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When considering small cap investments, one important consideration is how long the company can survive without producing additional revenue. To measure this, we calculated the average quarterly operating expense over the last year for small cap companies (with market caps just above $100M). We then compared this number to the cash holdings of the firms.

All companies listed below have more than 4x the cash for their average quarterly operating expense, translating into coverage of more than four quarters of average quarterly operating expenses without the need for additional revenue.

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Do their cash holdings make these names trustworthy investments? Use this list as a starting-off point for your own analysis into small cap investments.

List sorted by cash/avg. quarterly operating expense.

  1. Gold Reserve Inc. (GRZ): Gold Industry. Market cap of $103.44M. Current cash holdings at $60.45M vs. average quarterly operating expenses over the last four quarters at $3.99M. Cash/Avg. Quarterly Operating Expense at 15.16, i.e. the company can pay 15.16 quarters worth of average quarterly operating expenses without needing to generate revenue. The stock has gained 55.36% over the last year.

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  1. Transcept Pharmaceuticals, Inc. (TSPT): Biotechnology Industry. Market cap of $119.75M. Current cash holdings at $67.97M vs. average quarterly operating expenses over the last four quarters at $5.43M. Cash/Avg. Quarterly Operating Expense at 12.52, i.e. the company can pay 12.52 quarters worth of average quarterly operating expenses without needing to generate revenue. The stock has had a good month, gaining 11.13%.

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  1. Myrexis, Inc. (OTCPK:MYRX): Drug manufacturing Industry. Market cap of $106.45M. Current cash holdings at $114.27M vs. average quarterly operating expenses over the last four quarters at $10.37M. Cash/Avg. Quarterly Operating Expense at 11.02, i.e. the company can pay 11.02 quarters worth of average quarterly operating expenses without needing to generate revenue. The stock has had a good month, gaining 10.64%.

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  1. BSD Medical Corp. (NASDAQ:BSDM): Medical Appliances & Equipment Industry. Market cap of $114.86M. Current cash holdings at $19.61M vs. average quarterly operating expenses over the last four quarters at $2.04M. Cash/Avg. Quarterly Operating Expense at 9.64, i.e. the company can pay 9.64 quarters worth of average quarterly operating expenses without needing to generate revenue. The stock is a short squeeze candidate, with a short float at 14.02% (equivalent to 8.45 days of average volume). The stock has gained 117.88% over the last year.

  2. UQM Technologies Inc. (NYSEMKT:UQM): Industrial Electrical Equipment Industry. Market cap of $101.83M. Current cash holdings at $24.76M vs. average quarterly operating expenses over the last four quarters at $3.04M. Cash/Avg. Quarterly Operating Expense at 8.15, i.e. the company can pay 8.15 quarters worth of average quarterly operating expenses without needing to generate revenue. Short float is at 10.53% (equivalent to 13.38 days of average volume), indicating the stock is a short squeeze candidate. The stock has lost 32.61% over the last year.

  3. Cumberland Pharmaceuticals, Inc. (NASDAQ:CPIX): Drug Manufacturer. Market cap of $107.05M. Current cash holdings at $65.89M vs. average quarterly operating expenses over the last four quarters at $9.85M. Cash/Avg. Quarterly Operating Expense at 6.69, i.e. the company can pay 6.69 quarters worth of average quarterly operating expenses without needing to generate revenue. The stock is a short squeeze candidate, with a short float at 12.32% (equivalent to 21.1 days of average volume). The stock has lost 51.66% over the last year.

  4. Trius Therapeutics, Inc. (TSRX): Medical Laboratories & Research Industry. Market cap of $123.27M. Current cash holdings at $45.34M vs. average quarterly operating expenses over the last four quarters at $7.18M. Cash/Avg. Quarterly Operating Expense at 6.32, i.e. the company can pay 6.32 quarters worth of average quarterly operating expenses without needing to generate revenue.

