Laser Photonics and Fonon Technologies' Laser Shield Anti-Drone (LSAD) System Gets Picked as Finalist in Defense Innovation Challenge

Rhea-AI Summary

Laser Photonics (NASDAQ:LASE) and its defense partner Fonon Technologies announced their Laser Shield Anti-Drone (LSAD) system has been selected as a finalist in the Defense Innovation Challenge's counter unmanned aerial systems category. The technology will be presented at the Defense TechConnect Innovation Summit & Expo in November 2025.

The development comes amid a $100 million Department of Homeland Security counter-drone procurement initiative. The LSAD system offers laser-based precision targeting capabilities designed to protect military bases, critical infrastructure, and frontline personnel from small drone threats. The partnership combines LPC's industrial laser expertise with FTI's defense applications knowledge.

Positive

• None.

Negative

• LSAD system is still in development stage
• No guaranteed revenue from selection as finalist

Insights

Defense Technology Analyst

LASE's anti-drone system finalist status validates technology in potential $100M+ market, but remains pre-revenue with uncertain timeline.

The selection of the Laser Shield Anti-Drone (LSAD) system as a finalist in the Defense Innovation Challenge represents meaningful validation for this joint technology from Laser Photonics and Fonon Technologies. This recognition comes at a strategic time as counter-drone capabilities have become an urgent national security priority, highlighted by recent White House executive orders addressing airspace sovereignty.

The technology itself targets a critical capability gap in defending against small, low-cost drones that have become increasingly lethal in modern conflicts. Unlike traditional kinetic counter-measures which can be costly per engagement, laser-based systems offer potential advantages in engagement economics, precision, and reduced collateral damage.

What's particularly notable is the market timing - the Department of Homeland Security has earmarked up to $100 million for counter-drone technologies, representing a clear revenue opportunity. However, it's important to understand that the LSAD is described as a "development stage technology," indicating it's not yet production-ready. The selection as a finalist is just one early step in what could be a lengthy procurement process.

While this recognition enhances LASE's competitive positioning against traditional defense contractors, several critical questions remain unanswered: the system's technological readiness level, testing validation results, and timeline to potential production contracts. The Defense TechConnect Summit in November will be a crucial milestone to demonstrate capabilities to military stakeholders, but investors should recognize that defense procurement cycles typically span years rather than months.

Financial Analyst

This finalist selection represents a potentially significant development for Laser Photonics, a company that has historically focused on industrial laser systems for cleaning and material processing applications. The counter-drone market represents a new growth vector that could diversify the company's revenue streams beyond its core industrial applications.

The Department of Homeland Security's $100 million counter-drone initiative presents a tangible market opportunity, though competition will be fierce. LASE's partnership with defense-focused Fonon Technologies appears strategically sound, combining LASE's manufacturing expertise with Fonon's defense applications knowledge.

Importantly, this represents early-stage validation of the technology rather than immediate revenue. The press release specifically describes the LASE system as "development stage technology," indicating significant work remains before commercialization. No timeline for potential contract awards is provided.

The company correctly identifies that its existing industrial laser business serves Fortune 1000 manufacturers across multiple sectors, providing a stable foundation while pursuing this defense opportunity. However, defense contracts typically involve lengthy procurement cycles and uncertain outcomes.

For investors, this announcement represents positive validation of the company's technological capabilities and strategic direction, though with substantial execution risk remaining. The upcoming Defense TechConnect Innovation Summit in November will be a key milestone to monitor for further developments, as it will provide the first public demonstration of the system's capabilities to defense decision-makers.

Fonon to present the LSAD at the Defense TechConnect Innovation Summit & Expo

ORLANDO, FL / ACCESS Newswire / September 16, 2025 / Laser Photonics Corporation (NASDAQ:LASE) ("LPC"), $LASE, a global leader in industrial laser systems for cleaning and material processing applications, together with its defense partner Fonon Technologies ("FTI"), a provider of state-of-the-art laser technologies for material processing and defense infrastructures today announced, the Laser Shield Anti-Drone (LSAD) system was selected as a finalist in the counter unmanned aerial systems area of interest under the Autonomy, AI, and Cyber Critical Technology Challenge. FTI will present the development stage technology during the Defense TechConect Innovation Summit & Expo from November 19-21, 2025.

Bryan Lee, Vice President of Fonon Technologies, commented:
"The selection of our LSAD system as a finalist represents a pivotal moment in addressing one of the most pressing threats facing our military and homeland security today. With small drones increasingly responsible for battlefield casualties and infrastructure attacks, our laser-based solution offers the precision, speed and reliability needed to protect forward-operating bases, critical infrastructure and frontline personnel. This technology addresses the urgent mandate from the White House to restore American airspace sovereignty while positioning us at the forefront of the Department of Homeland Security's $100 million counter-drone procurement initiative. We're honored to demonstrate how American innovation can deliver next-generation defense capabilities that keep our nation secure."

Market Opportunity and Timing
The selection comes at a critical moment for U.S. national security. Small, low-cost drones have emerged as a significant threat on modern battlefields, increasingly responsible for military casualties and infrastructure damage. Recent White House executive orders emphasize the urgent need to "restore American airspace sovereignty" and prioritize domestic counter-drone solutions.

