xG Technology

Latest Innovation Enables Mobile Users to Maintain Transmission Quality, Flexibility and Agility
in On-the-Move Wireless Operating Environments

Sarasota, Florida—January 21, 2015—xG Technology, Inc. (“xG” or the “Company”) (Nasdaq: XGTI, XGTIW), a leader in providing critical wireless communications for use in challenging operating environments, announced today that it has been awarded a new patent covering an innovative method for enabling cognitive radios to rapidly scan for neighboring wireless channels. The patent “Method to Enable Rapid Scanning by Cognitive Radios” describes an approach for simultaneously maintaining both end user Quality of Service (QoS) levels and the flexibility and agility required in an on-the-move cognitive wireless network.

George Schmitt, CEO and Board Chairman of xG Technology, said, “This latest patent award further solidifies our leadership as a provider of secure, high-capacity, high-availability mobile broadband solutions. The ability of the xMax system to ensure uninterrupted access to voice, data and video services in a variety of deployment scenarios make it an excellent choice for public safety, military and other sectors requiring continuity of communications for their teams.”

This represents the second patent awarded to xG since December of 2015 that outlines approaches to enhancing the intelligence of wireless networks in ways that increase their overall performance, agility, efficiency and quality. On Dec. 10, 2015, xG announced a patent enabling the first cognitive mobile ad-hoc network (MANET) wireless system.

Wireless links are often subjected to being degraded by impairments caused by interference, motion and external factors like terrain, weather and buildings. The new patent outlines a novel way for devices in a cognitive radio network to better detect, analyze and utilize available wireless channels while continuing to send and receive data efficiently. This is essential component in highly mobile wireless deployments, such as those that take place in public safety incident command and expeditionary military operations, where continuous access to highly-reliable, high-quality connectivity during unpredictable situations is critical.

These features are hallmark of the xMax broadband wireless solution, which, unlike traditional cellular systems, was conceived with the goal of providing anywhere, anytime connectivity, regardless of wireless conditions or adverse events that could threaten the integrity of communications. As a testament to the appeal of xMax as a high-availability system in such scenarios, the U.S. State Department purchased a complete xMax broadband configuration in November 2015 to assure the safety of U.S. government personnel serving in Mexico during disaster events.

About xG Technology, Inc.

Founded in 2002, xG Technology has created a broad portfolio of intellectual property that makes wireless networks more intelligent, accessible, affordable and reliable. The company is the developer of xMax, a patented all-IP cognitive radio network system that enables secure, robust mobile broadband communications for private, consumer and government networks. xMax can solve the crisis facing the wireless industry caused by data-hungry devices and applications that are straining network capacity. It eliminates the need to acquire scarce and expensive licensed spectrum, thus lowering the total cost of ownership for wireless broadband access.

The xMax system delivers always-available voice, video and data services to both fixed and mobile users, and is interoperable with existing cellular and dedicated networks without being dependent on them. xMax incorporates advanced optimizing technologies that include spectrum sharing, interference mitigation, multiple-input multiple-output (MIMO) and software defined radio (SDR). These and other technologies make xMax ideal for wide area, as well as rapid emergency communication deployment in unpredictable environments and during fluid situations. xG offers solutions for numerous industries worldwide, including emergency response and public safety, military, telemedicine, urban and rural wireless broadband, utilities, and critical infrastructure.

Based in Sarasota, Florida, xG has over 100 patents and pending patent applications. xG is a publicly traded company listed on the NASDAQ Capital Market where xG common stock is traded under the symbol XGTI and xG warrants are traded under the symbol XGTIW. For more information, please visit www.xgtechnology.com.

Cautionary Statement Regarding Forward Looking Statements

Statements contained herein that are not based upon current or historical fact are forward-looking in nature and constitute forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Such forward-looking statements reflect the Company’s expectations about its future operating results, performance and opportunities that involve substantial risks and uncertainties. These statements include but are not limited to statements regarding the intended terms of the offering, closing of the offering and use of any proceeds from the offering. When used herein, the words “anticipate,” “believe,” “estimate,” “upcoming,” “plan,” “target”, “intend” and “expect” and similar expressions, as they relate to xG Technology, Inc., its subsidiaries, or its management, are intended to identify such forward-looking statements. These forward-looking statements are based on information currently available to the Company and are subject to a number of risks, uncertainties, and other factors that could cause the Company’s actual results, performance, prospects, and opportunities to differ materially from those expressed in, or implied by, these forward-looking statements.

For More Information:

Media Relations
Daniel Carpini
xG Technology
daniel.carpini@xgtechnology.com
(941) 953-9035
Investor and Analyst Relations
James Woodyatt
xG Technology
james.woodyatt@xgtechnology.com
(954) 572-0395
Jody Burfening/Carolyn Capaccio
LHA
ccapaccio@lhai.com
(212) 838-3777

The post xG Technology Announces New Patent Adding Enhanced Intelligence and Efficiency to Cognitive Radio Wireless Networks appeared first on xG Technology.

Strategic Accretive Acquisition Enables xG to Realize Immediate and Long-Term Financial,
Operational and Technological Benefits

Sarasota, Florida—February 1, 2015—xG Technology, Inc. (“xG”) (Nasdaq: XGTI, XGTIW), a leader in providing critical wireless communications for use in challenging operating environments, announced today that it has completed its acquisition of assets of Integrated Microwave Technologies, LLC (“IMT”) originally announced on Jan. 19, 2016. The acquisition was completed using debt financing from the seller and will require payoff over the next eighteen months.

The acquisition of the IMT assets is expected to deliver significant benefits to xG in a number of areas. By aligning its operations and technology platforms with those of IMT, xG will be able to expand more deeply into markets it is currently active in, while opening growth possibilities in new sectors. xG gains immediate access to the IMT product line, which opens new cross-selling opportunities to xG’s existing customer base, and enriches its competitive offerings. Likewise, IMT can now fill the demonstrated need among its own customers for the kind of secure, rapidly-deployable mobile broadband solution that xMax is uniquely suited to fill.

Finally, IMT’s manufacturing expertise is expected to drive additional operational, production and other cost efficiencies at xG. This and other aspects of the transaction will serve to yield compelling financial benefits to xG and prepare it realize even more growth.

George Schmitt, CEO and Board Chairman of xG Technology, said, “We welcome the IMT family to be part of xG Technology and are delighted with the synergies that we see between the two companies. We expect these synergies to result in substantial reductions in, and avoidance of, costs that will total approximately $2MM per year. We would also like to thank Skyview Capital, the seller of IMT, for extending us this opportunity and for their assistance in helping ensure a timely closing of the acquisition.”

Roger Branton, CFO of xG Technology, said, “This acquisition is expected to be cash flow positive from day one and accretive to the combined companies. xG and IMT each have distinctive strengths that will be even more pronounced by integrating our operations. In addition to broadening our capabilities to execute more effectively, this acquisition will make xG well-positioned from a financial standpoint to embark on its next phase of growth.”

John Payne IV, newly-appointed President of the IMT Division of xG Technology, and a corporate officer of xG, said, “We at IMT are delighted to become a major part of xG Technology and look forward to working together to develop joint sales strategies and to take advantage of the synergies available to the combined entities.”

About xG Technology, Inc.

About Integrated Microwave Technologies, LLC

Integrated Microwave Technologies (IMT) is a leader in advanced digital microwave systems and a provider of engineering, integration, installation and commissioning services serving the Broadcast, Sports & Entertainment and MAG (Military, Aerospace & Government) markets. The company comprises the leading microwave brands Nucomm, RF Central and IMT, offering customers worldwide complete video solutions. Nucomm is a premium brand of digital broadcast microwave video systems. RF Central is an innovative brand of compact microwave video equipment for licensed and license-free sports and entertainment applications. IMT is a trusted provider of mission-critical wireless video solutions to state, local and federal police departments. More information can be found at www.imt-solutions.com.

Cautionary Statement Regarding Forward Looking Statements

For More Information:

Media Relations
Daniel Carpini
xG Technology
daniel.carpini@xgtechnology.com
(941) 953-9035

Investor and Analyst Relations
James Woodyatt
xG Technology
james.woodyatt@xgtechnology.com
(954) 572-0395

Jody Burfening/Carolyn Capaccio
LHA
ccapaccio@lhai.com
(212) 838-3777

The post xG Technology Completes Purchase of Integrated Microwave Technologies, LLC appeared first on xG Technology.

Sarasota, Florida—March 10, 2016—xG Technology, Inc. (“xG” or “the Company”) (Nasdaq: XGTI, XGTIW), a leader in providing critical wireless communications for use in challenging operating environments, announced today that it has been invited to present at the 28th Annual ROTH Conference on March 14, 2016. The Conference will be held at the Ritz Carlton in Dana Point, CA from March 13 – 16, 2016.

xG Technology’s presentation, which will be delivered by George Schmitt, CEO and Board Chairman, Roger Branton, CFO and Co-founder, and Rick Mooers, Director and Co-founder, is scheduled for 5:30 p.m. PST, with one-on-one meetings to be held throughout the day. They will be discussing key aspects of the Company’s technology brand portfolio: xMax—a secure, on-demand mobile broadband system designed to ensure critical communications capabilities in challenging wireless environments, and IMT—a leader in high-performance video transmission technology and advanced digital microwave solutions.

For additional information or to schedule a meeting with xG Technology management during the conference, please contact your ROTH representative.

About xG Technology, Inc.

Founded in 2002, xG Technology has developed communication technologies that make wireless networks more intelligent, accessible, affordable and reliable. The company’s technology brand portfolio includes xMax and Integrated Microwave Technologies (IMT). xMax is a patented all-IP cognitive radio network system that enables secure, robust mobile broadband communications for private, consumer and government networks. xMax can solve the crisis facing the wireless industry caused by data-hungry devices and applications that are straining network capacity. It eliminates the need to acquire scarce and expensive licensed spectrum, thus lowering the total cost of ownership for wireless broadband access. xMax delivers always-available voice, video and data services and is interoperable with existing cellular and dedicated networks without being dependent on them. xMax incorporates advanced optimizing technologies that include spectrum sharing, interference mitigation, multiple-input multiple-output (MIMO) and software defined radio (SDR). xMax is ideal for wide area, as well as rapid emergency communication deployment in unpredictable environments and during fluid situations. xG offers solutions for numerous industries worldwide, including emergency response and public safety, military, telemedicine, urban and rural wireless broadband, utilities, and critical infrastructure.

