Xtract One Financials and MSG Investment Examined
Threat detection company Xtract One (formerly Patriot One) said it will receive up to $10 million in outside funding from Madison Square Garden Sports Corporation.
The investment of almost 3 times Xtract's annual sales comes after the company reported flattening revenues and a low cash balance two months ago.
In this report, based on IPVM's interview with Xtract One's CEO Peter Evans, examinations of its most recent financial filings, and its last company earnings call on Dec. 7, 2022, IPVM examines Xtract One's financial outlook and the impact of its new funding.
See previous IPVM coverage of Xtract One (formerly PatriotOne):
- Evolv And PatriotOne Compete As NCS4 Says "Transparency Is a Priority"
- Patriot One CEO Warns NYC Subway Risks 'Logistical Nightmare'
- Patriot One Threat Detection Profile
See IPVM coverage on weapons detection competitors and approaches:
Xtract *** **********
****** ***, ******** ***** ** **********, is * ****** ********* ******* ******** listed ** *** ******* ***** ********. Founded ** ****, *** ******* ******** Xtract ** ** **** *** ********* as ****** *** ** **** ****.
****** *** *** ****** ******* ** $3.6 ******* ** *** **** ****** year *** ***** ****** ** $**.* million ** ** ******* **, ****.
MSG's ********** ** ****** ***
***'* ** **$** ******* ********** ** ****** *********** ** * *****: * $*.* million ******* ********** ********* ** ******** 13, ****, *** * $*.* ******* conditional **** ********* ** ****** *** shareholders' *** **********' *********.
*** ********** *** **** ******* *** Sports ******** ***, * ********** ***** owned ** *** ****** ***********. *** venture *** *** **** *** ****** One ********** ****** **** **********. *** Sports ******** *** **** ******* *** right ** ******* ** ******** ** the ***** ** ********* ** ****** One.
*** ****** *********** ** * ********-****** company **** * $*.* ******* ****** capitalization. *** **** ************ ****** *****, including *** *** **** ****** *** the *** **** *******, *** ****** including ******* ****** ******, ***** **** Music ****, *** *** ******* *******. Its ******* *** *** ** **-****-*** James *****, ***** ****** **** **** the ***** ********** ******** ***********.
Impact ** *** **********
*** *** ********* ****** ******** *** using****** *********** ********** ** *** * lawyer ******** ** ******** ******* *** company ** ***** *** ************** **** ****. ***** * **** with *** ************* *** *** ***** extra ******** ** ****** ***, *** current ******-********* ********** **** *** ******* individual ************** ***.
****** *** *** ***** ***** **** IPVM ********** *** ******* ** *********** include ****** ****:
** **** **** ** ****. ** think ****'** *** **** **** ******** ideas ***** ****** *********, ** *** future *** **** *** *******, *** for *** ***** ** ***** ******, weapons, *********, *** ****,banned *******, all these sorts of things.[emphasis added]
*******, ** **** ****** ***'* ***** is ** ******* ********* ** ** email ** ****:
** **** ****** **** *** **** on ****** ****** *** ********* ************* to ******* * ****** ****** ********** in *** ****** *** **** ** currently ********* ******* ***** ****** ******* detection.
***** **** *** ******* **** ********* go ** ******* ****** ***'* **** business ** ***** *****: ******** ******, post-sales *******, *** ***********.
**********
****** *** ******** **** *******, **** **** ******* ****-**-**** ********, and * *** **** ******* *** the ***** ****** ***** *** *** of ******* ****. *** ******* **** the ******** ** ******** *** **** low **** ******* *** *** ** a **** ** ******* ******* ******** to *** **** ******.
***** ******* **** *** **** ********—****** detectors—is *******, ** **** ******* ** the ******* ***** ** ******** ** solutions ** ********** ********. ***** **** segment ****** "******" ********** **** ** to **% ** *** ***** *******, it ** ** ****** *** *******'* core *****, ***** ****.
***** **** **** **** **** *** company ******* ** ******* ******** "**** similar ** ****** **** **** [****'**] seen" ** *** **** *******. ** 60-70% ** *** ******** ********* *** done ******* *************, ** ******* ******* trajectory ** **** **** ********* ***** subscription ********.
