Company:
Genus International Corporation
( OTC BB: GUSI )
Corporate Offices:
1237 South Val Vista Drive
Mesa, Arizona 85204
Phone: (480) 807-1235
Click here for Investor Inquiries
About thirty years ago, Intel Corporation introduced the world's first commercial microprocessor. The microprocessor's invention revolutionized computing and changed forever the way people work, learn, and most importantly - communicate.
Since that remarkable event took place, people around the world have acknowledged the power of the Personal Computer and its central role as a consumer and business communications device. More recently, the advent and virtual acceptance of the World Wide Web has driven the growth of PC use. This user friendly, graphical Internet interface continues to spur the growth of PC communications and business use in many aspects of our everyday lives.
Today's high growth product areas increasingly rely on the power of connected PCs. The resulting centralized delivery of information and the associated modern technology has made business much easier to manage. This in turn has resulted in declining costs associated with business computing along with the technologies that increase productivity and drastically accelerate communications en route to establishing what is commonly dubbed the New Economy.
The continuing trend of "shrinking" these digital microprocessor based memory devices to store all of this free flowing information in small devices has opened the doors for the development of many exciting digital consumer appliances. Digital cameras using memory cards in lieu of film can be plugged into the PC for editing, storage and transmission directly on the Web. Portable PCs, Portable Digital Assistants (PDAs) and Wireless communications devices have created a new demand for the portability of data.
These devices make data available at the "point of use" whenever and wherever the need occurs. It is this demand for secure data at the point of use that opens the door of opportunity for a "New Revolution" in the now global digital world. This week's Featured Company, Genus International Corporation (OTC BB: GUSI) is developing proprietary technology to become the leader in this "New Revolution" of portable data.
Background
Since its inception in 1986, Genus International Corporation has been involved in the development of the Optical Memory Card and its application to data management in the Health Care industry. Before we delve into the GUSI story, a brief background of how they arrived at this juncture is in order.
Drexler Technology Corporation (NASDAQ: DRXR) first introduced optical card technology in the mid-1980's as a methodology for storing and retrieving digital data in a compact and easily portable device. Because their device, called the LaserCard, had a very large storage capacity, it seemed readily adaptable for use in the development of a portable medical record.
Genus International acquired one of the first worldwide licenses for use of the technology in this application. In a joint venture relationship with Drexler and CSK of Japan, the Company developed several initial applications including an insurance verification program as well as a patient registration program for the hospitals in the Republic Health Hospital system. While it proved useful, reliable and secure, the introduction of the technology was hampered by the lack of a broad based infrastructure to support the read-write technology of the card as a stand-alone solution to the storage and retrieval of vital medical data.
Since that time, Optical Memory Card technology has gained increasing acceptance in a variety of applications and has been established as a robust and proven method for the secure storage of digital information. As an example, the US Immigration and Naturalization Service is utilizing the technology for the Green Card program.
The industry has established both national and international standards and technical specifications, which has led to dramatic improvements in the performance and availability of both hardware and software. Olympus and Dai Nippon Printing in Japan have both secured a manufacturing license to produce both the Optical Card and the Reader/Writer, thus ensuring more than a single source for the components of the technology.
Recent developments in the Internet have created the opportunity to access the databases necessary for use of the Optical Card as the secure key to the immediate availability of vital data at the "point of use." These developments now make it possible for every individual to have access to personal medical and other records in real time.
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The Company:
Currently, GUSI is developing and deploying a number of applications that combine cutting edge technologies of the Internet with consumer-carried personal data cards. This combination between secure credit card sized data storage devices and the rapid growth and development of web-based technology allows for a wide variety of applications targeted at consumers. Some of these applications include a truly portable medical record, secure consumer identification, clinical diagnosis and treatment support, as well as process instructions for certain business and manufacturing companies.
Genus International is committed to developing a continuous flow of products and services to a global consumer and business marketplace by designing its products to provide digital solutions for everyday problems. This will help end users of information take advantage of everything the digital revolution has to offer and simplify their lives.
The Company's products are more than just tools. They will enable consumers to have a step-by-step remedy for everyday problems at their fingertips. Genus International is currently focused on the roll out of two initial products that meet this need in today's digital revolution.
