Small-Cap Technology

How to Invest in Elon Musk’s Next Trillion-Dollar Market: Brain-Computer Interfaces.

  • Elon Musk just raised another $205 Million for Neuralink, his latest game-changing bet on the future: AI-augmented humans. Neuralink is a startup looking to create brain-computer-interfaces (BCIs), which would usher in “superhuman cognition” by augmenting human brains with artificial intelligence.
  • 2021 is proving to be a breakout year for BCI companies. In less than 8 months, brain computer interface companies have already more than tripled the $97 million raised in all of last year. The quality of those investing in BCI companies is staggering, here’s a short list: Robert Nelson (Co-Founder of ARCH Venture Partners), Blake Byers (Byers Capital), Sam Altman (Chairman of YC Group and CEO of OpenAI), Fred Ehrsam (Co-founder of Paradigm and Coinbase) and Ken Howery (Co-Founder of PayPal and Founders Fund).
  • NeuroOne Medical Technologies Corporation (NASDAQ: NMTC) is a NASDAQ-listed company with next-generation cortical electrode technology and IP that could play a very important role in the development of AI-augmented human brains. Their advanced electrodes have already received FDA clearance, and are validated by their exclusive development and distribution agreement with multi-billion medical device company, Zimmer Biomet, who provided an upfront payment of $2 Million.
  • NMTC could hold the breakthrough technology necessary to support Elon Musk’s dreams for Neuralink. Their thin film electrode platform (developed in collaboration with Wisconsin Alumni Research Foundation and Mayo Clinic) allows for minimally-invasive and high-definition cortical electrodes, both key features necessary for BCIs and diagnostic and therapeutic neurological applications.
  • Neuroone is driven by an impressive team, with a CEO who previously grew another medical device company to a $250 Million valuation on the NASDAQ, leading AI researchers and neurosurgeons with backgrounds from DARPA and Mayo Clinic. Most recently, two former senior staff members at Neuralink (including one of its co-founding scientists) have joined NeuroOne.
  • NeuroOne recently uplisted to the NASDAQ. As awareness builds among institutions and retail investors, especially as excitement continues to ramp around BCI companies, NMTC could see a big step-up in valuation.

Elon Musk’s Next Big Bet: Neuralink and AI-Augmented Humans

Recently, in one of the most anticipated reveals of the decade, Elon Musk revealed what he’s been working on secretly for the past few years: Brain-Computer-Interfaces at Neuralink. Just like he did for electric vehicles and space exploration, Neuralink is Elon’s next big bet on the next trillion dollar market: pushing mankind into a cyborg future, where our brains can achieve a true symbiosis with artificial intelligence.

What does this mean for investors? Well just how Tesla and SpaceX played pivotal roles in turning electric vehicles and rocket ships into trillion-dollar industries, Neuralink is doing the same, rapidly growing awareness and investor appetite for neurotechnology. Funding for this space has more than tripled since last year, and big names such as Google Ventures, Founders Fund, and co-founders of PayPal and Coinbase are investing hand over fist.

With how rapidly the space is heating up, the BCI market has become a race, and Neuralink is currently losing. Just before Musk raised $205 million for Neuralink, their competitor, Synchron, became the first company to receive a go-ahead from the FDA to run a clinical trial for its BCI in human patients with severe paralysis.

In order to achieve Elon Musk’s dreams of creating true BCIs, powerful, safe, and scalable neurological electrode technology is critical. Without this technology, it will be nearly impossible to create truly incredible BCIs. This creates an interesting opportunity for investors in NeuroOne Medical (NASDAQ: NMTC), a company that happens to have next-generation cortical electrode technology that is FDA cleared and in human commercial use at the Mayo Clinic.

Elon acquired several companies with key technology for Tesla, and he could look to do the same here for Neuralink. NeuroOne could be an ideal acquisition target for Neuralink, as the Company is doing some incredible things on its own with strong intellectual property and partnerships that could give the company a dominant market position in this rapidly developing space.

What’s So Exciting About NeuroOne’s Technology?

NeuroOne (Ticker: NMTC) is a neuro-technology company with an initial focus on changing the standard of care for patients suffering from severe neurological disorders.  NeuroOne has developed high-fidelity electrodes designed to enhance and possibly shorten the diagnostic/treatment process for these disorders.

