NGL - Nightingale Intelligent Systems

[System]

Nightingale Intelligent Systems, Inc. provides unmanned aerial vehicles (UAV) for commercial applications. The first application chosen by the Company is physical security. The Company primarily focuses on business verticals of Enterprise, Defence and Emergency Response linked to critical infrastructure.

Nightingale is a U.S. based company and the majority of its business activities occur in the U.S. The Company has also made sales in the EU, Australia, Saudi Arabia, and Brazil. Historically, deployment has occurred onsite at customer locations. With COVID-19 affecting travel, deployment has been successfully completed remotely. In line with this, all customer service to clients comes from the U.S.

The primary verticals targeted are Enterprise, Defence and Emergency Response linked to critical infrastructure locations such as defence sites, data centres and pharmaceutical laboratories. The Nightingale Robotic Aerial Security (RAS) System is an autonomous perimeter security system to guard these critical infrastructure locations.

Since commercial launch in 2018, Nightingale generates revenues in several ways:

•  Product sales: Where Nightingale sells RAS systems (both hardware and software) to customers.
•  Product leasing: Where Nightingale owns a RAS system and leases it for use on 1–3-year contracts.
•  Robot-as-a-Service (RaaS): A service solution that includes the technology platform, maintenance, repair and upgrade (MRU). The purpose of the MRU is to ensure the technology remains up-todate and simplifies operation for customers.

It is anticipated that NGL will list on the ASX during October 2022.

Nightingale Security | Robotic Aerial Security

Fully autonomous, 24/7 physical security drone systems equipped with real-time aerial surveillance cameras & data gathering sensors.

www.nightingalesecurity.com

 

[Dona Ferentes]

Listing date	24 October 2022 ; 11:00 AM AEDT ##
Company contact details	https://www.nightingalesecurity.com/ Ph: +1 408 909-7227
Principal Activities	Development and sale of Unmanned Aerial Vehicles for commercial applications. The first application chosen by Nightingale is physical security.
GICS industry group	TBA
Issue Price	AUD 0.22
Issue Type	CHESS Depositary Interests
Security code	NGL
Capital to be Raised	$6,000,000
Expected offer close date	11 October 2022
Underwriter	Not underwritten. Novus Capital Limited (Lead Manager).

 

[verce]

Investment Themes: Artificial Intelligence/Machine Learning/Robotics/Security

Current Market Cap: Approximately 5 million AUD

Top 20: Own 58% of approximately 133 million shares on issue.

Management:

Jack Wu (Co-founder and CEO with 4.25 million shares) – previously, Jack was hired by Carl Page (the venture capitalist brother of Google co-founder Larry Page) and was employee number three in a startup called “eGroups, Inc” which was acquired by Yahoo! in August 2000 for approximately USD 432 million.

John Hsu (Co-founder and CTO with 4.25 million shares) - former SpaceX engineer who received his Ph.D. in Aeronautics and Astronautics from Stanford University in 2004. His doctoral dissertation work includes novel numerical algorithm development for solving complex unsteady transonic flows and coupled aerodynamics. Upon completion of his Ph.D., John worked at SpaceX on Falcon's navigation system, developed aerodynamics and structural coupled loads analysis simulations, and performed orbital trajectory optimization analysis.

Additionally, at Willow Garage, John was responsible for defining the vision for the autonomous car project.

What is Willow Garage I hear you ask?

https://en.wikipedia.org/wiki/Willow_Garage

Willow Garage hired its first employees in January 2007: Jonathan Stark, Melonee Wise, Curt Meyers, and John Hsu. The company was best known for its open-source software suite Robot Operating System, which rapidly and widely become a common, standard tool among robotics researchers and industry. It was begun in late 2006 by Scott Hassan, who had worked with Larry Page and Sergey Brin to develop the technology that became the Google Search engine.

The NGL Competitive Advantage:

NGL’s flagship product is its AI-powered Blackbird Security Drone (which includes a Base Station and Intelligent Mission Control Software). NGL customers typically have large facilities or jurisdictions with potentially thousands of acres / square miles to patrol. In these scenarios, human security guards struggle to physically inspect the entire perimeter – even when they are able to drive around using vehicles.

It is also cost prohibitive to install cameras everywhere when your perimeter is miles long. This is where NGL’s patented technology platform comes in – it is capable of solving large perimeter patrol requirements autonomously and rapidly responding to incidents when required. The product is very well tailored to respond on a moment’s notice – whether that be in response to a gunshot or a 911 call – this drone is the new first responder.

