We’re excited to share our latest quarterly update with you, highlighting another period of strong progress, high-impact partnerships, and product innovation. Your continued support has been instrumental as we expand our footprint across government and commercial sectors.  

Market Traction 

DHS Contract

We're proud to announce a major milestone: the Department of Homeland Security (DHS) has awarded AvaWatz the Phase II contract for our GENIE product (codename: Clarifier). This follows the successful completion of our pilot phase and represents a powerful endorsement of both our technology and our execution capabilities. It's a significant step forward in our mission to deliver high-precision vision and perception models for critical national applications.

CDAO Contract

In another breakthrough, AvaWatz received a direct award from the Office of the Secretary of Defense’s (OSD) Chief Digital and Artificial Intelligence Office (CDAO). This strategic contract mechanism is designed to accelerate the deployment of cutting-edge AI and data science capabilities across the Department of Defense. With this award, we’re now actively supporting mission-critical initiatives within the CDAO, with expansion opportunities into the U.S. Army and other DoD branches already on the horizon.

Our sales pipeline remains strong, bolstered by these recent wins and continued engagement across the defense and private sectors.

Product Update

AvaAI: A Paradigm Shift in AI Development

We’re proud to announce that AvaAI, our groundbreaking end-to-end platform that radically accelerates the AI development lifecycle, is now fully launched. AvaAI streamlines every phase, from data collection to deployment, transforming a process that once took months or years into one that now takes weeks.  

Think of traditional AI like building a house from scratch. AvaAI gives you smart prefab components, expert architects, and real-time monitoring to prevent cracks before they form. 

AvaAI is already powering robotics and computer vision applications for defense and high-stakes commercial use cases.

Introducing AXIA: The AI-Insight Bridge 

AXIA is the application layer that turns AI outputs into actionable business intelligence. It includes: 

·      SentinelAI – Real-Time Monitoring & Alerting  

·      InsightIQ – Business Analytics & Insights  

·      ArchiveAI – Post-Hoc Analysis & Search  

AXIA delivers faster decision-making, operational efficiency, and in-depth historical analysis, all in one seamless platform that allows customers to achieve immediate return on their investments. 

Commercial Expansion of ARWEN

Our ARWEN security and surveillance solution is making waves in new industries. We now have two active pilots:

Daycare Video Analytics: Tracks children and staff activity, detects injuries, and monitors attentiveness: currently deployed in a daycare chain. We are also in talks with ElderCare facilities to run a similar pilot.

Smart Campus Monitoring: Delivers real-time crowd tracking, threat detection, and activity reports. Pilots are active at a 250-acre educational campus and a 100-acre resort.

These pilots demonstrate how our military-grade AI is solving pressing safety challenges in childcare, healthcare, hospitality, education, and other industries while preserving privacy.

Capital Raise & Community Involvement

We’ve now raised over $5.5 million, including $2.3 million in non-dilutive funding from the DoD and DHS. Over 1,000 investors have joined us on this exciting journey.

We’re currently raising capital via equity crowdfunding on Wefunder, and the campaign will be closing soon. This is a limited-time opportunity with early investor discounts still available (but not for long).  

We invite you to share this opportunity within your network. Let others know about AvaWatz’s mission, momentum, and how they can be a part of the future of AI-driven autonomy.

Thank you again for your support. As always, if you have questions, don’t hesitate to reach out.

Cheers!

Rajini