NGL - Nightingale Intelligent Systems
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They have achieved two slightly positive cashflow quarters in a row. With more contracts to come. As per the latest Quarterly.
♦ Nightingale continued to deliver on its pipeline of attractive opportunities by finalising supply contract negotiations with global car manufacturer Volvo and mass media and entertainment conglomerate Universal Studios. Contracts are expected to be executed in Q1 2024.
♦ Nightingale expects to close commercial partnership negotiations in Q1 2024 between the Company and a US security monitoring firm to combine their monitoring services with Nightingale’s Blackbird Drones to provide large corporate and government customers with an attractive total security solution.
♦ Nightingale continued to deliver on its pipeline of attractive opportunities by finalising supply contract negotiations with global car manufacturer Volvo and mass media and entertainment conglomerate Universal Studios. Contracts are expected to be executed in Q1 2024.
♦ Nightingale expects to close commercial partnership negotiations in Q1 2024 between the Company and a US security monitoring firm to combine their monitoring services with Nightingale’s Blackbird Drones to provide large corporate and government customers with an attractive total security solution.
Recap:
Nightingale Intelligent Systems
Ticker: NGL
Price: 0.054
Shares Outstanding: ~133.2 million
Top 20: Own ~58% of shares on issue.
Market Cap: ~7.2 million AUD
Net Cash: ~811,000 USD (~1.2 million AUD)
Summary
NGL is a recently-listed robotics and artificial intelligence security solution, on the cusp of a major automation wave. NGL has now had two positive operating cashflow quarters in a row, significantly mitigating (but not entirely eliminating) the risk of unnecessary dilution. It provides robotic security solutions to customers including first responders, the private sector, and the military. The co-founders and board have a documented history of being involved in successful Silicon Valley startups, and are passionate about technology.
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 the third employee in a startup called eGroups which was acquired by Yahoo in August 2000 for approximately USD 432 million. (Source: https://en.wikipedia.org/wiki/EGroups )
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. Upon completion of his Ph.D., John worked on the Falcon's navigation system, developed aerodynamics and structural coupled loads analysis simulations, and performed orbital trajectory optimisation analysis.
Corporate Strategy:
NGL are currently in a 'land and expand' phase, which is all about getting their foot in the door before scaling up recurring revenue (which they have coined Robot as a Service). They are continuing to secure repeat customers including the US Air Force and prestigious US police departments (including the world’s biggest – the NYPD).
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 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. The drone has the ability to broadcast a live video feed to responding police officers for example, 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.
It also has an exceptional ability to document crime scenes and accident sites from superior angles; can assess hazardous environments like a structural weakness in a burning building (using AI); and can assess dangerous situations from a safe distance such as potentially armed suspects.
Example Police Footage of Nightingale Blackbird Drone in action:
In footage captured by the NGL drone, the suspect is seen climbing out of a second-story window as officers make entry into the home. The drone also recorded the suspect climbing over a fence into an adjacent yard, where he attempted to hide in a trash can. The pilots manning the drone led officers to the hiding spot, and the suspect was arrested without further incident, police said. (Source: https://richmondstandard.com/crime/2022/02/24/drones-help-capture-fleeing-suspect-in-san-pablo/ )
Tailwinds:
In December 2023, the US legislated the National Security Drone Act of 2023, which blacklisted aerial tech from non-US based companies for use in official federal agency work – including NGL’s largest competitor DJI (who, until now, had an uncontested 70% of the global drone market). NGL is perfectly poised to take advantage of these new tailwinds, particularly for securing critical infrastructure. (Source: https://www.flyingmag.com/defense-policy-bill-would-ban-chinese-russian-drone-tech-in-u-s/ )
Furthermore, automation and AI is a ‘mega-trend’. The ultimate purpose of a robot is to reduce human workload and make operations more efficient by handling the repetitive tasks. NGL’s biggest technical achievement over the years (according to prior interviews on YouTube) is reliability. If you don’t have a platform that is dependable, reliable and works all the time for customers – you have nothing. This is why NGL is the best candidate for first responders.
Competitive Advantage:
As mentioned, the NGL drone has been iterated on over many years with millions of dollars sunk into R&D – these are developments and breakthroughs that only occur by going out to tender with real customers in real locations to generate live operational experience. It has flown successfully from places like Germany, to Saudi Arabia, to Arizona.
"The more our drones operate over time, the more they learn about the operational environment so they can better differentiate between threats and nonthreats. It’s kind of like piano lessons; the more you learn, the better player you become."
