Liberty Park Capital Management, LLC, a financial management company, released its third-quarter 2023 investor letter. A copy of the same can be downloaded here. In Q3 2025, Liberty Park Fund returned 1.13% net of fees compared to the Russell 2000’s 12.40%. The fund’s long positions grew by 14.42%, contributing 12.38% on a weight-adjusted basis, while shorts increased by 18.60%, detracting 10.85% on a weight-adjusted basis. The average gross exposure was 142.48%, and the average net exposure was 33.61%.  I ...

Summary of Resideo's Conference Call Company Overview - Resideo is a two-segment business spun off from Honeywell in 2018, operating in the ADI distribution segment and the Products and Security (P&S) segment [3][4] - The ADI segment focuses on low-voltage distribution primarily in the commercial market and includes high-end residential audio-video distribution through the acquisition of Snap One [3][4] - The P&S segment includes well-known brands like First Alert and Honeywell Home, focusing on safety, security, and home infrastructure products [4][5] Recent Developments - Resideo settled a liability with Honeywell for $1.625 billion, converting it into a Term Loan B, which simplifies the financial structure and removes investor confusion [7][11][12] - The company announced plans to spin off the ADI segment to allow both segments to operate independently, enhancing clarity for investors [13][14] - Leadership changes are anticipated, with Rob Aarnes and Tom Surran set to lead the separate entities post-separation [21][22] Financial Performance and Projections - The P&S segment is projected to achieve low to mid-single-digit organic revenue growth with a gross margin of approximately 43%, aiming for a 300-500 basis points increase over the next three to five years [30][31] - The ADI segment is expected to grow mid-single-digit to high-single-digit organically, with current gross margins in the low 20% and a target of 10% adjusted EBITDA margin [31][32] - Both segments are focused on maintaining a near investment-grade leverage profile, targeting a leverage ratio closer to 2X [41][42] Market Conditions and Demand - The housing market remains anemic, impacting demand for products tied to residential construction and remodeling [66][68] - The ADI segment is less affected by residential market conditions, with about 70% of its revenue coming from the commercial market [70] - There is a noted trend in the security market where end-users are upgrading to newer technologies, which could benefit Resideo's product offerings [71] Competitive Landscape - The competitive environment for professional products is stable, with minimal threats from big tech companies, as Resideo focuses on professional installers rather than direct consumer sales [74][75] - The company continues to see opportunities for growth through M&A in adjacent categories, while maintaining a disciplined approach to capital allocation [46][50] Key Takeaways - The separation of the two segments is aimed at allowing each to focus on its unique market opportunities and investor base [34][35] - Both segments are viewed as strong businesses with potential for shareholder value creation [76][77] - An investor day is planned for each company before the spin-off to provide further insights into their operations and strategies [51]

Core Insights - Xtract One Technologies has been selected by Nova Scotia Health to deploy its SmartGateway system for enhanced security and AI-powered weapons detection across healthcare facilities in Nova Scotia [1][2][3] - The initial order consists of 25 SmartGateway systems, aimed at addressing the increasing violence against healthcare workers and ensuring a safe environment for patients and staff [1][2] Company Overview - Xtract One Technologies specializes in AI-driven threat detection and security solutions, focusing on unobtrusive weapons detection systems that enhance safety while providing a seamless experience for users [5] - The company has previously deployed its technology in Manitoba and is expanding its presence in the Canadian healthcare sector [3] Technology and Implementation - SmartGateway utilizes AI-powered sensors for discreet and accurate screening of individuals entering facilities, effectively detecting prohibited items without the need for traditional metal detectors [3][5] - During a trial period in Truro, Nova Scotia, SmartGateway scanned 7,400 individuals and detected 49 prohibited items, primarily pocket knives and box cutters, demonstrating its effectiveness [2][3] Industry Context - The deployment of SmartGateway is part of a broader initiative by Nova Scotia Health, in collaboration with its nurses' union, to modernize security measures and protect healthcare workers from violence [2][3] - The technology aligns with the organization's commitment to providing safe healthcare environments and is seen as a critical step in enhancing overall security [3][6]

