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Technology Stocks : USHG / Ionatron -- Ignore unavailable to you. Want to Upgrade?

To: ray_gun_joe who wrote (4)	4/20/2004 10:12:02 PM
From: ray_gun_joe	Read Replies (1) \| Respond to of 41

3/30 Investor Call Transcript (Part 3 of 4) Kevin: What types of revenues do you have, if you mind? Howard: I can’t really go into that. But we can say we have several contracts with various government agencies including the line item through Congress. Kevin: Can you give me any kind of time frame when you might see contracts with your technology with the police department or any other kind of departments? Howard: No, we have no current plans to address that market at this time. Chris (Lehman Brothers): The bulk of my question was answered. I just wanted to know about commercial applications. But if I can expand on that, I understand this to be you shoot the laser, it disables the vehicle. Is it lethal if it hits a person? How does that technology works where the people are not killed in the vehicle or is that an issue for this technology? Thank you. Howard: We cannot comment on that. Oh, one second. Dearmin: I think if you go back to our initial press releases, you’ll notice that it’s non-lethal or lethal. That’s about all we can comment on that. Sheela Horowitz (Smith Barney): Hi, I just have two questions. One is, can you without breeching security give us an indication of the size of the device? And is there special training required to operate it? Dearmin: I’ll answer the first part of that. The current technology goes on to platforms that are currently vehicle size, like a humvee or a van or something in that range. We have a program that we are internally working on that will take some time to make it more compact and more cost effective. Sheela: Thank you. And will there be special training required for the people who operate this device? Dearmin: I’m sure there will be, but ultimately, it’s designed to be used by security forces and you try to make it as simple as possible and that is the overall intent. Bill (New Frontier Capital): Good morning. Could you tell us a little bit about the size of the company in terms of the number of employees you have and how large the R&D budget is going to be this year? And has the technology moved beyond sort of simulation in the laboratory to actual prototype phase? Howard: We can’t comment on the number of employees at this time. As far as the use of the technology, as we said in this call, we are now in the process of building prototypes to be tested. Bill: And could you comment on the size of the R&D budget for the year? Howard: No. David Jordan: Two questions. You said you have 9 million dollars. Can you give us an idea of what your burn rate is so we know how long the company can last with the 9 million dollars if it doesn’t raise additional capital or when you might have to raise additional capital? And is this technology any relation to what Nicholas Tesla had proposed? I’m sure you are familiar with that because it seems to be somewhat in a similar realm. Dearmin: On the financial end, I’m not going into the details. We’ll be filing our official SEC documents as per the regulations. And as far as whether, you know, we’re very familiar with Nicholas Tesla work and while it was very interesting, it was many years ago. We do utilize a lot of custom made high voltage sources in our work and we have actually quite a few patents pending in that area on very new novel ways that we get energy into our laser-induced plasma channel. David: Are any of your filings go into, refer to your capital needs or can one concludes when one reads these filings what your capital needs will be so we can make an assumption on the capital requirements? Answer: At this point in time, we don’t have a plan, requirement for a secondary offering or something along those line. David: Or a PIPE? Answer: There are no plans for any additional financing. David: So then you are implying that you have enough capital within the visible time period not to need any capital in the public markets or privately to maintain and grow your business and continue your IR&D? Howard: As far as our current plans are concerned, we do not currently see any needs for that kind of additional financing. John Pearson (JJ Newport): Good morning. I simply was wondering if you could comment on the energy source or sources for these vehicle-mounted electronic guns, I believe you’d refered to them as? Dearmin: It would be completely self-contained on a good example would be a current military-spec’d humvee as all the power generation requirements needed. Mike Richard (Oppenheimer & Company): My question has been answered. Thank you. Derek (Broad Asset Management): Hi guys. Sorry to start with such a boring question, but after the RTO are completed, how many shares outstanding are you going to have? Answer: About 74 million issued and outstanding. Derek: Fully diluted? Answer: Don’t hold me to it, but that is very close to the total number. That’s a good number. I don’t have the exact number right here in front of me, but that’s very much a good number. Derek: Not to sound like a skeptic, but other than your word at the moment, is there anything we can go to as investors and analysts and what not to actually determine if your technology works. Like there are lots of questions out there, which I realize for issues of national security we can’t exactly answer, but is there anything that we can use right now. Dearmin: The only thing we can say is we have demonstrated the technology extremely effectively in our facility and other than that it has been highly placed on security guideline details. Unfortunately, I can’t go into any other explanation than that. I apologize. Derek: Are there any timeline as to when, again as investors, when we may be able to gain greater clarity? Dearmin: As soon as possible. We are currently working with the government on detailed security guidelines. They already have one, which is very restrictive. And hopefully, we get something little less restrictive. They historically do put out their own press releases, and I imagine they will do that when they view time is right. Derek: I know you can understand the frustration of we can’t even know what your burn rate is or how many employees you have in your company, but that’s great. I appreciate the nature of the business. Thank you.