Australian technology company Xped (ASX: XPE) has inked a contract with US-based cyber security company Heuresy Labs LLC to build a hardware security device for the inclusion in Xped’s Internet of Things (IoT) solutions.
Xped had requested a halt in the trading of its shares last week, prior to the announcement of the binding technology development agreement.
Under the deal, Xped will develop a new cryptographic Physical Security Token (PST) to provide authentication and encryption of data from the devices attached to them. For example, a PST-secured system could be used to provide secure access control via encrypted door locks in an office building.
The PST device will have Bluetooth and GPS capabilities, incorporating fully verified geofencing technology (patent pending) with the ability to restrict secure operations to a specific area.
Xped will also provide software development kits to enable the Xped and Heuresy apps to perform IoT micropayments, as well as allow third party IoT and software developers to utilise the IoT security in the Xped ecosystem.
For instance, a building operator could charge a fee for access to a conference room, which is secured by an Xped-enabled door lock. A secure payment could be made immediately via the app, thus unlocking the door.
According to Xped chief technology officer Christopher Wood, the company’s XIP ecosystem is a “hardware-secured IoT platform that serves residential, commercial and industrial customers”.
However, this new PST technology will allow the company to serve significant new and expanded markets.
“With this contract and new security token, Xped can pursue opportunities in new and higher value markets such as governments and utilities,” Wood said.
Heuresy is led by Australian expatriate Keith Benson, an electronics and communications systems architect who conceived and developed Navy Cash, the first large-scale smart card payment system created for the US government.
Heuresy is also partnered with US veteran-owned businesses Biobex and Stealth Entry, which provide security solutions for the US government and military, as well as for the private sector.
The contract is worth US$500,000, with Xped to be paid the first US$250,000 within five days of the deal’s execution, and the other half to be paid upon completion of the statement of work under the agreement.
Heuresy will manufacture the PST security devices and be the sole distributor of Xped’s products in the US.
Xped will be able to purchase the devices at manufacturing cost plus handling fees.
Shares in Xped sat 33.33% higher at A$0.004 by afternoon trade.