iTeknik Holding Corporation (ITKH)

[HokieHead]

ITKH Holiday Weekend DD:

iTeknik Holding Corporation
Ticker: ITKH
Exchange: Pink Current Information
Last PPS: $0.0026

Shares OS (4/17/19): 233 million

Shares Floating:
2016: 200 million
2018: 166 million
4/17/19: 164 million

Current Market Cap: ~$600,000

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Financials:
Revenues: $3.4 million (+23% from 2017 $2.7 million)
Earnings: $53,582 (backing out $900k disputed interest charges and $88,155 legal expenses)
Current Price/ttm Sales Ratio: 0.1764
PPS @ 1x ttm Sales: $0.015 (currently trading ~6x below 1x sales)

Updated company profile sheet:

https://iteknik.com/wp-content/uploads/2019/04/Company-Fact-Sheet-ITKH-2019-Vol-3.pdf

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Litigation with TCA Global Fund Information

http://www.superiorcourt.maricopa.gov/docket/CivilCourtCases/caseInfo.asp?caseNumber=CV2017-003585

Om April 15th it was concluded that both parties must participate in a mandatory settlement conference. After two years of deliberation it looks like both parties will get an agreement done and get it behind them.

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Company update in latest PR/Filing on the litigation:

-Management expects its ligation with TCA to be resolved in 2019. This would allow the Company to implement its strategic plan and seek additional acquisitions. Acquisitions can provide iTeknik with the economies of scale that can help to increase earnings.

-First and foremost, Management will focus on its dispute with TCA Global Fund. Management expects either to prevail in court or reach an amicable resolution through settlement negotiations. Once this dispute is settled the company will be able to complete the audit started in 2017. After the audit is complete the Company will seek to become fully reporting as an OTC QB designated company. As an OTC QB company, Management is confident it will be able to secure the financing to acquire other advertising agencies.

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Conclusion - Settlement or not, the company is trading for 0.176x 2018 sales, there's no reason it should not be at 1x or more, giving a PPS over $0.015. Also if the plans are to uplist to the OTCQB they will work on getting the PPS up over the required $0.01 30 day bid starting very soon imo.

Looking at the trading history in 2019 the ticker was not front loaded with shares, the last 3 days volume totaled 43 million shares which mostly went off in the 2's and 3's, the volume the prior 70+ sessions only was 15 million shares total. Most holders now are in at this 2/3 level.

I can't find a better sub penny ticker that has these fundamentals: Growing revenues 20%+ year over year and in the millions, basically EBIT positive less the litigation expenses which can possibly be freed up to buyback shares or for acquisitions, trades for less than 20% trailing sales, has a float that's actually gone down the past 3 years, and plans on uplisting to OTCQB that will require a PPS over $0.01.

Good weeks, months coming here imo. Have a Happy Easter weekend everyone.