The need for enhanced public security is becoming apparent, as mass shootings have been on the rise. Since 2015, there have been more than 350 mass shootings per year in North America, increasing to a horrific 426 in 2018—which the BBC dubbed the ‘worst year for US school shootings’. Demand for increased security is pushing innovation from all types of high-tech security firms, including ShotSpotter Inc. (NASDAQ:SSTI), Booz Allen Hamilton Holding Corporation (NYSE:BAH), OSI Systems, Inc. (NASDAQ:OSIS), Patriot One Technologies. (OTC:PTOTF) (TSX.V:PAT), and the newly public Liberty Defense Technologies (TSX.V:SCAN).
While adding staff and training to personnel on the ground helps, detecting and stopping a threat before danger occurs is crucial when every second matters. This is where solutions being proposed by developer Liberty Defense Technologies (TSX.V:SCAN) are attracting interest with their exclusive license and technology transfer agreement with MIT Lincoln Laboratory for the technology behind Liberty’s HEXWAVETM product—a rapid scanning technology designed to detect threats as early as possible.
According to a report from the Homeland Security Research Corp., the market size for weapons detection systems is expected to grow to USD $11 billion by 2025. The need for innovation is amplified by the reality of how slow and cumbersome most of today’s security detection systems are in public places.
This is where the HEXWAVETM system from Liberty Defense Technologies (TSX.V:SCAN) excels. The state-of-the art threat detection technology is now being rolled out by Liberty Defense’s team of industry experts, and are well supported by an advisory board that provides additional market reach through their roles with prominent parties within FIFA and the NHL.
CHASING URBAN VERTICAL MARKETS
According to the Homeland Security Research Corp. study, the global explosives and weapons systems market is projected to be more than $8 billion by 2020 and exceed $11 billion by 2025.
Liberty Defense Technologies (TSX.V:SCAN) is using a 4-tier approach to target urban security vertical markets, which have been projected to reach $1.5-$2.0B in North America by 2020.
Projections for each component of their strategy include: Public Venues ($283-$428M, CAGR to 8.8%); Secured Perimeters ($820M-$1.03B, CAGR to 4.7%); Land Transportation ($174-$257M, CAGR to 8.2%); Other/Schools/Hotels ($201-$228M, CAGR to 2.7%).
Now that the security firm is publicly trading, Liberty Defense Technologies (TSX.V:SCAN) is looking to roll-out its plan, having successfully raised CAD$7 million associated with their recent RTO. Expanding the footprint of HEXWAVETM systems into high-traffic venues around the world is the plan between 2019-2020.
Getting the technology into prominent buildings will require contracts built upon trust. Influencing the company along the way are three advisors with notable pedigrees with sports and entertainment, including the owner of the Vancouver Canucks NHL hockey team (and its Rogers Arena stadium), Francesco Aquilini.
Joining the Vancouver real estate mogul is FIFA Vice President, and President of Concacaf (soccer governing body for North and Central America), Victor Montagliani, and former member of Live Nation Canada, John May, whose career has revolved around large event promotion.
Having connections to sporting stadiums and concert venues could be seen as a significant advantage as the company looks to get HEXWAVETM installed in as many places as possible, to keep patrons safe.
The company expects to deploy Beta Test units in 2019, and plans to move into production by mid-2020.
POWERED BY AI AND REAL-TIME 3D IMAGES
The HEXWAVETM system uses a form of lower pow radar energy, to help create 3D images in real-time. This capability allows security agents to detect weapons concealed under clothing, or inside handbags and backpacks.
Done in an active manner, the HEXWAVETM process projects radio signals that reflect off of metallic and non-metallic concealed objects, which work to produce 3D radar images instantly in real-time. By capturing rich information gathered by the 3D images, the system can determine the size, shape, and depth of an item, and most importantly its threat level.
The technology’s modular design is scalable to any location, helping clients and buyers meet their varied needs, which include number of entry points, throughput rates, and aesthetic design.
Key to the system’s unique design is its enhancement from artificial intelligence (AI). As HEXWAVETM collects more and more data, the system’s built-in machine learning capabilities make the system even more effective with each and every patron that crosses its threshold. Individual units will not collect data, so this is an overstatement—the AI behind HEXWAVE will be constantly updated as the AI learns more and more items.
