The BRS Labs IPO

By: John Honovich, Published on Aug 06, 2014

BRS Labs is IPOing.

Maybe. Probably Not.

The TV Interview

This started with a Fox Business News TV segment with BRS Lab's President. A typical happy-happy conversation, at the end, the interviewer challenges him, "When are you going public?" to which he responds, "We are going to go public right around the corner. We are very excited about the future including that potential dynamic."

It's a totally solid answer. Display optimism without committing to specifics, softening it with terms like 'potential' and vague references like 'around the corner'.

Doubling Down

Then it gets strange.

That same day, BRS Labs sends out an email blast titled, "BRS Labs President breaks the news that company is going public soon during an interview on Fox News".

Then the next day, BRS Labs sends out another email blast titled definitively, "BRS Labs Announces That Company Will Go Public," referencing the same video.

In less than 48 hours, its goes from friendly banter about a 'potential dynamic' to an official announcement.

Get Notified of Video Surveillance Breaking News
Get Notified of Video Surveillance Breaking News

Details on the IPO / CEO Resigns

BRS Labs told us they are not releasing any information about specific timing or government filings typically associated with IPOs (e.g., an S1).

However, BRS Labs has told the Houston Business News that their target IPO date is nearly a year from now (June 15, 2015), that BRS Lab's CEO has stepped down and they are searching for a new headquarters. Quite a flurry of activity across less than a week.

An IPO Would Be Great

BRS Labs has hundreds of investors, many of whom have invested more than 5 years ago. An IPO would allow them to cash out, a liquidity event they have been waiting for since BRS Labs floated the idea in 2008 that they would be acquired for a billion dollars. That has not happened.

Now is an excellent time, as the stock market has been on a long bullish trend, with massive gains. Because of this, investors would likely be more receptive to a younger, riskier company. As Fox Business observed, 2014 has had the most IPOs since the Dot-Com Bubble [link no longer available].

But It Would Be Hard

Especially in the US stock market, IPOs tend to require significant revenue levels ($100 million or more is fairly common). Also, investors tend to want businesses that have proven market traction in their core markets. BRS does not fit either.

BRS Labs, despite bold proclamations, has long struggled with revenue generation. For example, in 2011, they claimed to be "engaged in over $200 million in sales" but audited financials we obtained showed only $800,000 in sales for 2011.

Every year BRS touts exponential growth but even so, starting from a sub $1 million base in 2011, that's a long way to go to get to the revenue levels companies IPO'ing typically have.

Also, in the last year, BRS Labs has pivoted away from its former enterprise security core market to cloud analytics for home / SMB users and SCADA systems. This increases the risk as investors cannot see a long track record of success / acceptance in those new markets.

Hold On - Not an IPO?

However, as BRS Labs former CEO told the Houston Business Press:

"BRS Labs is still exploring potential avenues for its public offering, whether it be a direct public offering, or an IPO."

So it might not actually be a 'real' traditional, ring the bell on the floor, IPO. They could always do a reverse IPO as well.

Good Marketing Move Overall

Whether or not this happens, this is a good tactical marketing move as it gets people excited and pushes off concerns about the long struggles of the company.

Update: Did Not Go Public

Not surprisingly, BRS Labs has not gone public and it is past their target date of June 15, 2015. However, BRS Labs raised $18 million in Spring 2015 from the same array of smaller private investors. The company continues to show it is a master of getting money from mom n pop 'investors' but has still yet to provide a liquidity event.

4 reports cite this report:

BRS Labs Is Gone; Giant Gray Is Here; Giant Gray is Gone; Omni Ai is Here on Mar 28, 2016
BRS Labs is no more.  After raising over $100M and years of outrageous...
Months After Raising $18 Million, BRS Labs Has a New, New CEO on Oct 01, 2015
They have raised more money than any video analytics company ever, with well...
BRS Labs Raises $18 Million on May 14, 2015
Let the money flow. After a few years of relative quiet, BRS Labs is back...
BRS Labs Gets New CEO on Feb 03, 2015
BRS Labs, who claims to be preparing for a public offering in the next few...
Comments (9) : Members only. Login. or Join.

