KWESST Micro Systems (KWE) has announced updates regarding the market introduction of its Phantom electronic battlefield decoy.
PhantomTMis a programmable radio frequency 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, giving 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.
The company is negotiating with a global defense contractor to provide PhantomTM units as part of the contractor's tender for armoured vehicles to a large NATO customer. The 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, the accompanying requirement for PhantomTM will result in a contract worth more than US$40M for KWESST, depending on the number of vehicles purchased.
The U.S. Department of Defense has requested a showcase demonstration of PhantomTM at its event "Silent Swarm 22" next summer for advanced Electro-Magnetic Spectrum Operations. In July 2021, PhantomTM was showcased by invitation only to a U.S. Special Operations Command technical exercise. 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). PhantomTMis also fully integrated with ATAK (Android Team Awareness Kit, center, below).
The company reported that demonstration units of PhantomTM are being deployed in customer evaluations, with two additional U.S. military agencies already requesting pricing.
"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.
He 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."
KWESST previously announced the award of two U.S. patents, 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 has 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.
KWESST develops and commercializes breakthrough next-generation tactical systems that meet the requirements of security forces and personal defense for overmatch capability against adversaries.
KWESST Micro Systems Inc. (KWE) is down 3.66 per cent, trading at C$1.84 per share at 3:45 pm ET.