AI Developer Uncovers Excellent Growth Potential With Offline Target Solution

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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) has declared the successful development and rollout of its entirely offline GPS-denied navigation and laser-free target acquisition app on a defense-grade Tactical Edition smartphone, as stated in a January 27 announcement.

Crafted for demanding conditions, SPARC AI guarantees operational navigation and reporting even when GPS is inaccessible, compromised, or spoofed, and facilitates camera-based target location identification without the necessity for a laser range finder or extra equipment, the company reported.

Samsung's Tactical Edition is specifically designed for military applications and is typically procured through government and enterprise channels rather than being available to the general public. SPARC AI has integrated its application onto the Tactical Edition device supplied by its reseller, Precision Technical Defence, providing an on-device software layer that ensures navigation continuity and supports targeting workflows while operating completely offline.

On the Tactical Edition phone, SPARC AI offers two key functionalities:

• GPS-Denied Navigation (Fully Offline): Delivers a continuous navigation solution when GNSS is inaccessible or unreliable, facilitating route execution and reporting without depending on network connectivity.
• Laser-Free Target Acquisition (Phone Camera): Allows an operator to use the phone camera to aim at a target and record its geolocation, outputting defense-preferred MGRS along with other coordinate formats, without requiring 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 stated. "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."

Utilizing Telemetry in Place of Satellite Positioning

SPARC AI stated that it crafts and develops cutting-edge solutions for environments where GPS is unavailable, enhancing perception and situational awareness. The company mentioned it has devised an innovative Target Acquisition System and Autonomous Flight solution for drones that operates without the need for GPS, satellites, lidar, radar, image recognition, or any other intricate hardware or software systems.

A significant challenge soldiers encounter on the battlefield is the jamming of GPS and communication systems, which can render autonomous vehicles ineffective.

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

The system instead utilizes telemetry — incorporating elements like a gyroscope, accelerometer, and compass — to navigate 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."

Agreement with Precision Technic Defence Group

In a November 4 announcement, the company revealed it had signed a non-exclusive Preferred Reseller Agreement with Precision Technic Defence Group (PTD), a prominent global provider of advanced defense solutions. Under this agreement, PTD will resell and distribute SPARC AI's target acquisition systems, autonomous navigation technology, and overwatch target intelligence platform throughout Australia, Europe, and the United States.

PTD is a global leader with more than 40 years of experience in delivering cutting-edge defense solutions. With operations spanning Europe, the United States, and Australia, the company supports a diverse array 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 stated 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 represents a significant milestone for SPARC AI, expanding its global distribution network and aligning the company with one of the world's most established defense solution providers. By integrating SPARC AI's GPS-denied geolocation and autonomous intelligence technology with PTD's proven expertise and strong defense customer relationships, both companies will expedite the adoption of SPARC AI technologies in the defense sector.

Setting Up a US Subsidiary

Alongside the launch of their new product, SPARC AI announced that they are in the process of creating a subsidiary in the United States, reported Jonathan Brown for Stockhouse on January 27.

This new division is expected to enhance the company's eligibility for defense procurement channels, streamline its participation in government contracts, and strengthen its overall commercial presence in the U.S. defense market.

"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 noted.

Companies in the unmanned sector could benefit if U.S. President Donald Trump's proposed defense budget for fiscal year 2027 (FY27), currently around US$839 billion, comes to fruition, 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 Centering on AI-Enabled Systems

The aerospace and defense sector is at a pivotal point as it advances into the latter part of the decade, according to the "2026 Aerospace and Defense Industry Outlook" released on November 13, 2025, by the Deloitte Research Center for Energy and Industrials. The report highlights that recent factors impacting the industry — such as digital transformation, supply chain disruptions, talent shortages, and geopolitical events — are now intersecting with new drivers like agentic AI, emerging vehicle technologies, and the rapid advancement of autonomous systems.

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

Drones are being employed in various capacities, 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 escalating. "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," stated Scott Sacknoff, president and index manager at Spade Defense Index. Spade, based 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 projected to grow to US$163.6 billion by 2030, with a compound annual growth rate (CAGR) of 14.3% from 2025 to 2030. This expansion 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 led 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

Approximately 40% of the company is owned by insiders and management, including CEO Manzoori with 33%. The remainder is held by retail investors.

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

The company's market cap is CA$20.75 million with 21.65 million shares outstanding. It trades within a 52-week range of CA$0.19 and CA$1.60.