@HaroldAnderson：LUCY is seeking public investment to continue its commercialization efforts for its flagship smart glasses products. The firm’s financials have shown growing topline revenue from a tiny base, a swing to positive gross profit, growing operating losses and increasing cash used in operations. Free cash flow for the twelve months ended September 30, 2021, was negative ($920,699). Sales and Marketing expenses as a percentage of total revenue have trended higher as revenue has increased; its Sales and Marketing efficiency rate rose to 0.4x in the most recent reporting period. The firm currently plans to pay no dividend on its shares and anticipates that it will use any future earnings for company investment. The market opportunity for smart glasses is large and expected to grow at a strong rate over the coming years, although much of that growth may be in industrial/business sectors rather than consumer use. The primary risk to the company’s outlook is the strong competitive landscape against which it must compete. To sweeten the offering, management is offering one warrant for each share purchased, although we don’t know the exercise price. This structure has become a trend lately for micro-cap IPOs, but the jury is out on whether that will be an effective long-term strategy. In any event, the company is still extremely small and may struggle to get distribution and consumer buy-in for such a new product concept at the retail level. I'm on Hold for the LUCY. Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.
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