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American Company Spotlight

 

RemoteMDx Inc. Website: Click Here

Information As Of: May 9, 2007

Exchange: OTCBB Market Cap: 172.23 Million
Outstanding Shares: 91.13 Million 52 Low / High: $0.50 / $2.28

Price as of May 9: $1.89

RMDX Recent Stock Quote and News: Click Here

'RemoteMDx global location, monitoring and communications technologies advance law enforcement effectiveness and senior citizen independence.'



Overview

Through its SecureAlert subsidiary, RemoteMDx offers a unique personal security service combing two-way communications, patented wireless location technology and affordable real-time 24/7 mobile monitoring to assist law enforcement in protecting neighborhoods from predators and to provide peace of mind for families with elderly loved ones who live alone or far away.


Investment Highlights

  • RemoteMDx's proven technologies/services combine two- or three-way cellular and global positioning technologies with powerful Web-based software and 24/7 Monitoring Center to deliver an unsurpassed advantage in its key markets.
  • TrackerPAL generates a recurring revenue stream of up to $8/day per deployed device.
  • RemoteMDx has the capacity to manufacture 400 units per day.
  • RemoteMDx has in excess of 100 employees and 45 distributors.
  • RemoteMDx has seven patents issued, six patents pending and one patent applications in the process of being filed.
  • More than $40 million has been invested in RemoteMDx thus far, including $10 million by the company's management.
  • RemoteMDx announced on February 20, 2007 operating revenues of $988,000 for the quarter ended December 31, 2006, a 450% increase compared to $219,000 for the same period last year. The primary reason for the increase was the introduction of the TrackerPAL unit that started a full-scale deployment in December of 2006 and will demonstrate continued revenue growth throughout the calendar year of 2007.
  • SecureAlert announced a contract between Seguridad Satelital Vehicular for 10,000 TrackerPAL units to be deployed in Mexico. Seguridad Satelital Vehicular (SSV) is a major supplier of tracking devices and services to the Mexican government and specializes in telematics. The contract calls for SSV to purchase 10,000 TrackerPAL units for $6 million over a 16-month period of time.
  • Numerous states and the federal government have passed laws specifically targeting the use of the TrackerPAL product.

Profile

As a premier player in the electronic monitoring and tracking industry, RemoteMDx has created two products and built a world-class monitoring and telematic center to help maintain safety and security for our families and communities in an ever-changing mobile world.

The first product, TrackerPAL, allows parole/probation officers and other agencies to monitor offenders in the criminal justice system. The device keeps track of the precise location of offenders and offers real-time voice communication with both the Monitoring Center and the supervising officer.

The second product targets the more than 10 million senior citizens in the United States who live alone. MobilePAL products were created with easy-to-use communications and global positioning solutions to help keep senior citizens connected with loved ones and (if necessary) emergency personnel, all at the touch of a button via a small handheld device. MobilePAL solutions have already served 50,000 individuals to date.


Offender Tracking

Keeping children, families and neighborhoods safe from violent crimes committed by repeat offenders.

  • 4.9 million adult men and women are currently on supervised probation or parole in the U.S.*
  • Parolees and probationers under government supervision commit 15 murders per day.**
  • In 1991, convicted probationers were responsible for at least 64,000 murders, 7,400 rapes, 10,400 assaults and 17,000 robberies in the U.S.**
  • The average cost to keep an offender in prison is approximately $65 per day.***
  • The average cost of the TrackerPAL Offender Monitoring System is $8 per day.

According to the U.S. Census, roughly one in every 32 American adults is currently in the correctional system, of which 4.1 million men and women are on parole or probation.

The TrackerPAL Offender Monitoring Device, combined with a state-of-the-art 24/7/365 Monitoring Center, provides a complete and unique safety solution. By housing both GPS tracking and cellular communications technologies within the nearly indestructible casing of the TrackerPAL unit, the Monitoring Center is able to maintain a constant vigil over the location of each and every offender wearing a device.

