On January 6, 2015, Edgewater Wireless Systems Inc. (TSXV: YFI) announced that it has dealt one of its 23 technology patents to a major handset and tablet manufacturer. Although not formally disclosed by Edgewater, upon further investigation SmallCapPower discovered the name of the company, the significance of which should provide the ultimate validation of Edgewater Wireless’s technology.
Although not formally disclosed by Edgewater to either the public or SmallCapPower/Ubika Research, upon further investigation we discovered that U.S. Patent 7016654 for Programmable Power-Efficient Front End for Wired and Wireless Communication was transferred to Apple Inc. (NASDAQ: AAPL). The patent is for the components involved with sending and receiving signals. It centers on the consumption of power by these components, and depending on the amount of signal sent or received the amount of power needed varies. This patent, then, allows the electronic components to be programmable so that they can adjust power usage to be more efficient.
While Edgewater did not reveal the consideration it received for the patentrights, it can be reasonably assumed that it was higher than their value before the transaction. As of Edgewater’s most recent financials, its patent portfolio is valued at approximately $1.9 million. It is not a stretch, then, to expect that the deal made with Apple could lead to an upward revaluation of the company’s entire patent portfolio.
Apple’s interest can be considered the ultimate validation of Edgewater Wireless’s technology and the market has begun to realize this. Since March 2, 2015, Edgewater’s stock has returned about 1000% to its current price of $0.22. This has come on high volume, with Edgewater trading over 90 million shares in the same period; compared to just over 7 million for all of 2014. Ubika Research initiated coverage of this stock in June 30, 2014 at $0.04 and the share price hit $0.26 less than a year later, representing an implied return of 550%.
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About Edgewater Wireless:
Edgewater Wireless develops and commercializes leading edge technologies and intellectual property for the communications market. Edgewater Wireless delivers advanced product solutions designed to meet the high-density, high quality of service (QoS) and high-reliability needs of service providers and their customers. Leveraging over twenty (20) patents, Edgewater’s WiFi3 is redefining Wi-Fi technology with its wide-band, multi-channel radio and high-capacity Access Point solutions, and delivering next generation WiFi, today. For more information, please visit www.edgewaterwireless.com.
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About Ubika Research
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