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]