Good afternoon. Thank you all for joining us today for the Lytham Partners Fall 2021 Investor Conference. My name is Joe Dorame, Managing Partner of Lytham Partners. Our next presentation comes from Kraken Robotics Inc., ticker symbol PNG on the TSX Venture and KRKNF on the OTC. Presenting from the company is Greg Reid, Chief Operating Officer. Today, Greg will run through the company's slide presentation. A copy of the presentation can be found on today's webcast or on the company's website at krakenrobotics.com. As a reminder, management will be available for one-on-one virtual meetings. If you'd like to sign up, please visit lythampartners.com/virtual and click the One-on-One Meeting Request button. Now I'd like to turn the presentation over to Greg Reid, Chief Operating Officer of Kraken Robotics. Greg?
Thank you, Joe, and we appreciate the invite and the chance to speak to investors today. Good day, everyone. Kraken Robotics is a Canadian-based subsea robotics company. We sell both sensors and subsea robotics equipment. On the front slide of your investor deck, you will see a picture of two of our subsea products that we sell. The one on the left is called the KATFISH, and the one on the right is called a ThunderFish. I think the simplified terms for everybody, we will just refer to these as underwater drones. We predominantly sell to the military market, but increasingly we are starting to sell to the commercial market as well.
To give you a sense, the two products that you see on the front page there, the KATFISH, that's a shallow water product used in underwater mine hunting, and a sale of that KATFISH with associated equipment can range anywhere from CAD 2 million-CAD 5 million per system. That is a tethered product that goes about 300 meters deep and still attached to a surface vessel. On the right-hand side is a product called ThunderFish that is battery operated. It's not attached to a boat, so it is autonomous. It can go 6,000 meters deep. This particular product, the ThunderFish, we don't sell it as a product on a commercial basis. We use it in a service offering where we provide the service to customers to go out and collect the data. That's just a very high level of two of our key products.
Switching to page 3 is the corporate overview. On the right-hand side, we show a number of our customers. As I said, a lot of them are military related, whether they're actual navies or whether they're defense contractors that sell into these navies. As well, increasingly, we'll talk about on some future slides here, we have a growing customer base in the offshore wind market. You can see both TenneT and Ørsted at the bottom of the customer list there. What is our technology used for? It's used for applications like seafloor mapping and inspection of critical underwater infrastructure. That could be everything from subsea cables to subsea pipelines, looking for things that have fallen to the ocean floor like shipwrecks or airplanes, as well as through a recent acquisition, we can provide images of buried things as well.
Traditional Kraken technology would find things at a long distance and high resolution on the ocean floor. With the recent acquisition we did of a company called PanGeo Subsea, we can now find things penetrated that have been buried into the seafloor. We're almost 10 years old. We have customers in approximately 15 countries, and as I noted, there are a number of the leading navies and defense contractors out there. Approximately 220 employees today, North American base with offices in Germany, the U.K., Denmark, and Brazil. From a financial point of view, we're at an inflection point where we've gone from selling products, one unit here, one unit there, to the point where we've won some recent programs where we're starting to see a significant ramp in revenue and multi-unit orders.
Last year in 2020, we did CAD 12 million of revenues, and we lost a few million CAD. This year, our current guidance is for CAD 28 million-CAD 30 million in revenues based off of some recent program wins over the last year. We're forecasting positive EBITDA this year as well. As I mentioned previously, we closed an acquisition a couple of months ago called PanGeo. Really what that does is it moves us more into the commercial market as opposed to the defense market where most of our business is today. It also moves us beyond being predominantly a product-related company and provides us a more recurring service revenue base, primarily targeted at the offshore wind market. What does that mean?
Ultimately, it means we have a company with a more balanced revenue mix between defense and commercial, as well as a more balanced mix between product sales and service. From a management and technical team and board of directors, I would highlight that this is a niche industry. We have some very qualified people in the business that are recognized as experts in their field on a global basis. We always make the point that putting things deep in the ocean is harder than putting something in outer space, and a lot of people don't realize that. You've got extreme pressures, you've got corrosion. Undersea, there is no GPS, and your RF communications is very limited. Once you drop the equipment into the ocean, it has a range of factors that are working against it. That means that it's a tough business to be in.