GUSI's first product offering will be a "Portable Personal Data Card" (PDC). This is an electronic card that can be used by individual consumers to access and conduct transactions within the nation's healthcare and fitness industries. This product will utilize a proprietary Smart Memory Card Technology called MyCard technology.
To achieve the efficient roll out of this product, the Company will support a marketplace that will leverage the power of the Internet through partnering, networking, or enhancements to existing facilities and organizations. In this process, the Company expects that its web site will become the leading portal for access to the healthcare and fitness industries. The Company believes that its Portable Personal Data Card (PDC) together with its MyCard technology will provide a robust and stable platform for the development and publication of multiple applications.
The first application to be published by the Company for the PDC will be its flagship product, Health Advantage. This proprietary client server application features rich content and a functional platform to provide an easy to use and cost effective personal data record platform.
The Company has participated in the development and acquired the rights to purchase the Health Advantage program that when coupled with the Optical Memory Card, places the individual at the center of the information process. Health Advantage consists of an intelligent relational database composed of interactive modules. It is designed for the compilation, storage and management of the information necessary to optimize the hierarchy of decision-making and the organization of services that must occur in the complex systems that make up the health care industry and its delivery network. The individual modules are adaptable to other applications as well; making it a multi-purpose platform for enabling the development of a variety of products that will rolled out by Genus International Corporation.
Currently, Health Advantage is an application at the working prototype stage of development. When completed, it will be capable of storing the full spectrum of patient information, including diagnostic quality MRI, CT, ultrasound and X-ray images, lab testing, pharmacy records, EKG, EEG, emergency, ICU, and other current and historical data.
Health Advantage and its client-server software are capable of performing a full range of audit-trail and other practice management functions. The Company will undertake patent protection for its proprietary features of data protection and recovery as well as its intelligent features.
The second of the Company's products is Electronic Work Instructions (EWI). EWI is a client server application designed primarily for any company that manufactures or assembles products. It can also be implemented in any environment that would benefit from ordering and delivering process information of any kind. The product allows "power users" to author multimedia presentations of assembly processes and delivery of those presentations to the user desktop or via Intranet, Extranet, or the World Wide Web.
This core product is complete and the design is proven to be stable. Current implementation of prototypes in both large and small companies is a categorical success with an overwhelmingly positive support track record of zero down time in 14 months. The next step for the Company is to market the product to its targeted audience and to begin development of the public web site that will open the use of EWI to a very broad user base.
In addition to its own markets, EWI clearly meets an overlapping requirement of Health Advantage. Health Advantage needs to assemble vital medical data from a wide variety of health provider and hospital information systems. EWI can be adapted to capture this information and create multimedia "process maps" for its delivery to the point of use provider thus providing a major enhancement to the Health Advantage product. This data can be delivered using EWI's native viewing tool or be published in browser independent (HTML) format.
Each user of one of the products or services Genus deploys utilizing this technology will have an Optical Memory Card or a Smart Optical Card issued to them by an issuing authority or provider. The card will be manufactured with factory encoded Micro-imaging and Serialization which cannot be added or duplicated later. Each card will have a serial number laser engraved to the bonded inner core of the card.
During the card issuing process, personal identity information together with critical personal information can be encoded onto the optical media using secure reader/writers. This secure, permanent digital file cannot be counterfeited, and ensures that each card will become the property of a single user.
Each MyCard will provide the user with up to 4.1M bytes of secure, optical data capacity that is completely updateable, making it usable for data storage for multiple card applications. Each sector can have varying levels of data security as well. The time it takes to complete the biometric verification of ownership and to record the access date and time is approximately six seconds.
MyCard utilizes industry standard PC hardware and is compatible with multiple software platforms, making it affordable, scalable and easy to use. Its high security and unique data capacity features make it distinct from other card-based technologies such as "chip" and magnetic strip cards which serve primarily as "access and egress" keys for large online databases of information.
In contrast, MyCard is capable of putting actual information on the card itself and putting this information in the hands of the user so that it is available at the point of use anytime, any place. This feature is invaluable because as the Global Village continues to take shape, people everywhere will need access to information that is now stored in large decentralized databanks and thus, not readily available.
