SECURED DIGITAL APPLICATIONS INC.

SECURED DIGITAL APPLICATIONS INC.

Previous company name

Name change date

Company Overview
Secured Digital Applications, Inc. (SDA), with corporate office located in Saddle Brook, New Jersey, USA, is a provider of outsourced business services and information technology consulting services. SDA generates revenue through its majority or wholly owned subsidiary companies located in the United States and Malaysia. SDA principally provides outsourcing and consulting services in the areas of information technology and biometric security, multimedia production and back-office business processes.
SDA became a publicly held company as a broadband communications and internet content provider through a reverse acquisition in 1999. As a result of poor economic conditions in the telecommunications industry, the company pursued a strategy of expanding its operations by acquiring majority interests in companies believed to have superior potential for growth and profitability. As a result of these acquisitions and through the internal development of new lines of business, SDA has focused it activities as a supplier of outsourcing and consulting services.
During 2006, SDA reorganized its business and sold the company’s interest in a chain of computer retail stores and a secured shipping company. The reorganization was the result of SDA’s strategy to focus its activities on outsourcing and consulting, particularly in the areas of biometric security, information technology systems, multi-media production and back-office services.
The shift in business activities from a broadband communications and internet content provider to outsourcing services and technology consulting has resulted in significant revenue growth for the company over the last five fiscal years. While management intends to focus the activities of the company on outsourcing services and consulting in the future, there can be no assurance that these levels of growth will continue indefinitely.
Business Summary
Secured Digital Applications, Inc. (SDA) is a provider of a range of mobile communication, outsourced business and information technology consulting services. The Company’s services are focused on the areas of multimedia production, information technology and computing consulting services, smarthome, biometric security and Bluetooth, global positioning system (GPS) and radio frequency identification (RFID)-enabled applications. SDA conducts its principal operations in Malaysia. Its business is organized under two divisions. The first division is involved in multimedia production, information technology, computing consulting services and the sale of smarthome and biometric security products and services. The Company is involved in the design, development and production of interactive multimedia content, Websites, e-commerce programs and applications.
Description and history
Secured Digital Applications, Inc. (SDA) is a provider of a range of mobile communication, outsourced business and information technology consulting services. The Company’s services are focused on the areas of multimedia production, information technology and computing consulting services, smarthome, biometric security and Bluetooth, global positioning system (GPS) and radio frequency identification (RFID)-enabled applications. SDA conducts its principal operations in Malaysia. Its business is organized under two divisions. The first division is involved in multimedia production, information technology, computing consulting services and the sale of smarthome and biometric security products and services. The Company is involved in the design, development and production of interactive multimedia content, Websites, e-commerce programs and applications.

The Company’s business includes the activities, such as designing, producing, hosting and distribution of interactive multimedia content, Websites, programs and applications; developing and producing e-commerce programs and Internet-based security applications and solutions, and providing project consulting services on broadband communication and networking systems for property development projects. SDA marketed hardware and software, as well as consulting services to a number of companies in the public and private sectors. Its hardware products included the EyStar SmartHome Management System, biometric systems and Internet-based cameras. On June 27, 2007, the Company sold its wholly owned subsidiary, DigitalApps Technologies Sdn Bhd, which included its 55%-owned subsidiary, Ispec Sdn Bhd, to a third party.

EyStar SmartHome Management System

SDA markets and distributes a second generation of the multi-protocol EyStar SmartHome Management System. The EyStar SmartHome Management System is a gateway device that bridges external data networks, such as the Internet to internal home networks like Ethernet, telephone line, power line and the 802.11b wireless local area network (LAN), eliminating the need for any additional wiring in the home. The Console has the capacity to enable value-added services to be offered to subscribers. These services include home healthcare in conjunction with hospitals and health advisors, interconnection and control of appliances produced by different manufacturers and security applications that allow subscribers to check on their homes remotely. This console is designed to operate on both the narrow and broadband fixed line/wireless networks and can be linked to the SmileCAM, another product marketed by the Company.

Biometric Security Products and Solutions

SDA is engaged in the development, commercialization and installation of biometric security products and solutions. Through licenses obtained from third parties, the Company sells biometric security products and solutions directly and in connection with consulting and service contracts. It develops value-added applications incorporating biometrics technology as part of its information technology and wireless technology consulting activities. A significant aspect of SDA’s business is secured in connection with new construction of commercial and residential properties. As part of its biometric security business, the Company sells SmileCAM remote video surveillance cameras in Malaysia under a renewable license from Sintec Inc. It also distributes biometric security products under an agreement with Testech Inc. SDA’s biometric products and solutions, sold directly and in conjunction with consulting and installation contracts, include access control systems, time and attendance systems, door lock and fingerprint authentication module, and remote cameras with automatic motion detection and tracking.

Its biometric security products and solutions utilize Internet protocols and multiple authentication modes, such as fingerprint, voice or facial recognition, retinal scans and proximity readers. The Company has also integrated its biometric security products and solutions with the EyStar Smarthome Management System to reach a broader market base. It markets its biometric security products and solutions directly to real estate developers and architects.

Bluetooth Proximity Marketing System

The Company has utilized the Bluetooth source code that it acquired in November 2007 to develop the Bluetooth Proximity Marketing System (BPMS). BPMS is a method of sending advertisements to Bluetooth-enabled cell phones utilizing the unlicensed universally recognized 2.4 gigahertz industrial, scientific and medical (ISM) radio frequency (RF) band. This RF band is allocated by the Geneva-based International Telecommunication Union and is not subjected to any licensing requirement by its members that include the United States, China, Malaysia and Australia. With a transmission range between 3 centimeters to 300 meters, its BPMS can handle 105 concurrent transmissions per cell. SDA’s customers are either owners or operators of airports, bus stations, train stations, billboards, shopping malls, cinemas, restaurants, sports arenas, concert halls and exhibition centers.

RFID Applications

The Company purchases the customized multiband (13.56 megahertz to 2.45 gigahertz) RFID chips from third parties to meet its specific requirements. Measuring 0.5 x 0.5 centimeter, the RFID chip does not require line-of-sight to be detected thus enabling it to be embedded into almost any material including paper. A RFID system consists of a transponder, or the RFID chip, a reader and an antenna for communication between the RFID chip and the reader.

EyStar Personal and Vehicle GPS Tracker

The Company’s EyStar Personal and Vehicle GPS tracker operates under the worldwide global system for mobile communications (GSM)/GPRS network featuring quad-bands (850/900/1800/1900 megahertz) and uses a sensitivity GPS receiver for near-indoor tracking. It can be used as an emergency cellular phone with speed dialing for two-way voice communication, place a silent call to an emergency number or police using a digital voice and text to report location, date and time. Any navigation or Google Earth map can be used for the tracking. The EyStar Personal and Vehicle GPS tracker can operate in both short messaging services (SMS) and GPRS modes. The EyStar Personal and Vehicle GPS tracker’s primary function is to help locate missing children, reduce kidnapping and provide help for critical situations where immediate assistance is required. The portable device measures 80 x 47.5 x 25 millimeter and has a built-in Lithium-Ion rechargeable battery.

Business Line
A provider of outsourced business services and information technology consulting services
Subsidiary

Advisor
ROTENBERG MERIL SOLOMON BERTIGER & GUTTILLA, P.C.
IPO date
1/1/1997
US SIC Code
4899
Company Address
10th Floor
230, Park Avenue
City province or state postal code
10169, NEW YORK, NJ
Phone: +1 212 551 1747
Fax: +1 212 808 3020
Country address: UNITED STATES OF AMERICA
Website url: www.digitalapps.net