FOR IMMEDIATE RELEASE
Gatekeeper Systems Enters into Recurring Revenue Stop-Arm Contract in the State of Georgia
- First stop-arm contract with both school and county participation
- Gatekeeper retains 50% of fines which range from USD $300 to $1,000 per citation
- Highlights Gatekeeper’s transition from a hardware company to a higher margin, recurring revenue software company
Abbotsford, BC October 14, 2015 – Gatekeeper Systems Inc. (“Gatekeeper” or the “Company”) (TSX.V: GSI; OTC: GKPRF; FSE: 1GK) is pleased to announce that it has entered into its first recurring revenue contract (the “Contract”) for Gatekeeper’s Student ProtectorTM equipment, and TIMTM (Traffic Infraction Management) technology with Jones County School District (the “District”), located in Georgia, USA.
Under the terms of the Contract, the District and the County Administration (the “County”) will work together with the Company to issue citations for stop-arm violations using evidence from Gatekeeper’s Student ProtectorTM equipment, and TIMTM technology. The revenue generated from collection of citation fees will be split amongst the District, the County, and the Company, with Gatekeeper retaining 50% of the total ticketed fees. In Georgia, USA, stop-arm violation tickets begin at USD $300 for the first offence; USD $750 for the second offense; and USD $1,000 for subsequent offences within a five-year period. The Contract is for an initial five-year term, beginning on the day which the first citation is issued, and renewable at the District’s option for an additional five-year term.
Doug Dyment, President and CEO commented, “We are thrilled that Jones County has chosen Gatekeeper for this project, following their initial Evaluation Phase which began in September 2014. The achievement of this contract marks a milestone for the Company, as it is our first recurring revenue contract with both a school district and County participating. We are confident that positive results and user experiences from this will help drive Gatekeeper’s transition into a leading end-to-end solution provider.”
Under the Contract, Gatekeeper has received approval from the Sheriff’s Department in Jones County, GA, to access the National Law Enforcement Telecommunications System (“NLETS”) on their behalf, which is a national database of registered owner information. By having direct access, Gatekeeper is able to directly enter the license plate information of the offending vehicle into NLETS in order to issue a citation in conjunction with the Sheriff’s Office, ensuring a timely and accurate issuance process.
The District currently has a fleet of 80 buses and Gatekeeper will begin an initial installment on approximately 10% of their fleet, which will continue to be re-evaluated as the project progresses.
During the past 12 months Gatekeeper has been in discussions with twenty-three school districts, representing approximately 4,000 school buses, to install a complete and fully functioning- stop-arm camera system for a specified period (the “Evaluation Phase”), subject to receipt of signed demo agreements. The Evaluation Phase enables school districts to verify the quality of Gatekeeper’s Student ProtectorTM technology, as well as monitor the number of stop-arm violations experienced, prior to entering into a contract.
The Company currently has fourteen school districts throughout the United States in the Evaluation Phase, representing 975 school buses, and is hopeful that it will be awarded additional contracts following the completion of the Evaluation Phase. In the State of Georgia alone, Gatekeeper currently has nine school districts, representing 509 school buses, in the Evaluation Phase. Early indications from the systems installed as part of the Evaluation Phase show an average incident rate of 1.5 stop-arm violations per day, per bus.
The National Association of State Directors of Pupil Transportation study for 2015 indicates 12,063 stop-arm violations occurred in a single day. With an average of 180 days in a school year, the number of stop-arm violations could surpass 2 million within the State of Georgia.
Ownership of Student ProtectorTM equipment, and TIMTM, a proprietary software application, remains the property of Gatekeeper, thereby providing a zero capital cost solution to school districts while enabling them to share in stop-arm violation ticket revenue.
For more information please contact:
Gatekeeper Systems Inc.
Contact: Doug Dyment, President and CEO
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Skanderbeg Capital Advisors Inc.
Contact: Mario Vetro
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Tel: 604.687.7130 x 105
About Gatekeeper Systems Inc.
Gatekeeper provides innovative, end-to-end video safety and security solutions for mobile applications including body cameras, in-car police video systems, school bus video and stop arm camera video enforcement systems, transit bus video systems, and airborne digital recording systems for military applications.
The Company is headquartered in Abbotsford, British Columbia, Canada, and its shares are traded on the TSX Venture Exchange under the symbol “GSI”, on the OTC Markets under the symbol “GKPRF”, and on the Frankfurt Stock Exchange under the symbol “1GK”.
For more information visit: www.gatekeeper-systems.com.
On behalf of the Board,
President & CEO
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