Revenue **** *%
****** ***'* ****-**-**** ******* *** **** 9% *** *** ***** ****** ***** October ****:
****** *** ******** *** **** ********, "Platform," **** ***** *** "******," ********, which ****** ** **** ***** **** government *********, ******:
*** *******'* ******* ****** **** *****, and ***** ********* ** **** **** it *** *** ** * ****** switch. **** ********* ****** ***** ************ to *** *** ****** **** *******, and ******* *********** ** *** ***** Gateway **** ** *** ******** ** May:
** ********** *** ***** ******* ********, the **** ********* ** *** ****** screening ********, ** ****** *** ** June **** ****. ****** *** *** formal ****** ************ [** ***** *******], many ** ***** ********* ****:"Okay, **'** ***** ***** * ****** *** *** **'** **** *** **** ********** **** **** *******." [emphasis added]
************, ****'* *** *** *** * significant ****** ** *** ****** ******* bookings *** ******** ** **** ** our ***** ******* ** **** ****** year. ******* ***** ******* *** **********, pent-up ****** **** ****** *** ** a ****** ******* ****** ***.
****** *** **** ** *** ****** subscription ******* **** ******* ** $*.* million ** ** ******* **, ****. This ****** ** ****** **% ** Xtract ***'* ****** ******* ** *** prior ****** ****:
Sales, *********, *&* ******** **
****** ***'* ****-****-**** ***** *** *********/******** and *********** ******** ********* ** *** last *******:
**** **** *** **** ****** ****-****:
****** *** *** ***** ***** ********* during **********'* ******** ******** ** *********** * ***% ******** in ***** *** ********* ********, ****** due ** ***-**** *****. ***** ***** that *** ******* ******* ***** ******** in **** ****** ** *** **** quarter.
***** **** **** ********* *** ****** of ******* *******, *** *******'* *&* expenses ********* **** *% ****-****-****. *** R&D ***** ** *** ***** ********* were "*** ** *****" ** ** went **** * ******** ****** ** +$2 *******.
Cash **** */* ** **** ****** ****
****** *** ** **** ******** *** increasing ********, ****** ***'* **** **** from $*,***,*** ** **** **, ****, to $*,***,*** ** ******* **, ****, a **% ****:
***** **** ****** *** ** ****** to ******* ****** ***** ** * competitive ******** ******* ****** ******* **** as ***** (***:***** ****** ******** ** ****), ** ** ******** ** **** cash. *******, *** ******** ** *** much ** * **** *** ******* it ** *** **** ******** ** their ****** ****.
***** **** **** ******* ***** **** cost-effective, *** ******* ** ******** ******* to ***** ******* ** ******** *** growth ********:
** *** ******* ****, ** *** not ******* *** ***** ******* ** offset *** ********. *** **** ******** is ** * *** ***** *** we **** ****** **** ** ***** capital ** **** ***** ** ****** 2023 ** ******** ** ******* *** business ****. [...]When ** ******* ** ** **** ** *** ****** ** ***** *******, ** ***** ** ** ******* ** *** ***** ** ********** *** ******** ******* ********* ***** *****, *********, *** ******** ******* ***** ** **** ** ********** ************* ********.
** * ****** *******, ** **** many ******* **** ** ** ** raise ******* ********* *** **** ***** prospectus, ***** ***** ** *** ******* to ***** ******* ********** ** ***** $50 *******.
** **** ***** ** **** *********** in ***** ** ***** **** ** obtain ***** ********** *******, ********* ****** a ****** ** ****. *** ** in *******,we **** ********* ******** ******* ******* ***************** ** *** ***** **** *** *** *** ***** ******. [emphasis added].
*******
******* *******, ***** ***** *** **** cash ***** ****** *** ***********:
*** ********* ** *** ******* *** Madison ****** ******* ****put **** **** ** *** ******* *****, ****** ** **** *********** ** ****** *********** ** **** [emphasis added].
**** **** ***********, ****** *** ***** strong *********** ************* ********** ********* ******* *****, **** $****+ ** *** balance ***** *** * ****** ***** force. ************, **** *** ***** **** a ******* ***** ** ********* ***** at ****** **** ****** ******* *** hospitals, ********* ****** **** *** **** a *********** ********. *** **** *** quickly ****** *** **** ******* ***** not ********* ** ***** ****** ********* will ********* *** *******.
****** *** ********* *** ********* *****: