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$PLBI - Proton Laboratories late day 62.5% surge to 0.0013 on the filing of its December 31, 2012 unaudited dislosure statement. Closed today at 0.0013 X 0.002 on volume of 1.862 Million shares. Float is 174.5 Million shares. From page 29 of the disclosure statement:
Plan of Operation
The Company: Manufacturing, marketing and distribution of “functional water”
which is processed through an electrolytic ion separation process and has a wide array
of functional properties due to its unique characteristics. The Company’s process
restructures tap water into water with both alkaline and acidic concentrations. These
restructured waters have applications in a number of industries, agriculture, food
processing, pharmacologic, heavy industry and the formulation of beverages, to name a
few.
The Company has elected to begin its operations in the beverage formulation
platform. Management believes it is here the Company has the best chance for growth
and expansion in the near future. The reason management has selected this area
stems from the unique functional properties of its water. Water, with smaller clusters of
molecules, has a lower surface tension, which is believed to improve hydration,
permeating and solubility properties. The functionality of alkaline enhanced water
makes an excellent drinking water because of its improved hydration. This functionality
provides the Company an excellent drinking water product whether it is flavored or
unflavored, sparkling or non-sparkling and its increased solubility makes the water a
good platform for the introduction of enhancements such as vitamins and fiber.
http://www.otcmarkets.com/otciq/ajax/showFinancialReportById.pdf?id=104210
$PLBI - Proton Laboratories late day 62.5% surge to 0.0013 on the filing of its December 31, 2012 unaudited dislosure statement. Closed today at 0.0013 X 0.002 on volume of 1.862 Million shares. Float is 174.5 Million shares. From page 29 of the disclosure statement:
Plan of Operation
The Company: Manufacturing, marketing and distribution of “functional water”
which is processed through an electrolytic ion separation process and has a wide array
of functional properties due to its unique characteristics. The Company’s process
restructures tap water into water with both alkaline and acidic concentrations. These
restructured waters have applications in a number of industries, agriculture, food
processing, pharmacologic, heavy industry and the formulation of beverages, to name a
few.
The Company has elected to begin its operations in the beverage formulation
platform. Management believes it is here the Company has the best chance for growth
and expansion in the near future. The reason management has selected this area
stems from the unique functional properties of its water. Water, with smaller clusters of
molecules, has a lower surface tension, which is believed to improve hydration,
permeating and solubility properties. The functionality of alkaline enhanced water
makes an excellent drinking water because of its improved hydration. This functionality
provides the Company an excellent drinking water product whether it is flavored or
unflavored, sparkling or non-sparkling and its increased solubility makes the water a
good platform for the introduction of enhancements such as vitamins and fiber.
http://www.otcmarkets.com/otciq/ajax/showFinancialReportById.pdf?id=104210
Alrighty now! (from page 29):
Plan of Operation
The Company: Manufacturing, marketing and distribution of “functional water”
which is processed through an electrolytic ion separation process and has a wide array
of functional properties due to its unique characteristics. The Company’s process
restructures tap water into water with both alkaline and acidic concentrations. These
restructured waters have applications in a number of industries, agriculture, food
processing, pharmacologic, heavy industry and the formulation of beverages, to name a
few.
The Company has elected to begin its operations in the beverage formulation
platform. Management believes it is here the Company has the best chance for growth
and expansion in the near future. The reason management has selected this area
stems from the unique functional properties of its water. Water, with smaller clusters of
molecules, has a lower surface tension, which is believed to improve hydration,
permeating and solubility properties. The functionality of alkaline enhanced water
makes an excellent drinking water because of its improved hydration. This functionality
provides the Company an excellent drinking water product whether it is flavored or
unflavored, sparkling or non-sparkling and its increased solubility makes the water a
good platform for the introduction of enhancements such as vitamins and fiber.
I, too, was very impressed with the investor call today. My takeaway is that they are demo'ing the benchtop product to a number of big air frieght forwarders and the orders will come for the new industry standard in ETD. I am glad they have changed their PR mentality from "spill their guts about everything" to only items of significance. The non-PR for the status of the passenger checkpoint testing with the TSL/TSA is a good thing. In that way timelines and expectations aren't built in like what happened with the air cargo security approval since the TSL controls the process.
I agree with you on the checkpoint screening development with the TSA. That is a material event that should have been PR'd as it happened.
$IMSC - Implant Sciences Reports Third Quarter Fiscal 2013 Financial Results
WILMINGTON, MA--(Marketwired - May 10, 2013) - Implant Sciences Corporation (OTCQB: IMSC), a high technology supplier of systems and sensors for the homeland security market and related industries, today announced financial results for the fiscal quarter and nine months ended March 31, 2013.
Revenues for the third quarter ended March 31, 2013 increased 84%, to $1.3 million, from $0.7 million for the comparable prior year period. Our net loss for the quarter ended March 31, 2013 was $5.3 million as compared with a net loss of $3.9 million for the comparable prior year period, an increase of $1.4 million. The increase in the net loss is primarily due to $1.5 million of stock-based compensation recorded on option grants to our directors and officers in September 2012, as well as to increased operating expenses and increased interest expense.
Revenues for the nine months ended March 31, 2013 increased 237%, to $9.6 million, from $2.9 million for the comparable prior year period. Our net loss for the nine months ended March 31, 2013 was $21.8 million as compared with a net loss of $10.3 million for the comparable prior year period, an increase of $11.5 million. The increase in the net loss is primarily due to $12.3 million of stock-based compensation recorded on the September 2012 officer and director option grants, as well as to increased operating expenses and increased interest expense.
Earnings before interest, taxes, depreciation, stock-based compensation, warrants issued to non-employees and common stock issued to consultants ("Adjusted EBITDA"), which is reconciled to net income in this press release, calculated in accordance with U.S. generally accepted accounting principles, were a loss of $2,310,000 in the quarter ended March 31, 2013, compared to a loss of $2,081,000 in the comparable prior year period and a loss of $5,020,000 for the nine months ended March 31, 2013, compared to a loss of $5,507,000 in the comparable prior year period.
Glenn D. Bolduc, President and CEO of Implant Sciences, commented, "During our recently concluded third quarter, Implant Sciences achieved a number of important strategic goals that we believe position the Company for consistent and sustainable growth. We have taken important steps to broaden the markets we serve, increase our revenue opportunities, and improve our financial stability." The following are some of our recent developments:
Our QS-B220 Benchtop Explosives and Narcotics Trace Detector which successfully met the requirements for acceptance onto the Transportation Security Administration ("TSA") Air Cargo Screening Technology List in January, has been accepted into the final independent validation testing by the Transportation Security Laboratory for TSA qualification for checkpoint screening. We extended the maturity of our credit agreements with DMRJ Group LLC through March 31, 2014, removed the Company's obligation to repurchase any shares of Series H Preferred Stock into which some of our debt is convertible and negotiated the conversion of $12 million of the line of credit to a convertible term note, increasing availability under the $23 million line of credit. We continued to increase our geographic distribution with sales to Japan, Africa, Asia, the Middle East and to a U.S. Government agency. Increased diversification of markets served in the recently ended quarter now include nuclear plants, a national postal service, corporate offices, critical infrastructure and VIP protection. We received follow-on orders from existing customers for our QS-H150 handheld detector, demonstrating the reliability, operational and cost advantages of this device and our technology, and we received orders for our QS-B220 for use in screening parcels for drugs. We executed a settlement agreement and mutual release with Fulong Electronics Integrated Technique Ltd., which resulted in a one-time $295,000 benefit recognized in the third quarter. We enhanced our IP portfolio with the receipt of our 16th patent from the U.S. Patent and Trademark Office, titled, "Trace Particle Collection System." We continued to attract industry experienced talent and enhanced our technical team with the recruitment of Dr. Quan Shi as Senior Analytical Chemist. Dr. Shi brings in-depth experience in explosives, drugs and other trace chemical detection, gas chromatography, differential ion mobility spectrometry and mass spectrometry. He was most recently Lead R&D Scientist at ThermoFisher Scientific, held senior technical roles at Sionex Corporation and Aerodyne Research and has a proven record of commercializing technology.
Mr. Bolduc concluded, "Our continued progress with the TSA, in achieving acceptance onto the air cargo screening technology list and acceptance into the final independent validation testing for checkpoint screening, are very significant achievements which we believe establish our credibility as the next generation explosives technology in the competitive global trace explosives industry. In addition to increasing our potential business opportunities, these approvals advance our worldwide approval efforts. The influx of industry talent that we have recruited over the past twelve months provides a solid foundation from which to build upon as we work to innovate new products and technology and grow our market share and revenues. We have much work ahead of ourselves, but remain excited about our future prospects."
Details for the quarter ended March 31, 2013 follow below.
Quarter Ended March 31, 2013 vs. March 31, 2012
Revenues for the quarter ended March 31, 2013 were $1,262,000 as compared with $686,000 for the comparable prior year period, an increase of $576,000, or 84.0%. The increase in revenue is due primarily to the shipment of an order to an agency of the U.S. government, resulting in a 104% increase in the number of QS-H150 handheld units sold and increased sales of parts and supplies during the quarter ended March 31, 2013, as compared to the comparable prior year period.
Gross margin for the quarter ended March 31, 2013 was $303,000 or 24.0% of revenues as compared with gross margin of $182,000 or 26.5% of revenues for the comparable prior year period. The decrease in gross margin is primarily the result of increased manufacturing overhead spending due to stock-based compensation recorded on the September 2012 officer and director option grants, and increased manufacturing personnel costs, as compared to the comparable prior year period.
Research and development expense for the quarter ended March 31, 2013 was $1,116,000 as compared with $799,000 for the comparable prior year period, an increase of $317,000 or 39.7%. The increase in research and development expense is due primarily to increased payroll and related benefit costs, stock-based compensation recorded on the September 2012 officer and director option grants, partially offset by decreased contracted engineering.
Selling, general and administrative expenses for the quarter ended March 31, 2013 were $3,191,000 as compared with $2,258,000 for the comparable prior year period, an increase of $933,000, or 41.3%. The increase in selling, general and administrative expenses is due primarily to a $1,244,000 increase in stock-based compensation recorded on the September 2012 officer and director option grants and warrants to purchase shares of our common stock, increased payroll, related benefit costs and travel expense resulting from the addition of sales personnel, legal costs incurred to increase our authorized shares, partially offset by lower consulting fees due to the issuance of our common stock to certain consultants in the comparable prior year period and the $295,000 benefit recognized as a result of the litigation settlement with Fulong.
For the quarter ended March 31, 2013, other expense, net was $1,335,000 as compared with other expense, net of $1,015,000, for the comparable prior year period, an increase of $320,000. The increase was primarily due to increased interest expense on higher borrowings under our credit facility with DMRJ. Interest expense increased $320,000 to $1,336,000 in the quarter ended March 31, 2013 from $1,016,000 in the comparable prior year period.
Our net loss for the quarter ended March 31, 2013 was $5,339,000 as compared with a net loss of $3,890,000 for the comparable prior year period, an increase of $1,449,000, or 37.2%. The increase in the net loss is primarily due to stock-based compensation recorded on the September 2012 officer and director option grants, increased operating expenses and increased interest expense.
Nine Months Ended March 31, 2013 vs. March 31, 2012
Revenues for the nine months ended March 31, 2013 were $9,615,000 as compared with $2,854,000 for the comparable prior year period, an increase of $6,761,000, or 236.9%. The increase in revenue is due primarily to the shipment of the India Ministry of Defence order, resulting in a 244% increase in the number of QS-H150 handheld units sold and increased sales of parts and supplies during the nine months ended March 31, 2013, as compared to the comparable prior year period and, to a lesser extent, incremental sales of our QS-B220 benchtop units, which we began shipping commercially in the third quarter of fiscal 2012, partially offset by an 6.4% decrease in average unit sell prices on sales our QS-H150 handheld units.
Gross margin for the nine months ended March 31, 2013 was $2,732,000 or 28.4% of revenues as compared with gross margin of $946,000 or 33.1% of revenues for the comparable prior year period. The decrease in gross margin is primarily the result of increased manufacturing overhead spending due to stock-based compensation recorded on the September 2012 officer and director option grants, increased manufacturing personnel costs, costs incurred to support the India Ministry of Defense order and by the 6.4% decrease in the average unit sell prices on sales of our QS-H150 handheld units in the nine months ended March 31, 2013, as compared to the comparable prior year period.
Research and development expense for the nine months ended March 31, 2013 was $3,521,000 as compared with $2,365,000 for the comparable prior year period, an increase of $1,156,000 or 48.9%. The increase in research and development expense is due primarily to stock-based compensation recorded on the September 2012 officer and director option grants and increased payroll and related benefit costs, partially offset by decreased contracted engineering.
Selling, general and administrative expenses for the nine months ended March 31, 2013 were $17,115,000 as compared with $6,053,000 for the comparable prior year period, an increase of $11,062,000, or 182.8%. The increase in selling, general and administrative expenses is due primarily to a $10,847,000 increase in stock-based compensation recorded on the September 2012 officer and director option grants and warrants to purchase shares of our common stock, increased payroll, related benefit costs and travel expense resulting from the addition of sales personnel, the imposition of liquidated damages of $298,000 under our contact with the India Ministry of Defence, due to delayed shipment, increased legal fees and costs incurred to increase our authorized shares, and increased bank fees, partially offset by lower consulting fees due to the issuance of our common stock to certain consultants in the comparable prior year period and the $295,000 benefit recognized as a result of the litigation settlement with Fulong.
For the nine months ended March 31, 2013, other expense, net was $3,906,000 as compared with other income, net of $2,780,000, for the comparable prior year period, an increase of $1,126,000. The increase was primarily due to increased interest expense on higher borrowings under our credit facility with DMRJ. Interest expense increased $1,125,000 to $3,908,000 in the nine months ended March 31, 2013 from $2,783,000 in the comparable prior year period.
Our net loss for the nine months ended March 31, 2013 was $21,810,000 as compared with a net loss of $10,252,000 for the comparable prior year period, an increase of $11,558,000, or 112.7%. The increase in the net loss is primarily due to stock-based compensation recorded on the September 2012 officer and director option grants, increased operating expenses and increased interest expense.
Company Conference Call
Management will host a webcast and conference call on Friday, May 10, 2013 at 1:00 PM Eastern time to review the Company's third quarter fiscal 2013 ended March 31, 2013 financial results. Following the Company's prepared remarks there will be a Q&A session. The call can be accessed by interested parties by dialing: 866-318-8617 within the U.S. or 617-399-5136 outside the U.S. and entering passcode 36249137. Participants are asked to call the assigned number approximately 5 minutes before the conference call begins. A replay of the conference call will be available approximately two hours after the call for one month by dialing: 888-286-8010 within the U.S. or 617-801-6888 outside the U.S. and entering passcode 54922770. The conference call will also be available live over the Internet at the investor relations section of Implant Sciences' website at www.implantsciences.com. A replay of the webcast will be available for one month after the call.
About Implant Sciences
Implant Sciences is the leader in next generation Explosives Trace Detection (ETD) technology. In January 2013, the Company became only the third ETD manufacturer, and the sole American-owned company, to receive product approval from the US Transportation Security Administration. Implant Sciences develops, manufactures and sells sophisticated sensors and systems for Security, Safety, and Defense (SS&D) markets. The Company has developed proprietary technologies used in its commercial explosives and narcotics trace detection systems, which ship to a growing number of locations domestically and internationally. Implant Sciences' QS-H150 portable explosives trace detector has received Qualified Anti-Terrorism Technology Designation and, in addition to receiving TSA approval for air cargo screening, the Company's QS-B220 has also received a Developmental Testing & Evaluation (DT&E) Designation by the U.S. Department of Homeland Security under the Support Anti-terrorism by Fostering Effective Technology Act of 2002 (the SAFETY Act). For further details on the Company and its products, please visit the Company's website at www.implantsciences.com.
Safe Harbor Statement
This press release may contain certain "forward-looking statements," as that term is defined in the Private Securities Litigation Reform Act of 1995. Such statements are based on management's current expectations and are subject to risks and uncertainties that could cause the Company's actual results to differ materially from the forward-looking statements. Such risks and uncertainties include, but are not limited to, the risks that we will be required to repay all of our indebtedness to our secured lender, DMRJ Group, by March 31, 2014; if we are unable to satisfy our obligations to DMRJ and to raise additional capital to fund operations, DMRJ may seize our assets and our business may fail; we continue to incur substantial operating losses and may never be profitable; our independent registered public accounting firm has expressed substantial doubt as to our ability to continue as a going concern; our explosives detection products and technologies (including any new products we may develop) may not be accepted by the Transportation Security Administration or by other U.S. or foreign government and law enforcement agencies or commercial consumers of security products; economic, political and other risks associated with international sales and operations could adversely affect our sales; the risk that liability claims related to our products or our handling of hazardous materials could damage our reputation and have a material adverse effect on our financial results; the risk that our business is subject to intense competition; the risks that our markets are subject to rapid technology change and that our success depends on our ability to develop and introduce new products; the risks that we may not be able to retain our management and key employees or to identify, hire and retain additional personnel as needed; the risks that we may not be able to enforce our patent and other intellectual property rights or operate without infringing on the proprietary rights of others: and other risks and uncertainties described in our filings with the Securities and Exchange Commission, including its most recent Forms 10-K, 10-Q and 8-K. Such statements are based on management's current expectations and assumptions which could differ materially from the forward-looking statements.
For further information, you are encouraged to review Implant Sciences' filings with the Securities and Exchange Commission, including its Annual Report on Form 10-K for the period ended June 30, 2012. The Company assumes no obligation to update the information contained in this press release.
Implant Sciences Corporation Condensed Consolidated Balance Sheets March 31, June 30, 2013 2012 (Unaudited) (Audited) ASSETS Current assets: Cash and cash equivalents $ - $ 84,000 Restricted cash and investments 1,295,000 1,274,000 Accounts receivable-trade, net of allowances of $3,000 and $20,000, respectively 746,000 182,000 Inventories, net 2,218,000 3,193,000 Prepaid expenses and other current assets 333,000 809,000 Total current assets 4,592,000 5,542,000 Property and equipment, net 363,000 220,000 Restricted cash and investments 312,000 312,000 Other non-current assets 126,000 162,000 Total assets $ 5,393,000 $ 6,236,000 LIABILITIES AND STOCKHOLDERS' DEFICIT Current liabilities: Senior secured convertible promissory note $ 3,184,000 $ 3,224,000 Second senior secured convertible promissory note 12,000,000 - Third senior secured convertible promissory note 12,000,000 - Senior secured promissory note 1,000,000 1,000,000 Line of credit 9,586,000 26,231,000 Current maturities of obligations under capital lease 57,000 24,000 Payable to Med-Tec 20,000 30,000 Accrued expenses 5,741,000 4,360,000 Accounts payable 2,541,000 2,654,000 Deferred revenue 304,000 1,081,000 Total current liabilities 46,433,000 38,604,000 Long-term liabilities: Long-term obligations under capital lease, net of current maturities 73,000 33,000 Total long-term liabilities 73,000 33,000 Total liabilities 46,506,000 38,637,000 Commitments and contingencies: Stockholders' deficit: Common stock; $0.001 par value; 200,000,000 shares authorized; 55,047,510 and 55,036,965 at March 31, 2013 and $0.10 par value; 50,000,000 shares authorized; 39,163,540 and 39,152,995 at June 30, 2012, shares issued and outstanding, respectively 55,000 3,916,000 Preferred stock; $0.10 par value; 5,000,000 shares authorized Series G Convertible Preferred Stock, no stated value; 650,000 shares authorized, 36,167 shares issued and outstanding at March 31, 2013 and 164,667 shares issued and outstanding at June 30, 2012, respectively (liquidation value $289,000 and $1,317,000, respectively) 60,000 274,000 Series H Convertible Preferred Stock, $0.10 par value; 15,000 shares authorized, no shares issued and outstanding - - Series I Convertible Preferred Stock, $0.10 par value; 15,000 shares authorized, no shares issued and outstanding - - Series J Convertible Preferred Stock, $0.10 par value; 6,000 shares authorized, no shares issued and outstanding - - Additional paid-in capital 100,344,000 83,436,000 Accumulated deficit (141,332,000 ) (119,522,000 ) Deferred compensation (167,000 ) (432,000 ) Treasury stock, 10,545 common shares, at cost (73,000 ) (73,000 ) Total stockholders' deficit (41,113,000 ) (32,401,000 ) Total liabilities and stockholders' deficit $ 5,393,000 $ 6,236,000 Implant Sciences Corporation Condensed Consolidated Statements of Operations (Unaudited) For the Three Months For the Nine Months Ended Ended March 31, March 31, 2013 2012 2013 2012 Revenues $ 1,262,000 $ 686,000 $ 9,615,000 $ 2,854,000 Cost of revenues 959,000 504,000 6,883,000 1,908,000 Gross margin 303,000 182,000 2,732,000 946,000 Operating expenses: Research and development 1,116,000 799,000 3,521,000 2,365,000 Selling, general and administrative 3,191,000 2,258,000 17,115,000 6,053,000 Total operating expenses 4,307,000 3,057,000 20,636,000 8,418,000 Loss from operations (4,004,000 ) (2,875,000 ) (17,904,000 ) (7,472,000 ) Other income (expense), net: Interest income 1,000 1,000 2,000 3,000 Interest expense (1,336,000 ) (1,016,000 ) (3,908,000 ) (2,783,000 ) Total other income (expense), net (1,335,000 ) (1,015,000 ) (3,906,000 ) (2,780,000 ) Net loss $ (5,339,000 ) $ (3,890,000 ) $ (21,810,000 ) $ (10,252,000 ) Net loss per share, basic and diluted $ (0.10 ) $ (0.11 ) $ (0.47 ) $ (0.31 ) Weighted average shares used in computing net loss per common share, basic and diluted 53,747,496 34,474,665 46,731,147 33,162,071 Implant Sciences Corporation Earnings Before Interest, Taxes, Depreciation and Stock-Based Compensation ("Adjusted EBITDA") (Unaudited) For the Three Months For the Nine Months Ended Ended March 31, March 31, 2013 2012 2013 2012 Net loss $ (5,339,000 ) $ (3,890,000 ) $ (21,810,000 ) $ (10,252,000 ) Interest expense, net 1,335,000 1,015,000 3,906,000 2,780,000 Income taxes - - - - Depreciation 15,000 15,000 58,000 54,000 Stock-based compensation 1,532,000 83,000 12,325,000 200,000 Warrants issued to non-employees 147,000 109,000 482,000 325,000 Common stock issued to consultants - 587,000 19,000 1,386,000 Adjusted EBITDA (1) $ (2,310,000 ) $ (2,081,000 ) $ (5,020,000 ) $ (5,507,000 )
http://m.yahoo.com/w/legobpengine/finance/news/implant-sciences-reports-third-quarter-110000903.html?.intl=us&.lang=en-us
$IMSC - Implant Sciences Reports Third Quarter Fiscal 2013 Financial Results
WILMINGTON, MA--(Marketwired - May 10, 2013) - Implant Sciences Corporation (OTCQB: IMSC), a high technology supplier of systems and sensors for the homeland security market and related industries, today announced financial results for the fiscal quarter and nine months ended March 31, 2013.
