Core Viewpoint - KWESST Micro Systems Inc. intends to change its name to DEFSEC Technologies Inc. to better reflect its focus on defense and public security technology, with the name change expected to take effect around June 30, 2025, subject to regulatory approval [2][3]. Company Developments - The name change coincides with the opening of a new, larger facility in Kanata North, Ottawa, which is more than twice the size of the previous location and aims to accommodate the company's rapid growth [4]. - The company has received its first order for the Battlefield Laser Detection System from a military systems integrator for a North American armored vehicle program [5]. - The company is focusing on strategic, multi-year contracts with the Canadian Department of National Defence worth up to $75 million through 2028, in partnership with Thales and Akkodis [5]. Product Offerings - KWESST's product portfolio includes the ARWEN line of non-lethal products, which has reportedly saved hundreds of lives, and new PARA "Mini" and "Micro" versions currently under customer evaluation [5]. - The company offers real-time situational awareness solutions, including the Team Awareness Kit (TAK), which is being adopted by NATO countries [5]. - The "Lightning" version of the military-grade situational awareness capability is designed for the public security market and operates under a SaaS model, allowing users to access it on smart devices for a monthly subscription fee [5]. Shareholder Information - No action is required from shareholders regarding the name change, and there will be no change in the company's share capital [6]. - The new CUSIP and ISIN numbers for the common shares have been provided, and existing share certificates will not need to be exchanged [6]. Trading Information - The company's common share purchase warrants will also change trading symbols to "DFSC.WT.U" on the TSXV and "DFSCW" on the Nasdaq [7].

Core Viewpoint - KWESST Micro Systems Inc. has received an order for prototypes of its next-generation battlefield laser detection system (BLDS) for a major North American armored vehicle program, marking a significant validation of its technology [2][3]. Company Overview - KWESST specializes in advanced tactical systems, focusing on the development and commercialization of next-generation military and security solutions [6]. - The company is headquartered in Ottawa, Canada, with additional offices in London, UK, and Abu Dhabi, UAE [7]. Product Development - The BLDS technology is designed to counter the increasing threats from laser-guided systems on the battlefield, such as Laser Target Designators and Laser Range Finders, which have enhanced the lethality of conventional weapons [3]. - The non-networked prototypes are ready for delivery and will undergo performance testing in various operational environments [4]. - Fully-networked versions of the BLDS, which will include real-time detection and classification capabilities, are expected to be available by fall 2025 [5]. Market Context - The modern battlefield has evolved, with lasers posing silent and invisible threats that can quickly target soldiers and vehicles [3]. - The BLDS aims to improve situational awareness and survivability for military personnel and high-value assets [3].

Core Insights - KWESST Micro Systems Inc. reported a significant increase in revenue and a reduction in operating expenses for Q2 Fiscal 2025, indicating a successful pivot towards commercialization and operational efficiency [1][3][7] Financial Performance - Revenue for Q2 Fiscal 2025 reached CAD 1,264.2 thousand, a 160% increase compared to CAD 485.9 thousand in Q2 Fiscal 2024 [2][3] - Total revenue for the six months ended March 31, 2025, was CAD 2,151.8 thousand, up from CAD 614.9 thousand in the same period of the previous year [2] - Gross margin for Q2 Fiscal 2025 was CAD 314.0 thousand, with a gross margin percentage decrease from 50% in Q2 Fiscal 2024 to 25% in Q2 Fiscal 2025 [2][6] Operating Expenses - Operating expenses decreased by 36% year-over-year in Q2 Fiscal 2025, totaling CAD 2,048.6 thousand compared to CAD 3,187.0 thousand in Q2 Fiscal 2024 [2][3][4] - General and administrative expenses fell by CAD 580.4 thousand, primarily due to reduced professional fees and lower insurance premiums [9] - Research and development expenses decreased by CAD 405.7 thousand as the company transitioned from R&D to commercialization [9] Operational Efficiency - The operating loss for Q2 Fiscal 2025 was CAD 1.7 million, a 41% reduction from the previous year, attributed to increased revenue and decreased consulting and engineering costs [3][8] - The company reported a cash balance increase of 54% over Q1 Fiscal 2025, reaching CAD 4.4 million [1] Future Outlook - Management anticipates continued revenue growth driven by Canadian government defense contracts and the launch of new products, including ARWEN 40mm ammunition and PARA OPS [7][8]

