Nyxio Tech Corp (OTCMKTS:NYXO) Propelled by Rumors
There are plenty of things to suggest that Nyxio Tech Corp (OTCMKTS:NYXO) isn’t the best investment option out there. But before we get to them, let’s start with the plus points.
If you take a look through their website, you’ll see that they do have some interesting ideas. There’s even a video demonstration of their Smart TV that incorporates the full functionality of a home PC. A clever thought, no doubt, and unlike other small cap companies that can brag about an interesting business plan, NYXO have finished developing the product. Looking at the 10-K covering the twelve months ended December 2012, we can see that they managed to register nearly $60 thousand in revenues.
They logged some more sales during the first quarter of 2013 and it looked like they might be onto something. There were still some losses, but that was to be expected from a small cap enterprise trying to make a breakthrough in the huge consumer electronics market. Shareholders were hoping that with quite a lot of effort and a bit of luck, they will see a positive bottom line in some of the future financial statement which would, in turn, result in huge growth for their investments.
Then, something terrible happened. The 10-Q covering the second quarter of 2013 came out at the end of August and it showed that between April 1 and June 30, they have generated absolutely no revenues. In light of this, the decision to increase Giorgio Johnson’s (NYXO‘s CEO) annual salary from $40 thousand to $250 thousand seems a bit strange, but at least they issued a press release a couple of days later saying that they have received their first purchase order from retail giant Adorama.
This should have brought a lot of exposure to the small cap company and its products, but, perhaps more importantly, it should have meant that revenues were once again coming towards NYXO.
We can’t be sure if they have succeeded in raising awareness, but we do have the Q3 results in front of us and we can see that there is a zero under the Sales section. The rest of the balance sheet looks pretty terrible as well. Here’s a summary of the figures:
- cash: $1,615
- total assets: $19,778
- total liabilities: $1.2 million
- Q3 net loss: $2 million
There are some other problems as well. The company issued numerous convertible notes to entities like Asher Enterprises and they can all be turned into common stock at some hefty discounts. 81 million new shares got printed between August and November and they recently increased the authorized capital to 500 million shares which could suggest that even more stock has seen the light of day.
NYXO also became the target of a rather big promotional campaign in July and it, along with the factors listed above meant that the stock performance was truly horrific.
And yet, we’ve seen some increased volumes over the last couple of sessions. Yesterday, NYXO skyrocketed by as much as 130% and finished above the $0.002 mark for the first time since October. The ticker shifted nearly 350 million shares meaning that the dollar volume stands at just under $700 thousand.
Sadly, there isn’t anything substantial supporting the run. The latest press release is four and a half months old, there are no new filings and there isn’t even a paid pump. In fact, after a lot of digging around, we can see that the only thing that could be propelling the ticker is a rumor about a potential buyout from one of the biggest names in the electronics industry.
Sounds good, but should you believe the rumors? It’s up to you to decide. Whatever you choose, keeping the facts above in mind and doing a lot of due diligence is absolutely crucial.
