• The Wakefield, Massachusetts company is a non-lethal defense technology company which makes and sells less-lethal security devices and ammunition
• It is the creator of the Byrna, which dispenses chemical irritants from a handgun-like personal security device
• It also offers the 40 mm Blunt Impact Projectile (BIP) line of products which use pain compliance to control a target
• The company draws large recurring revenue from selling ammunition, cartridges, chemical irritant payloads and training rounds
• The company maintains a robust intellectual property portfolio covering a wide array of designs for non-lethal technologies. It has seven US patents and four international ones.
Security Devices International Inc (OTCMKTS:SDEV) (CSE:SDZ) is a non-lethal defense technology company which manufactures and sells less-lethal security devices and ammunition. The Wakefield, Massachusetts company’s products are used by the military, correctional services, police agencies, private security companies and individuals looking for personal security. Founded in 2005, the company operates in Canada and the US .
It offers the 40 mm Blunt Impact Projectile (BIP) line of products which use pain compliance to control a target. The company has developed eight versions of the standard BIP, seven of which contain a payload and one of which is a cheaper cost, training round. A payload is an internal medium within the BIP, holding a liquid or powder which can be an irritant like pepper spray powder or tear gas.
It is also the creator of the Byrna, which dispenses chemical irritants from a handgun-like Personal Security Device (PSD). The small, lightweight .68 caliber hand-held security device equipped with a five-round magazine is capable of accurately and effectively hitting a target at up to 60 feet — without causing serious injury.
The market opportunity
The company’s initial market focus is the US and South Africa. The global non-lethal weapons market pegged at $6.32 billion in 2016 is now expected to grow at a compound annual growth rate of 9.4% to reach $11.85 billion by 2023, according to market research firm Stratistics MRC.
North America generates the largest stream of revenue and the US is the biggest developer and exporter of non-lethal weapons.
In addition to tapping the red-hot market for security devices, the non-lethal defense technology company also draws large recurring revenue from selling ammunition, cartridges, chemical irritant payloads and training rounds.
Smaller recurring revenue comes from laser sight adds, holsters and spare magazines.
What really boosts the Byrna’s market appeal is that it is not a firearm under federal law and doesn’t require a federal gun license. State laws and local ordinances may, however, regulate its possession in certain localities.
Security Devices sees a big market opportunity with resurging interest in personal safety, particularly among women and younger people. In February, at its Daytona Speedweeks booth half of the sales came from women.
“Our product fills a critical hole within the self-defense spectrum, uniquely allowing consumers to engage threats at range in a non-lethal manner,” said Security Devices International President Bryan Ganz.
The company offers the Byrna HD kit as a stand-alone product in either orange, black, or desert tan. A digital camouflage version is also available.
Similar in size to a lethal handgun, the device comes with multiple, easily reloadable magazines that can hold .68-caliber training rounds or chemical payloads designed to burn an assailant’s eyes and respiratory system upon contact.
Although it delivers a chemical payload which causes an immediate burning sensation, the Byrna fires non-lethal rounds which don’t kill people. It simply works to “deter, disorient, disrupt and delay an attacker,” according to the company, providing enough time to escape or call for assistance.
The company is banking on its patented design, compact size, five-round magazine, laser sight adaptability and point and shoot capabilities to make the Byrna a “truly effective” personal security device offering many of the same features as a handgun without loss of human life.
It is easy to use and obtain, making it a natural choice for homeowners that would never own a gun, as well as a must have add-on to any gun enthusiast’s firearms collection.
The Byrna HD does not require a gun license and has a starting price of $349.
Intellectual property portfolio
The company maintains a robust intellectual property portfolio covering a wide array of designs for non-lethal technologies. It currently has seven US patents and four international patents.
It has 13 patents which are pending and nine registered designs along with a US trademark.
The company says that its development pipeline will leverage its patented finned technology.
During his career spanning 30 years of experience in sales, manufacturing, and new product design, Ganz has built and sold half a dozen businesses. Most recently, Ganz sold Maine Industrial Tire to Sweden’s Trelleborg for $67 million, generating a return of seven times for investors over a three-year period. Ganz is a graduate of Columbia Law School, in New York.
“We envision for the Byrna to be the gold standard for non-lethal options,” said Ganz. “We expect to get a second-generation version out sometime in the middle of next year which will have a larger magazine and few other improvements, but we are phenomenally excited about this.”
Contact Uttara Choudhury at [email protected]