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KWESST

Bold Innovations in Military Defense Software and Equipment

Overview

KWESST Micro Systems (TSXV:KWE) is a technology company which develops and commercializes breakthrough next generation tactical systems that meet the requirements of security forces and personal defense for overmatch capability against adversaries. The key market segments and solutions addressed by KWESST technologies are:

Breakthrough technology in non-lethal systems with broad application, including law enforcement and personal defence.
Modernized digitization of tactical forces for shared situational awareness and targeting.
Counter measures against threats such as drones, lasers and electronic detection.

KWESST’s Non-Lethal Product

Low Energy Cartridge System (LEC)

The market for non-lethal products is a recurring multi-billion-dollar opportunity. Customers continue to seek better solutions as many legacy systems can be lethal, and frequently are unreliable. Thousands of fatalities have been recorded from existing cartridge-bases systems, including conducted energy devices such as Taser. Other legacy products that are “less” lethal typically fire from air guns, which are inherently unreliable as they are affected by ambient temperature and involve high maintenance including as a result of air seals and “O” rings drying out and bursting, causing catastrophic failures. Air-based systems also entail a long logistics tail of compressors, air tanks and spare parts.

The LEC systems solves these problems with the proven reliability of a cartridge-based system in a low-cost firing platform that fires only LEC cartridges. The firing platforms are offered in various patterns that replicate the look of a real firearm, or avoid the appearance of a firearm altogether, at the user’s choice. The proprietary LEC cartridge automatically stabilizes the projectile for accuracy and distance, with an energetic actuator that controls velocity and muzzle energy well below lethal levels, and with no need for gunpowder or conventional propellant. The system’s soft frangible projectiles come with various payloads, including colored marking agent, inert powder or a safe but powerful irritant powder that temporarily incapacitates subjects.

The table below shows why LEC is the best choice among current non-lethal weapons.

LEC is an inexpensive dedicated firing platform that fires only LEC cartridges. These are offered in various patterns that replicate the look of a real firearm, or avoid the appearance of a firearm altogether, at the user’s choice.

LEC’s soft frangible projectiles come with various payloads, including colored marking agents, inert powder, or a safe but powerful irritant powder that temporarily incapacitates subjects.

LEC has two provisional patents and is the world’s first cartridge-based non-lethal firing system. It is a breakthrough over existing air-based systems with a projectile of high fps velocity, which is considered lethal. LEC is made with a non-lethal low energy cartridge case that generates spin to a projectile reducing velocities and muzzle energy below the lethal threshold of 400 feet per second (fps). This is done with no need for gunpowder or conventional propellant.

Meanwhile, tasers and maces are for close encounters increasing the probability of disarmament by assailants. Tasers, carried by some 400,000 American patrol officers, are also given an effectiveness rating of only 57.1 percent by the Los Angeles Police Department.

KWESST’s non-lethal Low Energy Cartridge (LEC) product line will culminate with an official commercial launch at the 2022 SHOT Show® in Las Vegas, January 18 – 21.

The LEC system is the world’s first cartridge-based non-lethal firing system with universal application across four market segments that currently use a variety of dated “non-lethal” or “less-lethal” solutions. These segments are (i) public order and security (riots and control of dangerous subjects), (ii) military and law enforcement training (realistic force-on-force training), (iii) personal defence (home, car, boat, RV, camping, hiking), and (iv) high-action gaming.

KWESST is prioritizing the global self-defence and the public order and security markets, where there exist ready channel partners, including large e-marketplaces for tactical products and sophisticated social media campaigns, hence avoiding the expense and time to build out an internal sales force. These markets represent near-term opportunities with short selling cycles.

Modernized digitization of tactical forces for shared situational awareness and targeting

Tactical Awareness and Situational Control System “TASCS”

KWESST Micro Systems’ Tactical Awareness and Situational Control System (TASCS) is a software package that can be integrated or added on to small weapons systems commonly carried by soldiers to enable precise networked surveillance and targeting on a wide range of technical platforms. The technology has the potential to provide targets beyond traditional line-of-sight targeting systems, proving the potential for soldiers to identify targets they cannot see directly. KWESST Micro Systems’s TASCS software can be used as an add-on for drones and counter-drone original equipment manufacturers (OEMs) as well.