Financial Data and Key Metrics Changes - Revenue for Q3 2025 was $9.5 million, a decline of 2% compared to $9.7 million in Q3 2024, while year-to-date revenue increased by 8% [12][13] - Gross margin for Q3 2025 was 67.3%, slightly down from 68% in the previous year [15] - Operating income for Q3 2025 was $1.1 million, down 37% from $1.8 million in Q3 2024, with an operating margin of 12.1% compared to 18.8% in the prior year [16] - EBITDA for Q3 was $1.3 million, down from $2 million in the same quarter last year, with EBITDA margins contracting to 13.9% from 20.7% [17] Business Line Data and Key Metrics Changes - Revenue from core verticals increased by 12% year-over-year and 23% year-to-date, with notable strength in correction and energy verticals [4] - The U.S. market showed strong performance with a 22% increase in revenue for Q3, driven by corrections and energy verticals [7][13] - EMEA revenue declined by 10% in Q3 but increased by 15% year-to-date, while Asia-Pacific experienced a 14% decline due to the phase-out of a customer contract [13][14] Market Data and Key Metrics Changes - North America accounted for 51% of revenue in Q3 2025, up from 43% in the prior year, while EMEA's share decreased to 36% from 39% [15] - The Asia-Pacific region is stabilizing after a decline, with new wins in data centers, utilities, corrections, and logistics [8] Company Strategy and Development Direction - The company is focused on sustainable growth across core and emerging verticals, with investments in technological innovation to enhance competitive strength [4][6] - Strategic initiatives include targeting security for non-critical infrastructure such as hospitals and educational institutions [9][10] - The company aims to broaden its addressable market and deepen customer relationships through cross-selling [10] Management's Comments on Operating Environment and Future Outlook - Management highlighted the importance of adapting to changing market trends and the competitive nature of the security systems industry [3] - The company is committed to innovation and investing in next-generation security solutions to enhance its competitive position [11] - Management refrained from providing specific forward-looking statements but emphasized ongoing efforts to achieve sustainable growth [35][42] Other Important Information - The company has zero debt as of September 30, 2025, with cash and cash equivalents totaling $21.7 million [18] - A one-time government subsidy for an AI development initiative was awarded, validating the company's innovative technology solutions [16] Q&A Session Summary Question: Why did corporate expenses increase significantly? - Corporate expenses rose from $470,000 to $890,000 due to abnormal costs associated with consulting fees [22] Question: What is the company's approach to AI development? - The company is utilizing AI for data analysis from sensors, improving operational efficiency, and supporting the development of new data centers [25] Question: What verticals are most interested in the MultiSensor? - The MultiSensor is being tested across various verticals, including corrections, utilities, and logistics, with increasing interest [30] Question: Is the company expecting strong performance in Q4? - The company did not provide forward-looking statements but indicated that the team is working hard to deliver the best results possible [35] Question: What is the impact of the consulting fees on future growth? - The company hopes that the substantial investment in consulting will translate into future growth [50] Question: Are there specific regions or verticals targeted for growth? - The company aims for global growth by increasing market share in its core verticals and expanding into non-critical infrastructure [54]

Financial Data and Key Metrics Changes - Revenue for the third quarter of 2025 was $9.5 million, a decline of 2% compared to $9.7 million in the same quarter of 2024 [12] - Year-to-date revenue increased by 8%, driven by corrections, rapid gains, and energy, along with growing momentum from utilities and data centers [13] - Gross margin for the third quarter was 67.3%, compared to 68% in the previous year [15] - Operating income for the third quarter was $1.1 million, down 37% from $1.8 million in the prior year [16] - Net income attributed to shareholders was $1 million or $0.04 per share, compared to $1.3 million or $0.06 per share in the same quarter last year [17] Business Line Data and Key Metrics Changes - Revenue from core verticals increased by 12% year-over-year and 23% year-to-date, with notable strength in correction and energy verticals [4] - The U.S. market saw a revenue increase of 22% in the third quarter, driven by demand in corrections and energy verticals [13] - EMEA revenue declined by 10% in the quarter but increased by 15% year-to-date [13] - Asia-Pacific experienced a 14% decline in sales due to the phase-out of a customer contract [14] Market Data and Key Metrics Changes - North America accounted for 51% of revenue in the third quarter, up from 43% in the prior year [15] - EMEA's contribution decreased from 39% to 36%, while APAC's share fell from 14% to 12% [15] - Year-to-date revenue growth in the EMEA region was attributed to transport, utilities, renewable energy, and data center verticals [14] Company Strategy and Development Direction - The company is focused on technological innovation to enhance competitive strength and market share in scalable verticals [6] - Strategic initiatives include targeting security for non-critical infrastructure such as hospitals and educational institutions [9] - The business development team is expanding into new key accounts while deepening existing customer relationships through cross-selling [10] Management's Comments on Operating Environment and Future Outlook - Management emphasized the importance of sustainable growth and profitability, reiterating a commitment to maintaining a gross margin above 60% [10] - The company is actively working to broaden its addressable market and capitalize on opportunities in LATAM [15] - Management refrained from providing forward-looking statements but expressed confidence in the team's efforts to deliver strong results [35][38] Other Important Information - The company has zero debt as of September 30, 2025, with cash and cash equivalents totaling $21.7 million [18] - A one-time government subsidy for an AI development initiative was awarded, validating the company's innovative technology solutions [16] Q&A Session Summary Question: Why did corporate expenses increase significantly? - Corporate expenses rose from $470,000 to $890,000 due to abnormal costs associated with consulting fees [22] Question: What is the company's approach to AI development? - The company is utilizing AI to enhance sensor data analysis, improve operational efficiency, and support the development of new data centers [25] Question: What verticals are most interested in the MultiSensor solution? - The MultiSensor is being tested across various verticals, including utilities and logistics, with increasing interest from critical infrastructure sectors [30] Question: Is the company expecting strong performance in the fourth quarter? - Management did not provide forward-looking statements but indicated that the team is working hard to achieve the best results possible [35] Question: What is the impact of the Asia-Pacific contract phase-out on growth? - Management noted that the phase-out of a significant contract last year has made it challenging to compensate with growth from other verticals [41] Question: Will the consulting fees support future growth? - The company hopes that the substantial investment in consulting will translate into future growth [49]

