Updated 24 Sep 2007:
Law Enforcement Associates Corp.
100 Hunter Place
Youngsville, NC 27596
Web Site: http://www.leacorp.com
Law Enforcement Associates Corporation, through its subsidiary, Law Enforcement Associates, Inc., engages in the manufacture and distribution of surveillance and intelligence gathering products, and vehicle inspection equipment. Its products comprise a line of audio surveillance equipment, including radio frequency transmitters, receivers, and repeaters for use in surveillance and intelligence gathering operations by law enforcement agencies. The company also offers video transmission systems, video surveillance systems, disguised antennas, digital pinhole surveillance system, digital noise filter, and disguised video/audio recording system.
In addition, it produces the Bloodhound Global Positioning tracking system, a global positioning system receiver combined with a cellular telephone that enables undercover surveillance agents to monitor the movements of a vehicle; and the Under Vehicle Inspection System, which is used to view the underside of vehicles entering and exiting secure areas or facilities for explosive devices and other contraband. Law Enforcement Associates markets and distributes its products directly through sales representatives and its Web site to federal, state, and local law enforcement agencies; local police departments; state corrections facilities; the United States and allied militaries; highway patrols; sheriffs' departments; and select private security personnel in the United States and internationally.
Recent share activity (no insider activity):
Raymond James became a 51% majority holder when they bought out Serchie Labs and James Carrington (filed 20 Sep 07):
10K filed 2 Apr 07:
company feels that the new employee based sales force is more focused and will be key in the planned offering of additional products that LEA will manufacture and carry in 2007.
LEA has several law enforcement specific products that will be introduced in the second quarter of 2007.
We are still in the process of developing a less lethal weapon (Stun Pistol) and have completed proto types of it. We are currently negotiating with several companies to license the manufacture and sale of that weapon. These negotiations are in the very preliminary stages and there is no assurance that we will be successful in these negotiations. While we have the proto type ready for production, we are proceeding with caution do to the voluminous litigation that has arisen with other companies that manufacture similar weapons.
During fiscal 2006, we paid down and eliminated our long term debt. As such, we can now have additional funds available for our capital needs and operations. We believe we will be able to finance our operations and any capital expenditures we incur in 2007 with our cash on hand and cash flow.
The Company believes that it will experience revenue growth in 2007. We will continue to market our current diverse product line and are also in the process of developing additional products which we intend to introduce in the market place in 2007. A major concern for the Company is which direction we will take with respect to our EDW. Our prototype is ready and we can commence manufacturing and marketing the EDW in the second quarter of 2007. We have been restrained from taking this action due to the overwhelming volume of litigation over the use of EDW’s which has sprung up over the last two years. As a result of this litigation, we are studying other alternatives on how best to proceed with this. In addition to direct manufacturing and selling our EDW, we are exploring the possibility of licensing the product and also the possibility of selling our patents. As of this date, no decision has been made on which direction the Company will take with respect to its EDW.
In 2006, we entered entered into a licensing agreement with Smith & Wesson which trades on NASDAQ under the symbol SWHC. To date, we believe the program with S&W has been a success and we are looking to expand that relationship in 2007.
We are in the continuing process of developing a EDW weapon, and as a result, if we sell the EDW directly,we anticipate that we will come into direct competition with Taser International, Inc. ("Taser"). Taser is the leading manufacturer and supplier to law enforcement agencies of less lethal, electrical discharge weapons. While Taser is the leader in the industry and has more capital resources than we presently have, we believe that our new weapon will be able to compete in the market with Taser as we believe our weapon is better designed and has better features. There is no assurance, however, that we will be successful in bringing the EDW weapon to market or that if we do, that we will be able to successfully compete with Taser. Due to the large number of law suits which have been filed with respect to the use of EDW’s, the Company is exploring licensing its EDW and selling its patents so as to limit any future exposure it may have with respect to manufacturing and sell its EDW.
Law Enforcement Associates Unveils Graffiti Cam at ASIS International 2007
Monday September 24, 7:00 am ET
Schenkein Adds Law Enforcement Associates as Client
Wednesday September 19, 8:46 am ET
Denver Agency to Work With Surveillance Equipment Provider on National Product Launch
Law Enforcement Associates' Under-Vehicle Inspection Systems Gaining Traction in Domestic Markets
Tuesday September 18, 8:00 am ET
Recent Orders Include First Installation at Major U.S. Airport
Law Enforcement Associates Reports Strong Order Volume From Louisiana Agencies Impacted by Katrina
Tuesday September 11, 7:00 am ET
Links of management:
Paul Feldman has served as our President and Treasurer since August 2001
Mr. Carrington is the President, Chief Executive Officer, director and 69.1% shareholder of Sirchie Finger Print Laboratories, Inc., which owns approximately 41.8% of our company. Senator Carrington has served as a member of the North Carolina State Senate from 1995 to 2005.
Anthony Rand has served as a director of our company since May 2003. Mr. Rand is the Senate majority leader for the North Carolina Senate since 1995.
General James J. Lindsay has served as a director of the Company since August 2004. General Lindsay retired from the Armed Services on July 1, 1990.
Martin Perry has served as a director of our company since May 2003. Mr. Perry graduated from Brigham Young University 1985 with a degree in Communications
Joseph A. Jordan has served as director since December 2004.
Noted from the 10-Q filed on 20 Aug 07
May be looking for an acquisition?
On May 3, 2007, the Company entered into an agreement with an entity to act as the placement agent and financial advisor to the Company. This entity will identify prospective purchasers of debt and/or equity securities to be issued by the Company and prospective companies to be purchased or acquired by the Company either by debt and/or equity securities or by assets acquired by the Company.
A possible lawsuit may be dismissed this month?
In July 2007, Barbara Wortley made a demand on us to repurchase her common stock which was issued to her pursuant to the Asset Purchase Agreement between her and the Company dated June 3, 2004. The Company, however, believes that her right to make this demand has expired. In addition, our attorneys received a copy of a lawsuit filed in Broward County, Florida Circuit Court which has been filed by the Wortleys and their related companies seeking damages against us for various services they allege to have performed in reference to the sale of assets to the Company by Mrs. Wortley and Audio Intelligence Devices, Inc. As of the date of this filing, the Company has not been served with this complaint. If it is served upon us, the Company intends to defend the suit vigorously as it believes it is without merit. In any event, Mr. Joseph Wortley and our president, Mr. Feldman, intend to meet in September to discuss and reach a resolution of these issues.
The stun gun back on the table?
We are continuing our stun gun program. We have completed proto types and are still exploring whether to launch production on our own or license our stun gun to a third party for manufacturing. The Company intends to obtain a valuation of its less lethal weapons patents.