GOPH (PSInvestor.com) Gopher Protocol Transitions to Revenue with Pet Tracker Device

Gopher Protocol Transitions to Revenue with Pet Tracker Device

  • Indiegogo product launch heightens awareness of pet tracking technology
  • Company transitions from concept to revenue generation
  • Large Intellectual Portfolio with licensing potential
  • Nationwide decentralized network using IoT possible

Gopher Protocol (GOPH) has its roots deeply entrenched in intellectual property and the creation of a market forming technology the world has only seen in Science Fiction movies such as Terminator.  GOPH is in the early stages of building a national network using the Internet of Things (IoT) one device at a time.  The vison is to have the Gopher Chip in as many devices as possible allowing information to freely flow from node to node creating a smart mesh network where each device act as a repeater.  The IoT connected device market is estimated over $14 Trillion by 2020.  The enormous upside potential of this technology is the foundation for a company that is transitioning from concept to revenue.  When any technology company transitions from concept to revenue the stock valuations tend to expand.  While the company still has a nominal corporate burn rate, it will remain constant as revenues start to flow.  Once revenues reach that inflection point of profitability then quarter over quarter growth comparisons will be the guiding force for the stock price.  The recent announcement of the Guardian Orb on the Indiegogo platform demonstrates the company’s commitment to becoming a revenue company.

Pet Market

According to Grand View Research, Inc. “the global pet wearable market is expected to reach USD $2.36 billion by 2022.” The pet market in general is recession proof and pet lovers will spend whatever is needed to spoil their pets.  The pet tracking market is fragmented utilizing all types of technologies which is why it’s not hard to understand why the National Human Society reported 10 million pets are lost each year in the United States.  A robust, durable, longer lasting, and most importantly a cost effective solution is needed.  The monthly subscription service model never seemed to take root for pet consumers who want a plug and play product at a good price point and no billing hassles.  It makes sense that a cheaper and more robust tracking system will fill a market void and result in better adoption rates by pet owners.

Guardian Orb

GOPH’s first product to launch is the Guardian Orb which is one of the most robust long range pet trackers to hit the market.  It’s the size of a sneaker ball and easily attaches to a dog collar and only needed recharging every 30 days due to its Gopher Chip which manages the power.  What makes the pet tracker stand out is its ability to use the FM spectrum to locate the pet up to a 50 mile range.  This is the same technology that allowed researchers to track endangered animals.  The battery life of the Orb pet tracker is roughly 4 weeks and can recharge in just an hour. This seems to be the hassle free from the pet owner’s perspective.  The most robust feature of the system is that the application also checks for battery life.  Simply put, if the Orb is low on power the chip sends a message through the airwaves and then the Application alerts you to ensure that you put the Orb back on the charger so that your pet is able to be found.  This is the first consumer product to launch by GOPH and they plan to feature it on  Indiegogo.  Based on all the video content they have produced surrounding the product, this campaign is sure to build awareness and sales.  By visiting the Indiegogo website, consumers will see the starter package is priced at $118.  Arrow Electronics (ARRW) has given its seal of approval regarding the electronics architecture.  This is a starter price for early adopters, but once production begins retail pricing will be much prices will me much more favorable.

 

Follow On Products

The Guardian Patch is basically a sticky patch with a one-year battery and location tracking that is intended  to affix to your vehicle.  This gadget allows for continuous tracking and when set in a discrete part of your car would assist in the recovery of your car should it ever be stolen.  The best feature of this technology is that thieves can’t hide because of it triple redundant tracking technology.  It still works  without GPS or Cellular network.  The Guardian Patch once affixed to the intended object doubles as an emergency beacon if you tear off the patch off the vehicle.  Each Guardian patch has a unique identifier that when activated can be tracked using your phone application.  The application is available in Android and Apple.  With all the GPS trackers out there the marquee features are range and competitive pricing.    Due to it triple redundant technology only Lojack can compete in terms of range.  The phone app allows instant monitoring and will actually alarm you if your car is moving while you are in a fixed location.  The app also monitors the battery power and sends an alert when replacement is needed.  The target price to consumers is $40 but replacements will be needed every year as the battery runs out.  This disposable model is more friendly to consumers who don’t seem to want to hassle with monthly billing plans.

The next consumer product to launch after the Guardian patch should be the Guardian Bracelet which will come in children and adult sizes and allow personal tracking of children and elderly.  If you are a parent or a caregiver you will be able to have peace of mind that you won’t lose track of your family members.  These products are not disposable and need to be rechargeable every week.  When the final design is complete it will have a similar form factor to the fitness trackers like Fitbit (FBIT).

The end game is for the company to manufacture a chip, Dr Rittman calls it the GopherInsightTMmicrochip.  This chip would eventually go into all cell phones that allows access to the IoT network using a private network protocol circumventing conventional networks like GPS, Wifi, and Cellular.  Since the chip also contains artificial intelligence (AI) and is capable of learning, it will use the optimal resources and pathway to transmit the data.  It is clear that his vision is the Gopher Protocol installed on billions of mobile devices including phones, laptops, and tablets by the year 2020.  To access this network it is as simple as replacing a Sim card but use of the service would be unlimited and without cost since the network would be completely open and decentralized.  Imagine a world with unlimited data and voice at no cost.  The most compelling concept behind this network is that the more people join the more robust it becomes.  The existing mobile architecture actually degrades with an increase in users.  The more people that are on the Gopher Protocol network the more robust it becomes.  This is a true market forming technology that turns handheld phones with the Gopher Protocol into network nodes.  Imagine the possibilities.

Licensing Potential

All the IP for the Gopher Protocol is held in the company.  Simply put this means that they can structure licensing deals with anyone.  The most likely first targets are the hardware manufacturers like Qualcomm (QCOM) which has a global presence and would easily allow them to buildout their IoT network.  After securing the mobile market they could go after television, computer, and appliance manufactures with the idea that all of these devices have computing power and could be nodes in a global network.  This would accelerate the innovations that could come to these devices allowing a seamless way for them to talk to each other.  There is a very interesting anecdote that demonstrates the company’s licensing vision.  When reading through the filings what stand out is there discussion about their trademark Gopher Inside.  Intel objected to it and instead of fighting the company essentially rolled over and went with GopherInsightTM which is about as close to Gopher Inside as they were going to get but this demonstrates the Company’s vision.

Pure IoT Play

For investors that see the huge potential in the IoT space this company has the framework for a lot of future innovations.  As a technology play the stock seem undervalued given the significant disruptive threat it could have on the mobile carries in the USA and worldwide.  This technology could be licensed at any time and that could bring in significant revenue and create significant cash flows for the company.  From a product point of view if they get traction in the market from their Indiegogo campaign this could turn into an exponential growth story with double digit growth quarter over quarter.  Their CTO Danny Rittman is a solid asset of the company but if they are able to make any strategic hires that have product branding experience the combination should accelerate their sales.  If they are able to secure additional funding for R&D of the Gopher Insight chip then the threat of disruption becomes real.

This article was submitted by Mike Sheikh. Mike is a contributor for Seeking Alpha. Mike (or PSinvestor) have NOT been compensated for this article and currently does not hold a position in the company, but may trade it in the near future. You can follow Michael on TWITTER @breckskifan

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