Using TASCS, operators have the capability to “mark” areas or persons of interest which can then be shared with other reconnaissance technology such as drones or scoping imagery to confirm the areas or persons of interest. In December of 2019, KWESST Micro Systems signed a development contract to incorporate TASCS into a networked soldier Heads Up Display (HUD) system.

The company completed the second of two phases in October 2020 for a US military customer, which showed that its TASCS IFM had better accuracy and quicker response times on indirect fire systems, including mortars, improving soldier survivability and operational effectiveness.

The company completed the second of three phases of its Tactical Awareness and Situational Control System (TASCS) and Integrated Fires Module (IFM) for a US military customer. The product is an App and snap-on weapon adaptor that enables real-time streaming of situational awareness data of any kind from any source, including drones, direct to smart display devices and operational assets, for a common operating picture and networked engagement. This phase demonstrated that KWESST’s TASCS IFM had greater accuracy and faster response times on indirect fire systems like mortars, improving soldier survivability and operational effectiveness.

On the heels of this, KWESST was upgraded to “USA Partner” for SAMSUNG Electronics America, which will help the company deploy its SAMSUNG S20TE smartphone in its production version of the TASCS in addition to its IFM for networked targeting on soldiers’ weapons.

Counter measures against threats such as drones, lasers and electronic detection.

Drone Threat & Counter Solution – GreyGhostTM

KWESST Micro Systems’ patented drone threat and counter-drone solution DroneBullet ™ is capable of autonomously tracking and neutralizing an enemy drone from any detection source. The technology can be applied as an add-on to existing drone and counter-drone OEMs.

KWESST Micro Systems’ counter-drone technology DroneBullet is a kinetic and integrated counter-drone system capable of launching a miniature ground-to-air missile designed to intercept enemy drones or aerial vehicles.

Electronic decoy – Phantom^TM

PhantomTM is an electronic battlefield decoy system to mask the electromagnetic signature of friendly forces with decoy signatures at false locations to deceive and confuse adversaries.

(INN to add text and pictures from Company’s investor presentation)

Thanks to a Notice of Allowance issued by the United States Patent and Trademark Office (USPTO) in October 2020 for the company’s patent application covering its PhantomTM electronic battlefield decoy, the company is one step closer to achieving its goal.

The platform addresses the needs required for miniaturized electronic decoys that soldiers or drones can deploy in contested areas of operation in order to prevent the opposition from locating NATO forces.

KWESST Micro Systems’ Company Highlights

Aiming to become a leading developer of software and equipment for military and security uses
KWESST announced the official commercial launch of its Low Energy Cartridge System (LEC) technology at the SHOT Show in Las Vegas in January 2022
KWESST qualified for up to $1.5M in project funding in support of the further development and productization of its TASCS IFM system, Phantom electronic decoy system and counter-drone system.
TASCS software package can be integrated into existing small weapons systems
Has completed the second of three phases for its TASCS and IFM for a US military customer
GreyGhost technology is capable of identifying an enemy drone and sending a miniature surface-to-air missile in order to mitigate the threat
Received Notice of Allowance from the USPTO for its PhantomTM electronic battlefield decoy system
Upgraded to “USA Partner” with SAMSUNG Electronics America, which will allow the company to employ its SAMSUNG S20TE smartphone in its production version of the TASCS in addition to its IFM for networked targeting on soldiers’ weapons
Management team has a long track record of success, including experience in the global defense and security market

KWESST Micro Systems’ Management Team

Jeff MacLeod — Founder, President, CEO and Board Member

Former Canadian RCEME officer, served as System Engineer for three Major Army Crown Projects before moving to the private sector. Nineteen years experience as General Manager of Diemaco / Colt Canada. Expert in the Small Arms and Soldier Systems field as well as all aspects of manufacturing. Formed KWESST Micro Systems in 2017 to pursue opportunities in the networking and digitization of legacy and future weapons systems.

David Luxton — Executive Chairman

Serial entrepreneur in defence and security industry. Former Canadian infantry officer and senior official with the Canadian and British governments before leading the global build-out of successive defence and security companies. Founded Simunition, the world leader in simulated munitions for close-quarters’ combat training of military and police. Led the build-out of Allen Vanguard from $5M to $300M, where he remains Chairman. Former Executive Chairman of United Tactical Systems.

John McCoach — 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, CPA, CA — Chief Financial Officer

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-V and CSE in media broadcasting technology and health & wellness industries.