Revenues for the third quarter ended March 31, 2013 increased 84%, to $1.3 million, from $0.7 million for the comparable prior year period. Our net loss for the quarter ended March 31, 2013 was $5.3 million as compared with a net loss of $3.9 million for the comparable prior year period, an increase of $1.4 million. The increase in the net loss is primarily due to $1.5 million of stock-based compensation recorded on option grants to our directors and officers in September 2012, as well as to increased operating expenses and increased interest expense.
Revenues for the nine months ended March 31, 2013 increased 237%, to $9.6 million, from $2.9 million for the comparable prior year period. Our net loss for the nine months ended March 31, 2013 was $21.8 million as compared with a net loss of $10.3 million for the comparable prior year period, an increase of $11.5 million. The increase in the net loss is primarily due to $12.3 million of stock-based compensation recorded on the September 2012 officer and director option grants, as well as to increased operating expenses and increased interest expense.
Earnings before interest, taxes, depreciation, stock-based compensation, warrants issued to non-employees and common stock issued to consultants ("Adjusted EBITDA"), which is reconciled to net income in this press release, calculated in accordance with U.S. generally accepted accounting principles, were a loss of $2,310,000 in the quarter ended March 31, 2013, compared to a loss of $2,081,000 in the comparable prior year period and a loss of $5,020,000 for the nine months ended March 31, 2013, compared to a loss of $5,507,000 in the comparable prior year period.
Glenn D. Bolduc, President and CEO of Implant Sciences, commented, "During our recently concluded third quarter, Implant Sciences achieved a number of important strategic goals that we believe position the Company for consistent and sustainable growth. We have taken important steps to broaden the markets we serve, increase our revenue opportunities, and improve our financial stability." The following are some of our recent developments:
Our QS-B220 Benchtop Explosives and Narcotics Trace Detector which successfully met the requirements for acceptance onto the Transportation Security Administration ("TSA") Air Cargo Screening Technology List in January, has been accepted into the final independent validation testing by the Transportation Security Laboratory for TSA qualification for checkpoint screening. We extended the maturity of our credit agreements with DMRJ Group LLC through March 31, 2014, removed the Company's obligation to repurchase any shares of Series H Preferred Stock into which some of our debt is convertible and negotiated the conversion of $12 million of the line of credit to a convertible term note, increasing availability under the $23 million line of credit. We continued to increase our geographic distribution with sales to Japan, Africa, Asia, the Middle East and to a U.S. Government agency. Increased diversification of markets served in the recently ended quarter now include nuclear plants, a national postal service, corporate offices, critical infrastructure and VIP protection. We received follow-on orders from existing customers for our QS-H150 handheld detector, demonstrating the reliability, operational and cost advantages of this device and our technology, and we received orders for our QS-B220 for use in screening parcels for drugs. We executed a settlement agreement and mutual release with Fulong Electronics Integrated Technique Ltd., which resulted in a one-time $295,000 benefit recognized in the third quarter. We enhanced our IP portfolio with the receipt of our 16th patent from the U.S. Patent and Trademark Office, titled, "Trace Particle Collection System." We continued to attract industry experienced talent and enhanced our technical team with the recruitment of Dr. Quan Shi as Senior Analytical Chemist. Dr. Shi brings in-depth experience in explosives, drugs and other trace chemical detection, gas chromatography, differential ion mobility spectrometry and mass spectrometry. He was most recently Lead R&D Scientist at ThermoFisher Scientific, held senior technical roles at Sionex Corporation and Aerodyne Research and has a proven record of commercializing technology.
Mr. Bolduc concluded, "Our continued progress with the TSA, in achieving acceptance onto the air cargo screening technology list and acceptance into the final independent validation testing for checkpoint screening, are very significant achievements which we believe establish our credibility as the next generation explosives technology in the competitive global trace explosives industry. In addition to increasing our potential business opportunities, these approvals advance our worldwide approval efforts. The influx of industry talent that we have recruited over the past twelve months provides a solid foundation from which to build upon as we work to innovate new products and technology and grow our market share and revenues. We have much work ahead of ourselves, but remain excited about our future prospects."
Details for the quarter ended March 31, 2013 follow below.
Quarter Ended March 31, 2013 vs. March 31, 2012
Revenues for the quarter ended March 31, 2013 were $1,262,000 as compared with $686,000 for the comparable prior year period, an increase of $576,000, or 84.0%. The increase in revenue is due primarily to the shipment of an order to an agency of the U.S. government, resulting in a 104% increase in the number of QS-H150 handheld units sold and increased sales of parts and supplies during the quarter ended March 31, 2013, as compared to the comparable prior year period.
Gross margin for the quarter ended March 31, 2013 was $303,000 or 24.0% of revenues as compared with gross margin of $182,000 or 26.5% of revenues for the comparable prior year period. The decrease in gross margin is primarily the result of increased manufacturing overhead spending due to stock-based compensation recorded on the September 2012 officer and director option grants, and increased manufacturing personnel costs, as compared to the comparable prior year period.
Research and development expense for the quarter ended March 31, 2013 was $1,116,000 as compared with $799,000 for the comparable prior year period, an increase of $317,000 or 39.7%. The increase in research and development expense is due primarily to increased payroll and related benefit costs, stock-based compensation recorded on the September 2012 officer and director option grants, partially offset by decreased contracted engineering.
Selling, general and administrative expenses for the quarter ended March 31, 2013 were $3,191,000 as compared with $2,258,000 for the comparable prior year period, an increase of $933,000, or 41.3%. The increase in selling, general and administrative expenses is due primarily to a $1,244,000 increase in stock-based compensation recorded on the September 2012 officer and director option grants and warrants to purchase shares of our common stock, increased payroll, related benefit costs and travel expense resulting from the addition of sales personnel, legal costs incurred to increase our authorized shares, partially offset by lower consulting fees due to the issuance of our common stock to certain consultants in the comparable prior year period and the $295,000 benefit recognized as a result of the litigation settlement with Fulong.
For the quarter ended March 31, 2013, other expense, net was $1,335,000 as compared with other expense, net of $1,015,000, for the comparable prior year period, an increase of $320,000. The increase was primarily due to increased interest expense on higher borrowings under our credit facility with DMRJ. Interest expense increased $320,000 to $1,336,000 in the quarter ended March 31, 2013 from $1,016,000 in the comparable prior year period.
Our net loss for the quarter ended March 31, 2013 was $5,339,000 as compared with a net loss of $3,890,000 for the comparable prior year period, an increase of $1,449,000, or 37.2%. The increase in the net loss is primarily due to stock-based compensation recorded on the September 2012 officer and director option grants, increased operating expenses and increased interest expense.
Nine Months Ended March 31, 2013 vs. March 31, 2012
Revenues for the nine months ended March 31, 2013 were $9,615,000 as compared with $2,854,000 for the comparable prior year period, an increase of $6,761,000, or 236.9%. The increase in revenue is due primarily to the shipment of the India Ministry of Defence order, resulting in a 244% increase in the number of QS-H150 handheld units sold and increased sales of parts and supplies during the nine months ended March 31, 2013, as compared to the comparable prior year period and, to a lesser extent, incremental sales of our QS-B220 benchtop units, which we began shipping commercially in the third quarter of fiscal 2012, partially offset by an 6.4% decrease in average unit sell prices on sales our QS-H150 handheld units.
Gross margin for the nine months ended March 31, 2013 was $2,732,000 or 28.4% of revenues as compared with gross margin of $946,000 or 33.1% of revenues for the comparable prior year period. The decrease in gross margin is primarily the result of increased manufacturing overhead spending due to stock-based compensation recorded on the September 2012 officer and director option grants, increased manufacturing personnel costs, costs incurred to support the India Ministry of Defense order and by the 6.4% decrease in the average unit sell prices on sales of our QS-H150 handheld units in the nine months ended March 31, 2013, as compared to the comparable prior year period.
Research and development expense for the nine months ended March 31, 2013 was $3,521,000 as compared with $2,365,000 for the comparable prior year period, an increase of $1,156,000 or 48.9%. The increase in research and development expense is due primarily to stock-based compensation recorded on the September 2012 officer and director option grants and increased payroll and related benefit costs, partially offset by decreased contracted engineering.
Selling, general and administrative expenses for the nine months ended March 31, 2013 were $17,115,000 as compared with $6,053,000 for the comparable prior year period, an increase of $11,062,000, or 182.8%. The increase in selling, general and administrative expenses is due primarily to a $10,847,000 increase in stock-based compensation recorded on the September 2012 officer and director option grants and warrants to purchase shares of our common stock, increased payroll, related benefit costs and travel expense resulting from the addition of sales personnel, the imposition of liquidated damages of $298,000 under our contact with the India Ministry of Defence, due to delayed shipment, increased legal fees and costs incurred to increase our authorized shares, and increased bank fees, partially offset by lower consulting fees due to the issuance of our common stock to certain consultants in the comparable prior year period and the $295,000 benefit recognized as a result of the litigation settlement with Fulong.
For the nine months ended March 31, 2013, other expense, net was $3,906,000 as compared with other income, net of $2,780,000, for the comparable prior year period, an increase of $1,126,000. The increase was primarily due to increased interest expense on higher borrowings under our credit facility with DMRJ. Interest expense increased $1,125,000 to $3,908,000 in the nine months ended March 31, 2013 from $2,783,000 in the comparable prior year period.
Our net loss for the nine months ended March 31, 2013 was $21,810,000 as compared with a net loss of $10,252,000 for the comparable prior year period, an increase of $11,558,000, or 112.7%. The increase in the net loss is primarily due to stock-based compensation recorded on the September 2012 officer and director option grants, increased operating expenses and increased interest expense.
Company Conference Call
Management will host a webcast and conference call on Friday, May 10, 2013 at 1:00 PM Eastern time to review the Company's third quarter fiscal 2013 ended March 31, 2013 financial results. Following the Company's prepared remarks there will be a Q&A session. The call can be accessed by interested parties by dialing: 866-318-8617 within the U.S. or 617-399-5136 outside the U.S. and entering passcode 36249137. Participants are asked to call the assigned number approximately 5 minutes before the conference call begins. A replay of the conference call will be available approximately two hours after the call for one month by dialing: 888-286-8010 within the U.S. or 617-801-6888 outside the U.S. and entering passcode 54922770. The conference call will also be available live over the Internet at the investor relations section of Implant Sciences' website at www.implantsciences.com. A replay of the webcast will be available for one month after the call.
About Implant Sciences
Implant Sciences is the leader in next generation Explosives Trace Detection (ETD) technology. In January 2013, the Company became only the third ETD manufacturer, and the sole American-owned company, to receive product approval from the US Transportation Security Administration. Implant Sciences develops, manufactures and sells sophisticated sensors and systems for Security, Safety, and Defense (SS&D) markets. The Company has developed proprietary technologies used in its commercial explosives and narcotics trace detection systems, which ship to a growing number of locations domestically and internationally. Implant Sciences' QS-H150 portable explosives trace detector has received Qualified Anti-Terrorism Technology Designation and, in addition to receiving TSA approval for air cargo screening, the Company's QS-B220 has also received a Developmental Testing & Evaluation (DT&E) Designation by the U.S. Department of Homeland Security under the Support Anti-terrorism by Fostering Effective Technology Act of 2002 (the SAFETY Act). For further details on the Company and its products, please visit the Company's website at www.implantsciences.com.
Safe Harbor Statement
This press release may contain certain "forward-looking statements," as that term is defined in the Private Securities Litigation Reform Act of 1995. Such statements are based on management's current expectations and are subject to risks and uncertainties that could cause the Company's actual results to differ materially from the forward-looking statements. Such risks and uncertainties include, but are not limited to, the risks that we will be required to repay all of our indebtedness to our secured lender, DMRJ Group, by March 31, 2014; if we are unable to satisfy our obligations to DMRJ and to raise additional capital to fund operations, DMRJ may seize our assets and our business may fail; we continue to incur substantial operating losses and may never be profitable; our independent registered public accounting firm has expressed substantial doubt as to our ability to continue as a going concern; our explosives detection products and technologies (including any new products we may develop) may not be accepted by the Transportation Security Administration or by other U.S. or foreign government and law enforcement agencies or commercial consumers of security products; economic, political and other risks associated with international sales and operations could adversely affect our sales; the risk that liability claims related to our products or our handling of hazardous materials could damage our reputation and have a material adverse effect on our financial results; the risk that our business is subject to intense competition; the risks that our markets are subject to rapid technology change and that our success depends on our ability to develop and introduce new products; the risks that we may not be able to retain our management and key employees or to identify, hire and retain additional personnel as needed; the risks that we may not be able to enforce our patent and other intellectual property rights or operate without infringing on the proprietary rights of others: and other risks and uncertainties described in our filings with the Securities and Exchange Commission, including its most recent Forms 10-K, 10-Q and 8-K. Such statements are based on management's current expectations and assumptions which could differ materially from the forward-looking statements.
For further information, you are encouraged to review Implant Sciences' filings with the Securities and Exchange Commission, including its Annual Report on Form 10-K for the period ended June 30, 2012. The Company assumes no obligation to update the information contained in this press release.
Implant Sciences Corporation Condensed Consolidated Balance Sheets March 31, June 30, 2013 2012 (Unaudited) (Audited) ASSETS Current assets: Cash and cash equivalents $ - $ 84,000 Restricted cash and investments 1,295,000 1,274,000 Accounts receivable-trade, net of allowances of $3,000 and $20,000, respectively 746,000 182,000 Inventories, net 2,218,000 3,193,000 Prepaid expenses and other current assets 333,000 809,000 Total current assets 4,592,000 5,542,000 Property and equipment, net 363,000 220,000 Restricted cash and investments 312,000 312,000 Other non-current assets 126,000 162,000 Total assets $ 5,393,000 $ 6,236,000 LIABILITIES AND STOCKHOLDERS' DEFICIT Current liabilities: Senior secured convertible promissory note $ 3,184,000 $ 3,224,000 Second senior secured convertible promissory note 12,000,000 - Third senior secured convertible promissory note 12,000,000 - Senior secured promissory note 1,000,000 1,000,000 Line of credit 9,586,000 26,231,000 Current maturities of obligations under capital lease 57,000 24,000 Payable to Med-Tec 20,000 30,000 Accrued expenses 5,741,000 4,360,000 Accounts payable 2,541,000 2,654,000 Deferred revenue 304,000 1,081,000 Total current liabilities 46,433,000 38,604,000 Long-term liabilities: Long-term obligations under capital lease, net of current maturities 73,000 33,000 Total long-term liabilities 73,000 33,000 Total liabilities 46,506,000 38,637,000 Commitments and contingencies: Stockholders' deficit: Common stock; $0.001 par value; 200,000,000 shares authorized; 55,047,510 and 55,036,965 at March 31, 2013 and $0.10 par value; 50,000,000 shares authorized; 39,163,540 and 39,152,995 at June 30, 2012, shares issued and outstanding, respectively 55,000 3,916,000 Preferred stock; $0.10 par value; 5,000,000 shares authorized Series G Convertible Preferred Stock, no stated value; 650,000 shares authorized, 36,167 shares issued and outstanding at March 31, 2013 and 164,667 shares issued and outstanding at June 30, 2012, respectively (liquidation value $289,000 and $1,317,000, respectively) 60,000 274,000 Series H Convertible Preferred Stock, $0.10 par value; 15,000 shares authorized, no shares issued and outstanding - - Series I Convertible Preferred Stock, $0.10 par value; 15,000 shares authorized, no shares issued and outstanding - - Series J Convertible Preferred Stock, $0.10 par value; 6,000 shares authorized, no shares issued and outstanding - - Additional paid-in capital 100,344,000 83,436,000 Accumulated deficit (141,332,000 ) (119,522,000 ) Deferred compensation (167,000 ) (432,000 ) Treasury stock, 10,545 common shares, at cost (73,000 ) (73,000 ) Total stockholders' deficit (41,113,000 ) (32,401,000 ) Total liabilities and stockholders' deficit $ 5,393,000 $ 6,236,000 Implant Sciences Corporation Condensed Consolidated Statements of Operations (Unaudited) For the Three Months For the Nine Months Ended Ended March 31, March 31, 2013 2012 2013 2012 Revenues $ 1,262,000 $ 686,000 $ 9,615,000 $ 2,854,000 Cost of revenues 959,000 504,000 6,883,000 1,908,000 Gross margin 303,000 182,000 2,732,000 946,000 Operating expenses: Research and development 1,116,000 799,000 3,521,000 2,365,000 Selling, general and administrative 3,191,000 2,258,000 17,115,000 6,053,000 Total operating expenses 4,307,000 3,057,000 20,636,000 8,418,000 Loss from operations (4,004,000 ) (2,875,000 ) (17,904,000 ) (7,472,000 ) Other income (expense), net: Interest income 1,000 1,000 2,000 3,000 Interest expense (1,336,000 ) (1,016,000 ) (3,908,000 ) (2,783,000 ) Total other income (expense), net (1,335,000 ) (1,015,000 ) (3,906,000 ) (2,780,000 ) Net loss $ (5,339,000 ) $ (3,890,000 ) $ (21,810,000 ) $ (10,252,000 ) Net loss per share, basic and diluted $ (0.10 ) $ (0.11 ) $ (0.47 ) $ (0.31 ) Weighted average shares used in computing net loss per common share, basic and diluted 53,747,496 34,474,665 46,731,147 33,162,071 Implant Sciences Corporation Earnings Before Interest, Taxes, Depreciation and Stock-Based Compensation ("Adjusted EBITDA") (Unaudited) For the Three Months For the Nine Months Ended Ended March 31, March 31, 2013 2012 2013 2012 Net loss $ (5,339,000 ) $ (3,890,000 ) $ (21,810,000 ) $ (10,252,000 ) Interest expense, net 1,335,000 1,015,000 3,906,000 2,780,000 Income taxes - - - - Depreciation 15,000 15,000 58,000 54,000 Stock-based compensation 1,532,000 83,000 12,325,000 200,000 Warrants issued to non-employees 147,000 109,000 482,000 325,000 Common stock issued to consultants - 587,000 19,000 1,386,000 Adjusted EBITDA (1) $ (2,310,000 ) $ (2,081,000 ) $ (5,020,000 ) $ (5,507,000 )
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$IMSC - Implant Sciences Reports Third Quarter Fiscal 2013 Financial Results
WILMINGTON, MA--(Marketwired - May 10, 2013) - Implant Sciences Corporation (OTCQB: IMSC), a high technology supplier of systems and sensors for the homeland security market and related industries, today announced financial results for the fiscal quarter and nine months ended March 31, 2013.
Revenues for the third quarter ended March 31, 2013 increased 84%, to $1.3 million, from $0.7 million for the comparable prior year period. Our net loss for the quarter ended March 31, 2013 was $5.3 million as compared with a net loss of $3.9 million for the comparable prior year period, an increase of $1.4 million. The increase in the net loss is primarily due to $1.5 million of stock-based compensation recorded on option grants to our directors and officers in September 2012, as well as to increased operating expenses and increased interest expense.
Revenues for the nine months ended March 31, 2013 increased 237%, to $9.6 million, from $2.9 million for the comparable prior year period. Our net loss for the nine months ended March 31, 2013 was $21.8 million as compared with a net loss of $10.3 million for the comparable prior year period, an increase of $11.5 million. The increase in the net loss is primarily due to $12.3 million of stock-based compensation recorded on the September 2012 officer and director option grants, as well as to increased operating expenses and increased interest expense.
Earnings before interest, taxes, depreciation, stock-based compensation, warrants issued to non-employees and common stock issued to consultants ("Adjusted EBITDA"), which is reconciled to net income in this press release, calculated in accordance with U.S. generally accepted accounting principles, were a loss of $2,310,000 in the quarter ended March 31, 2013, compared to a loss of $2,081,000 in the comparable prior year period and a loss of $5,020,000 for the nine months ended March 31, 2013, compared to a loss of $5,507,000 in the comparable prior year period.
Glenn D. Bolduc, President and CEO of Implant Sciences, commented, "During our recently concluded third quarter, Implant Sciences achieved a number of important strategic goals that we believe position the Company for consistent and sustainable growth. We have taken important steps to broaden the markets we serve, increase our revenue opportunities, and improve our financial stability." The following are some of our recent developments:
Our QS-B220 Benchtop Explosives and Narcotics Trace Detector which successfully met the requirements for acceptance onto the Transportation Security Administration ("TSA") Air Cargo Screening Technology List in January, has been accepted into the final independent validation testing by the Transportation Security Laboratory for TSA qualification for checkpoint screening. We extended the maturity of our credit agreements with DMRJ Group LLC through March 31, 2014, removed the Company's obligation to repurchase any shares of Series H Preferred Stock into which some of our debt is convertible and negotiated the conversion of $12 million of the line of credit to a convertible term note, increasing availability under the $23 million line of credit. We continued to increase our geographic distribution with sales to Japan, Africa, Asia, the Middle East and to a U.S. Government agency. Increased diversification of markets served in the recently ended quarter now include nuclear plants, a national postal service, corporate offices, critical infrastructure and VIP protection. We received follow-on orders from existing customers for our QS-H150 handheld detector, demonstrating the reliability, operational and cost advantages of this device and our technology, and we received orders for our QS-B220 for use in screening parcels for drugs. We executed a settlement agreement and mutual release with Fulong Electronics Integrated Technique Ltd., which resulted in a one-time $295,000 benefit recognized in the third quarter. We enhanced our IP portfolio with the receipt of our 16th patent from the U.S. Patent and Trademark Office, titled, "Trace Particle Collection System." We continued to attract industry experienced talent and enhanced our technical team with the recruitment of Dr. Quan Shi as Senior Analytical Chemist. Dr. Shi brings in-depth experience in explosives, drugs and other trace chemical detection, gas chromatography, differential ion mobility spectrometry and mass spectrometry. He was most recently Lead R&D Scientist at ThermoFisher Scientific, held senior technical roles at Sionex Corporation and Aerodyne Research and has a proven record of commercializing technology.
Mr. Bolduc concluded, "Our continued progress with the TSA, in achieving acceptance onto the air cargo screening technology list and acceptance into the final independent validation testing for checkpoint screening, are very significant achievements which we believe establish our credibility as the next generation explosives technology in the competitive global trace explosives industry. In addition to increasing our potential business opportunities, these approvals advance our worldwide approval efforts. The influx of industry talent that we have recruited over the past twelve months provides a solid foundation from which to build upon as we work to innovate new products and technology and grow our market share and revenues. We have much work ahead of ourselves, but remain excited about our future prospects."
