Applied DNA Sciences Inc. (OTCBB: APDN; Twitter: $APDN)

On Monday, CBS New York’s Jennifer McLogan reported on what politicians will see first hand in Albany this afternoon, and what could soon be implemented in New York and at high schools around the country.

Inside the Applied DNA Sciences lab at Stony Brook University researchers are hard at work inventing and perfecting a system that can prevent cheating on SAT and ACT exams.

“A novel system that’s absolutely unbreakable for securing the identity of a student taking the SAT exam,” said Dr. James Hayward.

Applied DNA put out a press release this morning in anticipation of today's hearing which states:

Dr. James A. Hayward, President and CEO of Applied DNA Sciences, Inc. (OTC.BB: APDN.OB - News), has been invited by the Chairman of the New York Senate Higher Education Committee to speak about APDN's digitalDNA™ technology to help block cheating on standardized tests such as the SAT college entrance exam. The Chairman, State Senator Kenneth LaValle, has been pressing for a solution since dozens of individuals were arrested on Long Island last November for paying others to take the tests for them.

At least four test-takers have been accused of accepting cash payments of $500 to $3,600 to take the test for students, largely from Long Island's North Shore schools.

In his testimony, Dr. Hayward will detail how APDN's digitalDNA can aid in preventing a reoccurrence of the cheating scandal.

In a TV interview with CBS News on January 23, Dr. Hayward demonstrated the technology he called "a novel system that is absolutely unbreakable for students taking the SAT exams."

(A video clip of the interview may be found here, the CBS news story here).

The digitalDNA system creates a counterfeit-proof, secure ID card. The card is embedded with infinitesimal molecules of plant DNA segments that authenticate a student's identity in a way that is absolutely uncopyable. The anti-counterfeiting technology also features a scannable printed code, which visually represents the same identity information. Embedded within the iconic code, and in covert locations on the card, is the physical code of digitalDNA. A scan, using a Smartphone or other mobile device, may be done instantly for exam-screening purposes, or at any other point. If deemed necessary, a second level of screening is available: the plant DNA on the card may be swabbed and forensically evaluated; a system well-recognized by courts globally.

All information is sent wirelessly to, and stored in, an ultra-secure internet database in "a private cloud." Applied DNA Sciences is closely affiliated with Stony Brook University's Center of Excellence in Wireless & Information Technology.

In his planned testimony, Dr. Hayward comments:

"Botanical DNA markers transform SAT identification cards into robust evidentiary tools that can assist in criminal prosecution efforts. The challenge is to ensure that actual, eligible, registered participants complete their exams. The goal is preserving exam integrity and maintaining a level playing field for all participants, and the solution is enhanced preregistration in tandem with identity verification before and after exams. We are confident that digitalDNA can assist in achieving the goal of an effective, easy-to-use and affordable system for preventing testing fraud."

Applied DNA Sciences is well-known throughout Europe and the U.S. for using botanical DNA to create very high security anti-counterfeiting systems. Such a system, now being piloted by an agency of the Department of Defense, identifies counterfeit microchips before they make their way into the U.S. military supply chain. Product authentication using botanical DNA has proved to be virtually uncopyable and resistant to the most highly stressed environment -- a must for the military.

APDN has installed its products in Europe and the U.S., protecting banks and ATMs (U.S.), jewelry stores (Sweden), and cash-in-transit strong boxes (UK). Its Signature DNA cash-protection system has won two top policing prizes in the United Kingdom over the past two years for successful work with police in helping secure convictions of cash thieves.

The State Senate hearing on SAT cheating is scheduled for January 24th, between the hours of 12:00PM and 3:00PM Eastern Time in the Legislative Office Building, Hearing Room A in Albany, New York. This event will also be streamed live on the NY Senate, Committee on Higher Education webpage found at: http://www.nysenate.gov/committee/higher-education

The College of Nanoscale Science and Engineering (CNSE) of the University at Albany

Through joint research and development at CNSE's Albany NanoTech Complex, CNSE and APDN will accelerate the development of APDN's SigNature DNA® product. This will include the integration of new methods for DNA deposition on nanoelectronics wafers and computer chips both prior to, and including, final packaging to ensure the integrity and security of processed wafers.

