|.73 radar e/r swing to profit, openALPR closing, Firestorm |
Gross profit for three months ended September 30, 2018 increased by $1,956,026, or 99.6%, to $3,919,794 compared to $1,963,768 for the three months ended September 30, 2017, which includes one month of gross profit from Brekford of $135,820. Aggregate gross profit attributable to Brekford and Global for the three months ended September 30, 2018 was $1,466,994. Aggregate gross profit attributable to Legacy Novume for the three months ended September 30, 2018 was $2,452,800, an increase of 34.2% compared to the prior year period.
Letter of Intent to Acquire OpenALPR Technology, Inc.
On September 17, 2018, we entered into a Letter of Intent with OpenALPR Technology, Inc. (“OpenALPR”) which sets forth the parties’ intent to consummate a transaction pursuant to which the we will acquire the assets of OpenALPR. The consideration for the transaction will be approximately $15 million, comprised of cash, or cash and the Company’s common stock (up to $5,000,000 based on a price per share of $5.00), at the election of OpenALPR. OpenALPR is a privately-held Boston, Massachusetts-based company that provides automated license plate reader (ALPR) technology used by both law enforcement and commercial clients. This transaction is subject to closing conditions, including satisfactory completion of due diligence, entry into definitive agreements, and consummation of a financing transaction. We are committed to closing the transaction on or before February 28, 2019.
On October 9, 2018, we entered into a Management Services Agreement (the “MSA”) with OpenALPR whereby we will provide services to support the continued growth of OpenALPR’s platform. These services include sales, call center and customer support, engineering, marketing and website services along with business strategy, contract and other back office functions. The MSA provides for the Novume to receive compensation on a time and materials basis for most services and a commission basis for sales of OpenALPR products.
------------------- "Opportunities multiply as they are seized" -- Sun Tzu circa 500 B.C. -------------------