(Patent: https://patents.google.com/patent/US10303167B2/en )
Keep in mind it is very easy to make a robotic prototype work in a lab or at a conference. It is very difficult to make sure a product works continuously 24/7. NGL does things cheaper, faster, and better than traditional physical security. With this tech acting as a ‘force multiplier’, you can get situational awareness; see in the dark with thermal vision; fly directly to where an incident has been detected; and, broadcast to any personnel using the software application. It is a proven technology. It is a data-gathering, edge-based computing platform – it takes off by itself, lands by itself, and charges by itself.
Conclusion:
NGL has now had two slightly cashflow positive quarters, with more contracts to follow.
Since the IPO in November 2022, NGL has not received much coverage. I think it has been overlooked by the Australian market. It’s a nano-cap in a fast-growing segment (infrastructure security) with an accelerating trend (AI). The company continues to sign new contracts all while conservatively managing its limited cash reserves without resorting to dilution. It is punching well above its weight class, and if you look at its nearest American equivalent (Skydio), that alone has a one billion USD valuation.
So doesn’t 7m AUD market cap seem a little low here?
In the recent Quarterly, we also saw the following items:
♦ Nightingale continued to deliver on its pipeline of attractive opportunities by finalising supply contract negotiations with global car manufacturer Volvo and mass media and entertainment conglomerate Universal Studios. Contracts are expected to be executed in Q1 2024.
♦ Nightingale expects to close commercial partnership negotiations in Q1 2024 between the Company and a US security monitoring firm to combine their monitoring services with Nightingale’s Blackbird Drones to provide large corporate and government customers with an attractive total security solution.
Ultimately, I view this as a very cost-effective way of investing in the ground floor of a Silicon Valley robotics company which we don’t often get access to on the ASX; with demonstrated global potential; backed by very experienced founders and management; who all have skin in the game.
Finally–and I get this question a lot–why is it on the ASX, and not say, the NASDAQ? For one, it is way too small. But it has to list somewhere.
To quote the company:
"Listing on ASX will significantly increase the Company’s credibility, transparency, and ability to represent itself on procurement/tender opportunities given a public listing profile. Additionally, listing on ASX will provide the Company with access to growth capital, institutional investment and will support and accelerate the Company’s growth strategy."
If you take a close look at the Top 20, and follow the money, you'll see a lot of the Silicon Valley VC funds are still holding all their original shares from the company’s point of inception.
As always, please do your own research, generate your own ideas, and I welcome any feedback or critique.
Nightingale Intelligent Systems
Ticker: NGL
Price: 0.054
Shares Outstanding: ~133.2 million
Top 20: Own ~58% of shares on issue.
Market Cap: ~7.2 million AUD
Net Cash: ~811,000 USD (~1.2 million AUD)
Summary
NGL is a recently-listed robotics and artificial intelligence security solution, on the cusp of a major automation wave. NGL has now had two positive operating cashflow quarters in a row, significantly mitigating (but not entirely eliminating) the risk of unnecessary dilution. It provides robotic security solutions to customers including first responders, the private sector, and the military. The co-founders and board have a documented history of being involved in successful Silicon Valley startups, and are passionate about technology.
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 the third employee in a startup called eGroups which was acquired by Yahoo in August 2000 for approximately USD 432 million. (Source: https://en.wikipedia.org/wiki/EGroups )
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. Upon completion of his Ph.D., John worked on the Falcon's navigation system, developed aerodynamics and structural coupled loads analysis simulations, and performed orbital trajectory optimisation analysis.
Corporate Strategy:
NGL are currently in a 'land and expand' phase, which is all about getting their foot in the door before scaling up recurring revenue (which they have coined Robot as a Service). They are continuing to secure repeat customers including the US Air Force and prestigious US police departments (including the world’s biggest – the NYPD).
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 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. The drone has the ability to broadcast a live video feed to responding police officers for example, 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.
It also has an exceptional ability to document crime scenes and accident sites from superior angles; can assess hazardous environments like a structural weakness in a burning building (using AI); and can assess dangerous situations from a safe distance such as potentially armed suspects.
Example Police Footage of Nightingale Blackbird Drone in action:
In footage captured by the NGL drone, the suspect is seen climbing out of a second-story window as officers make entry into the home. The drone also recorded the suspect climbing over a fence into an adjacent yard, where he attempted to hide in a trash can. The pilots manning the drone led officers to the hiding spot, and the suspect was arrested without further incident, police said. (Source: https://richmondstandard.com/crime/2022/02/24/drones-help-capture-fleeing-suspect-in-san-pablo/ )
Tailwinds:
In December 2023, the US legislated the National Security Drone Act of 2023, which blacklisted aerial tech from non-US based companies for use in official federal agency work – including NGL’s largest competitor DJI (who, until now, had an uncontested 70% of the global drone market). NGL is perfectly poised to take advantage of these new tailwinds, particularly for securing critical infrastructure. (Source: https://www.flyingmag.com/defense-policy-bill-would-ban-chinese-russian-drone-tech-in-u-s/ )
Furthermore, automation and AI is a ‘mega-trend’. The ultimate purpose of a robot is to reduce human workload and make operations more efficient by handling the repetitive tasks. NGL’s biggest technical achievement over the years (according to prior interviews on YouTube) is reliability. If you don’t have a platform that is dependable, reliable and works all the time for customers – you have nothing. This is why NGL is the best candidate for first responders.
