Intergral Technologies, Inc. (OTCMKTS:ITKG) Registers Its Lowest Close
For two sessions in a row the stock of Integral Technologies, Inc. (OTCMKTS:ITKG) closed flat at $0.017 but yesterday it failed to do even that. On a traded volume of over 580 thousand shares the ticker crashed by nearly 12% and dropped down to a close at $0.15, the lowest closing price for the company in the last 5 years.
Getting excited about ITKG was already quite hard but the quarterly report that was filed after the end of Monday’s trading made it nearly impossible. It revealed that as of March 31, 2016, the company had the following financials:
• $1167 cash
• $126 thousand total current assets
• $2 million total current liabilities
• $15 thousand revenue
• $1.73 million net loss
Compared to the same period during the previous fiscal year the balance sheet shows signs of deterioration in almost every aspect. The cash reserves are down to pitiful levels, the current assets have decreased by around $50 thousand while the current liabilities are up by $1.4 million. At the same time the revenues are just a third of what the company generated a year ago.
The red flags are far from over, though. During the nine months ended March 31, 2016, ITKG issued 4.2 million shares in order to extinguish $419,641 of the face value of debentures. This means that each share had an average price of around $0.10. The subsequent events section of the report not only shows that even more shares have been issued through conversions since the end of March but that forced by its lack of working capital ITKG have been selling new convertible notes. On May 5 the company entered into a convertible debt agreement with JMJ Financial for $900 thousand. JMJ can now convert that amount into shares at a 35% discount to the market price.
ITKG may have an intriguing product in their non-corrosive, electrically conductive resin based material ElectriPlast but they remain surrounded by red flags. Use caution and do extensive due diligence before committing to any trades involving the stock.