Kleos Space’s data charts course for a US defence firm
Nano-satellite company Kleos Space (ASX: KSS) has launched an agreement for its data to be used in US defence programs.
Defence company Victoria Falls Technology has entered into a pact with Kleos to utilise data from its satellites. The data will be incorporated in Victoria Falls’ defence offerings and research proposals.
Among these will be projects proposed to the US Air Force’s Small Business Innovation and Research (SBIR) program. This program aims to speed up development and production of candidate technologies for use by the US Air Force.
The company has estimated a revenue generation opportunity of between $US750,000 ($1.1m) and $US3m ($4.3m). This is despite legal restrictions surrounding foreign companies participating in US defence projects — being only able to in partnership with local firms.
Kleos Space boss Andy Bowyer declared his company was, “very excited” to sign the agreement and “promised to work closely with them to ensure success”.
“This agreement highlights the benefit of our business model to provide commercially independent data for the defence and intelligence communities, allowing them to access an enhanced maritime security picture as well as verify existing anti-terrorism and crime monitoring data sets,” he said.
While Kleos shares are only up by 1 cent, it has now reached its IPO price after falling post-listing. It has doubled in the last month despite a half-yearly loss of over €2m.
However the company generated €800,000 from partnerships and will launch its first revenue generating satellites next quarter.