Are Revenues Coming For Integral Technologies, Inc. (OTCMKTS:ITKG)?
If you are actively trading penny stocks, you’re probably roaming around company websites all day long, searching for the best place to invest your money. Some of the web portals feature a section where the clients of the company have written some positive reviews about their product and Integral Technologies, Inc. (OTCMKTS:ITKG)’s website is no exception.
Of course, there’s nothing wrong about that as it gives the venture and its product a bit more credibility. It’s a bit pointless, however, when the things reviewed in this particular section are not quite ready yet and it would appear that this is the case with ITKG. But is it about to change?
ITKG started off way back in February 1996 with the vision of developing something called Electriplast. It’s an electronically-conductive resin, it’s quite revolutionary and it has a long list of applications. This sounds like the recipe for a company that is about to achieve huge growth especially when you consider the fact that the patents are now in place.
The only problem is, it’s been over 17 years since they began, people are starting to get impatient and quite frankly, having gone through the financial statements, we’re also not ready to wholeheartedly embrace the idea of colossal progress in the coming months. Here’s what ITKG have after 17 years in the business:
- cash: $169 thousand
- current assets: $219 thousand
- current liabilities: $2.4 million
- revenue: $0
- quarterly net loss: $169 thousand
- accumulated deficit: $42 million
In addition to the rather disappointing figures we see that there are quite a lot of convertible debentures issued to Asher Enterprises, Inc. and JMJ Financial and if you follow penny stocks carefully, you will know that these two entities are often referred as toxic financing providers. Asher even have a special message board dedicated to them on iHub and if you’re still wondering how badly can toxic financing affect a stock, you can have a look at the chart for Cereplast Inc (OTCMKTS:CERP) on the right. As we wrote yesterday, CERP were in a desperate need for money and they turned to Magna Group and Hanover Holdings, two other toxic debt providers and this (according to the lawsuit filed by CERP) resulted in a price drop of around 92% in around six months. We’re pretty sure that ITKG‘s shareholders will be mightily disappointed if their company experiences a similar crash, not least because they are finally seeing a light at the end of the tunnel.
While the latest report was nothing to cheer about, ITKG issued a couple of press releases in the recent weeks and the news sound good. Particularly the PR’s from June 25 when they announced that they have signed a couple of agreements with Delphi Automotive PLC (NYSE:DLPH) and Hanwha L&C. The contract with DLPH is for a collaboration during the development of products, but the one with Hanwha is a definitive agreement giving the Korean company the license to manufacture and sell Electriplast in Asia which means that royalties and license fees should finally start coming in. Then again, this particular agreement took quite a while to be completed. If you take a look at our previous article on ITKG, you will see that the initial Letter of Intent was signed in February 2012 and back then ITKG and Hanwha were expecting the final agreement to be reached by the end of the first half of 2012. As you can see the deadline was missed by miles, but hopefully, all will be good now and the revenues section of their next report will contain some figures.
Yet, despite the promising news and the strong run from the last couple of weeks, yesterday ended with as much as 25% of the value lost, and while we can’t be sure, this might have been caused by Asher and/or JMJ Financial letting some stock loose on the open market. Whatever the reason, we can only hope that similar sessions are few and far in between.
A definite plus is the lack of paid pumps, which is more than can be said for African Copper Corp (OTCBB:ACCS) and Petrosonic Energy Inc (OTCMKTS:PSON), but that in no way means that ITKG are immune to such things and it certainly doesn’t mean that a potential investment hides no risks at all.