Digital Ally (NASDAQ: DGLY), which develops, manufactures and markets advanced video surveillance products for law enforcement, homeland security and commercial applications, has reached an agreement with WatchGuard Video to settle the company's patent infringement litigation. As part of the agreement, the litigation has been stayed for two weeks to allow the parties time to formalize the settlement and file dismissal papers. This is another big win for Digital Ally and its proprietary technology.
In the litigation, Digital Ally alleged that WatchGuard incorporated the company’s patented technology into its VISTA wifi and 4Re In-Car product lines. The Company is seeking monetary damages, as well as seeking a permanent injunction preventing WatchGuard from continuing to sell its VISTA Wifi and 4Re In-Car product lines using the Company’s technology.
The current settlement with WatchGuard bodes well for another patent infringement suit filed by Digital Ally. Last May, Axon Enterprises (NASDAQ: AAXN) lost its final appeal at the U.S. Patent & Trademark Office, and the Federal court indicated a ruling on claim construction is imminent.
The alleged patent-infringement by both Axon and WatchGuard is similar to a patent infringement by Phazzer Electronic, Inc. for its willful infringement of Axon's patent and trademark rights concerning its sale of the PhaZZer Enforcer CEW (conducted electrical weapon) and probe cartridges.
As the case unfolded, a federal judge in Florida found that Phazzer had engaged in a pattern of bad-faith behavior and ruled in favor of Axon. Based on the information found on Axon’s 10Q, on April 4, 2018, the court entered a judgment against Phazzer in an amount exceeding $7.8 million, which included an award to the Company of compensatory and triple damages for willful infringement, and also an award of reasonable attorney’s fees and costs.
In the case against Axon, Digital Ally is seeking royalty damages of more than $68 million for infringement between February 2016 and August 2018, according to pretrial order. The company maintains Axon continues to violate its patents since August 2018, which means the amount will adjusted for supplemental damages as the case moves on.
Strong Foundation with 93,500+ Units Sold Globally
Digital Ally produces digital video imaging and storage products for the use in law enforcement, security and commercial applications. The Company has deployed its products in 30+ countries worldwide, and more than 8,000 law-enforcement officers in the United States use DGLY products. The company has extensive operations with 40+ international distributors and 20 domestic sales representatives.
Company’s product lines consist of body-cameras, in-car video systems, and cloud-based or local server software. Company generates most of its revenue from law enforcement, which makes up 87% of the Company’s business operations, which includes in-car video (88% of U.S. law-enforcement officers) and body-worn cameras (12% of U.S. law-enforcement officers). In addition, the Company sells its products to other security organizations and consumer and commercial fleet operators through direct sales domestically and third-party distributors internationally.
While competition in the body-worn market continues to increase, Digital Ally’s patented VuLink® auto-activation technology provides the company an added advantage in the body-worn camera market with a potential opportunity to license their technology to big players in the body-cam market and generate royalty and license fees.
According to Market Research Future, major factors driving the growth for the body-worn camera is the increasing need for accountability and maintenance of a transparent approach during police conduct.
Shares Up on Settlement News
In early trading on Tuesday, Digital Ally shares were up as much as 20% on the news of its settlement with WatchGuard. Learn more at www.DGLYinfo.com.
Disclosure
Digital Ally, Inc. (NASDAQ: DGLY) is a client of RedChip Companies, Inc. DGLY agreed to pay RedChip Companies, Inc., a monthly cash fee for four (4) months of RedChip investor awareness services.
Piedmont Lithium Limited (NASDAQ: PLL) announced the initial Mineral Resource estimate on its Central property of 2.8 Mt at 1.34% Li2O. Approximately 50% or 1.41 million tonnes of the Mineral Resource is classified in the Indicated Resource category. The Mineral Resource estimate has been prepared by independent consultants, CSA Global Pty Ltd (“CSA”) and is reported in accordance with JORC Code (2012 Edition).
