archTIS Limited - U.S. Department of Defense Progress Signals Strategic Momentum - A Definte SamsoDYOR for Positioning Potential Upcoming Growth in Sales.
- Noel Ong
- 1 day ago
- 6 min read
Announcement
Renewal of U.S. DoD Licenses and Secures Drawdown Facility - 22 December 2025 (view the announcement)
archTIS Limited (ASX: AR9) has provided a detailed update on its progress with the United States Department of Defense (U.S. DoD), highlighting the successful production deployment of its NC Protect software within the Microsoft DoD365 environment. The update also outlines renewed licenses, customised development work, and new non-dilutive funding aimed at accelerating U.S. market penetration. The core activities are centred in the United States, with archTIS headquartered in Canberra, Australia.
The Business of archTIS Limited: Software
archTIS operates as a global provider of data-centric security software designed for secure collaboration of sensitive information across government, defence, and regulated industries (Figure 1). The Company’s flagship product, NC Protect, applies real-time attribute-based access control (ABAC) directly to data, aligning with Zero Trust security architectures mandated by U.S. defence authorities. The Company also continues to integrate Spirion following its acquisition, broadening its product suite and U.S. market reach.
Figure 1: archTIS Product Portfolio (source: AR9)
Highlights – Advancing from Pilot to Mission-Critical Deployment
Production Deployment Achieved: NC Protect has been successfully deployed into the U.S. DoD’s Microsoft DoD365 production environment, validating its ability to protect live production data under authorised conditions.
1,000 Production Licences Renewed: A U.S. DoD systems integrator has renewed 1,000 NC Protect licences for a six-month term valued at US$38,500, supporting ongoing active mission operations across the warfighter network.
Customised Enhancements Underway: The U.S. DoD has procured customised software enhancements for NC Protect to meet interoperability and scalability requirements, with delivery expected by mid-January 2026 (Figure 2).
Figure 2: Q1 FY26 Highlights – U.S. Focus & DoD Progress (source: AR9)
Enterprise Licence Discussions Re-engaged: Enterprise licence negotiations have recommenced following delays caused by the U.S. Government shutdown, with future licence blocks expected to start at approximately 8,000 users and potentially scale to several hundred thousand users.
Spirion Integration Delivering Cost Synergies: Integration with Spirion (Figure 3) has generated initial annualised cost synergies of approximately A$4.5 million, supporting cross-sell campaigns in the U.S. market.
Figure 3: Spirion Acquisition (source: AR9)
Non-Dilutive Funding Secured: archTIS has established an A$8 million senior secured drawdown debt facility to accelerate product integration and U.S. market expansion without shareholder dilution.
Leadership Commentary
Mr Daniel Lai, CEO and Managing Director of archTIS, commented:
“The production deployment and license renewal represent a major milestone forward in our U.S. DoD sales opportunity. It demonstrates the U.S. DoD’s intention and continued investment to deploy our product within authorised DoD environments. Not many Australian companies achieve this.
Additionally, the recent announcement by the U.S. Department of Defense Chief Information Officer, Katherine Arrington, mandates that all DoD branches, Military Services and Combat Commands, must achieve target Level Zero Trust as a ‘non-negotiable’ requirement before September 2027. This directive potentially positions archTIS at the forefront of the U.S. DoD’s strategy for enforcing Zero Trust in DOD365, presenting a significant opportunity.”
About the Project
NC Protect is designed to enforce real-time, data-centric ABAC policies directly on sensitive information within cloud and hybrid environments. Its deployment within DoD365 confirms compliance with U.S. DoD Zero Trust objectives and marks a transition from pilot testing to sustained, mission-supporting operations (Figure 4). The Company is also delivering contracted customised development and integration services alongside defence partners, further embedding NC Protect into operational workflows.
Figure 4: U.S. DoD Zero Trust framework and allied interoperability across DoD365. (source: AR9)
Near-term Milestones to Watch
Delivery of customised NC Protect enhancements by mid-January 2026
Progression of enterprise licence negotiations following resumption of U.S. federal procurement
Continued execution of the 100-day Spirion integration plan and expansion of U.S. cross-sell activities
Samso Concluding Comments
The progression of archTIS’ NC Protect from evaluation and pilot stages into an authorised production environment within the U.S. Department of Defense is a meaningful milestone. The fact that AR9 has entry into DoD365 production is already a big step, as it requires compliance with strict security, interoperability, and operational standards that few vendors successfully meet. From Samso’s perspective, this transition confirms validation of both the product architecture and the Company’s ability to operate within highly controlled defence environments.
The renewal of 1,000 licences, while modest in absolute revenue terms, is strategically more important than the dollar value alone suggests. It confirms ongoing operational use rather than a one-off trial and demonstrates continuity of engagement during a period affected by U.S. Government administrative disruption. The fact that customised enhancements have been commissioned further indicates that NC Protect is being shaped to meet broader operational needs, a characteristic often seen before wider enterprise adoption in large government systems.
The resumption of enterprise licence discussions following the U.S. Government shutdown is another point worth noting. Large defence procurement processes are inherently slow, process-driven, and susceptible to external delays, making persistence and alignment critical. The reference to future licence blocks starting at approximately 8,000 users and scaling higher frames the opportunity in terms of system-wide applicability rather than isolated deployments, which materially changes how the long-term commercial potential can be assessed.
Finally, the establishment of a non-dilutive A$8 million debt facility and the delivery of early Spirion integration synergies suggest the Company is actively positioning itself for execution rather than expansion at any cost. Cost discipline, integration progress, and balance sheet flexibility matter in markets where sales cycles are long, and validation precedes scale. For Samso, this announcement reflects steady, process-driven progress in a complex and demanding market, where credibility is earned incrementally, and outcomes are determined over time rather than quarters.
Market Implications
AR9 has been on the Samso radar since August 2025, and they have been watching from a distance as the story develops. There was a spike in its share price in June 202,5 and it now looks like it may be consolidating with what appears to be investors taking good profit since the June spike (Figure 5).
From a business point of view, having a client like the DoD is the ultimate in working with a cash "diansaur". They don't move quickly, and their methodology feels and looks archaic, but they have an endless supply of cash.
Figure 5: The share price chart for AR9 as of 2nd December 2025. (source: CommSec)
Let's put the conversation in a simpleton mannet, to be considered as a potential supplier is a win, to be considered as a repeat supplier is being invited into dinner with the inner sanctum. To be considered for concepts to make the product better is to be asked to sit at the table, which is not at the back of the room.
A company with a market capitalisation of AUD $57M, which is being considered a "supplier" for the DoD, is definitely worthy of anyone's watchlist. Could the pullback in share price be the discount that investors have been gifted?
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