Patriot One Releases Fourth Quarter and Year-end Results
TORONTO, Oct. 21, 2021 (GLOBE NEWSWIRE) -- Patriot One Technologies Inc. (TSX: PAT) (OTCQX: PTOTF) (FRANKFURT: 0PL) (“Patriot One” or the “Company”), a technology-leading threat detection and patron screening solutions developer, is pleased to announce its fourth quarter and annual financial results for the year ended July 31, 2021. All information is in Canadian dollars unless otherwise indicated.
The following press release should be read in conjunction with the Company’s Annual Consolidated Financial Statements, prepared in accordance with International Financial Reporting Standards (“IFRS”) and our Management’s Discussion and Analysis for the years ended July 31, 2021 and 2020, which can be found under the Company’s profile on SEDAR at www.sedar.com.
“Fiscal 2021 was a year of focus and resetting our strategy to align to our key markets resulting in a notable increase in customers requesting product demonstrations in both controlled and live events,” stated Peter Evans, Chief Executive Officer of Patriot One. “These demonstrations are the most critical step in the sales cycle and we see ourselves at an inflection point as we start to see these trials pay off, as seen in our increasing sales backlog and the many customers in the late contracting stage. With this momentum, I am very optimistic and believe we are well-positioned to deliver a strong fiscal 2022.”
Company Highlights for the Fiscal Year ended July 31, 2021
The following is a summary of the key business highlights for the Company for the year ended July 31, 2021:
- Welcomed Peter Evans, as Chief Executive Officer and Director, and Karen Hersh, CPA, CA as Chief Financial Officer and Corporate Secretary;
- Commercially released the Multi-Sensor Gateway in Q1, which identifies on-body concealed weapons in uncluttered environments, followed by an enhanced release subsequent to the fiscal year end;
- Secured up to $4.5 million of co-investment funding from the Canadian Digital Technology Supercluster for the advanced development and deployment of the Health and Safety Detection modules of Patriot One’s Video Recognition Software, of which approximately $2.9 million has been claimed as of July 31, 2021;
- Revamped its sales and marketing strategy to be highly focused on campaigns aimed at our key target markets resulting in multiple successful customer deployments;
- Hired new professional and seasoned sales representatives who have begun closing long-term contracts and built a solid pipeline of business for both our threat detection and advanced video AI solutions;
- Closed multiple long-term Multi Sensor Gateway subscription arrangements during the year bringing our total Patriot One Platform backlog to over $1 million. Many prospective customers are in final negotiations or undergoing trials which are expected lead to additional commitments in the coming months;
- Completed work on existing Xtract contracts worth $1 million during the fiscal year and was awarded multiple government projects during and subsequent to the fiscal year, totaling $2.6 million including a 12-month contract worth $1 million to adapt its artificial intelligence (AI) innovation platform to provide misinformation and disinformation detection for Canada’s Department of National Defence; and
- Implemented restructuring and cost cutting efforts to improve operating efficiencies and to better align the Company with its strategic direction and business development plans.
Fiscal 2021 Annual Financial Results
- Revenue was $1.1 million for the year ended July 31, 2021 as compared to $2.1 million for the year ended July 31, 2020, primarily due to the timing of the sale of Patriot One Platforms to Innovative Solutions Canada during the year ended July 31, 2020.
- The backlog of sales commitments not yet recognized as revenue was $2.4 million as of July 31, 2021 as compared to $1.2 million as at July 31, 2020. Subsequent to year end, the Company was awarded an additional $1.3 million in additional sales commitments bringing its total backlog to $3.6 million.
- Loss from operations for the year ended July 31, 2021 was $12.8 million as compared to $23.4 million of the year ended July 31, 2020. The decrease in loss pertains mainly to cost cutting efforts to improve operating efficiencies.
- Loss and comprehensive loss for the year ended July 31, 2021 was $16.6 million as compared to $25.1 million of the year ended July 31, 2020.
- Basic and diluted loss per share was $0.11 for the year ended July 31, 2021 as compared to $0.17 for the year ended July 31, 2020.
Fiscal 2021 Fourth Quarter Financial Results
- Revenue was $0.3 million for the fourth quarter ended July 31, 2021 as compared to $0.4 million for the same period in 2020.
- Net loss from operations decreased from $5.6 million in the fourth quarter ended July 31, 2020 to $3.1 million in the fourth quarter ended July 31, 2021. The decrease in loss pertains mainly to cost cutting efforts to improve operating efficiencies.
- Wrote down the Company’s investment in Sotech Secure, LLC (“Sotech”) to $nil. Despite the write-down, management will continue to take every financially prudent measure to recover the Company’s investment in Sotech.