Details for the quarter ended March 31, 2013 follow below.
Quarter Ended March 31, 2013 vs. March 31, 2012
Revenues for the quarter ended March 31, 2013 were $1,262,000 as compared with $686,000 for the comparable prior year period, an increase of $576,000, or 84.0%. The increase in revenue is due primarily to the shipment of an order to an agency of the U.S. government, resulting in a 104% increase in the number of QS-H150 handheld units sold and increased sales of parts and supplies during the quarter ended March 31, 2013, as compared to the comparable prior year period.
Gross margin for the quarter ended March 31, 2013 was $303,000 or 24.0% of revenues as compared with gross margin of $182,000 or 26.5% of revenues for the comparable prior year period. The decrease in gross margin is primarily the result of increased manufacturing overhead spending due to stock-based compensation recorded on the September 2012 officer and director option grants, and increased manufacturing personnel costs, as compared to the comparable prior year period.
Research and development expense for the quarter ended March 31, 2013 was $1,116,000 as compared with $799,000 for the comparable prior year period, an increase of $317,000 or 39.7%. The increase in research and development expense is due primarily to increased payroll and related benefit costs, stock-based compensation recorded on the September 2012 officer and director option grants, partially offset by decreased contracted engineering.
Selling, general and administrative expenses for the quarter ended March 31, 2013 were $3,191,000 as compared with $2,258,000 for the comparable prior year period, an increase of $933,000, or 41.3%. The increase in selling, general and administrative expenses is due primarily to a $1,244,000 increase in stock-based compensation recorded on the September 2012 officer and director option grants and warrants to purchase shares of our common stock, increased payroll, related benefit costs and travel expense resulting from the addition of sales personnel, legal costs incurred to increase our authorized shares, partially offset by lower consulting fees due to the issuance of our common stock to certain consultants in the comparable prior year period and the $295,000 benefit recognized as a result of the litigation settlement with Fulong.
For the quarter ended March 31, 2013, other expense, net was $1,335,000 as compared with other expense, net of $1,015,000, for the comparable prior year period, an increase of $320,000. The increase was primarily due to increased interest expense on higher borrowings under our credit facility with DMRJ. Interest expense increased $320,000 to $1,336,000 in the quarter ended March 31, 2013 from $1,016,000 in the comparable prior year period.
Our net loss for the quarter ended March 31, 2013 was $5,339,000 as compared with a net loss of $3,890,000 for the comparable prior year period, an increase of $1,449,000, or 37.2%. The increase in the net loss is primarily due to stock-based compensation recorded on the September 2012 officer and director option grants, increased operating expenses and increased interest expense.
Nine Months Ended March 31, 2013 vs. March 31, 2012
Revenues for the nine months ended March 31, 2013 were $9,615,000 as compared with $2,854,000 for the comparable prior year period, an increase of $6,761,000, or 236.9%. The increase in revenue is due primarily to the shipment of the India Ministry of Defence order, resulting in a 244% increase in the number of QS-H150 handheld units sold and increased sales of parts and supplies during the nine months ended March 31, 2013, as compared to the comparable prior year period and, to a lesser extent, incremental sales of our QS-B220 benchtop units, which we began shipping commercially in the third quarter of fiscal 2012, partially offset by an 6.4% decrease in average unit sell prices on sales our QS-H150 handheld units.
Gross margin for the nine months ended March 31, 2013 was $2,732,000 or 28.4% of revenues as compared with gross margin of $946,000 or 33.1% of revenues for the comparable prior year period. The decrease in gross margin is primarily the result of increased manufacturing overhead spending due to stock-based compensation recorded on the September 2012 officer and director option grants, increased manufacturing personnel costs, costs incurred to support the India Ministry of Defense order and by the 6.4% decrease in the average unit sell prices on sales of our QS-H150 handheld units in the nine months ended March 31, 2013, as compared to the comparable prior year period.
Research and development expense for the nine months ended March 31, 2013 was $3,521,000 as compared with $2,365,000 for the comparable prior year period, an increase of $1,156,000 or 48.9%. The increase in research and development expense is due primarily to stock-based compensation recorded on the September 2012 officer and director option grants and increased payroll and related benefit costs, partially offset by decreased contracted engineering.
Selling, general and administrative expenses for the nine months ended March 31, 2013 were $17,115,000 as compared with $6,053,000 for the comparable prior year period, an increase of $11,062,000, or 182.8%. The increase in selling, general and administrative expenses is due primarily to a $10,847,000 increase in stock-based compensation recorded on the September 2012 officer and director option grants and warrants to purchase shares of our common stock, increased payroll, related benefit costs and travel expense resulting from the addition of sales personnel, the imposition of liquidated damages of $298,000 under our contact with the India Ministry of Defence, due to delayed shipment, increased legal fees and costs incurred to increase our authorized shares, and increased bank fees, partially offset by lower consulting fees due to the issuance of our common stock to certain consultants in the comparable prior year period and the $295,000 benefit recognized as a result of the litigation settlement with Fulong.
For the nine months ended March 31, 2013, other expense, net was $3,906,000 as compared with other income, net of $2,780,000, for the comparable prior year period, an increase of $1,126,000. The increase was primarily due to increased interest expense on higher borrowings under our credit facility with DMRJ. Interest expense increased $1,125,000 to $3,908,000 in the nine months ended March 31, 2013 from $2,783,000 in the comparable prior year period.
Our net loss for the nine months ended March 31, 2013 was $21,810,000 as compared with a net loss of $10,252,000 for the comparable prior year period, an increase of $11,558,000, or 112.7%. The increase in the net loss is primarily due to stock-based compensation recorded on the September 2012 officer and director option grants, increased operating expenses and increased interest expense.
Company Conference Call
Management will host a webcast and conference call on Friday, May 10, 2013 at 1:00 PM Eastern time to review the Company's third quarter fiscal 2013 ended March 31, 2013 financial results. Following the Company's prepared remarks there will be a Q&A session. The call can be accessed by interested parties by dialing: 866-318-8617 within the U.S. or 617-399-5136 outside the U.S. and entering passcode 36249137. Participants are asked to call the assigned number approximately 5 minutes before the conference call begins. A replay of the conference call will be available approximately two hours after the call for one month by dialing: 888-286-8010 within the U.S. or 617-801-6888 outside the U.S. and entering passcode 54922770. The conference call will also be available live over the Internet at the investor relations section of Implant Sciences' website at www.implantsciences.com. A replay of the webcast will be available for one month after the call.
About Implant Sciences
Implant Sciences is the leader in next generation Explosives Trace Detection (ETD) technology. In January 2013, the Company became only the third ETD manufacturer, and the sole American-owned company, to receive product approval from the US Transportation Security Administration. Implant Sciences develops, manufactures and sells sophisticated sensors and systems for Security, Safety, and Defense (SS&D) markets. The Company has developed proprietary technologies used in its commercial explosives and narcotics trace detection systems, which ship to a growing number of locations domestically and internationally. Implant Sciences' QS-H150 portable explosives trace detector has received Qualified Anti-Terrorism Technology Designation and, in addition to receiving TSA approval for air cargo screening, the Company's QS-B220 has also received a Developmental Testing & Evaluation (DT&E) Designation by the U.S. Department of Homeland Security under the Support Anti-terrorism by Fostering Effective Technology Act of 2002 (the SAFETY Act). For further details on the Company and its products, please visit the Company's website at www.implantsciences.com.
Safe Harbor Statement
This press release may contain certain "forward-looking statements," as that term is defined in the Private Securities Litigation Reform Act of 1995. Such statements are based on management's current expectations and are subject to risks and uncertainties that could cause the Company's actual results to differ materially from the forward-looking statements. Such risks and uncertainties include, but are not limited to, the risks that we will be required to repay all of our indebtedness to our secured lender, DMRJ Group, by March 31, 2014; if we are unable to satisfy our obligations to DMRJ and to raise additional capital to fund operations, DMRJ may seize our assets and our business may fail; we continue to incur substantial operating losses and may never be profitable; our independent registered public accounting firm has expressed substantial doubt as to our ability to continue as a going concern; our explosives detection products and technologies (including any new products we may develop) may not be accepted by the Transportation Security Administration or by other U.S. or foreign government and law enforcement agencies or commercial consumers of security products; economic, political and other risks associated with international sales and operations could adversely affect our sales; the risk that liability claims related to our products or our handling of hazardous materials could damage our reputation and have a material adverse effect on our financial results; the risk that our business is subject to intense competition; the risks that our markets are subject to rapid technology change and that our success depends on our ability to develop and introduce new products; the risks that we may not be able to retain our management and key employees or to identify, hire and retain additional personnel as needed; the risks that we may not be able to enforce our patent and other intellectual property rights or operate without infringing on the proprietary rights of others: and other risks and uncertainties described in our filings with the Securities and Exchange Commission, including its most recent Forms 10-K, 10-Q and 8-K. Such statements are based on management's current expectations and assumptions which could differ materially from the forward-looking statements.
For further information, you are encouraged to review Implant Sciences' filings with the Securities and Exchange Commission, including its Annual Report on Form 10-K for the period ended June 30, 2012. The Company assumes no obligation to update the information contained in this press release.
Implant Sciences Corporation Condensed Consolidated Balance Sheets March 31, June 30, 2013 2012 (Unaudited) (Audited) ASSETS Current assets: Cash and cash equivalents $ - $ 84,000 Restricted cash and investments 1,295,000 1,274,000 Accounts receivable-trade, net of allowances of $3,000 and $20,000, respectively 746,000 182,000 Inventories, net 2,218,000 3,193,000 Prepaid expenses and other current assets 333,000 809,000 Total current assets 4,592,000 5,542,000 Property and equipment, net 363,000 220,000 Restricted cash and investments 312,000 312,000 Other non-current assets 126,000 162,000 Total assets $ 5,393,000 $ 6,236,000 LIABILITIES AND STOCKHOLDERS' DEFICIT Current liabilities: Senior secured convertible promissory note $ 3,184,000 $ 3,224,000 Second senior secured convertible promissory note 12,000,000 - Third senior secured convertible promissory note 12,000,000 - Senior secured promissory note 1,000,000 1,000,000 Line of credit 9,586,000 26,231,000 Current maturities of obligations under capital lease 57,000 24,000 Payable to Med-Tec 20,000 30,000 Accrued expenses 5,741,000 4,360,000 Accounts payable 2,541,000 2,654,000 Deferred revenue 304,000 1,081,000 Total current liabilities 46,433,000 38,604,000 Long-term liabilities: Long-term obligations under capital lease, net of current maturities 73,000 33,000 Total long-term liabilities 73,000 33,000 Total liabilities 46,506,000 38,637,000 Commitments and contingencies: Stockholders' deficit: Common stock; $0.001 par value; 200,000,000 shares authorized; 55,047,510 and 55,036,965 at March 31, 2013 and $0.10 par value; 50,000,000 shares authorized; 39,163,540 and 39,152,995 at June 30, 2012, shares issued and outstanding, respectively 55,000 3,916,000 Preferred stock; $0.10 par value; 5,000,000 shares authorized Series G Convertible Preferred Stock, no stated value; 650,000 shares authorized, 36,167 shares issued and outstanding at March 31, 2013 and 164,667 shares issued and outstanding at June 30, 2012, respectively (liquidation value $289,000 and $1,317,000, respectively) 60,000 274,000 Series H Convertible Preferred Stock, $0.10 par value; 15,000 shares authorized, no shares issued and outstanding - - Series I Convertible Preferred Stock, $0.10 par value; 15,000 shares authorized, no shares issued and outstanding - - Series J Convertible Preferred Stock, $0.10 par value; 6,000 shares authorized, no shares issued and outstanding - - Additional paid-in capital 100,344,000 83,436,000 Accumulated deficit (141,332,000 ) (119,522,000 ) Deferred compensation (167,000 ) (432,000 ) Treasury stock, 10,545 common shares, at cost (73,000 ) (73,000 ) Total stockholders' deficit (41,113,000 ) (32,401,000 ) Total liabilities and stockholders' deficit $ 5,393,000 $ 6,236,000 Implant Sciences Corporation Condensed Consolidated Statements of Operations (Unaudited) For the Three Months For the Nine Months Ended Ended March 31, March 31, 2013 2012 2013 2012 Revenues $ 1,262,000 $ 686,000 $ 9,615,000 $ 2,854,000 Cost of revenues 959,000 504,000 6,883,000 1,908,000 Gross margin 303,000 182,000 2,732,000 946,000 Operating expenses: Research and development 1,116,000 799,000 3,521,000 2,365,000 Selling, general and administrative 3,191,000 2,258,000 17,115,000 6,053,000 Total operating expenses 4,307,000 3,057,000 20,636,000 8,418,000 Loss from operations (4,004,000 ) (2,875,000 ) (17,904,000 ) (7,472,000 ) Other income (expense), net: Interest income 1,000 1,000 2,000 3,000 Interest expense (1,336,000 ) (1,016,000 ) (3,908,000 ) (2,783,000 ) Total other income (expense), net (1,335,000 ) (1,015,000 ) (3,906,000 ) (2,780,000 ) Net loss $ (5,339,000 ) $ (3,890,000 ) $ (21,810,000 ) $ (10,252,000 ) Net loss per share, basic and diluted $ (0.10 ) $ (0.11 ) $ (0.47 ) $ (0.31 ) Weighted average shares used in computing net loss per common share, basic and diluted 53,747,496 34,474,665 46,731,147 33,162,071 Implant Sciences Corporation Earnings Before Interest, Taxes, Depreciation and Stock-Based Compensation ("Adjusted EBITDA") (Unaudited) For the Three Months For the Nine Months Ended Ended March 31, March 31, 2013 2012 2013 2012 Net loss $ (5,339,000 ) $ (3,890,000 ) $ (21,810,000 ) $ (10,252,000 ) Interest expense, net 1,335,000 1,015,000 3,906,000 2,780,000 Income taxes - - - - Depreciation 15,000 15,000 58,000 54,000 Stock-based compensation 1,532,000 83,000 12,325,000 200,000 Warrants issued to non-employees 147,000 109,000 482,000 325,000 Common stock issued to consultants - 587,000 19,000 1,386,000 Adjusted EBITDA (1) $ (2,310,000 ) $ (2,081,000 ) $ (5,020,000 ) $ (5,507,000 )
http://m.yahoo.com/w/legobpengine/finance/news/implant-sciences-reports-third-quarter-110000903.html?.intl=us&.lang=en-us
Implant Sciences Reports Third Quarter Fiscal 2013 Financial Results
WILMINGTON, MA--(Marketwired - May 10, 2013) - Implant Sciences Corporation (OTCQB: IMSC), a high technology supplier of systems and sensors for the homeland security market and related industries, today announced financial results for the fiscal quarter and nine months ended March 31, 2013.
Revenues for the third quarter ended March 31, 2013 increased 84%, to $1.3 million, from $0.7 million for the comparable prior year period. Our net loss for the quarter ended March 31, 2013 was $5.3 million as compared with a net loss of $3.9 million for the comparable prior year period, an increase of $1.4 million. The increase in the net loss is primarily due to $1.5 million of stock-based compensation recorded on option grants to our directors and officers in September 2012, as well as to increased operating expenses and increased interest expense.
Revenues for the nine months ended March 31, 2013 increased 237%, to $9.6 million, from $2.9 million for the comparable prior year period. Our net loss for the nine months ended March 31, 2013 was $21.8 million as compared with a net loss of $10.3 million for the comparable prior year period, an increase of $11.5 million. The increase in the net loss is primarily due to $12.3 million of stock-based compensation recorded on the September 2012 officer and director option grants, as well as to increased operating expenses and increased interest expense.
Earnings before interest, taxes, depreciation, stock-based compensation, warrants issued to non-employees and common stock issued to consultants ("Adjusted EBITDA"), which is reconciled to net income in this press release, calculated in accordance with U.S. generally accepted accounting principles, were a loss of $2,310,000 in the quarter ended March 31, 2013, compared to a loss of $2,081,000 in the comparable prior year period and a loss of $5,020,000 for the nine months ended March 31, 2013, compared to a loss of $5,507,000 in the comparable prior year period.
Glenn D. Bolduc, President and CEO of Implant Sciences, commented, "During our recently concluded third quarter, Implant Sciences achieved a number of important strategic goals that we believe position the Company for consistent and sustainable growth. We have taken important steps to broaden the markets we serve, increase our revenue opportunities, and improve our financial stability." The following are some of our recent developments:
Our QS-B220 Benchtop Explosives and Narcotics Trace Detector which successfully met the requirements for acceptance onto the Transportation Security Administration ("TSA") Air Cargo Screening Technology List in January, has been accepted into the final independent validation testing by the Transportation Security Laboratory for TSA qualification for checkpoint screening. We extended the maturity of our credit agreements with DMRJ Group LLC through March 31, 2014, removed the Company's obligation to repurchase any shares of Series H Preferred Stock into which some of our debt is convertible and negotiated the conversion of $12 million of the line of credit to a convertible term note, increasing availability under the $23 million line of credit. We continued to increase our geographic distribution with sales to Japan, Africa, Asia, the Middle East and to a U.S. Government agency. Increased diversification of markets served in the recently ended quarter now include nuclear plants, a national postal service, corporate offices, critical infrastructure and VIP protection. We received follow-on orders from existing customers for our QS-H150 handheld detector, demonstrating the reliability, operational and cost advantages of this device and our technology, and we received orders for our QS-B220 for use in screening parcels for drugs. We executed a settlement agreement and mutual release with Fulong Electronics Integrated Technique Ltd., which resulted in a one-time $295,000 benefit recognized in the third quarter. We enhanced our IP portfolio with the receipt of our 16th patent from the U.S. Patent and Trademark Office, titled, "Trace Particle Collection System." We continued to attract industry experienced talent and enhanced our technical team with the recruitment of Dr. Quan Shi as Senior Analytical Chemist. Dr. Shi brings in-depth experience in explosives, drugs and other trace chemical detection, gas chromatography, differential ion mobility spectrometry and mass spectrometry. He was most recently Lead R&D Scientist at ThermoFisher Scientific, held senior technical roles at Sionex Corporation and Aerodyne Research and has a proven record of commercializing technology.
Mr. Bolduc concluded, "Our continued progress with the TSA, in achieving acceptance onto the air cargo screening technology list and acceptance into the final independent validation testing for checkpoint screening, are very significant achievements which we believe establish our credibility as the next generation explosives technology in the competitive global trace explosives industry. In addition to increasing our potential business opportunities, these approvals advance our worldwide approval efforts. The influx of industry talent that we have recruited over the past twelve months provides a solid foundation from which to build upon as we work to innovate new products and technology and grow our market share and revenues. We have much work ahead of ourselves, but remain excited about our future prospects."
Details for the quarter ended March 31, 2013 follow below.
Quarter Ended March 31, 2013 vs. March 31, 2012
Revenues for the quarter ended March 31, 2013 were $1,262,000 as compared with $686,000 for the comparable prior year period, an increase of $576,000, or 84.0%. The increase in revenue is due primarily to the shipment of an order to an agency of the U.S. government, resulting in a 104% increase in the number of QS-H150 handheld units sold and increased sales of parts and supplies during the quarter ended March 31, 2013, as compared to the comparable prior year period.
Gross margin for the quarter ended March 31, 2013 was $303,000 or 24.0% of revenues as compared with gross margin of $182,000 or 26.5% of revenues for the comparable prior year period. The decrease in gross margin is primarily the result of increased manufacturing overhead spending due to stock-based compensation recorded on the September 2012 officer and director option grants, and increased manufacturing personnel costs, as compared to the comparable prior year period.
Research and development expense for the quarter ended March 31, 2013 was $1,116,000 as compared with $799,000 for the comparable prior year period, an increase of $317,000 or 39.7%. The increase in research and development expense is due primarily to increased payroll and related benefit costs, stock-based compensation recorded on the September 2012 officer and director option grants, partially offset by decreased contracted engineering.
Selling, general and administrative expenses for the quarter ended March 31, 2013 were $3,191,000 as compared with $2,258,000 for the comparable prior year period, an increase of $933,000, or 41.3%. The increase in selling, general and administrative expenses is due primarily to a $1,244,000 increase in stock-based compensation recorded on the September 2012 officer and director option grants and warrants to purchase shares of our common stock, increased payroll, related benefit costs and travel expense resulting from the addition of sales personnel, legal costs incurred to increase our authorized shares, partially offset by lower consulting fees due to the issuance of our common stock to certain consultants in the comparable prior year period and the $295,000 benefit recognized as a result of the litigation settlement with Fulong.
For the quarter ended March 31, 2013, other expense, net was $1,335,000 as compared with other expense, net of $1,015,000, for the comparable prior year period, an increase of $320,000. The increase was primarily due to increased interest expense on higher borrowings under our credit facility with DMRJ. Interest expense increased $320,000 to $1,336,000 in the quarter ended March 31, 2013 from $1,016,000 in the comparable prior year period.
Our net loss for the quarter ended March 31, 2013 was $5,339,000 as compared with a net loss of $3,890,000 for the comparable prior year period, an increase of $1,449,000, or 37.2%. The increase in the net loss is primarily due to stock-based compensation recorded on the September 2012 officer and director option grants, increased operating expenses and increased interest expense.
Nine Months Ended March 31, 2013 vs. March 31, 2012
Revenues for the nine months ended March 31, 2013 were $9,615,000 as compared with $2,854,000 for the comparable prior year period, an increase of $6,761,000, or 236.9%. The increase in revenue is due primarily to the shipment of the India Ministry of Defence order, resulting in a 244% increase in the number of QS-H150 handheld units sold and increased sales of parts and supplies during the nine months ended March 31, 2013, as compared to the comparable prior year period and, to a lesser extent, incremental sales of our QS-B220 benchtop units, which we began shipping commercially in the third quarter of fiscal 2012, partially offset by an 6.4% decrease in average unit sell prices on sales our QS-H150 handheld units.
Gross margin for the nine months ended March 31, 2013 was $2,732,000 or 28.4% of revenues as compared with gross margin of $946,000 or 33.1% of revenues for the comparable prior year period. The decrease in gross margin is primarily the result of increased manufacturing overhead spending due to stock-based compensation recorded on the September 2012 officer and director option grants, increased manufacturing personnel costs, costs incurred to support the India Ministry of Defense order and by the 6.4% decrease in the average unit sell prices on sales of our QS-H150 handheld units in the nine months ended March 31, 2013, as compared to the comparable prior year period.
Research and development expense for the nine months ended March 31, 2013 was $3,521,000 as compared with $2,365,000 for the comparable prior year period, an increase of $1,156,000 or 48.9%. The increase in research and development expense is due primarily to stock-based compensation recorded on the September 2012 officer and director option grants and increased payroll and related benefit costs, partially offset by decreased contracted engineering.
