Would you mind explaining market cap and why it's important as if you're talking to a second grader? What are you looking at to see their top line isn't growing?
Market Cap is how much the outstanding shares are worth. 10 shares outstanding trading for $10 means the company has a $100 market cap.
Companies get classified into large-cap, mid-cap, small-cap, etc, depending on how much they're worth. There's no concrete definition, and it changes over time, but generally today more than $10 billion would be considered a large-cap stock. Mid-cap would be something like $2 or $3 billion to $10 billion. Etc. Each classification has different characteristic. Large-cap would be more well established companies, that the average person knows about. Coca-Cola, Johnson and Johnson, etc. You're not going to get gargantuan returns usually, but they're generally much more safe, often pay a dividend, and should give more consistent returns.
What you're dealing with is a micro-cap - about $50 million to $300 million. Relatively speaking, that's an insignificant amount of money. They aren't well established companies. So you're going to have much more limited info on them, there's going to be much greater volatility in the price it trades at, and it's going to be a far riskier investment. Because they're generally dealing in unproven products. You could get massive gains...you could also see your investment go to 0.
For their revenues I just looked at their financial statements. They had $8.7 million in revenues in 2015. That jumped to $14.2 million in 2016 but is down to $10.3 million for the last 12 months. But they have 6.4x more shares outstanding now than they did in 2015. The company issued a whole boatload of additional shares, probably because they needed to raise additional capital. The opposite of what many large-cap stocks are doing today, which is buying back their shares.
If a company isn't growing earnings, but reduces the amount of shares outstanding,
earnings per share can still go up, so shareholders should generally be rewarded with a higher market value in their shares. What EKSO is doing is the opposite. Or would be if they were profitable.
Imagine having a $100 bill that you have to split up but instead of splitting it up among 10 people now you have to split it up among 64 people. That's what having 6.4X more shares outstanding means, to oversimplify.
But EKSO is not making any money anyway. From 2015 to 2021 they haven't made a dime. Every year has been losses.
