Xtract One Technologies Inc (XTRAF)

[JohnCM]

Business Model
Revenues are mainly generated through the sale of:
The hardware (PATSCAN CMRTM)
Monthly subscription for access to updated software and weapon database

Price and Margins
Retail price/unit PATSCAN CMRTM: $10 000.
Cost of Goods Sold: $3 000. ( This cost will decrease even more as production volumes increase.)
Monthly subscription/unit: $50 ($600/annually)

Sales
Already after three months (March 2017), the company had received orders equivalent to 90 percent of the sales target for 2017. Until the approval in Canada (6th September 2017) and the United States (October 2, 2017), Patriot One Technologies was not allowed to commercialize its products.

Technology originally developed for NATO by a research team, lead by Dr. Natalia Nikolova, at McMaster University, Canada. Technology was developed with a $2.5M grant from NATO and the NSERC ( National Science and Engineering Research Council of Canada ). McMaster University has the rights and has applied for the following patent
Application #20150379356 A1

Patriot One holds licensing rights worldwide

Bullrun Capital Inc held an option to obtain worldwide exclusive license from McMaster University. Security One obtained this option for $60,000 and will pay 2% royalty on net sales.

Patriot One will pay to McMaster University a 3.5% royalty on net sales, annual royalty payments of $7,500 year four and beyond and $2M ( cash and company stock ).

Tom Ridge https://www.youtube.com/embed/FEvs2u18lxk
In December 2016, the company entered a strategic partnership with Ridge Global LLC, a consulting firm run by Governor Tom Ridge, the first U.S. Secretary of Homeland Security. The agreement with Ridge Global provides for the payment of a monthly retainer, as well as performance-based bonuses and success fees payable on revenue and market capitalization-based milestones. Governor Ridge was also given 200,000 incentive stock options at an exercise price of $1.44, exercisable for a term of four years and vesting in 25% tranches every three months beginning on March 14, 2017.

03/23/2017 "Patrioy One Announces Evaluation and Purchase Agreement with Iconic Las Vegas Property. Goes on to say "agreement for a trial" but no further mention of "purchase agreement".

Cash
Patriot One Technologies has recently received more than $10 million through issue. The company already generates revenue through sales and has already sold 300 units. With a margin of 70 percent this has generated $ 2.1 million. The company has already received orders for 2018.

10/02/2017 "Patriot One receives FCC approval for PATSCAN CMR."
Declaration of Conformity Certification
https://fccid.io/2ALZTCMR
Also holds Industry Canada(IC) certification

Patents
February 2017 - Patent Pending
“We have filed patents in multiple jurisdictions and we will vigorously defend them. Nevertheless, there are also significant technical barriers to a competitor emerging in any short time frame. There are many years of highly complex, world class development behind our solutions.”

“With the patents they have in place, Patriot One has a lock on the 500 megahertz to 4.8 gigahertz spectrum for detection. These are the wavelengths deemed, by third parties, to be the most effective in covert weapons detection systems.”

Test sites
Shul of Bal Harbor Jewish Comm Cntr - Miami
Village Lounge Noghtclub - Orlando
The Westgate Hotel and Casino - Las Vesgas

Fund raises
$2.4M November 2016
$2.4M April 2017
$11.5M October 2017 ( $1.20 per unit )

Outstanding shares
51,000,000 Nov 2016
54,248,887 Apr 2017
83,515,466 Nov 30, 2017

Side Notes
The company says it is currently burning $125,000 per month
Starting range of 6 feet.
The company is developing the PATSCAN CMR to make it handheld.

Customers and Agreements

Here is a list of agreements that Patriot One Technologies has signed in a very short time period, which strengthens the company’s and product system’s attractiveness in the market.

13 mars 2017 — Patriot One partners with prominent Jewish Community Center to deploy concealed weapons detection system.

20 mars 2017 — Entry into its first overseas distributor agreement with Kinetic Six Ltd. (“Kinetic Six”) of Hereford, UK.

March 23, 2017 — Patriot One announces evaluation and purchase agreement with iconic Las Vegas property, Westgate Las Vegas Resort & Casino, to install concealed weapons detection system.

March 29, 2017 — Patriot One signs reseller agreement and purchase order with South African security firm, Mutual Safe and Security Group, to become latest reseller of concealed weapons detection system.

April 13, 2017 — Patriot One Announces Canadian Research Partnership Grant to advance concealed weapons detection PATSCAN™ 2.0. NSERC’s Idea to Innovation grant supports technological evolution.

April 26, 2017 — Entry into an agreement with a strategic industry partner aimed at significantly broadening its ongoing product commercialization activities. Patriot One explores strategic relationship with Tier 1 Integrator and advances concealed weapons detection opportunity with global partner.

May 10, 2017 — Entry into a reseller agreement with information technology communications contracting firm JJB Federal LLC and its specialty sales division UnitedEye Inc., based in the Washington, DC area.

May 25, 2017 — Entered into a reseller agreement with systems integration experts SENGEX of McLean, Virginia. Patriot One and SENGEX accelerate PATSCAN delivery to U.S. Government agencies.

June 29, 2017 — Entered into a reseller agreement with accredited national systems integration experts, Aotea Security (NZ) Ltd. of Dunedin, New Zealand.

September 6, 2017 — Gains Industry Canada Approval and initiates September installations of weapons detection system to law enforcement customers. Deployments to commence at covert urban locations in Canada.

October 2, 2017 — Patriot One Receives FCC Approval for PATSCAN CMRTM Paving Way for Commercial Roll-Out. Major Milestone Achieved in Less than a Year by Concealed Weapons Detection System Developer.

Patriot One Technologies achieved its yearly sales target as early as in May 2017. The 2017 production target of 300 units has also been reached.
The company has already started to receive orders for 2018 and is now in the midst of intensifying sales for Q1 2018, one of the company’s milestones. See “mass market roll-out” below.

The company has recently communicated that they are currently in talks with the largest security solutions companies and will conduct pilot projects with these companies. The relationship with these companies may look quite different from the relationship with the dealers. There may be sales on a license or even an OEM (Original Equipment Manufacturer -a company that manufactures the final product that can be sold in the open market).

Patriot One Technologies’ challenge is, according to CEO Martin Cronin, what customers to choose, not to acquire customers. Interest is simply overwhelming and the company is being approached daily by buyers from around the globe.

Patriot One Technologies currently has a production capacity of 300 units per month, but will shortly increase it to between 1000 and 2000 units per month. CEO Martin Cronin communicates that the company’s production needs for the next 12 months are thus covered.

In 2018 a mass market roll out will take place.

https://robertveritas.wordpress.com/2017/10/28/patriot-one-technologies-analysis-english/