The series of positive announcements in recent weeks has led to the soaring of Patriot One Techno Com NPV (OTCMKTS:PTOTF) share price.
The surge in the share price has been associated with an FCC go-ahead granted to the company for the commercialization of their software to the US market.
Despite the pull back in the stock price over the first two quarters of 2017, the share price seems now to be rallying upwards as can be seen below:
Over the next course of this piece, we will take a look at the profit-making (upside) opportunities associated with purchase of the share for both short and long-term gains while also assessing the company’s strategy and the industry it is engaging in.
However, let us first briefly review the company and its operations for the sake of first time readers.
Patriot One Technologies: An Overview
Patriot One Technologies Inc, formerly Clear Mountain Resources Corp, was founded after a NATO-funded project at McMaster University. This was done in conjunction with Dr. Natalia Nikolova (a well-respected research scientist) who then researched on ways to commercialize a system to detect concealed weapons utilizing novel radar technologies and custom software solutions.
The company has since positioned itself in the defense and security industry as a major player with the invention of the breakthrough technology: the PATSCANTM CMR technology. It prides itself as being the first company in the world to come up with such a groundbreaking invention with the vision of ensuring adoption of its product by the defense industry worldwide.
The PATSCANTM CMR System
The system is the first-of-its-kind next-generation defense industry system. It uses Cognitive Microarray Radar to detect weapons on active shooters therefore combating active shootings before they occur. Moreover, its “cognitive” ability to learn and become better at detecting weapons as a result of the use of machine learning algorithms has made it one to behold.
PTOTF has recently received licensing by the FCC to commercially roll-out its PATSCAN software. With the firm targeting institutions such as schools, government buildings and businesses in the roll-out process, approval by the FCC goes a long way in ensuring their revenue streams are solidified in the long term.
Governor Tom Ridge, first U.S. Secretary of Homeland Security and a member of the Patriot One Advisory Board said:
“This is an important milestone for the Patriot One team for which they should be proud. I very much look forward to seeing the rollout of this game-changing technology across the United States and to supporting their efforts to improve public safety.”
This licensing is in addition to the license they obtained in Canada which has also opened the new market to them. The company’s Chief Technology officer, Dinesh Kandanchatha, stated during the receipt of the license that:
“This is a momentous occasion for us. We now hold both FCC and Industry Canada (IC) certification allowing us to move into commercial roll-out across North America, with other countries soon to follow. The next stage of this exciting journey now begins with select deployments with key early adopters. Our system, which relies on machine learning algorithms, has graduated from the lab and is about to enter the arena of commercial distribution.”
It hasn’t taken long for early adopters to get onboard with the Bal Harbour JCC being among the first firms to adopt this new technology. This came in the wake of a bomb scare in one of their compounds, a factor which drove them to seeking more ergonomic measures of detecting active shooters and terrorists prior to deployment.
PTOFT is currently very hopeful of growth as it establishes itself in an over $706 billion industry. The company expects to use its first mover advantage to cement its footing in the industry and become a solution provider to institutions both within the US and globally.
The cost of dreaming
Since inception, PTOTF has been investing heavily in software development with this being the platform on which it seeks to provide its solution. The company has sought over time to establish itself as the best solution provider in its industry.
In establishing themselves, PTOFT has had to dig deep into its pockets to create a trustworthy brand and market presence. The company has been using its equity to finance both marketing and research costs, both which have been growing over the period of its existence. For the three quarters until April 2017, the company used a total of $208,667 in marketing and related activities while research consumed $753,304 over the same period.
Losses accrued during the same period are attributable to the lack of revenues to the company;given the lack of FCC approval before the current period. These losses were further exacerbated by the listing price which stood at $1,808,991 over the 9-month period till April 2017.
Despite the above, the ability of the company to generate revenues in the near and distant future, courtesy of the FCC approval, comes as a welcome relief to the company that has been making losses since inception. The company will be banking on their intense marketing campaign they have put up to pay off by aiding the conversion of clients in the defense sector. Given their aggressive marketing strategy, the entity is expected secure a customer base and therefore generate revenues and hence turning profits.
Over the short term, the company seeks to first grow within the United States and Canada while ensuring its reach is established globally in the long run. Their growth potential reaches far and wide given the high demand akin to the defense industry
Share Purchase Warrants
PTOFT has recently listed 3,322,375 common share purchase warrants to be exercised on July 13, 2020 at $1.25. This will serve the purpose of enticing investors into investing in the company while presenting the outlook of a rise in the share price of the company in future. Over the term, this may also serve as a means of the company having a new-issue offering in the future.
Given that the PTOTF expects to grow globally, the amount above will ensure that they have ample funds to ensure their long-term vision is financed to fruition. The rewards associated with this industry coupled with the ever-growing demand in better security and defense are factors which will drive the company, over the short and long term, into great prosperity.
PTOTF is a story of the great strides made in the security and defense industry and the accomplishments of its players so far. It represents the next-generation defense system and is therefore an option investor should consider in a bid to invest in both the future of the industry as well as in safety. After what happened at the Mandalay Bay in Las Vegas, safety and protection is certainly needed in this day and age.
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Image courtesy of Chris Morrison via Flickr
Disclosure: We have no position in PTOTF and have not been compensated for this article.