Nxt-ID (NXTD), a leading provider of technology products and services for healthcare applications, has witnessed its stock price decline significantly over the past month due to investor concerns surrounding its reverse stock split proposal vote to avoid Nasdaq delisting. In addition, since the company has been struggling to stay afloat, is the penny stock a safe bet now? Read more to find out.A development-stage technology company, Nxt-ID, Inc. (NXTD), is engaged in developing and marketing solutions for healthcare applications, payment, and the Internet of Things (IoT). The company’s expansion into new customer segments and the extension of its products to federal and state agencies amid the growing need for telehealth solutions have helped it witness revenue growth of 14% year-over-year in the second quarter ended June 30, 2021.
However, the penny stock has declined 75% year-to-date and 38% over the past month. Furthermore, the stock is currently trading lower than its 50-day and 200-day moving averages of $0.62 and $1.06, respectively, which indicates a downtrend.
Investor anxiety surrounding the vote on a reverse stock split of its common stock, scheduled to be held on October 15, 2021, to avoid Nasdaq delisting, could cause its shares to plummet further. In addition, NXTD’s poor profitability and financial instability could make matters worse.