Prior to NeuroOne’s next-generation electrode technology, there have been limited improvements to commercially available technology over the years, which do not have the capability to increase resolution in the same capacity as NeuroOne’s. NeuroOne’s next-generation electrodes were designed for use by leading neurosurgeons and researchers, with the Company’s cortical electrode technology having resulted from its collaboration with both Wisconsin Alumni Research Foundation and Mayo Foundation for Medical Education and Research.

Demonstrating its next-generation capabilities, doctors at the Mayo Clinic were able to document pre-seizure activity (called micro-seizures) during clinical research with their patients using NeuroOne’s technology. Neuroone’s cortical electrodes have already received FDA 510(k) clearance and are available as minimally-invasive strips and grids, and they plan to commercialize their depth electrodes later this year. Their cortical electrodes have demonstrated an improvement in inflammatory response compared to existing competitive cortical electrodes when evaluated in animal testing at the Mayo Clinic.

Neurostimulation is one of the new frontiers in healthcare, where researchers have been assessing the benefits of electrically stimulating the nervous system to treat complex neurological disorders. This exciting new treatment paradigm is expected to take off; research firm Global Market Insights expects neurostimulation to be a $16 billion industry globally by 2024.

NMTC’s technology is initially targeting epilepsy, but plans to address Parkinson’s Disease (PD), chronic pain due to failed back surgeries, and many other severe neurological disorders in the future. Interestingly, because NeuroOne’s electrodes are highly scalable at a small size, the technology may be uniquely well suited for BCIs. In order for BCIs to be ready for commercial human use, they must have electrode technology sufficiently advanced such that they can support the high amounts of data necessary for AI applications.

World Class Validation: Mayo Clinic & its Employees Own a Stake in NMTC

NeuroOne may be the company to unlock the value of neurostimulation for patients. Perhaps attesting to the value they see in NeuroOne’s technology, the Mayo Clinic and employees of the Mayo Clinic currently own a meaningful position in NMTC’s public stock.

NeuroOne’s Impressive Team (Includes one of Neuralink’s Co-founding Scientists)

Given NeuroOne’s impressive roster of management and advisors, it is possible they may be able to advance this technology to a potentially market dominant position.

The Company’s President and CEO, Dave Rosa, held senior roles at Boston Scientific and St. Jude’s Medical. Recently, he served as CEO of a Nasdaq-listed medical device company, where he grew it to a $250 Million valuation.

The world-class talent on NeuroOne’s advisory boards come from prominent backgrounds from both leading academic hospitals and early-stage government-funded brain-machine interface research institutions.

Their scientific advisory board includes Mayo Clinic’s Greg Worrell MD, PhD and Gregory Esper MD, MBA of Emory University. And the company’s AI advisory board is chaired by Dr. Kip Ludwig, former Program Director for Neural Engineering at the NIH. He is joined by Dr. Doug Weber, Program Manager in the Biological Technologies Office at DARPA and Dr. Cristin Welle, a founder of the Neural Interfaces Program at the FDA’s Center for Devices and Radiological Health Office of Science and Engineering Labs.

Even leaders from Neuralink have joined the company, such as Vanessa Tolosa, a co-founding member of Neuralink; and Dr. Camilo Andres Diaz-Botia, leader of the microfabrication process engineering team at Neuralink.

Before joining NeuroOne’s scientific advisory board, Vanessa Tolosa served as the director of neural interfaces at Neuralink, where she directed the design, prototyping, development and testing of technologies related to implantable microelectrodes, electronics micro-assembly and hermetic packaging. Previously, at Lawrence Livermore National Laboratories (LLNL), Tolosa led all implantable neurotechnology efforts, including high-density electrode technology. You can watch Vanessa Tolosa discuss her work on Neuralink’s neural interfaces here, at one of Neuralink’s earlier presentations.

Before Dr. Diaz-Botia joined NeuroOne as the Director of Electrode Development, he led the microfabrication process engineering team at Neuralink. Under his direction, the team at Neuralink built and designed novel processes for integration of thin film neural probes with brain machine interface systems.

What’s the Opportunity for NMTC Investors?

