StrikeForce Technologies
(OTCQB:SFOR)
CEO:Mark Kay
Podcast: Play in new window
INTERVIEW TRANSCRIPTS:
WSA: Good day from Wall Street. This is Juan Costello, Senior Analyst with the Wall Street Analyzer. Joining us today is Mark Kay, the CEO of StrikeForce Technologies which trades on the over the counter bulletin board, ticker symbol SFOR.QB. Thanks for joining us today, Mark.
Mark Kay: Juan, thank you very much for the opportunity.
WSA: Yeah, anytime. Now, starting off, please give us a brief history and overview of the company for some listeners here that need to hear your story.
Mark Kay: Sure and I will try to keep it brief since many probably have heard it several times before, but we are a software manufacturing company that produces software that prevents identity theft and the key word is prevent, by the way, because over 90% of most other companies don’t prevent identity theft or stop cyber hacking. They just help you understand it once it’s occurred, so maybe you could do something different in the future. But we’re all about preventing it from occurring. We have two factor out-of-band authentication, which I could talk a little more about which is now being required by the FFIEC for financial firms, being required to a degree by the HIPAA and ePHI in the healthcare space and growing and required in many other areas. We also have a keystroke encryption technology (GuardedID) that is a product that sits on anyone’s PC that prevents keylogger malware from stealing your information. That’s actually become the number one malware issue out there and some interesting points on the anti-virus companies. As well as we’ve talked having products on the mobile sidefinished while they are now all in full beta and very, shortly in full production and looking great with a lot of promise and opportunity.
WSA: Sure and can you bring us up to speed on the recent quarterly results which were particularly good?
Mark Kay: Absolutely. Now the recent quarterly results were at a low end, lower than last year this time. However, a lot has gotten done in this past quarter that hasn’t shown up in the numbers yet. And also it hasn’t been reported yet in press releases, so I can’t get into any detail, but in terms of the mobile products that we talked about it for a while, we kept saying it’s going to be done next quarter, they are done. We have some major players out there already with deals that we’re going to be pushing them out. One of those deals is in the retail sector, which we’ve never been involved before because we didn’t have the money or relationships. But we now have a major distributor in the retail space that we hope to be announcing in the next quarter that has a major deal in TV retail that we expect some very sizable revenues for our GuardedID Keystroke encryption product.
Crossing the multiple platforms it now will in initially run on all Apple and Android mobile devices. We see this as a major step forward towards many other retail opportunities, again, through a company and distributor that has done that for life and has the relationships that we don’t have. So we’re become much more of a manufacturer which is our core competency and less critical for us to setup all the sales in that space. We also have other opportunities in other markets related to sales and marketing that we’re working with other experienced groups that are open to spend a lot of money and really hit those markets real hard on our behalf. People are starting to see the opportunity as huge in the security software arena as more and more industries go online and digital, especially healthcare, have more regulations and requirements of which case we are there, with major solutionsthat become front and center of what people are required and need to do to be compliant and to be secure, especially in the new world of cyber security with all the mobile phones, for which we now have the applications to prevent cyber thieft from occurring in terms of key stroke encryption and stopping keylogger malware.
In addition to that, what even makes these products stronger is, we just received additional patents, so we had two, now we have three patents related to out-of-band authentication. We had one patent for Keystroke encryption, we now have two. Our patents cover our products coverage in the mobile market in addition to the desktop. So if its desktops, laptops and mobile devices, utilizing two factor out-of-band authentication, as well as utilizing any type of keystroke encryption, which is very unique on the mobile side and very conclusive with the patents covering multiple platforms and environments, we have the cyber solution with patents.
So we’re really heading into a very strong lineup with an incredible, team behind us of products and patents and distributors that are starting to take off and we still do believe that this year will be an extremely strong year for us even though it doesn’t show it as strongly in the numbers alone at the end of the first quarter.
WSA: Right and so yeah, since we last spoke, there’s been some big news in the sector. How else is the company positioned to capitalize on some of the recent trends right now?
