KWESST Micro Systems
Military Tech Innovator Making “Dumb Technology” Smart in the $14 Billion Soldier Systems Market
Sponsored – Est. 8 Min Read
News Update: news content
KWESST Micro Systems is a leader in advancing the modern networked capability of soldiers and responders. This includes the usage of niche applications that make critical differences to the safety and effectiveness of the networked Soldier Systems mission of NATO and its allies KWESST has developed solutions with proprietary technologies that add “intelligence” to otherwise existing “dumb” tactical systems used by soldiers.
- Spending on global defense hit a 10-year high of $1.917 trillion in 2019. The U.S. spent around 38% of that amount- $732 billion (Source 1)
- With numerous commitments and operations, military budgets could increase-especially for “smarter technology”
- KWESST offers game-changing technology that adds “intelligence” to “dumb” tactical systems
- KWESST is a leader in the $14 billion soldier systems market
- KWESST is significantly undervalued as compared to its major competitors
- KWESST is believed to have just applied to list on the OTCQB Venture Market (OTCQB)
With instability and unrest mounting in the world, global defense spending potentially is on the rise.
As noted by Defense News, according to an annual report by the Stockholm International Peace Research Institute (SIPRI), defense spending shot to a 10-year high of $1.917 trillion in 2019. The U.S. spent $732 billion that year- good for around 38% of that figure. Compared to the U.S., China spent $261 billion, India spent $71.1 billion, and Russia spent up to $65.1 billion. (Source 1)
“Global military expenditure was 7.2 percent higher in 2019 than it was in 2010, showing a trend that military spending growth has accelerated in recent years,” SIPRI’s Nan Tian said. “This is the highest level of spending since the 2008 global financial crisis and probably represents a peak in expenditure.” (Source 1)
With military spending likely to increase even more in the future, potentially lucrative market opportunities are being created- such as KWESST Micro Systems (NASDAQ: KWE) (NASDAQ: KWESW) (TSXV: KWE).
Why Does the U.S. Spend So Much on Defense?”
With a good deal of global instability and uncertainty, the U.S appears to have no other choice.
First of all, with mounting threats from adversaries such as China, Russia, Iran, and North Korea, the U.S. needs to keep their strength and qualitative edge.
Second of all, the U.S. has numerous security commitments with allies such as Taiwan, Israel, Saudi Arabia, Iraq, Afghanistan, and the United Arab Emirates. Because of the U.S.’s multiple interests worldwide, it often finds itself involved in unpredictable military situations.
KWESST Micro Systems- Aiming to Solve a Critical Issue For Soldiers
Soldiers in combat missions are required to carry a great deal of devices and mechanisms that provide crucial tools for situational awareness.
This is where KWESST Micro Systems (NASDAQ: KWE) (NASDAQ: KWESW) (TSXV: KWE) comes into play
- KWESST has developed solutions with proprietary technologies that add “intelligence” to otherwise existing “dumb” tactical systems used by soldiers. (Source 2)
- KWESST’s technology is believed to reduce the existing size of large surveillance and targeting systems found on ships, planes and armored vehicles, to the size of a fingernail. (Source 2)
- KWESST turns traditional ground weapons, tactical surveillance drones and counter-drone systems, into “smart” systems that extend operational capabilities while keeping soldiers at a safe distance from adversaries or unknown threats. (Source 2)
- KWESST is leveraging its core technologies to bring to market spiral offerings of “smart” solutions with even more capabilities. (Source 2)
- KWEEST’s business model generates revenues from product sales augmented by recurring annual license fees. (Source 2)
KWESST’s Diverse Product Line Could be Game-Changing for Ground Forces
KWESST has a diversified product line, including its proprietary “MISST” system- or Micro Integrated Systems and Software Technology.
MISST helps with the ultra-miniaturization and integration of sensors, software, micro-optics, ballistic algorithms, machine learning, and A.I. With this MISST system, KWESST enables intelligent networked systems for real-time situational awareness and targeting for soldiers and their assets.
In short, because of KWESST’s innovations, critical military equipment can now be miniaturized to the size of a fingernail.
KWESST’s Tactical and Situational Control System (TASCS) also streams real-time awareness and targeting information directly to a soldier’s smart device and weapon. In doing so, KWESST is also helping to improve the networked capability of soldiers, with TASCS providing accurate information on enemy targets- including those behind cover.
These other products in KWESST Micro Systems’ pipeline are quite impressive as well:
- Drone missile
Can counter the threat of adversarial small drones. KWESST’s drones can also be guided or fully autonomous, while identifying and locking in on rogue drones to track, hunt, and neutralize with kinetic impact. AI is also used to calculate optimal attack vectors with high impact speed.
- Ground Laser Defense System
This counters the emerging threat of ground laser weapons that can blind military personnel.
- Electronic Decoys
These protect ground forces from electronic detection. They deflect and mask friendly force Electro Magnetic (EM) signatures with numerous false phantom signatures. These decoys trick adversaries into coming out of hiding, slow their targeting of friendly forces, and cause enemy forces to commit and waste their arsenal on phantom targets. These decoys also emulate the voice, video, data and text signatures of NATO forces. They address next-generation NATO requirements and provide simultaneous waveform generation across all communication systems.
- Shot Counter
This works as an “odometer” for firearms. It tracks the number and type of shots fired, as well as degradation effects over time. The shot counter can also help in dramatically reducing the life cycle maintenance costs of firearms.
KWESST’s Diverse Product Line Could be Game-Changing for Ground Forces
As you can see in the chart below, the market is severely undervaluing KWESST compared to its peers. However, as its technology is adopted, that could potentially change.
For example, the company recently completed the second phase of a TASCS contract with a key U.S. military customer.
