TORONTO, Oct. 14, 2020 (GLOBE NEWSWIRE) -- Patriot One Technologies Inc. (TSX: PAT) (OTCQX: PTOTF) (FRANKFURT: 0PL) (“Patriot One” or the “Company”), developer of the PATSCAN™ Multi-Sensor Threat Detection Platform, is pleased to announce its fourth quarter and annual financial results for the year ended July 31, 2020. 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, 2020 and July 31, 2019, which can be found on SEDAR at www.sedar.com and on the Company’s website at www.patriot1tech.com.
“The key focus this year has been the de-risking the Company's technology for full commercial release,” shared Martin Cronin, Patriot One’s Chief Executive Officer. “Like many corporations around the world, it has been challenging for Patriot One to service our customers since the onset of the COVID-19 global pandemic which began in March 2020. Instead, the Company has taken this opportunity to use its existing capabilities to provide solutions to assist other businesses safely re-open. The Company has identified opportunities to service public and private sectors with technology solutions to mitigate the risks of this pandemic, and other possible threats to business continuity and public health. In addition, we began transitioning to an experienced C-Suite with skills in growing startups, while also expanding our sales and operations teams to scale quickly as we move beyond trial deployments to full scale operations.”
“During the fourth quarter, the Company launched its first commercial release of its video-based sensor technology being the PATSCAN VRS-W, VRS-HS and VRS-T solutions, which dually serve end-user needs of weapons-related and public health threat detection,” added Dietmar Wennemer, President and Chief Operating Officer. “We followed this with the release of our first Multi Sensor Gateway system, being the MSG 1.0 Fastlane solution that is currently being installed in multiple locations. This gateway completes our Security Platform and we will continue to build out and improve our technology portfolio to address our customers’ needs.”
Company Highlights for the Fiscal Year ended July 31, 2020
The following is a summary of the key business highlights for the Company for the year ended July 31, 2020:
- In September 2019, we acquired artificial intelligence company Xtract Technologies Inc. (“Xtract”), including a highly talented team of AI experts, as part of an ongoing strategic initiative to bring together leading-edge technologies and services to enhance our PATSCAN platform.
- In the third quarter of 2020, the Company recorded its first revenue related to the deployment of the PATSCAN Platform through the Innovation Solutions Canada (“ISC”), formerly known as the Build in Canada Innovation Program (“BCIP”).
- In May 2020, the Company announced that it was selected by Canada’s Digital Technology Supercluster for participation in a funding program for up to $4.5 million in co-investment capital. This important investment will advance the development and deployment of the Company’s PATSCAN health and safety modules to detect dangers before they become a threat to our communities.
- In the fourth quarter of 2020, the Company launched its first commercial release of its video-based sensor technology solutions being the PATSCAN VRS-W, VRS-HS and VRS-T solutions, which dually serve end-user needs of weapons-related threat detection and the threat to public health and businesses posed by the COVID-19 pandemic.
- In the fourth quarter of 2020, the Company entered into a membership interest purchase agreement with NanoBio to sell its 49% interest in Sotech Secure, LLC for USD $3,000,000 with an estimated closing date of October 31, 2020. Management expects that the proposed transaction will close as planned; however, there is no guarantee that transaction will proceed as expected or at all.
- Subsequent to the year end, the Company launched a second commercial release of its first covert sensor technology being the PATSCAN MSG 1.0, which identifies on-body concealed weapons utilizing its unique passive sensor array.
Fiscal 2020 Annual Financial Results
- Revenue was $2.1 million for the year ended July 31, 2020 as compared to $nil for the year ended July 31, 2019 as the Company began the commercialization of its products.
- Loss from operations for the year ended July 31, 2020 was $23.4 million as compared to $17.6 million of the year ended July 31, 2019. The increase in loss pertains mainly to increased expenditures being made on a wider portfolio of solutions under commercial development, the non-recurring costs associated with acquiring Xtract, and the associated personnel resources to support the commercialization efforts of the technology portfolio.
- Loss and comprehensive loss for the year ended July 31, 2020 was $25.1 million as compared to $17.4 million of the year ended July 31, 2019.
- Basic and diluted loss per share was $0.17 for the year ended July 31, 2020 as compared to $0.13 for the year ended July 31, 2019.
Fiscal 2020 Fourth Quarter Financial Results
- Revenue was $0.4 million for the fourth quarter ended July 31, 2020 as compared to $nil for the same period in 2019.
- The Company had $0.4 million of deferred revenue and $1.2 million of contracted revenue not yet recognized as revenue as of July 31, 2020 of which we expect to recognize 100% as revenue over the next twelve months.
- Net loss increased from $5.0 million in the fourth quarter ended July 31, 2019 to $6.4 million in the fourth quarter ended July 31, 2020. The increase in loss pertains mainly to increased personnel costs associated with the ramp up of operations and sales efforts.
About Patriot One Technologies
Patriot One’s mission is to deliver innovative threat detection and counter-terrorism solutions for safer communities. Our PATSCAN™ Multi-Sensor Covert Threat Detection Platform provides a network of advanced sensor technologies with powerful next generation AI/machine learning software. The network can be covertly deployed from far perimeter to interiors across multiple weapons-restricted facilities. The PATSCAN™ platform identifies and reports threats wherever required; car park, building approach, employee and public entryways and inside the facilities. Each solution in the platform identifies weapons, related threats or disturbances, or potential health and safety threats for immediate security response. Our motto Deter, Detect and Defend is based on the belief that widespread use of the PATSCAN™ platform will act as an effective deterrent to diminish the epidemic of active threats around the globe. For more information, visit: www.patriot1tech.com or follow us on Twitter and Facebook.
For further information, please contact:
Patriot One Technologies Inquiries
info@patriot1tech.com
www.patriot1tech.com
Investor Relations
John Martin, Patriot One Technologies
+1 (888) 728-1332
johnm@patriot1tech.com
Media Contact
Scott Ledingham, Patriot One Technologies
+1-613-806-7135
scott@prmedianow.com
CAUTIONARY DISCLAIMER STATEMENT:
No securities exchange has reviewed nor accepts responsibility for the adequacy or accuracy of the content of this news release. This news release contains forward-looking statements relating to system sales, product development, licensing, commercialization and regulatory compliance issues and other statements that are not historical facts. Forward-looking statements are often identified by terms such as "will", "may", "should", "anticipate", "expects", "believes", and similar expressions. All statements other than statements of historical fact, included in this release are forward-looking statements that involve risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from the Company's expectations include failure to receive required regulatory approvals, counterparty default and other risks detailed from time to time in the filings made by the Company with securities regulations. The reader is cautioned that assumptions used in the preparation of any forward-looking information may prove to be incorrect. Events or circumstances may cause actual results to differ materially from those predicted, as a result of numerous known and unknown risks, uncertainties, and other factors, many of which are beyond the control of the Company. The reader is cautioned not to place undue reliance on any forward-looking information. Such information, although considered reasonable by management at the time of preparation, may prove to be incorrect and actual results may differ materially from those anticipated. Forward-looking statements contained in this news release are expressly qualified by this cautionary statement. The forward-looking statements contained in this news release are made as of the date of this news release and the Company will update or revise publicly any of the included forward-looking statements only as expressly required by applicable law.
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