TORONTO, Dec. 13, 2021 (GLOBE NEWSWIRE) -- Patriot One Technologies Inc. (TSX-V: PAT) (OTCQX: PTOTF) (FRANKFURT: 0PL) (“Patriot One” or the “Company”), is pleased to issue the following letter from Patriot One CEO, Peter Evans.
Shareholders,
What a difference a year, or a quarter, makes.
I joined Patriot One a year ago, almost to the day. It has been a year of significant change and excitement. After assessing all aspects of the business - the market, the business, the products, the team, and digging into deep discussions with customers and market experts - we quickly forced necessary changes to position the business for success after a number of disappointing years and an unprecedented global pandemic.
Changing the strategy meant changing our priorities, narrowing our focus, redefining our roadmap and go-to-market strategy, and shifting out non-performing pipeline, people, partners, and products. Our new strategy drives us to a singular focus to be a dominant player in a $4B North American market, versus a non-player in a larger global market. With success, we will then move into adjacent markets with a solid foundation and references.
Over the course of this year, we have worked extremely hard to overcome the challenges and legacy of the past, and re-establish the Patriot One brand; a new brand and direction based on serving our target customers very well. Patriot One v2.0 began about eight months ago, with this new focus, and as the markets re-opened. Within that time, we have established a leadership position and strong support and growing excitement within our specific target markets.
The Quarter
It has been yet another very compelling and busy quarter. It was only 90 days ago when we had just completed the ICS West show in Las Vegas where we announced the next iteration of our Multi-Sensor Gateway solution, significantly leapfrogging existing detection capabilities while simultaneously reducing false alerting, and setting a new standard for the industry. The acceleration continues across all functional areas, and I believe that we are now at a significant inflection point as a business.
We have been focused on completing necessary certifications, live system tests, and feature requests from our target customers in order to achieve required approvals for broad deployments. Additionally, we have seen a significant uptick in inbound interest and leads from companies in manufacturing, distribution, and healthcare, despite not specifically targeting those segments. I am looking forward to closing business with customers from these industries and announcing these well recognized brands, if, and when, we are allowed to do so.
Highlights for the past quarter include:
- Accelerated innovation, with the development of our new complementary Platform solution - Facility Insights – providing a real-time end-to-end perspective on security and operations metrics, thereby driving digitally enabled security and operations at venues and commercial facilities.
- Delivery of the next iteration of our Multi-Sensor Gateway solution and deploying this into stadiums and other venues to protect the entire facility.
- Completed multiple third party evaluations and certifications on behalf of the pro-sports leagues. These were conducted as part of multi-phased programs to validate the solution, develop league best practices, and prepare the leagues and teams for deployment. These certifications were a critical step in the journey to league approvals. An important note – the tests and verifications that we undertook were based on league defined requirements, not our own defined tests. This is a critical differentiator for us as we are the only company willing to use league requirements as the basis of our testing. Announcements and report availability for these tests will occur in the coming weeks.
- Successfully demonstrated and deployed the solution at multiple venues for assorted NFL, NHL, NBA, and live entertainment events.
- Continued to build the Company’s sales funnel with new qualified opportunities and grew a $3 million backlog of customer commitments that will be recognized as revenue in future periods.
The Year in Retrospect
As mentioned, I joined Patriot One almost exactly a year ago. At the time, we had many challenges to overcome. Reflecting on these challenges, it is interesting to compare where we were a year ago, to where we are now:
COVID
A year ago, the world was still locked down due to COVID. US-based customers could not get to their places of work, let alone a Canadian based organization and staff. As customer environments started to re-open in the March timeframe, many customers had to navigate through new operational requirements, new standards, and then through the summer and fall, new vaccine screening requirements. This served to add layers of complexity to their business.In the past six months, we have been aggressively making up for lost time; meeting new prospects and customers continuously, with a new US-based sales and sales-engineering organization focused on accelerating engagements, trials, and pipeline development.
Strategy
A year ago, Patriot One’s business strategy was undefined. The company was in pursuit of multiple vertical and global markets, and multiple products, with a shot-gun approach that was operationally complex and costly.Today, Patriot One is singularly focused on specific markets where we have a very tight product-market-customer fit, and where customers are highly engaged and are “pulling” on our product (versus us pushing). As a result, we have developed a strong pipeline in these markets, thought leadership and support from key influencers, customers and references.
Product
A year ago, our product was untested, unproven, not certified, and not specifically aligned to the needs of any one market. The product roadmap was overly complex for a small startup company.Today, we have narrowed our focus to a specific product set and roadmap that is being driven by a ‘punch-list’ of features and requirements jointly defined and agreed with our customers, and aligned to our core market segments. The R&D team is innovating fast, much faster than the rest of the industry.
