Steampunk Wizards Inc (OTCMKTS:SPWZ) Gets Destroyed on the Charts

After a four-day full-on bloodbath on the charts, Steampunk Wizards Inc (OTCMKTS:SPWZ) dropped a staggering 69%. Yesterday the stock slid another 31% on volume ramping up even further to 390 thousand shares. By the closing bell SPWZ stopped at $0.52 per share.

Formerly a shell company listed on the OTC, SPWZ executed a reverse merger with a Maltese game developer and is now conducting its business through it, shifting operational focus from fossil fuels to digital entertainment.

Steampunk Wizards, the entity that reverse merged into the public shell, has one mobile game that has been up for grabs on the Google Play Store for multiple months. For some reason the latest company filings still refer to it as a product that is “nearing commercial launch”. The game admittedly has pretty decent production values and seems to be a passable little casual platformer but it obviously failed to generate a dime of revenue for Steampunk Wizards, if the consolidated post-merger balance sheet is to be believed.

The shell company’s report is consolidated in a combined balance sheet with the Maltese game developer’s financial performance for the period Oct 2014 – Mar 2015. This shows both entities not generating a dime of revenue in their respective reported periods. This is a little confusing, considering the Android version of SPWZ‘s mobile game alone has between 10,000 and 50,000 installs and has in-app purchases.

The whole matter with the Maltese dev merger is a little confusing, as at the end of the day the game developer had $2 thousand in cash, generated no revenues and scored bigger net loss than the public shell over a shorter period of time. How SPWZ intends to turn things around, especially in the absence of a readily available new game product to launch is not too clear.