Patriot One details $10M public offering following threat detection revenue growth
Patriot One will raise CAD $10 million (approximately US$7.8 million) in a public offering with Echelon Wealth Partners to continue the growth of its threat detection and visitor-screening technologies.
The Canadian object detection and video security provider says that it will issue 16,666,667 units of a common share and a common share purchase warrant (or a ‘warrant share’) at a price of $0.60 per unit for gross proceeds of up to $10,000,000.20. A warrant share is exercisable for a period of 36 months from the closing of the public offering at an exercise price of $0.75, a statement from Patriot One says. The offering will close on March 17, 2022.
The company says it will use the proceeds from the public offering for working capital and general corporate purposes.
The announcement was made after Patriot One revealed its fiscal 2022 second quarter interim financial results for the three- and six-month periods ended January 31, 2022.
For its fiscal quarter ended January 31, 2022, the company summarized highlights of the period. It says it completed a third-party operational exercise with the National Center for Spectator Sports Safety and Security (NCS4); secured a $1 million contract with Canada’s Department of National Defence, to develop an AI-powered full motion video analytics application; signed a contract with the Office of the Inspector General to provide patron screening at its headquarters; and commercially released the next phase of its threat detection multi-sensor gateway.
In the second quarter, the company’s revenue showed a notable uptick, with $1.2 million and $1.9 million for the initial three- and six-months periods for 2022 respectively, compared to $0.3 million and $0.7 million for the same periods ended January 31, 2021. Patriot One claims that $3.5 million was not recognized as revenue due to a backlog of sales commitments as of the end of Q2, compared to $0.8 million as of a year earlier. An additional $1.2 million in revenue is expected to be recognized from pending trials.
The company’s loss and comprehensive loss were reported as $3.1 million and $4.2 million for the three- and six-month periods ended January 31, 2022, compared to $3.1 million and $6.5 million for the same periods ended January 31, 2021. Patriot One says the decrease in loss was due to an increase in revenue and non-dilutive funding from Raytheon.
Patriot One also recently signed up Kia Georgia for a deployment of its Multi-Sensor Gateway for computer vision screening at facility entrances. This allows employees to pass through the screening process without emptying their pockets of metal, which speeds up the process, according to a company announcement.
“We are hitting an inflection point in our company’s growth. This quarter we’ve won several deals and continue to work many notable customers through the sales cycle. We are also starting to see our sales efforts translate into recurring revenues evidenced within our growing backlog,” says Peter Evans, CEO of Patriot One. “We are really encouraged by the continued uptick in the number of customers who are asking about our solutions and are requesting demonstrations. A lot of these customers are seeking us out after hearing the buzz about Patriot in the marketplace. The word has gotten out and we’re working hard to keep up.”