The collaboration comes on the heels of the enacting of the 2012 National Defense Authorization Act. This law will significantly strengthen protections against the wave of counterfeit electronic parts coming into the defense supply system by requiring that military suppliers and government agencies create and implement counterfeit detection and avoidance systems, among many other strict anti-counterfeiting provisions. These new mandates could be enabled through a CNSE-APDN partnership.

In this film, Applied DNA's CEO Dr. James Hayward discusses the reach and scope of this agreement:

Watch more on Film Annex

About CNSE. The UAlbany CNSE is the first college in the world dedicated to education, research, development and deployment in the emerging disciplines of nanoscience, nanoengineering, nanobioscience and nanoeconomics. With more than $14 billon in high-tech investments, CNSE represents the world's most advanced university-driven research enterprise, offering students a one-of-a-kind academic experience and providing over 300 corporate partners with access to an unmatched ecosystem for leading-edge R&D and commercialization of nanoelectronics and nanotechnology innovations.

CNSE's footprint spans upstate New York, including its Albany NanoTech Complex, an 800,000-square-foot megaplex with the only fully-integrated, 300mm wafer, computer chip pilot prototyping and demonstration line within 85,000 square feet of Class 1 capable cleanrooms. More than 2,600 scientists, researchers, engineers, students and faculty work here, from companies including IBM, Intel, GlobalFoundries, SEMATECH, Samsung, TSMC, Toshiba, Applied Materials, Tokyo Electron, ASML and Novellus Systems.

An expansion now underway, part of which will house the world's first Global 450mm Consortium, will add nearly 500,000 square feet of next-generation infrastructure, an additional 50,000 square feet of Class 1 capable cleanrooms, and more than 1,000 scientists, researchers and engineers from CNSE and global corporations.

In addition, CNSE's Solar Energy Development Center in Halfmoon provides a prototyping and demonstration line for next-generation CIGS thin-film solar cells. CNSE's Smart Systems Technology and Commercialization Center of Excellence (STC) in Rochester offers state-of-the-art capabilities for MEMS fabrication and packaging. CNSE also co-founded and manages operations at the Computer Chip Commercialization Center at SUNYIT in Utica and is a co-founder of the Nanotechnology Innovation and Commercialization Excelerator in Syracuse. For information, visit www.cnse.albany.edu.

About APDN. APDN sells patent-protected DNA security solutions to protect products, brands and intellectual property from counterfeiting and diversion. SigNature DNA is a botanical mark used to authenticate products in a unique manner that essentially cannot be copied, and provide a forensic chain of evidence that can be used to prosecute perpetrators. To learn more, go to www.adnas.com where APDN routinely posts all press releases.

ALR Technologies Inc. (OTCBB: ALRT)

Meanwhile, diabetes is becoming a growing problem around the world. By some estimates, 500 million people, or 1 in 10 adults, will have diabetes by 2030. For more information on these trends and statistics, investors can see the following article:

http://www.pitchengine.com/watervilleresearch/500-million-or-1-in-10-adults-will-have-diabetes-by-2030

Undervalued Stock in an Enormous Industry

ALR Technologies has a market capitalization of just $18 million, despite having a late-stage medical device within a multi-billion dollar industry. According to the American Diabetes Association, approximately 25.8 million adults and children have the disease in the U.S., which represents some 8.3% of the population as of 2011 and cost some $174 billion in 2007.

Despite its growing prevalence, many forms of diabetes are preventable. According to the National Institutes of Health, studies have shown that people at high risk for diabetes can prevent or delay onset of the disease by losing 5-7% of their weight. And even if they have diabetes, many of its complications can be avoided by adhering to a diabetes management plan.

The problem is that many people don’t follow their diabetes management plan. Diabetes patients are responsible for more than 95% of their own care and many healthcare professionals express frustration that patients don’t follow diet or exercise plans, check blood sugars or even take their medications as prescribed.

