There had been a steep decline in the share price of Patriot One Technologies (OTCMKTS:PTOTF) over the past few months. This decline was, however, followed quickly by a rise in their price as shown in the chart below:
However, the month of March saw their share price fall again from highs of $2.0 to lows of $1.25, with the company having hit these lows last in mid-January 2018. With shareholders worried about the performance of their stock, the management at PTOTF has been doing everything to ensure that they outperform their previous highs; and their newest announcement has ensured that they achieve this milestone successfully.
Over a period of 2 days, following an announcement by their CEO, their share price has risen from $1.25 to $1.35, an 8% rise in the share price shown in the chart below:
Such a rise in the valuation of a company usually alludes to the shareholders’ belief in the future value of the company, an expectation that their future performance will be greater than their current performance. An 8% rise over a 2-day period is quite a milestone for them and postulates a higher rise to come in the near future.
Over the course of this piece, therefore, we will evaluate the driver of this rise and how it will impact the company’s future.
History of PTOTF
Before going into the intricacies of PTOTF’s performance, let us first have a brief overview of the company’s past.
Patriot One Technologies was formed as a result of a program at McMaster University. Their vision since then had been to ensure the security of individuals across the globe. As such, the company developed the PATSCAN™ system.
This award-winning system is a next-generation state-of-the-art software platform which can detect individuals with concealed weapons without the need for them to actually being searched by security officers. The system utilizes the power of machine learning algorithms to combat terror across the globe. Through this, the company presented to the world a cost-effective platform which would ensure that the security personnel at public places – given that the system can be deployed and work effectively in public places – are deployed specifically to combat active shooters and individuals carrying concealed weapons such as knives and the like.
The company holds to their beliefs: Deter, Detect and Defend, believing that this technology will ensure that they lead to the diminishing of the active shooter epidemic that has rocked the world over the recent past. Their driving force is that this epidemic that has led to the loss of lives across the globe is eventually solved once and for all.
We have reviewed the company before on this platform with the last piece being available here.
Over the recent past, the company has been working at ensuring that they can boost their performance in the coming future. Currently, their primary goal is in the implementation of this system across the globe in a bid to ensure the safety and security of people is guaranteed. In doing so, they will be working towards meeting their operational objectives of growing their revenue and asset base as well as cash flow sequence.
As such, they began the year by having a shake-up in their management positions so as to streamline their operations. At the top, their current CEO would keep his role while also taking up the responsibilities as the company’s President as their current President and Chief Technology Officer Mr. Dinesh Kandanchatha transitions from his position. In addition, their engineering team – which the company is currently working hard to expand – would be split into four divisions: product delivery division under Franco Cerantola, cloud and software applications under Crispian Sinnott, manufacturing and strategic sourcing under Robert Lex and finally the radar and algorithms division under Dr. Paul Rice.
Through this, the company believes that their future will be stronger as their management will be stronger. Furthermore, with the strong drive and experience that their new team has, it will not be long before their vision is fully implemented.
Once this was achieved, it was not long before they took up the security issue with Congress.
The company has reached the fourth stage of testing of their system in public areas with their current progress being presented to the US Congress. The move has brought with it a lot of hope for the company as it is expected that once the US Congress accepts their system, its implementation across the country will be the next big move, all to the benefit of their shareholders.
With the company already having a reseller team ready to implement the system in the Canadian space as well as the US, their venture into the US Congress comes at a crucial time, especially in the wake of mass shootings in the country over the recent past.
PTOTF is banking on the acceptance of their system by sovereigns across the globe and with the developments being as are, the future seems quite good for them. A lot is expected from the going forward.
Despite the company making no revenues over the recent past, their net loss position declines by 50% from $2.7 million to $1.3 million, a major plus for them especially now that they have been hiring quite a lot. This was caused by a decline in their selling, general and administrative expenses from $2.3 million to just over $900,000, a near $1.4 million decline. Furthermore, their working capital position also increased to about $12 million, enough to finance their future expenditures.
All in all, all moves that PTOTF has been engaging in have been critical in ensuring that they get to their current position. With their performance, as well as operations being crystallized at present and their business development, being as strong as it currently is, the company will soon meet their goals and their shareholders will also be smiling all the way to the bank.
PTOTF is actively venturing into a sector which will ensure they reap rewards very soon. With the company’s software solution coming against a backdrop of dangerous events which have culminated in active shooters killing innocent people, the software will come as a relief to citizens across the globe. We remain positive about the future of Patriot One Technologies.
Disclosure: We have no position in PTOTF and have not been compensated for this article.