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Revenues, Business Objectives/Milestones And Timing, Anticipated Events/Triggers And Timing, As Of October24, 2017

Summary

Company (PTOTF) update on:

Revenue Streams

Business Objectives and Timing

Anticipated Events/Triggers and Timing

The interest in Patriot One Technologies Inc. has soared among investors lately. Especially in Scandinavia. There are many new investors looking to gather information and upcoming triggers. And there are probably many who already have invested in the stock who would appreciate a summary of what to expect in final months of 2017 and further into 2018. So here goes.

Source: Short Term Prospectus, Patriot One Technologies Inc, October 24, 2017. Final Short Term Prospectus Oct 24 2017.pdf

Revenue Streams

Patriot anticipates that it will earn revenues from three (3) sources. The hardware will be provided to the marketplace at a price of $10,000 USD per unit to resellers based on configuration. Management believes that this price point is competitive with WTMDs from current companies providing solutions in this market. In addition to the hardware solution, Patriot will offer a monthly subscription of up to $500USD per device for software updates and signatures of new weapons. This subscription will be paid monthly for the useful life of the device. Lastly, Patriot will provide training in security procedures related to active shooter and terrorist threats. Management expects that these service components of the business will account for no more than 20% of total revenues.

Patriot plans to distribute products and services through a channel model, partnering with leading providers of security products and services. Management is in conversations with large security services companies to resell and promote CMR-1 as part of security installations globally.

Business Objectives/Milestones and Timing

The anticipated timing for achieving the Company’ s objectives with the net proceeds of the Offering is as follows:

  • Objective/Milestone: Acceleration of sales and global distribution
  • Timing: Started in Calendar Q4 2017

  • Objective/Milestone: Cost reduction on the current platform to grow margins
  • Timing: Completed by Calendar Q2 2018

  • Objective/Milestone: Product development of follow-on PATSCAN technologies for weapons
  • Timing: Completed by Calendar Q4 2018

Note: The above timelines reflect the Company’ s best estimation as of the date hereof, however each relies on a number of factors beyond the Company’ s control which may either accelerate or slow the indicated timeframe. There can be no assurance that the milestones will be achieved by the Company within the indicated timeframes, or at all.

While Patriot intends to meet these objectives as stated above, there may be circumstances where, for sound business reasons, the objectives are modified, the timing is adjusted, or the objectives are not reached.


Significant Events needed to occur for objectives to be accomplished

There are a number of significant events that must occur in order for these objectives to be accomplished. These include principally:


Event Anticipated/Trigger and Timing

  • Event Anticipated/Trigger: Successful installation of the first systems to Canadian clients
  • Timing: December 2017

  • Event Anticipated/Trigger: Hiring of key resources in the US and Europe for installation and development of sales plans
  • Timing: Initial compliment anticipated to be in place by December 2017, however, this will be an ongoing process

  • Event Anticipated/Trigger: Early adopter integration with key software and hardware systems of the Company’ s lead customers
  • Timing: Ongoing to Calendar Q1 2018

  • Event Anticipated/Trigger: Development of additional training facilities, as well as increased focus on technical development and sales teams, including training of resellers to successfully install and deploy the system to ensure customer expansion
  • Timing: Calendar Q1 2018

Note: The above timelines reflect the Company’ s best estimation as of the date hereof, however each relies on a number of factors beyond the Company’ s control which may either accelerate or slow the indicated timeframe. There can be no assurance that the significant events will be achieved by the Company within the indicated timeframes, or at all. The costs of the foregoing significant events involve substantial overlap among certain events, are subject to significant variance and, accordingly, are impossible to determine precisely at this time.

Disclosure: I am/we are long ptotf.