MyDx Inc (OTCMKTS:MYDX)
MyDx Inc (OTCMKTS:MYDX) has developed an APP and tool that could have come straight out of Q’s laboratory in a Bond film. The San Diego, CA-based technology company has developed an analyzer that attaches to a device resembling a smartphone and uses an APP to determine the presence of chemicals we cannot see. The user simply places a sample into a disposable chamber attached to the device and in minutes an analysis is produced along with information that helps you determine the safety profile of the chemicals inherent in the substance being analyzed.
MyDx Inc (OTCMKTS:MYDX) has developed four sensors. One each for food, water, air, and cannabis. OrganaDx is a reusable product that shows it users the levels of pesticides in food; AquaDx detects the presence of harmful chemicals, such as lead or mercury, in your drinking water; AeroDx measure the air quality; and CannaDx analyzes cannabinoids for the presense of different chemicals so that its user may determine which chemical profile is best suited to their needs.
The device is not inexpensive – about the cost of a new iPhone. However, the APP is free and the disposable sample inserts are only about $1.49 each. The sensor chambers that receive the disposable sample inserts range in price from $25 – $70. That’s quite an expense to determine how bad the air quality is or if your organic apples truly lack harmful pesticides.
2016 financial results for MyDx Inc (OTCMKTS:MYDX), when compared to 2015’s, do not reflect a massive demand for a product that actually has a lot of utility despite the high cost. In 2015 the company ended the year with $143,680 in cash and ended 2016 with only $38,203. That drop is likely due to sales that have not materialized as expected. In 2015 MyDx Inc (OTCMKTS:MYDX) had $619,528 in accounts payable, but by the end of 2016 that number had grown to $1.08 million. Worryingly, Current liabilities grew from $965,178 in 2015 to $3.65 million by the end of 2016.
Despite the disappointing financial performance, it is difficult to view the product as one that will never take off. All one has to do is turn on the TV and hear about tainted water or air in the neighborhoods of developed nations or think about the millions of people that truly care about what they eat. So it isn’t hard to believe that this brings utility to the consumer. But maybe the cost and need for another hand-held device are technologies that still need to mature to gain the acceptance that is warranted, but unproven.
I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 96 hours. All information, or data, is provided with no guarantees of accuracy.
About the author: Marc has a degree in economics and a MSc. in Finance. Over his 20-year career, Marc has worked for global investment firms in Europe and the United States as an analyst, fund manager, and consultant.