Sector 10 Targets Emergency Response
Sector 10, Inc. (SECI) aims to become the world’s leading provider of mobile and stationary emergency life response equipment, but how does it stack up against competitors and what do its future prospects hold?
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Sector 10, Inc. [[SECI.OB]], a provider of mobile and stationary emergency life response equipment, has three products designed to help during emergencies. The products contain the essential equipment needed for disasters and crisis situations and can be placed near stairways, elevators, transportation thermals and other important places during an emergency.
Among other things, these units feature chemical and biological masks, eye wash systems, iodine tablets, wireless computing for instructions, a web-based controllable camera, battery back-up, sirens, strobe lights, and first aid and supply packs among other things. With a building fire every 60 seconds in the U.S., these types of systems could save lives if installed.
During the fourth quarter of last year, Sector 10 recorded sales of $31,000 and net income of $15,699 after a successful debt restructuring. The company completed the initial sale of two MRU units to a company in San Jose, CA, while two additional units have been ordered for college facilities that have engaged the company’s services.
Sector 10 is also in discussions to place 40 units in high rise buildings in San Francisco with additional opportunities in New York City. Management is hopeful that negotiations may be completed by the end of the fourth quarter with placement of product beginning in the first quarter of the next fiscal year, according to its 10-Q filing with the SEC.
Sector 10 is also in a much healthier financial position after restructuring its debt. The company reported total assets of $1.16 million compared to $480,570 in liabilities. However, the debt restructuring did dilute shareholders, with the average conversion price being $0.54 per share. Still, this appears to be a good deal with shares trading at just $0.33 even after today’s run-up.
In the end, Sector 10 remains a risky company with limited sales and cash on its books. Additionally, it may need to raise additional debt or equity funding in order to sustain operations. But, recent sales and the prospects of a 40 unit sale make this company worth watching closely over the coming year. However, prudent investors may want to wait on the sidelines for now.
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