Selling, general and administrative expenses for the nine months ended March 31, 2013 were $17,115,000 as compared with $6,053,000 for the comparable prior year period, an increase of $11,062,000, or 182.8%. The increase in selling, general and administrative expenses is due primarily to a $10,847,000 increase in stock-based compensation recorded on the September 2012 officer and director option grants and warrants to purchase shares of our common stock, increased payroll, related benefit costs and travel expense resulting from the addition of sales personnel, the imposition of liquidated damages of $298,000 under our contact with the India Ministry of Defence, due to delayed shipment, increased legal fees and costs incurred to increase our authorized shares, and increased bank fees, partially offset by lower consulting fees due to the issuance of our common stock to certain consultants in the comparable prior year period and the $295,000 benefit recognized as a result of the litigation settlement with Fulong.
For the nine months ended March 31, 2013, other expense, net was $3,906,000 as compared with other income, net of $2,780,000, for the comparable prior year period, an increase of $1,126,000. The increase was primarily due to increased interest expense on higher borrowings under our credit facility with DMRJ. Interest expense increased $1,125,000 to $3,908,000 in the nine months ended March 31, 2013 from $2,783,000 in the comparable prior year period.
Our net loss for the nine months ended March 31, 2013 was $21,810,000 as compared with a net loss of $10,252,000 for the comparable prior year period, an increase of $11,558,000, or 112.7%. The increase in the net loss is primarily due to stock-based compensation recorded on the September 2012 officer and director option grants, increased operating expenses and increased interest expense.
Company Conference Call
Management will host a webcast and conference call on Friday, May 10, 2013 at 1:00 PM Eastern time to review the Company's third quarter fiscal 2013 ended March 31, 2013 financial results. Following the Company's prepared remarks there will be a Q&A session. The call can be accessed by interested parties by dialing: 866-318-8617 within the U.S. or 617-399-5136 outside the U.S. and entering passcode 36249137. Participants are asked to call the assigned number approximately 5 minutes before the conference call begins. A replay of the conference call will be available approximately two hours after the call for one month by dialing: 888-286-8010 within the U.S. or 617-801-6888 outside the U.S. and entering passcode 54922770. The conference call will also be available live over the Internet at the investor relations section of Implant Sciences' website at www.implantsciences.com. A replay of the webcast will be available for one month after the call.
About Implant Sciences
Implant Sciences is the leader in next generation Explosives Trace Detection (ETD) technology. In January 2013, the Company became only the third ETD manufacturer, and the sole American-owned company, to receive product approval from the US Transportation Security Administration. Implant Sciences develops, manufactures and sells sophisticated sensors and systems for Security, Safety, and Defense (SS&D) markets. The Company has developed proprietary technologies used in its commercial explosives and narcotics trace detection systems, which ship to a growing number of locations domestically and internationally. Implant Sciences' QS-H150 portable explosives trace detector has received Qualified Anti-Terrorism Technology Designation and, in addition to receiving TSA approval for air cargo screening, the Company's QS-B220 has also received a Developmental Testing & Evaluation (DT&E) Designation by the U.S. Department of Homeland Security under the Support Anti-terrorism by Fostering Effective Technology Act of 2002 (the SAFETY Act). For further details on the Company and its products, please visit the Company's website at www.implantsciences.com.
Safe Harbor Statement
This press release may contain certain "forward-looking statements," as that term is defined in the Private Securities Litigation Reform Act of 1995. Such statements are based on management's current expectations and are subject to risks and uncertainties that could cause the Company's actual results to differ materially from the forward-looking statements. Such risks and uncertainties include, but are not limited to, the risks that we will be required to repay all of our indebtedness to our secured lender, DMRJ Group, by March 31, 2014; if we are unable to satisfy our obligations to DMRJ and to raise additional capital to fund operations, DMRJ may seize our assets and our business may fail; we continue to incur substantial operating losses and may never be profitable; our independent registered public accounting firm has expressed substantial doubt as to our ability to continue as a going concern; our explosives detection products and technologies (including any new products we may develop) may not be accepted by the Transportation Security Administration or by other U.S. or foreign government and law enforcement agencies or commercial consumers of security products; economic, political and other risks associated with international sales and operations could adversely affect our sales; the risk that liability claims related to our products or our handling of hazardous materials could damage our reputation and have a material adverse effect on our financial results; the risk that our business is subject to intense competition; the risks that our markets are subject to rapid technology change and that our success depends on our ability to develop and introduce new products; the risks that we may not be able to retain our management and key employees or to identify, hire and retain additional personnel as needed; the risks that we may not be able to enforce our patent and other intellectual property rights or operate without infringing on the proprietary rights of others: and other risks and uncertainties described in our filings with the Securities and Exchange Commission, including its most recent Forms 10-K, 10-Q and 8-K. Such statements are based on management's current expectations and assumptions which could differ materially from the forward-looking statements.
For further information, you are encouraged to review Implant Sciences' filings with the Securities and Exchange Commission, including its Annual Report on Form 10-K for the period ended June 30, 2012. The Company assumes no obligation to update the information contained in this press release.
Implant Sciences Corporation Condensed Consolidated Balance Sheets March 31, June 30, 2013 2012 (Unaudited) (Audited) ASSETS Current assets: Cash and cash equivalents $ - $ 84,000 Restricted cash and investments 1,295,000 1,274,000 Accounts receivable-trade, net of allowances of $3,000 and $20,000, respectively 746,000 182,000 Inventories, net 2,218,000 3,193,000 Prepaid expenses and other current assets 333,000 809,000 Total current assets 4,592,000 5,542,000 Property and equipment, net 363,000 220,000 Restricted cash and investments 312,000 312,000 Other non-current assets 126,000 162,000 Total assets $ 5,393,000 $ 6,236,000 LIABILITIES AND STOCKHOLDERS' DEFICIT Current liabilities: Senior secured convertible promissory note $ 3,184,000 $ 3,224,000 Second senior secured convertible promissory note 12,000,000 - Third senior secured convertible promissory note 12,000,000 - Senior secured promissory note 1,000,000 1,000,000 Line of credit 9,586,000 26,231,000 Current maturities of obligations under capital lease 57,000 24,000 Payable to Med-Tec 20,000 30,000 Accrued expenses 5,741,000 4,360,000 Accounts payable 2,541,000 2,654,000 Deferred revenue 304,000 1,081,000 Total current liabilities 46,433,000 38,604,000 Long-term liabilities: Long-term obligations under capital lease, net of current maturities 73,000 33,000 Total long-term liabilities 73,000 33,000 Total liabilities 46,506,000 38,637,000 Commitments and contingencies: Stockholders' deficit: Common stock; $0.001 par value; 200,000,000 shares authorized; 55,047,510 and 55,036,965 at March 31, 2013 and $0.10 par value; 50,000,000 shares authorized; 39,163,540 and 39,152,995 at June 30, 2012, shares issued and outstanding, respectively 55,000 3,916,000 Preferred stock; $0.10 par value; 5,000,000 shares authorized Series G Convertible Preferred Stock, no stated value; 650,000 shares authorized, 36,167 shares issued and outstanding at March 31, 2013 and 164,667 shares issued and outstanding at June 30, 2012, respectively (liquidation value $289,000 and $1,317,000, respectively) 60,000 274,000 Series H Convertible Preferred Stock, $0.10 par value; 15,000 shares authorized, no shares issued and outstanding - - Series I Convertible Preferred Stock, $0.10 par value; 15,000 shares authorized, no shares issued and outstanding - - Series J Convertible Preferred Stock, $0.10 par value; 6,000 shares authorized, no shares issued and outstanding - - Additional paid-in capital 100,344,000 83,436,000 Accumulated deficit (141,332,000 ) (119,522,000 ) Deferred compensation (167,000 ) (432,000 ) Treasury stock, 10,545 common shares, at cost (73,000 ) (73,000 ) Total stockholders' deficit (41,113,000 ) (32,401,000 ) Total liabilities and stockholders' deficit $ 5,393,000 $ 6,236,000 Implant Sciences Corporation Condensed Consolidated Statements of Operations (Unaudited) For the Three Months For the Nine Months Ended Ended March 31, March 31, 2013 2012 2013 2012 Revenues $ 1,262,000 $ 686,000 $ 9,615,000 $ 2,854,000 Cost of revenues 959,000 504,000 6,883,000 1,908,000 Gross margin 303,000 182,000 2,732,000 946,000 Operating expenses: Research and development 1,116,000 799,000 3,521,000 2,365,000 Selling, general and administrative 3,191,000 2,258,000 17,115,000 6,053,000 Total operating expenses 4,307,000 3,057,000 20,636,000 8,418,000 Loss from operations (4,004,000 ) (2,875,000 ) (17,904,000 ) (7,472,000 ) Other income (expense), net: Interest income 1,000 1,000 2,000 3,000 Interest expense (1,336,000 ) (1,016,000 ) (3,908,000 ) (2,783,000 ) Total other income (expense), net (1,335,000 ) (1,015,000 ) (3,906,000 ) (2,780,000 ) Net loss $ (5,339,000 ) $ (3,890,000 ) $ (21,810,000 ) $ (10,252,000 ) Net loss per share, basic and diluted $ (0.10 ) $ (0.11 ) $ (0.47 ) $ (0.31 ) Weighted average shares used in computing net loss per common share, basic and diluted 53,747,496 34,474,665 46,731,147 33,162,071 Implant Sciences Corporation Earnings Before Interest, Taxes, Depreciation and Stock-Based Compensation ("Adjusted EBITDA") (Unaudited) For the Three Months For the Nine Months Ended Ended March 31, March 31, 2013 2012 2013 2012 Net loss $ (5,339,000 ) $ (3,890,000 ) $ (21,810,000 ) $ (10,252,000 ) Interest expense, net 1,335,000 1,015,000 3,906,000 2,780,000 Income taxes - - - - Depreciation 15,000 15,000 58,000 54,000 Stock-based compensation 1,532,000 83,000 12,325,000 200,000 Warrants issued to non-employees 147,000 109,000 482,000 325,000 Common stock issued to consultants - 587,000 19,000 1,386,000 Adjusted EBITDA (1) $ (2,310,000 ) $ (2,081,000 ) $ (5,020,000 ) $ (5,507,000 )
http://m.yahoo.com/w/legobpengine/finance/news/implant-sciences-reports-third-quarter-110000903.html?.intl=us&.lang=en-us
$IMSC - Implant Sciences novel approach to sporting events tickets: scan your ticket for admittance and trace explosives:
http://m.yahoo.com/w/legobpengine/finance/news/implant-sciences-sponsors-global-sports-110000330.html?.intl=us&.lang=en-us
$IMSC - Implant Sciences novel approach to sporting events tickets: scan your ticket for admittance and trace explosives:
http://m.yahoo.com/w/legobpengine/finance/news/implant-sciences-sponsors-global-sports-110000330.html?.intl=us&.lang=en-us
$IMSC - Implant Sciences novel approach to sporting events tickets: scan your ticket for admittance and trace explosives:
http://m.yahoo.com/w/legobpengine/finance/news/implant-sciences-sponsors-global-sports-110000330.html?.intl=us&.lang=en-us
Great concept. Scan entry tickets for admittance and explosives.
Great concept. Scan entry
$CONX - Corgenix Medical Volume Alert Triggered
CONX's Trading Volume Exceeded Daily Average by +322.40%
CONX is up $0.0023 or 1.01% to $0.23 on heavy volume that exceeded its daily average by +322.40%. This performance is better than the broader averages as the S&P 500 is down -0.42% on the day.
Please note you will receive only one "Trading Volume Exceeds Daily Average" alert per day for Corgenix Medical Corp.
$CONX - Corgenix Medical Volume Alert Triggered
CONX's Trading Volume Exceeded Daily Average by +322.40%
CONX is up $0.0023 or 1.01% to $0.23 on heavy volume that exceeded its daily average by +322.40%. This performance is better than the broader averages as the S&P 500 is down -0.42% on the day.
Please note you will receive only one "Trading Volume Exceeds Daily Average" alert per day for Corgenix Medical Corp.
$CONX - Corgenix Medical Volume Alert Triggered
CONX's Trading Volume Exceeded Daily Average by +322.40%
CONX is up $0.0023 or 1.01% to $0.23 on heavy volume that exceeded its daily average by +322.40%. This performance is better than the broader averages as the S&P 500 is down -0.42% on the day.
Please note you will receive only one "Trading Volume Exceeds Daily Average" alert per day for Corgenix Medical Corp.
Volume Alert Triggered for Corgenix Medical Corp.
CONX's Trading Volume Exceeded Daily Average by +322.40%
CONX is up $0.0023 or 1.01% to $0.23 on heavy volume that exceeded its daily average by +322.40%. This performance is better than the broader averages as the S&P 500 is down -0.42% on the day.
Please note you will receive only one "Trading Volume Exceeds Daily Average" alert per day for Corgenix Medical Corp.
$IMSC - Implant Sciences hopes to bring explosive detection to Boston Marathon
Boston Business Journal
Apr 23, 2013, 10:24pm EDT Updated: Apr 24, 2013, 8:25am EDT
Implant Sciences CEO Glenn Bolduc said people who make bombs get microscopic traces of explosives on their hands, clothing and on just about anything they touch such as a backpack, luggage or steering wheel. While the traces of military, commercial and homemade explosives are invisible they are detectable with Implant’s Quantum Sniffer, he said.
Patricia ResendeManaging Editor MHT- Boston Business JournalEmail
The Boston Marathon blasts have left runners, spectators and supporters throughout the world wondering what will become of the more than century old Patriots’ Day tradition. President Barack Obama provided one major answer when he said the world will return to race in next year’s Boston Marathon.
Organizing the event, which started in 1897 and brings more than 500,000 spectators to cheer on runners each year, is a monumentous task and that task will be greater if and when additional security measures such as additional cameras, explosive technology and biometric and facial recognition technologies are put in place. Some local tech companies may be part of the Boston Athletic Association’s future security solutions.
Implant Sciences Corp. (OTCQB: IMSC) of Wilmington, Mass., the same community where slain MIT Police Officer Sean Collier was born and raised, said its explosive detection technology could be implemented at the Boston Marathon if the organizers develop chokepoints or organized checkpoints that would force people to funnel through a line in order to get to restricted areas of the Marathon route.
The company’s Quantum Sniffer detects traces of explosives. CEO Glenn Bolduc said if one or both of the alleged bombers came through a chokepoint with a ticket to be scanned, similar to what is done at other sporting events, its explosive detection system would have likely been able to detect traces of the explosives that were put in the pressure cookers that exploded at the finish line killing three and leaving 264 injured. How? According to Bolduc people who make bombs get microscopic traces of explosives on their hands, clothing and on just about anything they touch such as a backpack, luggage or steering wheel. While the traces of military, commercial and homemade explosives are invisible they are detectable with Implant’s sensors and systems, he said.
Implant said it has the capability to put barcode scanners as an adjunct to its system so that the position of the ticket can scan bar codes on the ticket and do a trace detection test. The 72-person company made its mark in the People’s Republic of China when in 2008, China granted Implant a chance to show off its Quantum Sniffer technology at the Beijing Olympic Games.
“Last Monday was a horrible day,” he said. “On that day we said okay, let’s give our equipment to whoever we need to.”
Since then, Bolduc has discussed the technology with government officials, but has not yet approached the Boston Athletics Association.
“We intend to get in front of them in whatever way we have to,” he said.
Other local tech companies with security and explosion detection technologies that could potentially be used is American Science & Engineering Inc. (Nasdaq:ASEI) a Billerica, Mass. supplier of detection technology that detects hidden objects including guns and knives, plastic and liquid explosives and composite weapons.
Just north of AS&E is FLIR Systems Inc.(Nasdaq: FLIR). The Wilsonville, Ore.-based company with offices in North Billerica, Mass. designs and manufactures thermal imaging and radar surveillance systems, chemical and explosive detection products, and sensors for government entities.
Boston Athletics Association Spokesperson Jack Flemming would not say whether the BAA has reached out to or received inquiries from tech companies for services, but said the BAA is very much still working to take care of the runners, volunteers and officials from last week’s race but will address all aspects of next year’s marathon in due time.
“Everything will be addressed but we are needing to devote all of our time and effort to taking care of what happened last Monday,” he said.
$IMSC - Implant Sciences hopes to bring explosive detection to Boston Marathon
Boston Business Journal
Apr 23, 2013, 10:24pm EDT Updated: Apr 24, 2013, 8:25am EDT
Implant Sciences CEO Glenn Bolduc said people who make bombs get microscopic traces of explosives on their hands, clothing and on just about anything they touch such as a backpack, luggage or steering wheel. While the traces of military, commercial and homemade explosives are invisible they are detectable with Implant’s Quantum Sniffer, he said.
Patricia ResendeManaging Editor MHT- Boston Business JournalEmail
The Boston Marathon blasts have left runners, spectators and supporters throughout the world wondering what will become of the more than century old Patriots’ Day tradition. President Barack Obama provided one major answer when he said the world will return to race in next year’s Boston Marathon.
Organizing the event, which started in 1897 and brings more than 500,000 spectators to cheer on runners each year, is a monumentous task and that task will be greater if and when additional security measures such as additional cameras, explosive technology and biometric and facial recognition technologies are put in place. Some local tech companies may be part of the Boston Athletic Association’s future security solutions.
Implant Sciences Corp. (OTCQB: IMSC) of Wilmington, Mass., the same community where slain MIT Police Officer Sean Collier was born and raised, said its explosive detection technology could be implemented at the Boston Marathon if the organizers develop chokepoints or organized checkpoints that would force people to funnel through a line in order to get to restricted areas of the Marathon route.
The company’s Quantum Sniffer detects traces of explosives. CEO Glenn Bolduc said if one or both of the alleged bombers came through a chokepoint with a ticket to be scanned, similar to what is done at other sporting events, its explosive detection system would have likely been able to detect traces of the explosives that were put in the pressure cookers that exploded at the finish line killing three and leaving 264 injured. How? According to Bolduc people who make bombs get microscopic traces of explosives on their hands, clothing and on just about anything they touch such as a backpack, luggage or steering wheel. While the traces of military, commercial and homemade explosives are invisible they are detectable with Implant’s sensors and systems, he said.
Implant said it has the capability to put barcode scanners as an adjunct to its system so that the position of the ticket can scan bar codes on the ticket and do a trace detection test. The 72-person company made its mark in the People’s Republic of China when in 2008, China granted Implant a chance to show off its Quantum Sniffer technology at the Beijing Olympic Games.
“Last Monday was a horrible day,” he said. “On that day we said okay, let’s give our equipment to whoever we need to.”
Since then, Bolduc has discussed the technology with government officials, but has not yet approached the Boston Athletics Association.
“We intend to get in front of them in whatever way we have to,” he said.
Other local tech companies with security and explosion detection technologies that could potentially be used is American Science & Engineering Inc. (Nasdaq:ASEI) a Billerica, Mass. supplier of detection technology that detects hidden objects including guns and knives, plastic and liquid explosives and composite weapons.
Just north of AS&E is FLIR Systems Inc.(Nasdaq: FLIR). The Wilsonville, Ore.-based company with offices in North Billerica, Mass. designs and manufactures thermal imaging and radar surveillance systems, chemical and explosive detection products, and sensors for government entities.
Boston Athletics Association Spokesperson Jack Flemming would not say whether the BAA has reached out to or received inquiries from tech companies for services, but said the BAA is very much still working to take care of the runners, volunteers and officials from last week’s race but will address all aspects of next year’s marathon in due time.
“Everything will be addressed but we are needing to devote all of our time and effort to taking care of what happened last Monday,” he said.
$IMSC - Implant Sciences hopes to bring explosive detection to Boston Marathon
Boston Business Journal
Apr 23, 2013, 10:24pm EDT Updated: Apr 24, 2013, 8:25am EDT
Implant Sciences CEO Glenn Bolduc said people who make bombs get microscopic traces of explosives on their hands, clothing and on just about anything they touch such as a backpack, luggage or steering wheel. While the traces of military, commercial and homemade explosives are invisible they are detectable with Implant’s Quantum Sniffer, he said.
Patricia ResendeManaging Editor MHT- Boston Business JournalEmail
The Boston Marathon blasts have left runners, spectators and supporters throughout the world wondering what will become of the more than century old Patriots’ Day tradition. President Barack Obama provided one major answer when he said the world will return to race in next year’s Boston Marathon.
Organizing the event, which started in 1897 and brings more than 500,000 spectators to cheer on runners each year, is a monumentous task and that task will be greater if and when additional security measures such as additional cameras, explosive technology and biometric and facial recognition technologies are put in place. Some local tech companies may be part of the Boston Athletic Association’s future security solutions.
Implant Sciences Corp. (OTCQB: IMSC) of Wilmington, Mass., the same community where slain MIT Police Officer Sean Collier was born and raised, said its explosive detection technology could be implemented at the Boston Marathon if the organizers develop chokepoints or organized checkpoints that would force people to funnel through a line in order to get to restricted areas of the Marathon route.
The company’s Quantum Sniffer detects traces of explosives. CEO Glenn Bolduc said if one or both of the alleged bombers came through a chokepoint with a ticket to be scanned, similar to what is done at other sporting events, its explosive detection system would have likely been able to detect traces of the explosives that were put in the pressure cookers that exploded at the finish line killing three and leaving 264 injured. How? According to Bolduc people who make bombs get microscopic traces of explosives on their hands, clothing and on just about anything they touch such as a backpack, luggage or steering wheel. While the traces of military, commercial and homemade explosives are invisible they are detectable with Implant’s sensors and systems, he said.
Implant said it has the capability to put barcode scanners as an adjunct to its system so that the position of the ticket can scan bar codes on the ticket and do a trace detection test. The 72-person company made its mark in the People’s Republic of China when in 2008, China granted Implant a chance to show off its Quantum Sniffer technology at the Beijing Olympic Games.
“Last Monday was a horrible day,” he said. “On that day we said okay, let’s give our equipment to whoever we need to.”
Since then, Bolduc has discussed the technology with government officials, but has not yet approached the Boston Athletics Association.
“We intend to get in front of them in whatever way we have to,” he said.
Other local tech companies with security and explosion detection technologies that could potentially be used is American Science & Engineering Inc. (Nasdaq:ASEI) a Billerica, Mass. supplier of detection technology that detects hidden objects including guns and knives, plastic and liquid explosives and composite weapons.
Just north of AS&E is FLIR Systems Inc.(Nasdaq: FLIR). The Wilsonville, Ore.-based company with offices in North Billerica, Mass. designs and manufactures thermal imaging and radar surveillance systems, chemical and explosive detection products, and sensors for government entities.
Boston Athletics Association Spokesperson Jack Flemming would not say whether the BAA has reached out to or received inquiries from tech companies for services, but said the BAA is very much still working to take care of the runners, volunteers and officials from last week’s race but will address all aspects of next year’s marathon in due time.
“Everything will be addressed but we are needing to devote all of our time and effort to taking care of what happened last Monday,” he said.
