After months of silence, Hybrid Coating Technologies Inc (OTCMKTS:HCTI) stock is back in focus and is slowly moving up on the charts. Few days ago, the company reported that it received the Green Chemistry Challenge award.
The stock managed to exit the sub-penny land after the press release, but faced huge resistance on higher levels. As a result, it saw sharp decline of nearly 45% on July 15 which was followed by equally strong bounce. Yesterday, the stock gained more than 3% to close the trading session at $0.00980.
It must be noted that in certain aspects, Hybrid Coating doesn’t comes in the most solid OTC firms. The company has just two employees and, interestingly enough one of them is the CEO Joseph Kristul. Hybrid Coating is not the first public entity of Mr. Kristul.
Back in 2007, he was the CEO of Telava Networks Inc which still exists as Somerset Transition Corp (OTCMKTS:TLVA). At that time he tried to secure investment of worth $1 million. The negotiations didn’t worked and the company as well as Mr. Kristul found themselves caught in legal trouble.
Coming to the financial performance of Hybrid Coating, it is evident from the latest 10-Q that Hybrid Coating needs fresh funding. As per the report recorded on March 31, the company had cash of $1,821. The current liabilities were $6.56 million and net loss in quarter was $2.225 million.
There was no revenue generated in the quarter. It should be noted that the CEO has so far succeeded to raise adequate capital to support the company’s operations. However, the terms on which financing is secured threatens to put a lot of pressure on the stock price in the near term.
Hybrid Coating Technologies Inc (OTCMKTS:HCTI) enjoyed a nice gain of 3.16% at the end of the last trading session but the intraday price action and finally the daily candle structure was not that encouraging for the bulls. The final closing price of $0.0098 was almost the same with the opening price of $0.01, making the candle a Doji with a long lower shadow and a comparatively smaller upper shadow that indicates a balance of power between the bulls and the bears. The first signal of a reversal of the downtrend would be a break above the band of $0.018-$0.0250.