Paul Fortin — 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 defence 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 defence community and diplomatic defense attaché network, notably with the USA (Air Force, Army, Navy, USMC), Five Eyes, Korea, Ukraine, Israel, NATO, and Middle Eastern (Gulf States).

Paul Mangano — Director

Paul is a 34-year veteran of the high technology 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 consulting firm providing advice, leadership, to SME companies in the high-tech sector including aerospace and defence. Prior to forming Surculus Advisors, Paul was a Division President at L-3 Communications (NYSE: LLL). Paul worked as SVP, Business Development at VT Griffin, and President & COO of Proterion Corporation.

Elisabeth Preston — Director

Elisabeth Preston is Chief Legal Counsel for a top tier international defence company with widespread global operations. She is an international business and trade lawyer, with significant transactional experience in many jurisdictions. Her experience spans more than thirty years advising companies as an executive in areas relating to governance, cross-border marketing, strategic relationships, major commercial transactions and financings to fund growth.

Warren Downing — Director of Innovation

Fifteen years in the Royal Australian Air Force. Transitioned to an industry where he has built upon his military experience with 20 + years of Systems Engineering and Program Management with Defense and communications companies such as CAE Inc, Lockheed Martin, General Dynamics, DRS Technologies and Colt Canada.

Jeffrey M. Dunn — Senior Advisor

Mr. Dunn’s career includes being Chief Operating Officer for ARTEMIS, Inc., the Naval Service Lead for Rapid Prototyping at Booz Allen Hamilton, and Director Strategic Development at General Atomics Aeronautical Systems. He is the recipient of several medals and awards during a twenty-year career as a U.S. Marine AV-88 Harrier pilot and mission commander.

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SoLVBL Solutions

Protecting Data Worth Forging

Overview

SoLVBL Solutions (CSE:SOLV) is a technology company developing software as a service (SaaS) products designed to provide authenticity and security to existing data management systems, specifically digital financial platforms and information databases. SoLVBL is focused on developing data management and protection solutions designed for businesses with sensitive data worth forging, with potential applications in a number of industries.

The company’s flagship product, Q By Solvbl, is designed to encrypt and store a representation of the data, allowing seamless cooperation between businesses and users. By cryptographically sealing a representation of the data, rather than the data itself, SoLVBL is able to remain data agnostic and maintain an additional level of security. Q By SoLVBL can be used as a digital payment instrument, a means of fraud protection, or as a central authority for verifiable data repositories.

Q By SoLVBL is an enterprise-level data protection platform capable of processing over 150,000 transactions per second. The platform is offered through SoLVBL’s SaaS business model, which the company intends to expand through additional product offerings that leverage the Q by SoLVBL digital infrastructure. Q By SoLVBL is backed by a private blockchain to ensure the credibility of the data on the platform. By providing an immutable record of all data used, SoLVBL is able to operate the platform through compartmentalization without having direct access to the data itself, providing an additional layer of security.

The Q By SoLVBL system is designed to enable secure digital payments for existing banking systems. The company’s fraud prevention system was designed with incidents like the notorious Bangladesh bank heist in mind. The heist saw hackers withdraw over US$81 million from banks using the Society for Worldwide Interbank Financial Telecommunication (SWIFT) system, demonstrating the need for financial institutions to keep pace with the technological capabilities of hackers and cybercriminals.

SoLVBL Solutions’ Company Highlights

Global fraud detection and prevention market is expected to grow from US$19.5 billion in 2018 to US$63.5 billion by 2023 at a CAGR of 26.7 percent
Q By SoLVBL leverages a private blockchain to ensure an immutable representation of the data, without giving actual file access
Representation of the data is cryptographically protected, ensuring all parties can rely on data presented on the platform
‘Q’ Platform can be adapted for additional security applications including the SWIFT network, B2B transaction improvements and data repository solutions
Q By SoLVBL is capable of processing 150,000 transactions per second based on trials conducted by the company using the cloud

Q By SoLVBL

Q By SoLVBL is the company’s proprietary software designed to digitally “stamp” or “seal” data through encryption, enabling verifiable digital payments with fraud prevention and other security services. The Q By SoLVBL system can also be applied to varying types of digital data, enabling a verifiable data repository that can be relied upon by businesses utilizing the platform.