KWESST MICRO SYSTEMS INC. Three and six months ended March 31, 2025 and 2024 (Expressed in Canadian dollars) KWESST MICRO SYSTEMS INC. Table of contents for the three and six months ended March 31, 2025 and 2024 | | Page | | --- | --- | | FINANCIAL STATEMENTS | | | Unaudited Condensed Consolidated Interim Statements of Financial Position | 3 | | Unaudited Condensed Consolidated Interim Statements of Net Loss and Comprehensive Loss | 4 | | Unaudited Condensed Consolidated Interim Statements of Changes in Sha ...

Core Viewpoint - KWESST Micro Systems Inc. will consolidate its common shares at a ratio of 21 pre-consolidation shares for 1 post-consolidation share, effective April 23, 2025, to comply with Nasdaq's minimum bid price requirements [1][5][8]. Group 1: Share Consolidation Details - The consolidation was approved by shareholders on March 31, 2025, with a maximum ratio of 25 pre-consolidation shares for 1 post-consolidation share, but the Board decided on a 21:1 ratio [2]. - Currently, there are 11,137,638 shares issued and outstanding, which will reduce to approximately 530,363 shares post-consolidation [3]. - No fractional shares will be issued; fractions will be rounded to the nearest whole number [4]. Group 2: Purpose and Impact - The primary purpose of the consolidation is to increase the share price to meet Nasdaq's continued listing requirements [5][8]. - The consolidation will not affect the number of outstanding share purchase warrants, but the number of shares per warrant will be adjusted to 21 warrants for 1 post-consolidation share, with an increased exercise price of US$1,050.00 [7]. - The exercise price and number of shares for other convertible securities will also be proportionately adjusted [8]. Group 3: Company Overview - KWESST develops next-generation tactical systems for military and security forces, including digitization of tactical forces and countermeasures against various threats [9][10]. - The company is headquartered in Ottawa, Canada, with offices in London, UK, and Abu Dhabi, UAE [10].

Core Points - KWESST Micro Systems Inc. held a special meeting of shareholders on March 31, 2025, to address compliance with Nasdaq's minimum bid price requirement [1] - Shareholders approved a resolution for the consolidation of common shares at a ratio of one share for every twenty-five shares [2] - The board of directors will determine the timing for the consolidation and will announce the final share ratio soon [3] Company Overview - KWESST develops next-generation tactical systems for military and security forces, focusing on real-time situational awareness and targeting information [4] - The company's product portfolio includes countermeasures against electronic detection, lasers, and drones, as well as a new non-lethal product line branded PARA OPSTM [4] - KWESST is headquartered in Ottawa, Canada, with offices in London, UK, and Abu Dhabi, UAE [4]

Core Viewpoint - KWESST Micro Systems Inc. has announced a strategic partnership with U.S.-based Nordon Inc. to enhance its manufacturing capabilities in the United States, aiming to improve product availability and reduce trade barriers while supporting local employment and law enforcement agencies [1][2][3][4]. Group 1: Partnership and Manufacturing Expansion - KWESST has signed a non-binding memorandum of understanding with Nordon Inc. to establish a long-term contract manufacturing arrangement by June 1, 2025 [2]. - The partnership will focus on the production of ARWEN™ less-lethal products, with Nordon already completing tooling for the majority of components related to PARA OPS™ cartridges and projectiles [3]. - This collaboration is expected to strengthen KWESST's U.S. presence and enhance supply chain efficiency while ensuring high-quality production [3][4]. Group 2: Economic and Employment Impact - The partnership with Nordon, a HUBZone-certified manufacturer, is anticipated to drive local employment and support economic development in distressed areas [3]. - KWESST's commitment to U.S. manufacturing is expected to create jobs and contribute to economic growth while providing American-made products to law enforcement [4][6]. Group 3: Strategic Goals and Market Positioning - KWESST aims to enhance product availability and streamline logistics through domestic manufacturing, reinforcing its commitment to quality solutions for law enforcement and civilian markets [4]. - The strategic expansion into U.S. manufacturing addresses logistical challenges and regulatory compliance barriers, ensuring smoother market access for public safety solutions [4]. - KWESST remains committed to maintaining and expanding its manufacturing footprint in Canada for products destined for the Canadian market [4][7].

