AI Developer Launches Major Overwatch Drone Navigation Upgrade

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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) announced a significant upgrade to Overwatch, its leading GPS-denied navigation product, in a February 25 release.

This enhancement allows operators to export Overwatch-corrected waypoints, position fixes, and mission plans directly into their existing flight software. This capability significantly broadens the potential deployment of Overwatch across both commercial and defense fleets.

The update positions Overwatch as a versatile, hardware-independent GPS-denied navigation solution, or "drift fix," that can be integrated with virtually any commercial or defense drone, regardless of the manufacturer, flight controller, or ground control software, the company said. Drone manufacturers in regions with GPS challenges can now easily incorporate navigation-grade accuracy into their entire fleet without needing any hardware modifications.

"With Overwatch, operators can plan a mission, apply AI-driven sensor correction to every waypoint, and export the corrected mission to their existing flight ecosystem with no integration program," the release noted. "That means the same workflow now scales from a single-drone commercial pilot to a defense organization operating mixed fleets of hundreds of aircraft without platform-by-platform redevelopment."

Overwatch supports a wide range of drone ecosystems used in real-world operations, including:

• Drone flight control systems: ArduPilot, PX4, MAVLink
• Ground control stations: QGroundControl (QGC), Litchi, UgCS
• Drone OEMs: DJI, Autel, Parrot
• Robotics and development: ROS (Robot Operating System)
• Survey and mapping: Pix4D
• Cross-platform formats: KML, GeoJSON, XML, CSV

This broad support is strategically important, as modern drone operations, particularly in defense, security, and industrial sectors, are increasingly multiple vendors and software. Previously, most GPS-denied solutions were tied to specific hardware and software systems, requiring costly integrations and limiting adoption. Overwatch changes this by separating the intelligence from the aircraft; corrections are made within the Overwatch platform and delivered in the format needed by the operator's ecosystem.

Additionally, the company said it has granted options to two consultants assisting with business development. Ron Shenton received 125,000 options with an exercise price of CA$1.30, expiring on February 25, and Larry Kristof was granted the same number of options under identical terms.

U.S. Subsidiary Improves Eligibility for Bids

The company recently announced strategic moves to enter the U.S. market by setting up a subsidiary and launching its navigation and target acquisition application on a defense-grade Tactical Edition smartphone. The app provides an on-device software layer that facilitates GPS-denied navigation and laser-free target acquisition using the phone’s camera.

SPARC AI is also planning to register a U.S. subsidiary to enhance its participation in U.S. defense procurement processes and improve its eligibility for bids and tenders.

As a developer of next-generation target acquisition systems and navigation software, SPARC AI 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, designed for military use, is typically acquired through government and enterprise channels rather than public retail. SPARC installed the application on a device provided by Precision Technical Defence.

The app ensures uninterrupted navigation and enables targeting workflows even when offline, supporting reporting and route execution without network connectivity. It 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.

"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," said CEO Anoosh Manzoori. "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."

Analyst: Platform Gives 'Decisive Operational Advantage'

¹According to a February 12 technical review of the stock by Technical Analyst Stewart Thomson, Sparc AI's zero-signature, GPS-denied target acquisition system is designed for drones and robotic systems. It provides precise geolocation targeting, surveillance, tracking, and autonomous navigation, primarily catering to defense, first responders, and security firms. Modern navigation and targeting systems often face vulnerabilities such as jamming, spoofing, or signal loss, which can disrupt missions when GPS is unavailable.

"SPARC AI Inc. replaces GPS dependency with pure visual intelligence," Thomson noted, highlighting the company's use of patented algorithms that calculate exact geolocation through advanced mathematical models and device telemetry data.

The system offers a software-only target acquisition solution, eliminating the need for additional sensors, lasers, radar, lidar, or image recognition. Thomson described it as a true zero-signature solution, ideal for defense, search and rescue, law enforcement, and commercial operations.

"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 charts, Thomson observed a strong uptrend following a significant base pattern breakout. Over the past month, volume has decreased as the price has consolidated, which he interprets as 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: Battlefields Are Transforming

Four years after Russia's full-scale invasion of Ukraine in February 2022, the battlefield has undergone a dramatic transformation. The landscape, once dominated by tank battles in open fields, is now controlled by small, low-cost drones that have reshaped military tactics and survival strategies, according to a report by Sana Khan for Modern Diplomacy on February 24.

The use of first-person-view (FPV) drones — small, explosive-laden devices guided in real-time — has turned open terrain into lethal zones. Tanks, which once led offensives, now remain hidden under camouflage, serving more as stationary artillery than mobile weapons. This shift highlights how quickly innovation has changed the conflict, ushering both sides into what analysts describe as a new era of technologically advanced warfare, Khan wrote.

The battlefield has expanded into a vast "kill zone," with thousands of drones, many costing only a few hundred dollars, operating daily along the approximately 1,200-kilometer front line. Their affordability and precision have significantly altered casualty patterns. A recent report by the French Institute of International Relations notes that drone-inflicted casualties have increased from under 10% of total losses in 2022 to as much as 80% last year.

The conflict has evolved into what the institute calls an "air battle of mutual denial," where both sides strive to restrict the other's movement by saturating contested areas with surveillance and strike drones. This constant aerial threat has made any movement — whether rotating troops, evacuating the wounded, or resupplying positions — extremely risky, extending the danger well beyond traditional front-line trenches.

Grand View Research said the global drone market, valued at US$73.06 billion in 2024, 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.

The aerospace and defense sector is at a critical juncture as it moves into the latter part of the decade, as highlighted in the "2026 Aerospace and Defense Industry Outlook" released by the Deloitte Research Center for Energy and Industrials on November 13, 2025. The report notes that recent industry challenges, 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 focused on the swift deployment of AI-enabled systems and collaborative combat aircraft, with Deloitte analysts noting that "'Speed to field' is becoming the unifying metric across portfolios."

Ownership and Share Structure²

Regarding ownership and share structure, approximately 26% of the company is owned by insiders and management, including CEO Manzoori with 23.43%. The remaining shares are held by retail investors.

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

The company's market cap is CA$28.15 million, with 21.65 million shares outstanding, trading within a 52-week range of CA$0.20 to CA$1.60.