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NXT-ID Inc (NASDAQ:NXTD): Prospects Brighten

NXT-ID Inc (NASDAQ:NXTD): Prospects Brighten
Written by
Jim Bloom
Published on
October 9, 2017
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We need to talk about NXT-ID Inc (NASDAQ:NXTD) again to shed light on the recent developments and see how they are going to impact the stock in the short and long run.In our last coverage of NXTD, which you can read here, we noted that the stock was on a favorable trajectory. We maintain this position because of a number of developments that have reinforced our conviction that NXTD has bright revenue and profit prospects.We’ll get into the details shortly, but first take a look at NXTD’s share price action below. NXTD Daily ChartBusinessFor the sake of our readers who are 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.NXTD has put out a number of announcements in recent months and a few of them stand out in our view because we see potential in them driving revenue growth and drawing more buyers into the stock.On October 3, NXTD announced that Michael Orlando, who is its chief operating officer and the president of its Fit Pay subsidiary, will be a featured speaker at a high-powered industry conference hosted by Secure Technology Alliance. For a little background here, the Secure Technology Alliance is a nonprofit, multi-industry association focused on stimulating the understanding, adoption and broad application of secure solutions. These include smart cards, embedded chip technology and related hardware and softwareThe conference, dubbed “IoT Payments 2017”, was scheduled to take place in Austin, Texas, and run from October 10 to October 11, 2017.The event will bring together experts from the IoT and payments communities to discuss the most significant developments, innovations and efforts that are driving secure, seamless IoT payments. The featured presentation by Orlando will focus on areas such as IoT payments business models, use cases and adoption trends.It’s important for readers to note at this juncture that it is Orlando who co-founded Fit Pay in 2014 as a business focused on providing end-to-end contactless payment solution for IoT devices. NXTD acquired Fit Pay in May 2017 and made it a wholly-owned subsidiary. Orlando is the chief operating officer (COO) of NXTD.Fit 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.We would like to remind readers that 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.For now, we’ll sum up the issue of Orlando’s featured presentation by saying that we believe that the IoT Payments 2017 conference will bring much-needed exposure to FitPay and this could result in more business contracts for NXTD. Additionally, we see the event as providing investor awareness opportunity for NXTD.The management of NXTD has continued to make efforts to increase investor awareness around the stock and we appreciate this because we see it bringing more buyers into the stock and 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.Contracts that will drive revenue growthIn recent months, NXTD has signed several contracts that in our view will 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 Radiius. Bee will be integrated with FitPay to enable it to make contactless payment transactions at NFC-enabled retail POS (point-of-sale) locations.In relation to the contract with Radiius regarding integration of FitPay into Bee payment service, Michael Orlando, the president of Fit Pay and COO of NXTD stated:

"Bee is an awesome expression of the evolution of IoT payment devices and making how people pay fit more seamlessly into how they live. Bee's sleek form factor and security features will create a new buzz in mobile payments. It's no longer just about the smartphone."

SourceBank 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.ConclusionIn addition to the favorable developments we’ve highlighted, our view that NXTD is also strengthened by the company’s growing revenues. For 2Q17, the company revenue came to $7.7 million, sharply up from revenue of just $38,493 in a similar quarter last year.We will be updating our subscribers as soon as we know more. For the latest updates on NXTD, sign up below!Image courtesy of Exceptional Software via FlickrDisclosure: We have no position in NXTD and have not been compensated for this article.

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