* U.S. Census
** June 2002, The Cutting Edge, Federal Probation
*** “Bureau of Justice Statistics Bulletin,” July 2004

TrackerPAL

The TrackerPAL combines miniaturized cellular and global positioning system (GPS) technologies into a small (3.5- X 2.0- X 1.5-inches) patented device that straps to an offender’s ankle. Backed by a 24/7 Offender Monitoring Center and a powerful geographical information system (GIS) database. TrackerPAL automatically tracks and monitors the location of serious offenders in real-time anywhere in the world, while also providing supervising officers round-the-clock cellular communications capabilities with offenders.

Housed in a nearly indestructible shell, each TrackerPAL device includes a tamper alarm, a tamper-resistant ankle strap, rechargeable/replaceable batteries and an automatic battery alarm system. Pricing for the TrackerPAL solution is $8.00 per day per offender, roughly one-half to one-third the price of less-effective, competing solutions and significantly less than the national average of $65.00 per day for incarceration.

With a built-in central processing unit (CPU), the device is able to alert the Offender Monitoring Center of any efforts made by offenders to tamper with it. The ankle strap is permanently fixed to the offender and requires the destruction of the strap for removal. It is custom designed to be inexpensive yet strong and uses fiber optics to assist in making it extremely difficult to circumvent and remove without detection.

With TrackerPAL devices currently deployed throughout the United States, RemoteMDx is helping reduce the risk of violent crimes by repeat offenders.

Key features of RemoteMDx’s Offender Monitoring System include:

  • 24/7 nationwide two-way voice communication
  • Automated reporting of location and alarms (breadcrumbs)
  • Inclusion and exclusion alarms
  • Proximity alarm
  • Automated alert notification
  • Tamper resistant band and alarm
  • Battery status alerts (rechargeable/replaceable)
  • Web-based real-time tracking
  • Active monitoring
  • Enhanced GPS/GSM locate functionality

Senior Safety

Products and services designed to give seniors and their loved ones invaluable peace of mind.

Senior safety is vitally important to tens of millions of friends and family members throughout the United States. What is more frightening to the 35 million Senior Americans than the possibility of finding themselves in a situation where they are unable to get the help they need?

RemoteMDx has created its state-of-the-art MobilePAL device, a single-button device able to connect its users to a personal assistant 24 hours a day, 7 days a week.

MobilePAL

Since emergency situations are complicated and frightening enough, RemoteMDx has designed the MobilePAL device to be exceptionally effective in getting senior citizens the attention and assistance they need as soon as they need it, while also being extremely simple to use. The unique, patented single-button alert system works in tandem with the PAL Monitoring Center to provide assistance – emergency or otherwise – to our senior citizen customers.

When a user pushes the button to activate the device, the MobilePAL relies on both global positioning system (GPS) and cellular technologies, along with powerful Internet-based software, to let PAL Monitoring Center operators continuously communicate with the subscriber while simultaneously determining the caller’s location. Response Specialists act as the caller’s personal assistant and are able to determine the nature of the situation, contact emergency response personnel if needed and even pass along instructions to others based on information provided by the caller.

Smartly designed to resemble a common cellular phone, the MobilePAL slips easily into a purse or jacket pocket. The MobilePAL empowers senior citizens to live their lives to the fullest, content in their knowledge that should they need any kind of assistance, help is available at the touch of a button.

Service includes:

  • Full concierge service
  • Voice connection to family and friends
  • Daily check-up call to the subscriber
  • Driving directions
  • Emergency roadside service
  • Emergency 911 assistance
  • Notification of loved ones and physicians during an emergency
  • Storage of medical records

Medical Products

RemoteMDx / Volu-Sol Inc. is a highly specialized supplier of advanced wireless communications solutions for tracking and monitoring individuals. Our proprietary communications solution has integrated global positioning system (GPS) and cellular technology with the necessary infrastructure components to track and monitor individuals on a continuous basis. Data is sent to a monitoring center, staffed 24x7, wherein advisors provide the necessary care and service to the customer when needed.

