Okay. We are ready to begin our final presentation for today. Let's please give a warm welcome from First Breach Chief Revenue Officer, Ken Leith.
Good evening. Good afternoon. Thank you for being here. I'll be standing between you and the closing of the event, means the bar will be open when we get wrapped up, so we'll keep the questions and the proposals and the presentations all moving along smoothly. First Breach, an American-made defense technology company. It's based in Hagerstown, Maryland. We have some forward-looking statements because we were fortunate to do a direct public offering on August 20 of this year. We went ahead and put all the proper forward statements on this. We're a vertically integrated company. We make, manufacture ammunition and components for ammunition, and drones and drone components, trying to provide law enforcement and military and other significant parts of industry the tools to be successful in this new world. Quick overview of what we're doing. We're working in the small arms business.
You want to think 9 mm, 5.56, .223, the kind of ubiquitous rounds that everybody in the world wants to use. We're also involved in the expanding drone market. Here, we're in a Group 1 category size. Group 1 is the smallest of all drone sizes. They go from 1 to 7, and it's a quadcopter design and style. There's a really hot demand market right now. The demand signal for drones is everywhere. I was just at AU.S.A down in Washington and there were at least 1,000 more vendors talking about drones than there were last year. It's also one that works well with us because we believe that at First Breach, ammo and drones are very similar. Ammo, it has to go bang when you pull the trigger. A drone has to work every time.
You cannot have a drone having a failure over a school or a problem. We believe that low-cost, scalable drones and ammo are some of the ways we can best help the United States bring back its core military industrial competency. Together, our relationships have made it easy for us to move forward in the drone marketplace by leveraging our ammunition experience, our energetics experience, our precision manufacturing, and our ISO 9001 plant. Currently, we have a single cap market set up with a single stock, no convertibles, nothing funky, super easy for people to get their hands around. 55 million shares, cash on hand, market capitalization about $47 million at today's price. Talk about our plant. This is one of the things that we're most proud of, is that the Hagerstown plant of First Breach. It's 300,000-plus square feet of manufacturing facility.
It's got 80,000 currently working with the ammunition and another 216,000 where we're going to be expanding into our drone manufacturing. In this picture, you'll see Jeff Low and Jordan Low, two founders of the company and my associates there, giving you the good crossed arm look. I like that. We are proud to say that our manufacturing facility is the home of the A-10 Warthog. Fairchild Republic made the Warthog there for many, many years. Every Warthog that exists went through that plant. Because it's a slice of Americana like that, it has the kind of facilities that really make precision manufacturing easier. We've got the ability to bring in power and substation. We've got all sorts of concrete floors that 13 to 15 inches that allow us to run our presses without any flex.
We've got 50-foot ceilings, the kind of thing that makes manufacturing a lot easier. We're happy to be in Hagerstown, and we just think that that section of the world really appreciates our defense tech attitude. Executive management starts as a family business. Jeff Low had years of experience in healthcare, and his son, Jordan, had experience in the IDF, fighting as a sniper. Rich Leimbach, our CFO, many, many years doing public accounting and public work. Myself, 45 years of experience in the sales and development of financial services. Ben Donivan, senior Vice President, we like to call him Big Ben because he's six foot five and 300 pounds. He is a fabulous resource for us. He's run multiple major industrial plants, and today he's got First Breach cranking 12-hour shifts, seven days a week. We've been working on our ammo side for a while.
We've been growing what's called a match grade line of ammunition. Match grade means that we're not just using SAAMI spec. SAAMI spec is the military spec for ammunition that's required for NATO and other countries. Match grade is a whole order of magnitude better than SAAMI spec. It's the kind of bullet that you would want to give to the U.S. Olympic shooting team. In fact, we have. We had First Breach precision bullets being used in the Olympics in Paris, France. It is, for us, the only way to go into this business. This is a lot of legacy businesses out there. Companies have been around for 100 years making ammunition, and we're the new boy on the block. We wanted to make sure we had better accuracy, enhanced reliability. We were using our powder at the very highest quality.
We weren't having any stove piping or problems caused by nicks and dings. You can dial up the quality for your ammo if you want to, if you have the right equipment. We were lucky that we have the laser and the optic testing equipment that allows us to be able to produce world-class ammunition, and the results speak for themselves. Go to our website, you'll see over 25 articles from major gun magazines and papers around the world talking about the quality of First Breach ammo. We want to expand our product lines in the future beyond just 9 mm, .223/5.56. We'll be going into 7.62x39 and some other specialty SKUs, but it's not been the bread and butter for us.
The bread and butter is the most popular brands where we can use our scale and our ability to manufacture to meet the overwhelming demand signal that we're getting from the market. Since the Ukraine-Russian War started, the U.S. cut off Russian ammo to the U.S. market. That took 2 billion rounds out of the 8 billion rounds being consumed every year by U.S. consumers, not even talking about military, off the marketplace. That, along with the need now after five years of conflict between Russia and Ukraine for NATO to reload their armories with ammo, has made this a unique marketplace to be growing a new ammo business in. There is overwhelming need for 5.56 NATO, and prices have reflected that. Even though you would think that the market would be able to adjust for it hasn't.
