With the rise of smart cities and technology progressing at break-neck speeds, fiber-optic technology is increasingly in demand. Thankfully, DarkPulse, Inc. (OTC: DPLS) – a global leader in critical infrastructure solutions – has been revolutionizing this sector using its own patented fiber-sensor technology to make infrastructure safer and more reliable. To capitalize on this rapidly growing market, DPLS has been expanding across the world – especially in the Middle East – where it is emerging as a leader in the region. With the company set to list on NASDAQ in the first half of 2023, DPLS stock could be one to hold in anticipation.
DPLS Stock News
DPLS is a leading technology-security company thanks to its patented BOTDA dark-pulse sensor technology. This technology provides a data stream of metrics for assessing changing temperatures, strains, and stresses. Standing out from its competition, DPLS offers the most dependable high resolution technology at low production costs. When it is applied to various types of infrastructure in oil and gas, security, pipeline, mining, and even aerospace sectors, DPLS’s technology can become an important tool for evaluating the structural safety of these incredibly expensive projects.
Earlier this year, DPLS finalized two Letters of Intent to acquire leading drone companies – Remote Intelligence and Wildlife Specialists. It also announced its acquisition of the drone company TerraData Unmanned which led to a further increase in stock value after an initial 500% increase in the days following its June 8th announcement.
Optilan
Additionally, DarkPulse acquired Optilan – a leader in security and communications – for an aggregate purchase price of £4,000,000. Optilan will give DPLS access to new and emerging markets because of its operational presence in the Middle East, Turkey, India, and Azerbaijan. These acquisitions are promising according to the company’s COO because they will allow the company to “expand its system capabilities and open new service lines”.
Based on its acquisition of Optilan it appears DPLS is venturing further into the global market. The company’s CEO Dennis O’Leary, shared in a previous interview that as a result of market positions, the company’s Director for APAC and MENA regions will be transitioning to Dubai where he expects to have a market presence very soon. Considering Dubai’s ultra-modern smart cities, the move is not surprising and may point to more.
*Update on February 22nd, 2022
In an effort to maintain transparency with shareholders, O’Leary was recently on an interview on twitter spaces to discuss the company’s achievements and future plans. Investors are bullish on this interview and the company’s effort to generate shareholder value. Back in January, DPLS announced ambitious plans for its subsidiary – Optilan – to pursue a NYSE listing via an IPO by mid-2022. If successful, this move is expected to increase Optilan’s value – as it will position the company for expansions into different markets.
Even though the company hasn’t disclosed much information regarding its uplisting plans, DPLS plans to list 20% of Optilan’s shares in the market. O’Leary believes the IPO “would provide a great opportunity for Optilan to grow in the infratech market”. He added that “the IPO will bring value to DPLS shareholders as the company itself moves towards an uplisting on a senior exchange”. With this in mind, investors are awaiting further details from the company and are bullish on the prospect of an uplisting.
Upon uplisting, Optilan will remain a subsidiary of DPLS and both companies will operate as strategic partners and will continue collaborating on projects – inevitably capitalizing on the rapid growth of the infrastructure technology sector. In fact, O’Leary believes “that an IPO would provide the greatest opportunity for Optilan to grow the infratech category and explore its own acquisition strategy”.
*Updated June 30th, 2022
Delivering on its plans for Optilan, DPLS’ BOD approved to issue a special dividend of Optilan shares to its shareholders on August 31st. While the company has not determined the dividend ratio for the distribution, DPLS will share more news regarding the ratio on July 15th. With this in mind, DPLS will take the first steps to list Optilan on the NASDAQ or the NYSE as it expects to engage investment bankers by next August so Optilan could be listed before EOY. As the spin-off of Optilan is approaching, DPLS stock could be a smart investment at its current dip in anticipation of the spin-off.
With this in mind, Optilan has the potential to be a profitable investment upon its spin-off. Recently, the subsidiary was able to secure three contracts in the span of one week. The first contract is in Libya for the design and installation of some of its products. As for the second contract, Optilan secured a 12 month framework agreement regarding the installation, maintenance and emergency response for a UK fiber optic network provider. Meanwhile, the third contract is related to a new fiber installation in Wales. Given the subsidiary’s ability to secure such deals in a short amount of time, DPLS could be an enticing opportunity to receive shares of Optilan.
