NXT-ID Inc (NASDAQ:NXTD) Prospects Brighten and Payoffs Emerge

There is a need to talk about NXT-ID Inc (NASDAQ:NXTD) considering their recent developments and assessing their impact on the stock market.The company has had one of the longest share price surges in the history of its operations. Over the last ten days, their share price has risen from just shy of $2 to close today at $7.3, over three and a half times its initial price. Furthermore, the company’s trading volumes have fluctuated over the past year, peaking at 4.0 million in January then dipping to a low of 1.0 million in November.The price trend discussed above can be seen in the chart below: NXTD Daily ChartInvestor interest has risen over the past month, however. As such, we took time to look at NXTD and evaluate its value proposition before we give a final verdict on its share price outlook.This article seeks to determine the firm’s value proposition to investors.BackgroundFor the sake of readers getting to know about NXTD for the first time, we’ll review the company’s business model just to provide perspective.NXTD is a security technology company. Its core technologies consist of those that support access control, payments and data protection. The company develops and commercializes innovative solutions for payments and Internet of Things (IoT) technologies.The company operates three mobile and IoT-related subsidiaries. Its LogicMark, LLC unit is a manufacturer and distributor of non-monitored and monitored personal emergency response systems (PERS). Fit Pay, Inc. is a wholly-owned subsidiary of NXTD that provides end-to-end solutions for contactless payments capabilities, authentication and credential management. NXTD’s other subsidiary is 3D-ID LLC, which provides biometric identification and authentication.Fit PayFit Pay boasts a proprietary technology platform called FitPay Payment Platform, or simply FitPay. The platform supports credential management, authentication, payment and an array of secure services to the IoT ecosystem. FitPay platform uses a payment security technology called tokenization.Fit Pay is one of only six approved Visa token service providers. Visa Inc (NYSE:V) is one of the financial services companies that have embraced IoT payments.The management of NXTD is making efforts to increase investor awareness around the stock to increase the demand for the stock. Increased buyer interest will put upward pressure on the stock price. On September 20, Executive Casts (EC) announced that NXTD has joined its platform to connect to connect with investors by highlighting various aspects of its business. EC is a business focused on providing content and investor outreach for public companies.Revenue Driving ContractsIn recent months, NXTD has signed several contracts that should support revenue growth and provide vital reference to win more business.On September 19, Fit Pay announced that it was providing payment capabilities for a new biometric payment key fob called Bee, which is a product of a financial technology company called Radius. Bee will be integrated with FitPay to enable it to make contactless payment transactions at NFC-enabled retail POS (point-of-sale) locations.Bank of America Corp (NYSE:BAC), the second-largest American bank by assets, has also adopted NXTD’s FitPay payment platform. On September 7, Fit Pay announced collaboration with Bank of America. The collaboration is about extending contactless payment capabilities to Bank of America customers so that they can make transaction directly from new devices such as smart wearable bands or smartwatches.The collaboration with Bank of America came shortly after Fit Pay enlisted smartwatch maker Garmin Ltd (NASDAQ:GRMN) as partner. Garmin integrated FitPay into its new smartwatch to provide customers with the ability to pay through the wearable using a service called Garmin Pay. Garmin intends to integrate FitPay into more of its new wearable devices.Financial PerformanceThe company has done quite a lot in a bid to ensure that they continue to grow as much financially as they do operationally. The above is supported by their current financial performance which can only be described as great.Their revenues rose by great margins as compared to the same period last year. The company closed June 2017 with revenues of $21.9 million as compared to the $582,000 they grossed in the same period in 2016. This jump is quite impeccable and goes to show that NXTD is poised for excellence.Despite this, their operating expenses and loan book need to be managed as the company’s $10.5 million and $5.9 million in operating and interest expenses led them to a loss position of over $8.3 million. However, this being a significant drop from their previous loss of $15.6 million in June 2016.Furthermore, they need to manage their working capital which stands at a deficit of over $7.5 million.Despite the above, the company seems to be doing quite well in their operations as their management are quite confident of better financial performance going forward. We remain confident that upon their projects paying off, the company will in turn grow into a profitable cash flow positive entity.ConclusionIn the light of the historical revenue growth, new revenue growth prospects and the innovation surrounding FitPay, investors are advised to consider investing in NXT-ID Inc to reap the potential benefits.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.