HeC System Makes a World of Difference

ALR Technologies’ Health-e-Connect (HeC) System is an internet-based platform for diabetes patients and their healthcare providers to improve communication and monitoring of a patient’s health management program.  For instance, the software will upload data from a patient’s glucose meter into a database that allows healthcare providers to quickly assess user compliance and test results compared to targets.

In August 2010, Diabetes Care published the results of a trial conducted by Dr. Hugh Tildesley, et al, comparing insulin dependent diabetes patients receiving conventional care with patients that had additional follow-up via an internet based blood glucose monitoring system (IBGMS). The HeC System was the IBGMS deployed in the trial. The study showed A1c dropping from 8.8% to 7.6% over 6 months in the diabetes patients who had the additional IBGMS follow-up. The A1c test is important in diabetes treatment management as a long-term measure of control over blood glucose. In general, every 1% drop in A1c may reduce the risk of microvascular complications by 40%.

In July of 2010, the company submitted a 510(k) application to the FDA for its proprietary HeC System to enable it to market the technology in the U.S. On October 17, 2011, ALR Technologies announced the 510(k) clearance of its HeC system for remote monitoring of patients in support of diabetes management.

A Solid Investment Opportunity

ALR Technologies represents an early stage investment opportunity. With a 510(k) cleared medical device available for the market, the company’s $18 million market capitalization may be significantly undervalued.  Given the efficacy of IBGMS as reported by Dr. Hugh Tildesley, et al, the sales potential of the HeC system could be very large.

For more information on ALR Technologies, please see the following resources:

• ·       Company Website
• ·       Latest SEC Filings

Update Highlights Vringo's Achievements Over the Past Year and Provides Insight into Future Business Trends in 2012

Earlier in the week, we highlighted Vringo, Inc. (NYSE Amex: VRNG), which is a provider of software platforms for mobile social and video applications in this story:

"Vringo ($VRNG) brings video to mobile apps" 

• Signed software licensing agreement with ZTE Corporation, the fourth largest handset maker in the world, to preload Facetones™ on Android handsets.  ZTE is expected to ship 80 million handsets in 2011.(1) Vringo anticipates the relationship with ZTE will drive substantial revenue, and given ZTE's growing position in the market, management believes that its strategic relationship will grow over the term of this multi-year contract.
• Developed and launched Vringo's new Facetones™ application, which surpassed the 500,000 download mark. Downloads continue to speed toward the 1,000,000 download milestone.
• Increased the addressable market for Vringo's core Video Ringtone Service from approximately 40 million potential subscribers in 2010 to over 120 million potential subscribers in 2011 with the launch of services with Orange, Celcom and Hungama.
• Surpassed 380,000 Video Ringtone subscribers worldwide with the addition of Vringo's new carrier partners.  Vringo gained over 20,000 new commercial subscribers in the first month with Celcom in Malaysia .
• Launched Facetones™ with partners in territories around the world, including Verizon Wireless in the United States , NTT DOCOMO in Japan , as well as Telefonica in Spain and Latin America .
• Paid off all bank debt with the restructuring and elimination of a venture loan with Silicon Valley Bank.
• Raised $3.35 million in financing, consisting of $850,000 in new funds and the conversion into common stock of $2.5 million of convertible notes previously issued to various investors, including prominent venture capital firms Benchmark Capital and DAG Ventures.

