Recently, small cap stocks Insite Vision (OTC: INSV), Total Nutraceutical Solutions (OTC: ERGO) and Vuzix (CVE: VZX) all issued press releases to report hot patent or technology news. Specifically, Insite Vision (INSV) has reported that the Japanese Patent Office has issued it a “very broad” patent, Total Nutraceutical Solutions (ERGO) has filed a provisional patent on a hair care product and Vuzix (VZX) has unveiled its SMART Glasses Technology – the “holy grail of the wearable display industry.” However, just how hot are small cap stocks Insite Vision (INSV), Total Nutraceutical Solutions (ERGO) and Vuzix (VZX) and their recent news about patents or new technologies? Here is a closer look at all three to help you decide:
Insite Vision (OTC: INSV)
Insite Vision is advancing new ophthalmologic products for unmet eye care needs. On Monday, Insite Vision announced that the Japanese Patent Office has issued a Notice to Patent to the company. the “very broad” patent covers Insite Vision’s AzaSite family of products that will expire on March 31, 2019. Insite Vision also pointed out that Japan is the third largest ophthalmic market in the world after the US and the European Union. On Tuesday, Insite Vision fell 1.15% to $0.430 (INSV has a 52 week trading range of $0.30 to $1.02 a share) for a market cap of $56.7 million. Investors should be aware that Insite Vision has reported revenues of $6,613k, $3,069k, $3,110k and $3,880k for the past four quarters along with net income of $1,511k and net losses of $2,773k, $2,440k and $1,859k. As of September 30th, Insite Vision reported having $3,838k in cash and $25,491k in short-term investments to cover $12,589k in current liabilities and $58,558k. hence and while Insite Vision has reported profits and appears to have plenty of cash on hand, investors should have some concerns over the company’s debt levels.
Total Nutraceutical Solutions (OTC: ERGO)
Total Nutraceutical Solutions, whose name will be changing to Entia Biosciences this week, is a food biotechnology company that identifies, scientifically validates and then commercializes solutions to address multi-billion dollar markets for organic health, beauty and agriculture. Total Nutraceutical Solutions has recently announced that it has filed a provisional patent (“A Nutritional Approach to the Use of Ergothioneine for Hair and Nail Growth”) covering the use of ingestible and topically applied natural and/or synthetic L-Ergothioneine (Ergo) for the maintenance and improvement of hair and nail health, growth and natural coloring. It was also noted that the market for hair health and growth is easily worth billions of dollars. On Tuesday, Total Nutraceutical Solutions rose 2.27% to $0.09 (ERGO has a 52 week trading range of $0.03 to $0.11 a share) for a market cap of $5.96 million and the stock is up over 12% for the past week. However, investors should note that Total Nutraceutical Solutions has reported revenues of $109k (most recent quarter), $117k, $84k and $86k along with net losses of $201k, $211k, $683k and $344k. As of September 30th, Total Nutraceutical Solutions had just $8k to cover $775k in current liabilities – meaning it might have a hard time making inroads into the multi-billion dollar hair care market.
Vuzix (CVE: VZX)
Vuzix is a supplier of Video Eyewear products in the defense, consumer and media & entertainment markets. over the past week, Vuzix has been unveiling its SMART Glasses Technology that combines integrated HD display engines and waveguide optics to “literally break the boundaries of conventional optics and display solutions.” Vuzix’s press release also described the glasses as the “holy grail of the wearable display industry….” On Tuesday, Vuzix rose 9.09% to $0.06 (VZX has a 52 week trading range of $0.04 to $0.12 a share) for a market cap of $15.91 million. On the other hand, investors should note that Vuzix has reported falling revenues of $2.84M, $2.33M, $4.07M and $5.55M along with rising net losses of $92k, $93k, $0.42k and $48k. Vuzix also reported having just $41k in cash to cover $10.49M in current liabilities and $12.36M in total liabilities. in other words, Vuzix may have the holy grail on its hands but right now it may not have enough resources to see it commercialized on a large scale. Nevertheless, the technology and the company is worth watching.
The Bottom Line. the financials of Insite Vision (INSV), Total Nutraceutical Solutions (ERGO) and Vuzix (VZX) may not be the greatest but at the very least, investors and traders alike might want to keep an eye on these three stocks and their products or technologies.
