Defense Tech Co.'s GPS-Denied Navigation Finds Breakthrough in US$163.6B Drone Market

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1. Ownership and Share Structure Information

The information listed above was updated on the date this article was published and was compiled from information from the company and various other data providers.

Sparc AI Inc. (SPAI:CSE; SPAIF:OTCQB; 5OVO:Frankfurt) announced the completion and launch of its fully offline GPS-denied navigation and laser-free target acquisition application on a defense-grade Tactical Edition smartphone, according to a January 27 release.

Designed for challenging environments, SPARC AI ensures operational navigation and reporting even when GPS is unavailable, compromised, or spoofed, and allows for camera-based target location identification without the need for a laser range finder or additional equipment, the company said.

Samsung’s Tactical Edition is tailored for military use and is typically acquired through government and enterprise channels rather than public retail. SPARC AI has installed its application on the Tactical Edition device provided by its reseller, Precision Technical Defence, offering an on-device software layer that maintains navigation continuity and enables targeting workflows while functioning entirely offline.

On the Tactical Edition phone, SPARC AI delivers two essential capabilities:

• GPS-Denied Navigation (Fully Offline): Provides a continuous navigation solution when GNSS is unavailable or unreliable, supporting route execution and reporting without relying on network connectivity.
• Laser-Free Target Acquisition (Phone Camera): Enables an operator to use the phone camera to point at a target and record its geolocation, outputting defense-preferred MGRS along with other coordinate formats, without needing a laser range finder.

"With nearly every soldier now carrying a mobile device, the opportunity to deploy SPARC AI on phones is on the same order of magnitude as our drone opportunity," SPARC AI Chief Executive Officer Anoosh Manzoori said. "Getting there wasn’t straightforward; delivering reliable navigation and target location fully offline, on a standard handset, without extra sensors or bolt-on hardware, is a much harder technical problem than it looks."

Using Telemetry Instead of Satellite Positioning

SPARC AI said it designs and develops advanced solutions for GPS-denied environments that enhance perception and awareness. The company said it has created an innovative Target Acquisition System and Autonomous Flight solution for drones without the need for GPS, satellite, lidar, radar, image recognition, or any other complex hardware or software solutions.

One challenge soldiers face on the battlefield is GPS and communication jamming, which can leave autonomous vehicles blind.

"They may think they're in a particular location," Manzoori told Streetwise Reports. "But in fact, the GPS is pointing them to the bad guys or somewhere completely different."

The system instead relies on telemetry — everything from a gyroscope to an accelerometer and a compass — to steer the vehicle.

"If you have this (telemetry) information, you can then start to build a three-dimensional view of a device relative to the terrain," he continued. "We know how high we are, we know which way we're pointing to, our line of sight to a particular point out in the field, and we know the intersection of our line of sight where it hits the ground. So, then we can work out the geo coordinates of that point of interest."

Deal With Precision Technic Defence Group

In a November 4 release, the company announced it had entered into a non-exclusive Preferred Reseller Agreement with Precision Technic Defence Group (PTD), a global leader in advanced defense solutions. Through this agreement, PTD will resell and distribute SPARC AI's target acquisition systems, autonomous navigation technology, and overwatch target intelligence platform across Australia, Europe, and the United States.

PTD is a global leader with over 40 years of experience in delivering advanced defense solutions. With operations across Europe, the United States, and Australia, the company supports a wide range of military and security organizations through its network of seven offices worldwide.

"This partnership with Precision Technic Defence marks a defining moment in SPARC AI," Manzoori said at the time "PTD's long-standing relationships with defense forces and proven track record make them an ideal partner to accelerate the adoption of our products."

This agreement is a significant milestone for SPARC AI, enhancing its global distribution network and aligning the company with one of the world's most established defense solution providers. By combining SPARC AI's GPS-denied geolocation and autonomous intelligence technology with PTD's proven expertise and strong defense customer relationships, both companies will accelerate the adoption of SPARC AI technologies in the defense sector.