Related Reports

JCI "Fever Camera" Partners With China TVT on May 19, 2020
Johnson Controls (JCI) is the next big player to get into the 'fever camera'...
Detecting Coronavirus Fevers With Thermal Cameras on Mar 15, 2020
MAY 2020 Update: This post was our early examination of these systems being...
PSIM CNL Acquired By Everbridge on Mar 09, 2020
The end has finally come for CNL. Despite for years saying they would...
USA's Seek Scan Thermal Temperature System Examined on Apr 01, 2020
This US company, Seek, located down the road from FLIR and founded by former...
Hikvision Fever Screening Thermal Solutions Examined on Apr 13, 2020
Hikvision is marketing "safer, faster, smarter" with their Fever Screening...
Sunell Panda Cam Body Temperature Measurement Camera Tested on May 14, 2020
Sunell is far less well known than its gargantuan domestic competitors Dahua...
Manufacturers on Virtual 'ISC West' 2020 and Potential ISC West 2021 on Jun 29, 2020
With the 2020 ISC West show now officially canceled, attention turns to...
Huawei Releases a 'Fever' Smartphone on Jun 16, 2020
Fever cameras, fever tablets, fever helmets, fever sunglasses, fever guns,...
Cancel or Not? Industry Split Over ISC West on Feb 26, 2020
The industry is split, polarized, over whether ISC West 2020 should run or be...
Colombia's President Promotes Bad Hikvision Fever Camera Setup on Jun 17, 2020
Colombia's President Iván Duque has promoted a haphazard Hikvision fever...
LSP Presents 2nd Generation FP Power Supplies on Apr 29, 2020
Life Safety Power (LSP) presented its FP2 power supply in the April 2020 IPVM...
Openpath Presents Two Door PoE Controller on May 21, 2020
Openpath presented its new PoE controller at the May 2020 IPVM Startups...
FDA Defines Correct Operation of "Fever Cameras" on May 26, 2020
The US FDA has now defined the correct operation of "Thermal Imaging...
ISC News Fakes Fever Screening, Falsely Quotes FDA on Jun 18, 2020
ISC News, the Reed publication behind the ISC East and West trade shows, has...
PDQ Presents Cloud Mobile Access Smart Locks on May 04, 2020
PDQ presented its mobile, wireless access system 'pdqSmart' at the April 2020...

Recent Reports

Genetec CEO Declares "We Don't Negotiate Payment With Patent Trolls" on Aug 11, 2020
Are patent trolls like terrorists? Genetec's CEO is coming out strongly...
Hanwha AI Analytics Camera Tested on Aug 11, 2020
Hanwha has released their Wisenet P AI camera, adding person and vehicle...
Alabama Schools Million Dollar Hikvision Fever Camera Deal on Aug 11, 2020
The Baldwin County, Alabama public schools purchased a $1 million, 144-camera...
Dahua Taunts Australian Government, Continues To Sell Illegal Fever Cameras on Aug 10, 2020
Dahua is effectively taunting the Australian government by continuing to sell...
HID Releases VertX Replacement Aero on Aug 10, 2020
HID is replacing two established and broadly supported types of access...
NDAA Compliant Video Surveillance Whitelist on Aug 10, 2020
This report aggregates video surveillance products that manufacturers have...
Telpo China Temperature Tablets Tested on Aug 10, 2020
The provider for overseas companies ranging from Canon Singapore to US'...
Dangerous Hikvision Fever Camera Showcased by Chilean City on Aug 07, 2020
Deploying a fever camera outdoors, in the rain, with no black body, is...
"Grand Slam" For Pelco's PE Firm, A Risk For Motorola on Aug 07, 2020
The word "Pelco" and "grand slam" have not been said together for many years....
FLIR Stock Falls, Admits 'Decelerating' Demand For Temperature Screening on Aug 07, 2020
Is the boom going to bust for temperature screening? FLIR disappointed...
VSaaS Will Hurt Integrators on Aug 06, 2020
VSaaS will hurt integrators, there is no question about that. How much...
Dogs For Coronavirus Screening Examined on Aug 06, 2020
While thermal temperature screening is the surveillance industry's most...
ADT Slides Back, Disappointing Results, Poor Commercial Performance on Aug 06, 2020
While ADT had an incredible start to the week, driven by the Google...
AHJ / Authority Having Jurisdiction Tutorial on Aug 06, 2020
One of the most powerful yet often underappreciated characters in all...
SIA Coaches Sellers on NDAA 889B Blacklist Workarounds on Aug 05, 2020
Last month SIA demanded that NDAA 899B "must be delayed". Now that they have...