The article I wrotePatriot One Technologies- A Money Making Machine and Technology Ripe With Strife Back in April, 2019, issues related to Patriot Ones development of its technology started surfacing on Stockhouse (the retail investor message board site) . Eventually, questions were sent to Patriot Ones V.P. of Marketing and Communications Paul Borcelli- these included questions about its McMaster patent and questions surrounding the category and use of the device, PATSCAN CMR their lead product. A week later and no response from Paul Borcelli, more questions were sent to the company’s Investor Relations- John Martin. Specifically, questions related to the FCC certification and the classification of the device, as well as direct questions about use of the device today in public places. To be fair at the time, John Martin was on holidays. Since that time, due to widespread shareholder demand, and due to the serious nature of the discrepancies in public documents raised by posters to the Stockhouse site, the company made an attempt to answer the questions publically in an article written by Tailwinds Research Group, Daniel Carlson entitled “Q&A with Patriot One’s CEO Martin Cronin”, dated May 21 ,2019. While trying to answer to the discrepancies directly, that article seemed to create more questions than answers.
Recall in October, 2017, Patriot One Technologies [PAT] news of its” award-winning PATSCAN CMR™ (Cognitive Microwave Radar) -concealed weapons detection system was well received by investors [1]. PAT had “achieved Federal Communications Commission (FCC) Declaration of Conformity certification” a copy of which can be found here: https://fccid.io/2ALZTCMR The FCC link can also be found in the news release. That news release, specifically communicated to investors that the FCC certification “paves the way” to the rollout of its non-invasive full body scanning. However, the actual FCC certification alludes to a through wall imaging system and this was confirmed by Martin Cronin, the CEO of Patriot One within the Tailwinds Research article May 21, 2019[2]. So, the marketing of PATSCAN CMR suggests- non- invasive full body scanning but the actual FCC certificate and the CEO of the company confirmed recently it’s actually a through wall scanner. So, anyone who reads the news release, in the context of the FCC document (and the CEO’s own words) are left wondering if the company has any certification that relates to that which they plan to commercially roll out over the coming months of 2019, that of a full body scanner, despite this being the third (delayed) timeline.
Moreover, the timing of that 2017 news release could not have been better; ten days later, the company arranged financing with Canaccord Genuity Corp. That bought deal closed shortly after the FCC announcement, to the tune of “$11.5M in gross proceeds to the company”
[3]. Four months later a similar bought deal raised over $25 MM for the company. Then last fall another $46MM was raised but the company earmarked for “funding strategic initiatives, accelerate the deployment of technology and for general working capital purposes.” In total over $80MM was raised after the FCC announcement.
Remember Martin Cronin admitted in the Tailwinds article that PATSCAN CMR is a through wall imager. This after it was suggested on Stockhouse that the “PATSCAN FCC [certification] has nothing to do with business of finding weapons on people."
[4] Why does it take a poster on an anonymous stock messaging site to get the CEO of Patriot One to admit they have a through wall imager not a full body scanner
Patriot One produced a demonstration of the technology back in 2017.
[5] In the video, Dinesh Kanddanchatha (a PAT founder who has since left the company) points out that the technology is concealed behind the wall yet never actually shows the actual PAT equipment namely the signal generator and two antennas required to send and receive the signals. Why use "cartoon" type video to demonstrate the technology? As show, high school students could replicate that demo in as a science fair project.
Take a look at the PAT company website page for PATSCAN CMR.
[6] Watch what’s currently posted for 2019, it’s so called “Tech Demo”. The first part of the video shows what looks like the signal generator and the two antennas then flips back to the 2017 demo by Dinesh almost eighteen months prior? Why would that be? Why can't they show the actual unit as it was installed? Flipping back to the old demo does not prove that they are providing a proper demonstration of the use of the signal generator and antennas scanning people along with the FCC label. If true, perhaps those restrictions, required by the FCC certification, prevent them from doing what they suggest they can do in the 2017 press release.
