Creative Realities, Inc. (CREX) stock prices shot up by a significant 15.28% as of the market closing on June 16th2021, bringing the price per share up to USD$2.49 at the end of the trading day. Subsequent premarket fluctuations have seen the stock marginally dip by 0.80%, bringing it down to USD$2.47.
Meme Stock Phenomenon
A plethora of stocks have recently been the targets for a coordinated pump and dump by the Reddit-driven retail investors in what has come to be known as the meme stock phenomenon. In the absence of recent news or any fundamental developments, companies sometimes on the brisk of collapse find themselves renewed by the sweeping meme stock craze. CREX seems to be the latest target of the meme stock madness, with the sudden and sharp overnight increase in equity value coming despite a stark lack of news or fundamental developments.
Gross Profits
Gross profit for the quarter ended March 31st, 2021 was reported at USD$2.2 million, representing a 39% increase from the gross profit reported for the same quarter of the prior year. Almost half of the USD$0.6 million difference is largely attributable to a period-over-period increase in revenue, with the other half being driven by higher gross profit generated from the sale of Thermal Mirror and Safe Space products.
Net Income Reports
Net income for the quarter ended March 31st, 2021 was reported at USD$1.3 million, up from the USD$13.2 million net loss reported for the same quarter of the prior year. This rebounding is largely attributable to a USD$0.3 million increase in the fair value of debt instruments, as well as a USD$1.5 million increase associated with gains on settlement of obligations. At the forefront of these settlements is the forgiveness of the company’s PPP loan for the quarter.
Registered Direct Offering
February 18th, 2021 saw the company enter into a securities purchase agreement with institutional investors. As per the agreement, CREX would sell 800,000 shares of its common stock in a registered direct offering, with a price per share of USD$2.50. The net proceeds generated from the offering came out to USD$1.8 million after the deduction of expenses related to the offering.
Future Outlook for CREX
Armed with the fortuitous surge in value of their equity, CREX is poised to capitalize on the opportunities presented to it. The company is keen to continue its trajectory of success and usher in more organic growth over the long term. Current and potential investors are hopeful that the management will leverage the resources at their disposal to facilitate significant and sustained increases in shareholder value.