NMTC has a tight capital structure, and according to the Company’s most recent quarterly filing, only has 12 million shares outstanding. This means the company is currently valued at ~$46 Million (as of 8/31/2021) and its shares trade at $3.88. Smart Money Markets believes that NMTC is wildly undervalued at these levels, and in fact, this Company appears to check almost every box for an undiscovered NASDAQ technology company with enormous upside once discovered by the broader retail and institutional investment community.  Here’s why:

  • NeuroOne’s lead Cortical Electrode product is FDA 510(k) cleared and is in human commercial use at the Mayo Clinic, a leader in cutting-edge healthcare. Importantly, NMTC said in a recent business update that it also submitted a second Electrode for FDA clearance, meaning the company likely has a near-term FDA catalyst.
  • NeuroOne is partnered with Zimmer Biomet, a $28.95 Billion medical device company, for NMTC’s Cortical Electrodes. Zimmer’s massive network could accelerate the sales of NeuroOne’s products. It’s also worth noting that multi-billion dollar companies like Zimmer don’t invest millions of dollars into companies like NMTC without a considerable amount of due diligence. Additionally, earlier this year, they successfully completed their first performance milestone of their agreement.
  • Mayo Clinic and its employees are investors in NMTC. Additionally, the Company has many existing relationships with large academic hospitals with neurosurgery distinctions such as University of Pittsburgh, the University of Wisconsin and others.
  • Perhaps the ultimate validation of NeuroOne’s science and intellectual property comes from Vanessa Tolosa, a co-founding scientist of Neuralink, who now holds a senior role at NeuroOne.
  • The addressable market opportunity for current and future applications of NeuroOne’s technology is massive. Over 10 million people worldwide suffer from Parkinson’s disease, with over 1 million located in the United States. Epilepsy affects 3.4 million people in the U.S. alone and is the fourth most common neurological condition according to the CDC. Funding for BCI companies is growing at a breakneck pace.
  • The company uplisted to the NASDAQ in the worst period of time for medical device companies. If not for the pandemic, NMTC’s technology likely would’ve garnered much more attention.

Huge Excitement Building Around Brain-Machine Interfaces…Thanks to Elon Musk and Neuralink

Overall, we expect excitement to pick up for NeuroOne and its electrode technology, especially as investors begin to take notice of the incredible team behind NeuroOne. The company is in position to address the huge market in epilepsy and BCIs with potentially best-in-class technology.

Musk’s reveal of Neuralink’s progress has created tremendous excitement around neurostimulation and BCIs, which can only benefit NeuroOne. Just like Tesla’s rise created a trillion-dollar market for battery, lithium, and electric vehicle companies around the world. For investors looking for undiscovered companies with big upside, NMTC could be the answer.

Remember, There Are Always Risks to Venture Investing

We always like to be balanced in our analysis, and despite our excitement about NMTC’s technology, management, and upside potential, it’s important to understand the risks of investing in venture stage companies like NMTC.  NMTC will need to raise more money to commercialize and develop their products, which will be dilutive to shareholders.  It’s unlikely, but NMTC could even run out of money and the Company’s shares could end up being worth less than they are now, or worth nothing at all.  We’ve known NMTC’s CEO Dave Rosa for a long time.  He’s an honest and hardworking guy that cares deeply about creating value for shareholders. But even with the best management and technology, things can always go wrong.  So, if you’re unsure about whether investing in NMTC or other venture stocks is right for you, talk to a financial advisor before investing.  The #1 rule: Don’t invest money into speculative stocks that you can’t afford to lose.

About Smart Money Markets

Smart Money Markets is a provider of paid-for research on publicly traded emerging growth companies. This is an advertisement. We are not a licensed broker-dealer and do not publish investment advice and remind readers that investing, especially in venture stage stocks, involves considerable risk. Although these stocks can offer big upside, they can also lose 100% of their value. Smart Money Markets encourages all readers to carefully review the SEC filings of any issuers we cover and consult with an investment professional before making any investment decisions. Smart Money Markets is a for-profit business and is typically compensated for coverage of issuers we cover as well as other advisory work we perform. Although we always strive to be objective and present the facts, you should assume we are biased because of the financial relationship we have with companies we write about. Smart Money Markets and affiliates have had a long-term advisory relationship with NMTC. We are currently compensated $20,000 per month and NMTC also pays for actual advertising costs incurred for this advertisement. We may receive additional compensation in the future, and if so, are unable to update this disclosure. We are long term believers in NMTC, don’t know when we will sell our stock, but will never sell stock within 90 days of any advertisement we facilitate.  Our principals, affiliates, and partners are also long shares of NMTC. This article was written by Smart Money Markets. NMTC reviewed it for accuracy prior to its distribution and use by Smart Money Markets. Please contact us at admin@smartmoneymkts.com for additional information or to subscribe to our intelligence service.