KWESST (TSX-V:KWE, OTCQB:KWEMF) Micro Systems Inc, the tech group, which provides solutions to the military, told investors it was making progress on all fronts and that its sales opportunity pipeline for its Android Team Awareness Kit (ATAK) integration services stood at more than US$40M and was growing.
"These opportunities are with major end-users in NATO countries and with Tier 1 and Tier 2 global defense contractors," said Jeff MacLeod, CEO at KWESST (TSX-V:KWE, OTCQB:KWEMF), in a corporate update, alongside the firm filing its third quarter fiscal results.
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"We expect these to result in initial contracts and teaming agreements starting in Q1 of fiscal 2022, with more to follow through 2022 and extending to 2023, 2024 and beyond," he added.
On its non-lethal Low Energy Cartridge (LEC) system, the company said the first, high-priority versions are for personal protection and law enforcement and will be available later this year, followed by an official commercial launch at the 2022 SHOT Show in Las Vegas, USA on January 18-23.
"We are working with end-users and influencers in the industry who have provided helpful and very encouraging initial feedback," said MacLeod.
The company noted it was seeing "accelerated interest" in its Phantom electronic decoy following a successful demonstration to US Special Operations Command (USSOCOM) in June this year and was currently producing upgraded units to be used as demonstration samples.
"KWESST is also working with DoD and another NATO country on upgraded capability for the GreyGhost counter-drone system to deal with next-generation drone threats and has commenced engagement with major defense contractors on potential partnerships," it added.
As reported earlier in August, KWESST had received notice from Innovation Solutions Canada (ISC) that it had qualified for up to $1.5 million of non-dilutive funding to advance its counter-UAS technology, its Phantom electronic decoy and its Tactical Awareness and Situational Control System (TASCS) Indirect Fire Module (IFM) system currently under contract with a key U.S. military customer.
"The last phase of our current TASCS IFM contract for this U.S. military customer is scheduled for completion this October," said MacLeod, who added, "We are currently in discussions with this customer regarding next phases of procurement. We are also submitting proposals to other NATO customers with similar requirements," MacLeod told investors.
On partnerships, the company boss added: "It is a key part of our go-to-market plan to partner with global defense prime and major sub-contractors. We announced a handful of such partnerships early on. The past few months have been especially active in progressing discussions with several others on all fronts, which is expected to result in announcements in the coming weeks and months."
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