Mr. Peter Evans reports

PATRIOT ONE RELEASES FISCAL 2022 ANNUAL RESULTS

Patriot One Technologies Inc. has released its annual financial results for the year ended July 31, 2022. All information is in Canadian dollars unless otherwise indicated.

The following press release should be read in conjunction with the company's annual consolidated financial statements, prepared in accordance with international financial reporting standards (IFRS), and its management's discussion and analysis for the years ended July 31, 2022, and 2021, which can be found under the company's profile on SEDAR.

"I am excited to share our annual results with investors. The company has experienced incredible growth this year, particularly in our platform operating segment which saw a year-over-year increase of over 850 per cent in the total value of contracts signed," stated Peter Evans, chief executive officer of Patriot One. "We are experiencing significant and growing interest in our platform products as venues and businesses continue to focus on the safety and well-being of their patrons and employees. We are confident in our ability to capitalize on this demand and have invested heavily in our ability to satisfy the needs of the market. With the announcement and delivery of SmartGateway, we saw an immediate uptick in demand, with 67 per cent of our bookings for the platform operating segment occurring in the fourth quarter. With this solid foundation, ongoing customer engagement, product validation and the strong team we have built, we are well positioned to accelerate this growth in fiscal 2023."

Company highlights for the year ended July 31, 2022

The following is a summary of the key business highlights for the year ended July 31, 2022:

• Accelerated top-line growth with approximately $3.6-million of revenue recognized during the fiscal year, representing a 235-per-cent increase over the prior year;
• Continued to build the contractual backlog to $2.2-million, with an additional $1.9-million pending installation or successful trials that will be recognized as revenue in future periods;
• Began expansion into the manufacturing market with contracts signed with two United States-based automotive companies for four locations, including a contract with Kia Georgia to provide patron screening solutions for its entire facility to enhance the existing guard service;
• Selected by Oak View Group to protect all entrances at Austin's new world-class live entertainment venue, Moody Center, the new home of the University of Texas's basketball team;
• Selected by Oak View Group to secure the entrances at Central Bank Center's Lexington Opera House and Rupp Arena, the home of the University of Kentucky Wildcats;
• Secured and completed a $1.0-million contract with Canada's Department of National Defence, to further develop an artificial-intelligence-(AI)-enabled full-motion video analytics application;
• Secured a $1.0-million contract with Innovation Solutions Canada to provide AI-based solutions to improve situational awareness for first responders and firefighters;
• Commercially released the next phase of the company's AI-powered threat detection gateway solution with technology enhancements for increased accuracy, flexibility, ease of deployment and practicality for sports and entertainment venues;
• Raised $6.9-million of gross proceeds through the completion of a public offering, providing further capital in support of the company's operations and product deployment;
• Subsequent to year-end, signed a contract to protect all entrances of the SAP Center, home of the National Hockey League's San Jose Sharks, and Tech CU Arena, home of the American Hockey League's San Jose Barracuda;
• Subsequent to the year-end, the company announced that the Oak View Group is introducing new patron screening technology to multiple properties as a result of a new partnership with the company, enabling Oak View Group-owned-and-operated properties to utilize the company's SmartGateway system to enhance the customer experience and increase safety and security; and
• Subsequent to year-end, selected by Oak View Group to protect all entrances of the Angel of the Winds Arena, home of the Western Hockey League's Everett Silvertips.

Fiscal 2022 annual financial results:

• Revenue was $3.6-million for the year ended July 31, 2022, as compared with $1.1-million for the year ended July 31, 2021.
• The backlog of sales commitments not yet recognized as revenue was $2.2-million as of July 31, 2022, as compared with $2.4-million as at July 31, 2021.
• Loss and comprehensive loss was $39.7-million for the year ended July 31, 2022, as compared with $16.6-million for the year ended July 31, 2021. The change in loss pertains primarily to the non-cash impairment of goodwill as a result of changing market conditions, cost of borrowing and risk profile for the technology sector.
• Adjusted loss and comprehensive loss, a non-IFRS (international financial reporting standard) performance measure which excludes a non-routine, non-cash impacting impairment loss relating to goodwill, was $14.1-million for the year ended July 31, 2022, as compared with $16.6-million for the year ended July 31, 2021.
• Basic and diluted loss per share was 26 cents for the year ended July 31, 2022. Excluding the non-routine, non-cash impacting impairment loss relating to goodwill, adjusted basic and diluted loss per share was nine cents, as compared with 11 cents for the year ended July 31, 2021.

Fiscal 2022 fourth quarter financial results:

• Revenue was $800,000 for the fourth quarter ended July 31, 2022, as compared with $300,000 for the same period in 2021.
• Net loss from operations increased from $3.1-million in the fourth quarter ended July 31, 2021, to $31.2-million in the fourth quarter ended July 31, 2022. The increase in net loss pertains primarily to the non-cash goodwill impairment. Excluding the goodwill impairment, the adjusted loss from operations was $5.6-million for the three months ended July 31, 2022.

Conference call details

Patriot One will host a conference call to discuss its annual results on Thursday, Oct. 20, 2022, at 5:30 p.m. EST. Peter Evans, Patriot One chief executive officer and director, and Karen Hersh, chief financial officer, will provide an overview of the annual financial results along with management's outlook for the business, followed by a question-and-answer period.

Investors may register for the live conference call on-line. Participants should dial in at least 10 minutes prior to the start of the call. A recording of the call will be available on the company's website after the conference call concludes.

About Patriot One Technologies Inc.

Patriot One Technologies makes unobtrusive, artificial-intelligence-(AI)-driven weapons and threat detection systems that enable arenas, schools, theaters and other businesses to provide unprecedented safety while also improving the customer experience. The company's AI-powered threat detection gateway solution enables companies to covertly screen for weapons at points of entry without disrupting the flow of traffic, and its AI-based video recognition software enables venue and building operators to identify weapons and other threats inside and outside of facilities, while also providing valuable intelligence for optimizing operations.

We seek Safe Harbor.