Halitron (OTCMKTS:HAON) shares rose 20% to $0.00300 on Wednesday when the company published its latest shareholder update. The company has a market cap of $1.90 million at 59.90 million shares outstanding. Share prices have been trading in a 52-week range of $0.00 to $0.05.
Formerly known as Teknik Digital Arts Inc, Halitron is an equity investment holding company. It is engaged in the development and marketing of interactive gaming software on cell phones, personal computers and game consoles, focusing on implementing an acquisition roll-up model by acquiring sales, marketing, and manufacturing businesses. The company also has acquisition targets that provide digital marketing services, which include localized marketing, mobile applications, mobile Web, experiential marketing, targeted e-mails, search engine optimization, pay per click, and web development.
For the second quarter of the year, Halitron was able to generate $58,392 in sales, amounting to a net loss $133,973. It’s worth noting that the company was able to make sales even without investing in any branded marketing initiatives throughout the quarter. Gross margins were 67% or $39,123 and operating losses were incurred mostly because of increased advertising activity.
Also in the same period, the company focused on increasing their shareholder base as well as the volume of stock trading. This resulted to $84,563 being expensed for stock marketing support,$50,000 of which was paid in restricted stock. In addition, Halitron incurred $82,641 in consulting expenses also paid in restricted stock.
Earlier on, Halitron had a successful capital raise of up to $300,000, which the operating units can use to generate $3-5 million in sales over a 12-month period. Apart from that, the company is still in the middle of negotiations for acquisitions, with a number expected to close before the end of the year. In line with its business strategy, the company is seeking out advertisement agencies with strategy that would benefit from acquired sister companies that are focused on digital marketing.
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