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After logging two sessions of corrections in a row the stock of Sack Lunch Productions Inc (OTCMKTS:SAKL<\/a>) reversed its direction during yesterday’s trading. On a volume of 1.23 million traded shares, which more than doubles the monthly average, the ticker was able to add over 4.6% to its value, closing at $0.1405 per share. During the session SAKL<\/a> <\/strong>also registered a new 52-week high.<\/p>\n Compared to the start of the year the stock of the company has appreciated significantly rising up from a little over four cents. And it is not that hard to find why investors have been showing such support for the ticker. SAKL<\/a> <\/strong>has been reporting impressive revenue growth and it has even stated that the initially projected revenues of $18 million for 2016 could be surpassed.<\/p>\n After a significant delay last Thursday SAKL<\/a> <\/strong>finally submitted their quarterly report covering the first three months of the year so let’s see for ourselves what they had in terms of financials as of March 31, 2016:<\/p>\n • $797 thousand cash Compared to the same period last year the revenues generated by the company are over 43% higher. This is truly an amazing achievement but the balance sheet also contains some rather alarming red flags – both the loss from operations and the net loss have increased by around three times from what they were at the end of March, 2015.<\/p>\n Things look much better, though, if you take into account the deferred revenues of the company. During the three months covered by the report SAKL<\/a> <\/strong>registered over $2.3 million in deferred revenue while for April they announced around $1.79 million in total sales. This revenue comes from ticket sales and will be realized as the company starts holding its various events in the coming summer months.<\/p>\n SAKL<\/a> <\/strong>remains a pennystock, however, and as such using caution is strongly advised. The outstanding shares of the company have been steadily creeping up and quite a lot of fresh shares have seen the light of day as a conversion of Series C preferred shares. On January 21 41,565 preferred C shares were converted at $0.045 into 4.6 million common shares<\/strong> while on March 8 11,776 preferred C shares were turned into 3.5 million common shares<\/strong>. The subsequent events section of the report reveals that even more conversions took place in May with 1.6 million common shares being issued at around $0.077<\/strong> followed by 6.5 million shares priced at $0.13 each<\/strong>. As of May 31 SAKL<\/a> <\/strong>had 141 million outstanding shares but according to investors who claim to have contacted the transfer agent of the company as of yesterday there were 148 million outstanding shares.<\/p>\n
• $3.7 million total current assets
• $7.97 million total current liabilities
• $1.3 million total revenue
• $1.56 million net loss<\/p>\n