NuGene International Inc (OTCMKTS:NUGN) Files Quarterly Report, Continues To Correct
So far NuGene International Inc (OTCMKTS:NUGN) have registered four sessions in a row ending in the red. Last Friday the ticker managed to rally in the last minutes of the trading day and although it surged above its opening price of $1.31 it still closed with a 5% loss at $1.33. On Thursday the company filed its new quarterly report but it failed to change the direction of the ticker.
This shouldn’t come as a surprise when nearly all of the numbers found on the balance sheet show signs of deterioration. NUGN finished the quarter ended September 30 with:
• $350 thousand cash
• $1.12 million total current assets
• $1 million total current liabilities
• $520 thousand sales
• $2.1 million net loss
Compared to the same period last year the reported revenues show an increase 142% not to mention that over half a million in sales is quite an impressive achievement for a pennystock. Unfortunately this positive results gets quickly overshadowed by the massive net loss. According to the report $1.8 million of the quarterly net loss was due to wages and professional fees. For the nine month period ended September 30 NUGN‘s net loss stands at $3.1 million.
At the same time the company’s cash reserves have dwindled by close to a million compared to what it had at the start of the year. It is safe to say that NUGN are in a dire need of fresh funds because currently their resources are insufficient to keep them going through the end of the year.
Last week’s report also revealed that in July two complaints were filed against the company while in October NSE Products, Inc., a Delaware corporation based in Provo, Utah, initiated actions in the US Patent and Trademark Office contesting several of NUNG’s trademarks and registrations.
While NuGene have been able to grow their sales for now they simply cannot justify the company’s market cap of $52.6 million. The fact that earlier this year NUGN were targeted by a multi-million hard mailer pump should also be taken into account. Do your own research and adjust your trades accordingly.
