Image Protect Inc (OTCMKTS:IMTL) is a penny stock that has grabbed hold of the attention of traders during the stock’s recent bounce. The catalyst for the increased attention appears to be the company’s announcement that it’s projecting 3,000 actionable Infringement cases for recovered Copyright revenue in Q1 versus 1,500 actionable cases for the entire year of 2016.
According to the release, the Company began uploading 50mm Images from its clients last fall, further driving the recovery cycle of search, identification. verification and the overall compiling of solid actionable cases for accelerated revenue growth. The company is currently recording hundreds of thousands of possible “Infringement sightings” weekly. While this is one of the earliest stages of the infringement recovery process, it has direct ties to the company’s overall annual revenue.
Image Protect Inc (OTCMKTS:IMTL) promulgates itself as a company that protects and monetizes creative works. By uniting technology with a team of copyright experts, the company aims to ensure that content providers preserve the value of their digital assets.
“Our web application monitors the global Internet to seek and collect evidence for illegally used visual content. Then our legal partners in North America, Europe, Asia and Oceania ensure that our clients receive appropriate compensation, recovering settlement fees when their work has been used without a valid license.”
According to company materials, “Image Protect protects and monetizes creative works. By uniting technology with a team of copyright experts, we ensure that content providers preserve the value of their digital assets. Our web application monitors the global Internet to seek and collect evidence for illegally used visual content. Then our legal partners in North America, Europe, Asia and Oceania ensure that our clients receive appropriate compensation, recovering settlement fees when their work has been used without a valid license.”
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In reaction to the recent release, the Company’s Chief Operating Officer, Jonathan Thomas stated, “This tremendous growth in actionable cases is a direct result of our updated advanced software platform working seamlessly across all channels.” He further stated, “By utilizing both current and future technology updates, we are on target to meet or exceed 15,000 new infringement cases by years end.”
Just before this announcement, the company had recently announced it launched a streamlined Copyright registration service via their www.imageprotect.com website.
As the company sees it, this new registration process targets the individual photographer looking to protect their copyright. Historically, photographers have had to use the archaically outdated United States Copyright Office (USCO) website or hire attorneys to navigate the legal process on their behalf.
“The benefits to this service are immeasurable. Most artists have little time and/or patience for the standard obsolete copyright process. ImageProtect’s newly automated workflow provides the artist the ability to upload and register their work(s) with little effort. The average time for an artist to complete the registration process is less than 10 minutes.”
With the internet’s omnipresence in all areas of intellectual capital, there may indeed be a growing need for private sector solutions to the problem of protecting the value of that capital. IMTL is a rare pure play in that field. That said, the question of execution is still a big one. So far, we see a mildly troubled balance sheet, but clear progress on the top line. And the company’s recent announcement suggests a diversified customer base.
The chart shows 60% during the past week in terms of shareholder gains in the stock, a rally that has pushed up against longer standing distributive pressure in the stock. This is emblematic of the stock. IMTL has a history of dramatic rallies. In addition, the stock has benefitted from a jump in recent trading volume to the tune of a bit less than 470% over what the stock has registered over the longer term.
At this time, carrying a capital value in the market of $3.1M, IMTL has virtually no cash on the books, which must be weighed relative to about $684K in total current liabilities. One should also note that debt has been growing over recent quarters. IMTL is pulling in trailing 12-month revenues of $950K. Additionally, the company is seeing recent top line growth, with sequential quarterly revenues growing at 109.7%. We will update the story again soon as developments transpire. For continuing coverage on shares of $IMTL stock, as well as our other hot stock picks, sign up for our free newsletter today and get our next hot stock pick!