  5. Research Frontiers Inc. (NASDAQ:REFR): Business Services Industry. Market cap of $112.79M. Current cash holdings at $6.96M vs. average quarterly operating expenses over the last four quarters at $1.17M. Cash/Avg. Quarterly Operating Expense at 5.97, i.e. the company can pay 5.97 quarters worth of average quarterly operating expenses without needing to generate revenue. Short float is at 10.17% (equivalent to 14.76 days of average volume), indicating the stock is a short squeeze candidate.

  6. Rexahn Pharmaceuticals, Inc. (NYSEMKT:RNN): Biotechnology Industry. Market cap of $113.34M. Current cash holdings at $14.79M vs. average quarterly operating expenses over the last four quarters at $2.60M. Cash/Avg. Quarterly Operating Expense at 5.70, i.e. the company can pay 5.70 quarters worth of average quarterly operating expenses without needing to generate revenue.

  7. Cutera, Inc. (NASDAQ:CUTR): Medical Appliances & Equipment Industry. Market cap of $116.33M. Current cash holdings at $90.00M vs. average quarterly operating expenses over the last four quarters at $16.10M. Cash/Avg. Quarterly Operating Expense at 5.59, i.e. the company can pay 5.59 quarters worth of average quarterly operating expenses without needing to generate revenue. The stock has lost 25.74% over the last year.

  8. Cytokinetics Inc. (NASDAQ:CYTK): Biotechnology Industry. Market cap of $100.38M. Current cash holdings at $71.64M vs. average quarterly operating expenses over the last four quarters at $13.05M. Cash/Avg. Quarterly Operating Expense at 5.49, i.e. the company can pay 5.49 quarters worth of average quarterly operating expenses without needing to generate revenue. The stock has had a good month, gaining 20%.

  9. Magellan Petroleum Corporation (NASDAQ:MPET): Independent Oil & Gas Industry. Market cap of $123.81M. Current cash holdings at $32.14M vs. average quarterly operating expenses over the last four quarters at $6.12M. Cash/Avg. Quarterly Operating Expense at 5.26, i.e. the company can pay 5.26 quarters worth of average quarterly operating expenses without needing to generate revenue. It's been a rough couple of days for the stock, losing 5.98% over the last week.

  10. Omeros Corporation (NASDAQ:OMER): Drug Manufacturer. Market cap of $112.25M. Current cash holdings at $41.99M vs. average quarterly operating expenses over the last four quarters at $8.13M. Cash/Avg. Quarterly Operating Expense at 5.17, i.e. the company can pay 5.17 quarters worth of average quarterly operating expenses without needing to generate revenue.

  11. Utah Medical Products Inc. (NASDAQ:UTMD): Medical Instruments & Supplies Industry. Market cap of $105.34M. Current cash holdings at $18.54M vs. average quarterly operating expenses over the last four quarters at $4.05M. Cash/Avg. Quarterly Operating Expense at 4.58, i.e. the company can pay 4.58 quarters worth of average quarterly operating expenses without needing to generate revenue. The stock has gained 10.65% over the last year.

  12. Raptor Pharmaceuticals Corp. (NASDAQ:RPTP): Diagnostic Substances Industry. Market cap of $109.01M. Current cash holdings at $15.31M vs. average quarterly operating expenses over the last four quarters at $3.63M. Cash/Avg. Quarterly Operating Expense at 4.22, i.e. the company can pay 4.22 quarters worth of average quarterly operating expenses without needing to generate revenue. The stock has gained 116.13% over the last year.

  13. SRS Labs Inc. (NASDAQ:SRSL): Semiconductor Equipment & Materials Industry. Market cap of $121.41M. Current cash holdings at $29.73M vs. average quarterly operating expenses over the last four quarters at $7.10M. Cash/Avg. Quarterly Operating Expense at 4.19, i.e. the company can pay 4.19 quarters worth of average quarterly operating expenses without needing to generate revenue. The stock is a short squeeze candidate, with a short float at 7.18% (equivalent to 13.15 days of average volume).

*Cash and operating expense data sourced from Google Finance, all other data sourced from Finviz.

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

Source: 16 Small Caps With Cash to Cover 1+ Years of Operating Expenses