US Lighting Group, Inc. (OTC: USLG) manufactures and markets LED lighting products and automotive aftermarket LED dials and gauges, boasting one of the most cost-saving replacements to ordinary fluorescent 4ft bulbs that are now carried in Home Depot (NYSE: HD) stores and its automotive gauges are sold in Wal-Mart (NYSE: WMT). But its wholly-owned subsidiary, Intellitronix, Inc. is an engineering firm which is rising to the forefront, having secured the exclusive rights to a service robot for the U.S. and USLG is not sitting still, garnering HUGE attention from network television.
Promobot has been dancing its way into the marketplace and while USLGs robot was geared toward programing for the service arena, Intellitronix engineers have been reprograming Promobot and have entered into an agreement with a local school district to supply a weapons detection robot, though terms of the deal were not disclosed.
Intellitronix President cares about school safety and quality education, that’s why the Company announced that it was going to work with a local Ohio School under the STEM program (Science, Technology, Engineering and Math).
“By supporting our Schools’ Innovation program through a robotics curriculum, Intellitronix will be giving our children a hands-on, real-life experience in innovative technology.” said Intellitronix CEO, Paul Spivak. “As our curriculum at Willoughby-Eastlake is being developed we look to offer the robotics program to more schools throughout Ohio and beyond.”
STEM is a curriculum based on the idea of educating students in four specific disciplines — science, technology, engineering and mathematics — in an interdisciplinary and applied approach. … This also addresses the inadequate number of teachers skilled to educate in these subjects.
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There’s Money in Robotics
Robotics is a developing industry, but robots that can patrol, identify weapons and notify authorities is fast becoming a priority. That’s why USLG engineering subsidiary, Intellitronix, filed a patent on its weapons detection robotic capabilities. Still, the market for service-oriented robots is maturing.
According to Tractica, the global market for customer service robots will exceed 23,000 units by 2022. The sectors of customer service robotics growth will be in retail, travel, hospitality, financial services and healthcare. Tractica is forecasting $451 million in cumulative revenue in that period.
Yet you have to admire USLGs outlook, what the market wants is weapons detection and so far, none of the other robotics companies can deliver.
So why US Lighting Group when it comes to weapons detection robots, they’re a lighting manufacturer. A search on Google for ‘weapons detection robot market’ reveals one company grabbing all the search engine listings on the first page– you guessed it, USLG. And why is that? Perhaps partially due to Intellitronix’ patent protection.
According to a CNN news article, the US has had 57 times as many school shootings as the other major industrialized nations combined. Since 2009, there has been 288 school shooting in the U.S. So far this year, there has been an average of one shooting per week and while gun control advocates say curbing firearms ownership will help, Intellitronix believes weapons detection is at the forefront of curbing shootings – both in schools as well as other commercial applications.
But let’s take a look at USLG’s basic Promobot unit, to get a better understanding of how Intellitronix was able to advance engineer the robot for weapons detection applications.
It uses artificial intelligence to determine differences between men and women, age range, and has the capability of facial recognition up to 5,000 people. Its responses are customizable as well. Based on the current success of Promobot’s features, Intellitronix is now working on pattern recognition and inferred scanning technology to help its weapon detection endeavor.
So, if robotics can’t get your blood flowing, perhaps USLGs LED lighting will.
According to a report by a division of TrendForce Corp. (LEDinside), the LED lighting market grew to 36% of the market in 2016, compared to 31% the prior year, or $30.5 billion verses $25 billion in 2015. Joanne Wu, LEDinside assistant research manager, stated that “sharp price declines have severely impacted the margins of replacement products such as LED light bulbs and light tubes. Consequently, lighting companies begin to shift their focus to professional lighting markets.”
USLG could approximately $3.0 million in sales annualized though their Ohio-based manufacturing facility (which is fully automated) and appears to be more-than capable of increasing production, once sales catch up with this now-public company.
US Lighting Group went public via merger in July 2016. At that time, the exuberance of being a public company saw USLG’s shares trade at $0.50. Now the stock is trading in the $1.00 range as investors await more news on its robotics activities.
USLG acquired Intellitronix Corp in Dec. 2016, a company whose automotive LED lighting products fits with LEDinside’s report which noted that manufacturers are shifting to professional lighting markets. Intellitronix manufactures and markets a host of LED automotive products for such brands as Jeep, Monte Carlo and El Camino vehicles. On August 22, 2017 USLG announced that Intellitronix inked a deal with Kawasaki to supply the motorcycle manufacturer with a bulk order of custom designed LED Speedometers and wiring harnesses, which has since been filled. While USLG didn’t specify the forward relationship, Financials Trend expects Kawasaki to reorder yet this year.
USLG has another business; Highway Guardian, an aftermarket speed limiter system GPS-based device that limits the top speed of a vehicle to 73 mph by safely controlling the fuel injection system. So far, USLG has yet to release any news on Highway Guardian’s sales activities. But with USLG’s entrance into the automotive sector through the acquisition of the Intelltronix brand, news should be forth-coming.
In researching USLG, Financials Trend noted in the disclosure files found on the OTCMarkets website that there were 36.5 million shares issued and outstanding. Insiders own 25.5 million of those shares, giving the ability to call special shareholders’ meetings or conduct actions requiring shareholder approval.
Within the financial statements filed, it shows that USLG is making payments of approximately $78,000 a month on the purchase of Intellitronix, which extends through 2021. That said, it is likely that an equity financing may be in the works or possibly a conversion of that debt. Should USLG convert or cash out that debt, its income would jump to approximately a 5% pre-tax margin. Financials Trend found that USLG pines to eventually list its shares to the NASDAQ and while that may happen we see USLG as a double-bagger, if our readers are patient and get in at the current low of $0.94. We expect USLG shares to continue to rise and with any news on new sales or financing, its shares could climb into the $2.00+ trading range.
We may continue to report on this Ohio-based LED manufacturer of green lighting products as it pursues its plans. Watch for an update shortly.
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