(TheNewswire)
February 1, 202 4 – TheNewswire - Toronto, Canada – SPARC AI INC. (CSE:SPAI)(OTC:EGTTF) (Frankfurt:5OV0) (“ SPAI ” or the“ Company ”) is pleased to provide an update on operations.
Restructure andFunding:
On August 4, 2023, the Company completed a restructure,and 18,951,061 Shares were cancelled resulting in an issued sharecapital of just 9,090,536 Shares. As part of the restructure, theCompany divested a subsidiary with $1.3 million in liabilities butretained all patents and intellectual property. On December 4, 2023,the Company completed a private placement (oversubscribed) of$371,875. The board supported the private placement by taking 44% ofthe allocation.
The Company currently has just 12,484,316 shares onissue. The funds raised in the private placement are covering allrequired development work to embed the Company’s IP into a microchipand all working capital for the next 12 months .Furthermore, the Company plans to submit an R&D refund claim atthe end of the year which may extend our funding runway to the middleof 2025. The development work is expected to be completed in the next90 days marking a significant milestone for the Company as it willhave a commercial ready product and can start taking orders andgenerate revenue.
DevelopmentUpdate:
The Company is working closely with an embedded systemsengineering and software company to assist with the development of amobile application and a microchip with embedded SPARC AI patentedcode and algorithms. The works are progressing as planned and withinbudget.
The development team has conducted a thoroughexamination of the patent, dissecting its methodologies, processes,and technologies. We are also taking the opportunity to update thecode base and make our platform more scalable, secure, robust andadding more functionality. A summary of the development work for thepast 4 weeks:
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The team has made significant progress in developingcode capable of retrieving precise readings of the camera's positionand orientation. This functionality is pivotal in ensuring an optimalview of points of interest, aligning with the SPARC patent'sspecifications.
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Integration of the VMAS Z Service, enabling us toaccess altitude data for various lat-lon positions. This service playsa crucial role in obtaining altitude information necessary forcalculations and processes.
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The implementation of the 'slip_target' function hasbeen developed to allows for the accurate calculation of expectedheight at specified locations. This calculation is based on distancetravelled and changes in altitude, as prescribed by the SPARC patent.
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The codebase can also effectively iterate throughretrieved lat-long-alt tuples, comparing retrieved altitude withcalculated height to identify hits or near misses. This process alignswith the patent's methodology for pinpointing matching coordinates ofpoints of interest.
Looking ahead, our focus now shifts towards cameraintegration, mobile app development, integration into microchip andcomprehensive integration testing. This phase marks a critical stepforward in realizing our objectives and functionality.
BusinessModel
The Company has completed a detailed review of itsbusiness model. Under previous management the business model involvedbespoke and customized solutions per client engagement. This resultedin a high cost and long sales lead times. The model was not scalableand resulted in a low margin, low volume revenue model.
The new SPARC AI microchip will allow us to provide asimple plug and play solution to new customers. Customers can plug thechip into their devices or drones, test and launch. SPARC AI plans tocharge a fix fee for the microchip and a SaaS recurring monthly feefor the application. We will offer tiered pricing based on thecapability and functionality of the chip and application allowingSPARC AI to build a high margin recurring revenue model. For customersthat may require additional integration or customization, SPARC AIwill refer its development partner to undertake this work. This allowsSPARC AI to generate additional revenue without the fixed cost ofhiring expensive development teams to remain on standby.
Management is currently building a shortlist ofpotential clients, distributors and partners in Australia and UnitedStates. The Company will be targeting the markets in military,security, surveillance, search and rescue and reconnaissanceactivities.
Our MarketTiming
GPS is operated by the US Space Force and there arecurrently 31 satellites that run the entire GPS system. To calculate alocation, 4 satellites are required with an accuracy between 30 to500cm. The primary causes of GPS denial include interference,spoofing, signal blockage and GPS constellation failure.
In GPS-denied environments or situations where the GPSsignals are not available, SPARC AI can record geospatial data usingits proprietary patented algorithms to create new navigation systemsand applications. Alternative GPS technologies for identifyinglocations are complex, expensive, and may provide approximateestimations only which include gravity anomaly, magnetic anomaly,celestial and lidar technologies. They may also require connections tothe internet or satellite that result in solutions that are notcovert. Further, these systems appear to measure the location of thesensors only, not the location of distant objects at differentlocations to the sensor.
A report from the Committee on Armed Services, U.S.Senate raise the need to develop GPS alternatives and the Departmentof Defence is exploring several alternatives. https://www.gao.gov/assets/gao-22-106010.pdf . According to Grand View Research the market size of GlobalPositioning Systems is US$94 billion.
We are developing the SPARC AI microchip at a time whenthe military, government and corporates are activity looking for asolution to GPS-denied environments.
The Company looks forward to providing further updatesto the market.
For more information contact:
Website: https://www.sparcai.co
Investor Presentation: ClickHere
Anoosh Manzoori, CEO SPARC AI INC. Email: anoosh@sparcai.net Phone: +61.3.9666338 |
THE CANADIAN SECURITIES EXCHANGE HASNOT REVIEWED AND DOES NOT ACCEPT RESPONSIBILITY FOR THE ACCURACY ORADEQUACY OF THIS RELEASE. NO SECURITIES COMMISSION OR OTHER REGULATORYAUTHORITY HAS APPROVED OR DISAPPROVED THE INFORMATION CONTAINEDHEREIN.
FORWARD LOOKING INFORMATION
This news release contains forward-looking statementsand forward-looking information within the meaning of applicablesecurities laws. These statements relate to future events or futureperformance. All statements other than statements of historical factmay be forward-looking statements or information.
The Company provides forward-looking statements for thepurpose of conveying information about current expectations and plansrelating to the future and readers are cautioned that such statementsmay not be appropriate for other purposes. By its nature, thisinformation is subject to inherent risks and uncertainties that may begeneral or specific and which give rise to the possibility thatexpectations, forecasts, predictions, projections or conclusions willnot prove to be accurate, that assumptions may not be correct and thatobjectives, strategic goals and priorities will not be achieved. Theserisks and uncertainties include but are not limited those identifiedand reported in the Company’s public filings under the Company’sSEDAR profile at www.sedar.com. Although the Company has attempted toidentify important factors that could cause actual actions, events orresults to differ materially from those described in forward-lookinginformation, there may be other factors that cause actions, events orresults not to be as anticipated, estimated or intended. There can beno assurance that such information will prove to be accurate as actualresults and future events could differ materially from thoseanticipated in such statements. The Company disclaims any intention orobligation to update or revise any forward-looking information,whether as a result of new information, future events or otherwiseunless required by law.
Accordingly, readers should not place undue reliance onthe forward-looking statements, timelines and information contained inthis news release. Readers are cautioned that the foregoing list offactors, assumptions and exclusions is not exhaustive.
The forward-looking statements and informationcontained in this news release are made as of the date hereof and noundertaking is given to update publicly or revise any forward-lookingstatements or information, whether as a result of new information,future events or otherwise, unless so required by applicablesecurities laws or the Canadian Securities Exchange. Theforward-looking statements or information contained in this newsrelease are expressly qualified by this cautionary statement.
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