$IMSC - Implant Sciences nabs US trucking co. order for its recently TSA-approved benchtop explosives trace detector:
Summit NW Selects Implant Sciences' QS-B220 Trace Detection System for Air Cargo Screening
WILMINGTON, MA--(Marketwired - Apr 23, 2013) - Implant Sciences Corporation (OTCQB: IMSC), a high technology supplier of systems and sensors for homeland security and defense markets, today announced it has sold its Quantum Sniffer™ QS-B220 desktop explosives trace detector to Summit NW Corporation. Summit NW, a Portland, Oregon-based trucking company in the northwest with Certified Cargo Screening Facility (CCSF) operations will use the QS-B220 for air cargo screening in its new facility.
Having recently seen the QS-B220 demonstrated at the AirCargo 2013 conference in Las Vegas last month, Summit NW was impressed with its performance and quickly reached a purchase decision. The QS-B220 was approved for air cargo screening by the Transportation Security Administration in January 2013.
Sabine Morris, Vice President of Operations at Summit NW commented, "The QS-B220 offers an impressive combination of advanced technology such as automatic internal calibration, ease-of-use, and low total cost of ownership. Everything we've seen shows that it will be operationally superior to our existing systems. Deploying it in the new facility for our explosives trace detection needs was simply a better business decision."
"The AirCargo conference was our opportunity to showcase the QS-B220 just after having received TSA approval. We received a tremendous amount of interest at the conference, which is now starting to translate into sales. We look forward to working with Summit NW and serving their growing needs," stated Implant Sciences' Vice President of Sales and Marketing, Dr. Darryl Jones.
About the Quantum Sniffer™ QS-B220 Desktop Explosives Trace Detector
The TSA approved Quantum Sniffer QS-B220 uses Ion Mobility Spectrometry (IMS) to rapidly detect and identify trace amounts of a wide variety of military, commercial, and homemade explosives, as well as drugs. With significantly lower maintenance requirements than competing systems, the QS-B220 can be deployed for a much lower total cost of ownership than other approved products. Featuring a radioactive material-free design, push-button maintenance and diagnostics, and internal automatic self-calibration, the QS-B220 brings new levels of performance and convenience to desktop trace detection users with unsurpassed ease of use.
About Implant Sciences
Implant Sciences is the leader in next generation Explosives Trace Detection (ETD) technology. In January 2013, the Company became only the third ETD manufacturer, and the sole American-owned company, to receive product approval from the US Transportation Security Administration. Implant Sciences develops, manufactures and sells sophisticated sensors and systems for Security, Safety, and Defense (SS&D) markets. The Company has developed proprietary technologies used in its commercial explosives and narcotics trace detection systems, which ship to a growing number of locations domestically and internationally. Implant Sciences' QS-H150 portable explosives trace detector has received Qualified Anti-Terrorism Technology Designation and, in addition to receiving TSA approval for air cargo screening, the Company's QS-B220 has also received a Developmental Testing & Evaluation (DT&E) Designation by the U.S. Department of Homeland Security under the Support Anti-terrorism by Fostering Effective Technology Act of 2002 (the SAFETY Act). For further details on the Company and its products, please visit the Company's website at www.implantsciences.com.
Safe Harbor Statement
This press release may contain certain "forward-looking statements," as that term is defined in the Private Securities Litigation Reform Act of 1995. Such statements are based on management's current expectations and are subject to risks and uncertainties that could cause the Company's actual results to differ materially from the forward-looking statements. Such risks and uncertainties include, but are not limited to, the risks that our explosives detection products and technologies (including any new products we may develop) may not be accepted by the Transportation Security Administration or by other U.S. or foreign government and law enforcement agencies or commercial consumers of security products; economic, political and other risks associated with international sales and operations could adversely affect our sales; our business is subject to intense competition and rapid technological change; the risks that our markets are subject to technological change and that our success depends on our ability to develop and introduce new products; and other risks and uncertainties described in our filings with the Securities and Exchange Commission, including its most recent Forms 10-K, 10-Q and 8-K. Such statements are based on management's current expectations and assumptions which could differ materially from the forward-looking statements.
http://m.yahoo.com/w/legobpengine/finance/news/summit-nw-selects-implant-sciences-110000109.html?.intl=us&.lang=en-us
$IMSC - Implant Sciences nabs US trucking co. order for its recently TSA-approved benchtop explosives trace detector:
Summit NW Selects Implant Sciences' QS-B220 Trace Detection System for Air Cargo Screening
WILMINGTON, MA--(Marketwired - Apr 23, 2013) - Implant Sciences Corporation (OTCQB: IMSC), a high technology supplier of systems and sensors for homeland security and defense markets, today announced it has sold its Quantum Sniffer™ QS-B220 desktop explosives trace detector to Summit NW Corporation. Summit NW, a Portland, Oregon-based trucking company in the northwest with Certified Cargo Screening Facility (CCSF) operations will use the QS-B220 for air cargo screening in its new facility.
Having recently seen the QS-B220 demonstrated at the AirCargo 2013 conference in Las Vegas last month, Summit NW was impressed with its performance and quickly reached a purchase decision. The QS-B220 was approved for air cargo screening by the Transportation Security Administration in January 2013.
Sabine Morris, Vice President of Operations at Summit NW commented, "The QS-B220 offers an impressive combination of advanced technology such as automatic internal calibration, ease-of-use, and low total cost of ownership. Everything we've seen shows that it will be operationally superior to our existing systems. Deploying it in the new facility for our explosives trace detection needs was simply a better business decision."
"The AirCargo conference was our opportunity to showcase the QS-B220 just after having received TSA approval. We received a tremendous amount of interest at the conference, which is now starting to translate into sales. We look forward to working with Summit NW and serving their growing needs," stated Implant Sciences' Vice President of Sales and Marketing, Dr. Darryl Jones.
About the Quantum Sniffer™ QS-B220 Desktop Explosives Trace Detector
The TSA approved Quantum Sniffer QS-B220 uses Ion Mobility Spectrometry (IMS) to rapidly detect and identify trace amounts of a wide variety of military, commercial, and homemade explosives, as well as drugs. With significantly lower maintenance requirements than competing systems, the QS-B220 can be deployed for a much lower total cost of ownership than other approved products. Featuring a radioactive material-free design, push-button maintenance and diagnostics, and internal automatic self-calibration, the QS-B220 brings new levels of performance and convenience to desktop trace detection users with unsurpassed ease of use.
About Implant Sciences
Implant Sciences is the leader in next generation Explosives Trace Detection (ETD) technology. In January 2013, the Company became only the third ETD manufacturer, and the sole American-owned company, to receive product approval from the US Transportation Security Administration. Implant Sciences develops, manufactures and sells sophisticated sensors and systems for Security, Safety, and Defense (SS&D) markets. The Company has developed proprietary technologies used in its commercial explosives and narcotics trace detection systems, which ship to a growing number of locations domestically and internationally. Implant Sciences' QS-H150 portable explosives trace detector has received Qualified Anti-Terrorism Technology Designation and, in addition to receiving TSA approval for air cargo screening, the Company's QS-B220 has also received a Developmental Testing & Evaluation (DT&E) Designation by the U.S. Department of Homeland Security under the Support Anti-terrorism by Fostering Effective Technology Act of 2002 (the SAFETY Act). For further details on the Company and its products, please visit the Company's website at www.implantsciences.com.
Safe Harbor Statement
This press release may contain certain "forward-looking statements," as that term is defined in the Private Securities Litigation Reform Act of 1995. Such statements are based on management's current expectations and are subject to risks and uncertainties that could cause the Company's actual results to differ materially from the forward-looking statements. Such risks and uncertainties include, but are not limited to, the risks that our explosives detection products and technologies (including any new products we may develop) may not be accepted by the Transportation Security Administration or by other U.S. or foreign government and law enforcement agencies or commercial consumers of security products; economic, political and other risks associated with international sales and operations could adversely affect our sales; our business is subject to intense competition and rapid technological change; the risks that our markets are subject to technological change and that our success depends on our ability to develop and introduce new products; and other risks and uncertainties described in our filings with the Securities and Exchange Commission, including its most recent Forms 10-K, 10-Q and 8-K. Such statements are based on management's current expectations and assumptions which could differ materially from the forward-looking statements.
http://m.yahoo.com/w/legobpengine/finance/news/summit-nw-selects-implant-sciences-110000109.html?.intl=us&.lang=en-us
$IMSC - Implant Sciences nabs US trucking co. order for its recently TSA-approved benchtop explosives trace detector:
Summit NW Selects Implant Sciences' QS-B220 Trace Detection System for Air Cargo Screening
WILMINGTON, MA--(Marketwired - Apr 23, 2013) - Implant Sciences Corporation (OTCQB: IMSC), a high technology supplier of systems and sensors for homeland security and defense markets, today announced it has sold its Quantum Sniffer™ QS-B220 desktop explosives trace detector to Summit NW Corporation. Summit NW, a Portland, Oregon-based trucking company in the northwest with Certified Cargo Screening Facility (CCSF) operations will use the QS-B220 for air cargo screening in its new facility.
Having recently seen the QS-B220 demonstrated at the AirCargo 2013 conference in Las Vegas last month, Summit NW was impressed with its performance and quickly reached a purchase decision. The QS-B220 was approved for air cargo screening by the Transportation Security Administration in January 2013.
Sabine Morris, Vice President of Operations at Summit NW commented, "The QS-B220 offers an impressive combination of advanced technology such as automatic internal calibration, ease-of-use, and low total cost of ownership. Everything we've seen shows that it will be operationally superior to our existing systems. Deploying it in the new facility for our explosives trace detection needs was simply a better business decision."
"The AirCargo conference was our opportunity to showcase the QS-B220 just after having received TSA approval. We received a tremendous amount of interest at the conference, which is now starting to translate into sales. We look forward to working with Summit NW and serving their growing needs," stated Implant Sciences' Vice President of Sales and Marketing, Dr. Darryl Jones.
About the Quantum Sniffer™ QS-B220 Desktop Explosives Trace Detector
The TSA approved Quantum Sniffer QS-B220 uses Ion Mobility Spectrometry (IMS) to rapidly detect and identify trace amounts of a wide variety of military, commercial, and homemade explosives, as well as drugs. With significantly lower maintenance requirements than competing systems, the QS-B220 can be deployed for a much lower total cost of ownership than other approved products. Featuring a radioactive material-free design, push-button maintenance and diagnostics, and internal automatic self-calibration, the QS-B220 brings new levels of performance and convenience to desktop trace detection users with unsurpassed ease of use.
About Implant Sciences
Implant Sciences is the leader in next generation Explosives Trace Detection (ETD) technology. In January 2013, the Company became only the third ETD manufacturer, and the sole American-owned company, to receive product approval from the US Transportation Security Administration. Implant Sciences develops, manufactures and sells sophisticated sensors and systems for Security, Safety, and Defense (SS&D) markets. The Company has developed proprietary technologies used in its commercial explosives and narcotics trace detection systems, which ship to a growing number of locations domestically and internationally. Implant Sciences' QS-H150 portable explosives trace detector has received Qualified Anti-Terrorism Technology Designation and, in addition to receiving TSA approval for air cargo screening, the Company's QS-B220 has also received a Developmental Testing & Evaluation (DT&E) Designation by the U.S. Department of Homeland Security under the Support Anti-terrorism by Fostering Effective Technology Act of 2002 (the SAFETY Act). For further details on the Company and its products, please visit the Company's website at www.implantsciences.com.
Safe Harbor Statement
This press release may contain certain "forward-looking statements," as that term is defined in the Private Securities Litigation Reform Act of 1995. Such statements are based on management's current expectations and are subject to risks and uncertainties that could cause the Company's actual results to differ materially from the forward-looking statements. Such risks and uncertainties include, but are not limited to, the risks that our explosives detection products and technologies (including any new products we may develop) may not be accepted by the Transportation Security Administration or by other U.S. or foreign government and law enforcement agencies or commercial consumers of security products; economic, political and other risks associated with international sales and operations could adversely affect our sales; our business is subject to intense competition and rapid technological change; the risks that our markets are subject to technological change and that our success depends on our ability to develop and introduce new products; and other risks and uncertainties described in our filings with the Securities and Exchange Commission, including its most recent Forms 10-K, 10-Q and 8-K. Such statements are based on management's current expectations and assumptions which could differ materially from the forward-looking statements.
http://m.yahoo.com/w/legobpengine/finance/news/summit-nw-selects-implant-sciences-110000109.html?.intl=us&.lang=en-us
$CONX - Corgenix Medical Announces Initial Phase Completion of a Multi-Year Pivotal Clinical Trial of Rapid Test for Lassa Fever
First-to-market, point-of-care rapid diagnostic test based on recombinant antigen technology for the detection of Lassa viral hemorrhagic fever filed for CE Marking
DENVER--(BUSINESS WIRE)-- April 22, 2013
Corgenix Medical Corporation (CONX), a worldwide developer and marketer of diagnostic test kits for important cardiovascular and liver biomarkers as well as innovative products for emerging pathogens and lethal viruses, today announced completion of a major phase of the collaborative effort to combat important viral diseases.
The multi-year study, conducted primarily at the Kenema Government Hospital in Kenema, Sierra Leone, is investigating the clinical utility of several diagnostic products developed by Corgenix and other members of the Viral Hemorrhagic Fever Consortium (VHFC), a collaboration of academic and industry members headed by Tulane University. In this major study, scientists are using Consortium-developed recombinant antigen-based tests to evaluate patients presenting with clinical symptoms of Lassa hemorrhagic fever. Lassa fever is a dangerous, often fatal disease common to much of West Africa and is considered to be a bioterror threat throughout the world.
“We are very pleased to successfully complete the initial clinical testing phase of our Lassa product development program,” said Douglass Simpson, Corgenix President and CEO. “The first product, a rapid 15-minute test that detects Lassa virus antigen in blood, demonstrated outstanding clinical performance in our studies. It showed its potential to dramatically change the way this disease is detected and treated, with healthcare workers now able to diagnose Lassa infections in the early acute stage, leading to earlier treatment and potentially saving many lives.”
Corgenix said that the first of the products used in the studies, the ReLASVTM Antigen Rapid Test, will be advanced into full commercialization this year. Corgenix has submitted the study results to secure CE Marking, a regulatory requirement in Europe and many other countries.
Lassa virus is a category-A select agent, requiring biosafety level 4 (BSL-4) laboratories. It poses a high individual risk of aerosol-transmitted laboratory infections that cause severe to fatal disease in humans for which vaccines or other treatments are not available. Lassa virus causes Lassa hemorrhagic fever characterized by bleeding and coagulation abnormalities, with mortality rates reported exceeding 25 percent, with children and pregnant women being the highest risk groups. This new rapid test serves the urgent need for screening of suspected Lassa fever cases in the early stages of infection when patients exhibit milder symptoms that can lead to misdiagnosis.
Robert Garry, Ph.D., Professor of Microbiology and Immunology at the Tulane University School of Medicine and Principal Investigator of the Consortium, added, “We have been very pleased with the results of our collaborative effort over the past years. The diagnostic products for Lassa have shown to be remarkably effective in clinical settings in Africa and will have a meaningful impact on the health care in that part of the world, and will also fill a critical gap in bioterrorism defense.”
The Consortium will continue its research activities in Sierra Leone, Nigeria and other West African countries, advancing other laboratory tests for Lassa and other tropical viral diseases. The research will also assess the potential impact these new generation diagnostic products have on significantly reducing mortality rates through earlier treatment.
The Consortium Lassa products have not yet been cleared for use in the United States by the U.S. Food and Drug Administration (FDA).
About Corgenix Medical Corporation
Corgenix is a leader in the development and manufacturing of specialized diagnostic kits for immunology disorders, vascular diseases and bone and joint disorders, including the world’s only non-blood-based test for aspirin effect, and is active in the development of technology and products for emerging pathogens such as the viral hemorrhagic fevers. Corgenix diagnostic products are commercialized for use in clinical laboratories throughout the world. The company currently sells over 50 diagnostic products through a global distribution network and has significant experience in product submissions to the FDA and other worldwide regulatory authorities. Additionally Corgenix contract develops and manufactures products for key medical and life science companies in state-of-the-art facilities in Colorado. The company operates under a Quality Management System that is ISO 13485:2012 certified and compliant with FDA regulations. More information is available at www.corgenix.com.
About the Viral Hemorrhagic Fever Consortium
The Viral Hemorrhagic Fever Consortium was established in 2010 as a result of several multi-year grants and contracts awarded to Tulane University by the National Institute of Allergy and Infectious Diseases (NIAID), part of the National Institutes of Health (NIH), to support Tulane's ongoing efforts to treat and prevent Lassa fever. The goal of the Consortium is to understand mechanisms related to the human immune response to Lassa virus infection. Specifically, by understanding what parts of the virus are recognized by the immune system, scientists can better understand mechanisms of antibody-mediated protection or pathogenesis in humans with Lassa fever. Consortium efforts have focused on the development of new recombinant proteins for Lassa virus diagnostic products, which have shown to be extremely effective in clinical settings in Africa. This progress is allowing a transition of efforts towards instituting better treatment of affected individuals and ultimately prevention of Lassa fever altogether. The Consortium is a collaboration between Tulane, The Scripps Research Institute, Broad Institute, Harvard University, University of California at San Diego, University of Texas Medical Branch, Autoimmune Technologies LLC, Corgenix Medical Corporation, Vybion, Inc., the Kenema Government Hospital (Sierra Leone), the Irrua Specialist Teaching Hospital (Nigeria) and various other partners in West Africa. More information is available at www.vhfc.org.
The development and clinical testing of the Lassa products has been funded by NIAID to develop recombinant proteins for Lassa virus. The information contained in this press release does not necessarily reflect the position or the policy of the U.S. Government, and no official endorsement should be inferred.
Contact:
Company Contact:
Corgenix Medical Corp.
William Critchfield, Senior VP Operations and Finance and CFO
Phone: 303-453-8903
Email: wcritchfield@corgenix.com
or
Media Contact:
Armada Medical Marketing
Dan Snyders, Vice President, Public Relations Supervisor
Phone: 303-623-1190 x 230
Email: dan@armadamedical.com
$CONX - Corgenix Medical Announces Initial Phase Completion of a Multi-Year Pivotal Clinical Trial of Rapid Test for Lassa Fever
First-to-market, point-of-care rapid diagnostic test based on recombinant antigen technology for the detection of Lassa viral hemorrhagic fever filed for CE Marking
DENVER--(BUSINESS WIRE)-- April 22, 2013
Corgenix Medical Corporation (CONX), a worldwide developer and marketer of diagnostic test kits for important cardiovascular and liver biomarkers as well as innovative products for emerging pathogens and lethal viruses, today announced completion of a major phase of the collaborative effort to combat important viral diseases.
The multi-year study, conducted primarily at the Kenema Government Hospital in Kenema, Sierra Leone, is investigating the clinical utility of several diagnostic products developed by Corgenix and other members of the Viral Hemorrhagic Fever Consortium (VHFC), a collaboration of academic and industry members headed by Tulane University. In this major study, scientists are using Consortium-developed recombinant antigen-based tests to evaluate patients presenting with clinical symptoms of Lassa hemorrhagic fever. Lassa fever is a dangerous, often fatal disease common to much of West Africa and is considered to be a bioterror threat throughout the world.
“We are very pleased to successfully complete the initial clinical testing phase of our Lassa product development program,” said Douglass Simpson, Corgenix President and CEO. “The first product, a rapid 15-minute test that detects Lassa virus antigen in blood, demonstrated outstanding clinical performance in our studies. It showed its potential to dramatically change the way this disease is detected and treated, with healthcare workers now able to diagnose Lassa infections in the early acute stage, leading to earlier treatment and potentially saving many lives.”
Corgenix said that the first of the products used in the studies, the ReLASVTM Antigen Rapid Test, will be advanced into full commercialization this year. Corgenix has submitted the study results to secure CE Marking, a regulatory requirement in Europe and many other countries.
Lassa virus is a category-A select agent, requiring biosafety level 4 (BSL-4) laboratories. It poses a high individual risk of aerosol-transmitted laboratory infections that cause severe to fatal disease in humans for which vaccines or other treatments are not available. Lassa virus causes Lassa hemorrhagic fever characterized by bleeding and coagulation abnormalities, with mortality rates reported exceeding 25 percent, with children and pregnant women being the highest risk groups. This new rapid test serves the urgent need for screening of suspected Lassa fever cases in the early stages of infection when patients exhibit milder symptoms that can lead to misdiagnosis.
Robert Garry, Ph.D., Professor of Microbiology and Immunology at the Tulane University School of Medicine and Principal Investigator of the Consortium, added, “We have been very pleased with the results of our collaborative effort over the past years. The diagnostic products for Lassa have shown to be remarkably effective in clinical settings in Africa and will have a meaningful impact on the health care in that part of the world, and will also fill a critical gap in bioterrorism defense.”
The Consortium will continue its research activities in Sierra Leone, Nigeria and other West African countries, advancing other laboratory tests for Lassa and other tropical viral diseases. The research will also assess the potential impact these new generation diagnostic products have on significantly reducing mortality rates through earlier treatment.
The Consortium Lassa products have not yet been cleared for use in the United States by the U.S. Food and Drug Administration (FDA).
About Corgenix Medical Corporation
Corgenix is a leader in the development and manufacturing of specialized diagnostic kits for immunology disorders, vascular diseases and bone and joint disorders, including the world’s only non-blood-based test for aspirin effect, and is active in the development of technology and products for emerging pathogens such as the viral hemorrhagic fevers. Corgenix diagnostic products are commercialized for use in clinical laboratories throughout the world. The company currently sells over 50 diagnostic products through a global distribution network and has significant experience in product submissions to the FDA and other worldwide regulatory authorities. Additionally Corgenix contract develops and manufactures products for key medical and life science companies in state-of-the-art facilities in Colorado. The company operates under a Quality Management System that is ISO 13485:2012 certified and compliant with FDA regulations. More information is available at www.corgenix.com.
About the Viral Hemorrhagic Fever Consortium
The Viral Hemorrhagic Fever Consortium was established in 2010 as a result of several multi-year grants and contracts awarded to Tulane University by the National Institute of Allergy and Infectious Diseases (NIAID), part of the National Institutes of Health (NIH), to support Tulane's ongoing efforts to treat and prevent Lassa fever. The goal of the Consortium is to understand mechanisms related to the human immune response to Lassa virus infection. Specifically, by understanding what parts of the virus are recognized by the immune system, scientists can better understand mechanisms of antibody-mediated protection or pathogenesis in humans with Lassa fever. Consortium efforts have focused on the development of new recombinant proteins for Lassa virus diagnostic products, which have shown to be extremely effective in clinical settings in Africa. This progress is allowing a transition of efforts towards instituting better treatment of affected individuals and ultimately prevention of Lassa fever altogether. The Consortium is a collaboration between Tulane, The Scripps Research Institute, Broad Institute, Harvard University, University of California at San Diego, University of Texas Medical Branch, Autoimmune Technologies LLC, Corgenix Medical Corporation, Vybion, Inc., the Kenema Government Hospital (Sierra Leone), the Irrua Specialist Teaching Hospital (Nigeria) and various other partners in West Africa. More information is available at www.vhfc.org.
