The Ellis Martin Report with Gatekeeper Systems, Inc.
January 7, 2015
TEMR: I'm Ellis Martin. Today I'm speaking with Doug Dyment, the President and CEO of Gatekeeper Systems Incorporated. Trading on the TSX Venture Exchange under the symbol GSI.V. Gatekeeper employs integrated high-resolution video, voice and GPS mapping for extreme mobile applications increasingly vital for the documentation of law enforcement activity as well as other security focused efforts across North America. Doug welcome to the program. How would you define Gatekeeper's market?
Doug Dyment: The security market in general is divided up into a number of segments. All of those segments are expected to grow to approximately 23 billion by 2017. We reside in the mobile market. We define mobile as really anything that is moving. There's 550,000 yellow school buses in North America and there's 30,000 to 50,000 of those buses manufactured every year. There's approximately 120,000 transit buses. There's taxis. There's aircraft, coast guard patrol boats, anything that moves, including law enforcement personnel and security personnel. There's approximately 30 million law enforcement and security personnel that at some point in time will be wearing body cameras.
TEMR: With the recent controversy in areas such as Ferguson, Missouri and New York City, I would imagine that there would be great interest in Gatekeeper's body camera technology across the country.
Doug Dyment: We've just recently introduced a new high-definition body camera. There's been a lot of press in and around the events that have come out of Ferguson that's driving a significant amount of press across the country. Gatekeeper had introduced the high-definition body camera for, not only law enforcement, also security personnel and school districts, prisons, hospitals, corrections, a number of different marketplaces.
TEMR: Let's review another large market that you also address and that you're already seeing success in, school buses and your Student Protector system.
Doug Dyment: The Student Protector is a high-speed license plate reading system that was specifically designed to install on the outside of school buses to detour stop-arm violations. Stop-arm violations occur when a school bus comes to a stop, the stop arm is engaged and children are either boarding the bus, getting on or off. During those times that very dangerous situations can occur and that's when a car will pass that stop arm. In the U.S. this year there's a projected 15 million stop-arm violations. What's happened in the past is that kids have either been hit by these vehicles, there's been deaths that have occurred, near misses. It's really driven new legislation in various states that allow counties or cities to use video from a school bus video system to issue a citation.
TEMR: How does this translate into prosecution of these violations and revenue for the company?
Doug Dyment: Gatekeeper embarked on a development project approximately a year ago to design a unique system that can record a evidence pack whereby when such an incident occurs our system captures the license plate, the vehicle identification, GPS coordinates of where the bus was, but we also record some other metadata that really creates this evidence pack for the county and the city to be used in court to issue a citation. Now the average citation in various states ranges anywhere from $250.00 to $750.00. Literally in a short period of time there's been this new market category that is created that has the potential to grow into a billion dollar market category.
TEMR: And you already have a good footing in the market.
Doug Dyment: We've been in the market for quite some time. We have approximately 3,500 customers in what's considered the kindergarten to grade 12 market. Our technology can be used to increase safety in and around the school buses by detouring these incidents from happening. Depending on what business model our customers choose, one of which the systems are paid for by the revenue that's collected from these citations, the equipment can be free of charge to the school districts. Gatekeeper will provide the equipment, install it on the school buses, manage the entire program and we can share in the revenue with the school district, the country or the city and, of course, ourselves.
TEMR: With Gatekeeper stock at near $0.19 there's potentially a great deal of upside for the possible investor.
Doug Dyment: The last company I was involved in was about the same size as this one. It was eventually bought out by Honeywell for almost $11.00 a share. We believe that we are a great potential investment at these prices. Here's why, Gatekeeper Systems has a wide product line and we're engaged in several markets, one of which is the Student Protector.
TEMR: I've been speaking with the President and CEO of Gatekeeper Systems Incorporated, trading on the TSX Venture Exchange under the symbol GSI.V. That's GSI.V. Contact Gatekeeper at 888-666-4833; 888-666-4833.
Gatekeeper Systems Inc (GSI.V) is a paid sponsor of The Ellis Martin Report
Ellis Martin is a shareholder of Gatekeeper Systems Inc.