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DETER DETECT DEFENDVOLUME 16APR 2020NFORCEDe N e w s l e t t e r f r o m Pa t r i o t O n e Te c h n o l o g i e s I n c .A LOOK AT TODAY AND TOMORROWPATSCAN Multi-Sensor Covert ThreatDetection PlatformThe deployment and development of the PATSCANMulti-Sensor Covert Threat Detection Platformcontinues, even under the Covid-19 restrictions.Our engineering and deployment teams continue towork with resellers and their existing and new clientson installation and deployment efforts. In addition,the various teams continue their ongoing efforts inenhancing the Platform and each sensor module.Some of those staff who are restricted from workingin our labs have brought equipment to their homes tocontinue their work, while other staff not impacted byCovid-19 restrictions, continue work in our labs. Restassured, these engineers are safe and working instaggered shifts to advance the Platform’s technologies.PATSCAN Platform & User Interface (UI):The quarter has been a busy one as the PATSCANPlatform team has worked to bring together severalvalue-add features to the current Platform offering.Performance testing of this new package will continueover the next quarter, as the team is excited aboutthe feedback received from our valued partners andresellers. The next-generation user interface (UI) isprogressing quickly and includes several powerfulfeatures aligned with the goals of the Company inoffering a force multiplier for security professionals. Thepower of the Platform continues to grow as all teamswork together to advance each sensor integrationwith best-of-breed security technologies, aggregatingand distilling disparate technologies into a single andactionable situational awareness solution.VRS Software modules:The quarter witnessed several breakthroughs inimproved accuracy with each PATSCAN VRS (v1.0)software module deployment. The Video Analyticsteam will continue to push the boundaries of state-ofthe-art detection in the real world, across a number ofenvironments with variations in lighting and cameradistances. Specifically, Module 2: fights/disturbancedetection has matured nicely and will begin paiddeployments along with Module 1: weapon detection.Both Module 1 and Module 2 are priced per camerawith a minimum number of cameras per deployment,and early adopter promotion for adding both to asingle camera.TMS Sensor Module:For the PATSCAN TMS sensor component of thePlatform, the quarter has been very active for theMagnetic Sensor team’s engineers and developers,who have put into production the latest version of theTMS sensor (v1.1). This new version is now smallerin size with equal performance to the first deployedTMS sensor module (v1.0). The focus of this newestPATSCAN TMS (v1.1) has been to make the targetedmagnetic detection capabilities more robust andJAN - MARCH 2020 - First QuarterIssue #16 - Pg 1
DETER DETECT DEFENDCEO CORNERDear Partners, Clients, Shareholdersand SupportersFirst, may I wish you all health andwellness as we get through these veryunsettling times. Clearly, the challengesthrown up by the Covid-19 pandemictouch every aspect of our lives andPatriot One is, of course, not immune.Rest assured, however, that we are inno way in a suspension of operations.Far from it; security remains a top ofmind issue for a great many businessesand our business development teamare flat out engaging with existingclients and distributors, as well as amyriad of new opportunities. We expectto see many good news stories, assome element of normalcy returns tolife. We have worked hard at ensuringsafe business continuity practices, sothat technology development continuesapace. Additionally, we are deeplyengaged in exploring new AI-drivenopportunities for pandemic responsetools.As shareholders ourselves, ourteam is disheartened by the marketturmoil and the immense downwardpressure on stocks, including ours.However, we remain very confidentof the outlook as we emerge from theCovid-19 crisis and markets recoverconfidence. In the meantime, alongwith continued business developmentefforts, we have engaged in rigorouscost controls to ensure that oursustainability is not impacted by thecrisis, as well as chasing down nondilutive financing opportunities tosupplement our healthy treasury.The expectation of many expert analystsis that elements of the current way of lifewill remain with us long into the future.In that context, automated contactscreening and AI-driven decisionmaking tools will be more important thanever. My focus through this crisis is onensuring that Patriot One is positionedto be in the forefront when it comes tothe challenge of communities adaptingto new realities. It can be hard to bean optimist against the backdrop ofsuch human suffering and economicdisruption as we are witnessing,however, I remain so.Please stay safe and thank you for yourcontinuing support as we embark on thenext part of our journey.Yours in public safetyMartin CroninCEO & PresidentJAN - MARCH 2019 - First QuarterAPR 2020VOLUME 16compact, allowing for a wider range of use case deployments for easierinstallation both indoors and outdoors. The team successfully achievedthis key milestone during the quarter, but they are not stopping there.Delivery has begun with these new TMS sensors to key resellers andtheir end-clients, and the Magnetic Sensor team has begun work