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Growth Strategy
−Removed: For 2025, we start with a pipeline of $137 million, consisting largely of U.S.
−Removed: government agency contracts.
−Removed: The opportunities that make up this pipeline include opportunities for expansion within existing agencies as well as new opportunities within the agency and/or new agencies themselves.
+Added: We also began to see movement during the fourth quarter of 2025 and into the first quarter of 2026 on several large projects in the federal and commercial marketplace, including several notable awards:
+Added: $1.9 million award from Department of Homeland Security (DHS) supporting large National Special Security Events (NSSE) scheduled for 2026.
+Added: $2.8 million award from a large commercial customer supporting a technical refresh of deployed hardware and software.
+Added: Our backlog as of December 31, 2025 was $3.3 million.
+Added: Our total validated pipeline as of December 31, 2025 was $173.4 million, consisting of single and multi-year opportunities for AI-driven edge, video, and sensor and data management platforms across our customer verticals.
+Added: Our pipeline includes opportunities at varying stages of progression with expected award timeframes over the next 18-24 months.
While many of these opportunities are multi-year engagements which are expected to be highly competitive, they represent years of work of developing the opportunity around our unique value proposition and differentiators in support of a sole source award or to position Airship AI as the company to beat.
−Removed: For 2025, we see significant investment and focus across the U.S.
−Removed: government in areas where we are highly active, including key efforts in our existing pipeline or efforts where we are piloting technology to assist with the larger effort.
−Removed: Within the 2025 Homeland Security, Justice, and Defense Department Appropriations Bills, some highly relevant areas called out for investment include:
−Removed: $300 million for new border security technology, $51 million for autonomous towers, $50 million for innovative technology, $90 million in funds around Operation Stonegarden which enhances cooperation and coordination amongst federal, state, local and tribal law enforcement groups to secure U.S.
−Removed: borders, and $305 million in the form of Nonprofit Security Grants for physical security enhancements for nonprofit organizations and house of worship that are at a high risk of terrorist attack, $4.1 billion in funds for custody operations which includes facilities and physical security measures for the 50,000 detention beds requested, $547 million to the Department of Justice for organized crime drug enforcement task forces to enhance multi-agency efforts combating transnational organized crime and reducing availability of illicit drugs, $1.14 billion to the Department of Defense for drug interdiction and counterdrug activities, and $220 million in direct support to combatant commanders through the Defense Innovation Unit to quickly obtain the cutting-edge technology and weapons they need and to rapidly get them to the warfighter.
−Removed: While this pipeline represents the path for substantial growth over the next 12-18 months, we are executing a number of strategies which we believe will bring our value proposition to a broader audience in the United States and abroad.
−Removed: Embrace Existing Direct Routes to Market While Building a Channel Program:
−Removed: Our focus in the near term is to continue building and expanding relationships with existing customers who we enjoy direct relationships with, while we build partnerships with global integrators who bring capabilities outside our core competencies along with access and placement to customers and verticals which we do not currently enjoy.
−Removed: We believe that these strategies can not only co-exist but be mutually beneficial.
−Removed: Expand Our Technology Partnerships and Integrations:
−Removed: Our focus remains on providing a best of breed “single pane of glass” solution for our customers data management challenges, which entails expanding our existing technology partnership ecosystem within our existing customer framework, as well as adjacent verticals.
−Removed: We believe this will drive new customer acquisitions as well as help expand our distribution capability into spaces our partners already participate.
−Removed: Commercial Expansion:
−Removed: Based on our existing early adopter customers and the rapid acceleration of AI in solving public safety and operational challenges, we see significant opportunities for expansion of our platform in the broader commercial marketplace.
−Removed: While we see opportunities across multiple industry verticals, our focus in the short term will be on those verticals that can immediately benefit from the work already done, significantly reducing additional development efforts along with shortening the sales cycle.
−Removed: These verticals include infrastructure, transportation, logistics, and retail.
−Removed: Strategic M&A Activities:
−Removed: As part of our commercial landing and government expansion strategies, we plan to focus on strategic acquisition targets with complementary technologies that can rapidly accelerate existing development efforts or add new capabilities to our platform that are supportive of our existing technology partnerships and routes to market strategies.
−Removed: We employed fifty-three employees as of December 31, 2024.
+Added: Outlook for 2026.
