Quarterly report results bode well for Kleos Space
ASX-listed Kleos Space has posted a positive Q3 result on the back of success in South America, the launch of a US-based subsidiary and approval for a December 2019 launch for the company’s signature Scouting Mission satellites.
In its third quarter update, Kleos said the four satellites of the Scouting Mission would launch aboard a Indian rocket PSLV C49 from the Satish Dhawan Space Centre.
The satellites have passed their deployment checks to ensure they will function with PSLV rocket dispensers.
“Our scouting mission satellites are mission ready and we are on track to be able to commence revenue generation in the first quarter of 2020,” said Kleos Space chief executive Andy Bowyer.
“By changing launch providers and orbit, Kleos has increased the frequency of its coverage over crucial shipping regions such as the Strait of Hormuz and the South China Sea.
“Data from these regions is highly valuable to defence and security customers as they are increasingly prone to dark maritime activity.”
The company originally planned to launch on a Rocket Lab rocket from New Zealand. The Scouting Mission comprises four nano-satellites made by Danish satellite manufacturer GomSpace.
Kleos, based in Luxembourg and listed on the Australian Securities Exchange, plans to launch a constellation of 20 satellites providing global monitoring of maritime radio frequencies.
That allows accurate location of vessels in distress, as well as those seeking to avoid attention by not broadcasting automatic identification system (AIS) signals, the maritime version of aircraft transponder identification systems.
Government agencies can use that information to enhance border and maritime security and safety. It’s also of great interest to port operators and now the insurance sector.
During the third quarter, Kleos received three new commercial pre-orders for its maritime geo-location data-as-a-service products from South American data integrators.
The company said it secured $3.3 million funding through the issue of convertible notes. It plans to use that funding to accelerate business development and revenue generating activities, including hiring additional sales and support professionals.
Kleos has made significant progress in accessing the US market. Following a competitive process, the company was awarded a contract to participate in the US Air Force Space Vehicle Directorate's Catalyst Space Accelerator program.
That’s a 12-week program to lift USAF awareness and rapid acquisition of commercial dual-use space technology.
Kleos was also awarded a USAF Small Business Innovation Research contract.
To further its US business, Kleos formed a wholly owned US subsidiary, Kleos Space Inc, to access US funding and projects that are restricted to US entities.
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