Xtract One Technologies Inc (XTRAF)

[JohnCM]

This is where that number originated from.

P1T Reportv2 - Level 5
levfive.com/assets/P1T_Reportfinal.pdf
May 18, 2017

In the United States Patriot One needs to get approval for PATSCAN the from the FCC (Federal
Communications Commission). Since the PATSCAN uses low power microwaves to detect the concealed
weapons the wavelength and power have to be approved by the FCC to ensure they do not interfere with
other communication devices. The base technology is common for other uses in the U.S. and the effects
are well known by the FCC. Patriot One is working on their licensing request and management has stated
that they expect to receive FCC approval for the PATSCAN in the 3rd quarter 2017. U.S. interest in
PATSCAN is strong and the Company expects to have orders in hand quickly after FCC approval.
Price and Manufacturing
Retail Price $10,000
COGS $3,000
Monthly subscription/unit $50 ($600/year)
As the Company grows, management will have to determine the best route for continued sales
distribution.
This COGS (Cost of Goods Sold) should go down as the manufacturing volume increases. Patriot one
currently has small batch manufacturing available in the U.S. The Company is in discussions with
multiple outsourced manufacturers that can provide volume manufacturing as sales ramp up in the
second half of 2018.
Markets
Patriot One has identified several large markets in which to focus upon. Government, schools,
transportation, clubs and bars, special events such as sports and concerts (stadiums), offices, shopping,
police and banks.