The market opportunity is substantial. The Department of Homeland Security has announced plans to award up to $100 million for counter-drone capabilities, while the U.S. Coast Guard has identified expanding maritime drone threats as a priority concern. The Department of Defense has established an interagency counter-drone task force to coordinate national defense efforts.

Technology Solution
The LSAD system represents a next-generation approach to neutralizing small-scale unmanned aerial systems (UAS). Unlike traditional kinetic solutions, the laser-based technology offers precision targeting capabilities designed to protect:

• Forward-operating military bases

• Critical infrastructure facilities

• Frontline personnel and equipment

Lee continued, "With aerial drones increasingly accounting for battlefield casualties, the LSAD represents a breakthrough solution for defending our most vulnerable assets. We're honored to present this technology at the Defense TechConnect Summit, which connects the innovation community directly with the U.S. Department of Defense."

Strategic Partnership
The collaboration leverages LPC's established industrial laser expertise with FTI's specialized defense applications knowledge. FTI's leadership team brings deep military and naval operations experience, while LPC provides vertically integrated manufacturing capabilities and R&D resources.

Laser Photonics has built a strong foundation in laser technology, targeting the multi-billion surface preparation market currently dominated by traditional sand and abrasive blasting methods. The company's systems are already deployed by Fortune 1000 manufacturers across aviation, aerospace, automotive, defense, energy, maritime, nuclear and space exploration industries.

Investment Implications
For LPC investors, this Defense Innovation Challenge selection represents several key developments:

Market Validation: Pentagon recognition validates the commercial viability of the companies' joint technology approach.

Revenue Potential: The $100 million+ government procurement opportunity provides a clear path to potential contract revenue.

Competitive Positioning: Early-stage selection in a critical defense technology area positions both companies ahead of traditional defense contractors.

Scalability: Success in defense applications could accelerate adoption across commercial security markets.

About Fonon Technologies
Fonon Technologies is a diversified industrial laser equipment provider serving government organizations, all branches of the U.S. military, and defense contractors. Led by a team with deep expertise in military and naval operations, the company tackles the challenges of defense maintenance, repair, overhaul and protection with advanced laser solutions. For more information, visit https://www.fonon.us.

About Laser Photonics Corporation
Laser Photonics is a vertically integrated manufacturer and R&D Center of Excellence for industrial laser technologies and systems. Laser Photonics seeks to disrupt the $46 billion, centuries-old sand and abrasives blasting markets, focusing on surface cleaning, rust removal, corrosion control, de-painting and other laser-based industrial applications. Laser Photonics' new generation of leading-edge laser blasting technologies and equipment also addresses the numerous health, safety, environmental and regulatory issues associated with old methods. As a result, Laser Photonics quickly gained a reputation as an industry leader in industrial laser systems with a brand that stands for quality, technology and product innovation. Currently, world-renowned and Fortune 1000 manufacturers in the aviation, aerospace, automotive, defense, energy, maritime, nuclear and space-exploration industries are using Laser Photonics' "unique-to-industry" systems. For more information, visit https://laserphotonics.com.

Cautionary Note Concerning Forward-Looking Statements
This press release contains "forward-looking statements" (within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended), including statements regarding the Company's plans, prospects, potential results and use of proceeds. These statements are based on current expectations as of the date of this press release and involve a number of risks and uncertainties, which may cause results and uses of proceeds to differ materially from those indicated by these forward-looking statements. These risks include, without limitation, those described under the caption "Risk Factors" in the Registration Statement. Any reader of this press release is cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release. The Company undertakes no obligation to revise or update any forward-looking statements to reflect events or circumstances after the date of this press release except as required by applicable laws or regulations.

LPC Investor Relations and Media Contact:
Brian Siegel, IRC®, M.B.A.
Senior Managing Director
Hayden IR
(346) 396-8696
brian@haydenir.com

SOURCE: Laser Photonics Corp.

View the original press release on ACCESS Newswire

FAQ

What is Laser Photonics' (NASDAQ:LASE) LSAD system selected for in 2025?

The LSAD (Laser Shield Anti-Drone) system was selected as a finalist in the counter unmanned aerial systems category of the Defense Innovation Challenge, positioning it for potential Department of Homeland Security contracts.

How much is the Department of Homeland Security's counter-drone procurement initiative worth?

The Department of Homeland Security has announced plans to award up to $100 million for counter-drone capabilities.

What is the purpose of Laser Photonics' LSAD system?

The LSAD system is designed to neutralize small-scale unmanned aerial systems (UAS) using laser-based technology to protect military bases, critical infrastructure, and frontline personnel.

When will Fonon Technologies present the LSAD system?

Fonon Technologies will present the LSAD system at the Defense TechConnect Innovation Summit & Expo from November 19-21, 2025.

What markets does Laser Photonics (LASE) currently serve?

Laser Photonics serves Fortune 1000 manufacturers across multiple industries including aviation, aerospace, automotive, defense, energy, maritime, nuclear and space exploration.