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Byrna Technologies’ self-defense weapon hits the bullseye with strong sales

Snapshot

What really burnishes the Byrna HD’s market appeal is that it is not a firearm under federal law, and doesn’t require a gun license

Byrna Technologies Inc. - Byrna Technologies’ self-defense weapon hits the bullseye with strong sales

Quick facts: Byrna Technologies Inc.

Price: 1.33 USD

OTCQB:BYRN
Market: OTCQB
Market Cap: $181 m
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  • It is the creator of the Byrna HD, which dispenses chemical irritants from a handgun-like personal security device
  • It also offers the 40mm Blunt Impact Projectile (BIP) line of products which use pain compliance to control a target
  • The company gets large recurring revenue from selling ammunition, cartridges, chemical irritant payloads and training rounds

What Byrna Technologies does:

Byrna Technologies Inc (CSE:BYRN) (OTCMKTS:BYRN), formerly Security Devices International, is a non-lethal defense technology company which manufactures and sells less-than-lethal security devices and ammunition.

The Wakefield, Massachusetts-based company develops the Byrna HD, a handgun-like device that dispenses chemical irritants. The small, lightweight 0.68 caliber device is equipped with a five-round magazine capable of accurately hitting a target at up to 60 feet — without causing serious injury. Its chemical payload is designed to burn an assailant’s eyes and respiratory system.

Byrna’s product mix includes the 40 millimeter (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 an irritant like pepper spray powder or tear gas.

Founded in 2005, Byrna operates in Canada and the United States and its products are used by the military, correctional services, police agencies, private security companies and individuals looking for personal security.

In addition to tapping the red-hot market for security devices, the 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.

In April 2019, the company’s president Bryan Ganz replaced Paul Jensen at the helm as CEO. Ganz has three decades of experience in sales, manufacturing and new product design. A graduate of New York’s Columbia Law School, Ganz has built a formidable reputation after successfully building and selling half a dozen businesses. Most recently, Ganz sold Maine Industrial Tire to Sweden’s Trelleborg for $67 million, generating a return of more than seven times for investors in a three-year period.

How is it doing:

Anxious shoppers have been snatching up self-defense weapons and ammo to gird for potential chaos related to the coronavirus pandemic. The company said Byrna HD sales have soared as coronavirus fears have triggered personal safety concerns. The unsettled economic conditions have made people more concerned about increased crime rates, boosting Byrna device sales, according to the company.

In February, Byrna's online sales totalled $89,400 and the company averaged 9.4 orders a day. Comparatively, in the first 17 days of March online sales breezed past $150,000 with nearly 23 orders a day. Significantly, web traffic for the first two weeks of March soared 72% to 1,650 visitors a day, for a conversion rate of 1.4%.

Separately, the Byrna HD has been firing up sales quite consistently, overtaking the company’s older BIP line of products. For the fiscal fourth quarter ended November 30, the company said preliminary sales soared 77% to $543,295, compared to $306,287 in the third quarter. During the fourth quarter, Byrna HD production soared 79% to exceed 3,000 units, over 1,675 units manufactured in the previous quarter to keep pace with exploding demand.

The company has succeeded in cementing an agreement with a big sporting goods marketing firm which has sales reps calling on 10,000 sporting goods stores and firearms dealers.

What really boosts the product’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.

Byrna Technologies 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, the company said.

The firm offers the Byrna HD kit as a stand-alone product in either orange, tan, black, grey, green, hot pink, and yellow. It is deceptively easy to use, with virtually no recoil.

The global non-lethal weapons market is 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.

Byrna Technologies has 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.

Inflection points:

  • Product pipeline to leverage the company’s patented finned technology which is suitable for moderate ranges
  • Designing a Byrna LEO personal security device for the international law enforcement market
  • Implementing a nationwide reseller program focused on expanding Byrna's market penetration through gun shows and other direct-to-consumer events
  • Plans to connect with influencers who resonate with the company’s target audience, energize e-commerce and social media campaigns, create print and digital content around the Byrna brand
  • Developing a Byrna distribution network of brick-and-mortar outlets

What the boss says:

"We're very pleased to see the positive market response to our product which we believe fills a market void for a truly effective, concealable non-lethal personal security device that can stop an assailant at stand-off distances of up to 60 feet,” Byrna Technologies CEO Bryan Ganz has said.

“We envision the Byrna HD being the gold standard for non-lethal options,” he added.

Contact Uttara Choudhury at [email protected]

Follow her on Twitter: @UttaraProactive

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Watch

Full interview: Security Devices International rebrands company to Byrna...

Byrna Technologies (CSE: BYRN-OTCQB: BYRN) CEO Bryan Ganz and new Director of Sales and Marketing Reilly Schueler joined Steve Darling from Proactive in Vancouver to discuss the company making the name change. Ganz talked about that and also about unsolicited endorsement the company received...

on 03/09/2020

5 min read