IMT is a leader in advanced digital microwave systems and a provider of engineering, integration, installation and commissioning services serving the Broadcast, Sports & Entertainment and MAG (Military, Aerospace & Government) markets. IMT’s product lines include digital broadcast microwave video systems, compact microwave video equipment for licensed and license-free sports and entertainment applications, and mission-critical wireless video solutions designed for use by state, local and federal police departments. More information on IMT can be found at www.imt-solutions.com.

Based in Sarasota, Florida, xG has over 100 patents and pending patent applications. xG is a publicly traded company listed on the NASDAQ Capital Market (symbol: XGTI) For more information, please visit www.xgtechnology.com.

Cautionary Statement Regarding Forward Looking Statements
Statements contained herein that are not based upon current or historical fact are forward-looking in nature and constitute forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Such forward-looking statements reflect the Company’s expectations about its future operating results, performance and opportunities that involve substantial risks and uncertainties. These statements include but are not limited to statements regarding the intended terms of the offering, closing of the offering and use of any proceeds from the offering. When used herein, the words “anticipate,” “believe,” “estimate,” “upcoming,” “plan,” “target”, “intend” and “expect” and similar expressions, as they relate to xG Technology, Inc., its subsidiaries, or its management, are intended to identify such forward-looking statements. These forward-looking statements are based on information currently available to the Company and are subject to a number of risks, uncertainties, and other factors that could cause the Company’s actual results, performance, prospects, and opportunities to differ materially from those expressed in, or implied by, these forward-looking statements.

For More Information:

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Sarasota, Florida—March 30, 2016—xG Technology, Inc. (“xG” or “the Company”) (Nasdaq: XGTI, XGTIW) announces that is has received a written notification from the Nasdaq Stock Market LLC (“Nasdaq”) indicating that the Company is eligible for an additional 180 calendar day period, or until September 26, 2016, to regain compliance with Nasdaq Listing Rule 5550(a)(2) covering minimum bid price requirement.

The determination by Nasdaq that the Company was eligible for this additional period was based upon the Company meeting the continued listing requirement for market value of publicly held shares and all other applicable requirements for initial listing on the Nasdaq Capital Market with the exception of the Bid Price Rule, and the Company’s written notice of its intention to cure the deficiency during the second compliance period by effecting a reverse stock split, if necessary.

If the Company does not regain compliance within the allotted compliance period, Nasdaq will provide notice that the Company’s shares of common stock will be subject to delisting.

The Company intends to monitor the closing bid price of its common stock between now and September 26, 2016 and will consider available options to resolve the Company’s noncompliance with the minimum bid price requirement as may be necessary.

As previously disclosed, on September 28, 2015, xG was notified that the Company’s common stock no longer met the minimum $1 bid price per share listing requirement, and was provided under NASDAQ’s Listing Rules with 180 calendar days, or until March 28, 2016, to regain compliance.

About xG Technology, Inc.

For More Information:

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Right-sizing of Cost Structure Intended to Support the Company’s Ability to Execute on Growth Objectives for its xMax and IMT Brands

Sarasota, Florida—April 6, 2016—xG Technology, Inc. (“xG” or “the Company”) (Nasdaq: XGTI, XGTIW), a leader in providing critical wireless communications for use in challenging operating environments, announced that, effective today, it has implemented cost reduction initiatives that are expected to result in a decrease in xG’s overall monthly operating expenses to approximately $500,000 on the xMax brand — a reduction in monthly cash burn of approximately $300,000.

The savings will be realized through a combination of voluntary severance, a reduction in the full-time and part-time workforce, the elimination of certain contractors, transitioning other employees to non-cash compensation arrangements, and other reductions in expenses. Additional reductions will be derived from synergies identified as a result of the acquisition of Integrated Microwave Technologies (IMT), which was finalized on January 29, 2016. The new cost structure will support the Company’s ability to execute on the growth objectives for its xMax and IMT brands.

George Schmitt, CEO and Board Chairman of xG Technology, said, “The decision to reduce our workforce is a painful but necessary one we must take in order to right-size our cost structure, and these cost-cutting initiatives will provide a significant decrease in the monthly cash burn in our xMax business of approximately $300,000 from current levels. To the extent possible, we will endeavor to reassign xG staff to positions of similar responsibility with our recently-acquired IMT business, which is in a growth phase and remains self-sufficient in its operations. We have already begun obtaining efficiencies from the combined operations of xG and IMT by integrating functions including RF engineering, board design and layout, and services, and this process is expected to accelerate.”

Mr. Schmitt continued, “We are confident that, notwithstanding these announced reductions, we will be able to preserve our core engineering, operational and sales teams and competencies without disruption, and that will allow us to execute on the numerous growth opportunities we are pursuing in military, public safety and other markets. We will continue to aggressively drive near-term revenue-generating engagements, both for our xMax mobile broadband communications solution, as well for advanced video system solutions from our IMT business. We expect to re-evaluate and respond to the need for additional resources as our business requirements dictate. Finally, we would like to express our sincere appreciation to our affected employees for their contributions to xG Technology.”

About xG Technology, Inc.

Cautionary Statement Regarding Forward Looking Statements

For More Information:

Media Relations
Daniel Carpini
xG Technology
daniel.carpini@xgtechnology.com
(941) 953-9035

Investor and Analyst Relations
James Woodyatt
xG Technology
james.woodyatt@xgtechnology.com
(954) 572-0395

Jody Burfening/Carolyn Capaccio
LHA
ccapaccio@lhai.com
(212) 838-3777

The post xG Technology Announces Cost Reduction Initiatives appeared first on xG Technology.

Sarasota, Florida—April 15, 2016—xG Technology, Inc. (“xG” or “the Company”) (Nasdaq: XGTI, XGTIW), a leader in providing critical wireless communications for use in challenging operating environments, announced its results for the fourth quarter and year ended December 31, 2015.

Key 2015 accomplishments:

Received an order from the U.S. State Department valued at approximately $200,000, for xMax mobile broadband wireless networking equipment and associated services. The equipment will provide essential communications to assure the safety of U.S. government personnel serving in Mexico, their families, and U.S. citizens in Mexico during disaster events.
Received an order from a Department of Defense agency for xMax mobile broadband wireless equipment and services. The equipment will be used for additional testing and validation of xMax as a mobile tactical data communications system in response to specific technology objectives.
Received an order for approximately $400,000 for xMax telemedicine network hardware, software and service bundles for deployment in Asia Pacific.
Received order for approximately $309,000 for xMax mobile broadband wireless equipment and services which will be integrated into a dedicated Telemedicine/Telehealth Systems Network Infrastructure. The initial network will be built out in St. George, Grenada, with support for expansion throughout Caribbean countries.

Received an order for approximately $100,000 and a follow-on order for approximately $58,000, for xMax mobile broadband wireless equipment and services from Itellum, LLC, for which installation and initial deployment has been completed in Escazu, Costa Rica.
Introduced the xMax NOW Transportable Broadband Wireless System. xMax NOW is a comprehensive system that enables instant, wide-area mobile communications capabilities in a roll-out format. xG specifically designed xMax NOW to meet the rapid-deploy requirements of emergency response, homeland security, law enforcement, military and private entities.
Made the xMax private wireless broadband system FirstNet-ready, having demonstrated interoperability with the commercial LTE cellular network. FirstNet is the planned U.S. nationwide broadband high-speed network that will be reserved for use by the first responder community.
Awarded three new patents covering cognitive radio technologies and interference mitigation.
Subsequent to year-end:
- Completed the acquisition of Integrated Microwave Technologies, LLC (“IMT”), a provider of advanced digital microwave systems, as well as engineering, integration, installation and commissioning services that are provided to the Military, Aerospace & Government (MAG) and Broadcast, Sports & Entertainment (BSE) markets.

George Schmitt, CEO and Board Chairman of xG Technology, said, “In 2015 we recorded sales traction in key US government and military markets where the xMax solution is increasingly viewed as a compelling choice in mission-essential wireless communications. This is the result of our demonstrated leadership in high-reliability systems featuring intelligent and active interference mitigation, which delivers resistance to jamming and hacking previously not available commercially. We also made progress in additional sectors including the telemedicine/telehealth vertical, which require the robust and secure communications platform that xMax provides. Our objective going forward is to accelerate revenue growth in these verticals, as well as public safety and critical infrastructure sectors that have ongoing needs for wireless communications that are accessible and interoperable, as these are exactly the benefits that xMax system provides. In addition, we will pursue further integration between the xMax and IMT brands in technology development, sales and marketing, and manufacturing/operations functions to capture additional high value market opportunities.”

Review of Results

xG ended the fourth quarter 2015 with $368,000 in cash compared to $758,000 at December 31, 2014.

xG continues to actively evaluate various alternatives of financing in order to obtain additional capital to allow the Company to deliver its products and fulfill its current backlog, including further stock sales.

For the year ended December 31, 2015, revenue was $932,000 compared to $628,000 in 2014, of which $701,000 was generated from the sales of equipment and $231,000 from engineering and consulting services agreement.

For the year ended December 31, 2015, net loss was $17.9 million, or $(2.76) per share, compared to net loss of $19.0 million, or $(8.31) per share for the year ended December 31, 2014.

About xG Technology, Inc.

Cautionary Statement Regarding Forward Looking Statements

For More Information:

xG TECHNOLOGY, INC.

STATEMENTS OF OPERATIONS
(IN THOUSANDS, EXCEPT PER SHARE DATA)


	For the Year Ended December 31,
	2014			2015
Revenue	$	628		$	932
Cost of revenue and operating expenses
Cost of components and personnel		156			510
Inventory valuation adjustments General and administrative expenses		200 7,418			861 6,259
Development		7,597			4,658
Stock based compensation		625			1,584
Impairment charge Amortization and depreciation		– 3,871			2,092 4,829
Total cost of revenue and operating expenses		19,867			20,793
Loss from operations		(19,239	)		(19,861	)
Other income (expense)
Changes in fair value of derivative liabilities Other income		440	–		2,559	–
Other expense		—			(26	)
Interest expense, net		(179	)		(529	)
Total other income		261			2,004
Net loss	$	(18,978	)	$	(17,857	)
Dividends and deemed dividends		—			(3,079)
Net loss attributable to common shareholders		(18,978	)		(20,936	)
Basic and diluted net loss per share		(8.31	)		(2.76	)
Weighted average number of shares outstanding basic and diluted		2,285			7,599

xG TECHNOLOGY, INC.