Strategic Vision for 2012

• ZTE phones preloaded with Facetones are expected to begin shipment in the first quarter of 2012.  Vringo is actively pursuing the handset software preload market, which according to iSupply is projected to be $7.7 billion by 2014.(2)  Management believes that its early agreement with ZTE is a model that can be replicated with additional handset manufacturers.
• Vringo projects Facetones to be on pace to generate 30 million monthly ad impressions starting in January, which are being monetized in partnership with Google's AdMob.  Facetones is expected to generate millions of downloads in 2012, through increased marketing, carrier agreements and viral adoption.
• Expected to launch Video Ringtones with at least 2 additional carriers during the first quarter of 2012 to add to Vringo's existing partnerships, with the goal of reaching 1 million monthly subscribers by the end of 2012.
• Will be looking for accretive acquisitions in a highly fragmented mobile market. Vringo will focus on acquiring attractive stand-alone applications, as well as companies with an emphasis on strong cash flow.  Management feels strongly that new applications and services can be quickly and efficiently monetized through Vringo's existing distribution platform.
• Vringo expects to strengthen its IP portfolio with new patents in 2012.  Vringo's portfolio already includes more than 20 patent applications and three issued U.S. patents, providing substantial protection for the company's broad assortment of mobile social and video technology as well as patents that we believe can be licensed to outside partners.
• Management's primary operational goal for 2012 is to leverage Vringo's strong carrier and distribution relationships to significantly increase revenues while continually streamlining expenses as the company drives to achieve breakeven before the close of 2012.

"As we move into 2012, we continue to see strong consumer demand for our core applications and services," said Jon Medved , Chief Executive Officer of Vringo.  "In particular we are gratified with our continued successes in Malaysia , where our recent launch with Celcom has surpassed 20,000 subscribers. We also signed a strategic agreement with ZTE Corporation, and surpassed the 500,000 download mark for Vringo's Facetones™ product, both significant milestones as our Facetones™ application downloads become more viral. We look forward to continuing this string of positive news and business updates while simultaneously improving our financial position." 

Andrew Perlman , Vringo's President, said, "We anticipate that our top-line revenue in 2012 will continue to build on our progress in 2011 due to our organic growth and increased consumer uptake, new launches with new partners, new product introductions as well as potential acquisitions. We intend to further reduce our operating expenses, as we drive to achieve breakeven and ultimately profitability in 2012."

Mr. Medved concluded, "As we continue to realize new operational milestones, we remain highly focused on improving our financial metrics, with an unequivocal commitment to building shareholder value."

About Vringo

Vringo (NYSE Amex: VRNG) is a provider of software platforms for mobile social and mobile video services. With its award-winning video ringtone application and other mobile software platforms - including Facetones™, Video Remix and Fan Loyalty - Vringo transforms the basic act of making and receiving mobile phone calls into a highly visual, social experience. Vringo's video ringtone service enables users to create or take video, images and slideshows from virtually anywhere and turn it into their visual call signature. In a first for the mobile industry, Vringo has introduced its patented VringForward technology, which allows users to share video clips with friends with a simple call.  Vringo's Facetones™ product creates an automated video slideshow using friends' photos from social media web sites, which is played each time a user makes or receives a mobile call. Vringo's Video ReMix application, in partnership with music artists and brands, allows users to create their own music video by tapping on a Smartphone or tablet.  Lastly, Fan Loyalty is a platform that lets users interact, vote and communicate with contestants in reality TV series that it partners with, as well as downloading and setting clips from such shows as video ringtones. Vringo's video ringtone application has been heralded by The New York Times as "the next big thing in ringtones" and USA Today said it has "to be seen to be believed." For more information, visit: www.vringo.com

For comprehensive investor relations material, including fact sheets, white papers, conference calls and video regarding Vringo and its applications, please follow the appropriate link: Investor Portal, White Paper, Overview Video and Facetones Video.

In a first for the mobile industry, Vringo has introduced its patented VringForward technology, which allows users to share video clips with friends with a simple call.  Vringo’s Facetones™ product creates an automated video slideshow using friends’ photos from social media web sites, which is played each time a user makes or receives a mobile call. By integrating with Facebook, it automatically creates a video slideshow using your friends’ photos. The Facetones service in the U.S. is in partnership with Verizon Wireless, and is available through V CAST Apps, Verizon’s app store. Facetones cost $0.99 per month or $2.99 for unlimited use.

Vringo’s Video ReMix application, in partnership with music artists and brands, allows users to create their own music video by tapping on a Smartphone or tablet. Finally, Fan Loyalty is a platform that lets users interact, vote and communicate with contestants in reality TV series that it partners with, as well as downloading and setting clips from such shows as video ringtones. Vringo’s video ringtone application has been heralded by The New York Times as "the next big thing in ringtones" and USA Today said it has "to be seen to be believed." Below is VRNG's most recent Corporate Profile:

Profire Energy, Inc. (OTCBB: PFIE)

Flash Player 9 or higher is required to view the chart
Click here to download Flash Player now

Why is Profire Energy ($PFIE) down?

