In September the Company launched its unique, distributed radiation detection and alerting system. This system provides constant monitoring for harmful gamma radiation emitting from sources such as those that might be used in a terrorist "dirty bomb" attack.
The Company also announced in September the availability of a complete sensor monitoring system using radio frequency identification tags. AXCESS' battery-powered "active" RFID tags transmit data from a variety of portable detectors including temperature, motion, pressure as well as hazardous condition sensors such as radiation, chemical, and biological. The monitoring system, called OnlineSupervisor(TM) dynamically interprets the data and sends wireless alerts to enable rapid response. The system is ideally suited to homeland defense applications and industrial monitoring industries.
"We continue to tightly manage our expenses and have reduced our cash usage to under $200,000 per month in the third quarter of 2004 and have also continued to reduce our level of outstanding debt," stated Allan Frank, Chief Financial Officer. "With our operating infrastructure built out and a highly leverageable business model, we are in a strong position to maintain our progress towards achieving sustainable profitable growth. Based on our current expectations we expect to reach cash flow breakeven on a run rate basis in the first half of 2005."