Government Contracts
Piling onto its lists of projects, DPLS started a pilot project with the California Department of Transportation (CALTRANS) to monitor California’s bridges and roadbeds structural health. The company is also working on launching a system that will monitor changes in concrete temperature in real time to ensure infrastructure structural safety. DPLS is exploring other potential locations to implement its technologies in, with the aim of expanding to the global market.
*Updated June 30th, 2022
Based on the applications of the company’s technology, DPLS secured the major sponsorship position for the Smart Cities Connect conference which will be held next September. This conference is expected to be attended by 500 city government representatives in addition to more than 1000 attendees. During this conference, O’Leary will be a keynote speaker and will speak about the launch of the Honcut Bridge in California. Developed by DPLS, this bridge is set to become the world’s first intelligent piece of infrastructure upon its launch. In light of this, many investors are bullish DPLS stock could surge when this bridge is launched.
Stock Repurchase Program
The board of directors recently authorized a stocks repurchase program where the company can repurchase up to $15 million of the company’s outstanding shares over the next year to return value to its shareholders. This will be executed through open market purchases or private transactions and will be funded from DPLS’s cash on hand. However DPLS emphasized that it is under no obligation to acquire the whole number of shares and that the time frame might be adjusted or extended later on.
Investor Relations
Recently, DPLS announced that the leading investor relation company – RedChip Companies – will be taking over the company’s investor relations efforts. On that note the company’s CEO – Dennis O’Leary – said “We look forward to a beneficial relationship that broadens our shareholder base and effectively communicates our story to the investment community.” The company also plans to introduce DPLS to institutional investment and private equity firms through investment roadshows and earnings calls starting this quarter.
*Update on February 22nd, 2022
Eliminating Toxic Funding
To protect shareholders’ interests, DPLS has defeated a Motion for Dispositive Relief – which was brought by a toxic securities lender seeking to dismiss the company’s claims of dealer registration violations. As a result, the company was awarded attorney fees – which are yet to be determined. Either way, investors remain bullish on the company’s effort to restore and generate value.
To further ensure shareholder value, the company recently filed a complaint against convertible note funder – EMA Financial LLC – to unwind unlawful stock transactions. O’Leary highlighted that “this complaint is the third case the company has filed against an alleged securities act violation”. O’Leary added that “shareholders have to know that the company continues to assess the stock’s performance, monitor social media, and will legally pursue all parties that may have damaged the company or its shareholders.” The company’s efforts are evident given that DPLS intends to take all court awards and issue them as a special dividend for shareholders.
New HQ
To position itself for growth in the years ahead, the company recently executed a lease to move its National Headquarters to Houston, Texas. This strategic decision will position the company among other major industry players given that Houston is home to over 113 national oil and gas exploration, production, and renewable green energy firms. With this lease, the company is set to occupy 4,224 sq. ft. – in addition to its already existing 20 thousand sq. ft. electronics manufacturing and R&D facility in Tempe, Arizona. Both facilities will enable the company’s expansion across the country.
To ensure efficiency of operations, DPLS plans on relocating some of its UK corporate members including the Special Teams unit to Houston as a way of accelerating the company’s progress.
Everglades Partnership
Briefly after its Texas relocation announcement, DPLS announced a partnership with The Everglades Foundation – which is known for protecting and restoring America’s Everglades through science, advocacy, and education and envisions.
O’Leary highlights the pivotal role of The Everglades Foundation and “is proud to join the fight to restore these irreplaceable wetlands.” However, DPLS is not the only organization bullish on this partnership. The Foundation’s CEO – Eric Eikenberg – believes that “organizations like DPLS who share our belief in a sustainable Everglades are critical to our success, and we are grateful for their shared passion and support for the future of this vital ecosystem.”
As the company continues to expand and deliver on its mission, DPLS seems poised for growth in the months ahead. As of now, investors are waiting on updates regarding the company’s potentially lucrative California projects. If successful, shareholders could see major ROI – making DPLS stock a possibly profitable long-term investment.
*Updated June 30th, 2022
Middle East Expansion
Given the company’s efforts to expand globally especially in the Middle East, DPLS partnered with Progress Humanity to assist in further expanding the company’s business. As it develops solutions for conducting business globally, Progress Humanity will provide DPLS with better understanding of cross-border political dynamics, regional and global relationships, government policies and programs, as well as local regulations. As a result, DPLS will have better insights when entering new global markets through this partnership.
Following this partnership, DPLS entered into a JV with Egyptian Electrical & Mechanical Works Co (EEMW). According to this agreement, both companies will create a jointly owned Egyptian company with the exclusive rights for DPLS’ BOTDA systems to be used in projects throughout Egypt. Meanwhile, this JV will allow DPLS to capitalize on EEMW’s experience in infrastructure project management, engineering and installation capabilities for projects in the MENA region. With this in mind, this partnership is expected to be pivotal in DPLS’ vision of expanding in this region since Egypt is considered to be the leading technology focused country in the region. Considering this partnership’s potential to further expand DPLS’ presence globally, DPLS stock could be a bargain at its current low PPS.
Through this partnership, both companies will focus on delivering solutions in real estate development, infrastructure, utility management, in addition to new technologies based on distributed sensing fiber systems. At the same time, DPLS and EEMW plan to build a R&D unit to get insights about future demands and market trends in the MENA region. Given that the MENA region is the global leader in building smart cities, DPLS’ entry into the Egyptian market could prove to be profitable as the country is planning to build 17 smart cities rivaling cities in Dubai and the NEOM project. Based on this, many investors are confident DPLS stock could be profitable in the long-term as the company is well-positioned for growth through its plans.
In light of this partnership, DPLS appointed EEMW ’s CEO Dr.Eng. Ehab Eldemeri as a director for Africa and GCC countries. Eldemeri is widely regarded as a successful entrepreneur and an expert in AI project management, optical systems, and business development for more than 23 years. In addition, Eldemeri has worked with several large enterprises in lucrative industries throughout the world. Considering Eldemeri’s successful career, DPLS could be well-positioned for further expansions globally by utilizing Eldemeri’s experience and networks. Meanwhile, having a local expert on board will allow DPLS to secure a significant market share in the MENA region.
Looking to increase its offering in the MENA region, DPLS partnered with MultiNet Communications to distribute its BOTDA EREBOSÔ sensing systems across the region. While offering the company’s products, MultiNet will mainly target customers in the critical infrastructure, smart cities, transportation, and renewable energy sectors. Moreover, MultiNet will focus on oil and gas pipeline applications which could be a profitable revenue stream for DPLS since the Middle East produces around a quarter of the world’s oil production.
To facilitate the distribution of the company’s products, DPLS will provide technical support and product training while MultiNet will assist customers in identifying and deploying the company’s solutions. Moreover, MultiNet will help the company in creating a certification program for companies willing to become certified installation partners for DPLS’ products. Through this program, DPLS is expected to accelerate the adoption of its disruptive products and services globally. In light of this, DPLS stock has the potential for major growth in the future when its products are widely used across the world.
Tesla Meeting
Meanwhile, DPLS stock is gaining investors’ attention after the company shared that it had a productive meeting with Tesla and has follow up meetings with internal teams of both companies. Considering that DPLS is developing a technology allowing EVs to self charge while driving, Tesla could be looking to acquire this advanced technology or partner with DPLS to gain access to the technology. With investors anticipating more news about these meetings, DPLS stock could be one to watch over the coming weeks.
*Updated August 15th, 2022
Middle East Deals
Further expanding its footprint in the Middle East, DPLS entered into a joint cooperation agreement with Siemens’ authorized distributor for Egypt – Salman International Company. According to this deal, both companies will market, sell, and install DPLS’ technology products and Siemens’ low voltage and control products. Through this agreement, DPLS was able to secure a contract for the installation of its patented BOTDA EREBOS sensor system into Moon Land Resort in Hurghada, Egypt. As Moon Land is set to become the world’s first intelligent resort by utilizing DPLS’ technology, the company could be on track to secure similar deals in the future.
