At the time of writing, DroneShield shares are trading for 19 cents each, 5.56% higher, after reaching an intraday high of 19.5 cents this morning.
Let's check the latest news from the ASX technology company.
What does this mean for the DroneShield share price?
Today's announcement represents DroneShield's largest government funding to date.
It's also timely with the company reporting its artificial intelligence, electronic warfare, and adjacent technology services are "increasingly in demand" amid growing geopolitical tensions.
DroneShield touts itself as a "global leader" in providing security solutions to counter aerial drone threats to more than 120 countries. Think of bigger drones trying to pick up intelligence or even acting as attack mechanisms.
Last year, the company won the Advanced Technologies Award at the 59th Australian Export Awards.
The latest grant will support further research and development.
DroneShield CEO Oleg Vornik said:
DroneShield appreciates the substantial support it receives from the Australian Government, through grants and export support for overseas sales, alongside of our current and under proposal contracts with the Australian Defence Force.
In March, DroneShield secured a $2 million order from an international government agency.
The company then formed a partnership with Nearmap Ltd (ASX: NEA) to bolster its platform software with Nearmap's best-in-class mapping data, serving government, intelligence, homeland security, and defence markets.
Despite a string of positive announcements in the lead-up to the 12-month peak in the DroneShield share price, its latest quarterly results for 2Q FY22 revealed the business is not yet cash flow positive.
However, the company is continuing to grow revenue, which remains its main focus.
The ASX defence and security solution business is quickly becoming one of the pioneers in its niche segment, so it's worth keeping a close eye on.
DroneShield share price snapshot
Over the past 12 months, the DroneShield share price has risen by almost 3%, peaking at 30 cents in May.
It's also managed to outperform the S&P/ASX 200 Index (ASX: XJO), which has fallen by 7% over the past year.
The company has a current market capitalisation of $82 million.
