A Green Play in LED Lighting
US Lighting Group, Inc. (OTC: USLG)
US Lighting Group, Inc. (OTC: USLG) manufactures and markets LED lighting products, boasting one of the most cost-saving replacements to ordinary fluorescent 4ft bulbs that are now carried in Home Depot (NYSE: HD) stores.
According to a report by a division of TrendForce Corp. (LEDinside), the LED lighting market grew to 36% of the market in 2016, compared to 31% the prior year, or $30.5 billion verses $25 billion in 2015. Joanne Wu, LEDinside assistant research manager, stated that “sharp price declines have severely impacted the margins of replacement products such as LED light bulbs and light tubes. Consequently, lighting companies begin to shift their focus to professional lighting markets.”
USLG is generating approximately $2 million in sales annualized though their Ohio-based manufacturing facility (which is fully automated) appears to be more-than capable of increasing production, once sales catch up with this now-public company.
US Lighting Group went public via merger in July 2016. At that time, the exuberance of being a public company saw USLG’s shares trade at $1.00 per share. Now that the foam is off that excitement and the stock is trading sideways at $0.50 per share on light (pardon the pun) trading, that’s about to change.
USLG acquired Intellitronix Corp in Dec. 2016, a company whose automotive LED lighting products fits with LEDinside’s report which noted that manufacturers are shifting to professional lighting markets. Intellitronix manufactures and markets a host of LED automotive products for such brands as Jeep, Monte Carlo and El Camino vehicles. On August 22, 2017 USLG announced that Intellitronix inked a deal with Kawasaki to supply the motorcycle manufacturer with a bulk order of custom designed LED Speedometers and wiring harnesses, which has since been filled. While USLG didn’t specify the forward relationship, Financials Trend expects Kawasaki to reorder yet this year.
USLG has another business; Highway Guardian, an aftermarket speed limiter system GPS-based device that limits the top speed of a vehicle to 73 mph by safely controlling the fuel injection system. So far, USLG has yet to release any news on Highway Guardian’s sales activities. But with USLG’s entrance into the automotive sector through the acquisition of the Intelltronix brand, news should be forth-coming.
In researching USLG, Financials Trend noted in the disclosure files found on the OTCMarkets website that there were 36.5 million shares issued and outstanding. Insiders own 25.5 million of those shares, giving the ability to call special shareholders’ meetings or conduct actions requiring shareholder approval.
Within the financial statements filed, it shows that USLG is making payments of approximately $78,000 a month on the purchase of Intellitronix, which extends through 2021. That said, it is likely that an equity financing may be in the works or possibly a conversion of that debt. Should USLG convert or cash out that debt, its income would jump to approximately a 5% pre-tax margin. Financials Trend found that USLG pines to eventually list its shares to the NASDAQ and while that may in the near future, we see USLG as a double-bagger, if our readers are patient and get in at the current low of $0.55. Shares of USLG are already up 14.58%, or $0.07, today following the release of our news… so if you’re going to get on board, do it. We expect USLG shares to continue to rise and with any news on new sales or financing, its shares could quickly get back to its previous $1.00 level.
We may continue to report on this Ohio-based LED manufacturer of green lighting products as it pursues its plans. Watch for an update shortly.