We have some very good people, and we have high barriers to entry. On slide four, just from a market cap point of view, just highlight we're approximately CAD 100 million market cap. Management and insiders own almost 20% of the company, and we have a strategic investor, a U.K.-based offshore services company that owns roughly 11% of us. That is a company called Ocean Infinity, and they have a variety of offshore equipment that incorporates our batteries and our sensors. Excuse me. On slide five, to give you a sense of the market. We divide it into both military and the commercial market. Roughly a CAD 10 billion market by 2025. That's more than a doubling from where the market is currently today. On the military side, we predominantly play in the top silo there on the left-hand side called mine countermeasures.
This is looking for underwater mines, of which there are a lot of those out there from the Second World War, in geographies like the Baltic. You've got other geographies, such as the Middle East, where there's concerns about mines being laid in the Strait of Hormuz, and you've got challenges in the South Pacific and the South China Sea. All these geopolitical factors have created an uptick in demand for mine countermeasures equipment, and we supply into that market. On the commercial market, there's a variety of niche markets out there across a bunch of different applications. hydrography and seabed mapping is one of the larger parts of that market. If you think about offshore energy companies and offshore wind companies, they need cable and pipeline surveys done.
They need surveys done before they build an offshore wind farm, then they need inspection of that sub-sea equipment when wind farms are built and operating. Then you've got certain niche segments such as marine archaeology which is shipwrecks. You've got a new emerging market called seafloor mineral extraction, where you have companies that are out there exploring the ocean, looking for polymetallic nodules that would be used in electric vehicles. That's a sense of various end markets that we address. On slide 6, offshore wind. We put this in here. We didn't really address this market very much at all until our recent acquisition of PanGeo. PanGeo, the bulk of their revenue comes from the offshore wind market predominantly in Europe.
The key theme here is that given all the renewable energy and climate change mandates that are emerging, that offshore wind, which is big in Europe and big in China today, will become increasingly important in a number of other geographies, including the U.S. You could see between now and the end of this decade, a 4-fold increase in offshore wind capacity. In the U.S. on the East Coast, there's been some large wind farms that are moving towards construction phase. On the right-hand side of this chart, you can see a variety of what that equipment looks like underwater. Today, the majority of the offshore wind market are fixed platforms, but you'll start to hear more and more about these floating offshore wind platforms, and you can see they all have mooring chains that are holding them to the ocean floor.
Our technology, both on the sonar and acoustic sides, can be used across a variety of survey and inspection opportunities in this market. Slide seven gives you a sense of what is our strategy, where did we come from, and where are we going. As I mentioned, we started out as a sensor company. Our focus was really on the technology called synthetic aperture sonar, or we use the acronym SAS. SAS technology forms the basis of, or underpins the basis of all our other products. As we've evolved over the years, we've gone from selling just the sensor onto other people's underwater vehicles to providing our own underwater vehicles, underwater platforms, on a product basis.
Over the last couple of years, both organically and through an acquisition of PanGeo Subsea, we've increasingly taken our technology and started to use it in a service offering basis, which we call robotics as a service. Ultimately, as we go forward, we will be a combination of both products, mainly on the military side, and then services, mainly addressing the commercial market. I'll talk about our financials in a few slides upcoming, but really what's driving our financials this year and next year is a strong existing backlog predominantly driven by two big wins for us. Roughly a CAD 40 million backlog as a result of some military programs, both with the Danish Navy and with the Polish Navy.
In this particular case, what you see here on this slide is you see a picture of our vessel, the Ocean Seeker, with both our KATFISH equipment on the back of it, as well as the launch and recovery equipment associated with that. Over the next year and a half, we will deliver roughly six systems to both the Danish and the Polish Navy, which sees them upgrading their mine hunting equipment after a technology bake off with ourselves and some big competitors. In this particular case, you can see we competed against Northrop Grumman, a large U.S. defense contractor, and Thales, a large French defense contractor, and were successful in these programs. Overall, we look at what our pipeline of current contract pursuits is. It is more than CAD 250 million on the product side, and we have broken into several silos.
On the left-hand side, you see the international navy sonar upgrades. Think of those as similar type opportunities as Denmark and Poland that we have recently won. If we look at the various countries where we are bidding our KATFISH product into upgrades, there is a variety of NATO countries, as well as a variety of friendly Asia-Pacific and Middle Eastern countries as well. If you look at the various countries listed there, the opportunities, the bids in each of these countries range from two systems on the low side to upwards of 12 systems on the high side. We are talking CAD 5 million-CAD 10 million opportunity on the low side to CAD 60 million-CAD 70 million opportunity on the big side. That is for the KATFISH product.