The development and clinical testing of the Lassa products has been funded by NIAID to develop recombinant proteins for Lassa virus. The information contained in this press release does not necessarily reflect the position or the policy of the U.S. Government, and no official endorsement should be inferred.
Contact:
Company Contact:
Corgenix Medical Corp.
William Critchfield, Senior VP Operations and Finance and CFO
Phone: 303-453-8903
Email: wcritchfield@corgenix.com
or
Media Contact:
Armada Medical Marketing
Dan Snyders, Vice President, Public Relations Supervisor
Phone: 303-623-1190 x 230
Email: dan@armadamedical.com
$CONX - Corgenix Medical Announces Initial Phase Completion of a Multi-Year Pivotal Clinical Trial of Rapid Test for Lassa Fever
First-to-market, point-of-care rapid diagnostic test based on recombinant antigen technology for the detection of Lassa viral hemorrhagic fever filed for CE Marking
DENVER--(BUSINESS WIRE)-- April 22, 2013
Corgenix Medical Corporation (CONX), a worldwide developer and marketer of diagnostic test kits for important cardiovascular and liver biomarkers as well as innovative products for emerging pathogens and lethal viruses, today announced completion of a major phase of the collaborative effort to combat important viral diseases.
The multi-year study, conducted primarily at the Kenema Government Hospital in Kenema, Sierra Leone, is investigating the clinical utility of several diagnostic products developed by Corgenix and other members of the Viral Hemorrhagic Fever Consortium (VHFC), a collaboration of academic and industry members headed by Tulane University. In this major study, scientists are using Consortium-developed recombinant antigen-based tests to evaluate patients presenting with clinical symptoms of Lassa hemorrhagic fever. Lassa fever is a dangerous, often fatal disease common to much of West Africa and is considered to be a bioterror threat throughout the world.
“We are very pleased to successfully complete the initial clinical testing phase of our Lassa product development program,” said Douglass Simpson, Corgenix President and CEO. “The first product, a rapid 15-minute test that detects Lassa virus antigen in blood, demonstrated outstanding clinical performance in our studies. It showed its potential to dramatically change the way this disease is detected and treated, with healthcare workers now able to diagnose Lassa infections in the early acute stage, leading to earlier treatment and potentially saving many lives.”
Corgenix said that the first of the products used in the studies, the ReLASVTM Antigen Rapid Test, will be advanced into full commercialization this year. Corgenix has submitted the study results to secure CE Marking, a regulatory requirement in Europe and many other countries.
Lassa virus is a category-A select agent, requiring biosafety level 4 (BSL-4) laboratories. It poses a high individual risk of aerosol-transmitted laboratory infections that cause severe to fatal disease in humans for which vaccines or other treatments are not available. Lassa virus causes Lassa hemorrhagic fever characterized by bleeding and coagulation abnormalities, with mortality rates reported exceeding 25 percent, with children and pregnant women being the highest risk groups. This new rapid test serves the urgent need for screening of suspected Lassa fever cases in the early stages of infection when patients exhibit milder symptoms that can lead to misdiagnosis.
Robert Garry, Ph.D., Professor of Microbiology and Immunology at the Tulane University School of Medicine and Principal Investigator of the Consortium, added, “We have been very pleased with the results of our collaborative effort over the past years. The diagnostic products for Lassa have shown to be remarkably effective in clinical settings in Africa and will have a meaningful impact on the health care in that part of the world, and will also fill a critical gap in bioterrorism defense.”
The Consortium will continue its research activities in Sierra Leone, Nigeria and other West African countries, advancing other laboratory tests for Lassa and other tropical viral diseases. The research will also assess the potential impact these new generation diagnostic products have on significantly reducing mortality rates through earlier treatment.
The Consortium Lassa products have not yet been cleared for use in the United States by the U.S. Food and Drug Administration (FDA).
About Corgenix Medical Corporation
Corgenix is a leader in the development and manufacturing of specialized diagnostic kits for immunology disorders, vascular diseases and bone and joint disorders, including the world’s only non-blood-based test for aspirin effect, and is active in the development of technology and products for emerging pathogens such as the viral hemorrhagic fevers. Corgenix diagnostic products are commercialized for use in clinical laboratories throughout the world. The company currently sells over 50 diagnostic products through a global distribution network and has significant experience in product submissions to the FDA and other worldwide regulatory authorities. Additionally Corgenix contract develops and manufactures products for key medical and life science companies in state-of-the-art facilities in Colorado. The company operates under a Quality Management System that is ISO 13485:2012 certified and compliant with FDA regulations. More information is available at www.corgenix.com.
About the Viral Hemorrhagic Fever Consortium
The Viral Hemorrhagic Fever Consortium was established in 2010 as a result of several multi-year grants and contracts awarded to Tulane University by the National Institute of Allergy and Infectious Diseases (NIAID), part of the National Institutes of Health (NIH), to support Tulane's ongoing efforts to treat and prevent Lassa fever. The goal of the Consortium is to understand mechanisms related to the human immune response to Lassa virus infection. Specifically, by understanding what parts of the virus are recognized by the immune system, scientists can better understand mechanisms of antibody-mediated protection or pathogenesis in humans with Lassa fever. Consortium efforts have focused on the development of new recombinant proteins for Lassa virus diagnostic products, which have shown to be extremely effective in clinical settings in Africa. This progress is allowing a transition of efforts towards instituting better treatment of affected individuals and ultimately prevention of Lassa fever altogether. The Consortium is a collaboration between Tulane, The Scripps Research Institute, Broad Institute, Harvard University, University of California at San Diego, University of Texas Medical Branch, Autoimmune Technologies LLC, Corgenix Medical Corporation, Vybion, Inc., the Kenema Government Hospital (Sierra Leone), the Irrua Specialist Teaching Hospital (Nigeria) and various other partners in West Africa. More information is available at www.vhfc.org.
The development and clinical testing of the Lassa products has been funded by NIAID to develop recombinant proteins for Lassa virus. The information contained in this press release does not necessarily reflect the position or the policy of the U.S. Government, and no official endorsement should be inferred.
Contact:
Company Contact:
Corgenix Medical Corp.
William Critchfield, Senior VP Operations and Finance and CFO
Phone: 303-453-8903
Email: wcritchfield@corgenix.com
or
Media Contact:
Armada Medical Marketing
Dan Snyders, Vice President, Public Relations Supervisor
Phone: 303-623-1190 x 230
Email: dan@armadamedical.com
Corgenix Announces Initial Phase Completion of a Multi-Year Pivotal Clinical Trial of Rapid Test for Lassa Fever
First-to-market, point-of-care rapid diagnostic test based on recombinant antigen technology for the detection of Lassa viral hemorrhagic fever filed for CE Marking
DENVER--(BUSINESS WIRE)-- April 22, 2013
Corgenix Medical Corporation (CONX), a worldwide developer and marketer of diagnostic test kits for important cardiovascular and liver biomarkers as well as innovative products for emerging pathogens and lethal viruses, today announced completion of a major phase of the collaborative effort to combat important viral diseases.
The multi-year study, conducted primarily at the Kenema Government Hospital in Kenema, Sierra Leone, is investigating the clinical utility of several diagnostic products developed by Corgenix and other members of the Viral Hemorrhagic Fever Consortium (VHFC), a collaboration of academic and industry members headed by Tulane University. In this major study, scientists are using Consortium-developed recombinant antigen-based tests to evaluate patients presenting with clinical symptoms of Lassa hemorrhagic fever. Lassa fever is a dangerous, often fatal disease common to much of West Africa and is considered to be a bioterror threat throughout the world.
“We are very pleased to successfully complete the initial clinical testing phase of our Lassa product development program,” said Douglass Simpson, Corgenix President and CEO. “The first product, a rapid 15-minute test that detects Lassa virus antigen in blood, demonstrated outstanding clinical performance in our studies. It showed its potential to dramatically change the way this disease is detected and treated, with healthcare workers now able to diagnose Lassa infections in the early acute stage, leading to earlier treatment and potentially saving many lives.”
Corgenix said that the first of the products used in the studies, the ReLASVTM Antigen Rapid Test, will be advanced into full commercialization this year. Corgenix has submitted the study results to secure CE Marking, a regulatory requirement in Europe and many other countries.
Lassa virus is a category-A select agent, requiring biosafety level 4 (BSL-4) laboratories. It poses a high individual risk of aerosol-transmitted laboratory infections that cause severe to fatal disease in humans for which vaccines or other treatments are not available. Lassa virus causes Lassa hemorrhagic fever characterized by bleeding and coagulation abnormalities, with mortality rates reported exceeding 25 percent, with children and pregnant women being the highest risk groups. This new rapid test serves the urgent need for screening of suspected Lassa fever cases in the early stages of infection when patients exhibit milder symptoms that can lead to misdiagnosis.
Robert Garry, Ph.D., Professor of Microbiology and Immunology at the Tulane University School of Medicine and Principal Investigator of the Consortium, added, “We have been very pleased with the results of our collaborative effort over the past years. The diagnostic products for Lassa have shown to be remarkably effective in clinical settings in Africa and will have a meaningful impact on the health care in that part of the world, and will also fill a critical gap in bioterrorism defense.”
The Consortium will continue its research activities in Sierra Leone, Nigeria and other West African countries, advancing other laboratory tests for Lassa and other tropical viral diseases. The research will also assess the potential impact these new generation diagnostic products have on significantly reducing mortality rates through earlier treatment.
The Consortium Lassa products have not yet been cleared for use in the United States by the U.S. Food and Drug Administration (FDA).
About Corgenix Medical Corporation
Corgenix is a leader in the development and manufacturing of specialized diagnostic kits for immunology disorders, vascular diseases and bone and joint disorders, including the world’s only non-blood-based test for aspirin effect, and is active in the development of technology and products for emerging pathogens such as the viral hemorrhagic fevers. Corgenix diagnostic products are commercialized for use in clinical laboratories throughout the world. The company currently sells over 50 diagnostic products through a global distribution network and has significant experience in product submissions to the FDA and other worldwide regulatory authorities. Additionally Corgenix contract develops and manufactures products for key medical and life science companies in state-of-the-art facilities in Colorado. The company operates under a Quality Management System that is ISO 13485:2012 certified and compliant with FDA regulations. More information is available at www.corgenix.com.
About the Viral Hemorrhagic Fever Consortium
The Viral Hemorrhagic Fever Consortium was established in 2010 as a result of several multi-year grants and contracts awarded to Tulane University by the National Institute of Allergy and Infectious Diseases (NIAID), part of the National Institutes of Health (NIH), to support Tulane's ongoing efforts to treat and prevent Lassa fever. The goal of the Consortium is to understand mechanisms related to the human immune response to Lassa virus infection. Specifically, by understanding what parts of the virus are recognized by the immune system, scientists can better understand mechanisms of antibody-mediated protection or pathogenesis in humans with Lassa fever. Consortium efforts have focused on the development of new recombinant proteins for Lassa virus diagnostic products, which have shown to be extremely effective in clinical settings in Africa. This progress is allowing a transition of efforts towards instituting better treatment of affected individuals and ultimately prevention of Lassa fever altogether. The Consortium is a collaboration between Tulane, The Scripps Research Institute, Broad Institute, Harvard University, University of California at San Diego, University of Texas Medical Branch, Autoimmune Technologies LLC, Corgenix Medical Corporation, Vybion, Inc., the Kenema Government Hospital (Sierra Leone), the Irrua Specialist Teaching Hospital (Nigeria) and various other partners in West Africa. More information is available at www.vhfc.org.
The development and clinical testing of the Lassa products has been funded by NIAID to develop recombinant proteins for Lassa virus. The information contained in this press release does not necessarily reflect the position or the policy of the U.S. Government, and no official endorsement should be inferred.
Contact:
Company Contact:
Corgenix Medical Corp.
William Critchfield, Senior VP Operations and Finance and CFO
Phone: 303-453-8903
Email: wcritchfield@corgenix.com
or
Media Contact:
Armada Medical Marketing
Dan Snyders, Vice President, Public Relations Supervisor
Phone: 303-623-1190 x 230
Email: dan@armadamedical.com
Implant Sciences' Quantum Sniffer Explosives and Drugs Trace Detection Systems to Be Exhibited at 11th Annual Expo Seguridad Mexico
WILMINGTON, MA--(Marketwired - Apr 22, 2013) - Implant Sciences Corporation (OTCQB: IMSC), a high technology supplier of systems and sensors for homeland security and defense markets, today announced that it will exhibit its TSA-Approved Quantum Sniffer™ QS-B220 desktop explosives and drugs trace detector and its Quantum Sniffer™ QS-H150 handheld explosives trace detector at Expo Seguridad México from April 23th through 25th, at the Banamex Center in Mexico City, Mexico. Implant Sciences will be showing its systems in booth 3501 of local security equipment supplier, Share y Asociados SA de CV.
Expo Seguridad attracts more than 12,500 qualified visitors from nearly 30 Central American and Caribbean nations. Over the past few years, international keynote speakers have come to the event to present on topics such as convergence, urban security and global security trends. (http://www.exposeguridadmexico.com)
"Implant Sciences' equipment addresses a variety of Central American security needs. According to a study published by the US Department of Commerce, Mexico alone represents over a $4 billion security market. This show is strategically important as we continue to expand the presence of our explosives and drugs trace detection systems within the region," stated Implant Sciences' President and CEO Glenn D. Bolduc.
About the Quantum Sniffer™ QS-B220 Desktop Explosives and Drugs Trace Detector
The TSA approved Quantum Sniffer QS-B220 uses Ion Mobility Spectrometry (IMS) to rapidly detect and identify trace amounts of a wide variety of military, commercial, and homemade explosives, as well as drugs. With significantly lower maintenance requirements than competing systems, the QS-B220 can be deployed for a much lower total cost of ownership than other approved products. Featuring a radioactive material-free design, push-button maintenance and diagnostics, and internal automatic self-calibration, the QS-B220 brings new levels of performance and convenience to desktop trace detection users with unsurpassed ease of use.
About the Quantum Sniffer™ QS-H150 Handheld Explosives Trace Detector
The Quantum Sniffer QS-H150 utilizes Ion Mobility Spectrometry (IMS) technology, providing fast, accurate detection of trace amounts of a wide variety of military, commercial, and homemade explosives. Built with no radioactive materials and featuring a low-maintenance, self-calibrating, and self-clearing design, the QS-H150 provides very high levels of operational availability. The QS-H150 has been proven to perform well in a wide variety of temperatures and challenging environments, from humid jungles to dry, sand swept deserts.
About Implant Sciences
Implant Sciences is the leader in next generation Explosives Trace Detection (ETD) technology. In January 2013, the Company became only the third ETD manufacturer, and the sole American-owned company, to receive product approval from the US Transportation Security Administration. Implant Sciences develops, manufactures and sells sophisticated sensors and systems for Security, Safety, and Defense (SS&D) markets. The Company has developed proprietary technologies used in its commercial explosives and narcotics trace detection systems, which ship to a growing number of locations domestically and internationally. Implant Sciences' QS-H150 portable explosives trace detector has received Qualified Anti-Terrorism Technology Designation and, in addition to receiving TSA approval for air cargo screening, the Company's QS-B220 has also received a Developmental Testing & Evaluation (DT&E) Designation by the U.S. Department of Homeland Security under the Support Anti-terrorism by Fostering Effective Technology Act of 2002 (the SAFETY Act). For further details on the Company and its products, please visit the Company's website at www.implantsciences.com.
Safe Harbor Statement
This press release may contain certain "forward-looking statements," as that term is defined in the Private Securities Litigation Reform Act of 1995. Such statements are based on management's current expectations and are subject to risks and uncertainties that could cause the Company's actual results to differ materially from the forward-looking statements. Such risks and uncertainties include, but are not limited to, the risks that our explosives detection products and technologies (including any new products we may develop) may not be accepted by the Transportation Security Administration or by other U.S. or foreign government and law enforcement agencies or commercial consumers of security products; economic, political and other risks associated with international sales and operations could adversely affect our sales; our business is subject to intense competition and rapid technological change; the risks that our markets are subject to technological change and that our success depends on our ability to develop and introduce new products; and other risks and uncertainties described in our filings with the Securities and Exchange Commission, including its most recent Forms 10-K, 10-Q and 8-K. Such statements are based on management's current expectations and assumptions which could differ materially from the forward-looking statements.u
http://m.yahoo.com/w/legobpengine/finance/news/implant-sciences-quantum-sniffer-explosives-110000868.html?.intl=us&.lang=en-us
$IMSC - Implant Sciences explosive trace detectors being exhibited in Mexico City security conference this week:
Implant Sciences' Quantum Sniffer Explosives and Drugs Trace Detection Systems to Be Exhibited at 11th Annual Expo Seguridad Mexico
WILMINGTON, MA--(Marketwired - Apr 22, 2013) - Implant Sciences Corporation (OTCQB: IMSC), a high technology supplier of systems and sensors for homeland security and defense markets, today announced that it will exhibit its TSA-Approved Quantum Sniffer™ QS-B220 desktop explosives and drugs trace detector and its Quantum Sniffer™ QS-H150 handheld explosives trace detector at Expo Seguridad México from April 23th through 25th, at the Banamex Center in Mexico City, Mexico. Implant Sciences will be showing its systems in booth 3501 of local security equipment supplier, Share y Asociados SA de CV.
Expo Seguridad attracts more than 12,500 qualified visitors from nearly 30 Central American and Caribbean nations. Over the past few years, international keynote speakers have come to the event to present on topics such as convergence, urban security and global security trends. (http://www.exposeguridadmexico.com)
"Implant Sciences' equipment addresses a variety of Central American security needs. According to a study published by the US Department of Commerce, Mexico alone represents over a $4 billion security market. This show is strategically important as we continue to expand the presence of our explosives and drugs trace detection systems within the region," stated Implant Sciences' President and CEO Glenn D. Bolduc.
About the Quantum Sniffer™ QS-B220 Desktop Explosives and Drugs Trace Detector
The TSA approved Quantum Sniffer QS-B220 uses Ion Mobility Spectrometry (IMS) to rapidly detect and identify trace amounts of a wide variety of military, commercial, and homemade explosives, as well as drugs. With significantly lower maintenance requirements than competing systems, the QS-B220 can be deployed for a much lower total cost of ownership than other approved products. Featuring a radioactive material-free design, push-button maintenance and diagnostics, and internal automatic self-calibration, the QS-B220 brings new levels of performance and convenience to desktop trace detection users with unsurpassed ease of use.
About the Quantum Sniffer™ QS-H150 Handheld Explosives Trace Detector
The Quantum Sniffer QS-H150 utilizes Ion Mobility Spectrometry (IMS) technology, providing fast, accurate detection of trace amounts of a wide variety of military, commercial, and homemade explosives. Built with no radioactive materials and featuring a low-maintenance, self-calibrating, and self-clearing design, the QS-H150 provides very high levels of operational availability. The QS-H150 has been proven to perform well in a wide variety of temperatures and challenging environments, from humid jungles to dry, sand swept deserts.
About Implant Sciences
Implant Sciences is the leader in next generation Explosives Trace Detection (ETD) technology. In January 2013, the Company became only the third ETD manufacturer, and the sole American-owned company, to receive product approval from the US Transportation Security Administration. Implant Sciences develops, manufactures and sells sophisticated sensors and systems for Security, Safety, and Defense (SS&D) markets. The Company has developed proprietary technologies used in its commercial explosives and narcotics trace detection systems, which ship to a growing number of locations domestically and internationally. Implant Sciences' QS-H150 portable explosives trace detector has received Qualified Anti-Terrorism Technology Designation and, in addition to receiving TSA approval for air cargo screening, the Company's QS-B220 has also received a Developmental Testing & Evaluation (DT&E) Designation by the U.S. Department of Homeland Security under the Support Anti-terrorism by Fostering Effective Technology Act of 2002 (the SAFETY Act). For further details on the Company and its products, please visit the Company's website at www.implantsciences.com.
Safe Harbor Statement
This press release may contain certain "forward-looking statements," as that term is defined in the Private Securities Litigation Reform Act of 1995. Such statements are based on management's current expectations and are subject to risks and uncertainties that could cause the Company's actual results to differ materially from the forward-looking statements. Such risks and uncertainties include, but are not limited to, the risks that our explosives detection products and technologies (including any new products we may develop) may not be accepted by the Transportation Security Administration or by other U.S. or foreign government and law enforcement agencies or commercial consumers of security products; economic, political and other risks associated with international sales and operations could adversely affect our sales; our business is subject to intense competition and rapid technological change; the risks that our markets are subject to technological change and that our success depends on our ability to develop and introduce new products; and other risks and uncertainties described in our filings with the Securities and Exchange Commission, including its most recent Forms 10-K, 10-Q and 8-K. Such statements are based on management's current expectations and assumptions which could differ materially from the forward-looking statements.u
http://m.yahoo.com/w/legobpengine/finance/news/implant-sciences-quantum-sniffer-explosives-110000868.html?.intl=us&.lang=en-us
$IMSC - Implant Sciences explosive trace detectors being exhibited in Mexico City security conference this week:
Implant Sciences' Quantum Sniffer Explosives and Drugs Trace Detection Systems to Be Exhibited at 11th Annual Expo Seguridad Mexico
WILMINGTON, MA--(Marketwired - Apr 22, 2013) - Implant Sciences Corporation (OTCQB: IMSC), a high technology supplier of systems and sensors for homeland security and defense markets, today announced that it will exhibit its TSA-Approved Quantum Sniffer™ QS-B220 desktop explosives and drugs trace detector and its Quantum Sniffer™ QS-H150 handheld explosives trace detector at Expo Seguridad México from April 23th through 25th, at the Banamex Center in Mexico City, Mexico. Implant Sciences will be showing its systems in booth 3501 of local security equipment supplier, Share y Asociados SA de CV.
Expo Seguridad attracts more than 12,500 qualified visitors from nearly 30 Central American and Caribbean nations. Over the past few years, international keynote speakers have come to the event to present on topics such as convergence, urban security and global security trends. (http://www.exposeguridadmexico.com)
"Implant Sciences' equipment addresses a variety of Central American security needs. According to a study published by the US Department of Commerce, Mexico alone represents over a $4 billion security market. This show is strategically important as we continue to expand the presence of our explosives and drugs trace detection systems within the region," stated Implant Sciences' President and CEO Glenn D. Bolduc.
