Highlights:
- Kleos has received authorisation to ship the Scouting Mission satellites to the integration and launch site in preparation for launch, shipment will occur on the 11th of February
- A$630,000 contract revenue invoiced in December and received in
- Collaboration with a nation state
- Channel partner and data integrator agreement with
Kleos Space (ASX: KSS, Frankfurt: KS1), a space-powered Radio Frequency Reconnaissance data-as-a- service company, provides the following update for the quarter ending 31 December 2019 (Q4 2019), along with its Appendix 4C cash flow report.
Scouting Mission launch
Kleos’ Scouting Mission satellites are confirmed to launch aboard the Indian Space Research Organisation (ISRO) PSLV C49 from the Satish Dhawan Space Centre in Chennai, India. This is a rideshare mission, which includes satellites from other organisations, and was previously delayed due to issues unrelated to Kleos.
Kleos has now been instructed to ship the Scouting Mission satellites to the integration and launch site, shipment will occur on the 11th of February 2020 in preparation for launch.
Kleos satellites will launch into a 37-degree inclination orbit, covering crucial shipping regions for defence and security customers including the Strait of Hormuz, South China Sea, Australian coast, Southern US coast as well as the East and West African coast.
When launched, Kleos’ Scouting Mission satellites will form the foundation of a constellation that delivers a global picture of hidden maritime activity, enhancing the intelligence capability of government and commercial entities when the Automatic Identification System (AIS) is defeated, imagery unclear or targets out of patrol range.
Kleos Space CEO Andy Bowyer said, “While commercial launch capability has increased dramatically over recent years, launch volatility remains a challenge for all space-based companies. Despite the minor launch delay from December 2019, we are and will continue to work hard to get the satellites operational and generating revenues as quickly as possible.
We remain confident that the decision to re-select the Scouting Mission launch provider and orbit will significantly increase the long-term value of our data, providing optimised increased revisit rates over challenging equatorial regions.
Our independent radio frequency intelligence data is highly attractive to government and security organisations, enabling unprecedented detection of illegal maritime activity, irrespective of whether the vessel is using a broadcast transponder system.”
Contract revenue invoiced
Kleos invoiced just over A$630,000 in contract revenue in December. Payment was received in January.
Collaboration with a nation state
Towards the end of the reporting period, Kleos entered into a collaborative agreement with an undisclosable nation state to enhance that country’s maritime geospatial intelligence capabilities using Kleos’s Scouting Mission data.
The agreement is Kleos’ first Government agreement with the sea-bound nation state experiencing ongoing challenges monitoring and policing its coast.
Collaboration activities include developing and implementing scenario modelling and a provisional implementation to validate technical usability and real-world application of Kleos’ data; proposed combining of data sets and a subsequent mutual commercial strategy for allied states; and investigating opportunities to develop a value-added proposition for current and future maritime opportunities.
Kleos’ Scouting Mission satellites will assist the detection of illegal maritime activity such as piracy, drug and people smuggling and illegal fishing, even in instances when the Automatic Identification System (AIS) has been switched off.
Channel partner and data integrator agreement with Geollect
Kleos strengthened its footprint within the UK defence sector in January, signing a channel partner and data integrator agreement with UK geospatial intelligence and analysis company Geollect.
Geollect will procure and integrate data from Kleos’ Scouting Mission satellites to improve its dark vessel tracking capability and generate analytical intelligence. The agreement specifies guide data integrator pricing of €300,000 per annum, however actual revenues will be dependent on data access and the number of users required.
Geollect will also resell Kleos’ data as a channel partner with resale pricing to be negotiated on a case-by-case basis.
Geollect provides near real-time geospatial maritime intelligence for the defence, security, global cruise line and insurance sectors and is used by leading maritime organisations including the UK’s Royal Navy.
US subsidiary to target largest defence and security market
In October, Kleos formed a wholly owned US subsidiary to integrate and sell its maritime ISR (Intelligence, Surveillance and Reconnaissance) data into US defence and security government departments, agencies and industries.
The US subsidiary, Kleos Space Inc, enables Kleos to access US government funding and projects
which are otherwise restricted to US entities, such as the Small Business Innovation Research (SBIR) funding, US Air Force Accelerator program and other federal defence projects.
Karyn Hayes-Ryan, Head of Kleos US Strategy, has been appointed Director of Kleos US while Executive Chairman Air Commodore Peter Round (Ret) will act as interim CEO.
Outlook
At 31 December 2019, the company had A$0.43 million in cash. At 20th January, the company had A$0.96 million in cash.
Kleos’ Scouting Mission satellites will detect and geolocate global maritime radio frequency transmissions, even in instances where the mandatory Automatic Identification System (AIS) has been switched off. Its independent maritime intelligence data products will significantly improve detection of illegal activities at sea, including drug and people smuggling, illegal fishing and piracy.
This announcement has been approved for release by order of the Board.
