Liberty Defense Holdings DETX

Liberty Defense Holdings, Ltd. is an emerging leader in AI based contactless security technology for detecting concealed metallic and nonmetallic weapons and threats. The company’s mission is to protect communities and preserve peace of mind through superior security detection solutions while increasing ease of travel and convenience at major checkpoints. It offers two security screening solutions the HEXWAVE™ system and the HD AIT Upgrade Kit. HEXWAVE™ uses millimeter wave advanced 3D imaging and artificial intelligence to detect concealed metallic and nonmetallic weapons including traditional metallic guns and knives as well as novel threats such as liquid plastic and powder explosives 3D printed guns and other prohibited items without requiring visitors to remove common items like cell phones or keys. The system allows for rapid automated screening using a high throughput contactless walkthrough portal which alleviates many of the shortcomings of legacy metal detector based screening processes. Liberty Defense believes HEXWAVE™ can empower gathering spaces to address the chronic epidemic of mass shootings and terrorist attacks as well as emerging risks such as 3D printed weapons in a cost effective manner while improving the visitor experience. The company estimates that the addressable market for its urban security and aviation employee screening opportunities totals approximately US$10 billion. HEXWAVE™ is currently in early commercial deployment with approximately US$0.91 million in revenue for the nine months ended September 30 2025 and US$1.01 million for the year ended December 31 2024.

The company generates revenue primarily through the sale of its HEXWAVE™ security scanners under purchase agreements where title transfers to the customer. Customers also purchase optional subscription services for software operating system and standard AI algorithm updates typically offered for five years and paid in advance or on an annual basis. An annual maintenance and support service plan is offered to repair any faulty or damaged parts following a one year warranty on the product. In partnership with Amsource Capital Liberty Defense provides flexible leasing options for HEXWAVE™ of up to seven years with monthly payment options. Revenue from the HD AIT Upgrade Kit is expected to follow a similar product sale model once the kit completes TSA certification and enters commercial sales. The HD AIT Upgrade Kit remains in the product development and TSA certification phase with initial commercial sales anticipated in 2026 subject to successful completion of the TSA’s certification process. To date substantially all purchasers of HEXWAVE™ scanners have also purchased the maintenance and AI subscription service. The company also reports royalty obligations to MIT and Battelle related to licensed technology which affect net sales calculations.

Liberty Defense Holdings, Ltd. positions itself as an innovator in the security screening industry with a focus on AI enabled detection of both metallic and nonmetallic threats. The company’s HEXWAVE™ system competes with legacy walk through metal detectors and newer AI based systems such as Evolv Express SmartGateway LPC71 Series ProVision QPS 201 and QPS Walk. Liberty Defense claims that its technology delivers superior detection effectiveness lower false alarm rates higher throughput and reduced labor costs compared with traditional metal detector screening. For the HD AIT Upgrade Kit the primary competitor is Leidos Wideband System which seeks to upgrade the existing TSA HD AIT scanners but Liberty Defense holds a licensed technology from Battelle Memorial Institute Pacific Northwest National Laboratory and has received TSA funding for development. Competitive advantages include the ability to detect nonmetallic threats mobility and flexibility of the HEXWAVE™ platform automated threat location identification and a growing data set that continuously improves AI algorithms. The company also cites its strategic global partnerships with Rapiscan and Viken as leverage for scaling its business and reaching new customers.

The company serves a diverse customer base that includes regional airports courthouses correctional facilities universities research laboratories stadiums transportation hubs and government facilities. Early adopter customers of HEXWAVE™ are located mainly in North America and have included entities in the stadium transportation and government facility sectors. Liberty Defense has delivered its first HEXWAVE™ unit to the TSA for formal evaluation and has also sold systems in foreign countries such as the Netherlands Chile Columbia Canada Malaysia. Specific customer names disclosed in the filing include the Transportation Security Administration which received a unit for testing. The company expects its customer base to diversify further as it expands marketing and sales efforts across additional vertical industries and geographic regions.