About the Quantum Sniffer™ QS-B220 Desktop Explosives and Drugs Trace Detector
The TSA approved Quantum Sniffer QS-B220 uses Ion Mobility Spectrometry (IMS) to rapidly detect and identify trace amounts of a wide variety of military, commercial, and homemade explosives, as well as drugs. With significantly lower maintenance requirements than competing systems, the QS-B220 can be deployed for a much lower total cost of ownership than other approved products. Featuring a radioactive material-free design, push-button maintenance and diagnostics, and internal automatic self-calibration, the QS-B220 brings new levels of performance and convenience to desktop trace detection users with unsurpassed ease of use.
About the Quantum Sniffer™ QS-H150 Handheld Explosives Trace Detector
The Quantum Sniffer QS-H150 utilizes Ion Mobility Spectrometry (IMS) technology, providing fast, accurate detection of trace amounts of a wide variety of military, commercial, and homemade explosives. Built with no radioactive materials and featuring a low-maintenance, self-calibrating, and self-clearing design, the QS-H150 provides very high levels of operational availability. The QS-H150 has been proven to perform well in a wide variety of temperatures and challenging environments, from humid jungles to dry, sand swept deserts.
About Implant Sciences
Implant Sciences is the leader in next generation Explosives Trace Detection (ETD) technology. In January 2013, the Company became only the third ETD manufacturer, and the sole American-owned company, to receive product approval from the US Transportation Security Administration. Implant Sciences develops, manufactures and sells sophisticated sensors and systems for Security, Safety, and Defense (SS&D) markets. The Company has developed proprietary technologies used in its commercial explosives and narcotics trace detection systems, which ship to a growing number of locations domestically and internationally. Implant Sciences' QS-H150 portable explosives trace detector has received Qualified Anti-Terrorism Technology Designation and, in addition to receiving TSA approval for air cargo screening, the Company's QS-B220 has also received a Developmental Testing & Evaluation (DT&E) Designation by the U.S. Department of Homeland Security under the Support Anti-terrorism by Fostering Effective Technology Act of 2002 (the SAFETY Act). For further details on the Company and its products, please visit the Company's website at www.implantsciences.com.
Safe Harbor Statement
This press release may contain certain "forward-looking statements," as that term is defined in the Private Securities Litigation Reform Act of 1995. Such statements are based on management's current expectations and are subject to risks and uncertainties that could cause the Company's actual results to differ materially from the forward-looking statements. Such risks and uncertainties include, but are not limited to, the risks that our explosives detection products and technologies (including any new products we may develop) may not be accepted by the Transportation Security Administration or by other U.S. or foreign government and law enforcement agencies or commercial consumers of security products; economic, political and other risks associated with international sales and operations could adversely affect our sales; our business is subject to intense competition and rapid technological change; the risks that our markets are subject to technological change and that our success depends on our ability to develop and introduce new products; and other risks and uncertainties described in our filings with the Securities and Exchange Commission, including its most recent Forms 10-K, 10-Q and 8-K. Such statements are based on management's current expectations and assumptions which could differ materially from the forward-looking statements.u
http://m.yahoo.com/w/legobpengine/finance/news/implant-sciences-quantum-sniffer-explosives-110000868.html?.intl=us&.lang=en-us
$IMSC - Implant Sciences explosive trace detectors being exhibited in Mexico City security conference this week:
Implant Sciences' Quantum Sniffer Explosives and Drugs Trace Detection Systems to Be Exhibited at 11th Annual Expo Seguridad Mexico
WILMINGTON, MA--(Marketwired - Apr 22, 2013) - Implant Sciences Corporation (OTCQB: IMSC), a high technology supplier of systems and sensors for homeland security and defense markets, today announced that it will exhibit its TSA-Approved Quantum Sniffer™ QS-B220 desktop explosives and drugs trace detector and its Quantum Sniffer™ QS-H150 handheld explosives trace detector at Expo Seguridad México from April 23th through 25th, at the Banamex Center in Mexico City, Mexico. Implant Sciences will be showing its systems in booth 3501 of local security equipment supplier, Share y Asociados SA de CV.
Expo Seguridad attracts more than 12,500 qualified visitors from nearly 30 Central American and Caribbean nations. Over the past few years, international keynote speakers have come to the event to present on topics such as convergence, urban security and global security trends. (http://www.exposeguridadmexico.com)
"Implant Sciences' equipment addresses a variety of Central American security needs. According to a study published by the US Department of Commerce, Mexico alone represents over a $4 billion security market. This show is strategically important as we continue to expand the presence of our explosives and drugs trace detection systems within the region," stated Implant Sciences' President and CEO Glenn D. Bolduc.
About the Quantum Sniffer™ QS-B220 Desktop Explosives and Drugs Trace Detector
The TSA approved Quantum Sniffer QS-B220 uses Ion Mobility Spectrometry (IMS) to rapidly detect and identify trace amounts of a wide variety of military, commercial, and homemade explosives, as well as drugs. With significantly lower maintenance requirements than competing systems, the QS-B220 can be deployed for a much lower total cost of ownership than other approved products. Featuring a radioactive material-free design, push-button maintenance and diagnostics, and internal automatic self-calibration, the QS-B220 brings new levels of performance and convenience to desktop trace detection users with unsurpassed ease of use.
About the Quantum Sniffer™ QS-H150 Handheld Explosives Trace Detector
The Quantum Sniffer QS-H150 utilizes Ion Mobility Spectrometry (IMS) technology, providing fast, accurate detection of trace amounts of a wide variety of military, commercial, and homemade explosives. Built with no radioactive materials and featuring a low-maintenance, self-calibrating, and self-clearing design, the QS-H150 provides very high levels of operational availability. The QS-H150 has been proven to perform well in a wide variety of temperatures and challenging environments, from humid jungles to dry, sand swept deserts.
About Implant Sciences
Implant Sciences is the leader in next generation Explosives Trace Detection (ETD) technology. In January 2013, the Company became only the third ETD manufacturer, and the sole American-owned company, to receive product approval from the US Transportation Security Administration. Implant Sciences develops, manufactures and sells sophisticated sensors and systems for Security, Safety, and Defense (SS&D) markets. The Company has developed proprietary technologies used in its commercial explosives and narcotics trace detection systems, which ship to a growing number of locations domestically and internationally. Implant Sciences' QS-H150 portable explosives trace detector has received Qualified Anti-Terrorism Technology Designation and, in addition to receiving TSA approval for air cargo screening, the Company's QS-B220 has also received a Developmental Testing & Evaluation (DT&E) Designation by the U.S. Department of Homeland Security under the Support Anti-terrorism by Fostering Effective Technology Act of 2002 (the SAFETY Act). For further details on the Company and its products, please visit the Company's website at www.implantsciences.com.
Safe Harbor Statement
This press release may contain certain "forward-looking statements," as that term is defined in the Private Securities Litigation Reform Act of 1995. Such statements are based on management's current expectations and are subject to risks and uncertainties that could cause the Company's actual results to differ materially from the forward-looking statements. Such risks and uncertainties include, but are not limited to, the risks that our explosives detection products and technologies (including any new products we may develop) may not be accepted by the Transportation Security Administration or by other U.S. or foreign government and law enforcement agencies or commercial consumers of security products; economic, political and other risks associated with international sales and operations could adversely affect our sales; our business is subject to intense competition and rapid technological change; the risks that our markets are subject to technological change and that our success depends on our ability to develop and introduce new products; and other risks and uncertainties described in our filings with the Securities and Exchange Commission, including its most recent Forms 10-K, 10-Q and 8-K. Such statements are based on management's current expectations and assumptions which could differ materially from the forward-looking statements.u
http://m.yahoo.com/w/legobpengine/finance/news/implant-sciences-quantum-sniffer-explosives-110000868.html?.intl=us&.lang=en-us
I disagree. All of the security stocks mentioned in that article trade on major exchanges. Not IMSC. Not yet.
And if you click on the link you will see a photo of the handheld Quantum Sniffer.
Read past the headline; some great press today for IMSC:
Why Explosives Detectors Wouldn't Have Stopped Boston Bombs
Tech News Daily
Jesse Emspak, TechNewsDaily Contributor
April 19 2013
The recent bombings in Boston have highlighted how vulnerable people are to terrorism. Police even swept the area beforehand to check for anything unusual, using the time-honored tools of sharp eyes, ears and a bomb-sniffing dog.
But new high-tech ways of detecting the residues and vapors left by explosive chemicals are on the horizon that could one day complement — or even replace — their human and animal counterparts.
The problem is that finding that type of residue is no easy task. In airports, passengers are let through a checkpoint one at a time and their luggage can be swabbed and a sample taken that way. That's less practical at public events where people literally walk up off the street.
"It's a hard problem," said Jimmie Oxley, professor of chemistry at the University of Rhode Island and co-director of the Department of Homeland Security's Center for Excellence.
The issue, Oxley noted, is that substances have to get into the surrounding air in order to be detected from any distance, and many explosive chemicals don't give off much chemical vapor. (Gunpowder, of the kind in fireworks, is actually a big exception to this, as it has an odor people can pick up.)
In order to find a bomb, one would have to detect the tiny amount of vapor in the air or identify a telltale bomb-making substance based on a small amount of residue. Currently, there is no commercially available technology that scans for vapor signatures in a sweep of a public street — at least not yet, said Rich Stoddard, director of Trace Platforms at Newark, Calif.-based Morpho Detection, Inc., which makes airport explosives detection systems as well as handheld devices to detect explosives.
Current limitations
The current generation of handheld devices work in a similar way to the devices in airports —an object must be swabbed before an explosive can be detected. "For [long-distance] detection, there's nothing I am aware of," he said. That is, there isn't some device like a Star Trek tricorder one can wave around and see traces of something dangerous several feet away.
Morpho's systems work via ion mobility spectroscopy, or IMS, which Stoddard says is the only method that that has been certified by U.S. government agencies such as the Transportation Security Administration.
IMS works by drawing vapor from a substance (along with the air) into a chamber where it gets converted into electrically charged particles. An electric field moves the ions to a detector. The speed at which the ions move can tell the operator what trace chemicals are in the air.
Implant Sciences Corporation of Wilmington, Mass., has a device called the Quantum Sniffer, used in airports to check bags that are getting loaded onto cargo holds in planes. Their device resembles a small cordless vacuum and uses IMS technology to suck up, charge and funnel vapor particles to a detector.
Glenn Bolduc, CEO of Implant, said he believes if there were a something like a ticket gate for the area where the bombs went off during the Boston Marathon, allowing only one or two people in at a time, the Quantum Sniffer, or any similar device, could have picked up the residue of an explosive on a backpack or on the surface of the bomb. However, the Quantum Sniffer would have to be held pretty close to the backpack or bomb to work, Bolduc said.
Implant Sciences is also working on a mass spectrometer the size of a D-cell battery that can pick up traces of explosives from farther away. A mass spectrometer is a device that analyzes substances by measuring the weight of individual ions. But even that device works best when there is a particular physical area of interest in mind.
Large sweeps not possible yet
There are also technologies that are used by the military in war zones that can do something akin to [long distance] detection, but those are designed to scan specific areas, said John Goodpaster, a professor and director of the Forensic Sciences Program at Indiana University-Purdue University Indianapolis.
"That's where you're going from point A to point B and need to look at something right in front of you," he said. That's not the same thing as sweeping a large open area, he added.
For now, at least, almost every available technology that detects trace amounts of explosives works best in controlled environments — such as airports or stadiums – where people enter in neat lines. In a situation where the access is open, it's much more difficult to pick up threats no matter what method is used.
Even explosive-sniffing dogs have limitations. "A dog needs a pretty big plume [of vapor]," Oxley said. Dogs are quite sensitive, but there's a lower limit to the concentration of explosive chemicals they can detect, and the vapor has to reach the dog in the first place. On top of that, it isn't always clear when the dog is working because like people, they get tired or bored.
On the other hand, Stoddard said, dogs are intelligent and can cover large areas quickly, because a big part of what they do is narrow down a search area. In that sense, they can complement a handheld device like the ones Morpho makes.
Other methods
This doesn't mean there's no other way to detect explosives. Xplosafe, of Stillwater, Okla., makes nanoparticles that are sprayed onto a surface, or used inside a small tube to test liquids. When the particles change color, it's a sign that a suspect chemical — peroxides and chlorates — is there.
Shoaib Shaikh, CEO of Xplosafe, said a team sweeping an area could spray suspect objects with the particles. He added that Xplosafe is going through the process with the Department of Homeland Security to be approved for use at checkpoints.
That doesn't mean there never will be any kind of "sniffer" technology. Over the last several years, several institutions have attempted to build something that works as well or better than a bomb-sniffing dog. Some technologies use nanometer-thick wires and some with carbon nanotubes and even genetically engineered mice.
"Everyone is working on ways to do this," Oxley said, noting that there are least a dozen companies in Massachusetts alone that are developing explosive detection technologies. "It all depends on funding."
http://www.technewsdaily.com/17815-why-explosives-detectors-wouldn-t-have-stopped-boston-bombs.html
Proof that IMSC is still under the radar on Wall Street:
American Counterterrorism and Homeland Security Companies
24/7 Wall St.
April 17, 2013 by Jon C. Ogg
It feels almost like the news flow from 11 years ago is repeating itself, as terrorism is back in the headlines and in the breaking news in America. First it was the dual explosions at the Boston Marathon. Now we have news that a letter sent to Senator Wicker in Washington D.C. has tested positive for ricin poison, bringing back the memories of the multiple anthrax letters of the past. News reports are even starting to talk about “suspicious packages at airports” because the news agencies are reporting these again.
We have expanded our list of American companies that provide counterterrorism and of public companies selling to law enforcement and to the Department of Homeland Security.
Some things are going to be obvious. Airport security and security at public events will be now be on higher alert. If the trends of terrorism and sabotage keep escalating, Americans almost certainly will have to deal with more audio and video surveillance, hazardous materials suits being shown in the news, and increased monitoring of all sorts. These trends are likely to bring increased orders for companies that serve the intelligence and law enforcement communities.
The companies we have identified manufacture and sell products or offer services that fall under law enforcement and under Homeland Security. Some of these are spread into other areas, and we did not include the big corporate giants that have 2% or so tied to these markets. Note that some of these companies are very small, and some have declining revenue due to lower security expenses in recent years.
Alliant Techsystems Inc. (NYSE: ATK) may be thought of for rocket boosters and propulsion for air and space technologies, but the company also happens to be the largest bullet manufacturer in America for the military, law enforcement and Joe Public. The company supplies bullets and ammunition to the Department of Justice, FBI, Department of Homeland Security, Armed Forces and others. ATK operates the Lake City Army Ammunition Plant and recently announced the delivery of 2 billion 7.62 mm rounds to the U.S. Army. ATK’s value is almost $2.4 billion, and it is expected to generate about $4.3 billion in sales in 2013.
American Science & Engineering Inc. (NASDAQ: ASEI) scans for bombs and weapons in transportation systems. It is also involved in mail room screening as well, and any more ricin poison being sent in the mail should increase its public exposure. That being said, revenue has been in decline. This company has a market value of about $492 million, and 2012 annual sales were $203.5 million and expected to drop ahead.
Command Security Corp. (NYSEMKT: MOC) is tiny, as its market value is only about $16 million, but sales in fiscal 2012 were $141 million. The company claims to have 6,000 highly trained personnel for airport security, banks, government offices, health care facilities and other corporate and enterprise security.
FLIR Systems Inc. (NASDAQ: FLIR) handles various degrees of imaging via night-time vision, thermal imaging, chemical and biological detection, explosives detection and more. With a market value of about $3.5 billion, it has expected sales for 2013 projected to be more than $1.5 billion.
Kratos Defense & Security Solutions Inc. (NASDAQ: KTOS) is considered to be a national security technology player selling products, services and solutions for security in the United States. While diversified, Kratos recently announced contracts to deploy specialized security systems for mass transportation, rail and critical infrastructure awards. The company has a market value of about $285 million, and it is expected to have sales of close to $975 million in 2013.
L-3 Communications Holdings Inc. (NYSE: LLL) is an amalgamation of command, control, communications, intelligence, surveillance and reconnaissance products and services. The company has made many acquisitions over the past decade, and it is involved in many other defense applications. L-3 has a market value of about $7.3 billion, and it is expected to generate $12.6 billion in sales in 2013.
Lakeland Industries Inc. (NASDAQ: LAKE) is very small, but it makes chemical protective clothing, disposable protective clothing, safety gloves, turnout gear, high visibility clothing, flame and heat-resistant clothing and other items. Its value is a mere $19 million, and this one is often skipped or overlooked because of its size and liquidity. Sales are running at just under $100 million per year.
NICE Systems Ltd. (NASDAQ: NICE) is a software company that captures and analyzes interactions and transactions in order to realize intent and to extract and leverage insights real-time. Technically this is not an American company, as it is based in Israel, but the company claims that about 25,000 organizations in 150 countries are direct or indirect clients. Its market value is $2.1 billion, and 2012 sales were almost $880 million, but note that the company is diversified in many segments.
OSI Systems Inc. (NASDAQ: OSIS) is a real player involved in homeland security, health care, defense and aerospace industries. In this aspect, it is known well for its Rapiscan Systems for security screening in airports, ports and buildings. OSI has a market value of about $1.1 billion and is expected to have 2013 sales of more than $830 million.
Raytheon Co. (NYSE: RTN) may still best be known for its Patriot Missiles and their more modern replacements, but it is also involved in integrated communications and intelligence. This ranges from seeing through walls and to communications monitoring via its Applied Signal Technology acquisition in recent years for its advanced intelligence, surveillance and reconnaissance systems and services. Raytheon is worth about $18.7 billion, and sales are expected to be about $23.8 billion in 2013.
Smith & Wesson Holding Corp. (NASDAQ: SWHC) and Sturm, Ruger & Co. Inc. (NYSE: RGR) are the two public company gun leaders in America. It sure seems that recent events may drive yet another round of strong gun demand. Gun control legislation also remains up in the air after 14 people were stabbed at a college in Houston and with two bombs going off in Boston. It is possible that the argument against gun ownership may have lost some of its bite. Smith & Wesson is worth about $560 million, and the expected 2013 sales are about $580 million. Sturm Ruger has a market value of about $934 million and is expected to have sales of about $514 million in 2013.
TASER International Inc. (NASDAQ: TASR) makes the tasers, or stun guns, for law enforcement. It is hard to know if terror scares will lift its unit orders, and this company’s glory days were in 2003 to 2005, when the stock went from less than $5 to $30 briefly. Its shares have traded sideways since for the most part, and it is very thinly covered by Wall St. TASER’s market value is still more than $410 million, and sales were almost $115 million in 2012.
Many of these companies have been beneficiaries in the past due to Homeland Security orders, counterterrorism and increased sales to law enforcement and enterprises. We are not trying to pick winners here, nor are we signaling that these are all stocks to buy. We strongly suggest that any investors looking to capitalize on this trend do some serious, deep-dive research of their own on these and other companies before taking any action.
The Real Cost of Terrorism for Nations, Billions and Trillions
24/7 Wall St.
April 19, 2013 by Jon C. Ogg
This last week was a reminder that terrorism is far from gone. The dual bombs at the Boston Marathon were followed by ricin poison letters in the Senate and the White House mail rooms in Washington D.C. and now the news is littered with reports of scares and warnings all over. 24/7 Wall St. wanted to know something that sounds simple, but something which is extremely difficult to quantify: What is the economic cost of terrorism?
The answer is billions of dollars per year, but when you tally up more than a decade that figure goes into the trillions of dollars. You have to first think about the loss of life, then the economic damage, and then the raw dollars which get spent by governments, agencies, and individuals fighting terrorism. After that there are the costs of rebuilding.
We recently gave a list of American companies which are tracking terrorists and selling to law enforcement agencies. These services and products range from mail screening, bomb detection, telephone surveillance, guns, bullets, equipment and much more. These companies have seen combined spending in the billions of dollars if you consider that this war on terrorism is over a decade old now. Just last year we showed how outrageous some of the costs are in the war on terrorism have grown to after Brown University claimed that the total costs had risen to close to $4 trillion.
The long and short of it is that terrorism has cost billions of dollars to many nations. That would be in the trillions combined in America and its allies because of our counterterrorism efforts that also included two armed force invasions in Iraq and in Afghanistan. Osama Bin Laden was one of the men who suggested that the Al Qaeda and other terrorists should target financial stability as their means of how to win a fight against America.
There are some raw figures which start to become rather alarming. Steve Killelea is the founder of the Institute for Economics and Peace and he gave an interview to CNBC at the end of 2012 showing that the cost of the fight against terrorism was on the rise. This group put out a publication at the end of 2012 called the Global Terrorism Index ranking 158 nations around the world. This shows that in 2011 alone there were some 4,564 terrorist incidents globally which resulted in 7,473 deaths and also 13,961 injuries.
On the CNBC video, Mr. Killelea said that the cost to fight terrorism has risen handily. His estimate of the 9/11 cost the U.S. economy about $80 billion or 0.8% of GDP at the time. More recently, the cost to the airline sector in the United States alone went up by 25% to about $7.4 billion. Mr. Killelea said that this $7.4 billion cost compared to industrywide annual profits of about $8.6 billion at the same time.
While calculating the costs against terrorism are more than challenging, one issue stands out from the 2012 Global Peace Index: the economic benefit to the global economy was projected to be $9 trillion in the last year if the world had been completely peaceful.
If we go back further, there is a report from the Congressional Research Service showing the costs of the wars in Iraq and Afghanistan along with other terror operations since September 11, 2001. This showed in 2011 that Congress had approved a total of $1.283 trillion for things such as military operations, base security, reconstruction, foreign aid, embassy costs, and health care for veterans for the three operations initiated since the 9/11 attacks. Of that amount, $806 billion was allocated to expenses for Iraq and $444 billion for Afghanistan and related expenses.
Read Also: 10 Countries That Hate America The Most
One article from 2010 rom the Kabul Press even went out and showed that the estimated cost to kill each Taliban member is conservatively and $50 million and that it could be as much as $100 million. We are leaving the methodology and fact-checking up top them for that.
Our guess is that the true cost of terrorism and the real expenses to fight to terrorism on a global basis over a decade or more are too difficult to count with a finite dollar sum. With one Tsarnaev brother dead and one on the run in Boston, this current terrorism event is unfortunately just one more costly event that resulted in death and injury and will drive up costs for security at all major public events.
Just this April, the White House asked Congress to appropriate $48.2 billion for the Fiscal Year 2014 National Intelligence Program and the Pentagon’s intelligence budget was another $14.6 billion. Keep in mind that this is lower than the prior year by close to $9 billion, but we think it is fair to guess that now more intelligence dollars will be sought now. Fiscal year 2010 was shown to be the highest budget expense when $80.1 billion was appropriated by Congress for intelligence activities.
