- First Responder Technologies Inc is a zero revenue company with two products in the prototype phase, characteristics of a venture capital investment.
- FRT's board of directors, executive management, and the advisory council should have excellent relationships with the organizations that would be their main clients.
- I am currently neutral on this stock as it is very unclear at what stage of development their principal products are in.
Up until I came across this Seeking Alpha News article about First Responder Technologies Inc (OTCPK:WPNNF), I never imagined that I would be analyzing a publicly-traded company that has no revenue. I have invested in an Army buddy's start-up coffee business, and I created a small online retail store with a friend. Still, the amount of money that I put in both of them was so little that I do not even consider this as relevant experience. So why did I decided to analyze this company? I spent eight years in the Army, and I have seen first hand how vital new technology is to save soldiers and innocent people's lives. All personal beliefs aside, I have never analyzed or invested in a stock with no revenue, and decide to take advantage of this opportunity to analyze something different. Throughout this article, I will refer to First Responder Technologies as just FRT, which is not their ticker in Canada nor the United States.
After studying the company's prototypes, I decided to write this disclaimer. I became very optimistic about how much their prototypes could improve public safety, and I am afraid that this might make me bias.
About First Responder Technologies And Its Products
This Canadian based company has a mission to use technology to prevent and defuse attacks in public places where the perpetrator has a concealed weapon. They have two main products that are still in the development phase (listed below and as seen in this video).
- Sentinel WiFi Concealed Detection Device - This device is installed at the location and can be used at airports, schools, businesses, etc. to detect concealed weapons. The device communicates with laptops and handheld devices via WiFi connection allowing it to be more mobile than similar devices.
- Sentinel Vision AI Open-Carry Weapons Detection - This camera is expected to be able to use artificial intelligence technology to detect openly carried weapons like guns and large knives. If used in conjunction with the Sentinel WiFi devices, its capabilities are enhanced as it would be able to pinpoint quicker a potential threat. The company is in the process of patenting a Body-Mounted Threat Device that uses the same technology as the Sentinel Vision A.I.
Metal detectors and surveillance cameras have existed for many years, and an investor could easily invest in already established companies instead of investing in FRT. The difference is that by investing in FRT, you need to know if their technology is superior to that of its peers. I believe that it will be as it will rely less on the interaction of humans with the equipment than its competitors, but this will be covered more in part two.
What Are You Investing In
Since the company does not have any revenue due to the stage of development of its technology, an investor is mainly investing in the idea (25%), the technology (30%), the team (25%), its relationships (15%), and future product rollout (5%). The team and its value to the company in my model has a weight of 25%; therefore, the analysis of the team is fundamental.
Board And Executive Team
Kal Malhi (Chairman): He is the founder and chairman of Bullrun Capital, which has raised funds for various projects totaling over $150 million since its inception in 2008. His fund focuses on finding tech-based opportunities in the biomedical, agriculture, and technology sectors. He is a retired member of the Royal Canadian Mounted Police, and he has an extensive network of contacts due to his time in the force.
Robert Delamar (CEO/Director): By trade, Mr. Delamar is a lawyer, but over the past two decades, he has spent most of his time as CEO of tech-focused companies. He worked at an Israeli satellite communications start-up that was sold to Gilat Satellite (in 2010). He founded and served as the CEO of an international digital media company (UUX Inc.) and left in 2014. I could not find a lot of information on this company, but I am almost sure it still exists as I discovered that it had employees and might be located in Miami. He probably sold UUX to some of the employees of the firm, but I do not know this for sure. He was the co-founder and first CEO of Pacific Future Energy Corporation, and he probably sold his participation in this company as its website has no information about Mr. Delamar's time there. He acquired a controlling stake in BitTorrent, Inc and was a co-CEO until he divested his stake in the company a year later.
Michael Malana (CFO/Director): Besides being the CFO at FRT, Mr. Malana is also the CFO at Growmax Resources Corp and Karam Minerals Inc. He has served as the CFO of over five other firms and is a Chartered Professional Accountant.
Naresh Singhal (CTO & Head of Product Engineering): Mr. Singhal was a scientist at India's Defense Research and Development Organization (referred to as DRDO). At DRDO, he was an integral part of several defense projects. After he moved to the United States, he built a Network Management System for next-generation optical networking products for the company Entrisphere, which was eventually acquired by Ericsson. This product helped Ericsson get a foothold in the wireline business. As a V.P. of Engineering at UUX (this is probably where he met Mr. Delamar), he helped create the world's first truly converged internet T.V. as-a-service (iTaaS) platform.
Christopher Moreau (Director): Mr. Moreau has over 30 years of experience in leadership positions and has served as President & CEO of several companies listed on the Canadian Stock Exchange. Currently, he is an advisor at Bullrun Capital.
Dr. Mark Williams (Director): Dr. Williams has a Ph.D. and an MBA. The highlights of his career are mostly oriented towards clinical drug trials.
Michael Kelly (Director): Mr. Kellly is a veteran of the Canadian Armed Forces, and a former member of the Royal Canadian Mounted Police. Altogether, he has over thirty years of military and law enforcement experience. During his time in the military, he was responsible for the Personal Security Detail that protected the Canadian Embassy in the Democratic Republic of Congo (at the time of service, it was Zaire). He provides FRT with expert feedback on its products.
The company has seven advisors in its advisory council. At first, I thought that it was too big for such a small organization, but after reviewing their profiles, I see why they are needed.
Mr. Day was the Minister of Public Safety in Canada. Before this, he was the Minister of International Trade, Minister for the Asia-Pacific Gateway, and Regional Minister for B.C. He has been on several corporate boards, including Telus, RCI Capital, Western One Equity, Baylin Technologies, and AWZ Ventures.
Ms. Busson spent 33 years of her career in the Royal Canadian Mounted Police ("RCMP"). At the end of her career, she became the 41st Commissioner of the RCMP. She has a law degree and is an advisor in National Security and Crime Reduction.
Ambassador Gutman (served as U.S. Ambassador to Belgium) has over 27 years of legal experience in the U.S. and abroad. He has served as the Special Assistant to the Director of Counter-Intelligence and Counter-Terrorism at the FBI.
Brigadier General (Ret.) John Jayet has more than thirty years of military experience. He commanded a military intelligence regiment and was a member of the French Special Forces. He has served as a member of the cabinet of the French Minister of Defense and was a defense attache in the Middle East.
Bob Dameron has over ten years of experience helping start-ups raise capital, and plan and execute their go to market strategies. He is a co-founder for a communications technology start-up, and before this, he served as a CEO for two major corporations.
Dr. Steve DiPaola is a scientist that specializes in Artificial Intelligence. He is most known for his AI-based computational creativity (darwinsgaze.com) and his involvement in 3D facial expression systems.
The source for the above information in this section is the company's website.
All of their products are in the prototype phase, and this significantly increases the investor's risk. From what I have been able to find on the internet and their site, their products have not even been tested. The company is also a penny stock and is listed on the OTC Markets. This company is technically a start-up, and the investor should be comfortable in losing 100% of his investment.
FRT's board of directors, executive management, and the advisory council should have excellent relationships with the organizations that would be their main clients. The idea is a good idea, but other companies are also attempting to do something similar, though FRT's patents should make this process more difficult. I am currently neutral on this stock as it is very unclear at what stage of development their principal products are in.
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