The results of phase 1 and 2 trials, now being summarized into a phase 3 report, also confirm that the TASCS IFM achieves greater accuracy and faster response times on indirect fire systems such as mortars. This is especially important for improving soldier survivability and operational effectiveness. (Source 3)
“We’re encouraged that the results and user feedback from these live-fire exercises have further increased customer confidence in the TASCS system,” said Jeff MacLeod, KWESST founder and CEO. MacLeod further added, “We’re pleased at the rapid pace as well as the outcome of these exercises, especially with such a key U.S. military customer, who has now requested a proposal from the company for a next phase of expanded exercises to start in early 2021.”
In addition, KWESST’s electronic decoy patent just received a Notice of Allowance from the U.S. Patent Office. “This marks an important addition to KWESST’s technology portfolio,” added MacLeod. “The allowed claims cover both the miniaturized device itself and methods of deploying it, which we believe constitute significant protection of the invention.” (Source 4)
Strong Leadership, Strong Results – KWESST Micro Systems (NASDAQ: KWE) (NASDAQ: KWESW) (TSXV: KWE)
One of the top traits of a successful company is a strong management team, which is present at KWESST Micro Systems (NASDAQ: KWE) (NASDAQ: KWESW) (TSXV: KWE).
David E. Luxton, Executive Chairman
David is a recognized entrepreneur in the defense and security industry. He was formerly an infantry officer and senior official with the Canadian and British governments before leading the global build-out of successive defense and security companies, including Simunition, the world leader in simulated munitions for close-quarters combat training. He led the build-out of Allen- Vanguard, which became a world leader in Counter-IED solutions, where he remains Chairman. He is also former Chairman of United Tactical Systems, a world leader in non-lethal munitions systems.
John McCoach, incoming director
John McCoach retired from full time employment in 2016. At that time he was President, TSX Venture Exchange; a role he held for seven years. John is a director of the Capital Markets Authority Implementation Organization. CMAIO is tasked by The Government of Canada, six provinces and one territory to create a pan Canadian securities commission. He is also the Lead Director, Liberty Defense Holding Ltd. John was a director, and Interim CEO, of Nautilus Minerals Inc. John is also a director of the Royal Canadian Marine Search and Rescue.
Steven Archambault, CFO
Mr. Archambault began his career as a CPA, CA, with Ernst & Young LLP, followed by senior finance positions at AXIS Capital, a global insurer and reinsurer, and more recently had CFO roles with small-cap public Canadian companies listed on the TSX Venture Exchange and Canadian Securities Exchange in media broadcasting technology and health and wellness industries.
Paul Mangano, incoming director
Paul is a thirty-four-year veteran of the high-tech sector. He has an MBA in High Technology from Northeastern University and a BA in Economics from Harvard. In 2015, he established Surculus Advisors, a management advisory firm providing strategic advice and leadership to SME companies in the high-tech sector including aerospace and defense. Prior to forming Surculus Advisors, Paul was a Division President at L-3 Communications (NYSE: LLL).
He is former President and Chief Operating Officer of Proterion Corporation.
Paul Fortin, incoming director
Paul has held senior business development positions within two of Canada’s largest law firms – Gowlings WLG and more recently Borden Ladner Gervais LLP where he was responsible for the firm’s defense and security as well as international expansion strategies which encompassed Asia Pacific, United Kingdom, and the United States. His network includes exceptionally strong ties to the defense community and diplomatic defense attaché network, notably with the USA (Air Force, Army, Navy, USMC) , 5 Eyes, Korean, Ukrainian, Israeli and NATO and Middle Eastern (Gulf States).
Warren Downing, Director, Innovation
Warren spent fifteen years in the Royal Australian Air Force. He then transitioned to industry, building on his military experience and spent more than twenty years in senior Systems Engineering and Program Management roles with major defense companies such as CAE Inc., Lockheed Martin, General Dynamics, DRS Technologies and Colt Canada. At KWESST he leads the technical innovation team of senior engineers.
Jeff Dunn, U.S. Market Development
Jeff is former COO of ARTEMIS, Inc., the Naval Service Lead for Rapid Prototyping at Booz Allen Hamilton, and Director Strategic Development at General Atomics Aeronautical Systems. Military service awards include a Bronze Star, a Meritorious Service Medal, a Navy & Marine Corps Commendation Medal and several Navy & Marine Corps Achievement Medals. Jeff spent 20 years as a U.S. Marine AV-8B Harrier pilot & mission commander.
The Top Reasons to Consider KWESST Micro Systems (TSXV:KWE)(OTC:KWEMF)
Spending on global defense hit a 10-year high of $1.917 trillion in 2019. The U.S. spent around 38% of that amount- $732 billion (Source 1)
With numerous commitments and operations, military budgets could increase-especially for “smarter technology”
KWESST offers game-changing technology that adds “intelligence” to “dumb” tactical systems
KWESST is a leader in the $14 billion soldier systems market
KWESST is significantly undervalued as compared to its major competitors
KWESST is believed to have just applied to list on the OTCQB Venture Market (OTCQB)
Resources
Source 1: https://www.defensenews.com/global/2020/04/27/global-defense-spending-sees-biggest-spike-in-a-decade/
Source 2: https://kwesst.com/wp-content/uploads/2020/09/KWESST-INVESTOR-PRESENTATION-FOR-WEB-SITE-ON-GOING-PUBLIC.pdf
Source 3: https://kwesst.com/news/kwesst-completes-second-phase-of-tascs-contract-for-key-u-s-military-customer/
Source 4: https://kwesst.com/news/kwesst-electronic-decoy-patent-receives-notice-of-allowance-from-u-s-patent-office/
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