BALANCE SHEETS
(IN THOUSANDS EXCEPT SHARE DATA)


	December 31,
	2014			2015
ASSETS
Current assets
Cash	$	758		$	368
Inventory, net		4,070			777
Accounts Receivable, net of allowance of $30 and $87 ($480 and $138 from related party, respectively)		702			641
Prepaid expenses and other current assets		411			15
Total current assets		5,941			1,801
Inventories, net Property and equipment, net		– 816			2,078 792
Intangible assets, net		16,382			11,903
Total assets	$	23,139		$	16,574
LIABILITIES AND STOCKHOLDERS’ EQUITY (DEFICIT)
Current liabilities
Accounts payable	$	868		$	1,196
Accrued expenses		511			252
Accrued interest		42			137
Due to related parties		2,110			324
Deferred revenue ($480 and $13 from related party)		480			149
Obligation under capital lease		123			54
Convertible notes payable		–			781
Derivative liability		270			1,284
Total current liabilities		4,404			4,177
Long-term obligation under capital lease		—			106
Convertible note payable		2,000			2,000
Total liabilities		6,404			6,283
Commitments and contingencies
Series A convertible preferred stock – $0.00001 par value per share: 3,000,000 and 3,000,000 shares authorized at December 31, 2014 and 2015; 750,000 and 0 issued or outstanding as of December 31, 2014 and 2015 (liquidation preference of $0 at December 31, 2015)		378			—
Total convertible preferred stock		378			—
Stockholders’ equity (deficit)
Preferred stock – $0.00001 par value per share: 10,000,000 shares authorized at December 31, 2014 and 2015; 750,000 and 0 issued or outstanding as of December 31, 2014 and 2015		—			—
Common stock, – $0.00001 par value, 100,000,000 shares authorized, 22,844,865 and 22,845,323 shares issued as of December 31, 2014 and 2015, respectively		—			—
Additional paid in capital		186,919			198,710
Accumulated deficit		(170,540	)		(188,397	)
Treasury stock, at cost – 229 shares as of December 31, 2014 and 2015, respectively		(22	)		(22	)
Total stockholder’s equity		16,357			10,291
Total liabilities and stockholders’ equity	$	23,139		$	16,574

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xG Selected for its Ability to Provide an Immediately Deliverable, Highly Reliable Voice and Data Communications System That Overcomes Congested Communications Environments

Sarasota, Florida—April 19, 2016—xG Technology, Inc. (“xG” or “the Company”) (Nasdaq: XGTI, XGTIW) announced that is has received an initial order to supply xMax software-defined cognitive radio (SDCR) networking equipment to the U.S. Army’s Intelligence Electronic Warfare Test Directorate (IEWTD). The order, received under a sole-source solicitation, consists of an xMax software defined cognitive radio (SDCR) system and associated hardware and software that will serve as a mobile tactical communications infrastructure.

xG will meet the government’s expedited delivery requirement and deliver all equipment within 30 days.

xG Technology was selected for its unique ability to provide a robust expeditionary communications capability that is highly resistant to electronic attack, suitable for augmentation of integration into currently-fielded tactical military communications systems, following sponsored participation in several DoD electronic warfare exercises. Additional testing and technology evaluations determined that xG Technology was the sole vendor having an immediately deliverable implementation of SDCR technology. xMax is increasingly recognized as a leading technology which greatly improves command and control communications in challenging communications environments, giving it high value as an anti-electronic warfare asset.

This represents the second order received from the U.S. military by xG Technology for an xMax tactical wireless broadband system. On October 26, 2015, xG announced that it received an order from a Department of Defense agency for xMax equipment and services.

George Schmitt, CEO and Board Chairman of xG Technology, said, “This order is further evidence of the need for xG’s industry-leading interference mitigation technologies in mission-essential communications. The US Army has recognized the value of xMax as interference-resistant tactical broadband communications with an unprecedented combination of robustness, interoperability and insulation from the effects of contested and congested spectrum.”

Among the salient xMax characteristics that were noted as key aspects of the decision to purchase from xG Technology were the following:

Support for voice and data communications;
Highly reliable in congested spectrum environments;
Frequency agile and spectrum sensing;
Seamless integration of commercial end‐user devices (mobile phones, tablets, IP devices); and
Dynamic Spectrum Access (DSA) and advanced interference mitigation algorithms

The xMax systems will be deployed under the auspices of IEWTD at the U.S. Army Electronic Proving Ground (USAEPG) at Fort Huachuca, AZ. USAEPG is the premier organization of the Army for testing command, communications, control, computer, and intelligence systems and equipment.

About xG Technology, Inc.

For More Information:

Media Relations
Daniel Carpini
xG Technology
daniel.carpini@xgtechnology.com
(941) 953-9035

Investor and Analyst Relations
James Woodyatt
xG Technology
james.woodyatt@xgtechnology.com
(954) 572-0395

The post xG Technology Receives Sole Source Award to Supply xMax Cognitive Networking Equipment to U.S. Army Intelligence Electronic Warfare Test Directorate appeared first on xG Technology.

System Allows Capture of Real-time, Long Range, High Quality Video in a Compact Form Factor
for Broadcast Markets

Sarasota, Florida—April 25, 2016—Integrated Microwave Technologies (IMT), an xG Technology portfolio company and leader in advanced digital microwave systems serving the broadcast, sports, entertainment and law enforcement markets, showcased its state-of-the-art microLite–Aerial HD Wireless Video Transmitter for drones at the NAB 2016 Show last week in Las Vegas, NV. The NAB Show, which is produced by the National Association of Broadcasters, is the largest annual convention covering the digital media, filmed entertainment and content delivery industries.

The microLite–Aerial (MLT-Aerial), which is available for shipment now, is a superior miniature system of wireless video transmission links designed to capture real-time, high-quality video from drones/UAV/UGV units for display on ground applications. At the NAB Show, IMT highlighted one of the first planned integrations of the MLT-Aerial, with Aerobo’s Micro Unmanned Aerial System, known as the Mini. Aerobo designs, builds and operates drones for clients in news, TV, sports, advertising, as well as cinema and inspection. The Mini is a lightweight drone designed to exceed the safety standards set forth in the Micro UAS category of the proposed new FAA regulations.

“We recognize the significant potential impact drones can have on Electronic News Gathering (ENG) operations due to the advantages they offer in cost, safety and convenience over traditional manned helicopter approaches,” says John Payne IV, president of IMT. “As a result, the ENG drone market represents an exciting opportunity for IMT. The Aerobo Mini is a unique, state-of-the art piece of equipment that enables news operators to capture incredible views from above. We designed the MLT-Aerial Transmitter to limit size, weight and power consumption without sacrificing the microLite’s quality our customers have become accustomed to. We also integrated a new antenna design customized specifically for use with micro drones. The MLT-Aerial’s compact, impressive technology makes it a key component to micro drones, and it is the product of choice when broadcast quality, exceptional range and reliability are required.”

According to a study by Teal Group, the UAV market is expected to represent the most dynamic growth sector of the world aerospace industry over the next decade. Some of the sectors considered to have the most promising applications for drones include military, law enforcement, and industrial, key sectors for both IMT and xG Technology.

George Schmitt, CEO and Board Chairman of xG Technology, said, “We are pleased that IMT is taking a leadership position in the market for video transmission technology for drones. As drone-based applications expand, the need for secure radios to control them will become a critical requirement. That need is filled by the reliable and resilient communications that the xMax platform delivers. We plan to work closely with IMT to integrate xMax capabilities into their advanced video offerings to enhance the value of their solutions.”

About xG Technology, Inc.

Cautionary Statement Regarding Forward Looking Statements

Statements contained herein that are not based upon current or historical fact are forward-looking in nature and constitute forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Such forward-looking statements reflect the Company’s expectations about its future operating results, performance and opportunities that involve substantial risks and uncertainties. These statements include but are not limited to statements regarding the intended terms of the offering, closing of the offering and use of any proceeds from the offering. When used herein, the words “anticipate,” “believe,” “estimate,” “upcoming,” “plan,” “target”, “intend” and “expect” and similar expressions, as they relate to xG Technology, Inc., its subsidiaries, or its management, are intended to identify such forward-looking statements. These forward-looking statements are based on information currently available to the Company and are subject to a number of risks, uncertainties, and other factors that could cause the Company’s actual results, performance, prospects, and opportunities to differ materially from those expressed in, or implied by, these forward-looking statements.

For More Information:

Media Relations
Daniel Carpini
xG Technology
daniel.carpini@xgtechnology.com
(941) 953-9035

Investor and Analyst Relations
James Woodyatt
xG Technology
james.woodyatt@xgtechnology.com
(954) 572-0395

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Part of xG’s Multi-Layered Interference Mitigation Technology that Delivers Enhanced Communications Performance and Efficiency in both Congested and Contested Spectrum

Sarasota, Florida—May 5, 2016—xG Technology, Inc. (“xG” or the “Company”) (Nasdaq: XGTI, XGTIW), a leader in providing critical wireless communications for use in challenging operating environments, announced today that it has been awarded a new patent covering an advanced employment of Multiple Input—Multiple Output (MIMO) antennas that significantly improves wireless communications. The patent, “MIMO Antenna Design Used in Fading Environments,” describes an intelligent antenna design than helps maintain robust, reliable and resilient links despite adverse spectral conditions.

George Schmitt, CEO and Board Chairman of xG Technology, said, “xG’s core wireless technology is unique in that its layered cognitive radio approach provides a level of resilience that enhances RF performance in both congested spectrum as well as contested spectrum. This extends resistance to interference to levels heretofore unachievable. Our technology incorporates advanced signal processing methodologies, including Dynamic Spectrum Access (DSA), intelligent and active interference mitigation, and advanced employment of MIMO antennas as outlined in this patent. As a whole, these capabilities deliver significant operational benefits in a number of market sectors. This is particularly true for those that must deal with challenging operating environments and limited spectrum resources, such as the military services, public safety and emergency management.”

As mobile networks have become more complex and the demand for increased capacity and reliable transmissions has soared, MIMO has become an essential component of advanced wireless communications. MIMO techniques, such as those outlined in this latest xG patent, allow for sending and receiving more than one data signal with the same radio channel simultaneously. In addition to being able to track and cancel interference from multiple sources, xG MIMO processing allows more efficient use of the radio channel. This can lead to improvements such as higher data rates, increased system capacity and enhanced reliability of communications links.

