Infrax Systems Inc (OTCMKTS:IFXY) incurred a net loss of $5.776 million in 3Q2015 against a net loss of $513,024 in the same comparable period. This increase in loss is a result of the loss recorded on the acquisition of Hemptech Corp. amounting to approximately $5.042 million.
The management stated that this loss is unique to the completed deal, and do not indicates any recurring trend. In addition, the company reported an increase in interest expense, which surged to $156,622 from $11,469 for the quarter ended March 31, 2014.
Infrax Systems reported that the net loss in the first nine months ending March 31, 2015 surged to $5.954 compared to a net loss of $1.588 during the same period last year. Again, this large difference in a result of the purchase of Hemptech Corp. in the third quarter, and do not represent any recurring trend. The net loss in the reported period was offset to an extent by a gain recorded on a debt settlement in November 2014.
Infrax Systems reported that revenue from the delivery of services and equipment came at $12,863 in 3Q2015 compared to $27,550 in 3Q2014. The Company has enhanced its marketing initiatives with Lockwood and by closing unprofitable product lines.
The expenses exclusive of stock based compensation, depreciation and amortization surged to $174,009 from $154,380 in the quarter ended March 31, 2014. The expenses surged due to increase in professional fees in 3Q2015. Amortization and depreciation expense came at $382,718 in 3Q2015 compared to $415,623 in the same period, a year earlier.
In last trading session, the stock price of Infrax Systems Inc (OTCMKTS:IFXY) gained more than 66% to close the trading session at $0.00050. The gains came at a share volume of 141.70 million compared to average share volume of 19.59 million. The market cap stands at 449,083.