LOS ANGELES, CALIFORNIA, Nov. 28, 2023 (GLOBE NEWSWIRE) — MetAlert, Inc. (OTC: MLRT) (“the Company”), a pioneer in GPS wearable technology and global provider in the field of human and asset tracking and recovery systems announced financial results for the Third Quarter ended September 30, 2023, and provided the following corporate summary:
Three Month Financial Highlights
- Overall Revenue increased 27% over 2022 comparable period.
- Wages and benefits decreased 5% over 2022 comparable period.
- Professional fees reduced by 24% over 2022 comparable period.
- Operating Expense were down 10% over the 2022 comparable period.
- Cash on hand increased 343% over 2022 comparable period.
- Inventories increased 182% over 2022 comparable period, as we ramped up production of SmartSoles and added the Level 2 Security product line.
- Total assets increased 226% over 2022 comparable period.
Management commentary by Patrick Bertagna, MetAlert, Inc. CEO:
During the third quarter 2023, we took transformative steps to broaden our product line and add new markets in order to increase our revenues and subscriptions. We successfully acquired Level 2 Security LLC, which we merged into our new 100% wholly owned subsidiary Level 2 Security Products, Inc. Management believes, this was a formidable step in solidifying the financial and operational position of the Company and encapsulates our vision to amplify recurring revenue streams while scaling the Company’s life-saving technology and IP portfolio. We also saw some positive trends such as a 27% increase in revenues compared to Q3 of 2022 and a 76% increase in revenues over the previous quarter in 2023. We also had our best ending cash position ($106,000) and asset value ($744,000) since 2021. Included in the acquisition came bank balances, Intellectual Property, approximately 3,700 units of ready to ship product inventory, digital collateral, an online and Amazon store, two smartphone apps, and an ongoing research and development roadmap for possible future new product releases. The strategic synergy from the acquisition enables us to expand our target market beyond those of humans with cognitive disorders and opens the doors to entirely new and much larger markets. The Level 2 proprietary technology can safeguard an extensive range of mobile assets, and by integrating this with MetAlert’s backend tracking portal and infrastructure, the Company envisions fiscal improvements in the near term.
By tapping into vast new markets, this acquisition signifies a strategic investment in bolstering our short and long-term growth strategy and will broadly expand our reach into the arena of non-human asset tracking. This transaction represents a convergence of our core mission of delivering life-saving technology with a sharp focus on sustainable, long-term subscription-based revenue growth. The Company has started a marketing and product awareness campaign to gun activist groups, gun safety groups, police departments, child safety advocate groups, gun stores and ranges, military supply lines and plans to expand its marketing into other channels such as the growing electric bike market.
During the third quarter of 2023, we also made some advancements in our core human monitoring business. Our SmartSole plus was put through rigorous testing at Intertek labs, which concluded that the product is fully compliant, making them FCC and IEC certified. This enabled us to release some back orders from larger enterprise customers in Europe that required final certification documentation. We also saw some improvements in our production capacity and were able to streamline some manufacturing processes, thereby increasing our production quantities and enhancing our low inventory position. We were also able to leverage our OEM manufacturing in Germany and started to fill some orders in Europe and have some inventory sent to the US. Overall, we still have some supply chain issues, but this was the first quarter since the launch of the SmartSole plus that we saw noticeable improvements in lead times, increases in inventory and shortening our time from order to delivery by 2-3 weeks on average. As we discussed last quarter, we are still evaluating ways to scale up production in the U.S. and bring down our costs in order to increase our margins, with a stated mission to reduce costs by 10% to 18% and increase production capacity by 25% to 40%. Compared to the same quarter last year, we saw a 62% increase in domestic subscriptions and over 100% subscription increases in Germany and Canada. These are good trends, which the Company expects will continue as we continue to fill orders, but we still need to expand our markets, drive more sales, and increase subscriptions.
Within a few weeks of starting our GunAlert® marketing campaign we received and delivered our first commercial order for the GunAlert® firearm recovery device. The order came from Range USA which has 40+ locations across 10 states and is headquartered in Cincinnati Ohio. We have also sent out test units for evaluation to several police departments of which some have already replied back with interest, and some have provided compelling testimonials that we will be able to use in our marketing collateral. As with all of our products we sell both B2B and B2C and have already embarked on a direct-to-consumer marketing campaign across several social media platforms and Amazon.