Earnings and Growing Revenues - Back in November, PFIE reported record income before tax for the 9/30/11 quarter ending of $1,646,575 on total revenues of $4.5 million. Revenues have more than doubled in comparison to the previous year revenues of $2.2 million, and it has NO DEBT! For the six month period, Profire reported $7.2 million in sales and $2.7 million EBT. How many times do Small-Cap investors hear about "next quarter"? Profire is delivering now.

The Product - Burner Management Systems (BMS): Profire is filling many voids in the safety and efficiency of upstream pipeline flow of oil and gas, while helping the industry reduce its carbon footprint.  Several models have been developed over the last decade, with Profire’s latest model, the 2100 BMS, steadily grabbing more and more market share. With its electronic ignition and series of sensors, the flame is only lit when the pipeline requires, saving countless amounts of fuel and greatly reducing emissions. Any problems with ignition or the unit are remotely relayed, saving manpower and money. Moreover, torches are no longer required, eliminating the risk or injury to employees.

Growth Plans - Again the Investor Presentation speaks to growth in the U.S., France, Brazil, and "many other countries."

Management Team - I don't know the management team personally, so I simply say let's judge them on their results and that takes us back to the last quarter's financials which were very good.

Industry - Oil and gas is high growth, high demand industry with numerous stakeholders.  Given the strong balance sheet, revenues and earnings, PFIE seems like a viable option without the risk that comes along with small producers. For existing wells with relatively known production metrics the PFIE units can increase production and improve margins by utilizing their technologies. With increasing energy regulation coming out of Washington, (right or wrong, it is there) Profire is positioned to help companies meet the new energy and regulatory demand.

So why is Profire Energy potentially undervalued? Simply stated, Profire Energy is not well known outside their small niche of the world, and now Management is beginning to reach out to investors to tell their story.

The good news: It is a story based on numbers rather than a "story".

The bad news: Investors will ALWAYS buy earnings per share, and PFIE may not be hidden for long.

See all Profire Energy articles @ Waterville Research

See Profire Energy Corporate Profile @ Waterville Research

There are more than one million oil and gas wells in the United States and Canada combined.  Each of those wells necessitates a burner to heat a vessel through which oil and gas travel. The vast majority of those fuel trains still use open, gas fired flames that bring with them a myriad of problems.  For starters, there is no regulation capacity to an open flame, so the flame burns continuously, whether it is needed or not, releasing dangerous (and environmentally-unfriendly) emissions and wasting the source fuel.  Moreover, if the flame is extinguished for any reason, the source fuel continues to flow until it is manually noted that the flame went out.  Hand-held torches are then used to re-light the flame, which is obviously a very dangerous proposition that has resulted in many injuries.

The solution is Burner Management Systems (BMS).  Established in 2002, Profire Energy Inc. (OTCBB: PFIE) is a leader in BMS that is filling the many voids in the safety and efficiency of upstream pipeline flow of oil and gas, while helping the industry reduce its carbon footprint.  Several models have been developed over the last decade, with Profire’s latest model, the 2100 BMS, steadily grabbing more and more market share.

With its electronic ignition and series of sensors, the flame is only lit when the pipeline requires, saving countless amounts of fuel and greatly reducing emissions.  Any problems with ignition or the unit are remotely relayed, saving manpower and money.  Moreover, torches are no longer required, eliminating the risk or injury to employees.

Combining cutting-edge technologies has helped dramatically increase revenue and net income for Profire.  The company’s most recent SEC filings show that revenue surged to $4.5 million and net income jumped to $1.65 million in the latest quarter; up from $2,137,022 and $894,093, respectively, from the same period in 2010.  At its current pace, Profire will top $10 million in revenue for the year.  Savvy investors will also notice that Profire is debt-free, a claim that most OTC companies cannot stake.

