Borislav Tonev

Novint Technologies, Inc. (OTCMKTS:NVNT) Goes Wild

by Borislav Tonev April 1, 2016

Novint Technologies, Inc. (OTCMKTS:NVNT, NVNT message board) has been around for a very long while. The company managed to develop a clever haptic technology device called the Falcon which makes the act of playing video games much more immersive.

In Q3 of 2009, NVNT managed to sell about $113 thousand worth of the said devices which was a 58% increase compared to the results for the same period of the previous year. Apparently, however, the management team weren't entirely satisfied with these figures and a couple of years, later they announced the closing of the acquisition of Force Tek Enterprises LLC. - the developer of a special kind of exoskeleton-like hand controller with integrated force feedback. The 8-K said that the audited financials of Force Tek will be out before the end of June 2011. They're still nowhere to be found.

In fact, instead of filing the new subsidiary's financial results, in December 2011, NVNT terminated its registration with the SEC and it then decided that it's not going to use the alternative reporting standards. There have been no press releases since then, the most recent 10-Q is still the one covering Q3 of 2009, and the company is labeled as “Dark or Defunct” on the OTC Markets.

Yesterday, this delinquent OTC stock gained 4,500% and it surged from $0.0005 all the way to a close of $0.023 per share. You're probably thinking that this is some sort of a cheesy April Fool's joke. It's not.

The stock really did explode and it also racked up a dollar volume of just over $170 thousand. The reason for this is a filing with the United States Patent and Trademark Office according to which NVNT has assigned the patent covering Force Tek's exoskeleton device to none other than Facebook Inc (NASDAQ:FB). QZ.com saw the document and said that the arm controller will be a great addition to the Oculus Rift which was officially released mere days ago.

So, a no brainer then, right? That's for you to decide.

Here's some food for thought, though. QZ's article was based on information provided by “people with knowledge of the situation”. Who those people are remains unknown, but the fact that the information is coming from anonymous sources is not really that surprising. The parties that are actually taking part in the deal, Novint and Facebook, have said absolutely nothing about the patent assignment.

Basically, while the document is indeed real, the lack of any detailed information means that any estimates around the potential benefit for NVNT and its shareholders can be based on nothing more than guesswork. And guesswork doesn't always form the ground for the perfect investment.

Especially in Pennyland.

Comments 1

1. Guest
April 01, 2016, 11:58AM

Quotes Great article, too bad many people don't keep up here, lots of people going to lose big time. There is absolutely no way to get hold of the company, all phones have been disconnected and the address listed is now a church, I called and verified that. They have no idea where Novint went. But you have to love the power of IHUB to produce some of the most lethal pumps in the market. No names but a few posters there should be behind bars imo. Keep up the great articles Mr. Tonev!

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