NXT-ID Inc (NASDAQ: NXTD) On A Growth Path, Will The Stock Follow?

Since the advent of the internet, the issue of cyber security has been an ongoing cycle of security companies developing new technology to keep cyber criminals/hackers at bay, until the “bad guys” find a way to circumvent the latest security technology, at which time the cycles repeats. The demand for new security technology becomes inevitable at the point in the cycle when the criminals/hackers gain the upper hand. Cyber security companies are constantly attempting to anticipate the next step in the evolution of cyber/digital security for all types of business, consumers, and government applications. NXT-ID Inc (NASDAQ:NXTD) is one such company capitalizing on the cyber security “cat and mouse game” that will maintain an ongoing demand for cyber security technology.

NXT-ID, Inc. is a security technology company providing security for finance, assets, and healthcare. The Company’s innovative MobileBio solution mitigates risks associated with mobile computing, m-commerce, and smart OS-enabled devices. With extensive experience in biometric identity verification, security and privacy, encryption and data protection, payments, miniaturization and sensor technologies, the Company partners with industry leading companies to provide solutions for modern payment and the Internet of Things (“IoT”) applications. The Company’s wholly owned subsidiary, LogicMark, LLC, manufactures and distributes non-monitored and monitored personal emergency response systems (“PERS”) sold through the United States Department of Veterans Affairs (“VA”), healthcare durable medical equipment dealers and distributors and monitored security dealers and distributors.

Recently, NXT-ID has recently taken some steps to better its position in the security technology industry. On March 27, 2017 the company, along with Fit Pay, Inc., a privately held provider of payment, credential management, and authentication platform services, announced that the companies entered into Letter of Intent to combine their businesses in a deal that includes stock and cash consideration. NXT-ID will not be raising additional capital to complete this transaction. Fit Pay’s technology platform provides payment, credential management, authentication capabilities and other secure services to wearable and IoT devices. Fit Pay has already integrated with the major credit card networks and chip manufacturers to provide an all-in-one solution and flexible integration. Gino Pereira, Chief Executive Officer of NXT-ID, Inc. commented:

“This potential transaction with Fit Pay would not only add a critical component to our payment and authentication products, but also a platform which will enable a whole new suite of offerings including payments, credential management, and secure authentication services.  Fit Pay’s leadership team has over 50 years of experience in the payment space. The completion of this transaction would provide an important addition to our business model, increasing our opportunities with existing products and allowing us to rapidly expand in digital payments and the Internet of Things (IoT), both of which are part of our strategic plan.”

On April 11, 2017, NXT-ID, Inc. announced the appointment of independent Directors Mr. Robin D. Richards and Mr. John Bendheim to its Board of Directors, furthering the company’s corporate governance and expertise. Mr. Robin D. Richards is currently Chairman and Chief Executive Officer of Career Arc. He is a proven successful entrepreneur, visionary strategist and a co-founder of the company. Mr. John Bendheim is known as a savvy philanthropist, entrepreneur and investor. Mr. Bendheim serves as the President of Bendheim Enterprises Inc. In addition, Mr. Bendheim serves as a Vice President at Leon Lowenstein Foundation, Inc. He founded Inland Homes in 1994 and has specialized in providing equity funding for real estate transactions. He served as the President of Benditel Incorporated from 1988 to 1994. The addition of the two new board members brings considerable expertise to the company.

On April 13, 2017 an industry publication, Nordic Semiconductor’s quarterly technology magazine, published in its Spring 2017 edition that NXT-ID unveiled its IoT Stamp module, designed for integration into wearables, portable devices, and Internet of Things (IoT) applications. The IoT Stamp is said to have the smallest footprint of any combined Bluetooth low energy and NFC module on the market. Powered by Nordic’s nRF52832 SoC, the module is designed as a ‘drop-in’ solution to help manufacturers, with little or no RF expertise, reduce time-to-market.

NXTD stock has been on a steady downward trend since the beginning of 2017. It made a strong upward spike on January 18, 2017 topping out at $4.17 before completely retracing and resuming the down trend. The stock is currently trading at $1.60. Fourth quarter financials for 2016 indicate a sharp increase in revenues reaching  approximately $4,500,000 for the three months ended December 31, 2016 compared to $83,358 for the same period in 2015. Current market capitalization stands at $11.81 million, on 7.38 million shares outstanding as of April 12, 2017.

The strong boost in revenues may be a signal that NXT-ID, Inc. is on a path to strong growth. If the increased revenues continue, the stock price will soon begin to reflect their positive effects. We will be updating our subscribers as soon as we know more. For the latest updates on NXTD, sign up below!

Disclosure: We have no position in NXTD and have not been compensated for this article.