SAN FRANCISCO, June 11, 2025 (GLOBE NEWSWIRE) -- Shares in Napco Security Technologies, Inc. (NASDAQ: NSSC) are trading down nearly 21% year-to-date, as the security technology company continues to face heightened scrutiny as it navigates both legal and operational challenges. Most recently, on May 5, 2025, Napco released its third-quarter financial results for fiscal year 2025, revealing mixed performance metrics amid an ongoing securities class action lawsuit that centers on its distribution practices and ...

Core Viewpoint - Xtract One Technologies Inc. reported a decrease in revenue for the third quarter of fiscal 2025 but maintains a strong backlog and positive outlook for future growth, driven by new product launches and significant orders [3][4]. Financial Performance - Consolidated revenue for the three months ended April 30, 2025, was $3.5 million, down from $4.7 million in the same period last year, attributed to delayed deployments [4][7]. - Gross profit for the quarter was $2.0 million, resulting in a gross profit margin of 57%, compared to a gross profit of $2.7 million and a margin of 58% in the prior-year period [4][7]. - Comprehensive loss for the quarter was $3.3 million, an increase from a loss of $2.7 million in the same period of fiscal 2024, reflecting reduced gross profit offset by lower operating costs [5][7]. Backlog and Orders - The total contractual backlog at the end of the third quarter was $15.4 million, up from $13.8 million in the prior-year period, excluding an additional $21.1 million of agreements pending installation [7]. - The company has $6.7 million in orders for its new Xtract One Gateway product, which is set to start shipping in July [3][7]. Operational Developments - Recent wins include contracts with the Colorado Rockies and an international entertainment giant, positioning the company favorably for the upcoming quarters [3][7]. - The company has conducted numerous demonstrations and trials across various sectors, including education, healthcare, and manufacturing [7]. Cash Flow and Financial Position - Cash and cash equivalents decreased to $1.9 million as of April 30, 2025, down from $8.6 million at the end of the previous fiscal year [16][17]. - The company reported a net loss of $8.4 million for the nine months ended April 30, 2025, compared to a loss of $8.7 million for the same period in 2024 [17].

Core Insights - Xtract One Technologies Inc. is set to begin shipping its new security platform, Xtract One Gateway, in July, with an aggregate order value of approximately $6.7 million from at least five different customers [1][2] - The product has received certification in the U.S. and Canada, with plans to enter additional international markets later this quarter [1] - The Xtract One Gateway is designed to enhance security by scanning individuals and their belongings, significantly reducing screening times and improving the overall access experience [2][3] Company Overview - Xtract One Technologies specializes in AI-driven threat detection and security solutions, focusing on seamless patron access control experiences [3] - The company aims to provide unobtrusive weapons and threat detection systems that enhance safety while maintaining efficient traffic flow at entry and exit points [3] - Xtract One's solutions cater to various sectors, including education, healthcare, manufacturing, and distribution, establishing the company as a market leader in security technology [3]

Company Highlights - Cloudastructure, Inc. has been invited to present at the "2025 Virtual Tech Conference" hosted by Maxim Group LLC, with a fireside chat scheduled for June 4, 2025 [1] - Since its Nasdaq listing in January 2025, Cloudastructure reported a 212% year-over-year increase in revenue for Q1 2025, achieved a positive gross profit, and secured its largest contract in the luxury multifamily sector [3] - The company has expanded into the HUD and affordable housing markets through partnerships with nonprofit housing providers and has entered the construction industry with the launch of its Alpha™ mobile surveillance trailer [3] - Cloudastructure's security platform features a scalable cloud-based architecture with AI/ML analytics, offering a lower Total Cost of Ownership by up to 75% compared to other systems [6] Industry Context - The 2025 Virtual Tech Conference will explore the impact of emerging technologies such as Quantum Computing and Artificial Intelligence across various industries, including healthcare, drones, consumer IoT, and gaming [2] - The conference aims to facilitate discussions between senior analysts and CEOs of growth companies, focusing on technology's role in business expansion [2]

Core Viewpoint - Liberty Defense Holdings Ltd. intends to initiate a normal course issuer bid (NCIB) to repurchase its common shares, which has been approved by its board of directors and conditionally by the TSX Venture Exchange [1][2]. Group 1: NCIB Details - The company plans to buy up to 5,142,844 shares, representing approximately 10% of its public float, which consists of shares held by non-insiders [2]. - As of May 30, 2025, there are 51,976,722 issued and outstanding shares, with 548,281 shares held by insiders [2]. - The NCIB will commence on June 5, 2025, and will remain open until June 4, 2026, or until completed or terminated by the company [2]. Group 2: Purchase Mechanism - Shares will be purchased at market price plus brokerage fees, and all transactions will occur on the open market through the TSXV [3]. - The company may not acquire more than 2% of its issued and outstanding shares in any 30-day period [2]. Group 3: Rationale for NCIB - The board believes that the market price of the shares may not fully reflect the underlying value of the business, making share repurchase an appropriate use of corporate funds [4]. - Research Capital Corporation has been engaged as the broker to facilitate the share purchases under the NCIB [4]. Group 4: Company Overview - Liberty Defense provides multi-technology security solutions for concealed weapons detection in high-traffic areas such as airports and schools [6]. - The company’s HEXWAVE product, licensed from MIT, offers modular and scalable protection for detecting both metallic and non-metallic weapons [6]. - Liberty has also licensed advanced imaging technologies, including millimeter wave-based body scanners [6].