Look closely at the label the FCC requires for the PATSCAN CMR
.[7] It looks like the FCC is requiring this label be present to ensure only police and fire emergency personal use the device in the way it was expected- that’s certainly not as a non invasive full body scanner. As such one could argue any video released by the company which shows non police or non fire emergency personal operating the PATSCAN CMR – those videos might be just a slick demo only (not the actual full body scanner) showing what it might look like if the FCC conditions were met.
Did the FCC issues cause the delay in the “roll out of PATSCAN CMR? Recall that 2017 company news release. It discusses commercial roll out- “has graduated from the lab and is about to enter the arena of commercial distribution.” To do that you would have to have a product ready to (or about too) be able to distribute (almost a year and a half ago). Then in December 2018 the wording on the subject changed again, where “about to enter the arena of commercial distribution” changed to “paid trials aim to ultimately transition into commercial deployment, effectively launching product rollout”
[8] So, over the course of 15 months, the company regressed from “about to enter the arena of commercial distribution” to continue with ongoing trials “to ultimately transition to commercial deployment”. But that’s not what was implied back in October 2017 when they started raising millions of dollars and the company gave every indication that commercial distribution was just around the corner.
Based on research of the posts on Stockhouse, the FCC issues combined with the frenzy the company created to raise well over $80 MM dollars and the eighteen month wait from promised distribution of a product that is clearly not ready to be produced let alone distributed based on the CEO’s admission that they have a wall imager leaves a lot more questions unanswered. Not least of which is the concurrent departure of the Vice President of Engineering and Professional Services, Cris Sinnot, along with Simran Kamboj the CMR Project Manager and Srinivasan Arumugam the CMR Development Specialist. Why did they leave and what’s happening with PATSCAN CMR since they left?
While there is an acknowledgement of the “through wall imaging”, there is some confusion about the PATSCAN CMR version. Martin Cronin, says “ (Note: I reference PATSCAN CMR V1.0 to distinguish that this is the first version, and like most technology companies worth their salt, we expect development of the PATSCAN CMR solution to continue beyond this version 1.0.)” But two years ago the FCC documents included the label the company sent in to the FCC filing dated 2017-09-28; the label for the product clearly identifies version 5 specifically Model CMR -V5... see:
https://fccid.io/2ALZTCMR/Label/ID-Label-and-Location-3551584 How is it possible that the CEO has now distinguished that this is the first version as he said in the article [V1.0] when the FCC label the company sent in refers clearly to V5?
Moreover, most investors have been waiting eighteen months for the roll out of PATSCAN CMR but rather than have some explanation for the continued delay, the article refers to the roll out of PATSCAN VRS which makes no sense to those waiting eighteen months for PATSCAN CMR. Furthermore, Martin Cronin claims that “The RF exposure of the PATSCAN CMR V1.0 is far less than the cell phone in your pocket. There are no health risks with this technology, as confirmed by FCC approval.” That’s odd because “the Commission does not regulate exposure to emissions from these devices.” [9] One of the questions that was sent to the company,
“At this point today, can you point PATSCAN CMR (whatever version) in public using the FCC license to radiate people in a public place. Yes or no?” That question and those alluded to above has yet to be answered. While Stockhouse defines itself as the “authoritative source of natural resource and small cap financial information,”, anonymous source material from its investor message boards needs to be viewed with a certain amount of skepticism unless the material can actually be researched down to its primary source. As such, one simply has to draw their own conclusions about the information presented above.
[1] Patriot One Receives FCC Approval for PATSCAN CMR Paving Way for Commercial Roll-Out - Patriot One Technologies Inc. [2]
https://tailwindsresearch.com/2019/05/qa-with-patriot-ones-ceo-martin-cronin/ [3]
Patriot One Technologies Inc. Announces Closing of $11.5 Million Bought Deal Offering - Patriot One Technologies Inc. [4]
https://stockhouse.com/companies/bullboard/v.pat/patriot-one-technologies-inc?postid=29680862#6Ub8LgaxHxKStuTK.99 [5] www.youtube.com/watch?v=yw8BAWxGW2M [6] PATSCAN™ CMR - Patriot One Technologies Inc.