As shown by the Bangladesh bank heist, during which hackers escaped with US$81 million in stolen funds, there is a need for financial institutions to improve the security standards protecting their data. “Increasing revenue losses for organizations due to the rising fraudulent attacks, increasing use of electronic transactions across all the verticals and increasing sophistication level of cyber-attacks across all regions will contribute to the growth of the overall FDP market,” said Markets and Markets in a report on fraud detection and prevention. According to the company’s projections, the fraud detection and prevention market is expected to grow from US$19.5 billion in 2018 to US$63.5 billion by 2023 at a compound annual growth rate (CAGR) of 26.7 percent.

By providing an enterprise-level platform capable of quickly verifying data, including financial information, Q By SoLVBL has the potential to enable new levels of cooperation between businesses that can agree on the reliability of the information on the platform without the need to independently verify the data. In addition to financial services, the Q By SoLVBL platform can be adapted to serve any industry that relies on sensitive data worth stealing or forging. Whether the underlying information includes financial data, medical data, product specifications or pharmaceutical information, all forms of digital information can be immutably protected and referenced for trustless use between parties.

Moving forward, SoLVBL intends to continue to develop payment security and risk reduction applications for financial networks while also working to improve B2B transactions on the Q payment platform.

Solvbl Solutions’ Q Authentication Platform

SoLVBL plans to monetize its Q Authenticity Platform, including Q By SoLVBL, by collecting a percentage of financial transactions conducted on the network. The company also intends to offer tiered pricing for access to the network.

Moving forward, SoLVBL is working to develop a digital cheque that can be authorized and encrypted in order to improve the efficiency and safety of transferring funds in the digital domain. The company is also exploring the potential to apply its technology its technology to Next Generation 911, Chain of custody authentication for digital evidence and Supply chain sensors such as trackers.

SoLVBL Solution’s Management Team

Raymond Pomroy, CEO

An international manager, who has exceptional experience in business management and supply chain management (e.g. Make, Plan, Source, Deliver) primarily in UK, Holland) Canada and the US. Prior to joining Agile, Raymond had been working in a multinational consumer goods company for 30 years, and managed all elements of supply chain, including USD$2.8 billion in product supply, six factories in North America, and over 2,000 employees. He is experienced in supply chain strategy development, global supply, organizational redesign and implementation of restructuring, contract negotiations, and cost reduction activities. Raymond holds a Bachelor of Science and DIS from Loughborough University (UK).

Khurram R. Qureshi, CPA, CA, CFO

Khurram Qureshi brings over 22 years of experience in the field of accounting and corporate finance. Khurram qualified as a Chartered Accountant in 1990 and has held senior positions with several small to medium-size public companies. He has been a key member on several merger and acquisition teams.

Vikas Gupta, Director

Vikas is a seasoned executive with an entrepreneurial DNA and has a strong track record with private and public companies. He is well versed in gamification, digital distribution, video games, interactive entertainment and content. Additionally, he has also built very strong expertise in financings, the creation of unique revenue models, the monetization of complex technologies, leadership, and overall growth.

Musabbir Chowdhury, Director

Musabbir is an engineer who is a business, education and technology consultant with over 20 years of IT achievements. Musabbir is a former Professor at the Niagara College School of Business, and former director of Pi Lab, an innovation & productivity hub at Niagara College. Currently, Dr. Chowdhury is the Dean of Business at Fleming College in Ontario.

Brenda Brown, Director

Brenda is the former Senior VP of Global Talent Management at Compass Group PLC and has over twenty-five years of business experience in all aspects of Human Resource management in both union and non-union environments. As a member of the executive management team, Brenda was involved in key strategic business decisions and was responsible for the development of employee programs, corporate culture development and assisting in ensuring the success of the corporate vision.

Alan Rootenberg, CPA, CA

Alan Rootenberg is a chartered professional accountant who has served as the Chief Financial Officer of a number of publicly-traded companies listed on the TSX, TSXV, OTCBB, and CSE. These companies include mineral exploration, mining, technology, and companies in the burgeoning cannabis industry. He was also an investor in an early stage private cryptocurrency company. Alan has a Bachelor of Commerce degree from the University of the Witwatersrand in Johannesburg, South Africa and received his CPA designation in Ontario, Canada.

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cybersecurity Investing News

KWESST

Overview