Financial Data and Key Metrics Changes - Revenue for Q3 2025 was $9.5 million, a decline of 2% compared to $9.7 million in Q3 2024, while year-to-date revenue increased by 8% [12] - Gross margin for Q3 2025 was 67.3%, slightly down from 68% in the previous year [15] - Operating income for Q3 2025 was $1.1 million, down 37% from $1.8 million in Q3 2024, with an operating margin of 12.1% compared to 18.8% in the prior year [16] - Net income attributed to shareholders was $1.04 per share, compared to $1.3 million or $0.06 per share in the same quarter last year [17] Business Line Data and Key Metrics Changes - Revenue from core verticals increased by 12% year-over-year and 23% year-to-date, with notable strength in correction and energy verticals [4] - The company is focusing on repeatable deployments and scalable account growth, experiencing increasing market demands for advanced solutions [5] Market Data and Key Metrics Changes - North America accounted for 51% of revenue in Q3 2025, up from 43% in the prior year, with revenue increasing by 17% in Q3 2025 [15] - The U.S. market saw a 22% increase in revenue year-over-year, driven by demand in corrections and energy verticals [12] - EMEA revenue declined by 10% in Q3 but increased by 15% year-to-date, while APAC experienced a 14% decline due to a phased-out customer contract [12][13] Company Strategy and Development Direction - The company is committed to innovation and investing in next-generation security solutions to enhance competitive positioning [11] - Strategic initiatives include targeting security for non-critical infrastructure such as hospitals and educational institutions [9] - The focus remains on expanding market presence and strengthening competitiveness in core verticals while maintaining a gross margin above 60% [10] Management's Comments on Operating Environment and Future Outlook - Management highlighted the importance of technological innovation and operational leverage in driving profitability and market share [6] - The company is optimistic about capturing new opportunities in the EMEA region and stabilizing growth in APAC [8] - Management refrained from providing specific forward-looking statements but emphasized ongoing efforts to achieve sustainable growth [39] Other Important Information - The company has zero debt as of September 30, 2025, with cash and cash equivalents totaling $21.7 million [18] - A one-time government subsidy for an AI development initiative was awarded, validating the company's innovative technology solutions [16] Q&A Session Summary Question: What caused the significant jump in corporate expenses? - Corporate expenses increased due to abnormal costs associated with consulting fees [22] Question: How is the company leveraging AI in its operations? - AI is being used to enhance sensor data analysis, improve operational efficiency, and support the development of new data centers [25][26] Question: What verticals are most interested in the MultiSensor solution? - The MultiSensor is being tested across various verticals, including corrections, utilities, and logistics, with growing interest [30] Question: What is the expected growth rate going forward? - The company is striving for a 10% organic growth rate but did not provide specific forward-looking statements [39] Question: Will the consulting fees support future growth? - The company hopes that the investment in consulting will translate into future growth [40] Question: Are there specific regions or verticals targeted for growth? - The company aims to grow globally by increasing market share in its core verticals and expanding into non-critical infrastructure [42]

Core Viewpoint - Xtract One Technologies Inc. has successfully completed a public offering, raising a total of $11,500,575 through the issuance of 15,334,100 units at a price of $0.75 per unit, including the full exercise of the over-allotment option [2][3]. Group 1: Offering Details - The offering consisted of 15,334,100 units, each comprising one common share and one-half of a common share purchase warrant, with the total gross proceeds amounting to $11,500,575 [3]. - Each warrant is exercisable into one common share until November 10, 2028, at an exercise price of $0.95 [3]. - The underwriters received a cash fee of $690,034.50 and 920,046 common share purchase warrants, which are exercisable at $0.75 until November 10, 2028 [4]. Group 2: Use of Proceeds - The proceeds from the offering will be utilized for working capital and general corporate purposes [4]. Group 3: Company Overview - Xtract One Technologies is a technology-driven provider of threat detection and security solutions, utilizing AI to enhance safety and improve user experiences [6]. - The company specializes in unobtrusive weapons and threat detection systems designed for various sectors, including schools, hospitals, and stadiums, aiming to deliver high security while maintaining a seamless flow of traffic [6].

