Integral Tehcnologies, Inc. (OTCMKTS:ITKG) Wipes Its Gains
Last Thursday Integral Tehcnologies, Inc. (OTCMKTS:ITKG) published a rather important PR announcing the largest order in the company’s history for their ElectriPlast product, a non-corrosive, electrically conductive resin-based material. The order was placed by ITKG’s Asian molding partner, Chang Rim Inc.
Investors were definitely excited by the news and on the day of the PR ITKG surged by over 21% on a volume many times higher than the monthly average. The problem is that those who thought that the stock was going on a multy-day climb up the chart were gravely mistaken. On the very next day ITKG crashed hard wiping not only the gains from the previous session but dropping even lower. At the end of Friday’s trading the ticker was sitting 16.6% in the red at $0.61.
Integral may have received a large ElectriPlast order but the PR failed to mention any concrete numbers about the money the company is going to receive from it. And this is something extremely important for a company that after years and years of trying to commercialize its products has yet to produce any meaningful results. For the first quarter of the year ITKG reported:
• $306 thousand cash
• $382 thousand total current assets
• $1.1 million total current liabilities
• $45,450 revenues
• $1.15 million net loss
For the nine-month period ending March 31 ITKG had a net loss of over $3.1 million while the accumulated deficit has surpassed $51 million. Out of the reported revenues less than $3000 came from ElectriPlast sales. It remains to be seen if the new order will help the company improve its balance sheet.
At the same time in order to fund its operations the company has held 11 private placements of stock between June 30, 2014, and March 31, 2015. The shares that have been sold had prices ranging from $0.17 to $0.38. The outstanding shares grew from around 99 million at the end of ITKG‘s fiscal 2014 to 111 million as of March 31, this year. The OTCMarkets profile of the company shows that as of July 10 there were 114.5 million outstanding shares.
If you are contemplating whether to invest in ITKG or not you might also want to take into account the fact that the company has been touted by One Equity Research through research notes. The latest of such notes was issued on August 7 and according to its disclaimer One Equity Research has received $49 940 from LPF Communications, a shareholder and adviser to ITKG, and expects to receive 50 thousand restricted ITKG common shares of as well as additional compensation in the future.
ITKG’s products definitely sound promising but so far the results of the company’s operations have been quite underwhelming. Even if things finally start moving in the right direction the red flags around the stock could continue to impact its movement negatively. That is why any trades should be preceded by extensive due diligence and careful planning.
