KWESST Micro Systems Inc. - KWE STOCK NEWS

On May 20, 2024, KWESST Micro Systems received a notification from Nasdaq, indicating non-compliance with the minimum bid price requirement of US$1.00 per share.

The company failed to meet this requirement based on the closing bid price for 30 consecutive business days from April 4 to May 15, 2024. This notification does not imply imminent delisting and has no immediate impact on the trading of KWESST shares on Nasdaq.

KWESST has been given 180 days, until November 12, 2024, to regain compliance by achieving a closing bid price of at least US$1.00 for 10 consecutive business days. If unsuccessful, the company may be eligible for an additional 180-day compliance period.

KWESST shares will continue to trade under the symbol 'KWE' on Nasdaq and are also listed on the TSX Venture Exchange.

KWESST Micro Systems Inc. (TSXV: KWE, NASDAQ: KWE) announced that KPMG LLP has decided not to stand for re-election as the Company's auditor for the fiscal year ending September 30, 2024. This change is part of a planned transition, and KPMG's departure is not due to any disagreements with management or the board. KWESST is in the final stages of appointing a successor auditor, which will be confirmed and announced soon. The annual general meeting has been rescheduled to July 30, 2024, where shareholders will consider and approve the new auditor appointment. KPMG has confirmed that they did not express any reservations or modified opinions in their reports for the past two fiscal years, nor were there any reportable events as defined by securities laws.

KWESST Micro Systems has been awarded a contract to pilot its situational awareness app, KWESST LightningTM, in support of Canadian Red Cross disaster relief operations. The project, valued at CAD $100,000, is scheduled to commence at the end of May and conclude by October 2024. KWESST will collaborate with CounterCrisis Tech for this proof of concept. Additionally, KWESST will present its LightningTM app at the Canadian Association of Chiefs of Police conference in February 2025.

This pilot aims to demonstrate the app's effectiveness under a SaaS model, potentially paving the way for future commercial applications.

KWESST Micro Systems has reported a significant rise in revenue and strategic milestones for Q2 2024. Revenue increased by 200% compared to the same period last year, driven by a 121% rise in ARWEN Product Line sales.

Sales and marketing expenses were cut by 64%, and cash used in operations reduced by 46% year-to-date. The gross profit for Q2 was $0.2 million, with a 30% gross margin, though lower than the prior year's 44% gross margin.

Operating loss decreased by 5% to $2.9 million for Q2 but increased by 18% year-to-date, primarily due to higher general and administrative, research and development costs, and commercial feasibility expenses for PARA OPS products.

Major highlights include securing defense contracts, commercialization of non-lethal munitions like PARA OPS and ARWEN 40mm, and a new distribution agreement with O'Dell Engineering The company also closed a public offering, raising $1 million in gross proceeds.

KWESST Micro Systems Inc. (NASDAQ: KWE) provides an update on their business activities ahead of fiscal Q2 2024 results. The company secured a multi-year military digitization contract with revenue potential up to $48M. They signed an MOU with the University of Ottawa for hiring software coding graduates. KWESST introduced Lightning™ SaaS app to public safety agencies and showcased the T-SAS Tactical Surveillance And Sniper system. The ARWEN non-lethal product line is expanding with new 40mm baton cartridges and distribution agreements with O'Dell Engineering. The company continues to demonstrate and evaluate the PARA OPS non-lethal system with police and security agencies.

KWESST Micro Systems Inc. announced the closing of a public offering, raising approximately US$1,000,000. The offering included common shares and pre-funded warrants, with net proceeds intended for working capital and business objectives.

KWESST Micro Systems Inc. announces the pricing of its underwritten public offering of 1,538,500 common shares at $0.65 per share, generating gross proceeds of approximately $1,000,000. The offering is expected to close soon.

KWESST Micro Systems Inc. announces a public offering to sell common shares or pre-funded warrants, with ThinkEquity as the book-running manager. The company plans to use the proceeds for working capital and business objectives.

KWESST Micro Systems Inc. updates investors on the growth of ARWEN business and military digitization revenue. The reorganization of ARWEN has led to a six-fold increase in customer shipments in Q2. Anticipated Q2 revenue of CAD $226K represents a run rate of approximately CAD $1 million annually, more than double the revenue in fiscal 2023. The company foresees continued growth driven by the introduction of new products and improvements in the supply chain. The military digitization programs, including the DSEF program and a subcontract with a global defense contractor, are expected to yield significant revenue growth. KWESST expects to be under contract with the defense contractor by mid-April, with a maximum workshare of approximately CAD $48 million for the initial 6-year term. The company is focused on executing its strategy of winning and delivering on long-term strategic military programs to ensure revenue stability.