NXT-ID Inc. (NXTD) research, news, and more from GeoInvesting

Company description

Wed, 21 Aug 2013 04:00:00 GMT

Nxt-ID, Inc., a development stage company, provides various biometric solutions for the mobile platforms, access control, and law enforcement facial recognition markets. The company develops Wocket, a physical electronic wallet that is intended to hold information from credit cards, identification cards, and virtually any card to allow a specific owner of the card to configure a single electronic card to replicate any of the copied cards; MobileBio FaceMatch that is intended to serve as a modular facial recognition system for smartphones, tablets, laptop, and desktop computers; and MobileBio Sensor, which uses various secure devices, where the identification of the specific individual is required. It also provides 3D FaceMatch Biometric Identity Systems, an identity management platform providing fusion of 3D facial recognition, 2D facial recognition, and optional fingerprint biometrics; and 3D SketchArtist, a 3D software face composite sketch tool that makes sketching a face. The company was founded in 2011 and is headquartered in Shelton, Connecticut.

Comments & Business Outlook

Mon, 26 Feb 2018 14:23:17 GMT

RIVERWOODS, Illinois and MELBOURNE, Florida, February 26, 2018 /PRNewswire/ --

Discover Financial Services and FitPay, Inc., a wholly owned subsidiary of NXT-ID, Inc., today announced a network services agreement to allow devices that are integrated with the FitPay Payment Platform[TM] to provision tokenized payment credentials through Discover® Digital Exchange (DDX). The agreement enables Discover cardholders, along with alliance partner cards, to easily make contactless payment transactions at retail locations with wearable or Internet of Things (IoT) devices that include payment capabilities powered by FitPay[TM].

"With the advancements of mobile technology, the way customers interact with merchants is being re-imagined with an eye toward more secure and convenient methods of payment," said Diane Offereins, Discover's president of payment services. "This integration with FitPay is one more way in which Discover is continuing to enhance the payment experience and provide more options for our cardholders on how and where they pay."

Under the agreement, FitPay's payment and digital wallet platform will be integrated with the Discover tokenization platform, DDX. FitPay's platform enables manufacturers of IoT and wearable devices to add contactless payment capabilities to their products, making it possible for consumers to pay for goods and services at near field communication (NFC)-enabled point-of-sale terminals with a simple tap. The platform uses tokenization, a payment security technology that replaces cardholders' account information with a unique digital identifier ("payment token"), to transact more secure contactless payments. The agreement gives Discover cardholders access to the latest contactless payment technology.

"Consumers should have options in how they pay, and this agreement makes cutting-edge payment devices available to Discover cardholders," said Michael Orlando, COO of NXT-ID and president of FitPay, Inc. "Making payments easy, secure and frictionless requires building an extensive ecosystem. Discover is a unique and important part of that ecosystem, and we are very pleased be able to make the network available to devices on the FitPay Platform."

Manufacturers of 15 IoT and wearable devices are currently integrating with the FitPay Payment Platform. Product announcements from manufacturers of the devices integrating with the FitPay platform are anticipated in 2018.

Research

Wed, 14 Feb 2018 15:37:21 GMT

NXT-ID (NASDAQ:NXTD) ($2.11; $50.6M market cap)

On August 28, 2017, when the stock was trading at $2.00, we stated we had initiated a long position based on Q2 2017 financial results possibly being an inflection point for growth in revenue and profitability. The stock had a wild ride the last 6 months, reaching a intraday high of over $8 per share during a spate of cryptocurrency/blockchain news from a myriad of companies in late December.

We have decided to sideline our approach for now and observe if new customer relationships, along with recent stock offerings used to pay down high interest bearing debt, will indeed enable the company to reach profitability. In the meantime, we exited our small long position.

Research

Fri, 10 Nov 2017 16:32:37 GMT

Nxt-Id Inc. (NASDAQ:NXTD) ($1.38; MC$21.0m) , a technology company focused on products, solutions and services for security on mobile devices, announced a private placement yesterday, after which shares were down strong (18%). We are certainly not happy with the choice of the underwriters the Company used. We were under the impression that the company did not need to raise money any time soon. However, NXTD is using the proceeds to pay off high interest bearing debt (15%). So, the move probably improves the risk profile of the Company. Obviously, we think it would have been in management’s best interest to execute the offering at higher prices, especially if its growth plan is successful.

Under the terms of the transaction NXTD will raise $4,000,000. Investors will receive for $1.36 one share of common stock and one warrant to buy 0.85 shares at an exercise price of $2.00. The warrants sold in the private placement will be exercisable six months following the date of issuance, will expire on the fifth anniversary of the date they become exercisable, and are not registered for trading.

Research

Thu, 31 Aug 2017 13:45:07 GMT

NXTD ($2.00) announced that it is powering the payment capabilities for the vívoactive 3, a new smartwatch by leading wearables company $GRMN ($51.73)

"Our team is extremely excited to be working with Garmin to enable Garmin Pay. The inspiration behind FitPay's drive to enable payments on a whole new generation of devices came while on a bike ride wearing my Garmin," said Michael Orlando, president of FitPay, Inc. and COO of NXT-ID. "The vívoactive 3 with Garmin Pay gives people with active lifestyles an incredibly easy and convenient way to pay without having to carry a phone or wallet - something anyone who runs, bikes or just leads a fast-paced life will love."

Research

Mon, 28 Aug 2017 15:10:32 GMT

Established a small position in NXTD ($2.00) based on Q2 2017 financial results possibly being a near-term inflection point for growth in revenue and profitability. See our past research notes here. Management interview was positive, and we’ll have more details later.