Establishing a US Subsidiary

Alongside the introduction of their new product, SPARC AI revealed that they are in the process of establishing a subsidiary in the United States, wrote Jonathan Brown for Stockhouse on January 27.

This new branch is anticipated to improve the company's chances of qualifying for defense procurement channels, simplify their involvement in government bids, and bolster their overall business presence in the U.S. defense sector.

"SPARC AI stated that the move reflects increasing domestic interest in its technology and aligns with the company's long‑term strategy to grow its footprint within key global defense ecosystems," Brown wrote.

Companies in the unmanned sector stand to gain if U.S. President Donald Trump's proposed defense budget for fiscal year 2027 (FY27), now about US$839 billion, becomes a reality, according to a research note by Needham & Co. Analyst Austin Bohlig dated January 8.

"If enacted, we expect a growing share of incremental defense spending to be directed toward unmanned and autonomous technologies, which will significantly expand the total addressable market across the unmanned ecosystem," Bohlig wrote.

The Catalyst:  Defense Priorities Focusing on AI-Enabled Systems

The aerospace and defense industry is at a crucial juncture as it moves into the latter half of the decade, according to the "2026 Aerospace and Defense Industry Outlook" published on November 13, 2025, by the Deloitte Research Center for Energy and Industrials. The report emphasizes that recent influences on the industry — such as digital transformation, supply chain issues, workforce shortages, and geopolitical events — are now converging with new factors like agentic AI, new vehicle technologies, and the swift progress of autonomous systems.

Defense priorities are increasingly focused on the rapid deployment of AI-enabled systems and collaborative combat aircraft. Deloitte analysts noted that "'Speed to field' is becoming the unifying metric across portfolios."

Drones are being utilized in various roles, including AI-driven navigation, defense contracts, emergency response technologies, and logistics automation, as reported by Kate Stalter for U.S. News & World Report on December 4, 2025. The military's use of drones is also on the rise. "Roughly every 20 years, new technologies arise that change the nature of warfare. Drones are the latest innovation, and the war between Russia and Ukraine is the laboratory highlighting their importance for future conflicts around the world," said Scott Sacknoff, president and index manager at Spade Defense Index. Spade, located in Bethesda, Maryland, tracks the performance of companies involved in the development, manufacturing, and operations of U.S. defense, security, and aerospace industries. The Invesco Aerospace & Defense exchange-traded fund (PPA) follows the Spade Defense Index.

According to Grand View Research, the global drone market was valued at US$73.06 billion in 2024 and is expected to grow to US$163.6 billion by 2030, with a compound annual growth rate (CAGR) of 14.3% from 2025 to 2030. This growth is largely driven by rapid technological advancements in drones, improvements in battery efficiency, AI-powered autonomous systems, and enhanced imaging sensors, which are broadening drone applications across various sectors.

In 2024, North America dominated the drone market, capturing over 39% of the market share. The hardware segment accounted for the largest revenue share by component, exceeding 58% in 2024, while the multi-rotor segment held the largest revenue share by product, according to researchers.

The financial stakes are significant. A December 5 report for Business Insider by Chris Panella highlighted that "billions of dollars are at stake" in the race to develop defense drones. The Pentagon plans to allocate billions for aerial combat drones in fiscal year 2026 as part of a broader investment in autonomous systems. Additionally, the Air Force is requesting funds for the research and development of autonomous "loyal wingmen" drones that can operate alongside crewed combat aircraft or conduct missions independently. The Department of Defense also plans to dedicate US$3.1 billion to counter-drone technology.

Ownership and Share Structure¹

About 40% of the company is held by insiders and management, including the CEO Manzoori with 33%. The rest is retail.

Other major shareholders include Anthony John Haberfield with 2.59% and Acdelerative Investments Pty Ltd. with 1.02%.

Its market cap is CA$20.75 million with 21.65 million shares outstanding. It trades in a 52-week range of CA$0.19 and CA$1.60.