Revenue during the quarter plunged 60.17 percent to $0.06 million from $0.14 million in the previous year period. Gross margin for the quarter expanded 186 basis points over the previous year period to 63.94 percent.

Operating loss for the quarter was $0.50 million, compared with an operating loss of $0.62 million in the previous year period.

"Early third quarter we received verbal confirmation of business expansion opportunities with several existing customers, signed Master Service Agreements with 2 large independent oil and gas producers, furthered discussions with several additional producers to sign similar engagements, and initiated sales through two regional distributors. In light of those developments, we anticipated that revenue growth in the third and fourth quarters, coupled with the funds raised in July, would carry the Company to breakeven in December. Unfortunately, our estimates were not correct. While IET does not appear to have lost any of the opportunities that led to the estimates, the timing was off. During the third quarter 2016 we serviced a total of 84 wells on the Excelyte® maintenance program - significantly less than were anticipated. Although we have now begun servicing additional wells in our pipeline, we are approximately 4 to 6 months behind expectations and the time-line to break-even is similarly delayed. Consequently, we are responding to the revised time-line by making adjustments for the endurance of the Company," commented David LaVance, president, chief executive officer and chairman of the Board of IET.

Cash conversion cycle (CCC) has increased to 1596 days for the quarter from 377 days for the last year period. Days sales outstanding went up to 82 days for the quarter compared with 46 days for the same period last year.

Days inventory outstanding has increased to 282 days for the quarter compared with 231 days for the previous year period. At the same time, days payable outstanding went up to 1960 days for the quarter from 655 for the same period last year.