Dolat Ventures Inc (OTCMKTS:DOLV), which develops rechargeable car power plant recharge system and Electric Vehicles (“EVs”), was recently assessed again by our team after the company released a new quarterly report.
Our readers will remember well that we promised in our previous piece that we would be alert to address new announcements informing about the company’s merger with JB & ZJMY Co., Ltd. In the new 10-Q released, we found more details. Additionally, the new financial figures released seemed to be appreciated by the market. Thus, we believe than an update on this name is necessary.
Have a look at the recent share price action and note the share price reaction on the release date, September 12, 2017:
Let’s first revisit DOLV’s business history. DOLV was founded in Nevada in 2006. It is headquartered in China. The company has gone through several transactions.
- On February 9, 2009, the company entered into an acquisition agreement with Dove Diamond and Mining, Inc., paid with 20,622,000 shares.
- On April 13, 2010, the company entered into a Share Exchange Agreement with Millennium Mining LLC.
- On December 30, 2015, the board of directors agreed to acquire Patriot Development Corporation.
- On December 2, 2016, the company merged with a Chinese company, JB & ZJMY Co., Ltd.
What’s the business model?
The company operates in the Chinese electric vehicle market, which, according to Bloomberg, became the world’s largest market for electric vehicles with 507,000 cars sold. It is expected that 2 million cars will be sold by 2020.
Why is this opportunity in China?
The Chinese Government is obviously helping. It has provided subsidies to EV manufacturers and has encouraged taxi fleets and government companies to use these type of vehicles.
What’s the company specialized in?
In the company materials, we could read that DOLV developed “a small, low-cost, fully automatic, multi-function rechargeable car power plant recharge system.” The difference with other systems is that the energy density per kilogram to 180W of its batteries is 50% higher than that of lithium iron phosphate batteries with the same specifications. Additionally, the company also has its own prototype SUV electric vehicle called “Millet Ming Yang V3.”
In the new quarterly report, we could find the new financial statements of the quarter ended on June 30, 2017. It is key to check how the financial situation evolved after merger with JB & ZJMY Co., Ltd. As we said in other reports, the integration process after the merger is very important and will determine the future of the new company.
Thanks to this merger, the company increased its assets, know-how, patents and gained a percentage of the EV market in China.
Have a look at the financial situation of the company after the merger. Please note that the amount of assets and liabilities increased.
This is great, but is the company generating revenues?
Yes, it seems that the merger worked out and the two companies were able to collect the first payments for their technology. For the six months ended on June 30, 2017, $156,520 were noted and the net profit was equal to $76,064. We believe that these numbers made the market appreciate the new 10-Q.
Are you concerned about stock dilution and share structure? For those interested in calculating the book value per share or checking the amount of shares the company issued, have a look at the share structure:
|Market Value||$26,344,661||a/o Sep 27, 2017|
|Authorized Shares||2,000,000,000||a/o Sep 01, 2017|
|Outstanding Shares||833,691,800||a/o Sep 01, 2017|
|Held at DTC||Not Available|
|Float||643,163,847||a/o Dec 31, 2016|
Currently trading with a market cap of $26 million, DOLV is an exciting story among small caps. We believe that the market is finally pushing up the share price to celebrate the recent merger. As we said in previous reports, we needed to check the amount of assets that the new merger would bring as well as the know how. In this new report, we could see those new assets as well as the liabilities.
Finally, it seems that the company has been able to integrate well both companies and we, like the market, appreciate the positive net income reported. We will need to check the next quarters and look for an upward trend in earnings, but so far so good. Overall, the company is forging ahead and with it, expect a much higher share price.
We will be updating our subscribers as soon as we know more. For the latest updates on DOLV, sign up below!
Image courtesy of Ju Han Kim via Flickr
Disclosure: We have no position in DOLV and have not been compensated for this article.