Volu-Sol, a RemoteMDx subsidiary is committed to advancing the standards of personal health and safety through the development of innovative biomedical sensor devices that send data wirelessly to our MobilePal® device and monitoring center. The monitoring of vital sign parameters is an everyday practice in medicine. Despite the increased improvement in measurement and display methods, devices haven’t been able to keep up with the development of technical possibilities. Volu-Sol’s objective is to partner with niche organizations to design, manufacture and take to market wireless bio-sensor devices that capture vital sign data. Volu-Sol is uniquely positioned to transmit and store vital clinical data and provide the monitoring and alert system to consumers via the MobilePal system.

Volu-Sol has done an extensive review of commercial products that use wireless technology to send vital sign data to a database. We are seeking companies that are innovative and confident in taking bio-sensors to the market. As a user of such devices, Volu-Sol provides service to patients and envisions the day when bio-sensors will be integrated with one another or when a patient wears multiple devices for different data parameters. Volu-Sol is a provider of service based on the data transmitted to the monitoring center.

Because it is likely that one integrated device has not matured to capture all vital parameters noted below, it is expected that multiple iterations of a sensor or multiple sensors will be needed to capture these vital parameters. In our vision, Volu-Sol would license products or jointly develop sensors to take to market. Our interest lies in the following sensor areas: Vital signs (temperature, heart rate,

  • SpO2 (blood oxygen saturation), activity/inclination
  • Blood pressure
  • Serum glucose level
  • Diagnostic quality EKG

Volu-Sol also sells reagents that are used in laboratories and clinics across the country. We acknowledge that some of these parameters represent years of planning and research and we are committed to funding and developing sensors in these areas.


Recent News and Press Releases

RemoteMDx Supplements Earlier Press Release (Thu, Apr 12)

TrackerPAL(TM) Revolutionizes Monitoring of Convicted Sex Offenders (Tue, Apr 3)

REMOTE MDX INC Financials (Fri, Feb 23)

RemoteMDx Announces First Quarter Results (Tue, Feb 20)

RemoteMDx's Wholly Owned Subsidiary SecureAlert Announces Contract for Mexico (Mon, Feb 5)

Electro Energy Appoints Larry Schafran to Its Board of Directors (Tue, Nov 28)


Management

David Derrick – Chief Executive Officer and Chairman

Mr. Derrick served as chief executive officer and chairman of the board of directors of Biomune Systems Inc. between 1989 and 1998. From 1996 to 1999 Mr. Derrick served as chairman of the board of directors of the Purizer Corporation and from 1979 to 1982 was a faculty member at the University of Utah College of Business. Mr. Derrick earned a bachelor of arts degree in economics and a masters in business administration with an emphasis in finance from the University of Utah. Mr. Derrick has been the major financier and driving force in many new businesses. During the early 1980s he helped create the community of Deer Valley, an exclusive ski resort outside of Park City, Utah. In 1985 he founded and funded a company that pioneered the Smart Home concept - the computerized home. The company is known as Vantage Systems and is today a leader in this field.

James Dalton - President and Vice Chairman

From 1987 to 1997, Mr. Dalton was the owner and president of Dalton Development, a real estate development company. Mr. Dalton served as the president and coordinated the development of the Pinnacle project in Deer Valley, Utah, a 86-unit condominium project at a cost of $50 million. Mr. Dalton also served as the president and equity owner of Club Rio Mar in Puerto Rico. Club Rio Mar is a 680 - acre beach front property including 500 condominiums, beach club, numerous restaurants, pools and a Fazio-designed golf course. Finally, as the founder and owner of the Deer Valley Club Mr. Dalton developed a high-end and world-class ski project, including 25 condominiums that have a ski-in and ski-out feature. More recently, Mr. Dalton has served as an officer and director of Biomune Systems, Inc., a public company located in Salt Lake City. Mr. Dalton was active in the daily activities of the business and instrumental in the funding of the Company.

