9 Reasons Why Liberty Defense (LDDFF) Could Be One of the Best Plays in the Security Industry in 2023*

Growing Market for Security Threat Solutions – The North American physical security market is projected to increase from $37.4 billion in 2021 to $48.2 billion by 2026, growing at a CAGR of 5.2% during that period.^[75]

The global concealed weapon detection systems market is projected to grow at a 6% CAGR between 2020 and 2030.^[76]

Emerging Threats – Weapons such as 3D-printed and ghost guns, non-metal knives, explosive devices, and more can fail to be detected by today’s outdated technology.^[77] This has prompted an urgent demand for threat detection solutions that can pick up a wide variety of evolving weapons quickly, effectively, and unobtrusively.

In 2016, the TSA compiled a list of over 300 explosive materials that could be used in an attack against the U.S. aviation sector.^[78] According to the TSA, new and emerging threats are occurring on a frequent basis, requiring them to update and/or replace both hardware and software security screening systems. ^[79]

Markets and Markets points to increasing acts of terrorism leading to government mandates for advanced security systems at airports, commercial centers, and tourist destinations.^[80]

Large Location Potential – Locations in which new threat detection technology could be used effectively are not limited to the 1,000+ U.S. airports, ^[81] and the 41,708 airports around the world.^[82]

Potential locations could also include the 130,930 public and private K-12 schools in the U.S. alone.^[83] And, it should be noted, only 2-10% of U.S. schools currently screen with metal detectors,^[84] which are not effective for new non-metal threats.

Other locations include sports and music venues, churches, retail businesses, hospitals, courthouses, subways, theaters, post offices, and other public and private spaces.^[85] What’s more, locations may be indoor or outdoor.^[86]

HEXWAVE Technology – With technology licensed from MIT, HEXWAVE uses millimeter wave, 3D imaging, and AI to detect all types of concealed metallic and non-metallic weapons and other threats. The system allows for rapid, automated screening using a high throughput, contactless, walkthrough portal. It can be used as either a checkpoint solution or to enhance current systems and provide layered defense at indoor and outdoor locations for early threat detection in preventing violent crimes and mass casualties.^[87]

And in addition to purchases of HEXWAVE machines, the company projects a recurring annual revenue stream based on a high-margin, 5-year maintenance plan that includes software and AI updates.^[88]*

Multi-Technology, Multi-Income Stream Company – Liberty Defense (LDDFF) is not solely focused on one product. Their projected roadmap supports ongoing profit potential and future growth. The company is also developing next-generation aviation security technology, including the millimeter wave-based, High-Definition Advanced Imaging Technology (HD-AIT) body scanner and shoe screener walk-through technologies. These have been exclusively licensed and developed at the Pacific Northwest National Laboratory (PNNL) where it was funded by the Department of Homeland Security.^[89]

Proven Leadership and Experienced Team – Liberty Defense (LDDFF) has an experienced executive team and advisors with proven track records in security, management, and corporate finance. Their managers and engineers have formerly worked for multi-billion-dollar security industry companies.^[90]

On Track for Commercialization – The HEXWAVE is currently being beta-tested in different verticals, including the largest airport in Canada. Liberty Defense (LDDFF) is also working with TSA to evaluate HEXWAVE’s potential use at a TSA-designated airport location.^[91]

Company leadership expects to commercially release HEXWAVE to the market by early 2023. The HD-AIT body scanner upgrade kits are projected to follow in 2024 and the shoe scanning equipment would follow soon after.

Growing Reputation – In October 2021, Liberty Defense (LDDFF) received a contract award for $500,000 USD as part of the Transportation Security Administration’s (TSA) On-Person Screening Capability Program for demonstration and evaluation of the HEXWAVE and its expanded capabilities for screening Aviation Workers at a TSA designated location to enhance detection and throughput performance. Liberty Defense will be working closely with the TSA to provide overall screening effectiveness with security being the number one priority, but also improving the throughput for a practical and effective process.^[92]

Well-Funded for Commercialization – In March 2022, the company announced the closing of an $8.6 million oversubscribed private placement.^[93] The company’s treasury contained over $5 million as of March 22, 2022. Market cap as of 4/28/2022 was $32.5 million.^[94]