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By Annette Thatcher
Nov 25, 2014

NanoTech Entertainment, Inc. (NTEK) Climbs Up After Network Launch

NanoTech Entertainment, Inc. (NTEK) gained 16.33% in price at the onset of this trading week. NTEK went from $0.04341 to $0.0505 to pass the $0.05 mark on a good volume of 5,281,952 shares trading hands. The company launched its Iron Dragon TV on Friday at 8 pm CST, which was seemingly well accepted.

Another item of news on the network came out in a press release yesterday. NTEK announced signing an agreement with Samsung Electronics America, Inc., pursuant to which the company's UltraFlix™ All 4K Streaming Service is scheduled to be launched on UHD TVs today.NanoTech Entertainment, Inc. stock chart

On the heels of the successful launch of the Iron Dragon TV network, the ticker registered its first price improvement of over 10% in the past five weeks. Given the market performance of NTEK stock over the past month, a more thorough look into the venture's financial disclosure is due to better evaluate the long term potential of the company. The latest quarterly report for the period ended September 30, 2014 contains the following on NTEK:

  • Cash: $91.5 thousand
  • Total current assets: $3 million
  • Total assets: $3.8 million
  • Total liabilities: $415.2 thousand
  • Revenues: $2.5 million
  • Net income: $306.6 thousand

The company has improved its asset basis in the past quarter while further reducing its liabilities. As it stands, NTEK has a very good asset to liability ratio. However, the venture has had much less success in its sales department in the third fiscal quarter. While the amount is still very good for a pink tier, it is down by roughly six times compared to Q2. Ultimately, NTEK made a smaller amount of income.

Looking at the recent issuance history of NanoTech Entertainment, we see that high amounts of shares have been printed for different reasons. Under the company's employee stock option plan, NTEK issued a total of $28.9 million shares of restricted common stock to Mr. David Foley in two tranches from August 20 and September 9.

NTEKOn August 25, NanoTech Entertainment entered into a couple of agreements with non-affiliated parties Santokh Mehan and 4K Media Consultants, LLC. NTEK issued 1 million shares of restricted common stock to Mr. Mehan under a convertible debenture. 6,464,736 shares of restricted common stock were issued to 4K Media Consultants as per a media acquisition services agreement.

As of September 30, NTEK had 625,710,830 O/S. In the past quarter, the venture has issued a total of 36,364,736 shares of common stock. The high rate of issuance raises the risk of dilution of NTEK stock. Investors, who find interest in the company, should do their due diligence before making an investment.

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