+Added: We enter 2026 optimistic about growth opportunities across both the federal and commercial market segments.
+Added: During the second half of 2025, we began to see returns from investments made earlier in the year to expand our sales and business development organization, reflected in increased customer activity, pipeline development, and pilot deployments.
+Added: Based on these results, we have significant additional investments planned across the company, preparing us to execute against anticipated awards and opportunities from the growing pipeline.
+Added: These investments include additional resources across our software development team, ensuring that we can continue to scale our platform as quickly as our customers need, while operating at the highest levels of cyber-security that our customers demand.
+Added: As we build out our back-office capabilities, we will continue to add to our customer-facing teams, including more partner-focused sales and marketing personnel.
+Added: As part of our on-going digital transformation efforts, we have successfully incorporated AI into our daily operational workflow, leveraging the best of AI to assist with making our existing team and processes more effective and efficient, rather than replacing people or processes.
+Added: All these efforts are aimed at getting to positive cash flow as soon as possible within 2026, driving increased value for our customers and shareholders.
+Added: Looking forward, we expect most of our revenue to come from the federal vertical in 2026, with meaningful new growth in the commercial vertical adding to our overall pipeline for 2027 and beyond.
+Added: Federal vertical.
+Added: In 2025, we expanded our footprint across multiple agencies within the Department of Homeland Security (“DHS”) and the Department of Justice (“DoJ”).
+Added: We initiated multiple new pilot efforts, including our first deployments of rapidly deployable Airship-built hardware and software solutions based on our edge analytics platform, Outpost AI.
+Added: Our current pipeline includes opportunities we estimate to be in the tens of millions of dollars;
+Added: however, pipeline represents potential opportunities and is not a guarantee of contract award or revenue.
+Added: We believe current U.S.
+Added: border and homeland security funding priorities support continued demand for solutions aligned with Airship AI’s capabilities.
+Added: For example, the One Big Beautiful Bill Act (“OBBA”) (H.R.
+Added: 1), signed into law on July 4, 2025, includes funding for border infrastructure and technology, including $6.2 billion for border security technology and investments that reference artificial intelligence and machine learning, approximately $46.5 billion for border barrier system construction and enhancements (including items such as cameras and sensors), and $5 billion for U.S.
+Added: Customs and Border Protection facilities and checkpoints.
+Added: We are actively supporting each of these efforts through our growing partner and integrator eco-system, leveraging our long-standing direct customer relationships.
+Added: Commercial vertical.
+Added: In 2026, we plan to continue expanding our regional partner and integrator ecosystem.
+Added: We believe a partner-led approach can accelerate customer acquisition and deployment efficiency versus solely direct routes to market, particularly where partners bring established customer relationships and complementary capabilities and services that we do not plan to build internally.
+Added: Early partner and customer engagements have further reinforced our view of the marketplace that there is not only room for but the need for a new entrant in the marketplace, one that can move quickly and be responsive to customer needs while still providing a robust enterprise level platform capable of meeting demanding operational and security requirements.
+Added: Platform expansion.
+Added: We are expanding the use of our edge AI capabilities across additional sensor modalities and operational platforms, including mobile autonomous platforms.
+Added: We believe analytics developed for fixed deployments can be adapted to mobile use cases, creating additional product and marketplace opportunities.
+Added: These deployments include emerging partnerships with robotic platforms built to solve physical security and public safety challenges.
+Added: Early customer engagements to date have been encouraging, noting these initiatives are in development and may not result in commercial deployments or revenue on expected timelines.
+Added: Go-to-market focus.
+Added: We believe early customer engagement, helping shape requirements based on validated operational needs, remains important to our ability to compete effectively.
+Added: Many opportunities, particularly in the federal market, involve multi-year sales cycles and can represent significant total contract value over their lifetimes (including potential programs that may extend into the $100 million range), but may take years to progress from early-stage activity to awards, if at all.
+Added: In 2026 and beyond, our sales and business development teams will remain focused on building our pipeline, advancing qualified opportunities, and collaborating with partners to develop and pursue joint programs across both the federal and commercial marketplaces.
+Added: We employed sixty three employees as of December 31, 2025.
The employees are headquartered in Redmond, WA and are supported by a growing team at our Customer Center of Excellence located in Charlotte, NC.
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