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Jun 30, 2021
NXT-ID Q2 2021 Earnings Report
NXT-ID's financial and operating results were summarized.
Key Takeaways
NXT-ID reported a revenue increase of 12% compared to the same quarter last year, reaching $2.8 million. The company's operating loss was $212,000, while the net loss amounted to $1.2 million or $0.02 per share. The company also paid down $4.5 million in term debt during the quarter.
Revenue for the second quarter was $2.8 million, up 14% from the prior quarter and 12% from the same quarter last year.
Gross profit for the second quarter was $1.8 million, compared to $1.6 million in the prior quarter.
Operating loss for the second quarter was $212,000, compared to a loss of $783,000 in the prior quarter.
Net loss for the quarter was $1.2 million or $0.02 a share, compared to a net loss of $5.8 million or $0.12 a share in the prior quarter.
NXT-ID
NXT-ID
Forward Guidance
NXT-ID is focused on aligning its product development efforts, enhancing its product mix, and improving its financial position. The company recently raised additional working capital and received approval to continue listing on the NASDAQ, subject to certain milestones.
Positive Outlook
- NXT-ID won a U.S. General Services contract, which gives the opportunity to put products into the hands of many more who need them.
- The recent capital raise will help improve the financial position.
- Company received written communication from the NASDAQ hearings panel that it had granted the company's request to continue to be listed on the NASDAQ stock market.
- The health tech market is growing due to the need to provide a better quality of life for an aging population and a desire to lower health care costs.
- Nxt-ID has the right product portfolio for success.
Challenges Ahead
- The company is in a transition period.
- Gross margin was down 800 basis points from the second quarter last year.
- The company must hold a shareholder meeting by October 15.
- The company must receive shareholder approval at that meeting to effect a reverse split of our common stock.
- If the company does not receive shareholder approval to reverse split the common stock, it's very unlikely the company will be able to meet the dollar per share requirement which would then result in the delisting of our common stock from the NASDAQ stock market.