Key Quote: “We are very pleased with the initial high-grade Mineral Resource Estimate at Central. This is a property with great potential and the MRE is based on only 18 drill holes, 16 of which encountered thick, high-grade mineralization. We hope to expand our land holdings in this area and ultimately drill out a substantially larger resource at Central. Phase 4 drilling continues with 3 rigs operating on the Core property and we expect a material resource upgrade in June. The Piedmont project is quickly becoming one of the largest hard-rock lithium projects in North America, while enjoying all the benefits of our unique North Carolina, USA location.” – Keith D. Phillips, President & CEO
What’s Next: Phase 4 drilling is ongoing and the Company expects to announce a further Mineral Resource update in June 2019. The Central MRE and overall Resource update will be included in the Project’s updated scoping study scheduled for July 2019.
Disclosure
Piedmont Lithium (PLL) is a client of RedChip Companies, Inc. PLL agreed to pay RedChip Companies, Inc. a monthly cash fee for six (6) months of RedChip investor awareness services
GSRX Industries (OTCQB: GSRX) issued revenue guidance for the second quarter, with management expecting to generate $3.3 million to $3.5 million in sales, up double-digits from its expected record first quarter results.
Why It Matters: Sales have been stronger than projected at GSRX’s five owned-and-operated Green Spirit RX medicinal cannabis dispensaries in Puerto Rico and at its owned-and-operated Green Room dispensary in Point Arena, California. Additionally, sales have been robust for the Company’s Pure and Natural brand, non-THC CBD products, available online at GetPureAndNatural.com and at the Company’s Pure and Natural retail location in Tennessee.
Key Quote: "We continue to see strong demand across all of our U.S. operations and look forward to another quarter of record sales.” – Les Ball, CEO
What’s Next: The Company recently announced financial results for the fourth quarter of 2018, reporting record revenues of $1.66 million – an increase of 135% over the prior quarter. Additionally, the Company recently announced record first quarter revenues of $2.9 million (unaudited), with a rise in gross profit to 51.76%.
Disclosure
GSRX Industries (OTCQB: GSRX) is a client of RedChip Companies. RedChip Companies, Inc. received 1,000,000 registered shares of GSRX for consulting services. Be advised RedChip intends to sell some or all of its shares at any time, including when you are buying.
Nemaura Medical (NASDAQ: NMRD), a medical technology company focused on the development of SugarBEAT® as a non-invasive, affordable and flexible Continuous Glucose Monitor (CGM) for use by diabetics and pre-diabetics, successfully completed two summative human factors usability studies for SugarBEAT®. The usability studies were conducted according to the U.S. Food and Drug Administration (FDA) guidance on ‘Applying Human Factors and Engineering to Medical Devices,’ in preparation for submission of its medical device application to the FDA for SugarBEAT®.
Why It Matters: The two studies consisted of 16 participants each, including both Type I and Type II diabetics. Participants in the first and second study ranged from ages 18-50 and 51-70, respectively. The studies were designed to ensure adequate information was captured for the diverse age groups expected to use SugarBEAT®. The objective of the two studies was to confirm that the user interface aspects of SugarBEAT® met the FDA guidelines for medical devices.
Key Quote: “We are pleased to have successfully completed these important studies and we are preparing our FDA filing at this time. We anticipate broader adoption of SugarBEAT® as compared with competitive offerings given SugarBEAT® is non-invasive with flexible wear time and will be attractively priced.” – Dr. Faz Chowdhury, CEO
Disclosure
Nemaura Medical (NASDAQ: NMRD) is a client of RedChip Companies. NMRD agreed to pay RedChip a monthly cash fee for investor awareness services.
Level Brands’ (NYSE American: LEVB) wholly owned cbdMD subsidiary will present at the ThinkEquity Conference on Thursday, May 2, 2019 at 11:00 am ET at the Mandarin Oriental Hotel in New York City. cbdMD will also be conducting one-on-one meetings throughout the day.