withthese end-clients with a focus on advancing detection performance,while increasing pedestrian flow-through capabilities.CMR Sensor Module & Other Radar Technologies:The Radar Sensor team’s engineers and developers experiencedsignificant advancement in the quarter, working with the Xtract.ai teamon the integration of both the PATSCAN CMR with the PATSCAN TMS.The combined CMR / TMS concealed weapon detection system wouldoperate in high footfall scenarios with improved benign clutter rejection;allowing for an improved seamless and unencumbered experience whenentering a building or event venue. The combined CMR / TMS systemleverages both magnetic and RF sensing capabilities, focused on thesame scan area, to screen for concealed threats at the same momentin time. The information from the two different sensors is the result oftwo different physical phenomena. The team is working to leverage thecombined sensors to improve the overall system classification accuracyand detection performance.In addition, the Radar Sensor team is working on several new radarbased technology approaches for the Platform, which have the capabilityto work in both structured and unstructured deployment environments.These new radar technologies offer a broader range of detection forboth metallic and non-metallic threats.Overall, the team is working diligently, even under Covid-19 restrictions,to validate the combined CMR / TMS and new radar sensor solutions nowand throughout the year; some will require additional FCC experimentalwaiver submissions.STS Sensor Module:In Q4, the multi-chemical sensor (STS) performed successful initialtests with a key government entity in the detection of several commontypes of explosives. Additional work on these common explosivesis currently under development. As shared in the last newsletter, theSTS explosive module is expected to begin initial paid trials with selectclients during Q2, 2020.TSX: PAT OTCQX: PTOTFGeneral Inquiries: 1 (888) 728-1832Investor Inquiries: 1 (888) ssue #16 - Pg 2
DETER DETECT DEFENDVOLUME 16APR 2020OPERATIONS UPDATEOver the past two years Patriot One hasmade several investments in best of breedIT Infrastructure to support an increasingengineering workload and enable scalability forbusiness growth. Between redundant multi-sitenetwork attach storage systems, off-line tape databackup, large UPS, a secure climate-controlledroom, and a best in class SAN/VM server clusterarchitecture with RAID disk arrays, our IT systemensures that the technical and business teamsexperience optimum performance coupled withdata security. In 2019 Patriot acquired a pair ofpowerful servers to provide the compute powernecessary for cutting edge AI/ML data modellingfor PATSCAN products across multiple time-zonesfrom London UK, New Brunswick, to Toronto, andthe Xtract AI team in Vancouver.external supply chain partner experts ensures thatPatriot One’s customers receive their productssafely and on time.Over the past year Patriot One has established anetwork of trusted logistics service providers andimport/export customs brokers to ship PATSCANproducts around the globe. An agile combinationof a highly skilled internal team coupled with ourA small but experienced group, the Operations teamis proud of the successful initiatives implementedthus far and look forward to the many excitingbusiness challenges ahead.JAN - MARCH 2019 - First QuarterAfter a rigorous ERP vendor evaluation RFPprocess in 2019, Patriot has now begun theprocess of migrating away from the current financebookkeeping software [start-up beginnings], ontoa leading enterprise-grade ERP system. Thisfeature rich system will support business processefficiencies in finance and multi-entity luding ecommerce sales on a global scalefor many years to come. The phase 1 go-live isplanned for late summer 2020, to be followedby ongoing ERP enhancements aligned with anevolving business growth strategy.Issue #16 - Pg 3
DETER DETECT DEFENDVOLUME 16APR 2020BUSINESS DEVELOPMENTThe Business Development team continue to drive businessforward by encouraging resellers and end clients to takeadvantage of these Covid-19 social distancing closures toplan, purchase and begin staging for deployment of thePATSCAN Platform. As is seen today, security and safetywill always be critical to industry, making ours recessionresistant. Although some in the media and marketplacehave suggested schools will remain closed for the remainderof the school year, many school security staff are in contactwith us in order to plan for the new year starting in Augustand September. Furthermore, Mt. Healthy City SchoolDistrict has seen the absence of students as an opportunityto continue with the installation of the PATSCAN Platform.Just prior to the outbreak, Patriot One had shipped thePlatform to Ginter Electrical for Mt. Healthy City Schools.Ginter have now been authorized to fully install and deploythe systems.Security and safety are at the forefront of everyone’sagenda and will likely remain that way, especially whenwe start to return to our new normal. We continue toship Platforms, including to the Canadian Government inpreparation for the DND Royal Canadian Navy deploymentsecured through the Innovation Solution Canada project.Additional Platform sales continue to be made and sensormodules are being staged for delivery to new resellers,end-clients and