XENONICS HOLDINGS, INC. (XNN) SPO
|Company Name||XENONICS HOLDINGS, INC.|
|Company Address||3186 LIONSHEAD AVENUE
CARLSBAD, CA 92010
|CEO||Alan P. Magerman|
|Employees (as of 9/30/2009)||20|
|State of Inc||NV|
|Fiscal Year End||9/30|
|Exchange||American Stock Exchange|
|Shares Over Alloted||0|
|Shareholder Shares Offered||--|
|Lockup Period (days)||180|
|Quiet Period Expiration||4/27/2010|
We estimate that the net proceeds from the sale of the 4,000,000 shares of common stock offered by this prospectus supplement, after deducting placement agent fees and expenses and after deducting other fees and expenses payable by us in connection with this offering, will be approximately $1,700,000, assuming that we sell all 4,000,000 shares of common stock offered by this prospectus supplement. The preceding estimate does not take into account any funds that we will receive from warrant exercises. Because there is no minimum offering amount required as a condition to the closing of this offering, the actual net proceeds that we will receive are not presently determinable and may be substantially less than the maximum amount set forth above. We intend to use the net proceeds from the sale of securities described in this prospectus supplement for general corporate purposes, including working capital and capital expenditures. Until we use the net proceeds for these purposes, we intend to invest the net proceeds in investment-grade, interest- bearing securities. We have not determined the amount of net proceeds to be used for any specific purpose. As a result, management will have broad discretion over the allocation of net proceeds.
The ultra-high intensity lighting industry, in which we operate, is characterized by mature products and established industry participants. We compete with other providers of specialized lights in the United States and abroad who have created or are developing technologies and products that are similar to the products we are selling to many of the same purchasers in our targeted markets. Although we believe that our competitors do not offer products as advanced as ours, competition from these companies is intense. Because we are currently a small company with a limited marketing budget, our ability to compete effectively will depend on the benefits of our technology and on our patents. There is no assurance that potential customers will select our technology over that of a competitor, or that a competitor will not market a competing technology with operating characteristics similar to those owned by us. Our products could be rendered obsolete or uneconomical by the introduction and market acceptance of competing products, technological advances by current or potential competitors, or other approaches. If that development were to occur, we might be required to reduce our prices in order to remain competitive and these lower prices could affect our profitability. We compete on the basis of a number of factors in areas in which we have limited experience, including marketing to the military and governmental agencies, and customer service and support. There is no assurance that we will be able to compete successfully against current or future competitors.
We design, manufacture and market high-end, high-intensity portable illumination products and low-light viewing systems (night vision). Our core product line consists of lightweight, long-range, ultra-high intensity illumination products used in a wide variety of applications by the military,
law enforcement, security, search and rescue and, to a lesser extent, in commercial markets. The Night Vision system is used across the entire spectrum from commercial to the military. We hold several patents for our technology platform, which applies high-efficiency dimmable electronic ballast circuitry and precision optics to xenon light to produce an illumination device that delivers improved performance over current technologies, and additional patents to the integration of the night vision system. We are largely dependent upon government orders for our revenues. While the night vision products will expand our sales into the commercial market, the government market, particularly law enforcement, will continue to be a large part of the night vision sales. Existing customers include all branches of the United States Armed Forces and federal law enforcement. We market our illumination products under the NightHunter brand name and Night Vision under the SuperVision brand. The NightHunter series of products is produced in a variety of configurations to suit specific customer needs. These include compact hand-held systems for foot-borne personnel and stabilized systems for airborne, vehicular and shipboard use. These NightHunter illumination systems are used for reconnaissance, surveillance, search and rescue, physical security, target identification and navigation. The systems allow the user to illuminate an area, an object or a target with visible or non-visible light, and to improve visibility through many types of obscurants such as smoke, haze and most types of fog. The SuperVision product was launched in June 2007 and brings a new category to night vision using a high-resolution HDTV display with an ultra-sensitive infrared (IR)/visible sensor and a proprietary Digital Signal Processor (DSP). This all-digital format brings capabilities comparable to high-end military analog systems at less than half the price. In addition the digital format allows for zoom capability. The price and capability opens the market to law enforcement and the general consumer, whether in the maritime environment, hunting, camping, security, or any other activity done in a low light situation. Our principal executive offices are located at 3186 Lionshead Avenue, Carlsbad, California 92010-4701, and our telephone number is (760) 477-8900. Our website address is www.xenonics.com.
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