Mark Kay: Yes, and I could say this because it’s a public article out there. One of the biggest pieces of news is when the CEO of Symantic put out a notice that announcing to their Company and it also went out to the public media that the end of the anti-virus era is dead and we need to think of other ways to make money and move products forward, which many people in the industry have known for a long time because the problems that are occurring real time are not stopped for the most part by the anti-virus programs. They are however stopped by programs like ours, especially when it comes to the keylogging malware issue.
Some of the Verizon data breach statistics that came out recently show that recent 2013 Verizon Data Breach report states that during the last five years of data breaches, approximately 69% of data breaches occurred through malware. If you take those, approximately 89% of them have occurred through keylogging malware and your anti-virus program for the most part doesn’t stop it. Our product for the most part does. So, we’re gaining a lot more momentum, a lot more interest in the marketplace, especially as we expand our GuardedID product including keystroke encryption across the mobile platforms that we haven’t seen anyone else accomplish that yet, let alone we own two patents relating to our products.
So we see that as a major advantage to StrikeForce, especially in terms of healthcare. Everything in healthcare must go digital, must go online, therefore must provide for two factor authentication. The best way and the lowest cost way and the easiest way to do it with the most options, is using a product that provides for out-of-band authentication like our ProtectID®. Even the new Apple iOS 8 that just got announced last week talks about how you can put your kids could do something and it shows up on the parent’s phone and the parent’s phone has to approve it.
And that’s all very interesting and you know, we believe that gives us additional opportunities going forward in terms of the reach of our patents as well, but, who’s to say? So, we feel more and more of the industry’s problems, issues, cyber security discussions, needs for solutions points more and more towards the products we currently have that we keep enhancing. So, we feel like we’re heading towards a major perfect storm, especially now that we’ve added distributors that can get the sales and revenues for us with strong new relationships, have the connections, have the sales expertise and be able to help us where we’ve been obviously not as successful as we could be.
So when you put all things together, you get us concentrating much more on the space of our core competencies around products, research and stronger products and additional patents. We feel like we’re perfectly lined up to be extremely successful and starting this year and showing some positive numbers and most likely break the million dollar barrier this year, minimally based on everything we’ve said above that is going on right now for whichhat we will be producing press releases on as they become official and revenue producing.
WSA: Well good and so in terms of investors as we’ve just talked about some of these security issues being in the news recently, do you think they’re looking more at companies like StrikeForce now?
Mark Kay: Well we would hope so. We do see some increase in trading volume. We do see some greater interest. I do get calls everyday from people trying to give us money that 99% of the time we’re saying no and within three months probably get to say no to most if not all of them. It is our hope that the bleeding on the dilution that’s been going on. We feel what’s the most interesting thing for the investors today is to understand the above, to stay with the stock, to keep looking at it because in three months, I think they’ll be surprised on what’s going to go on here based on the revenues and news we project that should be coming out unless major unforeseeable events occur.
WSA: Sure and once again, joining us today is Mark Kay, CEO for StrikeForce Technologies which trades on the over-the-counter bulletin board, ticker symbol SFOR, currently trading at 0.05 a share and before we conclude here Mark, to recap your key points and why do you believe investors should consider the company as a good investment opportunity today?
Mark Kay: All right and this is a fantastic ending question. If you strictly look at the numbers, you probably wouldn’t be too impressed, but we do have some agreements in place that haven’t been announced that can’t be yet. We do have some deals in place that are being orchestrated and going through due diligence. And the combination of those things related to the future of marketing and sales for this company and the future of retail sales definitely puts us way over the hump and will cause us to most likely not need to get additional funding after another two to three months and that’s not even counting and I didn’t even talk about the patent litigation lawsuits that are out there that are extremely active and obviously potentially highly lucrative in terms of the revenues in for themselves.
WSA: Well, we certainly look forward to continuing to track the company’s growth and report on your upcoming progress and we’d like to thank you for taking the time to join us today, Mark, and update our investor audience on StrikeForce. It’s always good to have you on.
Mark Kay: Well and it’s my pleasure and I hope to be back in three months with some of the specific facts and follow-up on some of the things I’m talking about in this interview.