Moreover, DPLS selected Gulf Automation Services & Oilfield Supplies Company (GASOS) to become the exclusive agent for the BOTDA EREBOS sensor systems in Abu Dhabi, UAE. In this way, DPLS could be well-positioned for significant financial growth as GASOS will mainly offer DPLS’ systems to oil and gas pipeline health monitoring applications and offshore drilling operations. At the same time, GASOS will provide DPLS with sales and marketing services as well as training and technical services. Considering GASOS’ reputation in the region and its contract awards of multiple billions, DPLS could be well-positioned to secure profitable contracts in the region in the future.
In addition, DPLS secured a number of contracts in the region recently through Optilan. The first contract is an EPC contract to deliver CCTV and PAGA solutions with a prominent Iraqi energy company. Over the coming 6 months, DPLS will work to deliver this project as it has already started. Meanwhile, Optilan secured another EPC contract with an LNG supplier in Qatar and will be for 8 months. In light of these expansions in the Middle East, DPLS has the potential to become a major player in the region.
Om Optel Acquisition
Since the company’s business is based on optic fibers, DPLS signed an LOI to acquire Om Optel Optel Industries Pvt. Ltd. As a leading ISO 9000 and ISO 14000 company, Om Optel has a state of the art facility for manufacturing high quality optical fiber cable, optical patch cords, HDPE pipes, and injection molding products. Through this acquisition, DPLS will be able to offer competitive prices for its installations as 65% of the company’s costs are related to the optical cables required for installations. At the same time, this acquisition will allow DPLS to design and manufacture specialized optical sensing cable products. Meanwhile, Om Optel will also allow DPLS to offer gas pipeline products through its HDPE pipe manufacturing business. In light of this, DPLS could be one to watch in anticipation of this acquisition’s closing.
Climate Emergency & Energy Security Summit
Meanwhile, DPLS’ CEO Dennis O’Leary is set to speak at the DOE as an invited guest at the Climate Emergence & Energy Security Summit on August 15 to discuss the capabilities of the company’s technology. Since this summit will include members from the White House, DPLS could secure additional contracts thanks to the exposure it would receive from this summit. As the company appears to be on an upwards trajectory, DPLS stock has the potential to be a profitable long-term investment.
*Updated December 19th, 2022
NASDAQ Listing
With the company looking to deliver more value to its shareholders, DPLS signed a definitive business combination agreement with Global System Dynamics, Inc. (NASDAQ: GSD). In this way, DPLS is set to be listed on the NASDAQ upon the completion of the transaction under the ticker (DARK). By listing on the NASDAQ, DPLS is well-positioned to benefit from greater access to capital, better liquidity, as well as a wider investor audience who could be interested in investing in the company. With the company delivering on this major goal, DPLS stock could be poised to reach greater highs as it continues growing its business.
With this in mind, this combined company is expected to have an initial equity value of $223 million which would equate to an enterprise value of $145 million. At the same time, GSD has $108.8 million cash in trust which could allow the company to aggressively pursue mergers and acquisitions in the critical infrastructure industry. Considering that the deal is expected to close in Q1 or Q2 2023, DPLS stock could be one to accumulate in anticipation of its NASDAQ listing.
ASPIRE
Meanwhile, DPLS has been actively working to expand its business as it recently became a member of Utah State University’s ASPIRE NSF Engineering Research Center with O’Leary set to serve on ASPIRE’s Policy Committee. Since electrified roadways represent a significant component in smart cities, becoming a member of ASPIRE has the potential to allow DPLS to further grow in this space. On that note, ASPIRE is considered to be a leader on a number of electrified roadways pilots across the nation including projects in Indiana, Florida, and Utah. At the same time, ASPIRE has more than 50 industry partners which is a major opportunity for DPLS to venture into the lucrative industry of roadway electrification. Considering the company’s existing technologies in the field of smart cities, DPLS stock could be one of the best stocks in this industry to hold onto for the long-term.
DarkPulse Aero Services
Looking to venture into the aerospace sector, DPLS increased its ownership stake in both Remote Intelligence and Wildlife Specialists to 100% – making both companies wholly owned subsidiaries of DPLS. While both subsidiaries are mainly specializing in the oil and gas industry, DPLS plans for both companies to expand their offerings into the home drone delivery markets. In this way, DPLS intends to begin the launch of DarkPulse Aero Services through a new website – adding to its lucrative divisions. Moreover, DPLS is developing a ruggedized version of its patented BOTDA sensor systems to be utilized in aerospace and aviation applications. Considering the high growth potential of this industry, DPLS stock forecast appears to be brighter than ever.