The key to the AI is that it actually learns what to look for in determining a threat rather than looking up a pre-determined image. This is much like how an infant gradually learns what is or isn’t a bottle. Rather than being taught the millions of different types of bottles available, children learn to recognize the characteristics of a bottle to help identify when the object they see is a bottle.
HEXWAVETM sensors can also be discreetly concealed from sight. This benefit is appealing to places such as resorts and casinos, where image and design matters more. Sensors will be hidden within walls, or even built discreetly into the design of nearly any entry point—all while maintaining the client’s desired aesthetics.
Overall safety is heightened through a system of layered defense, that offers security teams a greater depth of detection range. From the moment of detection to an alert signal, location security crews can be given sufficient stand-off time in order to thwart threats before it’s too late.
FURTHER SECURITY DEVELOPMENTS
ShotSpotter Inc. (NASDAQ:SSTI)
ShotSpotter enhances security in large spaces by rapidly scanning large amounts of audio data. The security firm offers gunfire alerts and detectors, location alerts, location analysis and protection services to first responders, helping them thwart the danger faster. In the company’s latest National Gunfire Index for 2018 (the most comprehensive study to capture, analyze, and report on gunfire incidents annually), ShotSpotter detected more than 107,000 total gunfire incidents across the US in 2018. ShotSpotter has amassed the world’s largest audio database of gunshots, and sounds that are similar to gunshots, with more than 12 million incidents reviewed.
Booz Allen Hamilton Holding Corporation (NYSE:BAH)
Booz Allen Hamilton is predominantly focused on providing cybersecurity, rather than physical public security. One of its best services is to use AI-powered rapid scanning of emails for possible terrorist activity. Last August the firm secured a $1 billion cybersecurity contract with the US Department of Homeland Security (DHS)—becoming responsible for securing nearly 80% of the .gov enterprise. The company also signed a $495 million IDIQ contract to conquer tough technical challenges with the US Department of Defense earlier in 2018.
OSI Systems, Inc. (NASDAQ:OSIS)
Best known for its inspections systems at airports, OSI recently announced it had been awarded a contract worth approximately $4 million by an international airport to provide multiple units of its Itemiser 4DX explosives and narcotics detection system, along with follow-on services and spare parts support. OSI is one of two FAA approved scanning companies, which gives the firm a solid competitive edge. Earlier this year, OSI received a 10-year contract for Cargo Turnkey Screening in Guatemala, and a $11 million order for RTT hold baggage screening systems. As well, the company opened 2019 with a $12 million contract from NATO Support and Procurement Agency (NSPA), where it’ll operate and continue service of the Rapiscan Systems and AS&E cargo, vehicle, parcel, and personnel explosive and contraband detection systems.
Patriot One Technologies. (OTC:PTOTF) (TSX.V:PAT)
With its radar technologies that detect concealed weapons, Patriot One Technologies recently partnered with Cisco, and raised $46 million in equity. The PATSCAN CMR primary scanning system detects on-body concealed weapons at access points of weapons-restricted buildings and facilities. The cognitive microwave radar powered system can combat active shooter threats before they occur, when set up in public and private entrance points, and entrances to mobile environments.
Disclaimer: Nothing in this article should be considered as personalized financial advice. We are not licensed under securities laws to address your particular financial situation. No communication by our employees to you should be deemed as personalized financial advice. Please consult a licensed financial advisor before making any investment decision. This is a paid advertisement and is neither an offer nor recommendation to buy or sell any security. We hold no investment licenses and are thus neither licensed nor qualified to provide investment advice. The content in this article is not provided to any individual with a view toward their individual circumstances. Baystreet.ca has been paid a fee of eight thousand dollars by Liberty Defense Technologies for advertising. This compensation constitutes a conflict of interest as to our ability to remain objective in our communication regarding the profiled company. Because of this conflict, individuals are strongly encouraged to not use this article as the basis for any investment decision. While all information is believed to be reliable, it is not guaranteed by us to be accurate. Individuals should assume that all information contained in this article is not trustworthy unless verified by their own independent research. Also, because events and circumstances frequently do not occur as expected, there will likely be differences between any predictions and actual results. Always consult a licensed investment professional before making any investment decision. Be extremely careful, investing in securities carries a high degree of risk; you may likely lose some or all of the investment.
