The company cited a litany of reasons for revenue plunging 67% from the year-ago period, including the Chinese New Year, the trade war between the U.S. and China, the COVID-19 pandemic, and working capital constraints.
The combined impact of these factors prevented Remark from rolling out new products while delaying testing and customization work on other projects. Revenue plunged to $400,000 from $1.2 million last year, though it did narrow its losses to $3.5 million from $5.9 million, but only because costs were cut in half, as it was unable to complete any projects and it laid off staff.
Remark Holdings stock has soared in 2020, rising from a literal penny stock to reach a high of around $3.50 in May. Those gains have since diminished, and today the shares are plunging.
It reportedly was able to repurpose its thermal imaging equipment for use in a post-pandemic world to scan large crowds and high-traffic areas for indications people may need secondary screening for COVID-19.
Its stock surged when it was rumored to have partnered with Wynn Resorts (NASDAQ:WYNN) as the casino operator prepared to reopen its gaming halls. The deal, though, could not be confirmed, and its stock has since lost about 45% of its value.