For the past ten to twelve years, smart cards have enjoyed considerable success in the European market. This led the Company to develop a partnership with CDS Theoreme, of Switzerland. CDS Theoreme specializes in the development of innovative products in the field of information technology. The purpose of the partnership will be to introduce Health Advantage in the European marketplace.
The Company is negotiating with a Major European travel club to provide its MyCard technology for use by its members. The Company believes both of these relationships will provide a major market entry opportunity for its products in Europe.
The U.S. marketplace has not been as friendly to the introduction of smart card use. For the most part, this has been due to poor pilot programs and too many undeliverable promises and unrealistic predictions of success. However, one of the emerging U.S.-specific opportunities for deployment of this technology exists now in the health care industry in the form of the Health Insurance Portability and Accountability Act (HIPAA) of 1996 as it takes effect.
The 1996 HIPAA reform calls for electronic claims and payment systems for health plans. It also calls for a very high level of security to protect patient information.
The confidentiality requirements are so stringent that the authentication and logging requirements almost insist on the application specifications similar to the Company's MyCard technology.
Additional opportunities for the Company's applications are emerging with the Electronic Signatures in Global and National Commerce Act signed by President Clinton in June 2000. The E-Sign Act makes digital signatures as legal as handwritten signatures and makes online commerce fully enforceable. This opens a need for major infrastructure developments that the Company feels its products can fill. Genus International is planning a major marketing campaign to capture a significant percentage of both the European and domestic market for its products.
GUSI is currently raising additional capital to fund these dynamic product initiatives. If everything goes according to plan, the Company anticipates operations should be capable enough to reach breakeven and achieve profitability within the next twelve to eighteen months.
In addition to its plan for the development and deployment of its own products and services, the Company intends to pursue opportunities for growth through the strategic merger and or acquisition of other companies. This industry is highly fragmented and synergies may be achieved through this strategy that will accelerate growth of market position and strengthen the Company's operations.
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Management:
As a public company, Genus International Corporation is committed to building value for its stockholders. In reaching this objective, management is committed to maintaining vigilant, flexible and highly strategic approaches to market opportunities that will lead to maximum long-term growth.
The Company has assembled a solid management team whose past successes in marketing, management, finance and product development should lead the Company to great success through mass marketing of this cutting edge technology.
Dr. LeRoy A. Pesch, Chairman of the Board and Director, Genus International Corporation. Dr. Pesch also serves as President and CEO of its wholly owned subsidiary, Genus Technology Corporation, the Company's principal operating division.
Prior to founding Genus International Corp., Dr. Pesch founded Health Resources Corporation of America in 1983, a public company that owned and operated hospitals and clinics where he served as its Chairman and CEO until its merger with Republic Health Corporation in 1985. Dr. Pesch started Genus International in 1985 while serving as Chairman of the Board of Republic Health Corporation.
After performing undergraduate work at the University of Iowa and Iowa State University, he earned his M.D. degree from Washington University in St. Louis in 1956. Following his residency and postgraduate training in Internal Medicine at Yale University, he studied Biochemistry at the National Institute of Health in Bethesda, Maryland.
Dr. Pesch's resume includes professorships at Yale, Rutgers, Stanford University, The University of Chicago and Northwestern University. He has also held administrative positions, having served as Associate Dean at Stanford, Dean of Medicine at the State University of New York at Buffalo, Director of University Hospitals in Buffalo and President & CEO of the Michael Reese Hospital and Medical Center in Chicago.
Additionally, Dr. Pesche was the Deputy Assistant Secretary for Health and Scientific Affairs in the Department of Health, Education and Welfare during the Nixon Administration and has published over fifty original articles in professional journals.
William A Young, Sr., President, Chief Executive Officer, Director joined the Company in the fall of 1999 and manages the daily operations of the Corporate Office of Genus International Corporation in Mesa, AZ where he coordinates the Company's growth and development in the health, fitness and related information technology industries.
Mr. Young is certified as an Emergency Medical Technician and has been recognized on both the local and national levels for his work in fostering groundbreaking Health and Safety Legislation. His testimony before the United States Congress has led to many new initiatives.