The ThinkEquity Conference brings together companies in the technology, healthcare, finance, and energy industries with institutional and accredited investors. ThinkEquity is a division of Fordham Financial Management, Inc.
Disclosure
Level Brands (NYSE American: LEVB) is a client of RedChip Companies. LEVB agreed to pay RedChip a monthly cash fee of between $5,000 and $15,000, and 5,000 shares of Rule 144 stock for RedChip investor awareness services. Additionally, the CEO of RedChip Companies owns 13,500 shares of LEVB.
Emerald Health Therapeutics (OTCQX: EMHTF) announced that its 50%-owned joint venture, Pure Sunfarms, has completed planting of the final quadrants of its 1.1 million square foot Delta 3 greenhouse operation in Delta, BC. As a result, the entire 1.03 million square feet of growing area at Delta 3, comprising 16 individual grow rooms, is on track to reach its annualized full production run-rate of 75,000 kilograms by mid-2019.
Why It Matters: Pure Sunfarms is now moving forward on its plan to convert the nearly identical 1.1 million square foot Delta 2 ‘sister’ facility with the goal of at least doubling annual cannabis production to 150,000 kilograms and support its goal to be the high-quality, low-cost producer in Canada. Pure Sunfarms aims to complete its first harvest at the Delta 2 facility mid-2020 and achieve full run-rate production in the fourth quarter of 2020, subject to the receipt of Health Canada licenses.
What’s Next: Emerald Health Therapeutics will host its fiscal fourth quarter and 2018 year-end financial results conference call on Wednesday, May 1, 2019 at 8:30 a.m. ET.
Electra Meccanica Vehicles Corp. (NASDAQ: SOLO), a designer and manufacturer of electric vehicles, has been awarded a patent in China by the National Intellectual Property Administration for the design of its proprietary battery cartridge.
Key Quote: “We are pleased to announce this very important new patent win in China, growing our global intellectual property portfolio to 25 invention and design patent assets that have been filed or issued.” Jerry Kroll, CEO of Electra Meccanica
The Backstory: Electra Meccanica is a designer and manufacturer of electric vehicles. The Company builds the innovative, all-electric SOLO, a single passenger vehicle developed to revolutionize the way people commute, as well as the Tofino, an elegant high-performance two-seater electric roadster sports car. Both vehicles are tuned for the ultimate driving experience while making your commute more efficient, cost-effective and environmentally friendly. Intermeccanica, a subsidiary of Electra Meccanica, has successfully been building high-end specialty cars for 60 years. For more information, visit www.electrameccanica.com.
Catasys (NASDAQ: CATS), a leading AI and technology-enabled healthcare company, announced that it has entered into an agreement with Optima Health to provide its OnTrak solution to eligible commercial members in Virginia. Launch is expected in the second quarter of 2019.
Catasys continues with its impressive growth in revenues. The Company generated record revenue of $15.2 million in FY18, up 96.7%YoY. Going forward, the Company reiterates 2019 GAAP revenue guidance of $35 million.
Key Quote: “Optima Health is committed to improving member quality of life.” Rick Anderson, Catasys President and Chief Operating Officer
The Backstory: Catasys harnesses proprietary big-data predictive analytics, artificial intelligence and telehealth, combined with human interaction, to deliver improved member health and validated outcomes and savings to health plans. Our mission is to help improve the health and save the lives of as many people as possible.
Catasys's integrated, technology-enabled OnTrak solution--contracted with a growing number of national and regional health plans--is designed to treat members with behavioral conditions that cause or exacerbate co-existing medical conditions such as diabetes, hypertension, coronary artery disease, COPD, and congestive heart failure, which result in high medical costs.
Catasys has a unique ability to engage these members, who do not otherwise seek behavioral healthcare, leveraging proprietary enrollment capabilities built on deep insights into the drivers of care avoidance.
Disclosure
Catasys (NASDAQ: CATS) is a client of RedChip Companies, Inc. CATS agreed to pay RedChip Companies, Inc. a monthly cash fee for RedChip investor awareness services and consulting services.
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