CEO: Mark Kay
About: StrikeForce Technologies is a leading developer of Cyber Security solutions, which help prevent data breaches and Cyber Theft. Its patented products help protect consumers and their families while banking and shopping online, and businesses in “real time” against data loss and breaches. StrikeForce Technologies, Inc. (OTCBB: SFOR) is headquartered in Edison, N.J., and can be reached at www.strikeforcetech.com or by phone at (732) 661-9641 or toll-free at (866) 787-4542.
WSR: Good day from Wall Street, this is Juan Costello with the Wall Street Analyst. Joining us today is Mark Kay, CEO of StrikeForce Technologies. The company trades on the bulletin board and their ticker symbol is SFOR. Thanks for joining us today, Mark.
Mark Kay: Thanks for having me. I appreciate the opportunity.
Juan Costello: Great, anytime. Now starting off, please give us a brief history and overview of the company for some of our listeners that are new to your story.
Mark Kay: Sure and I will keep it short. StrikeForce Technologies Inc. is a company that has software that prevents identity theft. We are all about doing the research and developing these new products and using the channel market as a way of distributing our products across the globe actually. And we have – it’s been very, very exciting because we have had the Out-of-Band Authentication as our main product since 2005. It’s now expanded greatly and we have various patents for that product now, as well as we have taken our keystroke encryption product into, you know USB PCs and started out like in 2008.
And now we have a Mac version, we have mobile version that I will talk more about and it’s starting to gain a lot, a lot of strong interest in the marketplace as the anti-virus programs are gaining, are being finally recognized as not really protecting anything these days in terms of malware. And so we are very excited entering the mobile space is even you know much more exciting and a great opportunity. And in that respect we have got a patent also and many patents pending, so we will get into more detail with the products.
But definitely you know resellers, distributors are starting to get up there, we are starting to get some decent sales, still not where we want to be and definitely see a very high market moving forward.
WSR: Certainly and so yeah, since we last talked about three months ago, you were recently awarded the patent for your keystroke encryption; can you talk about the recent news?
Mark Kay: Sure and actually we also received a second patent since we talked three months ago on Out-of-Band Authentication piece, so that product gets stronger and stronger. But on the keystroke encryption side, we did see receive the patent for keystroke encryption, which is very positive because more and more you know the companies are starting to realize the anti-encryption, I am sorry anti-virus programs are not the answers. And matter of fact I went to a Cyber Security Summit Show, I also went to lately, SC Congress Show, in all these security shows, people are making strong statements that the era of anti-virus is over. You need to figure out how well to stop the malware, because the malware has gotten more sophisticated than the methods of finding them and not get them out. And therefore our keystroke encryption product is gaining great interest because we don’t look for the virus, you can’t find them. The mindset you need to have is assume your computer is compromised, now what are you going to do. And what our product does obviously it encrypts keystrokes, it hides them in a computer that you typed in, so the malware doesn’t get hold of them.
Once again it’s sort of an Out-of-Band method keeping the keystrokes out of their reach. And we have gotten a lot more interest in that space, with a major, major airline company now doing a pilot with us across the globe. We have a couple of new distributors that signed on recently that are looking to use in locations across the globe as well, brand-new to the marketplace and calling us versus us even reaching out to them. And some of this is coming through some of our newer distributors, which we have throughout Europe and Canada, which are gaining some momentum.
So we feel very, very good about that and even more, more exciting is taking the keystroke encryption product into the mobile space. You know we talked about a mobile product called MobileTrust that provides like the one time password capability that talks to our ProtectID Out-of-Band Authentication system. But we have also included keystroke encryption and we pulled out the keystroke encryption piece making it a separate software development kit standalone for all the development teams to use, because we are finding and especially in the healthcare and financial areas people like to write their own applications. They don’t want to outsource it, but they see the opportunity of aiding the keystroke encryption code that we would give them into their software, supported by them as a major step to stopping all the malware moving towards the mobile environment.
WSR: And can you talk about also your recent partnership with SynerComm?
Mark Kay: Sure, we definitely announced a brand-new partnership with a company called SynerComm out in the Midwest. They are a very large distributor in the security space; they specifically specialize in security software products. You know they have helped Juniper Networks and others in terms of gaining tremendous, tremendous sales over 300% more. We have implemented with them, two, well we signed an agreement about a month ago. We implemented a software with them about two weeks ago and they already have us proposal, as with proposals into two, you know sizeable companies that they feel are very strong, they have a good chance of getting our product out there.
