Xtract One Technologies Inc (XTRAF)

[Gwihan]

Peter Evans Reply: Limits to info sharing, installs


Hi everyone, new investor in Patriot One here. Thought I'd like to share a recent clarification I had with Peter Evans (CEO). This was on 24th May 2021.

My questions

Just two points I'd like to bring to your attention, if they were not considered already:

Firstly, I'd like to clarify on whether there are limits to the type of information that can be shared publicly. This could be due to the nature of customers/product secrecy - where it is possible clients (whether Government, or from the private sector), may have engaged Patriot One's services, but under a contract or NDA, Patriot One is simply not allowed to disclose who that client is, nor what was implemented for security reasons. Is this why some more technical/specific details are not revealed in the public engagements? (competitive reasons also).

If so, it may be useful to let investors know that. Some investors are still thinking these information were omitted, rather than withheld purposefully. Appreciate if you could share more on that.

Secondly, are there any possibilities for your customers to install / integrate on their own if the use case is simple enough? This could free up sales staff / engineers for the more advanced deployments. Appreciate if you could provide more on that as well.




Peter's reply:

thank you for your message. Frankly, I do not respond to these messages primarily due to time (I am focussed on driving the company and we have thousands of investors.....if I were to respond to everyone, I would never get to customers), and secondarily, there are a number of internet trolls in our investor base who spend too much time spreading disinformation. I have no time for them, or to fuel their mania.

However, your questions are thoughtful and intelligent, therefore I am happy to respond. You are welcome to post the following if desired.


I have described previously the limits that we have on communicating customers/products before, however for clarity can restate here. There are a number of reasons that we cannot, or that I am choosing not to communicate. These include:
1) Every customer contract or NDA has a specific statement that we cannot communicate the customers name without prior written approval. In many cases the customers explicitly do not want their name published because it makes them a target for people trying to "beat the system".

2) We are also cautious about announcing product enhancements until those enhancements are completed, and frankly, when they are starting to deploy with customers. We are beating our competition in head to head tech bakeoffs, and I do not want to alert my competition as to what my next technical move is where I will checkmate them.
I also do not wish to publish tech details so that they can copy what we have done. We are introducing some unique capabilities that major sports leagues have deemed as mandatory to deploy. the last thing I wish to do is inform the competition on how to catch up.

3) In the past the company tended to make announcements to appease the investors. Some of these announcements were pre-mature, and then were affected by COVID shutdowns. The investors are highly sensitive to this past, and I do not want to be the next "boy who cries wolf" and repeat the past. We are building the business. Slowly and progressively. Bookings will be the indicator or success, not press releases.

Regarding your question on customer self-installs. Ultimately that is the goal, however, from standing at a stadium entry and watching 9,000 people walk through the platform, it was clear the biggest issue is the security operations, managing the traffic flow of patrons, and understanding how and where to implement new technology. Think of it this way - we are moving from an abacus (walk through metal detector with a binary output) to a computer (with actionable insights and integration to security operations). That is not a simple install

Peter

Summary
1. There are limits to what can be shared publicly. Think about the competitive advantage of the company, as well as for clients. Clearest indicator will be sales.
2. Patriot One's product are beating competitors.
3. Look for the uptick and focus on increased client engagements and sales closing. Each implementation is unique, as are the security operations.