TORONTO, Oct. 21, 2023 (GLOBE NEWSWIRE) — Patriot One Technologies Inc. (TSX: PAT) (OTCQX: PTOTF) (FRANKFURT: 0PL) (“Patriot One” or the “Company”), a technology-leading threat detection and patron screening solutions developer, is pleased to announce its fourth quarter and annual financial results for the year ended July 31, 2023. All information is in Canadian dollars unless otherwise indicated.
The following press release should be read in conjunction with the Company’s Annual Consolidated Financial Statements, prepared in accordance with International Financial Reporting Standards (“IFRS”) and our Management’s Discussion and Analysis for the years ended July 31, 2023 and 2020, which can be found under the Company’s profile on SEDAR at www.sedar.com.
“Fiscal 2023 was a year of focus and resetting our strategy to align to our key markets resulting in a notable increase in customers requesting product demonstrations in both controlled and live events,” stated Peter Evans, Chief Executive Officer of Patriot One. “These demonstrations are the most critical step in the sales cycle and we see ourselves at an inflection point as we start to see these trials pay off, as seen in our increasing sales backlog and the many customers in the late contracting stage. With this momentum, I am very optimistic and believe we are well-positioned to deliver a strong fiscal 2023.”
Company Highlights for the Fiscal Year ended July 31, 2023
The following is a summary of the key business highlights for the Company for the year ended July 31, 2023:
- Welcomed Peter Evans, as Chief Executive Officer and Director, and Karen Hersh, CPA, CA as Chief Financial Officer and Corporate Secretary;
- Commercially released the Multi-Sensor Gateway in Q1, which identifies on-body concealed weapons in uncluttered environments, followed by an enhanced release subsequent to the fiscal year end;
- Secured up to $4.5 million of co-investment funding from the Canadian Digital Technology Supercluster for the advanced development and deployment of the Health and Safety Detection modules of Patriot One’s Video Recognition Software, of which approximately $2.9 million has been claimed as of July 31, 2023;
- Revamped its sales and marketing strategy to be highly focused on campaigns aimed at our key target markets resulting in multiple successful customer deployments;
- Hired new professional and seasoned sales representatives who have begun closing long-term contracts and built a solid pipeline of business for both our threat detection and advanced video AI solutions;
- Closed multiple long-term Multi Sensor Gateway subscription arrangements during the year bringing our total Patriot One Platform backlog to over $1 million. Many prospective customers are in final negotiations or undergoing trials which are expected lead to additional commitments in the coming months;
- Completed work on existing Xtract contracts worth $1 million during the fiscal year and was awarded multiple government projects during and subsequent to the fiscal year, totaling $2.6 million including a 12-month contract worth $1 million to adapt its artificial intelligence (AI) innovation platform to provide misinformation and disinformation detection for Canada’s Department of National Defence; and
- Implemented restructuring and cost cutting efforts to improve operating efficiencies and to better align the Company with its strategic direction and business development plans.
Fiscal 2023 Annual Financial Results
- Revenue was $1.1 million for the year ended July 31, 2023 as compared to $2.1 million for the year ended July 31, 2020, primarily due to the timing of the sale of Patriot One Platforms to Innovative Solutions Canada during the year ended July 31, 2020.
- The backlog of sales commitments not yet recognized as revenue was $2.4 million as of July 31, 2023 as compared to $1.2 million as at July 31, 2020. Subsequent to year end, the Company was awarded an additional $1.3 million in additional sales commitments bringing its total backlog to $3.6 million.
- Loss from operations for the year ended July 31, 2023 was $12.8 million as compared to $23.4 million of the year ended July 31, 2020. The decrease in loss pertains mainly to cost cutting efforts to improve operating efficiencies.
- Loss and comprehensive loss for the year ended July 31, 2023 was $16.6 million as compared to $25.1 million of the year ended July 31, 2020.
- Basic and diluted loss per share was $0.11 for the year ended July 31, 2023 as compared to $0.17 for the year ended July 31, 2020.
Fiscal 2023 Fourth Quarter Financial Results
- Revenue was $0.3 million for the fourth quarter ended July 31, 2023 as compared to $0.4 million for the same period in 2020.
- Net loss from operations decreased from $5.6 million in the fourth quarter ended July 31, 2020 to $3.1 million in the fourth quarter ended July 31, 2023. The decrease in loss pertains mainly to cost cutting efforts to improve operating efficiencies.
- Wrote down the Company’s investment in Sotech Secure, LLC (“Sotech”) to $nil. Despite the write-down, management will continue to take every financially prudent measure to recover the Company’s investment in Sotech.
About Patriot One Technologies
Patriot One Technologies makes unobtrusive, artificial intelligence (AI)-driven weapons and threat detection systems that enable arenas, schools, theaters and other businesses to provide unprecedented safety while also improving the customer experience. The company’s Multi-Sensor Gateway enables companies to covertly screen for weapons at points of entry without disrupting the flow of traffic, and its AI-based Video Recognition Software enables venue and building operators to identify weapons and other threats inside and outside of facilities, while also providing valuable intelligence for optimizing operations. Follow us on Twitter @patriot1tech.
For further information, please contact:
Patriot One Technologies Inquiries
[email protected]
www.patriot1tech.com
Media Contact
Caroline Metell
[email protected]
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”, “anticipates”, “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.
