D13 Teams With Raytheon For Counter-Drone Systems. The agreement states the two companies will collaborate in the sales of the existing D13 MESMER system and co-develop new anti-drone capabilities.

Raytheon Is An Excellent Partner For Department 13. Raytheon has both contract vehicles and large scale integration capabilities to accelerate penetration of Department of Defense customers. Additionally, Raytheon has industry credibility to develop and manage large international installations.

Raytheon's Capabilities Can Enhance Implementations Of MESMER. Raytheon can add complementary sensor capabilities, increase situational awareness and add command and control systems, which allows MESMER users to deploy large multi-node anti-drone systems.

Interview with Ron Gula, President of Gula Tech Adventures

Earnings Impact Should Be Positive. While absolute gross profit dollars per MESMER node will be lower on sales through Raytheon, higher levels of node sales, much lower working capital needs and lower customer support costs should be a net positive for D13.

We Reiterate Our Buy Rating On Department 13 And Our Twelve Month Price Target Of $0.25 Per Share USD ($0.31 AUD).