ProStar Holdings Inc (MAPS:TSX.V) is a Software as a Service (SaaS) company that can capture, record and display the precise location of critical infrastructure.
Not knowing where underground infrastructure is expensive.
With 35 million miles of underground utilities in the U.S., there are about 500,000 utility strikes annually during excavation that have resulted in damaged cables and pipes.
ProStar offers three products, PointMan Plus, PointMan Pro, and PointMan Enterprise, all of which are designed to improve the business operations of any industry that needs to know the precise location of sub-surface infrastructure.
By providing real-time access to precise location information, ProStar's solution significantly decreases liabilities and increases productivity during construction and maintenance activities.
"We've designed our own geospatial engine," explains Page Tucker, CEO of ProStar. "The majority of mapping systems in the world are for surface objects. Google Maps, for instance, helps you get from point A to point B by identifying objects on the earth's surface."
"But there is a larger network of critical infrastructure, far greater in size than our roads, bridges and highways and railway systems," confirmed Tucker. "That's the utility lines and pipelines that are buried below the ground."
"When you are digging or excavating, centimeter accuracy is critical," added Tucker, "because you have zero line of sight. You need to know exactly where these lines are. Or you could make an expensive mess trying to find it."
The timing for ProStar's roll-out is good.
"President Joe Biden is laying out his next big proposal: A roughly $2 trillion plan for improving the nation's infrastructure and shifting to greener energy over the next 8 years," reports CNN.
U.S. infrastructure received a C- score from the American Society of Civil Engineers, which estimates $2.6 trillion in funding is required over the next decade to modernize it.
Biden's plan allocates $621 billion for roads, bridges, public transit, rail, ports, waterways, airports and electric vehicles.
"ProStar was in pilot phase up until a year ago when we entered into an enterprise service agreement with KCI Technologies," stated Tucker.
KCI Technologies is an engineering, planning and construction firm with over 1,700 employees and 55 offices throughout the United States that offers multi-discipline services to transportation, water, utility and facilities.
"Enterprise clients pay us on average about $150,000 per year," explained Tucker. "Our software is implemented when the project starts. A billion-dollar project has an army of architects, draftsmen and engineers. With the Enterprise Solution, we allow the client to have up to 100 Mobile Device users."
Tucker pointed out that smaller companies can not afford $150,000 a year.
"Two years ago, I asked the development team to create a mobile app with the back-end enterprise solution, that would cost under $3,000 per year," said Tucker. "They succeed in doing this with Pointman Pro. Now we can service smaller companies at a very low cost."
"Our system works in every language, every currency, and in every part of the world," added Tucker.
ProStar has strategic business partnerships with the world's leading geospatial technology providers, data collection equipment manufacturers and their dealer networks, including Trimble®, Juniper® Systems, Bad Elf, Vivax-Metrotech, Radiodetection® and Subsite® Electronics.
Last summer, ProStar joined Trimble's (NASDAQ: TRMB) GIS Business Partner Program. ProStar implemented the Trimble® Precision SDK (Software Developer Kit) to integrate high-accuracy positioning capability in its PointMan® mobile application running on smartphones and tablets using Trimble GNSS receivers.
"Trimble is the world leader in the manufacture of GPS and GNS equipment as well as the engineering and surveying equipment that the surveyors use," confirmed Tucker. "The partnership with Trimble has given ProStar credibility and visibility."
Trimble's global network of dealers can now resell Pointman, which extends ProStar's distribution while significantly improving the functionality of Trimble's products.
ProStar has 91 million shares issued, 117 million fully diluted. Approximately 30% of MAPS' shares are owned by directors, executive management or key employees. Those shares are restricted.
"We did a $5.6 million raise through Canaccord, at 40 cents," recalled Tucker, "and that also came with a half a warrant. Those shares are free trading. We only dealt with a handful of brokers who really believed in this deal. They liked the SaaS model."
Streetwise asked Tucker about ProStar's 2021 milestones.
"The Pointman suite of products is starting to see adoption into the surveying and engineering community. That's a major milestone because each one of those companies can have 100 or 200 clients."
"In 2021, we'd like to generate about CA$3.5 million in revenue," confirmed Tucker. "This puts us on a trajectory to be cash-flow positive by this time next year."
1) Lukas Kane compiled this article for Streetwise Reports LLC and provides services to Streetwise Reports as an independent contractor. He or members of his household own securities of the following companies mentioned in the article: None. He or members of his household are paid by the following companies mentioned in this article: None. His company has a financial relationship with the following companies referred to in this article: None.
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