Inventing new hardware isn’t easy.
Establishing a market is even harder.
The Segway is a perfect example of this.
In 2002, the two-wheeled transportation devices were the talk of the town, which triggered wild sales projections.
But nobody bought Segways.
For a very simple reason: there was no identifiable market.
As it turns out, people like walking and bicycling – there was no imperative for any consumer or business to buy a Segway.
Technology companies that succeed typically have a hungry niche market waiting to be conquered – and then possibly – expanded.
Patriot One (PAT.V) is an example of an innovative company with a new product and a clearly defined market.
The company’s “Cognitive Microwave Radar” detects concealed weapons from a compact piece of hardware that can be embedded in wall cavities.
The technology is “Designed for cost-effective deployment in weapon-restricted buildings and facilities. The hardware can be installed in hallways and doorways to covertly identify weapons and to alert security of an active threat entering the premises.”
The Company’s motto Deter, Detect and Defend is based on the belief that widespread use of its technology will act as an effective deterrent, thereby diminishing the rise of active shooters across the globe.
And we’re not just talking about airports and nightclubs. There is a growing list of institutions that are trying to creating weapons-free environments.
The PAT technology has the ability to scan in tight or wide spaces.
Patriot One has FCC and IC certification which: 1. Creates a pathway to mass commercialisation in North America. 2. Sets precedent for approvals in Europe and Asia. 3. Assists global resellers to meet certification requirements.
Patriot One recently solved the problem of fuzzy CCTV images, by integrating its technology with March Networks.
“By combining real-time covert weapon detection alerts with high-definition (HD) video, the integrated March Networks and Patriot One solution allows security to respond more knowledgeably, and quickly, to potential threats.”
On June 13, 2017, Patriot One reported confirmed sales commitments of $2.7 million.
Deals have been signed in Canada, the US, the UK, and South Africa. In Q4, 2017 shipments to end-user installations are beginning. Patriot One has a scalable manufacturing process.
On October 1, 2017, a 64-year-old gambler used a hammer to smash a hole in a 32nd-floor window at the Mandalay Bay Resort in Las Vegas, opening fire on a crowd of music fans at an outdoor concert below, killing 59 people and injuring more than 500.
Unsurprisingly, PAT stock went on a tear.
For the most part, Patriot One management kept its head down and continued with the product rollout, although the CEO Martin Cronin did appear on Fox TV to explain PAT’s weapons detections technology.
“Smart technologies, coupled with advancing practices and policies, can make a difference,” Patriot One Technologies CEO Martin Cronin told FOX Business’ Ashley Webster Thursday. “But people go there for a good time. They go to move freely. They don’t want to fundamentally change the way of life.”
Here’s the real reason we think Patriot One is going to be successful.
American’s love their guns.
Mass shootings do not create anti-gun sentiment.
Patriot One’s market is getting bigger and hungrier every day.
On November 14, 2017 PAT announced that its $10 million bought deal financing was increased to $11.5 million .
“This new round of investment increases our working capital to approximately $15 million and enables us to expand our product development efforts to meet global demand for PATSCAN,” stated Cronin.
According to the press release:
The financing further supports research to develop future iterations of the technology such as mobile applications including wearable devices for police officers, as well as detection of other non-traditional weapons-grade materials. The pace of activities on several fronts is rapidly increasing, and directly benefitting from the recent financing.
The Company is in the process of rolling out initial client installations while optimizing software configurations to meet real-world demands and variables. PATSCAN systems are in the process of deploying in the US, initially in Las Vegas, as well as in Canada. These installations will be used to build-out machine learning capability to ensure effective detection parameters are available as commercial deployment advances.
In 2010, the UK businessman, Jim Heselden, who purchased the Segway company, died after riding one of the 2-wheeled scooters off a cliff near his Yorkshire estate.
A tragic end to a company with an innovative product but no identifiable market.
If it could go back in time, what would Mandalay Bay Resort pay for discreet weapons detection technology?
Patriot One has a market cap of $107 million today.
Full Disclosure: Patriot One is an Equity Guru marketing client, and we own stock.