(Image via KWESST Inc.)
KWESST Inc. (TSX-V: FMV.P) is a Canadian military tech Company that “makes dumb weapons smart” by developing
proprietary technology for the military and homeland security markets. Its Executive Chairman David Luxton was recently interviewed about the Company’s Tactical Awareness and Situational Control System and the international markets for these products.
How does KWESST’s technology make weapons “smarter” and enhance the safety and operational capabilities of soldiers?
KWESST’s TASCS system, for one, feeds situational awareness information directly to soldiers’ networked smart devices and their weapons systems, which allows them to be further back from adversaries and behind cover when engaging. They’re safer for that reason and the TASCS fire module for their weapons system also makes them much more accurate, increasing their operational effectiveness.
Since the company is eyeing the Global Soldier Systems market how big is the opportunity?
Independent market studies have pegged the Soldier Systems market at more than $14B by 2025.
Why has homeland security become more concerned about the threat posed by small drones, and how is KWESTT a part of the solution in quelling hostile drones that operate alone or in a swarm?
The use of small drones for hostile or criminal purposes is proliferating everywhere, including attempted assassination by drone, delivery of weapons and contraband to prisons, unauthorized overflight of critical facilities and security-sensitive infrastructure. In many countries small drones have also been weaponized with improvised explosives and turned into flying IEDs. Electronic counter-measures to disrupt and stop drones are becoming less effective as bad actors create “unjammable” drones, leaving no option but to take them down kinetically. In a homeland security setting it is not safe to do this by shooting weapons. KWESST’s micro drone missile can instead be used against single or multiple drones to autonomously track, intersect and neutralize them with high speed impact.
Can you talk about some of your products like the electronic decoys and defense systems aimed at countering the threat of ground laser weapons?
Products like the electronic decoy is another example of a micro system to keep soldiers safer in the field and buy time for mission success. A deployed military unit in a remote location is easy for adversaries to locate by listening to their electromagnetic emissions. KWESST’s electronic decoys mimic this electromagnetic traffic and can be deployed by soldiers or drones at “phantom” locations in the area of operation to fool adversaries into believing they are operations where there are none, thus masking the real location of friendly forces.
KWESST’s laser defence system counters the emerging threat of ground-based laser weapons used by bad actors to blind personnel and fry their optical devices like scopes and binoculars. KWESST’s laser defence system warns everyone on the ground of the presence of laser weapons and can also pinpoint the location of the laser weapons on the TASCS situational awareness and control system.
How do you keep your operations lean and boost the economics of your business model?
KWESST outsources its production to a secure supply chain of North American vendors, so it doesn’t have to invest in production plant and equipment. This makes the business scalable and creates operating leverage with higher profitability as revenues grow.
Has your signature Tactical Awareness and Situational Control System (TASCS) been favorably evaluated by the US military?
There were demonstrations and evaluations to the U.S. military over the past two years leading up to contracts now underway to incorporate TASCS into military exercises of key U.S. customers, which is an important milestone in achieving introduction into service.
What is the investment case for a military tech company like KWESST and could share your outlook in terms of pipeline opportunities?
The investment case is, very simply: a timely technology play led by proven industry experts in a high-growth segment of the global defence and homeland security market, with a scalable business model and a de-risked strategy of diversified products and customers and low Capex. In terms of outlook, the company had more than $90M in pipeline opportunities as of August 2020.
FULL DISCLOSURE: KWESST Inc. is a client of Stockhouse Publishing.