Competitive Advantage:
As mentioned, the NGL drone has been iterated on over many years with millions of dollars sunk into R&D – these are developments and breakthroughs that only occur by going out to tender with real customers in real locations to generate live operational experience. It has flown successfully from places like Germany, to Saudi Arabia, to Arizona.
"The more our drones operate over time, the more they learn about the operational environment so they can better differentiate between threats and nonthreats. It’s kind of like piano lessons; the more you learn, the better player you become."
(Patent: https://patents.google.com/patent/US10303167B2/en )
Keep in mind it is very easy to make a robotic prototype work in a lab or at a conference. It is very difficult to make sure a product works continuously 24/7. NGL does things cheaper, faster, and better than traditional physical security. With this tech acting as a ‘force multiplier’, you can get situational awareness; see in the dark with thermal vision; fly directly to where an incident has been detected; and, broadcast to any personnel using the software application. It is a proven technology. It is a data-gathering, edge-based computing platform – it takes off by itself, lands by itself, and charges by itself.
Conclusion:
NGL has now had two slightly cashflow positive quarters, with more contracts to follow.
Since the IPO in November 2022, NGL has not received much coverage. I think it has been overlooked by the Australian market. It’s a nano-cap in a fast-growing segment (infrastructure security) with an accelerating trend (AI). The company continues to sign new contracts all while conservatively managing its limited cash reserves without resorting to dilution. It is punching well above its weight class, and if you look at its nearest American equivalent (Skydio), that alone has a one billion USD valuation.
So doesn’t 7m AUD market cap seem a little low here?
In the recent Quarterly, we also saw the following items:
♦ Nightingale continued to deliver on its pipeline of attractive opportunities by finalising supply contract negotiations with global car manufacturer Volvo and mass media and entertainment conglomerate Universal Studios. Contracts are expected to be executed in Q1 2024.
♦ Nightingale expects to close commercial partnership negotiations in Q1 2024 between the Company and a US security monitoring firm to combine their monitoring services with Nightingale’s Blackbird Drones to provide large corporate and government customers with an attractive total security solution.
Ultimately, I view this as a very cost-effective way of investing in the ground floor of a Silicon Valley robotics company which we don’t often get access to on the ASX; with demonstrated global potential; backed by very experienced founders and management; who all have skin in the game.
Finally–and I get this question a lot–why is it on the ASX, and not say, the NASDAQ? For one, it is way too small. But it has to list somewhere.
To quote the company:
"Listing on ASX will significantly increase the Company’s credibility, transparency, and ability to represent itself on procurement/tender opportunities given a public listing profile. Additionally, listing on ASX will provide the Company with access to growth capital, institutional investment and will support and accelerate the Company’s growth strategy."
If you take a close look at the Top 20, and follow the money, you'll see a lot of the Silicon Valley VC funds are still holding all their original shares from the company’s point of inception.
As always, please do your own research, generate your own ideas, and I welcome any feedback or critique.
Dona Ferentes
Abrió la caja, vio al gatito, y sonrió
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has had a bit of a run, but sellers are around.
Yes, very frustrating. Hard to say where it will go next. It's definitely put a damper on things.
This is a great interview with the CEO who is very switched on with a clear vision for the future. An intelligent fanatic.
State of the NYPD 2024
(roughly 26 minutes 39 seconds into video)
- An eye in the sky like we have never had before.
- These tools are terrific for monitoring large crowds, apprehending suspects trying to evade arrest, as well as giving us an incredible vantage point. One that allows our executives to make smart decisions in real-time.
- We deployed a variety of drones in 2023, the value of these drones were on display last summer, when a pop-up gathering in Union Square went viral. The drones gave us a 'birds-eye view' of the growing crowd. We could see we needed a significant number of officers to restore order to the park. Using this vantage point, a plan was quickly developed, and your cops went to work. If we only had the street view, we would not have been able to see or properly assess the situation. The drones allowed us to deploy quickly, to protect property, and to avoid serious injury out there.
https://www.washingtonpost.com/politics/2024/01/04/some-good-news-us-drone-manufacturers/
Some good news for U.S. drone manufacturers
Analysis by Eva Dou
January 4, 2024 at 9:00 a.m. EST
U.S. small drone makers are optimistic about their sales prospects after the annual defense policy bill, which passed last month, included curbs on the federal government purchasing foreign drones.
