OTTAWA - KWESST Micro Systems Inc. (NASDAQ: KWE) (TSXV: KWE), a developer of tactical systems for military and security forces, has reported that its current auditor, KPMG LLP, will not seek re-election at the upcoming annual general meeting and will cease to serve as the company's auditor for the fiscal year ending September 30, 2024. The company is in the final stages of appointing a new auditor, with an announcement expected soon.
In light of the auditor transition, KWESST has rescheduled its annual general meeting to July 30, 2024. At this meeting, shareholders will vote on the appointment of the successor auditor, among other agenda items. The company has emphasized that KPMG's decision is part of a planned transition and not due to any disagreements with the company's management, board, or practices.
According to the notice provided to KPMG, there have been no reservations or modified opinions in the auditor's reports for the past two fiscal years or any subsequent period. KPMG has reviewed this notice and concurred with the information presented.
KWESST specializes in the digitization of tactical forces, providing real-time situational awareness and targeting information from various sources, including drones. Their product portfolio also includes countermeasures against electronic detection, lasers, and drones, as well as a new line of non-lethal products branded PARA OPS™ for law enforcement applications. The company is headquartered in Ottawa, Canada, with offices in the UK and UAE.
This announcement is based on a press release statement by KWESST Micro Systems Inc.
InvestingPro Insights
As KWESST Micro Systems Inc. (NASDAQ: KWE) (TSXV: KWE) prepares for its annual general meeting and the appointment of a new auditor, investors and stakeholders are closely monitoring the company's financial health and stock performance. In this context, InvestingPro provides data and insights that could offer a deeper understanding of the company's current situation.
InvestingPro Data shows a challenging picture for KWESST, with a market capitalization of only $2.39 million USD. The company's revenue growth has been impressive over the last twelve months as of Q2 2024, at 34.83%, and even more so on a quarterly basis, skyrocketing by 201.03% in Q2 2024. Still, this growth has not translated into profitability, with the company operating at a significant loss, as evidenced by an operating income margin of -859.31% and a gross profit margin of -15.58%.
InvestingPro Tips highlight several concerns for potential investors. The stock is currently trading near its 52-week low, which could indicate an undervalued opportunity or reflect underlying business challenges.
Moreover, the Relative Strength Index (RSI) suggests that the stock is in oversold territory, which might attract those looking for a rebound. With KWESST quickly burning through cash and facing weak gross profit margins, these financial indicators are essential for investors considering the company's future prospects.
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