So we definitely see that when moving forward in a good way and they just started and they already see the opportunities. And one that, you know another one we will be announcing this week, so I won’t go into details, but another decent sized distributor, this one out in the African continent and you will see in the release already there is some opportunities there. So we are definitely starting to gain the momentum and the strategy we always talked about in terms of building a channel to do the majority of our sales across the globe.
WSR: Excellent and so as you look at the next 3 to 4 months, what are some of the goals and milestones, both short and long-term you’re hoping to accomplish?
Mark Kay: Okay 3 to 4 months is a short timeframe, but I will say over the six months plus, we definitely see these channel partners closing deals, which would increase the revenues finally to show up in our bottom line. You know it always takes a lot longer to get a channel partner on board and a lot longer for them to get their first client on-board, even though that timeframe is speeding up as we have seen with our Silantis partner in Canada.
So we are spending more and more time supporting these distributors, as they bring in more clients, as we don’t have to increase our staff to support them, since they manage and handle all support. So, we see that as I have even mentioned earlier, with our keystroke encryption as an indicator we already have strong interest in that product. You know, we are starting to test now; we see that having a major impact to our revenues in a very positive way next year. This will give us a couple of months to get that cleaned up and close it at least one of the deals and get that out to the marketplace and that all alone, standalone would I think have a major impact.
And then of course we have the various lawsuits out there that people are aware of. And you know we are in full discovery on one of them and we sort of more starting to lead to some results that we feel will also be additional revenues into the following year, especially as we get more patents along the way. So we are looking for 2014 to be a very strong year, finally getting the distributors to a point where we are seeing that to bring in some revenues and make a major difference in terms of the bottom line of StrikeForce technologies.
WSR: And as far as investors and the financial community are concerned, Mark, do you believe that the company story and your message are completely — and upside are completely understood and appreciated by them now as you continue to put out more news and milestones that are now what you wish investors that are said about the company?
Mark Kay: Well it’s a key point, we have had — I have talked to a lot of investors recently and a matter of fact, we put out a request to some of the investors, who will say, well how come we are not doing better, to come in and make, help make a difference. So we have gotten two investors involved with the company, actually helping us with sales and hopefully helping to make a major difference of moving that forward, especially on the consumer side that we not had the time to concentrate on. The key to investors are the products are still excellent, the market is moving more and more towards looking for our products as the malware increases, as the antivirus programs starts showing their inability to stop them.
As the regulations get stronger, more and more people are moving towards other methods of authentication other than the tokens, which we offer anyway. And definitely for solutions other than anti-virus such as keystroke encryption and that alone with the patents, it can only get stronger. Yes it’s taken a lot longer than we anticipated; it’s taken a lot longer than most people have patience for. But we still see it happening, we still see the opportunity, we still see that the opportunity of being cash flow positive in 2014 is there, which would allow us to stop taking on these additional investments which of course have alluded us in a large way that over time should not be necessary.
And that’s when you should see some major upswings and changes, but with no way of predicting when that is, other than it is moving in that direction.
WSR: Great and so once again joining us today is Mark Kay, the CEO for StrikeForce Technologies trading on the bulletin board, their ticker symbol is SFOR. And before we conclude here, Mark, currently why do you believe investors should consider the company as a good investment opportunity today?
Mark Kay: Well, definitely we are clearly at a low point in the stock market, and we don’t — we have all positive news in front of us. The issue has been timing; the timing looks like it’s starting to move in that right direction. So the upside should be quite a strong opportunity and you know, we are still working harder than ever in seeing the product starting to gain greater momentum. And definitely, also our plan is still to be bought out product by product or by company and seeing that Microsoft buying PhoneFactor and then IBM buying Trustier which is also doing some keystroke encryption. We definitely feel, we are in the right market to get board out, as we grow in our revenues and our client lists. So we feel very positive and there is multiple ways here to grow, gain momentum and the only opportunity is up.
WSR: Well, we certainly look forward to continuing to track the company’s growth and report on your upcoming progress. And we would like to thank you for taking the time to join us today, Mark and update our investor audience on StrikeForce Technologies and GuardedID it’s always good to have you on.
Mark Kay: And Juan, thank you so very much, I appreciate the opportunity to speak out.