The second picture on the top there, where you see two Navy SEALs holding an AUV, putting it into the water. In that case, we sell our synthetic aperture sonar sensors into those underwater vehicles. The dollar volume isn't as big because we're talking about a CAD 300,000 or CAD 400,000 or CAD 500,000 sale. There is a large market opportunity there. In the U.S., whether it's a small underwater vehicle or a large underwater vehicle, there's a variety of programs that are up for build, new builds or retrofits today. Similar to the U.S. and a number of European and other NATO countries, you've got similar upgrades happening there. Traditionally, on these smaller vehicles, they've never used synthetic aperture sonar technology before because it was too power hungry and the equipment was too big.
I'll show in a few slides here how we've engineered a new product to be able to fit on there. As a result, we expect to capture our fair share of the market there. Another notable one in that upgrade is a program in Canada, which is currently out for bid. The bids will be submitted here in Q4. Contract award is expected next year, and the expectation is that is going to be around a CAD 50 million project opportunity, which we think we're well positioned for. The message on slide 9 is that there is a solid pipeline of activity to go along with the solid backlog that we have as well. Slide 10 addresses our financial performance. The message here, as I mentioned earlier, is that we're coming off a small base. We're selling single units here and there on various opportunities.
With our KATFISH product being a new product introduced in the last couple of years, as well as the upgrade cycle happening in the industry, we're very well positioned on a number of programs, and that's really driving this year's revenue growth and next year's revenue growth and will be the key driver of the company going forward. Numbers wise, we grow from about CAD 12 million in 2020. We're expecting CAD 28 million-CAD 30 million this year. In 2022, we've got targeting about CAD 45 million in revenue, which is really about 20% organic growth off of 2021, as well as a full year growth from our PanGeo acquisition which we acquired in August. For 2021, our EBITDA range is between CAD 3 million and CAD 4.5 million off of that CAD 28 million-CAD 30 million revenue stream. In summary, that's really the highlights of the Kraken story.
The following slides, we've got another 10 slides or so up. I'll quickly breeze through those. It just gives you a little bit more detail on our products as well as our service offering to help you understand our business a bit more. Slide number 12 talks about our extensive IP and product portfolio. What we're highlighting here is a broad range of activities in the underwater domain. With everything from our synthetic aperture sonar, which we brand as AquaPix, to a laser scanner, which we brand as SeaVision. Those are sensors that would go on our underwater vehicles, which we brand as KATFISH and ThunderFish. We also provide the subsea batteries that go in underwater vehicles. These are lithium polymer batteries, which we brand under the SeaPower name, and we make those in our German facility.
As important as the underwater equipment is, the launch and recovery equipment to put the equipment in the water and take it out of the water is also just as important. We have a handling systems group that manufacture this equipment in Canada. They are a very highly skilled team from former Rolls-Royce Marine employees, which joined Kraken about five years ago to push the charge in the handling systems business. Slide 13 talks about our synthetic aperture sonar technology. This is what's the key differentiator of Kraken versus other companies. It's synthetic aperture sonar versus conventional sonar technology. What this really means, you see some fancy pictures here, but with SAS technology, you're able to see objects on the sea floor at very high resolution at long distances.
The comparison versus conventional technology is thinking of 1970s black and white versus 2020 4K ultra-high definition technology that you see today. I show a variety of pictures here. The one that says flow lines and riser bases, that is a subsea oil field, and you can see the various equipments in high definition. If you were able to scroll in, which the customer would have access to this technology, you could scroll in and you could see the concrete mats that are holding down some of these flow lines in very high detail. Subsea sand dunes, aquatic habitat mapping. This is important for scientists and people in the fisheries industry that are looking for what's down there on the ocean floor and where are schools of fish likely to be and likely to prosper.
Ultimately, this high-definition technology allows us to cover greater areas of the seafloor in high-definition. If you think of the way the offshore industry works today, you might have a company that says, "I need 1,000 square kilometers of the ocean mapped." With conventional technology, you would run a lawnmower pattern, and your line spacing would be very small because of the limits of the technology. With synthetic aperture sonar, you're able to cover much wider line spaces in high-resolution. Ultimately, that 1,000 square kilometers could be covered in a much shorter period of time, which means that the surface vessel is out there in a much shorter period of time, which saves the customers money. That's the background of synthetic aperture sonar technology.