Why is a speedy response time important? Fast response times reduce liability and the ability to cause further harm. Indeed, in the case of the recently signed San Pablo Police Department (Announced 11 September 2023), the drone has the ability to broadcast a live video feed to responding officers, who are able to determine what is going on before they even arrive. No more guesswork or police going in blind to potentially dangerous situations – drones are a tremendous capability for law enforcement and this uptake will almost certainly continue.

NGL’s other unique appeal is the combined hardware and software solution that stores and analyses data using edge computing. That is, the data collected is stored in the drone and in the base station – it is NOT shared on the cloud like most ‘drone-in-a-box’ competitor solutions, and is completely air gapped able to function WITHOUT any internet.

Why is this important? High-profile customers–such as the US Air Force, US Police Departments, any critical infrastructure vendors–are acutely aware of the modern cyber security threat landscape. This is a key differentiator of the NGL patented solution. Furthermore, being edge based and having the data stored inside the base station at the customer’s location enables NGL to continue to operate even if all other power and networks are out.

___

Disclosure: Holding

 

[Dona Ferentes]

ah, one of those.

.
Nightingale completed its ASX IPO on 18 November 2022. Gross proceeds were approximately $3.4M (approximately AUD$5.0M) before transaction costs. Most transaction costs were disbursed in 2022 although certain costs were, and will continue to be, disbursed in 2023.

The Company has cash balances of $0.3M at June 30, 2023.

Accounts receivable, net, is $0.3M.
.....
.......can you feel it?

 

[verce]

Do you think it is done for Dona? I figured it has the potential to bounce back with the right news.

 

[divs4ever]

i saw US military and Halliburton and felt the urge to move on , was that the feeling ?

 

[divs4ever]

Do you think it is done for Dona? I figured it has the potential to bounce back with the right news.

now this company might be different , but looks a lot like a company that would be sucked dry by the big and powerful customers ( head-hunting key staff , tricking them in extra research on something the customer is already working on ( probably with their patent pending )

now if you are TRADING ... being nimble looks very important ( you want to right in front of the line when it hits your exit price

i watched WOW ( on the ASX ) do that to several small caps

 

[verce]

It definitely doesn’t have the liquidity to try and trade. I think the founders are experienced enough to navigate the marketplace without being hoodwinked by customers. BUT, it’s definitely not out of the realm of possibility.

What they need to do is land more contracts with customers ASAP and get the momentum going.

Share price is down to 5 cents from 20 cents just under a year ago.

 

[verce]

Also could you elaborate more on the Woolworths anecdote?

 

[divs4ever]

well Woolworths formed agreements with Hil ( Hills Industries ) ECG ( Ecargo ) and GRB ( Gage Road Breweries , now GDA or Good Drinks ) how are they doing now , one would think the contracts with WOW would like riding on a coat-tail , but the share-prices tell a different story , one time well that could be just a poorly run business but three within 10 years

what happens is WOW puts on strict demands , and wants a big share of the profits/discounts and wow has all the pricing power

( BTW i worked for wow in the early '70s so have seen how they operate up close ... they were the no. 2 chain back then )

 

[divs4ever]

It definitely doesn’t have the liquidity to try and trade. I think the founders are experienced enough to navigate the marketplace without being hoodwinked by customers. BUT, it’s definitely not out of the realm of possibility.

What they need to do is land more contracts with customers ASAP and get the momentum going.

Share price is down to 5 cents from 20 cents just under a year ago.

but some of their customers are whales ( or in some cases sharks )

take Metal Storm it had a good innovative product , but the US military wanted more and more parameters before splashing out with the big cash .. Metal Storm went bust waiting for that big contract

with just $300,000 revenue how long before somebody throws $ 1 mill. as a sign-up fee to some bright programmer or hardware designer in the company and suddenly Lockheed Martin or Northrop get the contract to build a 'military-grade version '

and liquidity is light but you just need to be lucky and sitting right up close front of to the line when that buyer says 'yes, please'



you probably want to enter your sell target early and wait to see if the news provides the trend
now if i had of dabbled here , my strategy ( if i wanted to keep some shares ) is to wait until it is up 150% for me and sell 40% of the holding at let the rest ride on the winds of fate ( but your cash is elsewhere )

 

[verce]

but some of their customers are whales ( or in some cases sharks )

take Metal Storm it had a good innovative product , but the US military wanted more and more parameters before splashing out with the big cash .. Metal Storm went bust waiting for that big contract

with just $300,000 revenue how long before somebody throws $ 1 mill. as a sign-up fee to some bright programmer or hardware designer in the company and suddenly Lockheed Martin or Northrop get the contract to build a 'military-grade version '

and liquidity is light but you just need to be lucky and sitting right up close front of to the line when that buyer says 'yes, please'



you probably want to enter your sell target early and wait to see if the news provides the trend
now if i had of dabbled here , my strategy ( if i wanted to keep some shares ) is to wait until it is up 150% for me and sell 40% of the holding at let the rest ride on the winds of fate ( but your cash is elsewhere )

Metal Storm! Now that’s a name I haven’t heard in a long time. Was pretty great technology from memory. Hard to believe it fizzled out like it did. I suspect someone scooped up the tech for pennies on the dollar as you suggest.

