Electronic monitoring firm reassures govt on its financial viability
While there was some concern recently that the government had signed on to receive electronic monitoring services through SecureAlert Inc., a U.S.-based company that might not be financially sound, SecureAlert revealed in a letter sent to the Ministry of National Security, and obtained byThe Nassau Guardian, that it has successfully improved its net operating losses by 50 percent year-on-year since 2008.
In a report recently issued by the Securities and Exchange Commission in the U.S., the company’s net losses and negative cash flows were said to threaten its future viability. The report suggested that if the company could not raise capital quickly enough to offset operating losses and repay its debts it would have to wind up.
“These factors raise substantial doubt about the company’s ability to continue as a going concern,”said the SEC.
“In order for the company to achieve successful operations, the company must generate positive cash flows from operating activities and obtain the necessary funding to meet its projected capital investment requirements.”
The report, however, pointed out that the company plans to raise capital through the issuance of preferred stock and by expanding its market for its TrackerPAL monitoring device.
And the company’s public and investor relations chief Jeff Peterson toldThe Nassau Guardianrecently that SecureAlert expects to break even by year end and have its first profitable year by fiscal year end 2011.
The letter sent by SecureAlert sought to reassure the government that it had in fact signed on to receive electronic monitoring services with a company that is financially viable and sound. The company’s service will electronically track individuals released on bail from police custody.
“SecureAlert has been in the GPS(global positioning system)tracking business for 15 years and we are the largest publicly traded company in the world exclusively dedicated to offender monitoring and intervention services,”the letter said.
“Specifically addressing the media’s concerns, the reality is that we have been a’going concern’for 15 years, and yet we are still here today to talk about it, continuously improving and investing in world class technology, so that we may deliver the very best offender monitoring technology to the Government of The Bahamas.”
According to the letter, the company has spent, and continues to spend, millions of dollars on technological advancements and improvements in order to build a device that today has a 99.9 percent success rate.
Peterson said the company suffered financial losses following its 2006 start up, after it was found that its devices had a 50 percent failure rate in the field. He said the early contracts received by SecureAlert were subsequently cancelled.
However, SecureAlert now boasts in its letter that it ranks 36 in the Deloitte Technology Fast 500 list of technology firms.
Minister of National Security Tommy Turnquest said the government was extremely meticulous in selecting the provider for their electronic monitoring solution.
He said the service will have a major impact and will ensure that people who are electronically tagged are compliant with police guidelines.