Unlike traditional cellular systems, xG’s xMax broadband wireless solution was engineered on an expeditionary-design basis to provide highly mobile, scalable, anywhere, anytime connectivity, regardless of spectral conditions or adverse events that negatively impact communications.

About xG Technology, Inc.

Founded in 2002, xG Technology has created a broad portfolio of intellectual property that enables always-available, always-connected and always-secure voice, broadband data and video communications. The company is the developer of xMax, a patented all-IP software-defined cognitive radio network that delivers mission-assured wireless connectivity in any RF environment. xMax provides a solution to the challenges of interoperability, survivability and flexibility in expeditionary and critical communications networks. xMax can be deployed as fixed or mobile infrastructure to enhance and integrate seamlessly with legacy communications systems, both private and commercial. Access and priority can be controlled, and in the event of congestion, failure or denial of access to commercial networks, xMax provides a fully secure, scalable, private and highly resilient network for essential communications – all at zero bandwidth cost.

xMax incorporates advanced optimizing technologies that include spectrum sharing, interference mitigation, multiple-input multiple-output (MIMO) and software defined radio (SDR). These and other technologies make xMax ideal for wide area, as well as rapid emergency communication deployment in unpredictable environments and during fluid situations. xG offers solutions for numerous industries worldwide, including military, emergency response and public safety, telemedicine, urban and rural wireless broadband, utilities, and critical infrastructure.

xG’s Integrated Microwave Technologies (IMT) business unit further supports xG’s military and public safety customers with its mission-critical wireless video solutions. IMT is a leader in advanced digital microwave systems and a provider of engineering, integration, installation and commissioning services serving the MAG (Military, Aerospace & Government), broadcast, and sports & entertainment markets. IMT’s product lines include digital broadcast microwave video systems and compact microwave video equipment for licensed and license-free applications. More information on IMT can be found at www.imt-solutions.com.

For More Information:

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Sarasota, Florida—May 23, 2016 —xG Technology, Inc. (“xG” or the “Company”) (Nasdaq: XGTI, XGTIW), a leader in providing critical wireless communications for use in challenging operating environments, announced its results for the first quarter ended March 31, 2016. Management will hold a conference call to discuss these results on May 24, 2016 at 5:00 p.m. Eastern Time (details below).

Key Recent Accomplishments

Completed the acquisition of certain assets and liabilities that constitute the business of Integrated Microwave Technologies, LLC (IMT), which has become a business unit of xG. The acquisition enables xG to realize immediate and long-term financial, operational and technological benefits.
Received a sole source award to supply the U.S. Army Intelligence Electronic Warfare Test Directorate (IEWTD) with xMax cognitive networking equipment that will serve as a mobile tactical communications infrastructure.
Was awarded two new patents:
- “Method to Enable Rapid Scanning by Cognitive Radios”—an approach for simultaneously maintaining both end user Quality of Service (QoS) levels and the flexibility and agility required in an on-the-move cognitive wireless network.
- “MIMO Antenna Design Used in Fading Environments,”—an intelligent antenna design than helps maintain robust, reliable and resilient links despite adverse spectral conditions.

George Schmitt, CEO and Chairman of the Board of xG Technology, said, “In Q1 2016, xG realized two key accomplishments that set the stage for executing on future growth opportunities for the company. Most important, our acquisition of the IMT business unit is enabling impressive synergies between the two business units in the following areas: onsite product hardware manufacturing and development, cross-marketing of each company’s respective solutions and alignment of technology and product development roadmaps. Moreover, integrating the operations of IMT and xG is resulting in substantial costs savings that will help xG realize its next stage of growth.”

Mr. Schmitt continued, “The second major accomplishment we realized was the sole-source award xG received from the US Army. It underscored the appeal of xG’s industry-leading interference mitigation technologies, which remain unmatched in their ability to support mission-critical operations with a tactical broadband communications solution. We look forward to building on this order and working closely with military and public safety entities to ensure they have at their disposal the resilient, robust and secure capabilities that xMax delivers.”

Roger Branton, CFO of xG Technology, said, “We are pleased to note that xG realized record quarterly revenue in Q1 2016, of which two months of revenue is attributable to IMT as the acquisition closed on January 29, 2016. We expect the strong revenue achieved in Q1 to continue in the Q2 period. The cost reduction initiatives we began during Q1 2016 (which were announced after the close of the quarter) have further reduced xG’s overall monthly operating expenses to approximately $500,000 on the xMax brand. This has strengthened xG’s financial foundation and ability to profitably pursue new business opportunities and initiatives going forward.”

Review of Results

Total first quarter 2016 revenues were $929,000 compared to $584,000 revenue in the first quarter of 2015. Revenue generated from equipment sales totaled $910,000 and revenue from consulting revenue totaled $19,000.

First quarter operating loss was $4.6 million compared to operating loss of $4.0 million in the first quarter of 2015.

Net loss attributable to common shareholders was $4.4 million, or $(0.18) per share compared to $4.6 million, or $(1.54) per share in the first quarter of 2015.

xG ended first quarter 2016 with $484,000 in cash compared to $368,000 at December 31, 2015.

xG continues to actively evaluate various alternatives of financing in order to obtain additional capital to allow the Company to deliver its products, including further stock sales.

Financial Results Conference Call Details

xG management will hold a conference call to discuss xG’s Q1 2016 results on May 24, 2016 at 5:00 p.m. Eastern Time. To participate in the conference call, please call 877-870-4263 (toll free) or 1-412-317-0790 (international call-in) and ask to join the xG Technology call. For those who cannot participate in the call, an audio replay will be available on xG’s website at http://www.xgtechnology.com/about-xg-technology/investor-information/

About xG Technology, Inc.

Cautionary Statement Regarding Forward Looking Statements

For More Information:

Media Relations
Daniel Carpini
xG Technology
daniel.carpini@xgtechnology.com
(941) 953-9035

Investor and Analyst Relations
James Woodyatt
xG Technology
james.woodyatt@xgtechnology.com
(954) 572-0395

xG TECHNOLOGY, INC.
UNAUDITED CONDENSED STATEMENTS OF OPERATIONS
(IN THOUSANDS EXCEPT NET LOSS PER SHARE DATA)

	For the Three Months Ended
	March 31,
	2016			2015
Revenue	$	929		$	584
Cost of revenue and operating expenses
Cost of components and personnel		426			330
Inventory valuation adjustments		70			—
General and administrative expenses		2,038			1,719
Research and development expenses		1,660			1,550
Amortization and depreciation		1,352			960
Total cost of revenue and operating expenses		(5,546	)		4,559
Loss from operations		(4,617	)		(3,975	)
Other income (expense)
Changes in fair value of derivative liabilities		514			485
Bargain purchase gain		512			—
Interest expense		(472	)		(47	)
Total other income		554			438
Net loss	$	(4,063	)	$	(3,537	)
Dividends and deemed dividends		370			1,070
Net loss attributable to common shareholders	$	(4,433	)	$	(4,607	)
Basic and diluted net loss per share	$	(0.18	)	$	(1.54	)
Weighted average number of shares outstanding basic and diluted		24,788			2,998

xG TECHNOLOGY, INC.
CONDENSED BALANCE SHEETS
(IN THOUSANDS EXCEPT PER SHARE DATA)

	March 31, 2016 (unaudited)			December 31, 2015
ASSETS
Current assets
Cash	$	484		$	368
Accounts receivable, net of allowance of $105 and $87 ($138 and $138 from related party, respectively)		1,210			641
Inventories, net		3,196			777
Prepaid expenses and other current assets		117			15
Total current assets		5,007			1,801
Inventories, net		2,078			2,078
Property and equipment, net		855			792
Intangible assets, net		11,121			11,903
Total assets	$	19,061		$	16,574
LIABILITIES AND STOCKHOLDERS’ EQUITY (DEFICIT)
Current liabilities
Accounts payable	$	1,493		$	1,196
Accrued expenses		766			252
Accrued interest ($93 and $56 due to related party)		180			137
Due to related parties		466			324
Deferred revenue and customer deposits		294			149
Deferred rent		141			—
Payment to IMT		500			—
Convertible notes payable		—			781
Obligation under capital leases		54			54
Derivative liabilities		938			1,284
Total current liabilities		4,832			4,177
Long-term obligation under capital leases, net of current portion		94			106
Payment to IMT, net of current portion		2,500			—
Convertible note payable		2,000			2,000
Total liabilities		9,426			6,283
Commitments and contingencies
Series B convertible preferred stock – $0.00001 par value per share: 5,000,000 and 0 shares designated at March 31, 2016 and December 31, 2015; 1,664,853 and 0 issued and outstanding as of March 31, 2016 and December 31, 2015 (liquidation preference of $1,664,853 and $0 at March 31, 2016 and December 31, 2015)		1,151			—
Total convertible preferred stock		1,151			—
Stockholders’ equity
Preferred stock – $0.00001 par value per share: 10,000,000 shares authorized as of March 31, 2016 and December 31, 2015; 1,664,853 and 0 issued or outstanding as of March 31, 2016 and December 31, 2015		—			—
Common stock, – $0.00001 par value, 100,000,000 shares authorized, 43,257,037 and 20,227,701 shares issued and 43,256,808 and 20,227,472 outstanding as of March 31, 2016 and December 31, 2015, respectively		—			—
Additional paid in capital		200,966			198,710
Treasury stock, at cost – 229 shares at March 31, 2016 and December 31, 2015, respectively		(22	)		(22	)
Accumulated deficit		(192,460	)		(188,397	)
Total stockholders’ equity		8,484			10,291
Total liabilities and stockholders’ equity	$	19,061		$	16,574

The post xG Technology Reports First Quarter 2016 Results and Conference Call appeared first on xG Technology.

HD Video Transmitter Captured Unprecedented On-Ice Footage During the Games; It Will be Featured in Future Professional Hockey Matches in the US and Canada

Sarasota, Florida—June 1, 2016—Integrated Microwave Technologies (IMT), an xG Technology business unit and the leader in advanced digital microwave systems serving the broadcast, sports, entertainment and law enforcement markets, announces that its RefCam HD-I (“RefCam”) integrated sports camera and transmitter was featured as an integral part of the Canadian Hockey League’s Memorial Cup broadcast. The RefCam HD-I is a COFDM (Coded Orthogonal Frequency Division Multiplexing), HD video transmitter with an integrated high definition camera that captured unprecedented footage from the referee’s point-of-view—bringing fans an entirely new way to experience the sport.

