Letter to Investors
Independent Forensics was formed through the merger of the DNA Immunogenetics Institute and Independent Forensics of Illinois in order to pursue the rapidly expanding opportunities in forensic DNA testing. Independent Forensics leases laboratory space in Lombard Illinois. The facility includes a suite of class 1,000 clean rooms, general laboratory space, meeting and lunchrooms, and office space. Independent Forensics has a reputable ten-year history of providing both court admissible and private paternity testing and expert DNA witness testimony for both the prosecution and the defense.
DNA fingerprinting provides the most accurate and rapid method to uniquely identify individuals. By analyzing thirteen highly variable regions of the human genome, plus a sex marker, it is possible to identify one person from all others; the ability to perform this analysis on a cotton swab swirled around the inside of the cheek, blood spattered on clothing or even on a single human hair, has enormous societal implications. In 2001 approximately 600,000 forensic DNA tests were performed in the United States and that number is forecasted to double every year for the next five years.
The 22 most populous states have passed new legislation mandating the collection and analysis of DNA samples from all convicted felons and felony arrests. An additional 13 states are in the process of passing similar legislation in 2003/2004, thereby bringing the number of forensic DNA tests to more 5.4 million annually. Several states have begun to require DNA fingerprinting of all arrestees, further increasing the number of tests and the size of the national DNA database. Current estimates from the National Institute of Justice predict that this national trend will soon reach 16 million forensic DNA tests annually. These numbers do not take into account additional uses for DNA identification technology including paternity, immigration, inheritance, military personnel and disaster remains identification.
Independent Forensics is in the process of bringing online a state-of-the-art laboratory capable of handling tens of thousands of samples per year. We are first competing for DNA testing in the paternity, immigration and inheritance markets. These markets are unregulated and allow us to generate revenue while we are completing the certification process that is required in order to compete for multi-million dollar forensic outsourcing contracts. In 2001 County, Urban and State Police Departments outsourced more than $200 million for DNA forensic testing.
In 2002 more attention was focused on DNA testing and the multi-year backlog of samples that exist. For example it is estimated that more than 300,000 rape kits have yet to be processed; all capital cases are being reevaluated with regard to DNA evidence and at the local level new training programs on crime scene sample collection doubles the number of samples to be processed. The recently passed federal budget provides additional outsourcing funds to reduce these backlogs and President Bush is asking congress for 999 million more dollars over five years. The shortage of certified testing facilities and the Company’s location between two major airports, plus proximity to Indiana, Michigan, Wisconsin, Iowa, Kentucky, Missouri, Nebraska and Kansas, will make Independent Forensics an ideal candidate for these contracts. Where feasible, additional laboratory processing and analysis locations will be either established or acquired with non-routine testing performed at our Lombard facility.
If you would like to participate or know someone who is interested in investing in this exciting opportunity please contact us for additional information. Please accept our invitation to visit our state of the art laboratory at your earliest convenience.