It will be interesting to see what NTEK management plans to do regarding a reverse split. In the vast majority of cases, a reverse split is undertaken to fulfill exchange listing requirements. An exchange generally specifies a minimum bid price for a stock to be listed.

A secondary benefit of a reverse split is that by reducing the shares outstanding and share float, the stock becomes harder to borrow, making it difficult for short sellers to short the stock.

OR.

It can lead to more pernicious action such as more dilution, by again raising the outstanding shares.

I bet on the first two scenarios.