A technology-focused company with exposure to Artificial Intelligence (AI) and 
Machine Learning (ML) is currently making moves…and moving markets.
Datametrex AI Ltd. (TSX-V: DM, OTC: DTMXF, Forum) is a Canadian-based cybersecurity company focusing on collecting and presenting structured and unstructured data using AI and ML.
Marshall Gunter is the Company’s, Chief Executive Officer. In this Stockhouse Editorial exclusive, he describes the Company’s AI solution as a “social discovery tool” that filters unstructured social media data and helps the Canadian government to identify bad actors. And the Company says the dangers are clear and present – more data, more BOTS, more cyborgs, and more disinformation than ever before – just a few of the reasons why the global cybersecurity market size is forecasted to grow to nearly USD$250 billion by 2023.
Mr. Gunter’s engineering background is rooted in big data analysis and machine learning at scale. Working with Sequoia Capital and Lightspeed Venture Partners, Marshall was responsible for bringing Varagesale to the mass market. Marshall took Varagesale from a one-room shop to a powerhouse engineering department of 60 plus people and played a leading role in their $35-million-dollar raise.
SH: To start, Marshall, can you update our investor audience and your Datametrex shareholders on any new company developments, especially in the wake of the COVID-19 pandemic?
Of course, a lot is going on at Datametrex, we are busy with many changes and several projects on the go:
- We have applied for an updated listing in the United States, listing on the OTCQB allows more people to invest in Datametrex
- We have expanded projects to include testing in their other holdings worldwide, including countries on several different continents. This solidifies our business model from a proven concept to a reliable tool. We expect the continuation and growth of this line of our business.
- We now have the ability to sell test kits almost anywhere in the world, with products carrying multiple approvals including, but not limited to FDA-EUA, CE, Health Canada, and many more.
- Movements in the business have also led to Board changes that reflect the stages we continue to move onto and helping us reach our vision—the addition of Hon. Peterson opens doors worldwide and with government expertise.
SH: The Company has made what looks like a seamless transition into the sale of COVID-19 testing kits. How were you able to make this dramatic and timely pivot into a very different kind of revenue generator for Datametrex?
Our presence in South Korea was the key. Locals contacted Datametrex in South Korea, who knew about our partnerships in Korea and about our access in Canada and the US. They wanted to help bring their technologies to the world. Since our mandate has always been the security and safety of individuals and businesses, we thought it was a good fit.
SH: Are you able to update investors on your sales pipeline, regarding the testing kits?
We have been working closely with multiple resellers around the world, including Europe, India, Asia, the Middle East and North America. Keep an eye on news coming out.As soon as we get purchase orders or new/renewing contracts, we disseminate the news.
SH: Would you like to address any knowledge gap around the kits, and how long you expect to see continued interest?
On April 16, Datametrex got approval to sell and import South Korean manufacturer iONEBIO’s testing kits. Nearly one month later, we partnered with three other South Korean vendors to sell their products in various countries around the world. Datametrex is attempting to be a world leader in South Korean test kit distribution. On May 15, the Company announced its first sale with a Canadian mining company. The first purchase order included 10,000 kits and 1 PCR system, and now we have a steady pipeline of deals. As there have been numerous studies estimating how long the current global situation will last with coherent market Insights estimated the COVID-19 detection kits market at US$3.3B in 2020 and is expected expand in the near future.
There are two main types of testing currently being used around the world today: 1) PCR based, and 2) Antibody tests.
The PCR Based Tests are considered the “gold standard” of diagnosis of COVID-19. These were the first test kits to be made and used and are thought to have the highest positive rate when the test is conducted from the lower respiratory system. PCR tests are mainly done on patients who are in the hospital because of how lengthy and costly these tests can be. There are other ways to be tested; using oral or nasal swabs. These two methods are less intrusive and take less time to conduct, making them the preferred way to do rapid screening. Datametrex has initially been focused on this category.
The Antibody Test Kits are commonly referenced as being sold from China with poor results. The American CDC has warned that these tests are approximately 50% accurate. The Australian Therapeutic Goods Administration reported that the tests would not be accurate unless the patient has been symptomatic for at least two weeks, and even then, will need further confirmation from a lab.
SH: Now, onto the big news (that has flown under the radar). Your recent announcement that you’ve formed a preferred vendor partnership with South Korean multinational giant LOTTE. How did you achieve this milestone partnership, and what are the core benefits of the deal?
Nexalogy utilizes artificial intelligence (AI) and machine learning technology to provide data analytics insights to businesses and government agencies. Nexalogy’s core technology, Nexaintelligence, is a powerful social discovery tool that analyzes millions of data points from social media platforms for our clients. This patented and scalable technology analyzes social media data to find new audiences, trends, risks and voters and removes spam for government agencies and businesses. LOTTE Corporation uses this AI technology as it fights the fake news, solidifies them as a transparent source of information and real-time feedback of their customer base. LOTTE Corporation is South Korea’s fifth-largest business conglomerate engaged in diverse industries such as candy manufacturing, beverages, hotels, fast food, retail, financial services, industrial chemicals, electronics, IT, construction, publishing, and entertainment.
