Digital Ally to Acquire New Intellectual Property Platform to Address Non-Law Enforcement Markets
May 25 2017 - 8:30AM
Marketwired
Digital Ally to Acquire New Intellectual Property Platform to
Address Non-Law Enforcement Markets
New interactive video annotation and presentation technology
will bring augmented reality to new addressable markets, such as
medical, education, legal and psycho-therapy by providing virtual
consultants and specialists
LENEXA, KS-(Marketwired - May 25, 2017) - Digital Ally, Inc.
(NASDAQ: DGLY) ("Digital" or the "Company"), which develops,
manufactures and markets advanced video surveillance products for
law enforcement, homeland security and commercial applications,
today announced the signing of a letter of intent to acquire the
SightDeck intellectual property ("IP") from iMatte, Inc. The
SightDeck IP was developed to produce theatrical-quality special
effects where real-time integration of graphics and images are
needed and the platform is currently installed in several
universities and hospitals.
The Company believes that the SightDeck technology, paired with
Digital Ally's video and software products, will establish a new
technology foundation for interactive video annotation and
presentation. The combined technologies will form the basis for a
new business strategy for Digital Ally as it targets new markets,
such as medical, education, legal, and psycho-therapy. These
markets have not fully utilized the power of augmented reality on a
real-time basis, which improves the efficient use of premium and
scarce resources, such as doctors, lawyers, specialists and
consultants.
Digital Ally has already spent considerable efforts developing
new distribution channels and potential customer networks that may
find this new technology very appealing and a radical
change/improvement over their traditional revenue streams. Digital
Ally CEO Stanton Ross stated, "We have a clear roadmap to
commercialize this new technology given the extensive market
research we have completed, although we have much engineering
development and integration work to accomplish after closing this
transaction. We are excited about the SightDeck IP platform and the
many new market channels for which we expect to adapt new products
and service offerings. This product will help Digital Ally develop
new recurring service revenue streams, which is a major initiative
to restore its profitability and provide more consistent operating
results," concluded Ross.
Key members of iMatte Inc., responsible for the SightDeck
development, will be joining Digital Ally's research and
development team. They will facilitate both the SightDeck
technology transfer and integrate the new technologies developed by
iMatte with Digital Ally's audio/video products that are central to
Digital Ally's new business initiative.
Closing of the transaction is subject to the successful
completion of due diligence and negotiation of the definitive
agreement. Under the proposed terms, the Company will pay 6% of
revenues, with a minimum of $1 million, generated from the
licensing and sale of products created from the SightDeck
intellectual property platform over the three-year period after
closing. The parties expect the purchase to be completed in the
third quarter 2017.
For more information regarding the acquisition, go to
www.digitalallyinc.com/imatte.
About Digital Ally, Inc.
Digital Ally, Inc. develops, manufactures and markets advanced
technology products for law enforcement, homeland security and
commercial applications. The Company's primary focus is digital
video imaging and storage. The Company is headquartered in Lenexa,
Kansas, and its shares are traded on The Nasdaq Capital Market
under the symbol "DGLY." For additional news and information please
visit www.digitalallyinc.com or follow us on Twitter
@digitalallyinc and Facebook www.facebook.com/DigitalAllyInc.
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This press release contains forward-looking statements within
the meaning of Section 27A of the Securities Act of 1933 and
Section 21E of the Securities Act of 1934. These forward-looking
statements are based largely on the expectations or forecasts of
future events, can be affected by inaccurate assumptions, and are
subject to various business risks and known and unknown
uncertainties, a number of which are beyond the control of
management. Therefore, actual results could differ materially from
the forward-looking statements contained in this press release. A
wide variety of factors that may cause actual results to differ
from the forward-looking statements include, but are not limited
to, the following: whether the Company will be able to improve its
revenue and operating results; whether the Company will be able to
continue to expand into non-law enforcement markets; whether the
Company and iMatte will consummate the proposed transaction
and do so on the proposed terms; whether the Company will have
sufficient capital to close such transaction; whether the SightDeck
IP platform will enable the Company to enter new commercial market
and increase its sales and recurring revenues in such markets;
whether the Company will be able to develop and integrate the
SightDeck IP with its video and software technology
successfully; whether the SightDeck technology, paired with
Digital Ally's video and software products, will establish a new
technology foundation for interactive video annotation and
presentation; competition from larger, more established companies
with far greater economic and human resources; the effect of
changing economic conditions; and changes in government
regulations, tax rates and similar matters. These cautionary
statements should not be construed as exhaustive or as any
admission as to the adequacy of the Company's disclosures. The
Company cannot predict or determine after the fact what factors
would cause actual results to differ materially from those
indicated by the forward-looking statements or other statements.
The reader should consider statements that include the words
"believes", "expects", "anticipates", "intends", "estimates",
"plans", "projects", "should", or other expressions that are
predictions of or indicate future events or trends, to be uncertain
and forward-looking. The Company does not undertake to publicly
update or revise forward-looking statements, whether because of new
information, future events or otherwise. Additional information
respecting factors that could materially affect the Company and its
operations are contained in its annual report on Form 10-K for the
year ended December 31, 2016 and quarterly report on Form 10-Q for
the three months ended March 31, 2017, as filed with the Securities
and Exchange Commission.
Contact Information
For Additional Information, Please Contact: Stanton E. Ross CEO
(913) 814-7774 or Thomas J. Heckman CFO (913) 814-7774
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