A stronger enforcement of both safety and environmental regulations is sweeping across the oil and gas industry.  Coupled with realizations of savings by implementing BMS, the industry is being driven quickly forward, but is only realizing a fraction of its potential at this point.  Conservative estimates place the market value at roughly $4 billion presently in North America alone.  Oversea potential takes the market value substantially higher.  Most industries are flooded with competition, but such is not the case with BMS as the ratio of suppliers to demand leaves plenty of “pie for everyone”.  With its recently increased sales team and growing awareness, Profire could potentially capture three to four percent of the market, which would push revenue in excess of $100 million annually and significantly bolster its 78 cent price tag and tiny $35 million current market cap.

In addition to expanding its industry footprint, Profire Energy is also more aggressively marketing its brand through its social media presence.  Investors are encouraged to “Follow” the company on Twitter (http://twitter.com/#!/ProfireNews)  and “Like” Profire on Facebook (http://www.facebook.com/pages/Profire-Energy/181282608629883) to keep up with industry news and corporate developments.

ALR Technologies, Inc. (OTCBB:ALRT)

The A1c level is the gold standard in determination of chronic glycemic control in people with diabetes. It is important to keep the A1c level as low as possible to control risks associated with diabetes. As the final slide points out, According to Centers of Disease Control and Prevention:

In general, every percentage drop in A1c blood test results (e.g. from 8% to 7%) can reduce the risk of microvascular complications (eye, kidney and nerve disease) by 40%.

Products such as ALR Technologies’ Health-e-Connect System and Welldoc’s self-named platform are designed to encourage patient compliance and monitoring of glucose levels in manners shown to be effective by this trial.

Below, The Street Beat takes a look at the two-year weekly chart of ALR Technologies shows solid support levels and a stock consolidating after a large climb. The retrace is holding support and the MACD has dropped a bullish cross while the RSI holds over 50; signs that will grab the attention of technical traders.

The ALRT Health-e-Connect (HeC) System is the principal product of ALR Technologies.  The system offers a solution to documenting actual electronic strip count usage, thus reducing availability for the black market.  HeC is a web-based platform designed to assist healthcare providers caring for diabetes patients improve the compliance and management to care plans of patients through remote monitoring. ALRT plans to expand the platform to cover patients with other chronic diseases. The ALRT HeC System’s platform provides a unique communication channel that allows test strip suppliers to have feedback and dialogue with patients to encourage patients’ compliance to diabetes treatment plans. Adherence to prescribed treatment plans should improve health outcomes. The ALRT HeC System was successfully used in a clinical trial by type 2 diabetes patients on insulin as part of an intensive glucose monitoring program.

The HeC System supports data uploads from blood glucose meters manufactured by Abbott Diabetes Care, Bayer Diabetes Care, LifeScan Inc. (a Johnson & Johnson Company) and Roche Diabetes Care.

Homeowners burdened by high mortgage payments but who remained current on payments will likely get the opportunity to refinance at lower interest rates, courtesy of the United States government. The reduced rates and payments would leave more cash for those consumers to spend on other things. Increased consumer spending could help the economy grow and hopefully translate into job growth as well.

Banks would likely be affected in two ways: High-interest rate mortgages that are at risk of default don’t become toxic loans if they are refinanced. However, banks make money primarily by borrowing at lower rates than their lending rates. Low-priced loans would cut into earnings. In short, the banks would sacrifice profit to stabilize their balance sheets.

Among those who stand to lose most from this action are the pension plans.If the Fed is successful and interest rates are driven down it will effect most private U.S. defined benefit plans, along with the more popular defined contribution plans, such as 401(K)’s, who oversee about $7 trillion. Because of the way the plans must value payouts they will need to make in the future to retirees in coming decades these plans are likely to be hurt by a decline in long-term yields.

Full Article @ Kensington Capital Blog

About Kensington Capital Corporation - Kensington endeavors to fill the void in the market place for investment banking and securities advisory services geared for small companies. This market niche encompasses public or privately held domestic and international aggressive growth businesses with annual revenues between $10,000,000 and $100,000,000.