On slide number 14, we just highlight that we've integrated our SAS sensors on more than 20 underwater platforms out there today from a variety of customers. Everybody from the industry leaders like Hydroid in the U.S., which is now owned by Huntington Ingalls, to Kongsberg, which is a Norwegian company and one of the biggest players in the underwater domain. A variety of defense companies as well. You'll see Lockheed Martin on there, ECA Group out of France on there, as well as Dive Technologies, which is the red AUV on the left-hand side. They're ex Bluefin General Dynamics folks out of the Boston area. We've got lots of experience integrating our technology into other people's underwater vehicles, and we believe we have sold by far the largest number of SAS sensors to third parties in the industry.
Slide 15 talks about one of our recent developments called a Man-Portable SAS. This is a case of a small underwater vehicle. The U.S. Navy has more than 100 of these in its fleet today, and they continue to build new ones. Non-U.S. navies, friendly navies also have a large number of these, and they continue to build new ones as well. Historically, no one in the industry has ever been able to integrate SAS technology onto these underwater vehicles, but we've done that over the last year. We've sold a couple units into the U.S., and we're in active pursuit on a number of programs, which could turn into a very nice revenue stream for us.
Our main competitor on these particular programs, in the synthetic aperture sonar space, sell a much more expensive product, which reports have been that the operator experience isn't nearly as good as well. So far we've received good feedback, and we expect this to be a good revenue driver for the business going forward. Slide 16 is just an example of our KATFISH technology. I think the key thing to point out here is that we sold our first one three years ago. This is a new product for us. We've won a couple major programs recently with it. As I mentioned earlier, we have a large pipeline of opportunity with the KATFISH product. We expect we'll continue to win our fair share of that business going forward.
On the right-hand side, you can see our KATFISH. That is an unmanned surface vessel, or think of a drone boat, from a large Israeli defense contractor called Elbit Systems. That's one of our customers. We've got a variety of different customers and potential customers in various geographies that have lots of interest in this KATFISH product. I mentioned previously our battery business. The important thing to point out about our subsea power business, which is based out of Germany, is that we don't have any special sauce within or any secret sauce within the type of battery. We're using lithium-ion batteries like lots of people in the industry use. What's unique about our technology is the pressure-tolerant gel encapsulation that we use, which means that we can pack more energy into the same footprint and go 6,000 meters deep. What does that ultimately mean?
That means that a person that has an underwater vehicle can stick its underwater vehicle in the water and go on longer mission times without having to worry about coming back and changing the batteries. Ocean Infinity was our largest customer in this space. They have 15 of those orange underwater vehicles. You can see Kraken batteries inside those. When they bought those vehicles, they came with the original OEM batteries. Ocean Infinity removed those batteries and bought batteries from us to upgrade. That's a good little business for us, and we use those batteries in our own AUV platforms as well. Switching gears here, getting towards the end. Robotics. Most of the session so far has been focused on the product side of the business. Now I'll talk about the service side, which we call robotics as a service.
From a revenue point of view, it hasn't moved the needle very much, but this is something that's been in development for us for a number of years. A key accelerator of this was in 2019, we were awarded a CAD 20 million pilot project with the Canadian government and some industry folk in Canada to take our technology and expand upon it and go out and start to offer it on a service basis as opposed to selling it as a product to another service company. Where we sit today is the KATFISH product that I've mentioned before is we've got some of that equipment built for our own survey use. Our laser scanner business, we're not in the process of selling that as a product. We're going to generate inspection revenues of that as a service business.
Over the last six months, we've added dedicated personnel to operate the equipment for this robotics as a service team, and they've come from some of the bigger offshore survey companies in the industry. We've had the technology. It was a matter of putting the people in place to offer it on a service basis. When PanGeo came into the fold as an acquisition, what they really do is they are a business that had been around for more than 10 years with existing customers, established contracting and operations processes and disciplines. They know how to operate equipment out there for weeks at a time offshore. We're taking all those skill sets that they have, and we're putting our technology into their service offering, and it's a real nice combination.