SH: Can you walk us through the technology that allows Datametrex to detect intrusive BOTS and how your fake news filter works?
Datametrex is currently working on numerous government contracts and has completed several milestones for the Canadian Department of Defense’s Innovation for Defence Excellence and Security (IDEaS) program. The Company is also a vendor for the US federal government. The Company’s social media threat detection technology is also expected to be tested by several NATO partners.
Since launching NexaIntelligence, Datametrex has been focused on improving the platform. The Company has added bot and agent detection functions. The platform has also been outfitted with an algorithm that detects false narratives in social media discussions.
Datametrex has an AI business that showed strong growth before entering the COVID test arena. Nexalogy unlocks valuable insights from social media data. Through its proprietary semantic clustering algorithms, it provides insights and analysis that aren’t available through traditional business intelligence technology. This technology makes data more relevant and is the missing link in providing actionable social media intelligence to governments and organizations all over the world.
SH: And how do you locate and counter threats before it’s too late?
There are over three billion social media users across the globe. Social media is one of the most widely used marketing tools used to gain actionable insights from consumers on products and services. Many public and private entities use social media for marketing their products to consumers, build brand awareness, and gauge public opinion on products and trends, among other applications.
According to a Research and Markets report, the global social media analytics market is expected to reach $16.37 billion by 2023. The growth of the market is due to the increasing number of social media users and spending on analytics.
Social media analytics combines monitoring, measurement, and analysis tools to uncover user sentiment and identify key trends in the market. These tools allow users to decipher vast amounts of data from various social media platforms to determine customer sentiment about brands and trends, customer concerns, the efficacy of marketing campaigns and competitor intelligence.
However, social media can be abused by those wishing to spread misleading information that can affect perceptions of important issues, such as elections. Since launching the platform, Datametrex has made several improvements to the technology. The Company has added a bot and agency actor user interface to help identify fake accounts on social media that aim to propagate messages to influence public opinion. Datametrex has also developed an algorithm that tracks false narratives in social media discussions that focus on a region or a particular topic.
In January 2019, Datametrex began the process to become a pre-approved vendor to the US federal government. In 2018, the US government spent approximately $85 billion on technology, providing the Company with a substantial opportunity to expand its services in the US.
“Nexalogy’s expertise in the areas of social media monitoring and intelligence, fake news filtering and other machine learning applications are in great demand from government agencies and other organizations. Datametrex, through its Nexalogy division, is well-positioned to capitalize on these accretive opportunities in Canada, US and internationally,” said Datametrex Chairman Andrew Ryu.
SH: Can you tell us about NexaSecurity – your open-source intelligence threat assessment and protection platform – and how it’s a potential industry game-changer?
Social-media discovery and monitoring platform for those who need to extract actionable insights out of discussions to inform decision-making. This app has been around for over five years and has been made in conjunction with various government agencies such as the DRDC and OSINT as well as the software has been used by CAF, NATO, and the Five Eyes countries.
The technology utilizes various social media, RSS feeds, websites, and forums to go through hundreds of thousands of unstructured text documents and turn them into actionable reports using AI. Part of their discovery process will allow you to find trends that are either starting to form or have not developed but are beginning to gain traction on various websites, and this allows an action to be taken before things become a problem by changing the narrative, or getting to the root cause and stopping it there.
SH: From the investors perspective, can you explain the operational set-up of the Company and how Datametrex plans to position itself as a global industry leader?
We’re in the business of preventive technologies. Our core mandate is our world-class AI big data analytics. We are supplementing it with COVID test kits, which is also a preventive technology. With the recent pivot to COVID testing, Datametrex has found a path to create a massive potential upside.
Overall, I feel our Company’s test kit business provides some near-term upside, and the artificial intelligence business provides some long-term optionality for our investors of this stock.
SH: What sets Datametrex apart from other AI / ML companies in this space, and what makes your particular business model attractive to investors?
Two things set Datametrex apart in the AI powered media analytics space. First, we provide a discovery engine, not just a monitoring platform. Our technology can identify and bring to your attention threats and narratives that you would have otherwise missed or been unaware of. Second, we are battle tested. The NexaSecurity product has been developed in conjuncture with the Canadian and US defense communities. It has been deployed in the field for years by those communities. NexaSecurity is proven, military grade technology.
SH: And finally, Marshall, what can you tell our investor audience regarding the current valuation of your stock, the opportunity it presents to would-be shareholders, and why it’s a good value buy right now?
Datametrex stock is at a good value because the stock price doesn’t include the sales in the pipeline, which we anticipate closing in the coming months - we’re at 36M valuation, there is room to grow the value of the Company.
About Datametrex
Datametrex AI Limited is a technology-focused company with exposure to Artificial Intelligence and Machine Learning through its wholly owned subsidiary, Nexalogy (www.nexalogy.com). Datametrex’s mission is to provide tools that support companies in fulfilling their operational goals, including Health and Safety, with predictive and preventive technologies. By working with companies to set a new standard of protocols through Artificial Intelligence and health diagnostics, the Company provides progressive solutions to support the supply chain. Additional information on Datametrex is available at
www.datametrex.com.