Research

Thu, 24 Aug 2017 15:12:14 GMT

NXTD ($1.67) - We took a closer look at NXTD financials. In our July 31, 2017 note we stated that based off the preliminary numbers provided by the Company (and a related conference call), we estimated NXTD’s Q2 2017 non-GAAP EPS to be $0.10. On August 16, 2017 the companyannounced its Q2 2017 results but did not provide non-GAAP numbers. The company reported a gaap loss per share of $0.15. After a deeper dive into the 10-Q, we calculate non-GAAP EPS to be $0.08 (pre tax). We will continue to probe into the company’s secure payment business model.

Research

Wed, 16 Aug 2017 15:27:52 GMT

NXTD ($1.70) announced full Q2 2017 results:

Sales of $7.6 million vs $38,493 in the prior year
GAAP Loss per share of $0.15 vs loss per share of $0.45

We recently noticed NXTD when it announced its preliminary results on Jul 31st. The company also held a webcast on 8/2/2017 to elaborate on the results. While this quarter has not produced the bottom line EPS we are hoping for, the operational strength of the business hints that strong EPS by end of the year might be achievable.

Quotes from management:

“LogicMark continues to perform strongly. It posted its second straight quarter of record revenue. Our deliveries of the flye card to WorldVentures also continued at a strong pace as WorldVentures has increased its distribution activities.

Our new addition, Fit Pay, is also already adding momentum. We announced Fit Pay is providing payment capabilities to Token, a new connected ring developed by Tokenize, Inc. Fit Pay also announced business milestones with both Visa and Mastercard in the last two months.

After a successful first half of 2017, we are looking forward to the rest of the year with continued growth from our existing business and new capabilities from Fit Pay coming to market."

The company webcast indicated that the company’s loss was attributable to a high interest burden, that came with the the July 2016 acquisition of Logicmark. The interest expense for the last quarter was $1.7 million or about 12 cents per fully diluted share. The company has a 15% interest rate on the LogicMark loan and is confident to refinance this debt soon.

“And lastly, our next step now is we are working to refinance the $15 million in debt that we have to save on considerable amount of interest that we are paying at the moment. And so I'm hopeful that that will be accomplished before the end of the year.”

Additionally comments on the capital structure during the call were encouraging

“So the idea is to just refinance the debt at a lower interest rate to free up cash flow. We definitely do not desire to further dilute the shares outstanding, and there would need to be a good accretive reason to do so, going forward. But what we're trying to do is to clean up our capital structure and generate cash.”

Additionally the company has been building rolling out a big loyalty card program with WorldVentures that is supposed to gain traction in 2017.

“So WorldVentures is definitely shipping out increased quantities in their limited release, and they will continue to expand that over the next few months. The timing of the full general release has still not been locked down other than we believe it's going to be in 2017. And the general release is the time when the numbers increase substantially. So I would like to speculate on when exactly that was and when it happens, it will make a tremendous difference. But I don't have enough information to know precisely when that will be, Kris.”

While we find the operational developments interesting, we want to see NXTD produce stronger EPS before we can feel comfortable coding it to a GeoBargain.

Research

Wed, 02 Aug 2017 15:15:20 GMT

** Considering NXTD for New Buy on Pullback Mock Portfolio

Please stay tuned as we consider the possibility of introducing Buy On Pullback Mock Portfolio 6.0, with the addition of NXTD ($1.65). We are still performing a bit of due diligence on the company and plan to interview management shortly. In our July 31, 2017 email, after NXTD’s preliminary Q2 2017 earnings release, we broke out the implied EPS, which potentially signals an inflection point in the company’s growth story.

Research

Mon, 31 Jul 2017 15:24:28 GMT

NXTD ($1.46; marked up 15%) announced preliminary Q2 2017 results:

Revenue for Q2 2017 was approximately $7.6 million compared to $38,493 for the same period in previous year and approximately $6.7 million for Q1 2017
Operating income for Q2 2017 was approximately $0.7 million compared to an operating loss of $(2.3) million in Q2 2016. The operating income in Q1 2017 was approximately $1.1 million

Although the company did not provide EPS numbers, we estimate adjusted EPS for Q2 2017 to be roughly $0.10 per share. We think shares look attractive, if the company can continue to operate at this EPS rate ($0.40 annualized). We will move this stock up our DD priority chain.

Quotes from management:

“Our second quarter results for 2017 show continued growth following the significant progress we reported in Q1 2017," said Gino Pereira, Chief Executive Officer of NXT-ID. "LogicMark continues to perform strongly and flye card deliveries to World Ventures continued at a strong pace as they have increased their distribution of the flye card. Revenues from Q2 included minimal revenues from FitPay and we anticipate that consistent revenues from FitPay will commence in Q4 2017. Expenses for the six months and Q2 2017 increased due to increased overhead from the FitPay acquisition. After a successful first half of 2017 we are looking forward to the rest of the year with continued growth from our existing business and new capabilities from FitPay coming to market."

Pump and Dump Watch

Mon, 16 Mar 2015 04:00:00 GMT

Disclosure: GeoInvesting is providing this information for your edification and in no way has any affiliation with any promoters and/or newsletters disseminating information on NXTD, nor is GeoInvesting being paid to post this information. At times, the GeoTeam may trade P&D's on a long or short basis, depending on how we feel the momentum of the stocks will be affected by the efforts of stock promoters and any ensuing dumps.