BII part-owner files S-4 on May 7. Biometric Security Corp., which holds a significant interest in BII (a small IDX competitor) on July 30 intends to (1) relocate from Wyoming to Vancouver (2) have a 1 to 5 reverse split and (3) changes its name, as required by the VSE -- probably to "Safeguard Biometric Corp." In the S-4, it discusses BII and its competition:
"BII is a relatively new business, incorporated in 1995 . . . . As new and growing businesses, both we and BII don't yet generate profits from our operations to cover our day-to-day operating costs and to make investments (such as buying expensive new equipment) that we need to grow our businesses, so we need money from outside sources. In the past, both we and BII have had to sell stock in our companies, and also borrow money, to meet our large and ongoing needs for capital. If we can't continue to raise enough money from these sources, neither we nor BII will be able to grow our businesses. We have invested money in BII, but that won't be enough to keep BII solvent. . . .
"BII's business plan depends on establishing strategic relationships with marketing partners to distribute some of its products. These may include original equipment manufacturers (known as OEMs), systems integrators and resellers. . . . BII DOESN'T OWN, BUT ONLY HAS LICENSE RIGHTS TO, ITS BIO-ID TECHNOLOGY. BII licenses its technology from Arete under an exclusive world-wide license. Only after BII has paid US$1,250,000 of royalties will Arete transfer ownership of the intellectual property outright to BII. . . .
"BII is developing a product line which will allow it to target several key market segments. The Veriprint 2100 and the upcoming Veriprint 1500 will be marketed to the access control and time and attendance markets. In BII's experience, there is aggressive activity by participants in these markets and a growing, forming marketplace. There are also markets where an end consumer identity is not important as BII integrates with OEM and VAR applications. BII believes that function, ease of integration and price drive these markets. BII has developed its Veriprint 1100 to compete in the PC network, information technology and financial transaction areas. BII expects that this is where it will face the bulk of its competition.
"The PC network security market is starting to develop and appears to be ahead of the electronic commerce and point of sale/electronic commerce transaction marketplace, which will take time to put together a solution which works for all involved. In the early stage of electronic commerce, the stand-alone mouse-like product will be a key component, adding functionality to existing installed PCs. In the long run, electronic commerce and security functionality could be integrated into a key board or a lap top and be as common as a mouse is today. These markets appear to be wide open.
"To BII's knowledge, to date there are two companies, Identix, Inc. and Recognition Systems, Inc., who have been the early players in the biometric market area. [Note: IDX has just picked off a key player from RSI.] It is against these companies that BII believes it will be primarily competing in the time and attendance and access control marketplaces. . . .
"Substantially all of BII's product revenues to date have been, and for the foreseeable future are anticipated to be, derived from biometric identity verification ("Bio-ID") products and biometric imaging products. . . .
"BII occupies two administration offices in California, an engineering office in Tucson, Arizona and sales offices in Dayton, Ohio and London, England. A total of 25 employees and consultants operate out of the California offices. A total of 10 employees and consultants operate out of the Arizona, Ohio, and London offices." |
