Image Protect Inc (OTCMKTS:IMTL) is an interesting stock right now and may be worth a closer examination. It’s important to start off by noting that we do see clear promotional activity on ITML in a campaign that started yesterday. So, take notice. However, we wanted to highlight an interesting argument recently made by the company’s CEO.
The key factor here springs from a recent acquisition by Facebook of a Copyright/Infringement start-up last month. According to a recent release, “this corporate acquisition by the largest Social Media firm to date, exemplifies the enormity of the Copyright Infringement market in today’s world. Instagram users down load a trillion images a year, and that number is only growing, much of which is done for no regard of true Copyright ownership. Image Protect Inc., www.imageprotect.com, has built an end to end business solution passed through blogs, corporate and editorial websites, and social media platforms etc. Their proprietary software has witnessed its growth from beta tested start up just three years ago to a full-service Copyright Infringement firm monitoring over 10 million images across a global environment. With new visual artists joining the platform each day, Image Protest’s growing “Community” continues to be a united voice in today’s fight against online piracy.”
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 IMTL 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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So, we can see that there’s an argument that we have potential takeout energy in the Copyright/Infringement space. However, one would also have to note that this company has so far failed to make good on its promise to uplist to the OTCQB this year, and still posts unaudited financial data. That doesn’t mean this is a problematic player in this interesting emerging space. However, it does temper enthusiasm at least a little.
Chief Executive Officer, Lawrence Adams stated, “Order is being brought to the fast-moving world of the internet age, who owns what, and who has the rights to post and use Images, content and videos, is just now coming to light by a small handful of steadfast startups fighting for the rights of Artists to be compensated while building revenue models. “Trillions of bytes of data are swirling every minute of every day, and we are in here bringing order to ownership”, he further stated.
In sum, 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.
Now commanding a market cap of $1.45M, IMTL has virtually no cash reported on the books, which must be weighed relative to about $421K in total current liabilities. IMTL is pulling in trailing 12-month revenues of $542K. However, the company is seeing declines on the top line on a quarterly y/y basis, with revenues falling at -88.9%. You can bet we will update this one again as new information comes into view. For continuing coverage on shares of $IMTL stock, as well as our other breakout picks, sign up for our free newsletter today and get our next hot stock pick!
Disclosure: We have previously been compensated up to $10,000USD coverage of $IMTL.