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KWESST Announces Market Introduction and Progress of PhantomTM Electronic Decoy

KWESST Announces Market Introduction and Progress of PhantomTM Electronic Decoy

October 4, 2021 – Ottawa KWESST Micro Systems Inc. (TSXV: KWE and OTCQB: KWEMF) (“KWESST” or “the Company”) today announced several favorable developments regarding the introduction to market of its PhantomTM electronic battlefield decoy. PhantomTM  is a programmable radio frequency (“RF”) generator that can mimic the electronic communications of NATO forces, thus fooling adversaries as to their location.

PhantomTM also provides the ability to see radio frequency energy of both adversaries and friendly forces and gives the user a high-fidelity planning capability for optimal placement for maximum effectiveness. Finally, PhantomTM provides a training function that allows NATO forces to “practice” operating in Electronic Warfare (“EW”) environments.

Requirement for PhantomTM on armored vehicles

As part of discussions with large defense contractors, the Company announced that it is in advanced negotiations with a global defense contractor to provide PhantomTM units as part of the contractor’s tender for armored vehicles to a large NATO customer. Inclusion of an electronic battlefield decoy technology, like KWESST’s PhantomTM on the vehicles was requested by the NATO customer as part of the tender. Should the defense contractor win the tender, it is expected that the accompanying requirement for PhantomTM will result in a contract worth more than USD $40M for KWESST depending on the number of vehicles purchased, with initial revenue in the current fiscal year and ramping up in 2023 and 2024. 

Showcase demonstration for U.S. military

The U.S. Department of Defense (“DoD”) has requested a showcase demonstration of PhantomTM at its upcoming signature, invitation-only event “Silent Swarm 22” next summer for advanced Electro Magnetic Spectrum Operations (“EMSO”).  In July 2021, PhantomTM was showcased by invitation-only to a U.S. Special Operations Command (“USSOCOM”) technical exercise, where KWESST designers and engineers engaged with the Special Operations community in a collaborative environment. This led directly to discussions and negotiations with three large defense contractors regarding potential go-to-market partnerships across a variety of rapidly emerging requirements and programs forelectronic decoys. The U.S. DoD also expressed interest in an additional, small, disposable version of PhantomTM for use by Special Forces, pursuant to which KWESST has developed a concept model (far right, below). PhantomTM is also fully integrated with ATAK (Android Team Awareness Kit, center, below).

An earlier prototype version of PhantomTM was procured and successfully trialed in U.S. military exercises prior to KWESST’s acquisition of the technology as announced June 15, 2020.  The latest version is more compact, with vastly greater capability, and is soldier-portable or can be deployed by Unmanned Aerial Systems (“UAVs” or “drones”). 

Demonstrations, pricing requests from other customers

The Company reported that demonstration units of PhantomTM are available and are being deployed in customer evaluations, with two additional U.S. military agencies already requesting pricing.

Pathways to market and potential

“Together, these developments mean significant growing interest in the PhantomTM product suite and multiple pathways to market”, said Jeff MacLeod, KWESST’s Founder, President and CEO, who added, “Initial sales are expected in the first quarter of our current fiscal year ending December 31st”.  Based on internal research and customer discussions, the Company estimates the market for a system like PhantomTM to be worth several hundred million dollars in the U.S. alone.”

Intellectual property (“IP”)

KWESST previously announced the award of two U.S. patents, both titled: Programmable Multi-Waveform RF Generator for Use as Battlefield Decoy.  One patent focuses on the technological phenomenology (how it works) and the other focuses on methods of employment and concepts (how it is best used).  The Company continues to expand its IP protection of PhantomTM, with two additional patents currently pending. “We believe this constitutes strong IP protection, and the flexible system architecture allows for rapid configuration at any scale for any given customer or requirement”, concluded MacLeod.

About KWESST 

KWESST develops and commercializes breakthrough next-generation tactical systems that meet the requirements of security forces and personal defense for overmatch capability against adversaries. The company’s current portfolio of unique proprietary offerings include: its signature TASCSTM (Tactical Awareness and Situational Control System) for real-time awareness and targeting information from any source (including drones) streamed directly to users’ smart devices and weapons; the autonomous GreyGhostTM soldier-portable micro drone missile system that defends against small hostile drones including swarms using high-speed kinetic impact; a Ground Laser Defence system to counter the emerging threat of weaponized lasers against personnel; and, the PhantomTM  electronic battlefield decoy system to mask the electromagnetic signature of friendly forces with decoy signatures at false locations to deceive and confuse adversaries.  All systems can operate stand-alone or integrate seamlessly with OEM products and battlefield management systems including  Frontline, Edge, Killswitch  and all versions of the ATAK Tactical Awareness. KWESST also has developmental “smart ordnance” projects including its “Shot Counter” system, which records the number and type of rounds fired, for optimized firearms maintenance and performance, and a unique non-lethal Low Energy Cartridge (LEC) system with application across all segments of the non-lethal market. The Company is headquartered in Ottawa, Canada, with representative offices in Washington, DC, London, UK and Abu Dhabi, UAE. KWESST trades on the TSX Venture Exchange under the symbol KWE and on the U.S. OTCQB under the symbol KWEMF.

Contact:  Jason Frame, Investor Relations: frame@kwesst.com

For more information, please visit https://kwesst.com/  

Cautionary Note Regarding Forward-Looking Statements 

This news release includes certain “forward-looking statements” under applicable Canadian securities legislation. Forward-looking statements include, but are not limited to, statements with respect to the expected size of the PhantomTM contract should the global defense contractor win the tender for the armored vehicles . Forward-looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable, are subject to known and unknown risks, uncertainties and other factors which may cause the actual results and future events to differ materially from those expressed or implied by such forward-looking statements. Such factors include, but are not limited to: general business, economic, competitive, political and social uncertainties. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. KWESST disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news release. 

About KWESST
KWESST deveops and commercializes high-value ultra-miniaturized technology applications that make a critical difference to the safety and operational effectiveness of personnel in the defence and security community. The company’s current portfolio of unique proprietary offerings include: its signature TASCS™ (Tactical and Situational Control System) for real-time awareness and targeting information from any source (including drones) streamed directly to users’ smart devices and weapons; the autonomous Grey Ghost™ kinetic impact missile system that defends against small hostile drones including swarms; a Ground Laser Defence system to counter the emerging threat of weaponized lasers against personnel; and, the Phantom Tactical Electronic Decoy to mask the electromagnetic signature of friendly forces with decoy “phantom” signatures at false locations to deceive and confuse adversaries. All systems can operate stand-alone or integrate seamlessly with OEM products and battlefield management systems including Frontline, Edge, Killswitch and ATAK (Android Tactical Assault Kit) among others. KWESST also has developmental “smart ordnance” projects including its “Shot Counter” system, which records the number and type of rounds fired, for optimized firearms maintenance and performance. The Company is headquartered in Ottawa, Canada, with representative offices in Washington, DC, London, UK and Abu Dhabi, UAE.

The Company trades on the TSXV exchange under the symbol KWE. For more information please visit kwesst.com.