"We think the total addressable market now for us after last week has gone up at least four times," Jeff Thompson, founder and CEO of the Utah-based drone maker Red Cat, told Tech 202.
The National Defense Authorization Act for fiscal 2024 includes the American Security Drone Act, which prohibits the government from using federal funds to purchase drones made in China or certain other countries starting in December 2025, with the measure in force through December 2028. It also prohibits federal agencies from operating Chinese drones for that duration, unless they have an exemption.
Some good news for U.S. drone manufacturers
Analysis by Eva Dou
January 4, 2024 at 9:00 a.m. EST
U.S. small drone makers are optimistic about their sales prospects after the annual defense policy bill, which passed last month, included curbs on the federal government purchasing foreign drones.
"We think the total addressable market now for us after last week has gone up at least four times," Jeff Thompson, founder and CEO of the Utah-based drone maker Red Cat, told Tech 202.
The National Defense Authorization Act for fiscal 2024 includes the American Security Drone Act, which prohibits the government from using federal funds to purchase drones made in China or certain other countries starting in December 2025, with the measure in force through December 2028. It also prohibits federal agencies from operating Chinese drones for that duration, unless they have an exemption.
Also, with how hot the AI trend is at the moment, it is worth noting that NGL has machine learning algorithms running real-time on the drone to perform object recognition and anomaly detection while the drone is on mission, thereby enabling the system to get smarter as drones fly more missions.
It is something that becomes exponentially more useful as it scales up. Current NGL drones are equipped with NVIDIA GeForce RTX 3060 GPUs for edge computing on the fly. Pun intended.
It is something that becomes exponentially more useful as it scales up. Current NGL drones are equipped with NVIDIA GeForce RTX 3060 GPUs for edge computing on the fly. Pun intended.
@tech/a @Dona Ferentes
Hi guys. If you get a spare moment, I would be very grateful for an updated chart or analysis on price and volume.
Where is all this volume coming from? Is it too early to draw any conclusions? Is it due for a pull-back?
Cheers,
v
Hi guys. If you get a spare moment, I would be very grateful for an updated chart or analysis on price and volume.
Where is all this volume coming from? Is it too early to draw any conclusions? Is it due for a pull-back?
Cheers,
v
Dona Ferentes
Abrió la caja, vio al gatito, y sonrió
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TA is not my forte, a glance at daily chart shows NGL gaining on news, a couple of times. But the volume is pitiful.
if a current holder wants to sell, it could drop just as quickly
if a current holder wants to sell, it could drop just as quickly
I can’t believe I was wrongly under the impression TA was your forte until now!
I thought that was the whole reason you did all the charts for a lot of stocks and the associated commentary!
Can I ask what the point of charting is if you just focus on FA?
@tech/a any chance of additional TA commentary?
Cheers
tech/a
No Ordinary Duck
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Sorry guys I’ve been tied up in other areas I’ll have a serious look tomorrow
All good mate. Keen to hear whenever you get an opportunity. Absolutely no urgency.
tech/a
No Ordinary Duck
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Verce
had a good look at the chart This is at the upper edge of its range (4-6 c )
The high volume with gaps and closes at the top of the range are both encouraging and concerning
due to the pullback on Friday
what is needed is a blast through the top of the range and a consolidation above it.
To me it’s not clear right now but as it resisted at the high of the range I need to see proof of renewed interest
had a good look at the chart This is at the upper edge of its range (4-6 c )
The high volume with gaps and closes at the top of the range are both encouraging and concerning
due to the pullback on Friday
what is needed is a blast through the top of the range and a consolidation above it.
To me it’s not clear right now but as it resisted at the high of the range I need to see proof of renewed interest
Thank you Mr Duck - that is quite interesting. I think there is a half-year report coming out next week so maybe that could be a catalyst.
Cheers!
tech/a
No Ordinary Duck
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There is an old saying
“ buy the rumour sell the fact “
certainly sitting in the bleachers until
it’s clear —- er
“ buy the rumour sell the fact “
certainly sitting in the bleachers until
it’s clear —- er
tech/a
No Ordinary Duck
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Oh, My a pullback on virtually no volume.
Demand has left the room.
Out with the popcorn.
Demand has left the room.
Out with the popcorn.
Looks like a total disaster!
But, it's only small volume as you say. So I wouldn't sweat it too much.
