Nxt-ID’s (NXTD) CEO Gino Pereira on Q3 2016 Results – Update Call Transcript
Nxt-ID, Inc. (NASDAQ:NXTD)
Q3 2016 Update Conference Call
November 17, 2016 04:15 PM ET
Gino Pereira – CEO
Vincent Miceli – CFO
Steve Waite – SoundView
Good day ladies and gentlemen and welcome to the NXT-ID Third Quarter Update Conference Call. At this time, all participants are in a listen-only mode. [Operator Instructions].
I would like to introduce your host for today’s conference Mr. Gino Pereira, CEO of NXT-ID. You may begin.
Thank you very much and welcome everyone, thanks for joining us. I need to start by saying that the matters that we will be discussing today will include forward-looking statements. They are subject to the risks and uncertainties that we will discussed in detail in our documents filed with the SEC. Specifically, the reports on Form 10-K and 10-Q, which identify important risk factors that could cause actual results to differ materially from those anticipated by the forward-looking statements.
So this quarter, the business has changed substantially from this time a year ago. Back then we were coming out with Wocket, which was a game changing product at the time. But we did face some challenges with the EMV chip that resulted in it being available for use in fewer places than we had hope. However, the outcome of Wocket was that, it helps us to develop some of the most amazing cutting edge technology, which we can now deploy in a much wider area. So as we took a step back and refocused on the company, we came out with a new operating plan, where today NXT-ID is a security technology company with expertise in payments, encryption, miniaturization, sensor development and advanced biometrics.
And we intend to bring our technology to market through distribution partnerships in fields like fintech, asset protection, IoT applications, that’s the Internet of Things and healthcare. So in fintech, we’re partners with WorldVentures a worldwide travel organization. We have $15 million purchase order that we are gearing up to deliver in this — to begin delivering in this quarter. So we are actively engaged in large scale manufacturing at the moment and deliveries will start before the end of the year.
We’re also talking to major banks and how our technology can work for them, both from the view of biometrics, as well as encryption. In healthcare, we acquired LogicMark in July of 2016. LogicMark is a personal emergency response company that is a leading non-monitored personal emergency response company in the United States. They produce the product that provides medical alerts for aging people when they have a problem and it puts them in touch directly with 911 or relatives that could come to their aid.
The company is continuing to perform extremely well and the business segment as a whole is growing rapidly. Primarily because of an aging population, as well as increasing life expectancy. We’re working on expanding their product line and distribution and introducing our technology into future versions of the product. We’re also exploring other aspects of the healthcare market, where biometrics can be very helpful for things like medical record, et cetera. And that’s a future goal of ours.
The Internet of Things is talked about a lot, we — those are the report from BI intelligence that projects $6 trillion sales over the next five years. Further IMC [ph] can never be trusted by anyone without solid security. I’m not going to trust opening my garage door automatically when that signal could be hacked by anybody hiding around the corner and gain access to my house and similarly bank statements and anything else that is valuable to us.
So we believe that our Dynamic Pairing patent and biometric capability can be meaningful in achieving that goal. Together with our expertise in miniaturization and encryption of course. So our partnership with Cisco is one of the ways that we are exploring this opportunity and we have just began to work together to develop products that we will put up to sales through the Cisco pipeline.