Core Viewpoint - KWESST Micro Systems Inc. is convening a special shareholder meeting on March 31, 2025, to seek approval for a proposed share consolidation aimed at regaining compliance with Nasdaq's Minimum Bid Price Requirement [1][2][5]. Group 1: Shareholder Meeting Details - The special meeting will take place on March 31, 2025, at 4:00 PM Eastern Time, with relevant materials available on SEDAR+ and the company's website [1]. - Shareholders will vote on the "Consolidation Resolution," which proposes consolidating the company's common shares on a basis of one share for every twenty-five shares outstanding [2][5]. Group 2: Background on Share Consolidation - The need for consolidation arises from a notification received on May 16, 2024, indicating non-compliance with Nasdaq Listing Rule 5550(a)(2) due to the company's share price being below US$1.00 for 30 consecutive business days [3]. - Following a previous consolidation on October 23, 2024, the company was granted an additional 180-day period until May 12, 2025, to regain compliance with the Minimum Bid Price Requirement [4]. Group 3: Implications of Non-Approval - If the Consolidation Resolution is not approved, the company risks serious consequences, including potential delisting from Nasdaq if the share price remains below US$1.00 [6]. - The company asserts that the consolidation is in the best interests of shareholders to ensure compliance with Nasdaq's requirements [7].

Core Points - KWESST Micro Systems Inc. has closed the first tranche of a private placement, raising approximately CAD$3.5 million (around US$2.5 million) [1] - The first tranche included the issuance of 903,700 common shares and 2,884,179 pre-funded warrants at a price of CAD$0.928 (approximately US$0.66) per share or warrant [2] - Each common share or pre-funded warrant was bundled with a common share purchase warrant, exercisable at CAD$1.16 (approximately US$0.817) for 60 months [2] - The company paid a cash fee of CAD$263,636 (7.5% of gross proceeds) and issued 189,394 warrants to ThinkEquity as compensation for services rendered [3] - Due to investor interest, KWESST is increasing the offering size with a second tranche expected to close on or before February 25, 2025, raising an additional CAD$142,070 (approximately US$100,000) [4] - The net proceeds from the offering will be used for general working capital purposes [4] - The securities offered have not been registered under the U.S. Securities Act and cannot be sold in the U.S. without registration or exemption [6] Company Overview - KWESST develops and commercializes next-generation tactical systems for military and security forces, including digitization of tactical forces and countermeasures against various threats [8] - The company is headquartered in Ottawa, Canada, with offices in London, UK, and Abu Dhabi, UAE [8]

Core Points - KWESST Micro Systems Inc. has entered into definitive securities purchase agreements for a private placement, aiming to raise approximately CAD$3.5 million (around US$2.5 million) [1] - The offering includes the issuance of 3,787,879 common shares and/or pre-funded warrants at a price of CAD$0.928 (approximately US$0.66) per share or warrant [2] - The net proceeds from the offering will be used for general working capital purposes [3] Financial Details - The common shares or pre-funded warrants will be bundled with common share purchase warrants, each exercisable at CAD$1.16 (approximately US$0.817) for a period of 60 months [2] - ThinkEquity is acting as the sole placement agent, receiving a cash fee of 7.5% of the gross proceeds and warrants equal to 5.0% of the pre-funded warrants sold [4] Regulatory Information - The offering is subject to approval from the TSX Venture Exchange [5] - The securities offered have not been registered under the U.S. Securities Act and cannot be sold in the U.S. without registration or an exemption [6] Company Overview - KWESST develops next-generation tactical systems for military and security forces, including digitization of tactical forces and countermeasures against various threats [8]