Patriot One (PAT.V) is a technology company that has developed “Cognitive Microwave Radar” which detects concealed weapons from a compact piece of hardware that can be embedded in wall cavities.
We have been tracking PAT for almost two years, writing 22 articles including;
- December 20, 2016 PAT signs on Homeland Security Boss
- February 22, 2017 PAT expands its proprietary database of weapons “signatures”
- March 15, 2017 PAT signs a deal with University of North Dakota for a pilot study
- May 15, 2018 PAT goes to Washington
- June 27, 2018 PAT is turning me into a love sick fool
- September 12, 2018 PAT biz model makes more and more sense
“Our motto is also our goal,” stated Patriot One CEO Martin Cronin in our first interview, “We aim to deter, detect and defend against random acts of senseless violence anywhere innocent people work, live, and play.”
We believed at the time – and still believe – PAT’s technology is going to save lives.
According to the Globe and Mail, in 2017, “About $1.5-trillion in assets are under some kind of responsible investing strategy in Canada – up 49% from two years prior.”
Ethical funds should be loading up this stock.
Forget: “Don’t be Evil”.
How about: “Do Some Good”.
Twice in the last 24 months, PAT stopped being an Equity Guru client, but we kept on writing about them.
At a recent “Future Investor Conference” in Vancouver, BC – Cronin told a room full of investors that PAT “does not chase ambulances”.
That’s true.
In fact, PAT tends to go “radio-silent” after U.S. mass-shootings, although there is typically an uptick in trading volumes and stock price.
Recently, investors have started to figure out that PAT’s technology is not dependent on an on-going parade of gun massacres.
According to an article in the Washington Post, “there are more than 393 million civilian-owned firearms in the United States – enough for every man, woman and child to own one and still have 67 million guns left over.”
In 2017, Americans made up 4% of the world’s population but owned about 46% of the entire global stock of civilian firearms.
To paraphrase Equity Guru’s Chris Parry, the U.S. is lousy with guns.
Schools, courtrooms, universities, bars, hospitals and private home-owners – all want to know if their visitors are armed – and if so – with what?
On July 24, 2018 PAT was trading at $1.37.
Today, October 2, 2018 (9 weeks later) – it’s trading at $2.05 – 50% higher.
What’s going on?
Two things: 1. PAT is getting closer to a commercial roll-out. 2. The mainstream media has picked up the story.
Case in point, last week ABC affiliate KTNV Channel 13 Las Vegas, did a feature news piece on PAT’s weapons-detection technology.
“After months of testing and development inside the Westgate Hotel and Casino, employees from Patriot 1 Technologies were busy Tuesday demonstrating several products aimed at helping police and security identify potential threats,” stated KTNV.
On September 24, 2018 Patriot One’s CEO Martin Cronin published a Q3, 2018 update to “Shareholders & Partners”.
“Developments over the past 24 months since we launched Patriot One have been set against a backdrop of ever-increasing active shooter and terrorist assaults targeting people at schools, event venues, churches, tourist attractions, business environments and beyond,” stated Cronin.
Q3, 2018 Highlights:
Positive weapons-detection results within complex environments
Successful human versus target-threat separation
Identified market opportunities to expand algorithm-based software platform with multiple specialized sensors.
Collaborated with The Westgate Las Vegas Resort & Casino
Optimization and efficiency targets reached for the spec-6 antennae system
The concept of a PATSCAN multi-sensor platform is now in play.
PAT has been investing in machine learning, which will enable the capture and assembly of data points from multiple sources.
“We firmly believe that this method can help us best serve varying customer requirements, such as a need to address installation costs related to all of a venue’s indoor and outdoor architectural and environmental realities.”
While many of our investors will see this as a way to capture an even larger market share,” stated PAT, “our clients will see a multi-sensor approach as a means to further guard their properties without creating fortress-like environments.
This last point is important.
PAT has discovered that its future clients want to know who is packing, without the customer or guest feeling “digitally frisked.” So, discretion is an important part of the business model.
Buried in PAT’s current Corporate Presentation is the revelation that “a small research team at Patriot One has identified several innovative threat detection solutions which can easily integrate with our cognitive microwave radar technology (CMR).
PAT is exploring expanding their technology application to provide weapons detection protection for private home owners.
PAT’s “family concept” expands the market for their technology from commercial – to retail.
PAT believes that its multi-sensor system will extend the capability of its PATSCAN system and will result in multiple commercial product launches in Q4, 2018.
A September 12, 2018 Amnesty International Report made the remarkable assertion that “gun violence in the United States is a human rights crisis.”
In 2016, over 38,000 people were killed and 116,000 suffered non-fatal injuries due to firearms in the United States.
According to Allied Market Research, by 2023, the global physical security market will reach $153 billion.
Patriot One has a market cap of $232 million.
Full Disclosure: Patriot One is an Equity Guru marking client, and we own stock.