Sunvault Energy Inc (OTCMKTS:SVLT) Appears to be Running Out of Juice

Sunvault Energy Inc (OTCMKTS:SVLT) had quite a lot of problems keeping up with its reporting obligations. The financials for the first three quarters of 2014 for example, didn’t come out until Q1 of this year and when they did show up, they were full of errors which means that they had to be amended and re-filed. Pretty much the same thing happened with the 2014 10-K and the 10-Q for the first three months of this year.

In light of this, the stock has been performing relatively well. Of course, there were corrections, but on the whole, SVLT put up a good fight and it managed to avoid painful crashes. Even the 10-Q for the second quarter wasn’t enough to scare investors away. This, considering the figures, is a bit strange. Here’s a summary:

• cash: $83,762
• current assets: $2,018,088
• current liabilities: $4,306,333
• quarterly revenue: $1,357,680
• quarterly net loss: $1,017,849

Investors weren’t bothered about the less-than-perfect balance sheet and about the 24% drop in revenues on a year-over-year basis. That’s because the figures above are the results of some mundane operations like tire recycling and scrap metal collection. The thing that investors are really excited about is the graphene venture that SVLT along with their partners from Edison Power Company embarked on several months ago.

And indeed, the members of the management team are doing everything they can to keep the fire going. At the beginning of the month, for example, they announced that SVLT and Edison will work together to create an electric supercar and they released some performance statistics that, theoretically speaking, could make Elon Musk somewhat concerned. Then again, Tesla’s founder probably isn’t losing sleep over SVLT and Edison’s announcement, however, because he has seen the balance sheet above.

And that means that, at least for the time being, the whole project is too much hype and not enough substance. And hype can only get you this far.

SVLT has been slipping since the beginning of the week and by the looks of things, the slope is getting steeper. Yesterday, it lost 8% of its value and it logged a dollar volume of just over $200 thousand and in early trading today, it’s sitting at less than $0.64 (another 3% in the red). Though there are still plenty of supporters around the message boards, the number of people who reckon that the stock’s crash is yet to unfold is growing.

Of course, SVLT might just prove the skeptics wrong. They’ll need something more than a press release, however.