PositiveID Corp (OTCMKTS:PSID): Strong Growth Through Acquisitions

PositiveID Corporation (OTCMKTS:PSID) is a life sciences tools and diagnostics company with an extensive patent portfolio. PositiveID develops biological detection and diagnostics systems, specializing in the development of microfluidic systems for the automated preparation of and performance of biological assays. PositiveID is also a leader in the mobile technology vehicle market, with a focus on the laboratory market and homeland security.Presently, one of the Company's most significant products, the Firefly Dx, is a real-time, handheld molecular diagnostic system that utilizes a proprietary polymerase chain reaction (PCR) automated pathogen detection system, which can be used in the field for biological threat and infectious disease detection without the use of cumbersome lab equipment. Founded in 2001, PositiveID has amassed an impressive list of customers and partners, including The Department of Homeland Security, NASA, and the US Department of Defense, among others. In December of 2015, the Company acquired ENG Mobile Systems (“ENG”) and Thermomedics. PositiveID made the transition to a multi-million-dollar revenue generating company and appears to be off to a strong start this year. There have been some very interesting developments at PositiveID recently, including, but not limited to the following:

• On August 29, 2016, the Company announced that it, in conjunction with its partner, ENSCO, Inc., has been awarded a Phase II contract under the SenseNet Program from the U.S. Department of the Interior on behalf of the U.S. Department of Homeland Security Science & Technology Directorate. The goal of the SenseNet Program is to implement faster, less expensive bio-threat detection systems to increase the effectiveness of current systems and provide an added level of security.
• On August 26, 2016, PositiveID announced it had completed the acquisition of thermomedics and the Caregiver non-contact thermometer. Under a management services and control agreement (the “Control Agreement”), PositiveID assumed full operational control of Thermomedics in December 2015. PositiveID has now completed the acquisition of the capital stock of Thermomedics and terminated the Control Agreement. Since assuming control of Thermomedics, the Company has expanded the distribution channel for Caregiver with several new healthcare products distributors, and has also revitalized sales and marketing efforts, with several significant opportunities in the pipeline.
• Revenues rose to $1.8 million, up sequentially and also well ahead of second quarter of 2015 revenues of $51,000, with growth primarily attributable to the Mobile Labs business at recently acquired ENG. As a result, revenue in the first half of 2016 came in at $3.5 million and is on pace to beat the own Company’s guidance of $5-6 million.

Importantly, management provided positive commentary about PSID's pipeline in its results press release. Chief Executive Officer, William Caragol, stated that both ENG and Caregiver® have "strong and improving pipelines and backlog." One of which may be the Caregiver® infrared thermometer, which Caragol stated had several opportunities that "could yield significant growth" in the second half of 2016 and going forward. PositiveID has had operational control of Caregiver® but recently completed the capital portion of this acquisition, finalizing the transaction.The development of Firefly also continues to advance. Management updated the timing of field units estimated to be in early 2017, with possible FDA submission in 2017 as well. The key with PositiveID’s Firefly Dx prototype system is that it’s a handheld, fully automated, lab quality, real-time device able to detect bio-threats at the point of need. Currently, PCR tests are run on large lab equipment and take a minimum of four hours to deliver results. A design advantage of Firefly Dx is that it does not require additional equipment or separate steps for sample preparation and purification, unlike current lab-based equipment, thus reducing time to results as well as cost per test. In addition, there is significantly less chance of sample contamination compared to existing testing methods. The Firefly Dx prototype system has also successfully detected a number of other pathogenic organisms including E.coli, influenza, MRSA, MSSA, C. diff and othersCurrently trading with a market cap of $1.2 million, PSID is an exciting story among small caps. In our opinion, PositiveID’s shares, trading today for a little more than $0.05, are poised to be significantly higher next year. We will be updating our subscribers as soon as we know more. For the latest updates on PSID, sign up below!Disclosure: We have NO position in PSID and have NOT been compensated for this article.