$IMSC - Implant Sciences featured today in Seeking Alpha:
This week, we all experienced a national feeling of sadness over the terrorist attack at the Boston Marathon. We all have seen the horrible images of the cowardly attack, and have heard the heart wrenching stories about men, women, and children who have lost lives and limbs. Personally, I found myself remembering back to September 11th - sitting around the TV and anxiously watching the reports coming out of Boston.
Unfortunately, as we have learned this week, despite the advances made by governments to combat both foreign and domestic terrorism the threat still looms large. Deranged people have easy access to propaganda that spreads baseless hatred, and even more dangerous, have easy access to instructions, which give them the tools to act out on their hateful ideas.
From September 11th, and through today - with the rise of terrorist threats - governments have gotten more serious about how to defend their citizens. Immediately after September 11th, President Bush created the Transportation Security Administration (TSA), which originally fell under the jurisdiction of the Transportation Department, but has since relocated to the Department of Homeland Security. The TSA has a $558mm annual equipment budget (p.67) that they spend on a range of security devices. One of those devices is called an Electronic Trace Detection (ETD), which as its name implies picks up trace amounts of explosive residue on people's clothes, bags, and other items. Out of the $558mm the TSA plans to spend this year, $4.5mm on that will get spent on ETD equipment (p. 1334), and the TSA plans to spend another $85mm on ETD equipment over the course of the next few years.
More significantly, the TSA recently launched the Electronic Baggage Screening Program, which has an $11bn budget over its lifetime and a $1bn budget over the next three years. The TSA notes that the ETD portion of this program represents, "the second largest component of equipment cost within the ... program" (p. 1340). In short, the TSA plans to seriously ramp up its spending across two programs in the short run - general TSA budget, and more importantly the Electronic Baggage Screening Program - and any company getting involved in this space will find themselves rewarded.
Currently, three main companies supply security equipment to the TSA - Safran (SAFRY.PK), Smiths (SMGKF.PK), and Level-3 Holdings (LLL). All three of these companies sell the whole range of their products to the TSA, with an ETD offering included. Recently, however, a new company, Implant Sciences Corporation (IMSC.PK) received approval from the TSA to begin selling their ETD equipment to airport security professionals. This approval has opened the door for IMSC to begin taking some market share away from the more established players in the US and beyond.
Importantly, for investors looking to take full advantage of the past and future government spending in this area, IMSC offers a compelling investment for the following three reasons. First, IMSC is a pure play when it comes to the security space, whereas the above companies only derive a small portion of their revenue from the security space. Second, IMSC has the newest technology, having received the most recent approval from the TSA. Considering the TSA approval, and the advantage in the technology, IMSC offers compelling products for customers around the world. Third, TSA has a strong board who have deep relationships with decision makers in charge of security purchases.
In this article, I will explore these three points in more detail, and from there try to build a compelling investment thesis for IMSC.
IMSC: Pure Play
Above, I named three main companies that provide security equipment for the TSA -- Level 3 Holdings, Smiths, and Safran. All three of these companies operate in essentially a conglomerate form, with airport security equipment making up a tiny fraction of their revenue. See table:
Company
Total Revenue
Revenue From Airport Security
% of revenue from airport security
Level 3
$11.76bn
$340mm
3%
Safran
13.5bn (Euros)
~500mm
~3%
Smiths
3.03bn (UK, pounds)
326mm
11%
Safran does not break out its specific revenue from security, but I based my estimates on the following two assumptions. First, Safran reports security equipment, get ready for it, in the security segment. That segment accounts for 1.5bn Euros of Safran's revenue. Safran has three sub segments within the security segment - Cards, Identification, and Detection. While Safran does not report the revenue from each of these segments, it does report how much goodwill it holds on its books for each of these segments. See table:
Sub Segment
Goodwill (in Euros, millions)
% of Goodwill
Identification
949
70%
Cards
52
4%
Detection
357
26%
Considering Safran made 1.5bn Euros from the security sub segment, based on its accounting of goodwill, the Detection sub segment made ~400mm Euros.
Now, we need to make a new second assumption. Safran originally bought their security business from GE (GE), last year they bought out GE's remaining 19% stake in the detection business for 90mm Euros, thereby valuing the whole unit at 450mm Euros. Assuming Safran wants to get a 15% return on equity that would leave them with 68mm Euros of net income from the detection business. Further assuming that Safran has a 10% net margin from this business that gives them 680mm Euros in revenues from this division. In the above table, I took the rough average of these two assumptions and came to a 500mm Euro revenue number.
Bottom line, none of the above companies give you pure access to the security space. Smiths gives you the most exposure at only 10% of total revenue. Investors looking for a more significant amount of exposure should consider IMSC.
Impact of TSA Approval
The TSA approved IMSC's device for use in January of this year. One month ago, the US government followed up their approval with a small order of IMSC products. This important test order sets the stage for IMSC to eventually generate significant business from the TSA and other US government organizations. Additionally, the TSA approval will obviously go a long way in giving IMSC access to the world ETD market. Homeland Security Research Corporation estimates the worldwide market for ETD's should reach $1.5bn by 2015 - a very large market indeed.
In fact, in the first quarter of this year alone, IMSC announced a new customer in the Middle East and further expansion to an Asian country postal service. Undoubtley, the TSA approval played a major role in these decisions, as they will for the foreseeable future.
But, at a higher level the TSA approval holds meaning because it serves as a stamp of approval for IMSC's technology advances. Meaning, in order for IMSC to compete against the established players it must show that it offers a better product. While on the face of it IMSC might seem to have a better product, without the confirmation of this by an organization with the weight of the TSA the advances mean very little. I won't go into too many specifics about IMSC's improvements over their competitors, but briefly:
IMSC trace detection does not use any radiation to detect for explosive materials
IMSC trace detection has superior self-cleaning and self-calibrating functions
The first improvement marks the biggest selling point for IMSC - obviously a device that uses radiation for detection has both higher liability, and ongoing maintenance costs, something IMSC does not have to deal with.
Strong Management Team
Without a doubt IMSC faces stiff competition from the companies mentioned above, and they can only get their foot in the door if they have the right connections. As the saying goes, it's not what you know, but who you know. In this area, IMSC does not disappoint.
IMSC retained two people with intimate knowledge of the inner workings of the TSA. First, it has hired Todd Swearingen as GM for North America. Mr. Swearingen previously served at Safran's Detection Group, and head of security at Dallas-Ft Worth Airport. Second, it has retained as a consultant Mr. Mo McGowan, widely considered one of the founders of the TSA and one of its lead management people prior to his retirement. Mr. Swearingen represents a more significant hire than Mr. McGowan, because Mr. Swearingen left Safran, a more established player, and has decided to join the more exciting (and higher potential) team at IMSC.
IMSC has two members on its board with significant experience in government security. First, Robert Liscouski spent 11 years with the state department both as the official liaison to Interpol and as a mobile training leader in Beirut, and Rome. Second, Howard Safir held the positions both of commissioner at both the NY fire and police departments. Mr. Liscouski's role in international affairs should put IMSC in a strong position to profit in the international sphere.
Conclusions
Obviously, I don't intend in any way to make light of the tragedy at the Boston Marathon by trying to think about the way to profit from such a tragedy, but I have written about IMSC in the past, and the tragedy forced me to think about it again. I did not go into too many of the risks associated with IMSC, but we should note that while the technology looks promising, and has indeed received TSA approval, they still have not scored a large order from an organization like the TSA. Further, considering that their ETD product represents substantially their only revenue stream, failure to capitalize on this opportunity could mark the end of IMSC. Lastly, IMSC has faced consistent liquidity risks, which has forced them into some unusual financing agreements that could continue to dilute the equity. Nonetheless, for investors looking for higher risk, but higher reward security business stock IMSC might work well.
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
http://m.seekingalpha.com/article/1353611
$IMSC - Implant Sciences featured today in Seeking Alpha:
This week, we all experienced a national feeling of sadness over the terrorist attack at the Boston Marathon. We all have seen the horrible images of the cowardly attack, and have heard the heart wrenching stories about men, women, and children who have lost lives and limbs. Personally, I found myself remembering back to September 11th - sitting around the TV and anxiously watching the reports coming out of Boston.
Unfortunately, as we have learned this week, despite the advances made by governments to combat both foreign and domestic terrorism the threat still looms large. Deranged people have easy access to propaganda that spreads baseless hatred, and even more dangerous, have easy access to instructions, which give them the tools to act out on their hateful ideas.
From September 11th, and through today - with the rise of terrorist threats - governments have gotten more serious about how to defend their citizens. Immediately after September 11th, President Bush created the Transportation Security Administration (TSA), which originally fell under the jurisdiction of the Transportation Department, but has since relocated to the Department of Homeland Security. The TSA has a $558mm annual equipment budget (p.67) that they spend on a range of security devices. One of those devices is called an Electronic Trace Detection (ETD), which as its name implies picks up trace amounts of explosive residue on people's clothes, bags, and other items. Out of the $558mm the TSA plans to spend this year, $4.5mm on that will get spent on ETD equipment (p. 1334), and the TSA plans to spend another $85mm on ETD equipment over the course of the next few years.
More significantly, the TSA recently launched the Electronic Baggage Screening Program, which has an $11bn budget over its lifetime and a $1bn budget over the next three years. The TSA notes that the ETD portion of this program represents, "the second largest component of equipment cost within the ... program" (p. 1340). In short, the TSA plans to seriously ramp up its spending across two programs in the short run - general TSA budget, and more importantly the Electronic Baggage Screening Program - and any company getting involved in this space will find themselves rewarded.
Currently, three main companies supply security equipment to the TSA - Safran (SAFRY.PK), Smiths (SMGKF.PK), and Level-3 Holdings (LLL). All three of these companies sell the whole range of their products to the TSA, with an ETD offering included. Recently, however, a new company, Implant Sciences Corporation (IMSC.PK) received approval from the TSA to begin selling their ETD equipment to airport security professionals. This approval has opened the door for IMSC to begin taking some market share away from the more established players in the US and beyond.
Importantly, for investors looking to take full advantage of the past and future government spending in this area, IMSC offers a compelling investment for the following three reasons. First, IMSC is a pure play when it comes to the security space, whereas the above companies only derive a small portion of their revenue from the security space. Second, IMSC has the newest technology, having received the most recent approval from the TSA. Considering the TSA approval, and the advantage in the technology, IMSC offers compelling products for customers around the world. Third, TSA has a strong board who have deep relationships with decision makers in charge of security purchases.
In this article, I will explore these three points in more detail, and from there try to build a compelling investment thesis for IMSC.
IMSC: Pure Play
Above, I named three main companies that provide security equipment for the TSA -- Level 3 Holdings, Smiths, and Safran. All three of these companies operate in essentially a conglomerate form, with airport security equipment making up a tiny fraction of their revenue. See table:
Company
Total Revenue
Revenue From Airport Security
% of revenue from airport security
Level 3
$11.76bn
$340mm
3%
Safran
13.5bn (Euros)
~500mm
~3%
Smiths
3.03bn (UK, pounds)
326mm
11%
Safran does not break out its specific revenue from security, but I based my estimates on the following two assumptions. First, Safran reports security equipment, get ready for it, in the security segment. That segment accounts for 1.5bn Euros of Safran's revenue. Safran has three sub segments within the security segment - Cards, Identification, and Detection. While Safran does not report the revenue from each of these segments, it does report how much goodwill it holds on its books for each of these segments. See table:
Sub Segment
Goodwill (in Euros, millions)
% of Goodwill
Identification
949
70%
Cards
52
4%
Detection
357
26%
Considering Safran made 1.5bn Euros from the security sub segment, based on its accounting of goodwill, the Detection sub segment made ~400mm Euros.
Now, we need to make a new second assumption. Safran originally bought their security business from GE (GE), last year they bought out GE's remaining 19% stake in the detection business for 90mm Euros, thereby valuing the whole unit at 450mm Euros. Assuming Safran wants to get a 15% return on equity that would leave them with 68mm Euros of net income from the detection business. Further assuming that Safran has a 10% net margin from this business that gives them 680mm Euros in revenues from this division. In the above table, I took the rough average of these two assumptions and came to a 500mm Euro revenue number.
Bottom line, none of the above companies give you pure access to the security space. Smiths gives you the most exposure at only 10% of total revenue. Investors looking for a more significant amount of exposure should consider IMSC.
Impact of TSA Approval
The TSA approved IMSC's device for use in January of this year. One month ago, the US government followed up their approval with a small order of IMSC products. This important test order sets the stage for IMSC to eventually generate significant business from the TSA and other US government organizations. Additionally, the TSA approval will obviously go a long way in giving IMSC access to the world ETD market. Homeland Security Research Corporation estimates the worldwide market for ETD's should reach $1.5bn by 2015 - a very large market indeed.
In fact, in the first quarter of this year alone, IMSC announced a new customer in the Middle East and further expansion to an Asian country postal service. Undoubtley, the TSA approval played a major role in these decisions, as they will for the foreseeable future.
But, at a higher level the TSA approval holds meaning because it serves as a stamp of approval for IMSC's technology advances. Meaning, in order for IMSC to compete against the established players it must show that it offers a better product. While on the face of it IMSC might seem to have a better product, without the confirmation of this by an organization with the weight of the TSA the advances mean very little. I won't go into too many specifics about IMSC's improvements over their competitors, but briefly:
IMSC trace detection does not use any radiation to detect for explosive materials
IMSC trace detection has superior self-cleaning and self-calibrating functions
The first improvement marks the biggest selling point for IMSC - obviously a device that uses radiation for detection has both higher liability, and ongoing maintenance costs, something IMSC does not have to deal with.
Strong Management Team
Without a doubt IMSC faces stiff competition from the companies mentioned above, and they can only get their foot in the door if they have the right connections. As the saying goes, it's not what you know, but who you know. In this area, IMSC does not disappoint.
IMSC retained two people with intimate knowledge of the inner workings of the TSA. First, it has hired Todd Swearingen as GM for North America. Mr. Swearingen previously served at Safran's Detection Group, and head of security at Dallas-Ft Worth Airport. Second, it has retained as a consultant Mr. Mo McGowan, widely considered one of the founders of the TSA and one of its lead management people prior to his retirement. Mr. Swearingen represents a more significant hire than Mr. McGowan, because Mr. Swearingen left Safran, a more established player, and has decided to join the more exciting (and higher potential) team at IMSC.
IMSC has two members on its board with significant experience in government security. First, Robert Liscouski spent 11 years with the state department both as the official liaison to Interpol and as a mobile training leader in Beirut, and Rome. Second, Howard Safir held the positions both of commissioner at both the NY fire and police departments. Mr. Liscouski's role in international affairs should put IMSC in a strong position to profit in the international sphere.
Conclusions
Obviously, I don't intend in any way to make light of the tragedy at the Boston Marathon by trying to think about the way to profit from such a tragedy, but I have written about IMSC in the past, and the tragedy forced me to think about it again. I did not go into too many of the risks associated with IMSC, but we should note that while the technology looks promising, and has indeed received TSA approval, they still have not scored a large order from an organization like the TSA. Further, considering that their ETD product represents substantially their only revenue stream, failure to capitalize on this opportunity could mark the end of IMSC. Lastly, IMSC has faced consistent liquidity risks, which has forced them into some unusual financing agreements that could continue to dilute the equity. Nonetheless, for investors looking for higher risk, but higher reward security business stock IMSC might work well.
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
http://m.seekingalpha.com/article/1353611
$IMSC - Implant Sciences featured today in Seeking Alpha:
This week, we all experienced a national feeling of sadness over the terrorist attack at the Boston Marathon. We all have seen the horrible images of the cowardly attack, and have heard the heart wrenching stories about men, women, and children who have lost lives and limbs. Personally, I found myself remembering back to September 11th - sitting around the TV and anxiously watching the reports coming out of Boston.
Unfortunately, as we have learned this week, despite the advances made by governments to combat both foreign and domestic terrorism the threat still looms large. Deranged people have easy access to propaganda that spreads baseless hatred, and even more dangerous, have easy access to instructions, which give them the tools to act out on their hateful ideas.
From September 11th, and through today - with the rise of terrorist threats - governments have gotten more serious about how to defend their citizens. Immediately after September 11th, President Bush created the Transportation Security Administration (TSA), which originally fell under the jurisdiction of the Transportation Department, but has since relocated to the Department of Homeland Security. The TSA has a $558mm annual equipment budget (p.67) that they spend on a range of security devices. One of those devices is called an Electronic Trace Detection (ETD), which as its name implies picks up trace amounts of explosive residue on people's clothes, bags, and other items. Out of the $558mm the TSA plans to spend this year, $4.5mm on that will get spent on ETD equipment (p. 1334), and the TSA plans to spend another $85mm on ETD equipment over the course of the next few years.
More significantly, the TSA recently launched the Electronic Baggage Screening Program, which has an $11bn budget over its lifetime and a $1bn budget over the next three years. The TSA notes that the ETD portion of this program represents, "the second largest component of equipment cost within the ... program" (p. 1340). In short, the TSA plans to seriously ramp up its spending across two programs in the short run - general TSA budget, and more importantly the Electronic Baggage Screening Program - and any company getting involved in this space will find themselves rewarded.
Currently, three main companies supply security equipment to the TSA - Safran (SAFRY.PK), Smiths (SMGKF.PK), and Level-3 Holdings (LLL). All three of these companies sell the whole range of their products to the TSA, with an ETD offering included. Recently, however, a new company, Implant Sciences Corporation (IMSC.PK) received approval from the TSA to begin selling their ETD equipment to airport security professionals. This approval has opened the door for IMSC to begin taking some market share away from the more established players in the US and beyond.
Importantly, for investors looking to take full advantage of the past and future government spending in this area, IMSC offers a compelling investment for the following three reasons. First, IMSC is a pure play when it comes to the security space, whereas the above companies only derive a small portion of their revenue from the security space. Second, IMSC has the newest technology, having received the most recent approval from the TSA. Considering the TSA approval, and the advantage in the technology, IMSC offers compelling products for customers around the world. Third, TSA has a strong board who have deep relationships with decision makers in charge of security purchases.
In this article, I will explore these three points in more detail, and from there try to build a compelling investment thesis for IMSC.
IMSC: Pure Play
Above, I named three main companies that provide security equipment for the TSA -- Level 3 Holdings, Smiths, and Safran. All three of these companies operate in essentially a conglomerate form, with airport security equipment making up a tiny fraction of their revenue. See table:
Company
Total Revenue
Revenue From Airport Security
% of revenue from airport security
Level 3
$11.76bn
$340mm
3%
Safran
13.5bn (Euros)
~500mm
~3%
Smiths
3.03bn (UK, pounds)
326mm
11%
Safran does not break out its specific revenue from security, but I based my estimates on the following two assumptions. First, Safran reports security equipment, get ready for it, in the security segment. That segment accounts for 1.5bn Euros of Safran's revenue. Safran has three sub segments within the security segment - Cards, Identification, and Detection. While Safran does not report the revenue from each of these segments, it does report how much goodwill it holds on its books for each of these segments. See table:
Sub Segment
Goodwill (in Euros, millions)
% of Goodwill
Identification
949
70%
Cards
52
4%
Detection
357
26%
Considering Safran made 1.5bn Euros from the security sub segment, based on its accounting of goodwill, the Detection sub segment made ~400mm Euros.
Now, we need to make a new second assumption. Safran originally bought their security business from GE (GE), last year they bought out GE's remaining 19% stake in the detection business for 90mm Euros, thereby valuing the whole unit at 450mm Euros. Assuming Safran wants to get a 15% return on equity that would leave them with 68mm Euros of net income from the detection business. Further assuming that Safran has a 10% net margin from this business that gives them 680mm Euros in revenues from this division. In the above table, I took the rough average of these two assumptions and came to a 500mm Euro revenue number.
Bottom line, none of the above companies give you pure access to the security space. Smiths gives you the most exposure at only 10% of total revenue. Investors looking for a more significant amount of exposure should consider IMSC.
Impact of TSA Approval
The TSA approved IMSC's device for use in January of this year. One month ago, the US government followed up their approval with a small order of IMSC products. This important test order sets the stage for IMSC to eventually generate significant business from the TSA and other US government organizations. Additionally, the TSA approval will obviously go a long way in giving IMSC access to the world ETD market. Homeland Security Research Corporation estimates the worldwide market for ETD's should reach $1.5bn by 2015 - a very large market indeed.
In fact, in the first quarter of this year alone, IMSC announced a new customer in the Middle East and further expansion to an Asian country postal service. Undoubtley, the TSA approval played a major role in these decisions, as they will for the foreseeable future.
But, at a higher level the TSA approval holds meaning because it serves as a stamp of approval for IMSC's technology advances. Meaning, in order for IMSC to compete against the established players it must show that it offers a better product. While on the face of it IMSC might seem to have a better product, without the confirmation of this by an organization with the weight of the TSA the advances mean very little. I won't go into too many specifics about IMSC's improvements over their competitors, but briefly:
IMSC trace detection does not use any radiation to detect for explosive materials
IMSC trace detection has superior self-cleaning and self-calibrating functions
The first improvement marks the biggest selling point for IMSC - obviously a device that uses radiation for detection has both higher liability, and ongoing maintenance costs, something IMSC does not have to deal with.
Strong Management Team
Without a doubt IMSC faces stiff competition from the companies mentioned above, and they can only get their foot in the door if they have the right connections. As the saying goes, it's not what you know, but who you know. In this area, IMSC does not disappoint.
IMSC retained two people with intimate knowledge of the inner workings of the TSA. First, it has hired Todd Swearingen as GM for North America. Mr. Swearingen previously served at Safran's Detection Group, and head of security at Dallas-Ft Worth Airport. Second, it has retained as a consultant Mr. Mo McGowan, widely considered one of the founders of the TSA and one of its lead management people prior to his retirement. Mr. Swearingen represents a more significant hire than Mr. McGowan, because Mr. Swearingen left Safran, a more established player, and has decided to join the more exciting (and higher potential) team at IMSC.
IMSC has two members on its board with significant experience in government security. First, Robert Liscouski spent 11 years with the state department both as the official liaison to Interpol and as a mobile training leader in Beirut, and Rome. Second, Howard Safir held the positions both of commissioner at both the NY fire and police departments. Mr. Liscouski's role in international affairs should put IMSC in a strong position to profit in the international sphere.
Conclusions
Obviously, I don't intend in any way to make light of the tragedy at the Boston Marathon by trying to think about the way to profit from such a tragedy, but I have written about IMSC in the past, and the tragedy forced me to think about it again. I did not go into too many of the risks associated with IMSC, but we should note that while the technology looks promising, and has indeed received TSA approval, they still have not scored a large order from an organization like the TSA. Further, considering that their ETD product represents substantially their only revenue stream, failure to capitalize on this opportunity could mark the end of IMSC. Lastly, IMSC has faced consistent liquidity risks, which has forced them into some unusual financing agreements that could continue to dilute the equity. Nonetheless, for investors looking for higher risk, but higher reward security business stock IMSC might work well.
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
http://m.seekingalpha.com/article/1353611