We have completed multiple third party certifications of the product, and are the only solution available to organizations in specific leagues and markets that currently meets their security standards. The excitement with our target customers is such that the recent NCS4 testing (announced by NCS4) included participants and observers from all the pro-leagues and from global live entertainment organizations who requested to participate.
Sales, Pipeline and Contracts
A year ago, we had few meaningful contracts or deployments. We could count the number of meaningful customer engagements on one hand. Today, we are viewed by many as the preferred solution for their business. In the past six months, we have secured multiple smaller contracts, and are in negotiation for a number of larger contracts. Some of the smaller contracts start with a single location booking, with the potential to add dozens of further locations for the same customer.We are starting to hit our stride: we have more than tripled the bookings and revenue backlog compared to this time last year. Additionally, we have doubled our in-quarter revenues, and we see this trend continuing each quarter based on the qualified pipeline and opportunities currently being worked.
Cash Burn
A year ago the business was unnecessarily consuming cash at a rate not appropriate for our business maturity. This burn was a reflection of a disjointed strategy and consequential spending of cash to attempt to drive success.Today, our burn rate is better aligned to our business strategy, conserving cash with more effective and purpose-driven spending.
Looking Forward
Now that we have established the product in the market and received third party validations, we expect the bookings to further accelerate. With proof points and referenceable customers to validate our solution and value proposition, I will be restarting our Investor Relations activities to drive market interest and demand for the stock.
In Conclusion
I often think that Patriot One ‘restarted’ in March of this year, 8 months ago. Like many startups, the prior 3 or 4 years were characterized by product development, and market testing and market development. Like many startups, the company was chasing too many markets with too many product ideas. Geoffrey Moore has written about these challenges with startups, and the need for a maniacal focus on a single market, and aligning everything in the business – sales strategy, marketing, pipeline development, product features, pricing structures, support models - to that singular focus so that a company is the optimum and obvious solution for those customers. That is what we have executed, resulting in the unbelievably positive set of engagements we have had in the past 90 days, and the tripling of the bookings backlog.
Reflecting back on the past year, and even the last 90 days, I am very pleased with the business progress, and we have line of sight on a robust pipeline of sales opportunities that we are working to close this quarter. I invite our investors to not let the past influence your perception of the future. Patriot One v2.0 is on an entirely new journey and the customer momentum is building.
The next investor communication will be an investor Q&A webinar, which will occur likely mid-January due to the holidays (date to be confirmed and published). By then, I hope to be able to announce specific agreements and approvals. We will welcome all questions from our investors on that call and will dedicate a longer period of time to investor questions.
Finally, as previously stated, the best way that I, and all the team at Patriot One can drive shareholder value and stock price is to deliver revenue. We recognize this. This is our priority and why the whole team is focused on customer engagement.
On behalf of all of us at Patriot One, we wish you a healthy and prosperous 2022.
Best regards, Peter
For further information, please contact:
Patriot One Technologies Inquiries
info@patriot1tech.com
www.patriot1tech.com
Media Contact
Caroline Metell
PatriotOne@threeringsinc.com
CAUTIONARY DISCLAIMER STATEMENT:
No securities exchange has reviewed nor accepts responsibility for the adequacy or accuracy of the content of this news release. This news release contains forward-looking statements within the meaning of applicable securities laws relating to system sales, product development, licensing, commercialization and regulatory compliance issues and other statements that are not historical facts. Forward-looking statements are often identified by terms such as "will", "may", "should", "anticipate", "expects”,” believes”, and similar expressions or the negative of these words or other comparable terminology. All statements other than statements of historical fact, included in this release are forward-looking statements that involve risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from the Company's expectations include counterparty default and other risks detailed from time to time in the filings made by the Company with securities regulations. The reader is cautioned that assumptions used in the preparation of any forward-looking information may prove to be incorrect. Events or circumstances may cause actual results to differ materially from those predicted, as a result of numerous known and unknown risks, uncertainties, and other factors, many of which are beyond the control of the Company. The reader is cautioned not to place undue reliance on any forward-looking information. Such information, although considered reasonable by management at the time of preparation, may prove to be incorrect and actual results may differ materially from those anticipated. Forward-looking statements contained in this news release are expressly qualified by this cautionary statement. The forward-looking statements contained in this news release are made as of the date of this news release and the Company will update or revise publicly any of the included forward-looking statements only as expressly required by applicable law.
Neither the Toronto Stock Exchange (TSX) nor its Regulation Services Provider (as that term is defined in policies of the TSX) accepts responsibility for the adequacy or accuracy of this release.
