Nxt-ID Inc. (NASDAQ: NXTD) shares have been on a mission so far this week, and 24/7 Wall St. wanted to take a look under the hood to see what is really in store for this company and what its prospects are after recent news. This is only prudent now that shares have more than doubled in two days. Several developments have been seen of late.

Nxt-ID had a public offering of more than 2.1 million shares in common stock that were each paired with a warrant. The company received $5.85 million in gross proceeds from the offering, before deducting the underwriting discount and offering expenses.

The company is using the proceeds from this offering for general corporate purposes, including working capital, product development and marketing activities. However, we likely can assume from recent moves the company has made that it put this money into its product, the Wocket.

This product is similar to the recent Apple Pay in terms of being a digital wallet. However, unlike competitors its platform is not on a smartphone or cell phone. It serves to work with biometric authentication on the NFC network, adding to its overall security.

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Gino Pereira, CEO of Nxt-ID, commented on the next generation of the wallet and how the Wocket will play into it:

Wocket secures all the information and cards users commonly store in their wallet, allowing them to continue paying with and using their credit, debit, loyalty, and insurance cards just as they do today. Wocket can even store login credentials, crypto currency accounts, and one thing that no digital wallet can ever replace — cash. Wocket completely replaces the wallet and hosts a new generation of wallets that combine fashion with personal security.

The stock recently traded at $2.97, which is roughly 40% up from the previous day’s close of $2.12. Share prices have been as high as $3.52 earlier in Tuesday’s trading, for a gain of 66%.

Nxt-ID does not have a consensus price target from analysts but it does have a 52-week range of $1.36 to $7.25. It has a market cap of $76 million, which is so small that few analysts will actually issue coverage.

Trying to determine a fair estimate for a stock this small and this volatile would be a guessing game. Stocks of this size gain handily and fall handily based on the direction of their news flow. Those directions can then be magnified massively by a flood of trading volume that gets behind or in front of that. This company is so small that any verdict on this company or its prospects will have to be up to other people to decide.

As far as a little background, investors might want to take note here. From the company’s 2013 annual report:

• As of December 31, 2013, we had a total of 6 full-time employees, 5 in product engineering and 1 in administration and finance.
• We are uncertain of our ability to continue as a going concern, indicating the possibility that we may not be able to operate in the future. … To date, we have completed only the initial stages of our business plan and we can provide no assurance that we will be able to generate a sufficient amount of revenue, if at all, from our business in order to achieve profitability.

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