The $25B Global Security Crisis You Didn't Know About
And One Small Cap Ready to Ride the Wave
This Small-Cap is Developing New Security Tech to Address the Ghost Gun Threat
The world is grappling with rising security threats – from frequent mass shootings to evolving terrorism tactics and even the proliferation of so-called “ghost guns.” Modern threats are not just more numerous; they’re also more sophisticated.
As 3D-printed weapons and non-metallic arms slip past legacy security systems, advanced screening solutions have never been more crucial.
Liberty Defense (TSXV: SCAN) is working on advanced security technology aimed at improving public safety. This narrative explores the escalating threat landscape and how Liberty Defense’s innovative products are poised to reshape security screening.
The Escalating Security Threat Landscape
Security risks are escalating fast. The U.S. saw over 420 mass shootings by mid-2024, adding to a multi-year surge in gun violence. Meanwhile, terrorism and geopolitical tensions have governments scrambling to protect vulnerable targets.
But the threats are evolving. Ghost guns—untraceable, 3D-printed weapons—are flooding the streets. Law enforcement recovered just 1,629 in 2017—by 2023, that number exploded to 27,490, a 1,600% surge. These plastic and composite firearms bypass traditional metal detectors, making them a nightmare for conventional security systems.
Criminals are adapting—security must keep up. Non-metallic explosives, ceramic knives, and smuggled contraband require smarter detection. Insider threats at airports, venues, and high-traffic locations are adding pressure to upgrade outdated systems.
The good news?
Technology is advancing, too. AI-powered millimeter-wave scanners and high-definition 3D imaging can detect what older systems miss—without slowing down everyday life.
Liberty Defense is at the forefront of this shift, creating next-generation solutions designed to meet the threats of today and tomorrow.
Liberty Defense’s Game-Changing Technologies
Liberty Defense, led by a team of industry veterans, is on a mission to revolutionize threat detection.
Through partnerships with top research institutions (like MIT and Pacific Northwest National Labs), Liberty has developed two flagship technologies:
1️⃣HEXWAVE: AI-Powered, Contactless Screening
What is HEXWAVE? It’s a next-generation walk-through security portal that uses active millimeter waves and AI to perform real-time, contactless scans for weapons and explosives.
Imagine walking through a screening gate without pausing, emptying your pockets, or even knowing you’re being scanned – that’s the HEXWAVE experience. It’s designed to be seamless and non-invasive, enabling high foot traffic flow (over 700 people per hour can be scanned).
Capabilities
HEXWAVE can detect both metallic and non-metallic threats, which is a critical advantage. Traditional metal detectors would fail to spot 3D-printed plastic guns or ceramic knives, but HEXWAVE’s 3D radar imaging and AI can identify these items. It also flags liquids, powders, and other contraband. Notably, the system was designed to minimize hassle: travelers don’t need to divest common items like phones, keys, or jackets.
The AI analyzes the 3D image data (about 400,000 data points per scan) in real time to distinguish harmless objects from threats, then instantly signals security operators with a simple go/no-go decision and highlights the threat location.
Ease of Deployment
With a portable, battery-powered design, HEXWAVE can be easily moved or temporarily installed at venues – from stadium entrances to school campuses – without needing major infrastructure. It works indoors or covered outdoors, integrates with cameras and alarms via IoT connectivity, and protects privacy (no personal images are shown or stored).
All these features make HEXWAVE a plug-and-play solution for boosting security at airports, sports arenas, office buildings, tourist attractions, and more.
Real-World Use
After successful beta trials at airports and venues, HEXWAVE is now entering full production. The TSA is actively testing HEXWAVE for employee screening at U.S. airports, and Liberty Defense received an initial order of 20 units from industry partner Rapiscan.
In 2024, Liberty sold 20+ HEXWAVE units, meeting its target, and is aiming for 90+ units in 2025. This momentum indicates strong market validation for the technology.
2️⃣ HD-AIT: Upgrading Checkpoint Scanners
While HEXWAVE secures entrances and public spaces, Liberty’s HD-AIT focuses on enhancing traditional airport checkpoints. HD-AIT stands for High-Definition Advanced Imaging Technology – essentially an upgrade kit for the body scanners (AIT units) already used in airports worldwide. These are the machines you stand in with your hands up. Many existing scanners are aging and due for an upgrade.
What HD-AIT Does
Liberty’s HD-AIT kit retrofits older scanners with better hardware and AI software, boosting their resolution and detection algorithms. The result is improved imaging capable of detecting new and emerging threats (think smaller explosives or cleverly disguised items) that legacy scanners might miss. It’s a cost-effective way for airports to level up security without buying all-new machines.
TSA Endorsement
The TSA has recognized the value of HD-AIT. In fact, they selected Liberty Defense for an airport scanner enhancement program, investing over $5 million so far and signaling a potential $100+ million contract opportunity for deploying these upgrades. TSA’s support speaks volumes – it means HD-AIT met rigorous “best-in-class” standards and new Homeland Security detection requirements. For travelers, this could mean faster lanes (arms-down scanning) and fewer false alarms, as the upgraded scanners are smarter and more accurate.