The Memorial Cup tournament, which concluded this past weekend, was broadcast across Canada on Sportsnet, a multichannel brand property of Canadian media giant Rogers. The games were also broadcast on the NHL Network in the U.S.

The RefCam was previously used at the 2016 NHL All-Star Game in Nashville, TN, allowing viewers to see on-ice shots of their favorite players. IMT also showcased the RefCam at the NAB (National Association of Broadcasters) 2016 Show last month in Las Vegas, NV. It is expected to be used in future high-profile professional hockey games and tournaments.

“The RefCam HD-I transmitter brings viewers closer to the action at live sporting events than ever before and we are excited to have it being used extensively throughout the Memorial Cup broadcast,” says John Payne IV, President of IMT. “It allows fans to experience the event from an entirely new perspective. With the Memorial Cup, IMT gains a superb platform to showcase the capabilities of our technology to the broadcast world.”

George Schmitt, CEO and Board Chairman of xG Technology, said, “The announcement of the deployment of the RefCam product is another example of the innovations IMT is bringing to the markets they serve, in this case the sports and entertainment sector. It will serve to strengthen the strong presence they already have among leading sports leagues and teams.”

“We could not be more excited for the RefCam HD-I to be involved with the broadcast of the Memorial Cup,” said Chris Stramacchia, Founder of iSee, IMT’s integration partner for the RefCam. “The RefCam HD-I delivers incredible live shots of the faceoff and live-action goal shots. As the games progressed, the league gained confidence in the reliability and superb image quality and has used the live feed repeatedly.”

The RefCam HD-I was specifically created to be worn with or integrated into a sports helmet in a small, low-power consumption form factor. Featuring a sleek, contoured design, the RefCam HD-I is unobtrusive to the wearer as well as players. With an easy to clip on battery module, users have over one hour of continuous runtime and can easily switch out batteries in between play.

Additional RefCam product information can be viewed at http://www.imt-broadcast.com/refcam-transmitter-hd-i.

About xG Technology, Inc.

Cautionary Statement Regarding Forward Looking Statements

For More Information:

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Five-inch Wireless Diversity Receiver Enables Ultimate Portability While Providing Real-time Live Video from both Ground and Airborne Mobile Platforms

Sarasota, Florida—June 15, 2016—Integrated Microwave Technologies (IMT), an xG Technology business unit and the leader in advanced digital microwave systems serving the broadcast, sports, entertainment and law enforcement markets, announces the launch of its Mini DirectVu Handheld Video Assist COFDM Diversity Receiver (“Mini DirectVu”).

The Mini DirectVu is ideal for ensuring high quality and reliable wireless video links in both line-of-sight (LOS) and non-line-of-sight conditions, making it well-suited for use in fluid, high-mobility situations. It is a compact, lightweight, battery-powered unit that is ruggedized to provide maximum portability.

“We based the new Mini DirectVu on our existing nine-inch DirectVu, which allows us to provide an unequaled value in a high-quality COFDM receiver/monitor for law enforcement operations, ENG (Electronic News Gathering), confidence monitoring, sporting events and video-assist applications,” says John Payne IV, president of IMT. “Today, with wireless video being used in more and more situations, including UAV applications, we’re offering a product that has a smaller form factor and a touch screen LCD. This makes it ideal for use in tactical public safety settings, as well as for creatives who want to make sure they get outstanding images with minimal setup and hassle. Overall, it was designed with the user and their application in mind.”

George Schmitt, CEO and Board Chairman of xG Technology, said, “IMT’s Mini DirectVu receiver is ideal for providing immediate and reliable reception to users requiring maximum mobility. It is equally compelling as a tactical device in critical situations as it is for capturing broadcast news and sporting events, making it adaptable to a wide variety of use cases.”

The Mini DirectVu is a COFDM (DVB-T compliant) dual-input maximal ratio combining diversity handheld receiver with an integrated five-inch high brightness touch screen LCD display. It offers exceptional RF performance and durability, true ease of operation, and superior video quality delivered with MPEG-4 (H.264) and MPEG-2 high profile auto detect decoding.

When paired with IMT’s RF Central microLite wireless camera transmitter, the Mini DirectVu offers a comprehensive, rapidly-deployable video and audio solution that enables advanced situational awareness. It also has optional AES decryption capabilities that make it well-suited for applications ranging from public safety monitoring to covert surveillance.

The receiver can also be configured with additional features that take it far beyond standard COFDM handheld receivers. Optional add-ons include DVR record and playback functionality, using standard playback controls, and a built-in Real Time Streaming Protocol (RTSP) server that enables video streaming over Ethernet for remote software or hardware decoders. This allows multiple remote viewers to monitor the same video simultaneously.

Additional Mini DirectVu product information can be viewed at http://www.imt-broadcast.com/mini-directvu

About xG Technology, Inc.

Founded in 2002, xG Technology has created a broad portfolio of intellectual property that enables always-available, always-connected and always-secure voice, broadband data and video communications. The company’s technology portfolio includes solutions marketed under xG’s xMax brand as well as under the brands of its business unit Integrated Microwave Technologies (IMT).

xMax is a patented all-IP software-defined cognitive radio network that delivers mission-assured wireless connectivity in any RF environment. xMax provides a solution to the challenges of interoperability, survivability and flexibility in expeditionary and critical communications networks. xMax can be deployed as fixed or mobile infrastructure to enhance and integrate seamlessly with legacy communications systems, both private and commercial. Access and priority can be controlled, and in the event of congestion, failure or denial of access to commercial networks, xMax provides a fully secure, scalable, private and highly resilient network for essential communications – all at zero bandwidth cost.

xMax incorporates advanced optimizing technologies that include spectrum sharing, interference mitigation, multiple-input multiple-output (MIMO) and software defined radio (SDR). xMax offers key benefits for numerous industries worldwide, including military, emergency response and public safety, telemedicine, urban and rural wireless broadband, utilities, and critical infrastructure.

IMT further supports xG’s military and public safety customers with its mission-critical wireless video solutions. IMT is a leader in advanced digital microwave systems and a provider of engineering, integration, installation and commissioning services serving the MAG (Military, Aerospace & Government), broadcast, and sports & entertainment markets. IMT’s product lines include digital broadcast microwave video systems and compact microwave video equipment for licensed and license-free applications. More information on IMT can be found at www.imt-solutions.com.

Cautionary Statement Regarding Forward Looking Statements

For More Information:

Media Relations
Daniel Carpini
xG Technology
daniel.carpini@xgtechnology.com
(941) 953-9035

Investor and Analyst Relations
James Woodyatt
xG Technology
james.woodyatt@xgtechnology.com
(954) 572-0395

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Sarasota, Florida—June 20, 2016—xG Technology, Inc. (“xG” or the “Company”) (Nasdaq: XGTI, XGTIW), a leader in providing critical wireless communications for use in challenging operating environments, announced that a 1-for-12 reverse split (the “Reverse Stock Split”) of its common stock (the “Common Stock”) became effective as of the close of business on Monday, June 20, 2016, and the Common Stock will begin trading on a split-adjusted basis on Tuesday June 21, 2016.

In connection with the Reverse Stock Split, the CUSIP number for the Common Stock has been changed to 98372A 606.

Information to Stockholders

Continental Stock Transfer & Trust Company is acting as exchange agent for the Reverse Stock Split and will send instructions to stockholders of record who hold stock certificates regarding the exchange of certificates for Common Stock. Stockholders who hold their shares of Common Stock in brokerage accounts or “street name” are not required to take any action to effect the exchange of their shares following the Reverse Stock Split. Continental Stock Transfer & Trust Company may be reached for questions at (212) 509-4000.

More information on the Reverse Stock Split can be found in xG’s Form 8-K, which was filed with the Securities and Exchange Commission on June 20, 2016. Additional information on xG’s Reverse Stock Split will be available beginning on or about June 21, 2016 in “Frequently Asked Questions” on the Company’s website at http://www.xgtechnology.com/about-xg-technology/investor-information/.

About xG Technology, Inc.

Founded in 2002, xG Technology has created a broad portfolio of intellectual property that enables always-available, always-connected and always-secure voice, broadband data and video communications. The company’s technology portfolio includes solutions marketed under xG’s xMax brand as well as under the brands of its business unit Integrated Microwave Technologies (IMT).

xMax incorporates advanced optimizing technologies that include spectrum sharing, interference mitigation, multiple-input multiple-output (MIMO) and software defined radio (SDR). xMax offers key benefits for numerous industries worldwide, including military, emergency response and public safety, telemedicine, urban and rural wireless broadband, utilities, and critical infrastructure.

Cautionary Statement Regarding Forward Looking Statements

For More Information:

Media Relations
Daniel Carpini
xG Technology
daniel.carpini@xgtechnology.com
(941) 953-9035

Investor and Analyst Relations
James Woodyatt
xG Technology
james.woodyatt@xgtechnology.com
(954) 572-0395

The post xG Technology, Inc. Announces 1-for-12 Reverse Stock Split Now Effective appeared first on xG Technology.

Aerial-based Video Transmission Solution Delivers Real-time Surveillance to Enhance
Law Enforcement, Emergency and Critical Infrastructure Operations

Sarasota, Florida—July 6, 2016—Integrated Microwave Technologies (IMT), an xG Technology business unit and the leader in advanced digital microwave systems serving the broadcast, sports, entertainment and law enforcement markets, announces that it will be showcasing the Airborne Video Downlink System (“AVDS”) at the ALEA EXPO 2016, July 18-23 (Booth 501). AVDS is comprised of an integrated suite of downlink transmitters, receivers and antennas that capture real-time, reliable high-definition video from drones, helicopters and other aircraft for display at command centers, mobile units and on video management systems.

The AVDS video transmission solution, which has been deployed by law enforcement agencies, adds an additional layer of safety and security to missions being carried out on the ground. It can play a key role in surveillance, assessment and deployment operations. When xG’s xMax mobile broadband system is deployed in conjunction with AVDS, it adds a secure, resilient, bi-directional communications layer to the solution.

“IMT’s Airborne Video Downlink System offers a complete downlink and distribution system for aircraft that includes a tactical receiver, a fixed receiver, state and county-wide IP diversity/aggregation systems, local hardware decode, video archive and IP video distribution systems,” says Sean Drew, IMT Business Development Manager, Law Enforcement. “It is the most cost-effective solution for any law enforcement entity to have a state-of-the-art, turnkey system that can improve video workflow for its aviation units.”

