Proprietary Technology Addresses $1.7 Trillion Counterfeiting Problem
The annual global cost of counterfeiting, product diversion, and gray market activities is estimated at $1.7 trillion.
At minimum, these activities lead to lost revenue for companies and worse, could lead to serious brand impairment or financial liability. Think of counterfeit drugs or supplements and the damage they could cause.
A Solution for a $1.7 Trillion Problem
We found a company that is helping online retailers and auction sites battle this massive problem. This company has relationships with 30+ e-commerce and auction sites, including Amazon, Alibaba, and IndiaMart. Yet it’s virtually unknown on Wall Street. But we think that’s about to change.
The company is Appiphany Technologies (OTC: APHD), which operates in the brand protection space as IP Risk Control.
APHD provides government and corporate enterprise clients with total, integrated brand protection solutions that help prevent revenue loss from counterfeiting, product diversion, and gray market activities at any and all points in the supply chain.
It’s important to note this is a true penny stock, trading for a fraction of a penny right now.
After a relatively quiet period, the company announced several major developments in March that should lead to accelerating growth in the quarters ahead.
And with volume increasing, investors are starting to notice. We anticipate price appreciation is soon to follow.
Recent M&A activity in the industry shows additional promise. In July 2016, Mark Monitor (Thomson Reuters bought Mark Monitor in 2012) was sold to a private equity firm in $3.55 billion all cash deal, and in August 2016, NetNames was sold to Corporate Science Co.
New Growth Drivers
APHD signed a contract with a global leader in eWriter technology in mid-March. This company joins a growing list of long-term clients who rely on APHD for brand protection services.
The Company also announced a partnership agreement with Veritrack in March.
The partnership rounds out APHD’s product line with the addition of Intaglio printing and other proven, high-level security applications.
With a software-as-a-service (SaaS) business model, as APHD’s client base grows, the run rate of its recurring revenue grows.
Revenue was up 100% in the quarter ended January 31 compared to the fiscal first quarter ended July 2016. Gross profit was up 260% in the same periods.
APHD was still in a proof-of-concept stage with its Watchdog online monitoring program last summer. With commercial sales underway of this flagship product, revenue is beginning to reflect growing traction with corporate and government customers.
We recently spoke with Phil Vaggiani, director of sales and marketing for IP Risk Control. You can watch this exclusive interview in its entirety, below:
With a fragmented market and limited competition, plus recent M&A activity in the space, the road ahead looks promising for APHD.
They’re addressing a significant, unmet market need, estimated at $1.7 trillion, and their solutions address an estimated “obtainable” market of $400 million in North America, which is expected to nearly double by 2020.
Established relationships (30+ globally) with leading auction sites, high gross margins (70%), a growing client base, with a seasoned management team at the helm. This sets the stage for big potential upside.
Sign up for news alerts to stay informed about APHD’s progress, or contact a specialist today to learn more.
RedChip Companies, Inc. research reports, company profiles and other investor relations materials, publications or presentations, including web content, are based on data obtained from sources we believe to be reliable but are not guaranteed as to accuracy and are not purported to be complete. As such, the information should not be construed as advice designed to meet the particular investment needs of any investor. Any opinions expressed in RedChip reports, company profiles, or other investor relations materials and presentations are subject to change. RedChip Companies and its affiliates may buy and sell shares of securities or options of the issuers mentioned on this website at any time.
The information contained herein is not intended to be used as the basis for investment decisions and should not be construed as advice intended to meet the particular investment needs of any investor. The information contained herein is not a representation or warranty and is not an offer or solicitation of an offer to buy or sell any security. To the fullest extent of the law, RedChip Companies, Inc., our specialists, advisors, and partners will not be liable to any person or entity for the quality, accuracy, completeness, reliability or timeliness of the information provided, or for any direct, indirect, consequential, incidental, special or punitive damages that may arise out of the use of information provided to any person or entity (including but not limited to lost profits, loss of opportunities, trading losses and damages that may result from any inaccuracy or incompleteness of this information).
Stock market investing is inherently risky. RedChip Companies is not responsible for any gains or losses that result from the opinions expressed on this website, in its research reports, company profiles or in other investor relations materials or presentations that it publishes electronically or in print.
We strongly encourage all investors to conduct their own research before making any investment decision. For more information on stock market investing, visit the Securities and Exchange Commission ("SEC") at www.sec.gov.
Appiphany Technologies Holdings Corp. (APHD) is a client of RedChip Companies, Inc. APHD agreed to pay RedChip Companies, Inc. a monthly cash fee and 2.55 million shares of Rule 144 stock for six months of investor awareness services.
Investor awareness services and programs are designed to help small-cap companies communicate their investment characteristics. RedChip investor awareness services include the preparation of a research profile(s), multimedia marketing, and other awareness services.