Core Insights - Liberty Defense Holdings Ltd. has announced a new contract for the deployment of its HEXWAVE™ system in Bogotá, Colombia, marking an expansion of its international presence [1][3] - The HEXWAVE system will enhance security at a major arena in Bogotá, which has seen an increase in violent incidents involving non-metallic threats [2][4] - The partnership with DASI Electronics S.A.S. aims to leverage advanced AI-powered detection technology to improve safety while maintaining a seamless visitor experience [2][3] Company Overview - Liberty Defense specializes in AI-based detection solutions for concealed weapons and threats, providing multi-technology security solutions for high-traffic areas [5] - The HEXWAVE product is based on exclusive technology licensed from the Massachusetts Institute of Technology (MIT) and offers modular, scalable protection against both metallic and non-metallic weapons [5] - The company is committed to enhancing community safety through superior security detection solutions and is exploring further opportunities for HEXWAVE deployment in high-security environments [3][4]

Core Insights - Zentra, a brand of Allegion US, is the first to integrate resident key capabilities into Google Wallet, allowing residents to unlock their apartments using their Android devices or Wear OS smartwatches [1][2]. Group 1: Product Innovation - The introduction of the resident key in Google Wallet enhances the access experience for multifamily communities, providing a seamless and secure solution for residents [2][3]. - This innovation simplifies daily life for residents and aids property managers in creating a premium living experience, aligning with modern renter expectations [3]. Group 2: Benefits and Operational Efficiency - Residents can unlock community access points by simply tapping their Android devices, which streamlines movement throughout the multifamily property [4]. - The integration of resident key in Google Wallet contributes to a luxury experience for residents while reducing operational costs associated with physical keys or fobs, leading to increased net operating income (NOI) for properties [5]. Group 3: Future Developments - Allegion aims to redefine access control for multifamily properties with the resident key in Google Wallet, focusing on creating smarter and safer communities that meet modern living demands [6]. - The solution is compatible with various Schlage products, including the Schlage XE360 Series and Schlage Control Smart Lock, enhancing its applicability in the market [6].

Core Insights - Liberty Park Fund, LP's value increased by 1.13% in Q3 2025, underperforming the Russell 2000's 12.40% increase, with long positions contributing positively and shorts detracting significantly [2][4][21] - Liberty Park Select Opportunities, LP's value increased by 14.27% in the same period, indicating a strong performance in its investment strategy [3][21] - The Federal Reserve's interest rate cuts are expected to stimulate the economy, but have also inflated a bubble in speculative stocks, reminiscent of the dot-com bubble [4][10] Performance Analysis - Long positions saw a 14.42% increase, contributing 12.38% on a weight-adjusted basis, while shorts increased by 18.60%, detracting 10.85% [2][4] - The gross exposure for Liberty Park Fund averaged 142.48%, while net exposure averaged 33.61% [2][21] - Gross Pure Alpha for the quarter was -3.11%, indicating challenges in stock selection [2] Long Performance - Best-performing long positions included Xometry Inc (61.20% return), BK Technologies Corp (79.25% return), and Napco Security Technologies (45.13% return) [5] - Worst-performing long positions included Limbach Holdings Inc (-30.68% return), DMC Global Inc (-20.84% return), and Whirlpool Corp (-24.49% return) [6] Short Performance - The short portfolio faced significant pressure, with seven companies accounting for over half of the negative contribution, surging an average of 170% without fundamental changes [7] - These companies collectively have a market cap of $100 billion, reflecting unrealistic valuations based on 2026 revenue estimates [7] Portfolio Outlook - The investment environment is complex, with interest rate cuts expected to boost consumption while speculation in certain sectors has risen dramatically [10] - The fund's strategy is to remain invested in real economy, non-bubble names while being short on profitless hype [11] Adaptation and Strategy - The fund is considering single-name equity shorts as a core competency, but currently finds few attractive traditional economy shorts [12] - Options have been introduced for risk management, including long call and put positions to hedge against potential market corrections [13][14] Communication Changes - The fund will no longer disclose top positions or highlight individual investments in quarterly communications to protect proprietary research and focus on new initiatives [15][17]