Defsec Technologies Inc. · TSXV:DFSC
Defsec Technologies — KWESST Micro Systems — Investor Presentation (April 2024)
26 slides from Defsec Technologies's investor presentation, Apr 18, 2024
Slide 1: Next-Generation Technologies for Military and Public Safety Missions
NEXT-GENERATION TECHNOLOGIES FOR MILITARY AND PUBLIC SAFETY MISSIONS 18 APRIL 2024 NASDAQ & TSXV: NASDAQ & TSX.V: KWE KWE KWESSTKWESST MicroInc. Systems Inc. Proprietary Information | October 2023
Slide 2: Disclaimer
DISCLAIMER Non-Reliance financial history, including a history of losses, the early stage of the business, operating in an industry populated with This presentation does not provide full disclosure of all material facts relating to KWESST Micro Systems Inc, or its significantly larger competitors, d
Slide 3: In Brief
IN BRIEF Our mission We’re committed to building long-term sustainable value by commercializing proprietary technologies aligned with the modernization of NATO and partner nations and public safety agencies around the world to advance safety, survivability and effectiveness. Defense Focus Public Saf
Slide 4: Introduction
INTRODUCTION Leadership Ahead We are a team of accomplished industry We’re on our way, with technologies that executives with a track record of previous have attracted strategic industry partners notable private and public company and with first pathfinding sales in North ventures that commercialize
Slide 5: Leadership
LEADERSHIP David E. Luxton Sean Homuth Executive Chairman President and Chief Executive Officer David Luxton is a recognized entrepreneur in the defense and security industry. He was an infantry Sean Homuth is a senior financial executive with more than 20 years of experience working with officer an
Slide 6: Digitization
LEVERAGING OUR CORE TECHNOLOGIES AND CAPABILITIES MILITARY MARKET PUBLIC SAFETY MARKET ATAK-enabled KWESST products OEM products TAK-enabled KWESST products OEM products PRODUCTS Fire control Laser detection Electronic war Drones & other assets SaaS situational awareness offering as a service Observ
Slide 7: Non-Lethal Munitions Products – ARWEN
NON-LETHAL MUNITIONS PRODUCTS – ARWENTM ARWEN 37mm Acquisition and Potential Break-Out Strategy with 40mm Acquired December 2021. Long-established product line with 40-year heritage. Used for public order and high-risk arrests by tactical teams. Media coverage of safe conclusion to incidents
Slide 8: And, a New, Non-Lethal Munitions System – PARA OPS
AND, A NEW, NON-LETHAL MUNITIONS SYSTEM – PARA OPSTM Application to All Non-lethal Missions Public order operations, prison cell extractions, subjugation of suspects, dangerous animal control, high-risk arrests, personal and home defense Breakthrough Patented Technology & Deep Domain Expertise A nex
Slide 9: Revenue Model
REVENUE MODEL Defense Group Digitization Services Professional fees, strategic multi-year programs Digital Fire Control systems Programmatic product sales and maintenance fees Laser Detection Product sales and software fees Electronic Warfare Product sales and software fees Public Safety Gro
Slide 10: Manufacturing and Market Development
MANUFACTURING AND MARKET DEVELOPMENT Outsourced Manufacturing for Operating Leverage Go-to-Market Strategy that Leverages Third-party OEM’s, Distributors and Events NASDAQ &&TSX.V: NASDAQ TSXV:KWE KWE KWESST KWESST Micro Systems Inc. Inc. Proprietary Information | October 2023 10
Slide 11: Patents and Trademarks
Patents and Trademarks Patents 26 issued or pending internationally, covering: Phantom (digital electronic decoy) TASCS IFM (digital fire control system) Battlefield Laser Detection System Low Energy Cartridge (PARA OPS) Trademarks Trademarks issued or pending internationally, include: KWE
Slide 12: Cap Table and Balance Sheet
CAP TABLE AND BALANCE SHEET As at December 31, 2023, as filed on SEDAR+ and EDGAR unless otherwise noted Shares issued 6,049,204 Dilutive securities 7,105,197 April 2024 US Public Offering Shares issued 735,000 Warrants 803,500 1,538,500 Fully diluted shares at April 18, 2024 14,260,479 Cash as at D
Slide 13: Validation and Catalysts