George Schmitt, CEO and Board Chairman of xG Technology, said, “IMT’s AVDS package is essential for improving situational awareness, by giving those on the ground a clear and reliable picture of what is being captured from airborne units. When xMax is included, it becomes an even more comprehensive mobile communications platform for mission-critical needs. This is an example of the type of synergies resulting from the integration of xG and IMT’s respective technologies.”

AVDS components include the Mini MobilCMDR, CIRAS-x6, CRx6 and DR3 IP Diversity Receiver, as well as the new VNS Video Streaming Server. The Mini MobilCMDR is a small, ruggedized COFDM (DVB-T compliant) diversity handheld receiver/monitor. It features AES Bcrypt decryption capabilities that make it ideal for applications ranging from public security monitoring to covert surveillance.

The CIRAS-x6 (Central Integrated Radome System x6) is a ruggedized COFDM (DVB-T compliant) six-way diversity receiver integrated into a six-segment antenna pod. It is designed to automatically optimize the receive signal at all times, and virtually eliminate all human intervention. The CRx6 is a ruggedized six-way diversity receiver designed to withstand any weather conditions. The DR3 is a third-generation diversity receiver designed for the most demanding central receive and portable applications.

The new VNS Video Streaming Server delivers video captured via aircraft to unlimited mobile devices over WiFi, cellular and xMax networks. Video can also be sent to fixed receive sites, which can then communicate back and forth with command sites for total video system integration. HD video is adaptively transcoded for the target device and network conditions ensuring unprecedented reliability, and does not require any special proprietary software viewer.

About xG Technology, Inc.

Founded in 2002, xG Technology has created a broad portfolio of intellectual property that enables always-available, always-connected and always-secure voice, broadband data and video communications. The company’s technology portfolio includes solutions marketed under xG’s xMax brand as well as under the brands of its business unit Integrated Microwave Technologies (IMT).

xMax incorporates advanced optimizing technologies that include spectrum sharing, interference mitigation, multiple-input multiple-output (MIMO) and software defined radio (SDR). xMax offers key benefits for numerous industries worldwide, including military, emergency response and public safety, telemedicine, urban and rural wireless broadband, utilities, and critical infrastructure.

For More Information:

The post xG Technology’s IMT Business Unit Will Showcase its Airborne Video Downlink System (AVDS) at ALEA EXPO 2016 appeared first on xG Technology.

All-in-One Solution Will Integrate xMax Broadband Network Technology with
Radio IP Secure VPN and CORIS® Mobile Offender Management System

Sarasota, Florida—July 12, 2016 —xG Technology, Inc. (“xG” or the “Company”) (Nasdaq: XGTI, XGTIW), a leader in providing critical wireless communications for use in challenging operating environments, announces that it has entered into a teaming agreement with Abilis Solutions, Inc. (“Abilis”) and Radio IP Software, Inc. (“Radio IP”) to include xMax broadband network technology in a secure wireless system for use by correctional agencies.

The goal of the agreement will be to deliver an all-in-one solution that integrates xMax wireless network architecture and Radio IP’s secure VPN features with Abilis’ CORIS^© Mobile Offender Management System. Abilis has successfully operated a proof of concept in a detention facility which evaluated the features, functionality and performance of the integrated system.

George Schmitt, CEO and Chairman of the Board of xG Technology, said, “We are pleased to collaborate with Radio IP and Abilis in this agreement to explore the integration of xMax broadband technology with CORIS® Mobile. xMax provides a highly secure, interoperable and efficient communications layer that is a perfect complement to the CORIS® Mobile platform. The high levels of sensitive information shared and transacted among correctional agencies offer ample opportunities for the xMax solution in this sector.”

“The use of secure applications on mobile devices has already been proven to efficiently deliver essential information to corrections officers in the community. However, given the complex design and construction of prison environments, the benefits of CORIS® Mobile inside the facility have been impossible to achieve,” said Eric Le Goff, President and CTO of Abilis Solutions. “Now, through this partnership with xG Technology and Radio IP, we have demonstrated that corrections agencies can cost-effectively deploy a powerful, secure broadband network to ensure a high level of confidentiality and security across the agency’s mobile devices. This is certainly a positive development for corrections agencies that seek opportunities to improve operational effectiveness while dealing with ever-present budget limitations.”

Roch Tremblay, Chief Operating Officer of Radio IP, said, “Merging the strong wireless networking capabilities of xG Technology and the powerful roaming and encryption functionalities of Radio IP provides a solution that employs a highly secure and available wireless network that answers CORIS® Mobile service needs for the corrections domain.”

xG signed a co-marketing agreement with Radio IP in 2015. They offer advanced VPN solutions that enable constant, uninterrupted network availability and a predictable data transfer and application experience. They help improve wireless data communications on mission-critical mobile networks by providing capabilities including application session persistence, encryption and roaming to almost all available public and private networks.

Abilis is a leading provider of purpose-built, cloud-based and mobile-based offender management solutions to high-volume corrections agencies. CORIS® is a proven, state-of-the-art offender management system (OMS) that provides comprehensive coverage of corrections business processes. Designed to efficiently capture and manage critical data about every offender, the CORIS® product line enables business process consistency and accuracy. Recognizing the growing acceptance of wireless device usage for specific business purposes, Abilis has delivered a set of corrections-specific applications that are iOS, Android and Windows compatible.

Already in use by more than a thousand officers, CORIS® Mobile enables staff to securely access the offender database to perform offender searches, log notes from interactions, receive instant push notifications, and track officers in the field, thereby increasing operational efficiency and data accuracy. The CORIS® Mobile application can also be easily customized to extend the data and functionality it exposes to users.

About xG Technology, Inc.

Founded in 2002, xG Technology has created a broad portfolio of intellectual property that enables always-available, always-connected and always-secure voice, broadband data and video communications. The company’s technology portfolio includes solutions marketed under xG’s xMax brand as well as under the brands of its business unit Integrated Microwave Technologies (IMT).

xMax incorporates advanced optimizing technologies that include spectrum sharing, interference mitigation, multiple-input multiple-output (MIMO) and software defined radio (SDR). xMax offers key benefits for numerous industries worldwide, including military, emergency response and public safety, telemedicine, urban and rural wireless broadband, utilities, and critical infrastructure.

IMT further supports xG’s military and public safety customers with its mission-critical wireless video solutions. IMT is a leader in advanced digital microwave systems and a provider of engineering, integration, installation and commissioning services serving the MAG (Military, Aerospace & Government), broadcast, and sports and entertainment markets. IMT’s product lines include digital broadcast microwave video systems and compact microwave video equipment for licensed and license-free applications. More information on IMT can be found at www.imt-solutions.com.

About Radio IP Software, Inc.

Established in 1998, Radio IP Software specializes in delivering innovative Mobile Virtual Private Network and mobile security solutions to small and large enterprises, as well as military, public safety, utilities, transportation and government agencies with mission-critical or business-critical communication requirements. Our portfolio of mobile VPN solutions overcomes the performance, security, connectivity and roaming challenges associated with wireless networks to achieve faster response times, providing mobile workforces with secure, real-time access to a wide range of applications and networks. Designed for today’s wireless and mobile environments, our solutions enable mobile users to seamlessly roam across all network environments—private mobile radio (PMR), cellular data (3G/4G), satellite and mobile broadband—under a single interoperable TCP/IP standard. Among the benefits our solutions offer are uninterrupted, secure mobile roaming between disparate wireless and wired networks over a broad range of devices; secure, reliable network and application access with encryption and advanced authentication; and advanced multi-agency/site administration capabilities that drive cost-efficiencies. For more information, visit www.radioip.com.

About Abilis Solutions Corp.

Abilis Solutions helps corrections agencies around the world to manage their offender populations safely, efficiently and intelligently. We are committed to delivering systems, tools and expertise to help corrections agencies around the world address a rapidly changing mandate. Abilis is a leader in the design and delivery of innovative, COTS-based solutions which offer a comprehensive and evergreen technology strategy to ensure quick deployment and long-term flexibility. The CORIS® product suite offers scalable, modular and configurable offender management systems and tools which automate business processes across jail, prison and community corrections operations. Abilis delivers secure, purpose-built mobile applications for probation and parole officers, as well as prison-based officers, and sophisticated business intelligence capabilities to aid corrections executives in their decision-making efforts. Collectively, CORIS® manages more than 220,000 offenders, probationers and parolees. Over 25,000 corrections professionals use CORIS® in more than 280 secure facilities and community corrections offices. Abilis Solutions is headquartered in Montreal, Canada with US divisions in Portland, Maine and Nashville, Tennessee, as well as offices in Europe. To read more about Abilis, please visit our website www.abilisne.com.

Cautionary Statement Regarding Forward Looking Statements

For More Information:

VP CORIS® Business Development
Ken McGovern
Abilis Solutions
245 Commercial Street, Suite 303
Portland, ME 04101
kmcgovern@abilisne.com

The post xG Technology Partners with Radio IP and Abilis Solutions to Test Secure Wireless System for Use by Correctional Agencies appeared first on xG Technology.

Sarasota, Florida—July 15, 2016— xG Technology, Inc. (“xG” or the “Company”) (Nasdaq: XGTI, XGTIW), a leader in providing critical wireless communications for use in challenging operating environments, announced today the pricing of an underwritten public offering of 7,300,000 Units, at a price of $0.685 per Unit, each of which consists of one share of its common stock and 1.25 of a Warrant to purchase one share of its common stock at an exercise price of $0.685 per share. The Company has also granted to the underwriters a 45-day option to acquire an additional 1,095,000 shares and/or 1,368,750 warrants to cover overallotments in connection with the offering. After the underwriting discount and estimated offering expenses payable by the company, the company expects to receive net proceeds of approximately $4.34 million, assuming no exercise of the overallotment option.

xG intends to use the net proceeds from this offering for general corporate purposes, including working capital, product development, partial reduction of liabilities, marketing activities, expanding our internal sales organization and further developing sales channels and other capital expenditures.

The offering is expected to close on July 20, 2016, subject to customary closing conditions.

Roth Capital Partners is acting as sole book-running manager for the offering. Aegis Capital Corp. is acting as co-lead manager for the offering.