Michael Acton - Chief Financial Officer, Secretary and Treasurer

From June 1998 until November 2000, Mr. Acton was chief executive officer of Biomune Systems, Inc., where he also served as principal accounting officer and controller from 1994 to 1997. While at Biomune, Mr. Acton was instrumental in the acquisition of two nutritional product lines that increased sales more than 300 percent. Mr. Acton performed a critical role in selling a division of Biomune to a large pharmaceutical company. Additionally, he played a key role in raising in excess of $10 million from various institutions and private investors and successfully completed a reverse merger of Biomune Systems, Inc., into a Chicago-based pharmaceutical company. Mr. Acton has spent more than eight years in the public reporting arena and is familiar with Securities and Exchanges Commission rules and procedures. He was previously employed by Arthur Anderson LLP in Salt Lake City. Mr. Acton received a bachelor of science degree and a master of professional accounting degree, both from the University of Utah. He is a certified public accountant in the state of Utah.

Bruce G. Derrick – Chief Technology Officer

Mr. Derrick has extensive experience in management of custom solutions development and customer management in the wireless telecom marketplace. From 2001 to 2004 he was a senior product development manger for WatchMark Corporation, a company that collects cellular network performance data for quality assurance and capacity planning. From 1997 to 2001 Mr. Derrick was responsible for forming and managing the professional services team for Marconi's MSI division. From 1996 to 1997 Mr. Derrick provided technical project management of application scalability testing and quality control at Boeing and Western Wireless. From 1989 to 1996 Mr. Derrick built and managed the corporate computer and network operations department for Avaya's Mosaix division. From 1983 to 1989 he served as senior programmer in applied research at the University of Utah's Department of Medical Informatics, where he developed and implemented medical informatics and physiological monitoring services for ICU care. He also participated in development of IEEE standards for automated physiological monitoring for NASA's Space Station program. Mr. Derrick holds a bachelor's degree in computer science from the University of Utah.

Randy E. Olshen – President SecureAlert, Inc.

Prior to joining SecureAlert, Inc., Mr. Olshen was the executive vice president for Elan Nutrition from 2001 to 2004. From 1998 to 2001, Mr. Olshen was the president of Optim Nutrition, a wholly owned subsidiary of Biomune Systems (NASDAQ: BIME). From 1992 to 1998, Mr. Olshen was the executive vice president of sales, marketing and operations at Nellson Nutraceutical. From 1987 to 1992 Mr. Olshen was the general manager of the specialty products division of a $500 million pharmaceutical company, McGaw, Inc. He currently serves as a director and a member of the compensation committee for several companies. Mr. Olshen earned his bachelor’s degree from Chapman College.
 

Contacts

Phone: 1-866-451-6141
Fax: 1-801-451-6281

Address: 150 West Civic Center Drive
Suite 400
Sandy, UT 84070


FORWARD LOOKING STATEMENTS

This report includes forward-looking statements that reflect RemoteMDx Inc. current expectations about its future results, performance, prospects and opportunities. RemoteMDx Inc. has tried to identify these forward-looking statements by using words and phrases such as "may," "will," "expects," "anticipates," "believes," "intends," "estimates," "plan," "should," "typical," "preliminary," "we are confident" or similar expressions. These forward-looking statements are based on information currently available and are subject to a number of risks, uncertainties and other factors that could cause RemoteMDx Inc.'s actual results, performance, prospects or opportunities to differ materially from those expressed in, or implied by, these forward-looking statements. These risks, uncertainties and other factors include, without limitation, the Company's growth expectations and ongoing funding requirements, and specifically, the Company's growth prospects with scalable customers, and those outlined above. Other risks include the Company's limited operating history, the Company's history of operating losses, consumers' acceptance, the Company's use of licensed technologies, risk of increased competition, the potential need for additional financing, the terms and conditions of any financing that is consummated, the limited trading market for the Company's securities, the possible volatility of the Company's stock price, the concentration of ownership, and the potential fluctuation in the Company's operating results.


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