NanoTech Entertainment, Inc. (OTCMKTS:NTEK) Stumbles on Heavy Volume

After finding a precarious balance for a couple of sessions, NanoTech Entertainment, Inc. (OTCMKTS:NTEK) slipped and entered a red streak that seems to intensify. Yesterday the stock dropped 7% to a close of $0.045 per share. Share volume was the heaviest for the past month, at 11.5 million.

The company enjoyed quite a bit of a boost in share price in September after making a couple of announcements. NTEK informed shareholders of an agreement with Sony and the inclusion of the company’s UltraFlix streaming app in Sony’s 2014 line of 4K TVs. A couple of weeks later another PR stated NTEK landed a deal with VIZIO – a major name in HD smart television sets.

The price surge did not last and in the absence of more news to fuel the ride, NTEK dropped quickly near its early September price levels. The stock registered another pop in mid-October, sadly, once again fueled by a press release and obliterated easily in the absence of new PRs.

Here is what NTEK had to show on its books as of its latest report – an annual for fiscal 2014:

• $36 thousand in cash
• $824 thousand in total liabilities
• $15 million in annual revenues
• $614 thousand in annual net profit

While the bottom line of the report is positive, the company’s performance on a quarter-over-quarter basis was disappointing. Quarterly revenue in the last quarter of fiscal 2014 has dropped about 70% from $5.1 million in Q3. Sales dropped across all reported segments, from ‘gaming’ to ‘media’ which is also the main revenue engine for NTEK. This stunted growth put a wet blanket on the share price which was not doing too great anyway.

NTEK‘s next quarterly is due any day now and will show whether the company managed to get back on track or revenues suffered a further shrink.