Info on Lifeloc's Acquisition Of R.A.D.A.R. Product:
Lifeloc is purchasing all the Track Group assets relevant to the R.A.D.A.R. device, including the current device inventory, manufacturing assets, monitoring software, and the intellectual property which includes issued and pending U.S. patents, along with associated international applications.
The purchase price under the Asset Purchase Agreement was $860,000.
The R.A.D.A.R. device represents an important expansion of our business model, which we expect will result in a recurring revenue stream from device leasing and monitoring, as opposed to a series of one time sales of breathalyzers,” says Dr. Wayne Willkomm, Lifeloc CEO.
From the TRCK annual report:
On May 5, 2016, the Company executed an agreement with Marion County Community Corrections ("Agency"), the largest county in the state of Indiana, to provide electronic monitoring services across the full range of sentences under the Agency's oversight. Under the terms of the Agreement, the Company will provide solutions based on GPS and alcohol monitoring technology to monitor over 2,300 offenders and defendants.
Right now, more than 200 people are using RADAR in Marion County. Superior Court Judge Bill Nelson says it's not only stopping people from drinking—it’s saving on jail space and tax dollars.
“It’s offender funded, so it's not costing the taxpayer anything. If I throw someone in jail, it'll cost the county about $52 a day; the offenders are paying for this up to $12 dollars a day,” he said.
So if we just use Marion County's numbers:
200 people using the RADAR device x $12/day x 365 days = $876,000
Lifeloc can cover the cost of this purchase in 1 year with just Marion County. Plus they get the current device inventory, manufacturing assets, monitoring software, and the intellectual property which includes issued and pending U.S. patents, along with associated international applications.
If they can expand the use of this product and/or utilize it with other illegal substances, I'd say this was a nice purchase. It's not a game changer but it will add revenues and add to intellectual property.
