Q: Is aidx.to worth buying for a small cap portfolio?
5i Research Answer:
AIDX is a healthcare technology company that focuses on AI and data science for preventative care. AIDX’s revenue is quite volatile and has been on a drastic decline in the last two fiscal years of 2022 and 2023. However, revenue growth has started to recover year-to-date. AIDX is still unprofitable, burning cash. The balance sheet is in a cash-neutral position. AIDX would likely need to raise capital to fund growth. AIDX is a small, illiquid name that has the risk of dilution; it is a high-risk name and quite speculative, we think it can get interesting when the company starts to generate positive cash flow.