Core Thesis - The bearish thesis on Security Matters Public Limited Company (SMX) highlights its lack of revenue generation and reliance on capital markets for financing rather than operational performance [1][6]. Financial Performance - SMX has reported zero revenue in all SEC filings to date, despite over a decade of promoting its molecular marking and verification technologies [2][3]. - The company's shareholder equity has significantly declined from approximately $11.4 million in FY 2023 to about $1.3 million by mid-2025, with an accumulated deficit exceeding $100 million [3]. Business Model and Operations - SMX's business model is primarily focused on capital markets activity rather than generating revenue from commercial customers or contracts [3][6]. - The company has executed multiple reverse splits to maintain Nasdaq compliance, followed by increasing its share count through various financing mechanisms, leading to persistent dilution and downward pressure on its stock price [4]. Capital Structure and Dilution - SMX's structure as a Foreign Private Issuer allows it to issue discounted equity and modify capital structures without requiring U.S. shareholder votes, facilitating a cycle of dilution [5][6]. - The company engages in aggressive promotional activities, including numerous press releases and paid stock promotion campaigns, which are funded directly or indirectly by SMX [5]. Market Position and Valuation - The disclosures indicate that SMX operates as a financing-dependent issuer, with its valuation driven more by capital structure mechanics than by actual business fundamentals [6].