- Signal has four major categories of technology: Military Defense Applications; Bio Medical Applications; Cyber Security; and Analog Encryption.
- For the first 9 months of 2020 Signal Advance had revenues of $6,302,000, and net income of $6,268,000.
- The balance sheet as of September 30, 2020 shows cash of $4,217,459, total assets of $9,705,648, liabilities of $14,400, and shareholders’ equity of $9,691,248.
- Withrevenues and a strong balance sheet, investors need not worry about thecontinuing operations of Signal.
Signal Advance, Inc.—OTC: SIGL (“Signal,” “SA” or the “Company”) is a company which had no revenues or net income until just recently. What makes the Company very interesting is its technology which detects signals and advances them in order to be used more rapidly. In this article only Bio-Medical Applications and Cyber Security will be discussed. In a future article Military Defense Applications and Analog Encryption will be discussed. The following summary is taken from Signal’s website:
Sensors are used to detect various physical or physiological properties (e.g. pressure, temperature, speed, heart rate) and convert these properties into analog electrical signals. Typically, these signals are then digitized and processed to generate an output which can be used for monitoring, intervention, process control or similar functions.
SA technology acts to temporally advance the detection of these analog electrical signals and thereby offset or even eliminate circuit transmission and/or processing delays in responsive (control or interventional) systems. This technology can potentially improve the performance of a wide range of devices that process analog signals in areas such as industrial process control, interventional medical devices, alarm/detection systems, flight and vehicular control, as well as military targeting and weaponry.
Signal has developed and filed patents for a system for advancing the detection of electrical signals from medical devices to accelerate the timing of their response to medical events. This technology can be used in medical devices. For example it can be used in pacemakers and implanted cardioverters (“defibrillators” or “ICDs”) There are approximately 3 million people with pacemakers worldwide and each year 600,000 pacemakers are implanted. In the United States approximated 800,000 people have ICDs and there are approximately 120,000 ICDs implanted every year. Therefore, there is a significant market for Signal’s technology for cardiac care. See Signal’s website
SA applies its proprietary technology to transform cybersecurity and virtually eliminate remote hacking. Annual losses from hackers is about $6 trillion. With Signal’s proprietary technology these losses from remote hacking can be virtually eliminated. For more information read Signal’s news release dated March 9, 2021 and visit Analog Guard website.
Cybersecurity is based on Analog Encryption (as opposed to digital encryption). With analog encryption, the remote hacker doesn’t see 1s & 0s but instead ends up seeing analog waveforms. Thus remote hacking is virtually impossible unless the hacker knows exactly how the 1s & 0s were converted to this very complicated analog signal which integrates multiple analog methodologies and then implements Signal’s technology to time-shift portions of the signal in this already complicated signal.
September 30, 2020 Financial Information
For the first 9 months of 2020 Signal had revenues of $6,268,000 and net income of $6,268,000. You will also see a very solid balance sheet with no debt and cash of $4,217,459, total assets of $9,705,648, liabilities of $14,400, and shareholders’ equity of $9,691,248. To read the September 30, 2020 financial statements go to OTCMArkets SIGL and click on “Quarterly.”
There was an article written about Signal that had the intent of casting doubt on the viability of Signal, and cast doubt on Signal surviving as a going concern. From my reading of the financial statements I do not believe investors need to worry about the continuing operations of Signal.
What is the value of Signal?
With only 9 months of profits being reported and no previous history of income or projections of future income, it is impossible to value Signal based on income. Probably the best way to value the Company is to look at its technology. I invite readers to go to Signal’s website and to the Analog Guard website and read about the technology. It appears the technology is valuable and has a very good future. Therefore Signal may be worth a lot more than its current $104 million market valuation based on the March 16 2021 closing price of $2.71 for its stock.
With a strong balance sheet, revenues, and net income, investors need not worry about the continuing operations of Signal. Investors need to decide if the technology has a good future. Depending on the evaluation of the technology Signal may be fairly valued at $104 million. However more realistically, Signal may be fairly valued at $500 million. It all depends on the value of the technology and the prospects for the future of Signal’s profitability.
I wrote this article myself on March 16, 2021, and it expresses my own opinions. I am not receiving compensation for it. I have no business relationship with any company whose stock is mentioned in this article.
Analyst's Disclosure: I am/we are long SIGL.
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