State regulations require all cannabis operations and dispensaries to implement and maintain effective video surveillance systems. Forecasts show sales of $6 billion to $7 billion in 2018 and, when combined with sales of complementary products, may have a total economic impact of over $21 billion. By 2024, sales are projected to reach as high as $61 billion and have a total economic impact of over $90 billion. As more states pass legislation, sales for recreational use are expected to outpace sales for medical use over time. Video surveillance is helping cannabis facility operators protect their retail stores, merchandise, warehouses, and growing operations.
Every state has specific mandates for video surveillance systems. Cameras and storage must be Internet Protocol (IP) compatible. And cameras must be placed at all entrances and exits, and record from both indoor and outdoor vantage points 24 hours a day with no interruptions regardless of lighting or conditions. In addition, fencing and gates surrounding growing operations must be monitored at least 20 feet beyond the perimeter.
Regulations governing the cannabis industry in the state of California require video footage to be kept for a minimum of 90 days. There are other states that require footage to be kept for as long as a year.
Of course, even if compliance standards weren’t a legal requirement, implementing a complete video surveillance system is essential in ensuring security of both cannabis growing and retail operations. Professional-grade IP camera systems are better and more accessible than they’ve ever been, with leading brand like DirectView (DirectView Holdings, Inc.) who has become one of the fastest growing companies in the security industry by providing a comprehensive security solution to its customers in the cannabis industry. The company, which also counts some of the world’s largest corporations including AT&T, Coca-Cola, Marriott Corporation, TD Securities, Waste Management, Trump, and Sprint among its’ clients, opened an office in Colorado earlier this year with the purpose of supporting the burgeoning cannabis industry.
A few months ago, DirectView has been selected to install all security equipment, infrastructure and maintain ongoing security services for Level 5 Custom Processing, Inc, a CBD processing center in California. With a two-storey facility, security is paramount as daily operations grow.
Last year, Colorado Medical Processing (dba “Colorado’s Best Dabs” or “CBD”), a top-tier cannabis processing facility located in Denver, Colorado, tasked DirectView with a major equipment upgrade and expansion of existing security infrastructure at the company’s principal state-of-the-art laboratory. The Company installed a new DirectView NVR (capacity at least 40 days of high quality video surveillance recordings), as well a series of additional cameras, including a Class 1 Division 1 explosion-proof camera dedicated for special-purpose deployment in a highly-sensitive area of the lab (as required by Colorado law).
Management believes that the surveillance-related regulatory framework for Colorado’s Marijuana Enforcement Division (“MED”) may become a major driver of revenue growth for DirectView.
The Company achieved record sales and gross profit during the six months ended June 30, 2018.
DirectView’s record results reflect the completed integration of the Virtual Surveillance and ApexCCTV acquisitions (which closed during the 2nd quarter of 2017). Record results are also attributed to several sizable new and existing contracts.
First Half 2018 Results
- 70% sales growth to a record $2.3 million
- 73% growth in product sales to a record $1.9 million
- 57% growth in services sales to a record $0.4 million
- 37% gross profit growth to a record $1.0 million
- 64% growth in product gross profit to a record $0.9 million
- 185% increase in SG&A
Sales and gross profit expanded significantly during the first half of 2018, reflecting strong DirectView product and services demand. SG&A reflects on-going investments in technology and additional customer-facing headcount.
Roger Ralston, DirectView’s CEO, stated: “DirectView’s first half of 2018 performance generated the highest sales and profits of any period in our history. As we continue our technology and acquisition investments, we realize significant adoption and scale will take time. The results speak for themselves and we remain laser focused and bullish on our strategy.”
SeeThruEquity issued an update on DirectView Holdings, Inc. (OTC PINK: DIRV) with a target price of $0.08. ( Full Press Release Here )
DirectView Holdings, Inc., (OTC: DIRV) together with its subsidiaries, provides video surveillance solutions and teleconferencing products and services to businesses and organizations. The company operates in two divisions, Security (Video Surveillance) and Video Conferencing. The Security division offers technologies in surveillance systems providing onsite and remote video and audio surveillance, digital video recording, and services. It also sells and installs surveillance systems; and sells maintenance agreements. The company sells its products and services in the United States and internationally through direct sales force, referrals, and its Websites. The Video Conferencing division offers teleconferencing products and services that enable clients to conduct remote meetings by linking participants in geographically dispersed locations. It is involved in the sale of conferencing services based upon usage, the sale and installation of video equipment, and the sale of maintenance agreements. This division primarily provides conferencing products and services to numerous organizations ranging from law firms, banks, high tech companies and government organizations.