Core Viewpoint - Napco Security Technologies, Inc. is facing significant challenges, including a 21% decline in share price year-to-date, amid legal scrutiny and operational difficulties, particularly related to a securities class action lawsuit concerning its distribution practices and sales forecasting [1][2]. Financial Performance - Napco's third-quarter results for fiscal year 2025 showed a 10.8% year-over-year decrease in net sales, totaling $43.96 million, while earnings per share exceeded expectations at $0.36 compared to a forecast of $0.29. However, net income fell by over 23% year-over-year, attributed to inventory reductions by key distributors [2][4]. - The company reported a 25% drop in equipment sales in its February 3, 2025 earnings report, leading to a withdrawal of its 45% EBITDA margin target for fiscal 2026, which resulted in a 26% decline in share price in a single trading session [4][6]. Legal Issues - A class action lawsuit, Patel v. Napco Security Technologies, Inc., alleges that the company's leadership misled investors regarding its ability to forecast hardware demand and maintain margin targets, failing to disclose vulnerabilities in its distribution network [3][5]. - The lawsuit claims that optimistic statements about sales and margins were misleading, leading to inflated stock prices during the class period and substantial losses when the true financial situation was revealed [5][8]. Investigation - Hagens Berman, a shareholder rights firm, is investigating the allegations against Napco, focusing on whether the company misled investors about its sales forecasting and distribution practices [8][9].

Core Viewpoint - Cemtrex, Inc. has successfully closed a public offering, raising approximately $1.25 million before expenses, which indicates the company's ongoing efforts to secure funding for its operations and growth initiatives [1][2]. Group 1: Offering Details - The public offering consisted of 1,250,000 shares of common stock priced at $1.00 per share [2]. - Aegis Capital Corp. has been granted a 45-day option to purchase up to 15% additional shares to cover over-allotments [2]. Group 2: Company Background - Cemtrex, Inc. operates in the Security and Industrial sectors, with its Security segment providing advanced video management software and integrated surveillance solutions [5]. - The Industrial segment offers expert services such as rigging and equipment installation to manufacturers across the nation [5].

Company Overview - Liberty Defense Holdings Ltd. is a technology provider specializing in AI-based detection solutions for concealed weapons and threats [1][4] - The company has developed the HEXWAVE product, which offers modular and scalable protection for high-traffic areas such as airports and stadiums [4] Upcoming Events - CEO Bill Frain will participate in the Lytham Partners Investor Conference on May 29, 2025, and will hold one-on-one meetings with institutional investors [1][2] - A live webcast of the presentation will be available at 4:15 PM ET on the same day [2] Technology Demonstration - Liberty Defense will showcase its HEXWAVE scanning technology at the American Association of Airport Executives (AAAE) event from June 8-10, 2025, in Atlanta, GA [2] - The HEXWAVE technology is already deployed at several U.S. airports and meets the upcoming TSA regulatory requirements for employee screening by April 2026 [2] Marketing Campaign - The company has engaged Native Ads for a marketing campaign with a total retainer of up to CA$200,000, focusing on digital media advertising [2] - The campaign budget allocation includes 75% for costs per click and media buying, and 25% for content creation and optimization [2]

Core Viewpoint - Cemtrex, Inc. has announced a public offering of common stock expected to raise approximately $1.25 million before expenses [1][3]. Group 1: Offering Details - The offering consists of 1,250,000 shares of common stock priced at $1.00 per share [2]. - Aegis Capital Corp. has been granted a 45-day option to purchase up to 15% additional shares to cover over-allotments [2]. - The transaction is expected to close on or about May 29, 2025, subject to customary closing conditions [3]. Group 2: Use of Proceeds - The net proceeds from the offering will be used for general corporate purposes, paying down indebtedness, and working capital [3]. Group 3: Company Overview - Cemtrex, Inc. operates in the Security and Industrial sectors, providing advanced security technology and industrial services [7]. - The Security segment, led by Vicon Industries, offers video management software and integrated surveillance solutions [7]. - The Industrial segment provides expert rigging, millwrighting, and equipment installation services to manufacturers [7].

Core Viewpoint - Cemtrex, Inc. has initiated a public offering of Common Stock and pre-funded warrants to raise capital for general corporate purposes, debt repayment, and working capital needs [1][2]. Group 1: Offering Details - The offering is being managed by Aegis Capital Corp. on a firm commitment basis [3]. - The offering is conducted under an effective shelf registration statement filed with the SEC, which was declared effective on February 3, 2025 [3]. - A final prospectus supplement and accompanying prospectus will be filed with the SEC and made available on their website [3]. Group 2: Company Overview - Cemtrex, Inc. operates in the Security and Industrial sectors, with its Security segment providing advanced video management software and integrated surveillance solutions [5]. - The Industrial segment offers expert services such as rigging and equipment installation to manufacturers across the nation [5]. - The company emphasizes innovation, execution, and strategic growth to enhance safety, efficiency, and value for customers and shareholders [5].