround the company makes investing in the stock even riskier. That is why it is necessary to do your own due diligence before committing to any trades.
In early trading today ITKG are up by another 10% currently trading at $0.22 per share.
