Living in a More Dangerous World.
At Trendpost, the goal has always been to look for early trends and opportunity angles. One trend that’s impossible to ignore right now is the rise in violent crime. Part of this, I believe, comes down to population. The world has never had this many people sharing the same space, and when more people are packed together, friction rises — and with it, conflict and violence.
Across North America, violent crime is now in the headlines almost daily: carjackings, stabbings, random assaults, and organized theft that too often turns violent. Ordinary people, going about ordinary lives, are increasingly exposed to danger.
And it’s not just a North American problem. Europe has seen knife attacks in public places, violent assaults in major cities, and unrest spilling into the streets. Even countries once considered safe are now confronting rising crime. The trend feels global — no region is immune.
With the assassination of Charlie Kirk, it has become impossible to ignore the danger. A public figure shot while speaking on stage at a university isn’t just another headline — it’s proof of where the real risk lies. Crowds, whether at schools, stadiums, or concert halls, are no longer just gatherings of people. They’ve become targets.
The hard truth is this: violence isn’t fading. It’s spreading. And law enforcement alone can’t keep up. That’s why more companies, schools, and public venues are turning their attention to prevention — especially in places where large crowds gather. Crowd security has become the new frontline. And that’s where I want to focus this month, by looking at a company building technology designed specifically for this challenge.
Built for the Real World
This company doesn’t make weapons or armored trucks. What it builds are security screening gateways. At first glance, they look like simple pillars placed at the entrance of a school, stadium, or concert hall. But inside are advanced sensors and AI that can quietly detect guns, knives, or other weapons before they ever get inside.
Currently, at places with large crowds — stadiums, concerts, or airports — people are used to standing in long lines while guards check bags one by one or wave metal-detecting wands. It’s slow, frustrating, and often ineffective. These gateways change that. Instead of stopping, people keep moving. The system works silently in the background, and if something dangerous is detected, security staff are alerted instantly. Thousands of people can flow through quickly without ever noticing the technology at work.
Schools are another obvious use. Hundreds of students carrying backpacks and laptops walk in every morning. Old-fashioned metal detectors would flag almost everything, creating chaos. These systems are smarter. They ignore the noise and only react when there’s a real threat.
Hospitals are adopting them too. Staff assaults have been rising, but hospitals can’t turn themselves into fortresses. They need to stay welcoming. With gateways at entrances, staff and patients feel safer without patients feeling intimidated. The same goes for casinos, convention centers, and other public spaces where thousands of people pass through daily.
Proof in the Real World
And adoption isn’t some far-off dream — it’s happening now. Look at what the recent anouncements in the past few months:
That’s schools, universities, healthcare, convention centers, and entertainment — in just a few months. To me, that momentum says two things: first, the tech works; and second, credibility is building fast. In security, every successful deployment makes the next sale easier.
Inside the Business
The company behind all of this is Xtract One Technologies (TSX: XTRA, OTCQX: XTRAF). Based in Toronto, it has carved out a niche in AI-powered threat detection, building tools designed to keep crowds safe without slowing them down.
Here is the lineup:
Together, these products form a complete ecosystem: hardware that blends into the background, and software that gives managers full control. It’s security that doesn’t just detect threats — it makes the whole process smoother, cheaper, and less intrusive.
I see it as a “picks and shovels” play for modern security. The demand is already here. The real question is whether Xtract One can scale fast enough to capture it.
Back in May, I picked up shares at $0.40. Today, they’re trading north of $0.75. Momentum has built quickly — the stock more than doubled in just two months, moving from $0.35 in August to above $0.75. That kind of move doesn’t happen by accident. Investors are waking up to the reality that rising crime means rising demand for security — and Xtract One is right in the middle of that trend.
The Financial Picture
This is still a small company. With about 218 million shares outstanding, trading around $0.65–$0.70, Xtract One sits at a market cap near $140–150 million CAD. For investors, that means volatility. But it also means opportunity.
Revenue for the first nine months of fiscal 2025 was $10.5 million, about flat compared to last year. On the surface, that doesn’t sound impressive. But what caught my eye was the backlog: $15.4 million in contracted sales plus another $21 million in signed deals waiting for installation. That pipeline is more than triple the company’s trailing revenue.
Margins are strong — gross margin sits around 64%, which is high for a business that mixes hardware and software. Losses are still here (net loss of $8.4 million year-to-date), but that’s the cost of growth. They’re spending on sales and development to secure market share.
The balance sheet shows $1.9 million in cash at the end of April, down from $8.6 million at the start of the year. Importantly, the company has no traditional bank debt. Most liabilities are deferred revenue — meaning customers are paying upfront. That’s a healthy sign, even if cash management will remain a critical challenge.
Annual Financial Information
| In CAD$ | 2021 | 2022 | 2023 | 2024 |
|---|---|---|---|---|
| Sales | $1.1M | $3.6M | $4.1M | $16.4M |
| Gross margin | 97% | 79% | 52% | 62% |
| Net Income | ($16.6M) | ($39.7M) | ($16.3M) | ($11.1M) |
| Shares Outstanding | 151M | 156M | 177M | 204M |
| Cash | $9.7M | $6.3M | $8.3M | $8.6M |
| Total liabilities | $2.6M | $3.5M | $4.3M | $11M |
| Free cash flows | ($12.2M) | ($9.4M) | ($13.6M) | ($8.1M) |
| Current Ratio | 7.8 | 3.2 | 3.2 | 2.3 |
| Current ratio | 2.8 | 2.9 | 1.9 | 1.3 |