Liberty Defense (SCAN) Lytham Partners Spring 2025 Investor Conference summary

Industry trends and market drivers

• Security threats are evolving with the rise of 3D-printed and non-metallic weapons, increasing the need for advanced detection technologies.

• The global security technology market is valued at $11.7 billion in 2024 and is growing due to geopolitical tensions and rising mass shootings.

• Regulatory mandates, such as the TSA's requirement for employee screening by April 2026, are driving demand for new screening solutions.

• New laws, like California's hospital threat detection requirement, are expanding the addressable market.

• Distribution centers, government facilities, and entertainment venues are increasingly seeking advanced screening solutions.

Technology and product innovation

• HEXWAVE is a walkthrough screening portal using safe millimeter wave and AI to detect metallic and non-metallic threats in real time.

• The Advanced Imaging Technology (AIT) Upgrade Kit, funded by a $6 million TSA investment, will enhance over 1,000 airport scanners, saving significant government costs.

• HEXWAVE is FCC-approved for indoor and outdoor use, features real-time 3D imaging, and supports biometric and surveillance integration.

• The system is designed for high throughput, allowing continuous flow without stopping or posing.

• Ongoing AI and software updates provide future-proofing and recurring revenue through subscriptions and maintenance.

Commercial traction and partnerships

• HEXWAVE is deployed at major airports, courthouses, correctional facilities, and distribution centers in the U.S., Canada, Brazil, and Chile.

• TSA's employee screening mandate is a major growth driver, with an estimated 500 units needed at U.S. airports in the next 12 months.

• Partnerships with MIT, Pacific Northwest National Labs, and industry leaders like Rapiscan and K2 support commercialization and distribution.

• Recent demonstrations led to immediate interest from major law enforcement agencies and universities.

• Leasing options and aggressive pricing are being adopted by customers to facilitate adoption.