We're pleased to share a significant milestone from our portfolio company XTEND, which has secured an $8.8 million contract from the Department of Defense's Irregular Warfare Technical Support Directorate (IWTSD). This achievement represents more than just a contract win – it's a powerful validation of XTEND's pioneering approach to AI-powered tactical systems.

What makes this contract particularly noteworthy is XTEND's Precision Strike Indoor & Outdoor (PSIO) system's unique position as the first DoD-approved platform for both indoor and outdoor loitering munition applications. This dual-capability breakthrough showcases the kind of innovative thinking that initially attracted us to XTEND.

The PSIO system exemplifies the convergence of multiple investment theses we've long believed in:

• AI integration in tactical systems
• Reduced operator cognitive load in complex environments
• Dual-use technology suitable for varied operational contexts
• Focus on operator safety through autonomous capabilities

XTEND's technology has already proven its worth in actual conflict scenarios, with active deployment by the Israel Defense Forces (IDF). This real-world validation, combined with the DoD contract, demonstrates the company's ability to bridge the gap between innovation and practical military utility – a crucial factor in defense tech success.

The company's commitment to domestic production, with facilities in Florida and North Carolina, aligns perfectly with NDAA requirements and positions XTEND advantageously for future defense contracts. This manufacturing strategy reflects the kind of forward-thinking operational planning we look for in our portfolio companies.

Looking Forward

With deliveries scheduled to begin in Q1 2025, this contract represents just the beginning of what we believe will be significant growth for XTEND. The company's successful collaboration with IWTSD over the past two years has built a strong foundation for future opportunities in the defense sector.

As investors, we're particularly excited about how this contract validates multiple aspects of XTEND's business model:

• Technical innovation in AI and autonomous systems
• Strong relationships with key defense stakeholders
• Ability to meet rigorous military requirements
• Scalable manufacturing capabilities

This contract win reinforces our conviction in XTEND's potential to reshape tactical drone capabilities while delivering significant value to both military customers and investors.

As investors in XTEND, we are proud to support their mission of advancing defense technology capabilities. This post reflects publicly available information and should not be considered as investment advice.