On slide number 20, you can see just an example of various pieces of equipment that we have to offer as an offshore service business. Those are deep water AUVs then to shallow water KATFISH that I talked about previously. In the top right corner is a mooring chain inspection tool, which takes advantage of our laser scanning technology. Okay, for time purposes, I'm just going to flip forward a few slides. On slide 23, to highlight our SeaVision laser scanner tool. You can see that this technology gets integrated onto remotely operated vehicles or ROVs, and it's used a number of applications, one of which is mooring chain inspections. It's a great application of this technology.
On the right-hand side, you can see an example of a mooring chain, and we've provided a color map, which is basically showing various levels of corrosion on a mooring chain. It's a large market opportunity. This is new technology into a market where previously the way of inspecting some of these chains was either to just take the chains out or to put divers down or to use mechanical calipers on remotely operated vehicles. We're really bringing new sensors and robotics to this market which we expect will start to generate really decent revenues for us. On PanGeo, just to give you a little bit of background. They are also an acoustic sensor technology company. As I said, they provide it on a service basis versus Kraken provides it on a product basis.
On slide number 24, you can see that their technology can image objects that are buried into the seabed up north of 30 meters buried into the seabed, versus Kraken's technology is used to find and inspect objects that are on the seabed. We can cover the whole gamut now. We closed this acquisition at the end of August. We paid CAD 14 million for this company, doing about CAD 10 million in trailing revenues. Of that CAD 14 million, we paid CAD 3 million in cash, CAD 7 million in stock, and a vendor take-back note of CAD 4 million for two years. We can also pay up to CAD 9 million based on the earn-out over the next two years based on PanGeo's revenues. We think it was an attractive acquisition, and we've highlighted the strategic rationale of the business previously.
I would highlight on slide number 25, PanGeo, as you can see, about 80% of their market is the offshore renewable market. You can also see a number of repeat customers, both on the contractor side and the offshore wind operator side, a number of notable names that folks would be familiar with. In summary, I guess that is it in summary. We play in a niche industry. We now have a combined mix of both product and services, which makes our business less lumpy than it used to be. We've got a solid backlog, and we're at an inflection point where we're going from starting to see significantly increased revenues with nice profitability just starting to kick in as those revenues start to accelerate. That is everything for me. Thank you very much for your time.
Thank you, Greg, for that overview. Let's expand a bit on a few topics here. Looking forward, what are the most important things you are focused on to drive success for 2022 and beyond?
I would say probably three things. First of all, would be just execution on the backlog that we have today. That is predominantly the Danish Navy and Polish Navy shipments, which we will see. There's been a lot of engineering work that has gone into that over the last year, and we're in the production build phase right now, and we'll start to ship the first units here in Q4. We should have finished shipments of those by Q3 of next year. There's a flurry of activity happening on the production side over the next year to get those out the door. That contract converts, the Danish Navy contract converts into a support contract over the following 14 years after we've delivered the initial product. That's the first thing. The second thing is the integration of PanGeo.
As I mentioned, original Kraken is a product company. PanGeo is a service company. We're in the process of integrating the management team and the employees today. There's complementary skill sets where Kraken brings a deep engineering and technical value into PanGeo, and PanGeo brings very strong processes, contracting, and operational experience in the offshore services market to Kraken, and we can slot our technology into their service offering to really drive the revenues and profitability that we're looking at from a service business. That was the second point. The third point would be really continued execution or execution on the pipeline of opportunities or capturing the opportunities that are in front of us. As I mentioned, we are predominantly on the product side, military-focused.
The negative thing about that market as a small company, a small public company, is that the orders can be lumpy, and there's long lead times. On the positive side, a lot of the things that we've seen over the last year and that we're going to see later this year and over the next couple of years are opportunities that have been in the pipeline for a number of years maturing, and now they're finally starting to get contracted. Really, the focus is making sure that we have the proper feet on the ground on the contract pursuit and we're partnered with the right defense contractors to go after all these opportunities.
Well, that's great. Well, Greg, we are out of time, so I want to thank you very much for your time today. We greatly appreciate it. Again, if you'd like to sign up for one-on-one meetings with Kraken Robotics, please visit lythampartners.com/virtual and click the one-on-one meeting request button. Finally, we have another presentation coming up here shortly. Again, visit the website for details. We wish you all