Galaxy Next Generation, Inc. (OTC: GAXY) is more than the typical interactive technology provider. The company is well known for its full-line of hardware and software products intended for a fully collaborative instructional environment. Given the impact of COVID on the education industry, GAXY is capitalizing on the growing market of smart education with new and advanced lines of products. Upon announcing a massive increase in product sales, GAXY stock has seen an over 100% increase despite fluctuations over the past week.
Catalysts
No doubt, COVID has negatively impacted countless companies, but for GAXY, it fueled immense growth. The smart education market has been growing rapidly for years and with COVID, it accelerated even further. Valued at around $240 billion in 2017, the market is expected to grow to $994 billion by 2024. With a market cap under $40 million, GAXY has the opportunity to capitalize on this market which could lead to significant growth for the stock.
With a distribution channel of over 37 resellers across the country, GAXY’s products are sold across the commercial and educational markets. The company’s line of products serves to enhance classrooms, schools, and their safety. Currently, GAXY holds 2 patents – one for its interactive touch screen panel and the other for its assistive listening system, which uses sound waves for device pairing. But three more patents that are currently pending.
Overall, the K-12 education market remains its largest customer base comprising nearly 90% of GAXY’s sales. Now that the government has announced its plans to allocate $200 billion in education funding primarily to K-12 schools, many schools have increased their budgets and GAXY is in a position to benefit from the additional spending.
To capitalize on this, GAXY has focused on integrating its new technologies with products from established industry players. The company’s portfolio currently includes interactive touch screen panels, award winning classroom audio solutions, and intercom products.
Today, the company’s touchscreen panels are sold alongside typical classroom technology like Google Chromebooks and Microsoft Surface Tablets. As concerns grow regarding Omnicron’s rapid spread, the usefulness of GAXY’s interactive technology could be an important component for schools considering the switch to online learning next term.
With this in mind, GAXY could continue to see growing sales but the company has already achieved astonishing growth, announcing $300,000 in sales over less than a week compared to the $80,000 it achieved in “the entire month of December 2020”. This could be due to the development of the company’s new ‘G2′ Secure touch-one solution for school safety and security. Given increasing security concerns across many school districts, it’s a promising sign that GAXY’s product received various awards in 2021 from Ed-Tech publications.
GAXY was honored with “The New Product Award” which is given to outstanding products positioned to enhance learning – as well as the 2021 THE Journal Award. This recognition from a leading industry media brand, is a sign of GAXY’s dedication to advancing the learning process through technology.
GAXY has been able to achieve notable growth in part because it established an Equity Line of Credit (ELOC) at the start of the year. According to this, the company issued shares to its institutional investors in exchange for cash – raising almost $6.7 million at a PPS of $0.0134.
While this explains some of the company’s backsliding throughout the year, the company was able to strengthen its cash flow position. This has resulted in GAXY’s highest ever quarterly revenue of $1.7 million, a $1 million reduction in its liabilities, and an increase to $7 million worth of assets, leading GAXY’s CEO – Gary LeCroy – to report that this “is an excellent start to our fiscal year 2022”.
But now that the company is in a strong financial position, GAXY has announced it is extinguishing the equity line and has no plans to issue any additional shares. Management has also assured investors that with a stronger balance sheet, GAXY will resort to traditional banking rather than issuing equity in the future.
Now GAXY is set to continue expanding its presence. In the last quarter, GAXY secured multiple contracts and catalog bids with national co-ops. The company also completed a $0.7 million install of interactive panels in the South Georgia school district in addition to securing a marketing opportunity in a Netflix original show. In light of this, CEO Gary LeCroy is bullish that the company could see even greater revenue over the next 12 months. GAXY’s CEO and CFO Magen McGahee, are optimistic enough regarding GAXY’s future that they hold 16.4 million shares in total which is a bullish sign for many investors.
Media Sentiment
@cooltigerx is bullish on GAXY for many reasons especially considering the company’s improved financial positions and strategic plans for the future.
Technical Analysis
Currently trading at $.0098, GAXY stock has a primary support at .006 and a weaker support at .0083 while its resistance shows at .0121. Accumulation has been trending upwards with a recent uptick and the RSI has dropped to 54 after overbuying. Meanwhile, the MACD is bearish.
Profit taking has slowed GAXY’s run, but if it continues to slide towards its support at .0083, GAXY stock could see rebound to its resistance at .0121.
Should you Buy?
GAXY has had a profitable year as is evident through its latest quarterly report, partnerships and emerging product lines. With its diverse product portfolio and continuous development and technological advancements, GAXY has several factors fueling its growth. For instance, the government’s funds for education have increased schools’ spending budgets which would inevitably lead to an increase in GAXY’s sales and revenues. Additionally, their strong financial position could allow the company to achieve major milestones heading into the new year.
GAXY looks promising for other reasons too. Aside from full transparency with investors regarding the ELOC, the company has had no convertible toxic debt since January 2021 and has no plans for any in the upcoming future. Additionally, no plans for a reverse split and with 4 billion authorized shares and 3.4 billion outstanding shares, there is very little room for dilution. With that in mind, investors are bullish on GAXY heading into the new year.
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