Completing the Security Blanket
Together, HEXWAVE and HD-AIT cover a spectrum of needs. HEXWAVE can be the first line of defense at soft targets – catching threats before they enter a facility – while HD-AIT ensures the last checkpoint (like boarding gates) is as strong as possible. Both leverage AI and next-gen imaging, aligning perfectly with the future direction of security tech.
Rising Demand for Airport and Venue Security
Security screening is becoming increasingly important due to evolving threats. New TSA mandates require 100% screening of all U.S. airport employees by 2026, forcing airports to upgrade. With over 1.2 million employees and rising insider threats, fast, AI-powered solutions like HEXWAVE and HD-AIT are in high demand.
Beyond airports, venues, offices, schools, and hospitals face growing security risks. Mass shootings, workplace violence, and weapon smuggling have pushed organizations to adopt non-intrusive, high-throughput screening. HEXWAVE’s touchless AI detection keeps crowds safe without slowing them down—a game-changer for stadiums, events, and corporate security.
The market is booming. Global security screening is set to grow from $11.7B in 2024 to $25.7B by 2034 (8.2% CAGR). Regulations, new threats, and AI innovation are fueling adoption. Liberty Defense is developing security screening solutions designed for airports, venues, and other high-traffic locations
From R&D to Revenue—And Growing Fast
Liberty Defense has moved from R&D to commercialization, with increasing sales activity.
Revenue Surge: Liberty Defense reported $3M in revenue in 2024. The company has projected revenues of $14M in 2025 and over $50M in 2026, subject to market conditions and operational execution
Unit Sales Scaling Up: 20 units sold in 2024, targeting 90+ in 2025. Larger orders and repeat customers are driving expansion. Liberty Defense aims to achieve profitability by Q4 2025, depending on market conditions and operational performance
TSA & Strategic Partners: TSA has invested $5.7M in Liberty’s screening technology. Industry estimates suggest a potential $100M+ market opportunity in airport security upgrades, though actual results may vary.
Stock & Growth Potential: Liberty Defense is currently trading at a ~$69M market cap. Investors should conduct their own research and review financial disclosures before making investment decisions
With increasing demand for security solutions, Liberty Defense is expanding its presence in the market.
A Smarter, Safer Future
Security threats are evolving fast, and the need for smarter, more adaptable solutions has never been greater. Liberty Defense is meeting this challenge with AI-powered detection technology that enhances safety without disrupting daily life.
HEXWAVE and HD-AIT offer a seamless, effective way to detect threats in airports, venues, and high-risk locations. They address not just today’s security concerns, but the emerging risks of tomorrow—from 3D-printed weapons to insider threats.
With a strong market position, government support, and growing demand for next-gen security, Liberty Defense is at a pivotal moment. As its technology moves from trials to full-scale adoption, the company is well-positioned to play a key role in the future of security screening—helping create safer spaces without sacrificing convenience or efficiency.
Disclaimer
For Informational Purposes Only – Not Investment Advice
This newsletter is provided solely for informational purposes and does not constitute financial, investment, legal, or tax advice. The content is based on publicly available sources and independent analysis, but we do not guarantee its accuracy, completeness, or timeliness. Readers should conduct their own due diligence and consult with a qualified financial professional before making any investment decisions.
No Offer, Recommendation, or Solicitation
Nothing in this newsletter should be construed as an offer, recommendation, or solicitation to buy or sell securities, commodities, or any other investment products. Liberty Defense (TSXV: SCAN) and other companies mentioned are referenced for informational purposes only. Investing in securities involves risks, including the potential loss of principal. Past performance is not indicative of future results.
Forward-Looking Statements
This newsletter may contain forward-looking statements that reflect expectations, projections, and possible future events related to Liberty Defense and the broader security industry. These statements are based on current market conditions, assumptions, and beliefs and are subject to risks, uncertainties, and factors that may cause actual results to differ materially. There is no guarantee that forward-looking statements will be realized.
No Liability
We expressly disclaim any liability for direct, indirect, incidental, consequential, or other loss or damage arising from the use or reliance on the information provided. Readers assume full responsibility for their investment decisions and should be aware that markets fluctuate, and investing carries inherent risks.
No Position in Securities
Neither the authors of this newsletter nor the publisher hold positions in any securities mentioned. Additionally, we have not received compensation from any company referenced in this newsletter for coverage. Our analysis is independent and unbiased.
Third-Party Content & External Links
This newsletter may include links to third-party websites, reports, or data sources. We do not endorse or take responsibility for the accuracy or reliability of content from external sources. Readers should verify any third-party information before relying on it.
Regulatory Considerations
This newsletter is intended for distribution in jurisdictions where such content is legally permitted. Certain securities, investment strategies, or financial products discussed may not be available or suitable for all investors. Readers should be aware of their local regulations and legal requirements before making investment decisions.
Right to Modify
We reserve the right to update, modify, or remove this disclaimer at any time without notice. Your continued use of this newsletter constitutes acceptance of any changes to these terms.
Final Reminder
Invest at your own risk. Conduct thorough research. Consult professionals. We make no guarantees, express or implied, regarding any investment outcomes. Stay informed, invest wisely.