Saturday, 18 May 2024


KWESST Micro Systems Announces Q2 2024 Financial Results By

Baytex Reports Shareholder Meeting Results By

Ottawa, Ontario–(Newsfile Corp. – May 16, 2024) – KWESST Micro Systems Inc. (TSXV: KWE) (TSXV: KWE.WT.U) (NASDAQ: KWE) (NASDAQ: KWESW) (FSE: 62UA) (“KWESST” or the “Company“) is pleased to announce the highlights of its fiscal 2024 (“Fiscal 2024“) second quarter (“Q2“) results. This announcement is a summary only and should be read in conjunction with KWESST’s unaudited condensed consolidated financial statements and related management discussion and analysis, for the three- and six-month period ended March 31, 2024 (“Q2 2024 FS“). Q2 2024 FS have been filed on SEDAR and EDGAR.

Highlights for the Period:

KWESST’s commitment to execution of our strategy, our strong focus on cash management and capital allocation, and the beginning of KWESST’s pivot from development stage to revenue ramp-up is evidenced by the following key metrics for the period:

  • revenue for Q2 increased by 200% over the same period last year, including a 121% increase in revenue related to ARWEN Product Line, with relatively modest change in OPEX;

  • sales and marketing expenses for Q2 were reduced 64% over the same period last year; and

  • overall year to date (“YTD“) Fiscal 2024 cash used in operations was reduced by 46% over the same period last year.

In Q2 and YTD Fiscal 2024, KWESST’s total revenue increased by $0.3 million and $0.1 million, respectively, and gross profit increased by $0.2 million for the three-month period versus the comparable prior year period, and for YTD Fiscal 2024, we earned $0.2 million or gross margin of 30%, compared to $0.2 million or gross margin of 44% in the same prior period. The increase in Q2 revenue was mainly due to working through the backlog of ARWEN sales orders. KWESST’s Q2 operating loss decreased by 5% compared to the prior year period, whereas its YTD Fiscal 2024 operating loss increased by 18% compared to the prior year period mainly due to reaching commercial feasibility for the Para OPS products resulting in the expensing of all related costs in the quarter as compared to the costs being capitalized as development costs in Fiscal 2023, along with increased G&A expenses.

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KWESST Fiscal 2024, along with its Fiscal 2023 performance reflects the Company’s strategy of focused investments in key areas to drive revenue growth: securing large defense contracts, and the commercialization of the Company’s line of Non-Lethal Munition Systems including the PARA…

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