The Audio Pixels Holdings Ltd (ASX: AKP) share price edged higher to $17.35 this morning after the digital loudspeaker business posted an operating cash loss of $1.3 million on income of $83,000 for the September quarter.
According to the company Audio Pixels was founded in 2006 and has traded on the ASX as Audio Pixels since 2011.
However, it has never made anything much in sales and consistently posted operating cash losses.
Over the last 8 years as a listed business it has consistently reported it is developing revolutionary digital speakers that can be mass produced and commercialised.
However, so far the business has been long on promise, but short on delivery.
The amount of shares on issue has expanded considerably since 2011 to 28.3 million which gives it a market value around $492 million. It has $7.1 million cash on hand and is forecasting a cash outflow of $1.7 million over the December quarter.
Given the track record and lack of a commercial product or sales (let alone profits) it's hard to make sense of its valuation. I would not suggest buying Audio Pixels shares.
