PSID Reports Strong 2Q16 Revenues of $1.8 Million, up from $51,000 in 2Q15; E-N-G Systems Driving Operating Results

E-N-G Systems will continue to drive revenue growth in 2H16 and 2017. The Company also increased its gross profit to $636,000 in 2Q16, a significant increase from $5,000 in 2Q15. This growth was primarily driven by the Company’s December 2015 acquisition of E-NG Mobile Systems, Inc. Looking forward, we anticipate E-N-G systems revenue to continue to show significant growth in FY2016.

PSID continues to develop the Firefly Dx product, a hand held point of need molecular diagnostic system that delivers results in under 30 minutes. Using advanced molecular diagnostic technologies and real-time polymerase chain reaction (PCR) chemistry, Firefly Dx will deliver lab quality results faster and more cost-effective than competing real-time PCR solutions. The cartridge based system is projected to be completed and launched in the second half of 2017 and when completed, will be faster, fully automated and far less costly than existing lab based testing.

The key innovation of the Firefly Dx system is the use of microfluidic technology to automate, increase the effectiveness, and reduce the time needed to process samples. Current real-time PCR systems utilize a complicated and time consuming process involving significant amounts of labor and robotics technology. Firefly Dx processes these samples autonomously in 30 minutes within a fully contained and disposable microfluidic cartridge. For more information on the product, please read the full research report:

We are maintaining our 30-month target price of $0.54, valued using a 1.5EV/S multiple applied to our 2019 sales estimate of $27.6 million. A 1.5x EV/S multiple values PSID below the low-end of its peer group and we believe that a discount is appropriate, given that PSID is a much smaller company relative to its peer group and is not currently generating net profits. Going forward, we expect revenues to continue to grow in the E-N-G segment of the business. The Company has publicly stated revenue guidance of $5-$6 million for FY2016. This is primarily from the E-N-G segment, and we expect revenues to accelerate beyond this time period due to revenue increases from Caregiver Non-Contact thermometers and Firefly Dx. With multiple distributors added by the company to distribute the Caregiver Non-Contact thermometers, we expect revenues from this segment to increase in in 2H16 and 1H17. The Company also expects to launch Firefly DX in 2H17. We expect these potential revenues to begin significantly increasing revenue in 2H17 and 1H18.

Auditor: Salberg & Co.

Legal: Sichenzia Ross Friedman Ference LLP

PositiveID Corporation
1690 South Congress Avenue
Suite 201
Delray Beach, Florida 33445
(561) 805-8000

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RedChip Companies Inc.
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(407) 644-4256
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