January 14, 2014 / Research and Markets forecasts that the non-lethal weapons market will grow at a 5.22% compound annual growth rate between 2014 and 2018 as global defense budgets increase. While large-cap companies like BAE Systems plc (OTC Markets: BAESY) represent a large portion of this market, investors may want to take a closer look at small-cap companies like Lamperd Less Lethal Inc. (OTC Markets: LLLI) given its growth potential.
In this article, we'll take a look at some of the trends in the non-lethal weapons market and how Lamperd Less Lethal is well positioned to compete over the coming quarters.
Video Grows in Importance
Non-lethal weapons are often used by domestic security forces, like police or SWAT teams, that seek to minimize casualties when apprehending criminals. According to a 2006 U.S. Department of Justice report, 26,556 citizens complained of excessive force used by police and law enforcement agencies dish out about $2 billion per year in settlements to resolve these claims.
Many of these accusations could be avoided by recording video of the incident to justify police action. According to a U.K. study, point-of-view video reports dramatically decrease these complaints by as much as 100% in some cases. Constant monitoring could also help improve the behavior of all parties involved in police interactions since everyone knows they're being recorded.
TASER International Inc. (NASDAQ: TASR) announced the launch of its AXON Flex in 2013 to address this market. The mountable point-of-view on-officer video records video incidents to reduce false complaints and lawsuits while improving officer behavior and streamlining workflow. In fact, TASER CEO Rick Smith projects that the technology will soon become standard.
Lamperd Less Lethal has greatly improved their product by including STREAMING live video and audio so the people in charge back at headquarters can see what is going on out in the field and give the officer any advise needed or send help if necessary. The technology is very unique in the fact it can be activated by simply hitting a "crash button" on the front of the vest cam with an arm or hand, instead of having to press a small button that requires the removal of gloves.
Here’s a demonstration of the technology in action:
[EMBED VIDEO: https://www.youtube.com/watch?v=mkMdaz6Bm0M]
Significant Weight Advantage
Many non-lethal weapons users require greater mobility than traditional lethal military weapons. For example, police and SWAT teams operate in urban environments that require rapid deployment and entry into structures. Heavy equipment can impede the effectiveness of these teams, making them less effective and potentially making situations more dangerous.
Lamperd Less Lethal's exceptionally high quality and lightweight launcher systems have gained widespread industry attention for their accuracy, ease of use, and flexibility. Management intends on releasing its latest version of these launchers within the next month which is lighter weight and easier to handle than its prior versions.
The ultra-lightweight 37mm to 40mm launchers are just 4.7 and 5.4 pounds respectively, making the pump-action, magazine fed, 6-shot technology significantly less heavy than competing systems that weigh between 9 and 15 pounds, in addition to the Multi launcher is a single shot that is even lighter 2.6 lbs Given their light weight, these launchers can be carried by police, military, or government security forces on the chest, back or thigh for easy access, currently management expects to finalize an order for 250 launchers within a few weeks.
The upcoming launcher could generate significant demand particularly in domestic security markets both in the U.S. and abroad. In September 2013, the company received invitations from the governments of Oman and Saudi Arabia to demonstrate its full line-up of products including crowd control products, and in March of this year will be traveling back to Oman, to put together those product orders.
The market for non-lethal weapons is rapidly growing and evolving and security forces demand greater accountability and flexibility. Lamperd Less Lethal is well positioned within this market, especially given its new video recording technology and lightweight launchers set to be released in about a month. These catalysts could send the stock higher in the near-term.
For more information, see the following resources:
1. Company Website
2. Launcher Specifications
To be updated on company developments click here:
Lamperd Less Lethal (LLLI) Updates
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