I posted a tip in the STT threads. Just re-posting here for a quick run down of D13.
SOI: 191M (277M escrow until Dec 2018, 284M performance shares, 51M performance rights, 2.1M unlisted options @ 40c, 40M unlisted options @ 2.5c)
Total SOI: 845M fully diluted
MC: $127M @ 15c
Cash: $5M (spending $2.8M Mar qtr)
- Commercial launch of MESMER version 1 in Jan 2017
- Funded through to sales (Half yearly report 28/2/17)
- Top 10 hold 58%, Top 20 hold 69%
- 13 patents granted, 22 applications for patents (Ann 2/11)
- Total drone market forecast to be US $100 billion by 2020
- Drone defense market forecast to grow to US $1.14 billion by 2022
- Military, homeland security and commercial applications
D13 is developing cutting edge software and communication systems that have the potential to transform the networking and communication fields as well as current applications in drone defence, mobile phone IT security and secure enhanced android phone systems.
Their key product, MESMER can detect, identify and mitigate either hostile or nuisance drones across a range of national security, defence or commercial applications. The solution utilises patented protocol manipulation technology to take over the drone when it flies into a defined air space. Once the operator has control of the drone the threat can be mitigated in way that is not dangerous to personnel or infrastructure in the area.
Recently, MESMER had been classified as EAR99 by the US Department of Commerce Bureau of Industry and Security (BIS). This allows MESMER to be exported from the US to all but a few restricted countries. CEO Jonathan Hunter said “...it allows us to legally begin the process of exporting the MESMER software from the US to other countries. A number of international Tier One customers have already begun commercial trials...in New Zealand, Singapore, Australia and the US with potential customers in police, defense and security organisations.” (Ann 20/2/17)
This month they announced that they had two weeks of successful operational tests and sales demonstrations of MESMER in the Gold Coast, Brisbane, Sydney and Canberra to government, military and law enforcement agencies along with additional demonstrations in New Zealand to government, military and law enforcement agencies this month. The company expects to provide updates on sales of MESMER in Australia upon finalisation of purchase orders following these demonstrations as well as providing news on initial sales in the US shortly thereafter. (Ann 13/3/17)
D13 also announced recently that a MESMER counter drone system has been licensed by Booz Allen Hamilton for potential use in prototype demonstrations made to the US military. (Ann 16/3/17)
Late last year they were awarded a US$400k contract by PAR Government Systems Corporation to provide a series of mobile applications that will be tested and evaluated by United States Department of Defense operational elements to improve situational awareness and combat coordination and to provide a tactical edge to US warfighter. (Ann 17/11/16)
In September 2016, they successfully demonstrated Mesmer, surpassing all expectations at Black Dart, the United States Department of Defense (DoD) premier counter-drone testing and evaluation exercise. During this time, Mesmer was evaluated against its competitors by stakeholders from a variety of US government agencies and international organizations; all charged with procuring Counter-Unmanned Aircraft Systems (UAS) solutions. (Ann 26/9/17)
In August 2016, they were one of 8 finalists from 42 applicants worldwide to be selected for the MITRE Challenge. More impressively, D13 was one of only 2 finalists to present a mitigation system rather than a detection only option.
The chairman and CEO, Jonathon Hunter, has over 25 years experience in leadership positions within the US Military and government advisory committees. He is also a former advisor to the National Academy of Science on defense technology applications.
D13 Price at posting:
15.5¢ Sentiment: Buy Disclosure: Held