Michael Harrison, Executive Vice President heads the Product Design, Development and Market Introduction Group for Genus International and has been working with Genus Technology Corporation since 1997 as a design consultant responsible for completing product development, production and initial marketing for the Health Advantage product.
Prior to Genus, Mr. Harrison was co- founder, Design Director and Member of C1 Design Group LLC of Ketchum, Idaho where he designed, engineered and licensed proprietary bicycle suspension systems for Cannondale, Scott and Kestrel.
From 1985 to 1990, he was an Independent Design Consultant in Newport Beach, CA where he designed and developed medical equipment for high profile clients including Allergan, Baxter Healthcare Corporation, Dioptics Medical Products and Puritan Bennett.
Mr. Harrison also designed and developed electronic and consumer products for Collins Audio, Eggdesign (division of Xerox), Keiser Sports Health Equipment and VLSI Applications. He received his degree in Industrial Design from The Art Center of Design in Pasadena, CA.
Timothy A. Pezzelle, Executive Vice President heads the Applications Development Group for Genus International. In 1999, he formed Kewi Systems Inc. where he developed and published Electronic Work Instructions (EWI). He came to the Company in July 2000 when Genus Technology Corporation reached an agreement with Mr. Pezzelle to acquire Kewi Systems and their initial marketing contracts.
Prior to Kewi Systems, Mr. Pezzelle worked on a contractual basis with Allied Signal Aerospace, Sunstate Equipment Company, and the Maricopa County Department of Transportation in Arizona to develop a number of applications including a manufacturing execution system known as Assembly Build Traveler.
From 1996 to 1997, Mr. Pezzelle was Senior Programmer for the PC Products Division of Computer Guidance Corporation in Phoenix, AZ. He developed, maintained, debugged and supported software applications designed for the construction industry.
After graduating from Arizona State University in 1982, he established his own company, Donor Software Systems, where he developed and fully supported Random Access, a Fundraising Management System used by non-profit organizations to handle all aspects of data management.
Sandra L. Young, Secretary of the Board, Director joined Genus in late 1999; Ms. Young served as Secretary and Director of HealthTech International since 1997. Her background also includes service as Manager for Administration and Finance for Leach Home Health Care from 1980 to 1988.
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Conclusion:
Until several weeks ago, Genus International Corporation was operating in developmental mode. On September 21, 2000, the NASD cleared the Company's common stock for quotation on the OTC Bulletin Board and on October 12th trading commenced. These developments should enable the Company to access the necessary capital resources required to commence full-scale operations and begin positioning its first product in the marketplace.
With the reliable performance and availability of hardware and software by companies such as Olympus and Dai Nippon Printing in Japan, Genus has established a solid foundation for its business model at an early stage in the industry's developmental cycle. In addition, recent U.S. legislation has essentially brought down the barriers to conducting all legal transactions digitally in the U.S., paving the way for the establishment of appropriate infrastructure.
Optical Memory Card technology has gained wide spread acceptance in Europe in recent years serving as an example of the viability of the technology around the globe. The Green Card program implemented by the U.S. Immigration and Naturalization Service that utilizes the Optical Memory Card technology is proof of the acceptance and reliability of such a system in the United States when implemented within the appropriate industry or program. The U.S. Health Care industry certainly presents significant opportunity for GUSI.
The Genus International business model should come to fruition based on the strength of their management team. Management's ability to lead and execute should provide many opportunities for success as this exciting young industry continues to develop. The Company's technology could garner strong acquisition interest by a larger corporate suitor interested in bolstering its product potential in the health care industry.
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Corporate Capitalization:
Common Shares Authorized 50 million
Common Shares Outstanding: Approximately 2,000,000
Recent Price $0.81
For the most current SEC filings Click Here.
For Closing Share Price, Day's Range and 52 Week Hi/Lo Click Here.
Contact Information:
Kyle Maguire
Next Step Capital, LLC
Phone: (949) 635-9595
Fax: (949) 635-9596
Email: km@nextstepcapital.com
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Corporate Name: Genus International Corporation, Inc.
Symbol & Exchange: (OTCBB: GUSI)
Coverage Initiated:12/01/00
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