Here's Why We Think Strikeforce Technologies Inc (OTCMKTS:SFOR) Just Rocketed

Strikeforce Technologies Inc (OTCMKTS:SFOR) is running up on Thursday, on seemingly no substantial fundamental drivers. A company doesn’t gain nearly 40% on 20 million shares trading hands without someone having a reason to load up, and we think we know what's going on. We also think that, if we are right, there's plenty more to be had on this one as a momentum play.Before we get into the detail, let's quickly look at Strikeforce as a company. The company designs, develops and sells software that protects desktop and mobile device hardware from cyber attack.The company has a couple of primary software offerings, one to protect desktops called GuardedID, which can be used on both Windows and Mac OSX, and another, MobileTrust, to protect mobile OS, which is again interoperable between Android and iOS.Sure, there are lot of companies out there right now doing exactly this, but very few (if any) are headed up by an ex JPMorgan Chase exec. Strikeforce is, with Mark Kay at the helm as CEO. We believe this sets the company apart from your standard OS security company, especially when it comes to the more shareholder-centric elements of leadership – raising capital, bringing in top talent, putting together deals, etc.In our last analysis we noted that the company had picked up a nice $9 million settlement and Microsoft had agreed to take on the patents by way of a license issued by Strikeforce, on the back of a patent infringement lawsuit surrounding some of the company's IP, and Microsoft's use of said IP in a host of its products.And that's we are here to discuss right now.At the time, markets basically got no information as to the details of the deal. The upfront payment (recorded as a one time lump some) we knew about, but Strikeforce had sued both Microsoft and one of Microsoft's subs, PhoneFactor, as two separate infringement cases.Here are some of the key statements from this 8K, which details the resolution (using 'details' lightly here):

"…the Company initiated patent litigation against PhoneFactor, Inc., a subsidiary of Microsoft Corporation""…The Company filed a separate action against Microsoft Corporation""As a consequence of the Release and License Agreement, the parties have moved to dismiss the action with prejudice, the Company has licensed the patents to Microsoft Corporation""…and the Company will receive a non-disclosable one-time lump sum payment."

Between then and now, nobody has yet been able to uncover what the licensing terms are for the technology. However, on October 17, Strikeforce management will put out a release relating to a shareholder annual meeting, which will in turn take place on November 18. The information that will hit on October 17 is the meeting materials from the upcoming annual meeting, and we think there's going to be some hint at some positive news for the company in these materials.Why do we think this?Well, this is a company that doesn’t have annual shareholder meetings. It's been in such a trench for the last decade or so, that leadership hasn’t wanted to sit face to face with shareholders and discuss the disappointing results. All of a sudden, after years of communication by way of required channels only, the company is asking shareholders to come and join it in New Jersey for a chat about what's happening, and more importantly, what's to come.For us, this is a big bullish flag, and it looks as though markets seem to agree. The company is gaining double digits just a matter of days before the meeting materials hit press, and this can really only be buying in anticipation of something positive.Whatever happens, we're going to stay on top of this. Subscribe below and we will keep you updated with our insights as things develop.Disclosure: We have no position in SFOR and have not been compensated for this article.