As for the founders here - I suspect based on their pedigree and history in successful Silicon Valley startups that they are multi-millionaires many times over now. But that’s just speculation on my part.

It’s definitely not an easy path to recovery, but I definitely think it’s possible with the right milestones. These guys aren’t incompetent or lazy (at least based on their biographies).

Happy to wait and see. Hopefully this doesn’t end in disaster for me.

 

[divs4ever]

Metal Storm! Now that’s a name I haven’t heard in a long time. Was pretty great technology from memory. Hard to believe it fizzled out like it did. I suspect someone scooped up the tech for pennies on the dollar as you suggest.

As for the founders here - I suspect based on their pedigree and history in successful Silicon Valley startups that they are multi-millionaires many times over now. But that’s just speculation on my part.

It’s definitely not an easy path to recovery, but I definitely think it’s possible with the right milestones. These guys aren’t incompetent or lazy (at least based on their biographies).

Happy to wait and see. Hopefully this doesn’t end in disaster for me.

it DIDN'T fizzle , the US military kept on wanting it to do more and more until investor's patience wore out ( and the cash shortly after )

last i heard they wanted a version to fit on the back of a pick-up truck ( next would have been a sidearm that would fit in a holster )

i watched this carefully ( without investing cash ) so when QHL ( Quickstep ) started getting military interest i scrubbed it from my watch-list

the issue is the military want too much at the expense of durability and reliability

wait until you see the F-35s in a real war ( when something close to equal shoots back at them , day after day after day )

for a laugh and an education watch the movie Pentagon Wars ( about the Bradley fighting vehicle )

 

[verce]

Great Quarterly update today from my perspective.

♦ Nightingale is also close to announcing a new contract to supply its Blackbird Drones to the largest police department in the United States

♦ Expansion contract signed with the US Air Force to supply further Blackbird Drones at an airforce base. In addition, another contract was signed in October 2023 for supply of Blackbird Drones at a second USAF base.

♦ Nightingale continued to drive its pipeline of attractive opportunities including contract discussions with a US based mass media and entertainment conglomerate to provide facilities security and steps towards finalising a contract with a well-established global car manufacturer.

♦ Positive operating cashflows during the quarter of $1.38M resulting in net cash from operating activities of $0.46M.

 

[verce]

If they manage to sign on the NYPD or Disney/Warner Bros that would be huge validation in my humble opinion.

 

[verce]

 

[verce]

https://hellgatenyc.com/nypd-drone-czar-surveillence-post-act

The NYPD Drone Czar Wants You to Know One Thing: ‘The Drones Are Great’

At a drones, robotics, and AI summit, the commanding officer said he wished the public felt more positively about the police department's tech-forward mission.

 

[verce]

Mayor Eric Adams has championed police drones in part because he says they save the city money. While flying an NYPD helicopter costs up to $2,200 per flight, he said launching a drone costs just 17 cents. Some drones tethered to police cars can run on vehicle gasoline, Daughtry said.

 

[verce]

The beauty of robots is they are just as alert and effective the 500th time as they are the first time.



Can't really say the same for human physical security who undoubtedly experience fatigue over long shifts and false alarms.

 

[verce]

Cool features I missed in my first post:


COMPREHENSIVE INCIDENT DOCUMENTATION

Our drones offer an exceptional ability to document crime scenes and accident sites from various angles. This data aids in thorough investigation and reconstruction. Additionally, it ensures the preservation of evidence, supporting law enforcement efforts and the judicial process.


SWIFT INCIDENT ASSESSMENT

During emergency situations, our DFR solutions excel at swiftly assessing hazardous environments. For example, in fires, our drones can quickly survey the affected area, identifying hotspots and structural weaknesses. This data empowers firefighters with critical insights, enabling them to devise targeted strategies and allocate resources efficiently.


MINIMIZE RISK TO FIRST RESPONDERS

By deploying drones for initial assessment and surveillance tasks, Nightingale Security reduces the risk to human first responders. Drones can handle dangerous situations, such as entering unstable structures or approaching potentially armed suspects, allowing officers to make informed decisions from a safe distance.