Investor Interview with Pericles DeAvila
The visionary behind Sector 10 Inc.
Q) First, a little about you. Before starting Sector 10, you ran some fairly large operations in the building and development field. Tell us about them.
A) I have always enjoyed the construction and development industry. Beyond its financial rewards, it is the end of a project that truly brings it all together. When you look in everyone's eyes you can see pride, the feeling that they have created something magnificent, something that was at one point an idea and now with their participation made it a reality. From a stadium to a high-rise tower, that innate feeling of accomplishment is almost poetic.
Q) How did these previous experiences help you in creating Sector 10?
A) Sector 10 is a fusion of previous experiences. I survived a devastating earthquake in the Azores in 1980 and understanding the post recovery failures became very important to me. Combine that with my experience in the development field dealing with safety and health issues and failures, and you have the inspiration for Sector 10. Technology and new construction methods over the last 100 years have unleashed new horizons for us all, new possibilities, but unfortunately the unspoken truth is that by crossing new boundaries we have also created greater risks and health hazards. When I made the decision to address the safety and emergency hazards needs of construction and industrial facilities, I quickly found that the safety and emergency systems in place across all markets were minimal at best — a few notes in binder, a compilation of could, should or you might expects, a series of guesses and maybes. It was a haphazard combination of failed common sense and failures to meet required regulations.
Q) Your flagship products are the MRU and SRU. What exactly are they?
A) The Mobile Response Units (MRU) and the Stationary Response Units (SRU) are exactly as their name describes: a central place were you find the kind of help you need, from first aid, communications, personal protective equipment, tools and assets that can safe your life in case of an accident, incident or disaster. They are a pre-qualified, pre-packaged, pre-deployed or deployable system specifically designed to help you save your life or someone else's within your specific environment, be it a high-rise evacuation to an industrial disaster.
Q) When did you first came up with the idea of the MRU/SRU? Did any event or circumstance trigger the idea?
A) Actually, it is more along the lines of a series of events and the fact that I was working on the systems for several years prior to 9/11. This event only confirmed that we need to expand our capabilities and address a new set of issues. One of the main issues is that we need to put a system in place that would save lives on a large scale and have a positive economic impact on our nation and not become another blunder of guesses.
Q) Why is the MRU/SRU unique to other products out there? What does the MRU/SRU offer that your competitors don't?
A) The products offer single point access to, and not limited to, these solutions:
Risk and Crisis Management, Emergency Preparedness Assets, Community Response Integration, Monitoring of Evacuation and Assets, First Aid Access Point, Internal Security System, Data Management, Scalable Wireless and Ethernet Network, Information Technology, PEACE OF MIND.
Q) Can you tell us about the MRU/SRU ability to be customized according to the client or emergency needs?
A) Yes, as we know different areas of the country are affected by different natural disasters and can potentially also be affected by man made incidents depending on location. Sector 10 works with emergency responders to analyze the best solution for a particular area or facility.
Q) Timing is everything in terms of a medical emergency. How does the SRU provide speed and accessibility in an emergency?
A) The SRU, or Stationary Response Unit, is a pre-deployed system that is on-hand and accessible the minute you need it, with evacuation masks and other key tools to save your life. The fact still remains that in a city the first responders are a few hundred vs. the needs of thousands. Would you bet on those odds with your life?
Q) In terms of size, how big is the MRU? The SRU? Can they be easily stored?
A) The SRU are very compact at the base, 13"x 26", and 43" in height, comparable to the side of a small book shelf. The larger MRU have a foot print of about 32"x36" and are about 5'6" in height and can fit in a closet.
Q) How about durability? Is the MRU/SRU tough enough to withstand potential punishment without the medical components inside getting damaged?
A) They are a combination of steel, aluminum and plastics, which are very durable and made to withstand various climates conditions.
Q) Can the units be easily parachuted into emergency zones?
A) Yes, the MRU's have been built to be easily transported by automobile, trucks, airplane or helicopter.
Q) Let's say someone with no medical training has to apply life-saving techniques to an injured person. Can the MRU/SRU provide easy to comprehend guidance? What about language problems if the units are made in the US for, say, the International Red Cross, who stores them for a future emergency, but doesn’t know the country they will be sent to?
A) Units have multi-functional, multi-lingual menus and satellite communications making it easy to enlist assistance to and from field operators in any situation. They will have the capability for telemedicine interactivity to a central deployment center amongst other features.
Q) Another fascinating Sector 10 product is the Pericles LogiX System. Can you tell us a little about this software and its applications?
A) The Pericles Logix System manages state of the art communication and data technology along with many key processes that will make a difference in saving lives. The system works in conjunction with our MRU and SRU product lines and can allows the responders and security personnel to interact with the building safety and security systems. The process allows for quicker response and interaction in order to address the situation at hand.