The shares described above are being offered by xG pursuant to a registration statement on Form S-1 (File No. 333-212254) previously filed with and subsequently declared effective by the Securities and Exchange Commission on July 14, 2016. A final prospectus relating to the offering will be filed with the SEC and will be available on the SEC’s website at http://www.sec.gov.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy any of the securities described herein, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction. Copies of the preliminary prospectus supplement and accompanying base prospectus relating to this offering may be obtained from Roth Capital Partners, 888 San Clemente Drive, Suite 400, Newport Beach, CA 92660, (800) 678-9147 or by accessing the SEC’s website, www.sec.gov.

About xG Technology, Inc.

Founded in 2002, xG Technology has created a broad portfolio of intellectual property that enables always-available, always-connected and always-secure voice, broadband data and video communications. The company’s technology portfolio includes solutions marketed under xG’s xMax brand as well as under the brands of its business unit Integrated Microwave Technologies (IMT).

xMax incorporates advanced optimizing technologies that include spectrum sharing, interference mitigation, multiple-input multiple-output (MIMO) and software defined radio (SDR). xMax offers key benefits for numerous industries worldwide, including military, emergency response and public safety, telemedicine, urban and rural wireless broadband, utilities, and critical infrastructure.

Cautionary Statement Regarding Forward Looking Statements

For More Information:

Media Relations
Daniel Carpini
xG Technology
daniel.carpini@xgtechnology.com
(941) 953-9035

Investor and Analyst Relations
James Woodyatt
xG Technology
james.woodyatt@xgtechnology.com
(954) 572-0395

The post xG Technology, Inc. Prices Underwritten Public Offering of Units appeared first on xG Technology.

Sarasota, Florida—July 20, 2016— xG Technology, Inc. (“xG” or the “Company”) (Nasdaq: XGTI, XGTIW), a leader in providing critical wireless communications for use in challenging operating environments, announced today that it has closed the previously announced public underwritten offering of its Units. The Company sold to the underwriters 7,300,000 Units, at a price of $0.685 per Unit, each of which consists of one share of its common stock and 1.25 of a warrant to purchase one share of its common stock at an exercise price of $0.685 per share. The Company also granted to the underwriters a 45-day option to acquire an additional 1,095,000 shares of common stock and/or warrants to purchase 1,368,750 shares of common stock to cover over-allotments. On July 15, 2016, the underwriters exercised their over-allotment option to purchase warrants to purchase 1,368,750 shares of common stock. The Company received approximately $4.44 million in net proceeds from the offering, including exercise of the over-allotment option, after deducting the underwriting discount and estimated offering expenses payable by the Company.

xG intends to use the net proceeds from this offering for general corporate purposes, including working capital, product development, partial reduction of liabilities, marketing activities, expanding its internal sales organization and further developing sales channels and other capital expenditures.

Roth Capital Partners acted as the sole book-running manager for the offering. Aegis Capital Corp. acted as co-lead manager for the offering.

The securities described above were offered by xG pursuant to a registration statement on Form S-1 (File No. 333-212254) previously filed with and subsequently declared effective by the Securities and Exchange Commission (the “SEC”) on July 14, 2016. A final prospectus relating to the offering was filed with the SEC on July 15, 2016 and is available on the SEC’s website at http://www.sec.gov. Copies of the final prospectus relating to this offering may also be obtained from Roth Capital Partners, LLC, Equity Capital Markets, 888 San Clemente Drive, Suite 400, Newport Beach, CA 92660 at (800) 678-9147.

This press release shall not constitute an offer to sell or a solicitation of an offer to buy any of the securities described herein, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.

About xG Technology, Inc.

Founded in 2002, xG Technology has created a broad portfolio of intellectual property that enables always-available, always-connected and always-secure voice, broadband data and video communications. The company’s technology portfolio includes solutions marketed under xG’s xMax brand as well as under the brands of its business unit Integrated Microwave Technologies (IMT).

xMax incorporates advanced optimizing technologies that include spectrum sharing, interference mitigation, multiple-input multiple-output (MIMO) and software defined radio (SDR). xMax offers key benefits for numerous industries worldwide, including military, emergency response and public safety, telemedicine, urban and rural wireless broadband, utilities, and critical infrastructure.

Cautionary Statement Regarding Forward Looking Statements

Statements contained herein that are not based upon current or historical fact are forward-looking in nature and constitute forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Such forward-looking statements reflect the Company’s expectations about its future operating results, performance and opportunities that involve substantial risks and uncertainties. These statements include but are not limited to statements regarding the intended terms of the offering, closing of the offering and use of any proceeds from the offering. When used herein, the words “anticipate,” “believe,” “estimate,” “upcoming,” “plan,” “target”, “intend” and “expect” and similar expressions, as they relate to xG Technology, Inc., its subsidiaries, or its management, are intended to identify such forward-looking statements. These forward-looking statements are based on information currently available to the Company and are subject to a number of risks, uncertainties, and other factors that could cause the Company’s actual results, performance, prospects, and opportunities to differ materially from those expressed in, or implied by, these forward-looking statements.

For More Information:

Media Relations
Daniel Carpini
xG Technology
daniel.carpini@xgtechnology.com
(941) 953-9035

Investor and Analyst Relations
James Woodyatt
xG Technology
james.woodyatt@xgtechnology.com
(954) 572-0395

The post xG Technology, Inc. Announces Closing of Public Underwritten Offering appeared first on xG Technology.

Technology Captured the Action at the 57th Masters Waterski and Wakeboard Tournament

Sarasota, Florida—July 21, 2016—xG Technology business unit Integrated Microwave Technologies (IMT), the leader in advanced digital microwave systems serving the broadcast, sports, entertainment and law enforcement markets, had its 58microLite HD Mini Kit, a highly portable, professional grade wireless camera transmission link, take to the water during a live stream by WebCast-TV.com at the 57^th Masters Waterski and Wakeboard Tournament. The tournament is an annual event known throughout the world as one of the most prestigious water sports competitions.

The 58microLite HD Mini Kit—a complete solution including transmitter, receiver, antennas and cables housed in a soft case—is capable of providing high-quality video at distances over one-mile line-of-sight. It will also be used at the U.S. Open of Water Skiing that will take place in Florida this fall.

George Schmitt, CEO and Board Chairman of xG Technology, said, “The success of IMT’s 58microLite HD Mini Kit at this tournament highlights our ability to deliver a product that meets the market’s need to capture professional-grade video over long ranges in a highly portable form factor. The microLite’s size and performance makes it ideal for live sports, newsgathering, reality-based programs, and any other type of live event coverage.”

“The 57^th Masters Waterski and Wakeboard Tournament was three days of using the equipment nonstop and it went perfectly,” said Tom Grey, CEO of WebCast-TV. “When it wasn’t being used in the boat, we used it for getting interviews and wandering around the site to get other shots. We were able to walk all around the boat and behind solid objects, and the microLite worked flawlessly. We had multiple people at the Masters ask us what we were using,” says Grey. “Everyone just thought it was an amazing product. There was a lot of interest in it and we plan to get another one soon.”

WebCast-TV was created in 2005 by Tom Grey, who came from a video photography and web design background, and is primarily involved in the water sports industry. The company specializes in live streaming video that allows customers to view content of their events online on any device around the world, in real-time. They needed a new professional-grade HD wireless video solution, since the WebCast-TV camera crew jumps from boat to shore quickly, capturing the skiing from every angle, as well as capturing interviews with the athletes before and after they compete. A compact and portable solution was a must. Mobility is very important for live video production and the water sports industry in particular.

“The best thing for us was that we attached the microLite transmitter on top of the camera and it was so compact and lightweight,” says Grey. “Before the microLite, we had an older system with separate parts: cables, transmitter and antennas. All of that had to be attached to the boat separately from the camera, taking up time we didn’t have. For us, having the portability of the microLite on the camera was a really big improvement from what we had before and saved us a lot of time.”

“We had used another system for many years but it was bulky and expensive to replace,” says Grey. “However, while looking for new equipment we found that most of them were either designed for larger professional cameras and too expensive, or non-professional and just unreliable. We wanted something small and lightweight that was designed for small- to medium-sized cameras. I came across the 58microLite Mini Kit and knew it was the right fit for us, and perfect for our application. When we tested it, we were blown away with how easy it was to set up. It did all the work for us and is much more affordable.”

About xG Technology, Inc.

Founded in 2002, xG Technology has created a broad portfolio of intellectual property that enables always-available, always-connected and always-secure voice, broadband data and video communications. The company’s technology portfolio includes solutions marketed under xG’s xMax brand as well as under the brands of its business unit Integrated Microwave Technologies (IMT).

xMax incorporates advanced optimizing technologies that include spectrum sharing, interference mitigation, multiple-input multiple-output (MIMO) and software defined radio (SDR). xMax offers key benefits for numerous industries worldwide, including military, emergency response and public safety, telemedicine, urban and rural wireless broadband, utilities, and critical infrastructure.

Cautionary Statement Regarding Forward Looking Statements

For More Information:

Media Relations
Daniel Carpini
xG Technology
daniel.carpini@xgtechnology.com
(941) 953-9035

Investor and Analyst Relations
James Woodyatt
xG Technology
james.woodyatt@xgtechnology.com
(954) 572-0395

The post xG Technology IMT Business Unit’s 58microLite HD Mini Kit System Makes a Splash With Webcast-TV appeared first on xG Technology.

DoD/Federal Industry Sales Veteran Will Help Drive Customer Acquisition for xMax Mission-Critical Broadband Data and IMT Real-Time Wireless Video Transmission Solutions

Sarasota, Florida—August 1, 2016— xG Technology, Inc. (“xG” or the “Company”) (Nasdaq: XGTI, XGTIW), a leader in providing critical wireless communications for use in challenging operating environments, today announced the appointment of John Procacci as vice president of sales for its xMax and Integrated Microwave Technologies (‘‘IMT’’) business units. In this position, Mr. Procacci will have responsibility for leading the sales organization at xG Technology, and will have both the entire IMT sales team as well as xG commercial sales team members as direct reports. He will also work in concert with cross-functional teams that include marketing, product development, operations and support to design and deliver superior communications solutions to clients.

George Schmitt, CEO and Board Chairman of xG Technology, said, “We are pleased to welcome John Procacci to the xG Technology team. His appointment will help further the traction we are gaining in the DoD/Federal sector, and his record of developing strong client relationships will be a great advantage as we expand our presence in that space and pursue additional avenues of growth.”

