As COVID-19 shuts down a large swath of the economy and makes working remotely the global standard, I touched base with Martin Cronin to see how Patriot One was faring during the shutdown. It was a very fruitful call as, despite the lack of near term business opportunities, Patriot has worked hard to position themselves well for the re-opening of the economy. The post-CV19 world is one in which social distancing will be the norm. The result of this is PAT’s ability to do screening and security without physical contact is a well-suited solution for the future of security, surveillance and threat detection monitoring.
One area on particular that is timely and in which the Company has gotten a lot of questions, is around thermal cameras and their intentions to offer a product in that area. This is indeed an area of focus for PAT and they are looking at numerous systems here. They are currently in the validation process and working to assimilate A.I. into any product that they announce here. As of now, they have yet to pull the trigger on this but stay tuned as it sounds like they are getting closer to expanding the product suite in this direction.
Meanwhile, the greatest near-term business potential lies in the Video Recognition System (VRS). This technology is ready for deployment on a broad scale and is where the Company is going to be focusing their marketing and sales efforts. Expect these marketing endeavors to begin in earnest in the next month or so as Cronin expects PAT to be ready to begin installing products broadly after businesses reopen.
The business development team is as busy as ever, according to the CEO. A big part of this is in the sporting arenas. Professional and amateur organizations alike are thinking through the implications of how to have fans in a CV19 world. Thus, many are having conversations with Patriot and this is an area where we could see a lot of traction over the next few months.
In terms of the balance sheet, PAT has over $27M in cash at this time and they are also possibly eligible for federal assistance monies. At the current burn rate, they have over 18 months of capital on the books; and that is assuming no sales. They remain well-funded.
Life in the times of CV19 is not easy on many companies. Patriot is having their share of issues. Sales are minimal right now and technology teams working remotely certainly slows progress on products like the CMR. But, business will reopen soon and the post-CV19 world is one in which PAT’s products could see high demand. They have broadened their offerings and are strategically positioning the VRS system to be the first big product launch. The product is ready to go and it fits well with the changing market.
Meanwhile, the stock is at levels not seen in years. With the stock at $.55 US, the market cap is down to $75M. If sales of the VRS turn out to be as strong as management hopes, this could be a very opportune time to be stepping into the stock.Tailwinds' Disclaimers & Disclosures: Tailwinds may have been compensated for writing this article. For a full list of disclaimers and disclosures, please visit http://