We will continue to see going forward, I think, demand for ammo exceeding capacity to manufacture. We've worked also at expanding our ability to service that. We've gone from eight-hour shifts five days a week to 12-hour shifts seven days a week. Now we'll be going to 24 hours a day, seven days a week to try to get our plant running at maximum capacity so that we can meet the demand for 9 mm and 5.56. Now I'm going to pivot to where the future of warfare seems to be headed. Drones. Attritable, adaptable, American is what we like to say. An attritable drone is a drone that goes one way, sometimes known as a suicide drone. It goes, it blows up something. It goes, it hits a target.
It could be either a kinetic drone that hits it at 160 mi an hour, or it could be that it has an energetic attached to it, and that energetic is timed to explode near or around the other drone. In this space, we've focused on having in our Group 1 class of drones, we're focused on three types of product. One of them is an attritable drone that goes out and takes out a target with an energetic. The next one is what's called a mid-range interceptor. There, we're sacrificing some of our energetics and adding a little bit more in terms of battery, and the idea is to be able to go farther in distance at a higher speed, and once again, it's a counter-UAS drone.
Then you've got your standard counter-UAS drone that works with an energetic and takes out an opposing drone of some sort by blowing up nearby. If you look at the picture that we've got here, it's a sample of some of the design work we've been doing with our current Group 1 drone. Some of the key factors that make this a great design are the two camera lenses in the front. Many people have been showing single-lens drones that do not have the stereoscopic capacities to do SLAM architecture. SLAM architecture is when you get denied your GPS signal, or somebody cuts your fiber optic cable, or you can't talk to it with your FPV in any manner, and you need to remap where you are in real-time so that your software can get you to finish your objective or be able to return home safely.
To do that, it helps to have some stereoscopic camera, or to be at least a FLIR camera for nighttime and a regular camera for the daytime. Design-wise, this is an improved design over a lot of things we've seen in our competition. Below it, you'll also see what's called a weapons package. This is a drop bomb package versus one that might have tail fins and changeable, interchangeable weapon systems on the front. There are all sorts of designs that you've been seeing promulgated now in the Army and other military groups. The important thing to see is the commonality here. Everybody wants to have common delivery systems, and we want to be designing and bringing best practices with common design systems. The common design system here is a Picatinny rail system on the bottom in which you attach an ESAD.
An ESAD is electronic safety that allows you to remotely drop from the Picatinny rail, a bomb system. It's also one that typically for the U.S. will have a manual safety while it's in transportation. You can think of those little red flags that you pull off, that you see in the movies for the jet fighters, remove before flying or firing. That's your manual safety, but the ESAD's the important thing. The ESAD is something that we have the capacity to build at scale with our electronics and our component group, and it's important that you have a strong ESAD that allows you to put multiple UAS' on wings of helicopters and other craft because motherships will be delivering smaller drones in huge quantity. It's not just limit me to the life of my battery, I can go 40 km.
We see several projects now where people are saying 2,000 km on a mothership, and then we're dropping 12 of them. This is the future. Innovation is happening as we speak everywhere in terms of using AI chips and software to bring platforms like UAS platforms to the battlefield. In some respects, it's not just a device or a energetics package, it's a combination of device energetics package and software that makes this such an interesting company and where it's headed and how it's doing it. The battlefield has got transformation coming from a couple different areas. One of them is ubiquitous presence. Everybody knows where you are now. Battlefield's going to have sensor presence everywhere.
It's got to be done in a way where you keep someone in the, quote-unquote, "kill chain" or "cost kill chain," where they're worried about trying to make sure that we're not spending $1 million shooting down a $50,000 drone. We want to have the right vehicle defending against the right attacking platform. If we can figure that out, then we can make the kill chain costs too expensive for our opponents. They don't get to beat us here on the industrial front. Never really been a question of, can we win on the battlefield, I think for most of the military. It's always been a question of, can we do it at a cost-effective rate? That's been where First Breach and its capacity to bring its robotic arms comes into play. Here you'll see a soft robotic arm in the smaller picture in the bottom.
This soft robotic arm, six degrees of freedom, is used in our designs to assemble over 45% of the device. This gives us scalability, price advantages, and allows us to take our AI and software skill sets and apply it to our manufacturing. This is sort of the secret sauce to how you get to become a successful drone manufacturer in the U.S. You'll see at First Breach is our manufacturing facility. Hellbender in Pittsburgh is our engineering design partners, and they're also the ones who are doing our chip manufacturing on our drones. It's all U.S.-made, it's all attritable. So we know what our costs are when we send it out, and we know what our kill chain has to be in terms of fighting against someone who's throwing a $600 DJI drone at us from China. Let me summarize where we are. We're in a growing space, marketing.
