This small-cap firm's threat detection products have evolved from a single technology to a multi-sensor threat detection platform.
With mass shootings becoming all too commonplace, Patriot One Technologies Inc. (PAT:TSX; PTOTF:OTCQX) has been working to develop a threat detection platform that is both unobtrusive and effective. The PATSCAN solution has evolved into a multi-sensor platform to detect and defend against active threats before they occur.
"We think that this is the way to be the gold standard with early warning threat detection that our clients around the world are looking for," Patriot One CEO Martin Cronin told Streetwise Reports. "It is not possible for one technology alone to do all things for all people. So we have been diligently seeking out the best innovations, the best sensor technologies, that can come together onto a common platform."
Canaccord Genuity Capital Markets has a CA$3.25 target price and Speculative Buy rating on Patriot One. The stock is currently trading at around CA$1.45. "We continue to view the transition from the concept stage to commercialization as presenting a potentially positive catalyst for the stock," analyst Doug Taylor wrote on October 30.
In September, Patriot One beefed up its artificial intelligence (AI) capabilities by acquiring XTRACT Technologies Inc., bringing additional expertise in AI and machine learning to the firm. Patriot One noted, "XTRACT has previously developed and successfully implemented solutions for military, government, industrial, environmental and transportation clients. Equally importantly, XTRACT's engineers and data scientists possess security clearance to work on government defense projects."
Patriot One was drawn to XTRACT because it "already had highly relevant experience in sensor and data fusion; they're engaged in projects of that nature with the Canadian military, so they know exactly what it is we have been looking to achieve," Cronin stated.
Patriot One's platform now includes four kinds of sensors: microwave radar, targeted magnetic signature, chemical sensing and video analytics.
"Our original radar sensor has now been enhanced with targeted magnetic technology through a licensing deal with a San Diego company," Cronin explained. "We also acquired a video object recognition AI company out of New Brunswick, and we have a joint venture entity in Dallas, a spinoff from the University of Texas on explosive and other hazardous chemical detection."
Coupling PATSCAN CMR sensors, which use microwave radar, and the PATSCAN TMS sensors, which use target magnetic technology, can enhance the detection performance for concealed weapons on a person or in a bag, while maintaining individual privacy and civil liberties. Add in PATSCAN VRS software, which uses existing video surveillance infrastructure, to identify dangerous objects in plain view, such as guns, rifles and knives. Shooters have been brandishing their weapons in plain view in some recent shooting in the U.S., and this technology can be used to see these visible threats, if needed. Lastly, the PATSCAN STS sensors were added to the platform to detect airborne trace explosives, chemical warfare agents and volatile organics at parts per billion sensitivity.
After several years of pilots and fine tuning, the multi-sensor PATSCAN system is ready for deployment. "We have begun a strategic rollout of the PATSCAN Platform with select clients in real life environments," Cronin explained. "Each PATSCAN Platform and its sensor components are customized to meet each client's specific property's needs. And each deployment is being carefully orchestrated to further iron out any issues, which will then allow our reseller partners to scale up quickly with their clients."
In fact, the PATSCAN Platform is being installed with the Cincinnati Reds by Ginter Electrical Contractors. "This is the type of covert threat detection solution our team and clients have been looking for to ensure the safety of their entire organizations, from staff to vendors to clients," said T.J. Dooley, Ginter Electrical's system integration manager. "It's exciting to begin deploying the solution with the Reds organization—one of the most recognized and celebrated sport franchises in the U.S."
Equally important, Patriot One has partnered with several industry giants, including Cisco and Johnson Controls. At the 2019 International Association of Chiefs of Police (IACP) conference in Chicago in October, Patriot One showcased its new concept mobile VRS solution for police officer safety. The VRS-M can be placed on vehicle's camera network, and offers alerts around the vehicle on weapons detection, license plate recognition and lane deviation. The concept solution's development has been part of the company's Cisco Solutions Partner program.
In addition, Patriot One has an integration partnership with Johnson Controls to deploy security systems for key clients including sports franchises and a global transportation client.
As already referenced, privacy and civil liberties are major concerns with today's public. Patriot One has worked to address this with its platform, which does not capture or store personal data; it looks for specific threat objects first and then, and only then, will the platform notify the security personnel on site.
"Our technology is an early warning system," Cronin explained. "No one's ever had that before. It's always been after that first gunshot that people realize that there's a gun in the building. We're changing that whole dynamic. More importantly, we are not going to stop innovating to find new solutions to stay ahead of threat detection."
As an AI-based detection company, Patriot One continues to advance its algorithms so the platform is constantly learning and developing, helping to rapidly and continuously evolve its PATSCAN software. "Hardware will also evolve," shared Cronin. "We'll continue to scan the marketplace for new technologies that can be either overtly or covertly deployed for threat detection. As an R&D driven company we will continue to innovate with a focus to stay ahead of the ever changing threat environment and our competition."
Patriot One has 149 million shares outstanding, 193 million fully diluted. The company has CA$43 million working capital, "enough to sustain us for three years," Cronin asserted.