Hi there,
I took a look into the company - to be honest, I don't think I'd be comfortable giving a well versed opinion on the stock. What I can say, is that on the surface it does look like it is operating in an industry that has the potential to be disruptive - I like companies that come into an existing market and disrupt it.
However, I can't speak to the science or viability of the product and admittedly, am not familiar enough with the competition.
Likewise, this is a company that is spending heavily on product development and has not yet begun to commercialize the product. In other words, it hasn't generated any revenue to date. Personally, I tend to stay away from those who have not yet translated concept into commercialization. For companies who don't generate revenue, there is only one way to continue operation - borrow money or raise equity through share offerings.
As a microcap, it likely can't get enough through credit so one can expect equity raises. The company started the year with $4M in cash on the balance sheet, and it now has approximately half of that. It is burning through about a million a quarter, so they will run out of cash soon at that rate. Given the recent runup in share price, it would not surprise me if the company announced a bought deal offering in the near future.
Depending on the terms, this could result in some downward pressure on the stock.
ALso of note, the company is now in overbought territory with a 14-day RSI of 85 so may be due for a short term pullback from a technical perspective.
All things to consider. IMO it remains a speculative play and investors should be cautious with an investment in the company.
Hope this helps - it was a tough one to analyse given the highly scientific nature and the fact it has not commercialized the product (yet anyway).
Mat