The strategic timing for expanding into this market coincides well with the Office of Justice Programs (“OJP”) recent announcement of investing unprecedented resources in programs designed to reduce gun crime and community violence. Last September $100 million in grant funding was initiated under the Community Violence Intervention and Prevention Initiative making this the largest targeted federal investment for these strategies in history. As part of our go to market strategy we have brought on retired police officers that can assist us with messaging, and grant approval procedures, with our goal to become a recognized force and solution provider in the ever-growing national conversation on gun safety.
During the third quarter, the Company continued to work on the launch of Hands Free Health (HFH) which provides real-time telehealth access via Walmart Health Virtual Care (WHVC). We expect this business silo will help grow subscribers but also help with the SmartSole expansion plan. As we drive towards Medicare reimbursement, having access to a virtual doctor who could diagnose a person with Alzheimer’s or dementia should help facilitate access to SmartSoles by people who require financial assistance.
In summary, we took several positive steps forward during this quarter, despite not meeting our revenue targets. In order to offset the lower revenues, the Company implemented many cost saving measures, including the entire senior management team deferring salaries, and cutting out all non-essential expenses by approximately 24% year-to-date. We have worked with all our suppliers to reduce unnecessary expenses related to production inefficiencies in order to position ourselves to maximize profits as we scale back up.
The Company continues to work towards receiving Medicare and other government assistance for our SmartSole, which will then foster growth and build our subscription base, which we believe will ultimately provide us with a large global data base that can be analyzed by using artificial intelligence (A.I.) to produce predictive models. Healthcare assisted with A.I. is the prize we have set our sights on, and we are doing everything we can to put in place the necessary steps to get to that prize as quickly as possible.
MetAlert is a For-Profit with Purpose Company which has an extensive line of health & safety products, a broad patent portfolio, a proud U.S. military contractor and has multiple wearable tracking products sold through its online store, Amazon and authorized resellers and distributors servicing customers across the globe.
MetAlert (OTC: MLRT) and its subsidiaries occupy a commanding position in the design, development, manufacturing, distribution, sales, and licensing of GPS wearable technology, asset recovery services, wandering assistive technology, and health data collection and monitoring. With over two decades of industry expertise and a robust portfolio of patents, MetAlert is the go-to solution provider for consumers and patients grappling with mobility, cognitive, and spatial awareness challenges. This demographic represents approximately 2.9% of the global population. The Company delivers comprehensive global solutions encompassing logistics, hardware, software, and connectivity.
Notable achievements include the groundbreaking GPS SmartSole®, a fusion of Dr. Scholl’s comfort with LoJack’s tracking prowess. It stands as the world’s inaugural invisible wearable tracking device, designed for individuals susceptible to wandering due to Alzheimer’s, dementia, autism, and traumatic brain injury. MetAlert’s subscription-based model thrives on technology innovation fortified by intellectual property safeguards. The company boasts international distribution channels serving customers across 40 countries, alongside its role as a U.S. Military Government contractor. In addition to public health entities, MetAlert caters to municipalities, emergency and law enforcement agencies, private educational institutions, assisted living facilities, NGOs, senior care residences, consumers, and small enterprises. Recognizing its excess capacity within its distribution center and backend processes also presents an opportunity to expand revenue streams and diversify its operations.
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This news release contains forward-looking statements. The terms and phrases “expects,” “would,” “will,” “believes,” and similar terms and phrases are intended to identify these forward-looking statements. Forward-looking statements are based on estimates and assumptions made by MetAlert considering its experience and perception of current conditions and expected future developments, as well as other factors that MetAlert believes are appropriate in the circumstances. Many factors could cause MetAlert’s actual results, performance, or achievements to differ materially from those expressed or implied by the forward-looking statements. Certain risk factors that may cause actual results to differ are outlined in MetAlert’s Annual Report on Form 10-K filed with the U.S. Securities and Exchange Commission (which may be obtained on the SEC Website). These factors should be considered carefully, and readers should not rely on MetAlert’s forward-looking statements. MetAlert has no intention and undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required.
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Source Globe Newswire