Monday, January 10, 2011

Q&A Interview with CEO of Visualant Inc. (OTCBB: VSUL) Applications and Licensing Opportunities for Authentication Technology

Seattle, WA - January 10, 2011 -, an investor research portal specializing in sector research, presents a Q&A interview featuring Mr. Ronald Erickson, CEO, President and Chairman of the Board of Visualant, Inc. (OTCBB:VSUL). Mr. Erickson discusses the bigger picture and the broad range of applications and licensing opportunities for its authentication /signature technology.
Ron, first of all can you explain to investors the basis of your patent pending technology so they can begin to understand the possibility of expanding into new industry sectors?
A: Ronald Erickson, CEO, President and Chairman of the Board
The primary focus for your technology is security and defense but other key sectors include environmental, agricultural and medical. Can you give us some examples of how that can be implemented and also what are the prospects for each of these sectors? There is a lot of buzz around the agricultural sector for example – do you see that as a big opportunity for the company?
A: Ronald Erickson, CEO, President and Chairman of the Board
You and I make many judgments based upon our human perception of color. We go into our garden and say, “That plant looks ready to eat, that plant looks like it needs water, or that plant looks sick.” In essence, our SPM technology can do that same thing, remotely. We are looking at a number of unique applications in the agricultural arena.
You just announced this week that the Company has entered into a license agreement with Seattle-based Javelin LLC ("Javelin") for development of environmental diagnostic applications of its Spectral Pattern Matching ("SPM") technology. Can you give investors more detail as to what this lays the foundation for?
A: Ronald Erickson, CEO, President and Chairman of the Board
In many ways, the license with Javelin, for environmental applications of SPM, is a template for use with many other licenses we hope to secure. We want third parties to explore ways of exploiting SPM technology. The more smart people we have working on deploying our technology the greater the opportunity for Visualant to be the success we believe it can be. A typical license will include a market rate royalty on gross revenues, along with certain negotiated equity and participatory interests for Visualant in the company who licenses our technology.
In the overall business model, how do you see the roll out of licensing over the next two to five years?
A: Ronald Erickson, CEO, President and Chairman of the Board
To use the vernacular, licensing could become the tail that wags the dog In other words, licensing revenues are typically high margin, and it will have a more dramatic impact upon our bottom line than lower margin business units.
In closing, what is in the pipeline that you can discuss publicly within your primary sector, security and defense?
A: Ronald Erickson, CEO, President and Chairman of the Board
I like to call our primary sector or focus, security and authentication. As we have indicated previously, we are looking at additional acquisition opportunities to expand upon the approximately $10 million of annual revenues we obtained with our TransTech security and authentication distribution acquisition. These include both smaller “tuck in” deals to expand TransTech and larger deals to expand TransTech geographic reach. We are also looking at some early SPM product opportunities in this sector.
About Visualant, Inc. (OTCBB: VSUL)
Visualant, Inc. develops low-cost, high speed, light-based security and quality control solutions for use in homeland security, anti-counterfeiting, forgery/fraud prevention, brand protection and process control applications. Its patent-pending technology uses controlled illumination with specific bands of light, to establish a unique spectral signature for both individual and classes of items. When matched against existing databases, these spectral signatures allow precise identification and authentication of any item or substance. This breakthrough optical sensing and data capture technology is called Spectral Pattern Matching (SPM). SPM technology can be miniaturized and is easily integrated into a variety of hand-held or fixed mount configurations, and can be combined in the same package as a bar-code or biometric scanner.
Through its wholly owned subsidiary, TransTech Systems, Inc., the Company provides security and authentication solutions to security and law enforcement markets throughout the United States.
Visualant, Inc.:
Lynn Felsinger
206 903 1351
Investor Relations
Paul DeRiso
Core Consulting Group
Visit the company profile on
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