Nxt-ID, Inc. (NXTD), a company providing technology products and services for healthcare applications, has declined 7.48% in aftermarket trading sessions. Consequently, NXTD stock was trading at $0.37 when last checked. The decline seems to be due to profit-taking after NXTD surged 17.21% on Friday and closed the day at $0.40. The surge resulted from the company’s shareholders’ approval of reverse stock split proposals.
NXTD shareholders’ approval of reverse stock split
NXTD announced on Friday that its shareholders had approved the two reverse stock split proposals which were related to the common stock of NXT-ID as well as series C preferred stock. The approbation came at the special shareholders’ meeting of the company. The Board of Directors of the company approved a 1-for-10 reverse stock split for the company’s common stock. Besides, a corresponding 1-for-10 reverse stock split was also approved for the company’s series C preferred stock. The splits had to become effective after the closure of trading hours on Friday. The move ensured that the common stock of the company would continue to be listed on NASDAQ. The company said that it anticipates that the common stock would begin trading on Monday. Commenting on the development, Chia-Lin Simmons, Chief Executive Officer of NXT-ID said that the move would bring the company to a better position to create value for customers and investors.
Q2 2021 financial highlights
On 17th August, NXTD reported the financial results for the second quarter of the fiscal year 2021, which ended on 30TH June 2021. The company generated revenue of about $2.8 million, an increase of 14% when compared with the prior quarter. The gross profit for the quarter was $1.8 million against $1.6 million for the first quarter of 2021. The operating expenses were $2 million against $2.3 million for the first quarter of the fiscal year 2021. The operating loss for the three-month period was $212,000 against $783,000 in the prior quarter. The net loss for the quarter was estimated to be $1.2 million, against $5.8 million for the prior quarter. The loss per basic and diluted share for the period was $0.02 against $0.12 for the first quarter of 2021. Chia-Lin Simmons stated that the company has the potential to expand its customer base, as evident from the strong performance.
What’s ahead for NXTD?
During the last three months, NXTD stock has declined more than 45%. The prime reason for the decline was the constant mercurial performance of crypto-related stocks. However, a strong quarterly performance and business expansion strategies could change the fortunes of NXTD.