Features on this system will be announced very soon, that is all I can say at the moment. It is a true achievement in disaster and incident response.
Q) How difficult would it be to integrate the Pericles LogiX System into a building?
A) Simple. We have tried to make it a "plug and play" system that will fully integrate into current systems seamlessly.
Q) Let's move on to sales and where there is a demand for the MRU. Where do you see the MRU having the most success in terms of sales?
A) It is my belief that our larger cities are our most vulnerable because of the scale in numbers. From natural disasters, industrial disasters, terror and other incidents, our initial focus is on city centers and the high-rise population.
Q) What secondary markets you are focused on?
A) We will branch away from city-center protection to other public areas like schools, airports, train stations, and industrial facilities in an outward radius. The key is to make everyone self-sufficient enough so they don't have to wait on the first responders to address their needs. The national wait time is now up to 96 hours, if not more, during incidents of a large scale.
Q) What is the key resistance factor you face in making sales to existing buildings?
A) Like anything, cost is king. What we have done at Sector 10 is structure a lease program making the cost of safety almost invisible on a monthly basis; a few cents to the bottom line on a per square foot basis. We believe that many insurance companies will jump to a discount program on these high-rise buildings; it's a natural reduction in liability all around.
Saving lives is in everyone's best interest.
Q) The War on Terror has created a boom in the Homeland Security market. How does Sector 10 plan on tapping this market? Will the sales be "top down" to the Federal Government first, or are you planning a national push to put your products in every city in America?
A) Since 9/11, thousands have cashed on the Homeland Security Market and billions have been spent. We need a little different approach. Although we will need to work with Homeland Security on coordinated efforts, I do feel that it will be up to us in the private sector to lead the effort and save lives. I always remember JFK's legendary saying, "Ask not what your country can do for you, Ask what you can do for your country". Yes, the sales will be from "top down", because we know the government likes Sector 10 and its products. We also know that we have to support the efforts to make sure every city gets the tools they need to save lives. "The decision will still be made by each and everyone of us."
Q) The MRU seems perfectly suited for certain military applications. Do you see Sector 10 working with the Department of Defense (DOD) in the future?
A) Of course, and a certain amount of interest has already been expressed to that end. Unfortunately, we can't be all things at once and our first commitment is to equipping our cities and saving lives. In our future there is a very strong interest in delivering on that opportunity and we will in due time.
Q) If the DOD wanted exclusive changes for products they bought, is this something you are prepared to do?
A) Yes. We understand the requirements of specific uses and how the capacity and ability to address various scenarios are keys to survival. Customization and specific use are features available with all of our products, including the high-rise solution.
Q) You have put together a top-notch management team. Can you tell us a little about them?
A) From the start it was apparent the impact a project like Sector 10 could have. I knew it was necessary and crucial to get a great group of architects together that had worked on this type of project before so they could help with its development and that's exactly what was done. From that point on it was like having the right magnet and I believe that a lot of top-notch people just see it and want to be part of building it out. We all want that sense of accomplishment that I saw in my development sites. You know, in the end, we are all the really the same.
Q) How do you see Sector 10 keeping up with the demands of a changing market and a dangerous world? Is there a problem with your units becoming obsolete too quickly?
A) The fallible human condition and its dangers aren't going away and neither are natural disasters. To add to that, the threat of serious terror attacks are the new fixture of danger in our life. It is my belief, and this supported by experts, that we must be prepared for what ever comes our way and given Sector 10 and it's solutions, there should not be any excuses left not to be prepared. The funds are there to help prepare and so is the need. What remains is our own call to action. Sector 10 will continually be up grading the SRU and MRU and our customers should know that a lease is a not only a cost/benefit but also allows them not to ever worry about being obsolete.
Q) Where do you see the company in two years? In five years?
A) I know Canada will want to participate; we got some calls already. England, Israel, Europe are also on the horizon. Managing our growth against our potential is my biggest concern. It’s truly a great thing that Top-Notch people want tickets aboard this train.
Q) Do you see Sector 10 establishing joint ventures with different countries in the near future?
A) It is strong possibility. In fact we are currently exploring that possibility with Israel.
Q) For your shareholders, how do you see the future of Sector 10?
A) We are in SEATTLE and if Microsoft, Starbucks, Costco and Amazon are an indication of what we breed up here in our little corner of the world, you can expect to see our name right up there on the billboard at the top. Looking ahead to the future applications of the MRU concept, there is even more hope for people who have never known even the basics of modern medicine. For example, it will be possible to offer telemedicine services through specialized MRUs and through other MRU designs equipped as portable dental and ophthalmologic clinics for volunteer medical teams. There might also be special units containing emergency shelter kits and life sustaining supplies for flood or earthquake victims. Imagine the instant goodwill an organization would create by sponsoring the widespread deployment of these units to the neediest areas of the world.
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