AI Developer Launching Breakthrough Defense Technology in U.S.

1. Sparc AI Inc. is a billboard sponsor of Streetwise Reports and pays SWR a monthly sponsorship fee between US$3,000 and US$6,000.
2. As of the date of this article, officers, contractors, shareholders, and/or employees of Streetwise Reports LLC (including members of their household) own securities of Sparc AI.
3. Steve Sobek wrote this article for Streetwise Reports LLC and provides services to Streetwise Reports as an employee.
4. This article does not constitute investment advice and is not a solicitation for any investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Each reader is encouraged to consult with his or her personal financial adviser and perform their own comprehensive investment research. By opening this page, each reader accepts and agrees to Streetwise Reports' terms of use and full legal disclaimer. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company. 

For additional disclosures, please click here.

1. Disclosure for the quote from the Stewart Thomson article published on February 12, 2025:

1. For the quoted article (published on February 12, 2025), the Company has paid Street Smart, an affiliate of Streetwise Reports, US$3,500.
2. Author Certification and Compensation: Stewart Thomson was retained and compensated as an independent contractor by Street Smart for writing this article. Mr. Thomson is a retired Canadian financial advisor who has passed the Canadian Securities Course as well as additional technical analysis courses that were mandated by his former employer and approved by Ontario regulatory bodies. For the past 15 years, he has been editing and writing numerous financial newsletters that have a strong focus on charts.  The recommendations and opinions expressed in this content reflect the personal, independent, and objective views of the author regarding any and all of the companies discussed. No part of the compensation received by the author was, is, or will be directly or indirectly tied to the specific recommendations or views expressed.

2. 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) is preparing for the U.S. market by establishing a subsidiary and launching its navigation and target acquisition application, according to a February 18 release.

The company recently introduced its navigation and target acquisition app on a defense-grade Tactical Edition smartphone. This application provides an on-device software layer that enables GPS-denied navigation and laser-free target acquisition using the phone’s camera.

SPARC AI said it is also planning to register a U.S. subsidiary to facilitate participation in U.S. defense procurement processes and streamline eligibility for bids and tenders.

"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," 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."

SPARC AI, a developer of next-generation target acquisition systems and navigation software, has launched a fully offline GPS-denied navigation and laser-free target acquisition app on a defense-grade Tactical Edition smartphone. Samsung’s Tactical Edition phone is designed for military use and is typically acquired through government and enterprise channels rather than public retail. SPARC installed the application on a device provided by Precision Technical Defence.

This application offers on-device software that ensures uninterrupted navigation and enables targeting workflows, even when the phone is offline, SPARC said. The ability to provide continuous navigation when GPS is unavailable or unreliable supports reporting and route execution without relying on network connectivity. The app also uses the phone's camera for laser-free target acquisition, allowing operators to point the camera at a point of interest and record its geolocation without needing a laser range finder.

Intelligence Layer Between Sensors, Mission Outcomes

Earlier this month, the company announced an upgraded version of Overwatch, which enables drones to continuously enhance their telemetry data performance using machine learning and AI models. Over time, Overwatch learns the behavior of each drone’s telemetry stream and applies corrections to minimize targeting and navigation drift, thereby improving accuracy, reliability, and repeatability without requiring new hardware.

SPARC AI Overwatch acts as the intelligence layer between standard drone sensors and mission outcomes. Through a brief calibration flight and ongoing operational learning, Overwatch identifies drone-specific bias patterns and corrects drift during real-world use, helping to standardize performance across various platforms, environments, and hardware variations.

"SPARC AI Overwatch strengthens with use," a release noted. "Each connected drone contributes operational data that expands validated operating conditions and improves statistical confidence across flight regimes, angles, altitudes, and sensor profiles. As the dataset grows, Overwatch’s priors tighten, accelerating onboarding, improving correction quality, and increasing defensibility over time."

Designed for challenging environments, SPARC AI ensures operational navigation and reporting even when GPS is unavailable, compromised, or spoofed, and enables camera-based target location identification without the need for a laser range finder or additional equipment. Samsung's Tactical Edition is specifically tailored for military applications and is typically acquired through government and enterprise channels rather than being available to the general public. SPARC AI has integrated its application onto the Tactical Edition device provided by its reseller, Precision Technical Defence, offering an on-device software layer that ensures navigation continuity and supports targeting workflows while operating completely offline.

"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," Manzoori said at the time. "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."

Modern Systems Can Be Jammed or Spoofed

¹According to a February 12 technical review by Technical Analyst Stewart Thomson, Sparc AI has introduced a zero-signature, GPS-denied target acquisition system for drones and robotic systems. This system offers precise geolocation targeting, surveillance, tracking, and autonomous navigation. The company primarily targets defense, first responders, and security firms as its main customers.

Modern navigation and targeting systems can be vulnerable to jamming, spoofing, or signal loss, which can disrupt missions when GPS fails.

"SPARC AI Inc. replaces GPS dependency with pure visual intelligence," Thomson noted. "The company's patented algorithms calculate exact geolocation using advanced mathematical models and device telemetry data."

Customers receive a software-only target acquisition system without the need for sensors, lasers, radar, lidar, or image recognition. It's a true zero-signature solution, ideal for defense, search and rescue, law enforcement, and commercial operations, Thomson said.

"Overwatch is covert, resilient, and drone-agnostic — empowering defense, rescue, and commercial operators with real-time situational awareness and decisive operational advantage," he said.

On the stock's weekly chart, a strong uptrend is visible following a significant base pattern breakout, Thomson said. Over the past month, volume has decreased as the price has consolidated, which is a bullish sign.

An intriguing inverse head and shoulders pattern suggests a move to the CA$1.60 area highs is imminent. The key 20,40,10 series MACD indicator resembles a bullish cobra snake, poised to strike and push the price higher. This has formed an enticing bull wedge, and now there's an upside breakout that completes this technical setup, he said. The inverse head and shoulders pattern targets not only the CA$1.60 high but also prices as high as CA$1.85-CA$2.00. Thomson rated the stock a Speculative Buy.

The Catalyst: Aerospace, Defense Sectors at Pivotal Point

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

The aerospace and defense sector is at a pivotal point as it progresses 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 swift advancement of autonomous systems. Defense priorities are increasingly centered 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 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 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," 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.

Ownership and Share Structure²

Approximately 26% of the company is owned by insiders and management, including CEO Manzoori with 23.43%. The remainder is held by retail investors.

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

The company's market cap is CA$23.13million with 21.65 million shares outstanding. It trades within a 52-week range of CA$0.20 and CA$1.60.