VALIDATION AND CATALYSTS Defense Development of foundational digitization capabilities. Collaboration agreements with global defense contractors on military digitization programs. GDLS teaming agreement on Phantom electronic deception system, and delivery of demonstration unit. $1M contract
Slide 14: Outlook
OUTLOOK Defense Ramp-up of awarded CAD$136M DSEF joint venture contract with Thales and Akkodis under 5-year DND contract (underway) – KWESST portion up to CAD$27M over 5 years, plus additional option years Major opportunity pending for second, larger multi-year military contract with NATO natio
Slide 15: Key Attributes
KEY ATTRIBUTES Stable long-term high-growth global industry. Seasoned management with a proven track record of success. Strong go-to-market industry partnerships with prime defense contractors. Extensive IP portfolio Scalable outsourced manufacturing model for operating leverage. Product
Slide 16: Thank You
SEAN HOMUTH President & Chief THANK YOU Executive Officer DAVID LUXTON SEAN +1 (613)HOMUTH 863-1255 Executive Chairman Chief Financial Officer luxton@kwesst.com homuth@kwesst.com DAVID LUXTON +1 (613) 319-3718 +1 (613) 319-3718 Executive Chairman +1 (613) 769-5353 OTTAWA • WASHINGTON, DC • LONDON •
Slide 17: Appendices
APPENDICES NASDAQ &&TSX.V: NASDAQ TSXV:KWE KWE KWESST KWESST Micro Systems Inc. Inc. Proprietary Information | October 2023
Slide 18: Defense Group
DEFENSE GROUP Applications of KWESST’s core digitization technology and capabilities NASDAQ &&TSX.V: NASDAQ TSXV:KWE KWE KWESST KWESST Micro Systems Inc. Inc. Proprietary Information | October 2023 17
Slide 19: Digital Situational Awareness
DIGITAL SITUATIONAL AWARENESS Real Time Data Sharing At The Tactical Level Connecting soldiers on the ground through ATAK, the U.S. government system of choice, now being adopted by other NATO countries. – Facilitates instant sharing of data and visual information among soldiers on the ground, in
Slide 20: Digitized Fire Control Systems
DIGITIZED FIRE CONTROL SYSTEMS Digitized Firing Platforms – The Future Of NATO Forces CAD $1M contract for U.S. Marine Corps to showcase KWESST application of its digitization and ATAK integration module at right on 81mm mortar for dramatically faster deployment, targeting and accuracy. – Transfor
Slide 21: Digitized Laser Detection
DIGITIZED LASER DETECTION THE PROBLEM // laser threats on the modern battlefield Adversaries use laser range finders and laser designators to target high-value assets of friendly forces, and have also weaponized lasers against ground personnel. KWESST SOLUTION // advanced patent-pending modular tech
Slide 22: In Development: Digitized EMSO
IN DEVELOPMENT: DIGITIZED EMSO Electro Magnetic Spectrum Operations (EMSO) Addressing NATO and partner country requirements for a compact “tactical” multi-function electronic warfare device that can be deployed in a battlefield by soldiers or drones. KWESST “Phantom” Version 1.0 portable electronic
Slide 23: Public Safety Group
PUBLIC SAFETY GROUP Applications of KWESST’s digitization technology to the public safety market. Plus, a new non-lethal munitions system NASDAQ &&TSX.V: NASDAQ TSXV:KWE KWE KWESST KWESST Micro Systems Inc. Inc. Proprietary Information | October 2023
Slide 24: Public Safety – Digitization
PUBLIC SAFETY – DIGITIZATION Leveraging KWESST’s Core Military Technology into the Public Safety Market New // Commercialization planned for later in 2024 Digitization for Ground Search And Rescue (GSAR) operations Digitization of public surveillance operations for shared awareness KWESST Lightning
Slide 25: Public Safety – New Non-Lethal Munitions System – PARA OPS
PUBLIC SAFETY – NEW NON-LETHAL MUNITIONS SYSTEM – PARA OPSTM Aims to solve the problem of dated legacy systems on the market today that are either high-energy and potentially lethal or are air-gun based and can be unreliable. Complex pneumatic mechanism, with O-rings and seals that can Air-powered,
Slide 26: Public Safety – Non-Lethal Munitions System – PARA OPS
PUBLIC SAFETY – NON-LETHAL MUNITIONS SYSTEM – PARA OPSTM Current Program Status of PARA OPS Development of first-generation products completed. Generation 1 Products Outsourced low-rate production of cartridges underway at NY facility. Outsourced low-rate production of Solo and 5 Shot Pro unde
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