locations for when Covid-19 restrictionsare lifted in these markets.Mt. Healthy City School (Ohio)JAN - MARCH 2019 - First QuarterWhere there are already existing reseller relationships anddeployments, the Business Development team continuesto build brand loyalty and help promote the Platform withthese resellers and other clients. Some clients are feelingfinancially impacted by the Covid-19 pandemic; however,others are taking this opportunity to review new securitysolutions in order to take advantage of some of the USCovid-19 Stimulus Packages offering full-write-offs onsecurity upgrades and enhancements.Per Security Industry Association (SIA) - Installation andupgrades to security and life-safety systems qualify. Thisavailable “bonus depreciation” for Qualified ImprovementProperty QIP is 100 percent of cost for each tax year through2022, which then phases out by 2027. Beyond the Section179 expensing for these costs made available to smalland medium sized businesses through the Tax Cuts andJobs Act, this change means these improvements can nowbe written off regardless of business size. -systems/)In response to this opportunity, the Company hasintroduced some additional Platform early adopterincentive programs with long-term contracts. All in all, theBusiness Development team continues to support existingclients and reseller partners and have stepped-up livewebinar product demonstrations. The feedback that hasbeen received to date has been extremely positive.Banc of California StadiumLA Football ClubIssue #16 - Pg 4
DETER DETECT DEFENDAPR 2020VOLUME 16INVESTOR RELATIONS UPDATEWe realize that during this timeof severe market volatility, youmay have questions about yourinvestment and what actionsto take given the extremeunpredictability. This month themarket has seen unprecedentedtimes with the steep decline inshare price bringing PAT to a52-week low. Market volatilityis normal, but what has caughteveryone off guard is the speedand magnitude of this recentdownturn. Patriot One is in a verygood position having a strongbalance sheet with sufficientcash reserves for 2020 and aremanaging expenses carefullyto maintain our runway well into2021 and beyond. We expectto come out of this downturnstronger and will provideshareholders with value througha solid growth strategy andsignificant accomplishments.Martin Cronin with BBC Reporter during CES 2020 at Patriot OneDevelopment Center inside Westgate Las Vegas ResortEVENTS UPDATE(subject to change per Covid-19 restrictions)NASRO ConferenceDallas, TXJuly 5-10, 2020https://www.nasro.orgISC West ConferenceLas Vegas, NVJuly 20-23, 2020 NEWhttps://www.iscwest.comCTX Counter TerrorismLondon, UKSeptember 8-9, 2020 NEW https://www.ctexpo.co.ukGSX Conference by ASIS Atlanta, GASeptember 21-23, 2020IACP ConferenceNew Orleans, LAOctober 17-20, 2020TSX: PAT OTCQX: PTOTFhttps://www.gsx.orgGeneral Inquiries: 1 (888) 728-1832Investor Inquiries: 1 (888) nference.orgwww.patriot1tech.comISC EastNew York, NYNovember 18-19, 2020https://www.isceast.comISE LondonLondon, UKDecember 2-3, 2020https://www.internationalsecurityexpo.comJAN - MARCH 2019 - First QuarterIssue #16 - Pg 5
DETER DETECT DEFENDVOLUME 16APR 2020PRESS COVERAGEWall Street Journal: AI-Powered Cameras RepresentTech’s Biggest 2Jan 2020IVPM: INTERSEC 2020 Final Show Reporthttps://ipvm.com/reports/intersec-2020Jan 2020GIT Security EMEA: Threat Detection Platform forOhio School etectionplatform-ohio-school-districtJan 2020With Ingram podcast: Martin Cronin from Patriot Onechatting With D3jtVCyyJan 2020International Security Journal: Patriot One To DeliverIts PATSCAN Platform To Ohio School school-district/Jan 2020CBS Tech Republic: PATSCAN platform detectshidden weapons, chemicals, and /Jan 2020NBC Las Vegas: New security technology showspromise in schools, ytechnology-shows-promise-in-schools-stadiumsJan 2020BBC Click: Spotting Guns with Artificial Intelligencehttps://www.youtube.com/watch?v zRTwjLU4B30Jan 2020Equity Guru: Patriot One Technologies (PAT.T)deploys their PATSCAN technology to Mt. Healthyschool ealthy-schooldistrict/Jan 2020Naval Technology: Patriot One wins Canadian DNDcontract for PATSCAN form/Jan 2020NBC Cincinnati: Unobtrusive gun-detectiontechnology being deployed in Mt. Healthy CitySchool ycity-school-district/30796869Feb 2020International Security Journal: Preventing the LoneActor Threat (pgs. .com/html5/reader/production/default.aspx?pubname &edid 867a4bff-5693-4c99-81f30c649ba0a5eeFeb 2020Army Technology: Xtract.ai wins contract to improvesituational awareness for ituational-awareness-caf/Feb 2020Motley Fool: Millennials: 5 Ways to Help Save the World— and Make a -ways-tohelp-save-the-world-and-make-a-profit/Feb 2020CBS LA: 2 On Your echnology-a-threat-to-privacy/Feb 2020Engineering & Technology: Knives out: tech tacklesviolent 0/03/knivesout-tech-tackles-violent-crime/March 2020GIT Security EMEA: Discreet Threat ecurity/discreet-threat-detectionMarch 2020Professional Security Magazine: Role of ews/interviews/role-of-technology/March 2020JAN - MARCH 2019 - First QuarterIssue #16 - Pg 6
DETER DETECT DEFEND AN - MARC 219 - First uarter Issue #16 - Pg 2 VOLUME 16 APR 22 compact, allowing for a wider range of use case deployments for easier installation both indoors and outdoors. The team successfully achieved this key milestone during the quarter, but they are not stopping there.