John Payne IV, president of IMT, said, “John has an exceptional record of successful sales and account development, and in building and inspiring teams. His expertise will be invaluable in helping accelerate the penetration of IMT’s market-leading solutions in key military, government and commercial markets.”

John Procacci said, “I’m very excited to be part of xG Technology and look forward to helping both the xG and IMT teams reach enhanced levels of success by identifying and closing new revenue opportunities. The need for robust, resilient and secure broadband and video communications platforms is rising across numerous vertical markets, and this is where the xMax and IMT product lines have demonstrated impressive competitive advantages.”

John Procacci brings over 25 years of successful sales and business development experience representing technical product manufacturers, with 12 years focused on engineered products targeting DoD and Federal program requirements. Most recently, he served as Business Development Director at Mercury Systems, a leading commercial defense electronics company, where he drove growth across business lines by selling comprehensive solutions across the sensor processing chain. Previously, he served as Business Development Manager at IMT for their MAG (Military, Aerospace & Government) Division. In this position he was responsible for new market penetration for digital video transmit/receive solutions, with a specific focus on DoD and government customers for Unmanned Aerial Vehicles (UAV), Intelligence, Surveillance, and Reconnaissance (ISR) and covert surveillance applications. Prior to that, Mr. Procacci served as Business Development Manager at Crane Aerospace and Electronics, where he spearheaded sales of microwave component and subsystem solutions to DoD prime contractors.

Mr. Procacci also holds memberships in the following professional associations: Association for Unmanned Vehicle Systems International (AUVSI); Association of the United States Army (AUSA); Armed Forces Communications and Electronics Association (AFCEA); and National Defense Industrial Association (NDIA).

About xG Technology, Inc.

Founded in 2002, xG Technology has created a broad portfolio of intellectual property that enables always-available, always-connected and always-secure voice, broadband data and video communications. The company’s technology portfolio includes solutions marketed under xG’s xMax brand as well as under the brands of its business unit Integrated Microwave Technologies (IMT).

xMax incorporates advanced optimizing technologies that include spectrum sharing, interference mitigation, multiple-input multiple-output (MIMO) and software defined radio (SDR). xMax offers key benefits for numerous industries worldwide, including military, emergency response and public safety, telemedicine, urban and rural wireless broadband, utilities, and critical infrastructure.

Cautionary Statement Regarding Forward Looking Statements

For More Information:

The post xG Technology Appoints John Procacci as Vice President of Sales for its xMax and IMT Business Units appeared first on xG Technology.

Sarasota, Florida—August 19, 2016 —xG Technology, Inc. (“xG” or the “Company”) (Nasdaq: XGTI, XGTIW), a leader in providing critical wireless communications for use in challenging operating environments, announced its second quarter and first half 2016 results. Management will hold a conference call for industry analysts on August 24, 2016 at 4:00 p.m. Eastern Time. The call is also being webcast (see details below).

Key Recent Accomplishments

During the second quarter:

Expanded the integration of the xMax and IMT business units in sales, marketing, product and technology development and manufacturing operations, which has broadened joint solution revenue opportunities and driven internal efficiencies.
The IMT business unit deployed the iSee™ RefCam™ Integrated Sports Camera/Transmitter at the Canadian Hockey League Memorial Cup Tournament.
The IMT business unit launched the Mini DirectVu COFDM handheld receiver for use in law enforcement, electronic news gathering and sporting event broadcasting applications.

Since the end of the second quarter:

The Company announced a teaming agreement with Radio IP and Abilis Solutions to test a secure wireless system for use by correctional agencies. The all-in-one solution will integrate xMax broadband network technology with the Radio IP secure VPN and CORIS® Mobile Offender Management System.
The Company closed a public underwritten offering of its units which resulted in the Company receiving approximately $4.44 million in net proceeds. The Company will use the proceeds for corporate purposes including working capital, product development, partial reduction of liabilities, marketing activities, expanding its internal sales organization and further developing sales channels and other capital expenditures.

George Schmitt, CEO and Chairman of the Board of xG Technology, said, “As we deepen the integration of the xMax and IMT business units, we are aggressively pursuing opportunities that can be uniquely served by the comprehensive mission-critical voice, broadband data and video solutions xG now offers. We have begun collaborating on a number of new business projects that we have recently identified, both domestic and international, which we expect to result in revenue-generating events in the near and medium term.”

Roger Branton, CFO of xG Technology, said, “We are pleased to note that xG realized record quarterly revenue in second quarter of 2016, and to announce that the Company recorded an additional $2.2 million gain on the bargain purchase in connection with the acquisition of IMT that closed in the first quarter. The gain was the result of receiving the final independent fair market valuation report on IMT’s net assets. The report indicated a total fair market value of IMT’s net assets of approximately $5.7 million on the date of acquisition, which resulted in a $2.7 million gain over the purchase price, $500K of which was recorded in the first quarter.”

Review of Results

Revenues for the three and six months ended June 30, 2016, were $1,655,000 and $2,584,000, respectively, representing an increase of $1,281,000 and $1,627,000, respectively, from $374,000 and $957,000 in the corresponding periods in 2015. The revenue of $1,655,000 resulted from $1,595,000 from sales of equipment and $60,000 from engineering services for the three months ended June 30, 2016 which can be attributed to the acquisition of IMT. The revenue of $2,584,000 resulted from $2,451,000 from sales of equipment and $133,000 from engineering services during the six months ended June 30, 2016. Of the $2,584,000 in revenue, $131,000 was previously recorded as deferred revenue.

For the three and six months ended June 30, 2016, the Company had a net loss of $4.6 million and $8.6 million, respectively, compared to a net loss of $4.0 million and $7.5 million for the three and six months ended June 30, 2015, or an increase of $0.6 million and $1.1 million.

The increase in net loss is due mainly to an increase in amortization and depreciation, general and administrative and research and development expenses.

Financial Results Conference Call Details

xG management will hold a conference call for industry analysts to discuss xG’s second quarter and first half 2016 results on August 24, 2016 at 4:00 p.m. Eastern Time. Call-in information can be requested by emailing xginfo@xgtechnology.com. The call will also be webcast at http://www.xgtechnology.com/about-xg-technology/investor-information/. For those who cannot listen to the live broadcast, the call be archived on xG’s website at http://www.xgtechnology.com/about-xg-technology/investor-information/

About xG Technology, Inc.

For More Information:

xG TECHNOLOGY, INC. AND SUBSIDIARY
CONDENSED CONSOLIDATED BALANCE SHEETS
(IN THOUSANDS EXCEPT PER SHARE DATA)

	June 30, 2016 (unaudited)			December 31, 2015
ASSETS
Current assets
Cash	$	154		$	368
Accounts receivable, net of allowance of $184 and $87 ($117 and $138 from related party, respectively)		1,148			641
Inventories, net		3,516			777
Prepaid expenses and other current assets		137			15
Total current assets		4,955			1,801
Inventories, net		2,078			2,078
Property and equipment, net		1,498			792
Intangible assets, net		10,522			11,903
Total assets	$	19,053		$	16,574
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities
Accounts payable	$	1,948		$	1,196
Accrued expenses		693			252
Accrued interest ($117 and $56 due to related party)		270			137
Due to related parties		392			324
Deferred revenue and customer deposits		182			149
Deferred rent		103			—
Convertible notes payable		335			781
Obligation under capital leases		54			54
Derivative liabilities		1,222			1,284
Total current liabilities		5,199			4,177
Long-term obligation under capital leases, net of current portion		81			106
Convertible note payable		2,000			2,000
Total liabilities		7,280			6,283
Series B convertible preferred stock – $0.00001 par value per share: 5,000,000 and 0 shares authorized at June 30, 2016 and December 31, 2015; 0 and 0 issued and outstanding as of June 30, 2016 and December 31, 2015		—			—
Total convertible preferred stock		—			—
Stockholders’ equity
Series D convertible preferred stock – $0.00001 par value per share: 5,000,000 shares authorized; 250,000 and 0 issued and outstanding as of June 30, 2016 and December 31, 2015, respectively		—			—
Common stock – $0.00001 par value, 100,000,000 shares authorized, 8,270,015 and 1,685,642 shares issued and 8,269,996 and 1,685,623 outstanding as of June 30, 2016 and December 31, 2015, respectively		—			—
Additional paid in capital		206,837			198,710
Treasury stock, at cost – 19 shares at June 30, 2016 and December 31, 2015, respectively		(22	)		(22	)
Series D Preferred Stock Issuable		2,000			—
Accumulated deficit		(197,042	)		(188,397	)
Total stockholders’ equity		11,773			10,291
Total liabilities and stockholders’ equity	$	19,053		$	16,574

xG TECHNOLOGY, INC. AND SUBSIDIARY
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(IN THOUSANDS EXCEPT NET LOSS PER SHARE DATA)

	For the Three Months Ended						For the Six Months Ended
	June 30,						June 30,
	2016			2015			2016			2015
Revenue	$	1,655		$	374		$	2,584		$	957
Cost of revenue and operating expenses
Cost of components and personnel		814			245			1,240			575
Inventory valuation adjustments		42			—			110			—
General and administrative expenses		2,377			1,947			4,413			3,666
Research and development expenses		1,542			1,112			3,202			2,661
Amortization and depreciation		1,512			958			2,867			1,918
Total cost of revenue and operating expenses		6,287			4,262			11,832			8,820
Loss from operations		(4,632	)		(3,888	)		(9,248	)		(7,863	)
Other income (expense)
Changes in fair value of derivative liabilities		(1,773	)		5			(1,260	)		490
Offering expenses		(158	)		—			(158	)		—
Gain on bargain purchase		2,237			—			2,749			—
Other expense		(58	)		(26	)		(57	)		(26	)
Interest expense, net		(198	)		(48	)		(671	)		(95	)
Total other income (expense)		50			(69	)		603			369
Net loss	$	(4,582	)	$	(3,957	)	$	(8,645	)	$	(7,494	)
Preferred stock dividends and deemed dividends		(1,438	)		(2,385	)		(1,808	)		(3,455	)
Net loss attributable to common shareholders	$	(6,020	)	$	(6,342	)	$	(10,453	)	$	(10,949	)
Basic and diluted net loss per share	$	(0.98	)	$	(16.78	)	$	(2.54	)	$	(34.76	)
Weighted average number of shares outstanding basic and diluted		6,135			378			4,112			315

The post xG Technology Reports Second Quarter and First Half 2016 Results and Conference Call appeared first on xG Technology.

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