We've got ISO 9001 plant with CNC and complete throughput to all of our bullets, our energetics, and our drone component parts. We've got a leadership team that's been in manufacturing and engineering. We've got experience that comes, touches back into all sorts of academia and Carnegie Mellon for the robotics side, for us in our manufacturing side, in our energetics. We think we've got a seasoned ballistics group that makes great bullets. We believe that we're patriotic. We are aligned with the priorities of bringing precision manufacturing back into the industrial side, into the war fighters' capacity. Trying to make it a safer place for our soldiers and our sons and daughters to be in the future. Finally, because we are a direct public offering, we've listed, we expect to grow both inorganically and organically in the future. I think there's a great platform for wealth creation here.
Love to talk to you about that and answer questions in the future. Because I'm standing between you and the bar, let me get to questions. Anybody have some questions, I'd be happy to answer. Please.
As you were talking about the powder that you're using, talk about how much that's going to be an issue going forward, has that been kind of a bottleneck for all those manufacturers, the sourcing of power and projectiles and all. Just a random question, are the drones covered under ITAR regulations as far as shipping?
That's great questions. I heard two questions. One is talk a little about powders and about energetics and some of the issues and supply chain for that. The other question was, are drones covered under ITAR? The answer is DDTC export licenses are required for drones to go to countries. Our client mix is going to be domestic, U.S., or NATO, so we're not really exposed to that. Yes, there are some ITAR issues, but the component mix, in other words, if you have some that are coming from Taiwan or some that come from the U.S., no one's saying to you can't have a blended manufacturing process if you wanted to. We just don't do that ourselves.
We try to keep our entire supply chain in the U.S., not because of ITAR issues as much as we think that it provides us a safer platform in the event of disruption of the supply chain due to geopolitical risk. Back to your question about powder. Propellants and powders for the ammo business are primarily coming from Radford, the U.S. manufacturer, and some of it's coming from big subsidiary groups that work with Radford, like St. Marks. We have very strong relationships for powder. Powder is no longer the choke point that it used to be that people would talk about a couple of years ago. Instead, it's pivoted to primers. Primers are the issue that you find in ammunition right now. In the drone business, the primer cores and primers are slightly different. They're not really propellant based.
You're going to see different types of explosives being used. There's where there's some interesting differences as investors, you can try to parse it out. I hear half the people say to me, "We're going to use C4." I'm like, "Why would they use C4? It's a little heavier than B2. I could use a two-part liquid. I could do HMX or RDX kind of high level, higher energetics, more stable explosives for a drone. That would make sense." The government says, "Well, all of our soldiers have a lot of experience handling C4. So we want to make it simple so that the private out there in his platoon who's messing around can pack his own bomb on site with C4." So there's this dumb it down to the lowest level and give them that explosive. That's A option.
The B option is, "Now we're going to go with HMX, RDX, and we're going to give you the lightest amount of explosive with the biggest bang for the buck, and we're going to have a super stable, epoxy style explosive." All of those don't have the problems of missing the nitrocellulose supply chain. For you, the big answer is nitrocellulose is that where there's a supply chain problem in artillery, but not in drones. Drones aren't going to go there. There's plenty of C4. It's probably not going to be a problem for drones. It's certainly not a problem for us in the ammunition, small arm side. We have really great supply chain capacity to do propellants. I hope that answers the question. Go ahead.
One tail end question. Your drones, can they be modified for like overwatch with running phones and things like that on them?
Absolutely. In fact, if we were to go back to this picture here, those cameras can be adjusted to be at different focal lengths, so they can do up to 5 or 6 mi, depending on that. You want to think about how your iPhone or your three camera buttons in the back work. This can do that. You don't have to put on a big swivel, $15,000 optic to get there anymore. IR and FLIR, we see a lot of it. We see typically where they're doing LIDAR from below the belly of the drone and FLIR and optical at the front. Any other questions here? Go ahead, please.
Can you talk about your Blue UAS list strategy to get these certified?
Great question. Blue UAS list strategy is straightforward. We're already in process to be Blue UAS list certified. We've already done that with both Hellbender, our subsidiary, who's applied to be Blue UAS list certified for its chips and its engineering components. And at First Breach, we've gone forward to get all of our component pieces and our manufacturing drones to be Blue UAS list certified. We currently have several exceptions under Drone Dominance for how long we can go before we have to have that done, and we should be able to get to that process in a timely fashion.
Just one more question. Another challenge I have seen a lot of drone manufacturers entering the market is resistance to jamming.
Even more cybersecurity, an enemy hacking into your drone and then turning it back. Do you outsource that? Do you have a solution?
Electronic warfare, EW issues, are driven by two, I think, gatekeepers. One of them is how strong is your radio system inside your drone in terms of power of that? In other words, how easy is it for me to blanket the spectrum and deny you access to a GPS signal or to somebody else's signal? What we see happening in the drone space now is what is called mesh hopping, where they are going from hop, hop from various signal sources to try to counter that. There is a cat and mouse game going on now between my EW, that mesh hop is against your EW, and which one is better. It will still be a problem even with mesh networks. The other side of it is your software. We think the future, and this is how we are approaching it, is going to be on-edge computing.
I am running out of time, I am going to send you off. On-edge computing means that we leave the chip there, and if you get denied with EW, your computer runs it for you. Great. Thank you for the questions, and thank you for the time.