A bearish report on SMX (Security Matters) Public Limited Company was published on Fugazi Research's Substack. The company's share price was $23.98 as of January 13th.
Security Matters Public Limited Company is listed on Nasdaq as a Foreign Private Issuer. It is domiciled in Ireland with operations in Israel. The company has reported zero revenue in all SEC filings to date. It has promoted molecular marking and verification technologies for over a decade across multiple markets.
Its 20-F and 6-K disclosures confirm no commercial customers, no contracts, and no revenue generation. Losses continue to mount. Shareholder equity collapsed from roughly $11.4 million in fiscal year 2023 to about $1.3 million by mid-2025. The accumulated deficit exceeds $100 million. Filings reflect a business model centered on capital markets activity rather than operating performance.
Over roughly two years, SMX executed multiple reverse splits to maintain Nasdaq compliance. It subsequently expanded its share count again through discounted promissory notes, VWAP-based convertible instruments, warrant coverage, equity lines, and resale registrations. These structures provide counterparties with discounted entry and rapid liquidity. They create persistent dilution and downward pressure on the stock. Filings show a repeated cycle. Promotional technology narratives precede financing events. These are followed by dilution, equity erosion, and another reverse split. No improvement in revenue or cash flow occurs.
SMX's multi-jurisdiction structure and Foreign Private Issuer status allow it to issue discounted equity and modify capital structures without U.S. shareholder votes. This further enables the cycle. Aggressive promotional activity reinforces the pattern. This includes dozens of press releases in short windows and documented paid stock promotion campaigns funded directly or indirectly by the company.
Disclosures depict a financing-dependent issuer sustained by dilution rather than a commercial enterprise. Valuation is driven by capital structure mechanics instead of business fundamentals.
Previously, Fugazi Research covered a bullish thesis on Palo Alto Networks, Inc. by Magnus Ofstad in October 2024. It highlighted the strength of its integrated cybersecurity platform, AI-driven product expansion, and rising enterprise demand. PANW's stock price appreciated by approximately 5.93% since that coverage. Parts of the platform adoption thesis played out despite valuation concerns. The analysis of SMX highlights its capital structure risks and absence of revenue generation. This contrasts with a model driven by actual product growth.
SMX is not on the list of the 30 Most Popular Stocks Among Hedge Funds. Four hedge fund portfolios held SMX at the end of the third quarter, the same as the previous quarter.