DPLS Stock Financials
Q1 Financials
According to its latest Q1 report, DPLS increased its assets to $39.8 million compared to $35.4 million reported in the previous quarter. Meanwhile, the company’s liabilities increased from $23.8 million in Q4 to $26.1 million. In terms of revenues, DPLS reported $2 million. However, the company had $4.7 million in operating costs – leading to a $5.3 million net loss.
Q2 Financials
In its Q2 report, DPLS’s assets declined to $34 million compared to $35.4 million in Q1 with cash decreasing to $2.5 million from $3.6 million. Meanwhile, the company reduced its liabilities from $23.8 million in the previous quarter to $20.4 million mainly due to DPLS reducing its accounts payable to $4.1 million from $7.8 million. As for revenues, DPLS reported $4.4 million in Q2 and had a gross profit of $469.1 thousand. However, the company reported $3.9 million in operating costs – leading DPLS to report a net loss of $4.1 million. Considering the company’s contracts and efforts to grow its business, DPLS appears to be well-positioned to achieve financial growth in the coming quarters.
Q3 Financials
Looking into DPLS’ Q3 report, the company has $34.3 million in assets including $5.9 million in cash. DPLS has also been able to reduce its liabilities from $23.8 million at the beginning of the year to $20 million. As for revenues, DPLS reported $1.4 million – representing a significant decline from $3.5 million a year ago. At the same time, DPLS reported a gross loss of $4.3 million due to a major increase in cost of revenues to $5.8 million compared to $2.7 million last year. Meanwhile, operating costs increased YOY from $3.2 million to $5.3 million. In light of this, DPLS reported a net loss of $8.8 million compared to $1.6 million a year ago.
Media Sentiment
@GraniteGods is bullish on DPLS stock’s future prospects thanks to its upcoming NASDAQ listing.
@PikachOTC is waiting for dips to add DPLS stock.
Technical Analysis
DPLS stock is currently trading at $.0165 and shows supports near .0153, .0125, and .0095. Meanwhile, the stock also shows resistances near .0171 and .0204. After announcing its upcoming NASDAQ listing, DPLS soared 135% as the company could be set for major growth upon such a listing. Despite the stock’s major spike on the NASDAQ listing news, DPLS appears to be consolidating at its current price level. With this in mind, the stock has been unable to break through its resistance or support. As the stock is currently near its resistance, bullish investors could wait for retests of the support to enter their positions. However, investors should note that there is a gap near $.0088 that has to be filled.
Considering the potential of DPLS’ NASDAQ listing, accumulation is trending upwards. The MACD is currently bullish but appears to be approaching a crossover soon. Meanwhile, the RSI cooled off to 65 which indicates that DPLS is slightly overbought at the moment. In light of these indicators, DPLS could be poised to drop in the near term – which could make this dip an attractive opportunity for many investors. DPLS has an OS of 6.2 billion and a float of 6.1 billion.
DPLS Stock Forecast
With the company looking to further expand in the smart city industry, DPLS could be well-positioned to become a major player in the industry as it is now a member of ASPIRE. Considering ASPIRE’s status as a leader in roadway electrification, DPLS could be well-positioned to participate in such projects which could allow the company to increase its brand awareness. At the same time, DPLS could be set to strike partnerships with ASPIRE’s 50 industry partners to facilitate more growth in this industry. In this way, DPLS appears to be one of the best smart city stocks to invest in for the long-term.
DPLS’ upcoming venture into the aerospace sector is also a catalyst to watch as the company intends to launch DarkPulse Aero Services after it wholly acquired Remote Intelligence and Wildlife Specialists. With the company developing a new version of its BOTDA sensor systems for utilization in aerospace and aviation, DPLS could be poised to receive a major boost in its revenues in the coming quarters.
Meanwhile, investors are increasingly bullish on DPLS’ upcoming NASDAQ listing in the first half of 2023. Since listing on NASDAQ would provide the company with better financing options, DPLS could be on track for major growth as it continues pursuing its acquisition strategy. As this listing could set the company for major future growth, DPLS stock could be one to accumulate in anticipation of this listing.
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