CurAegis plans sale of legacy hydraulic pump division

Weeks after filing an annual report showing a $6.5 million loss in 2018, CurAegis Technologies Inc. has announced it will sell its flagship Aegis pump and motor technology.

In an April 8 filing with the Securities and Exchange Commission, the Rochester based technology company said it had signed an agreement with investment banking firm Paramax Corp. to provide financial advice connected to the sale of the division.

CurAegis CEO Richard Kaplan noted in the filing that the company had considered licensing the Aegis pump, but following a comprehensive evaluation of the complexity of such a license, the marketplace acceptance of the relationship, the best potential return on the company’s investment and the time to revenue, the board decided it was in the company’s best interest to monetize the technology through divestiture.

In the company’s annual report, filed March 29, CurAegis officials said that during 2018 it had initiated discussions with a major hydraulics manufacturer to evaluate the technology. “After several productive discussions, the manufacturer and the company signed a memorandum of understanding to evaluate an investment in the AEGIS technologies.”

The filing also noted that CurAegis had invested in software, test equipment and personnel to enhance its development efforts, and had built a testing facility. Company officials said design modifications would continue.

CurAegis, formerly Torvec Inc., has its roots in the automotive industry. Founded in 1996 by brothers James and Keith Gleasman and their father, Vernon Gleasman, the public company has some 300 automotive patents and inventions, including the IsoTorque differential, the Infinitely Variable Transmission and the Full Terrain Vehicle.

In Monday’s filing, CurAegis said it will increase its efforts on the CURA technology, its proprietary technology that measures alertness and trains individuals on how to improve alertness levels. The CURA system allows users and third parties to anticipate and avert situations caused by the degradation of alertness. CURA pairs a wearable device with an app or software and may appeal to industries in which the alertness of workers is a safety concern, such as the trucking industry or safety and rescue.

In the company’s annual report, CURA revenue was $37,000, while cost of revenue was $110,000. CurAegis reported cash on hand on Dec. 31 of $53,000. The company reported an accumulated deficit of $87.15 million since its inception.

Monday’s SEC filing included a $100,000 promissory note to Kaplan, as well as a $25,000 note to former Rochester Institute of Technology President William Destler, who has been a CurAegis director for more than a decade.

In higher than usual trading Monday, company stock (OTC BB: CRGS) ranged from 12 cents to 14.9 cents. Its 52-week range was 10 cents to 49 cents.

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