Yes you raise some questions that are worth considering. And...

Yes you raise some questions that are worth considering.

And here's some more:

• Has this company invented a compelling product or service that taps a unique niche in the market place?
• Does the team have a proven track record?
• Does the company have a better way of doing things?
• Will social security/insurers cover the product?
• Will the company's offering be in demand in the future, no matter what the economic cycle?
• Is the market global?
• Will demand grow?
• Can supply be scaled rapidly to meet demand?
• How quickly could receipts grow?

Here's some more thoughts courtesy of investopedia:

With a micro-cap company, how you spend your research time gets turned upside-down. Unlike with large cap companies, for which historical financial performance is a window to the future, non-financial information holds much more value when looking at a micro-cap stock. You should spend 80% of your effort understanding the company's business strategy and business model, ensuring the management team is the right one to pull it off, making certain the industry in which the company operates is sizable and growing, and judging how or whether it is better than its competitors. You should spend only 20% of your time looking at current financial results.

Not Making Money?What you may discover is that many micro-cap companies aren't making money yet. Earnings are probably negative, so the traditional stock valuation ratios won't make sense. You may also notice a sizable deficit in shareholders' equity, where a positive number ought to be. Don't be too alarmed! These may be signs that the company is in its early stages of fast-paced growth.