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GET A PIECE OF XAIROS SYSTEMS

A Better GPS Through Quantum Technology

We are a space and technology company that is revolutionizing time synchronization. To date, Xairos has raised over $1.3 million which has been used to successfully build a proof-of-concept (POC) demonstrating our patented quantum technology. Our system aims to enable a new generation of technologies that require orders of magnitude better accuracy and security than GPS can deliver. We are currently pre-revenue generation.

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This Reg CF offering is made available through StartEngine Capital, LLC. This investment is speculative, illiquid, and involves a high degree of risk, including the possible loss of your entire investment.
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$453,199.83 Raised

REASONS TO INVEST

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A PATH TO THE FUTURE: Governments and network operators worldwide are looking for a more accurate GPS alternative to enable technologies such as 6G, autonomous vehicles, and quantum networks. Xairos’ POC has demonstrated time synchronization that is >1,000x more accurate than GPS, solving a considerable problem for new technologies and applications.

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FREEDOM FROM OUTAGES: GPS represents a single point of failure for critical national infrastructure. Our patented technology is highly advanced and secure, eliminating the hacking and signal jamming to which GPS is prone. With our system we expect to reduce expensive outages that disrupt travel, degrade network performance, and even eliminate national threats like the interference from Russia in Ukraine.*

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MASSIVE MARKET POTENTIAL: GPS alone is a very significant global opportunity with an estimated multi-billion dollar commercial and government market.* We have completed initial revenue contracts with government agencies with more in development. Both quantum and position, navigation and timing (PNT) research have been identified as priorities by the US government, putting Xairos in excellent position to access billions of dollars of new funding as we build our commercial system.*

TEAM

David Mitlyng

David Mitlyng • CEO & Board Director

Three decades of space, optics, and business experience with Hughes Space and Communications, Orbital ATK, SSL, and BridgeSat, and a BS in Aeronautical Engineering from Cal Poly SLO, a MS in Aeronautics and Astronautics from Stanford University, and an MBA from the MIT Sloan School of Management.

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James Troupe

James Troupe • Chief Quantum Scientist

Inventor of the quantum clock synchronization protocol. He has authored key papers on this protocol, including “Secure Quantum Clock Synchronization” and “Symmetrical clock synchronization with time-correlated photon pairs”, and has developed the exclusive IP and patents. He has two decades of quantum research experience with University of Texas at Austin, Applied Research Laboratories, and Office of Naval Research focused on the application of quantum mechanical properties to communication, computing, and sensing technology for the Navy and DoD, and a PhD Computational Science from Chapman University, a MS in Physics from Tulane University, and a BS in Physics from University of New Orleans. 

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Roger Yee

Roger Yee • Board Director

Roger is Managing Partner of 𝗼𝘂𝘁𝗰𝗼𝗺𝗲/𝗼𝗻𝗲 providing strategy and management consulting services for companies in the aerospace, defense and government services markets.

Roger's work has been featured in media including the Washington Post, Federal Computing Week, Washington Technology, Government Security News, Washington Business Journal and is a frequent invited panelist at government and industry events. He is a Next Generation Fellow of The American Assembly, Cybersecurity Working Group Chair for Open Source for America, DHS Homeland Open Security Technology (HOST) Council of Peers and a Global CEO Mentor for the Founder Institute.

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*Market information provided by (source) (source) (source) (source) (source)





the pitch

With Xairos’ global timing service we aim to realize the tech-filled future we all imagine – self-driving cars, delivery drones, flying taxis, 6G terabyte-per-second surfing speeds, and more. This is a future GPS cannot support. Government agencies and network operators worldwide recognize the limitations of GPS and are looking for solutions. Techstars, US Air Force, and NASA believe in the technology and vision being developed by Xairos. Our team and board of advisors are composed of leading quantum, timing, and space experts who can execute on our vision to develop a global timing service that dramatically improves on GPS. 






GPS isn’t about maps; it’s about time


Xairos is building a global timing service that represents a disruptive improvement to GPS. Despite its name, GPS isn’t about maps; it’s about time. Most of the world’s networks, financial transactions, and power grids rely on timing from GPS (source). But GPS is a 50-year-old technology that is not nearly accurate or resilient enough for modern networks. 


The Problem & Our Solution


GPS is not secure or resilient enough 


GPS is currently a single point of failure for networks and power grids (source). Due to its weak radio frequency signal, GPS is highly vulnerable to jamming and spoofing, with hundreds of thousands of local outages reported each year (source). If GPS failed for a sustained period, it is estimated that it would create economic losses per day of $1B in the US and £1B in the UK (source & source).



Security of a timing signal is integral to the infrastructure of the USA and other democracies (source). The quantum properties of the Xairos time signal significantly enhances security and resiliency for governments and critical industries. For example, our highly secure time signal could support Ukraine infrastructure despite Russian interference and consistent efforts to jam GPS over the country.  


Importantly, the US Government has recognized this problem and is now in the process of considering options to improve resiliency of national infrastructure and is looking for solutions from the private sector.


(Source, Source, Source)


GPS is not accurate enough


GPS worked for 4G and even 5G – enabling a multi-trillion industry to take shape (source). However, GPS is limited to an accuracy of 30 nanoseconds and cannot enable future technologies. In contrast, Xairos has picosecond-level accuracy, an over 1,000x improvement.


This enables new technologies that require better timing accuracy than GPS – including for autonomous vehicles, quantum networks, 6G, and more. Once our global timing service is in place, we have the foundation for the future quantum network.


* The US Quantum Satellite is a planned future event, & the Commercial distribution through existing players is a planned future event.

The Market & Our Traction


Xairos is targeting almost a $500B market, including securing contracts from the US government 


Since its inception, GPS is estimated to have created over $1.4 trillion in economic benefit and is expected to be almost a $500B market by 2031 (source & source). Timing and synchronization units tied to GPS is already a mature multi-billion dollar market with nearly half a million units sold per year (source). 



6G communications, data centers, quantum networks, and self-driving vehicles require more accurate and secure timing in order to be optimized. Xairos can provide a pathway for this technology by allowing companies and governments to synchronize clocks within their networks at a level of accuracy that is >1,000x better than GPS, increasing security and resilience. 




We’ve generated market interest

Xairos is ready to build a testbed and start addressing commercial opportunities ahead of launching our first satellite. We’ve identified numerous pilot projects in the United States and Europe for our initial system deployment, and are currently developing material partnerships across the globe.


Our Traction and Achievements

We have already built a proof-of-concept demonstrating that our quantum technology significantly outperforms timing from GPS. Our core technology is covered with two patents and three new provisional patents (and growing). These patents are exclusive and IP is owned or licensed only by Xairos.


Xairos is on pace to continue growing, having closed over $1 million in seed funding, a $250,000 grant from the State of Colorado, and contracts of $500,000 from NASA, US Air Force, and US Navy. Some of our investors include Techstars, Qubits Ventures, Break Off Capital, and Spaced Ventures.


We have strong commercial and research partnerships and are continuing with our technical, commercial, and grant funding partnerships in the US, Europe, and Asia. Our goal is to build, launch and operate America’s first quantum satellite.

Why Invest


Join our mission to enable the next generation of technology


We are on a mission to launch America’s first quantum satellite with our patented technology that will replace GPS and pave the way for future technologies, including 6G, autonomous vehicles, and quantum networks. 


GPS cannot advance to support the evolution of technology and applications that are driving human activity. There is already US funding allocated for a GPS replacement (source), with calls to incentivize a commercial replacement so the US military has their own dedicated system (source). In the “New Space” paradigm governments are giving way to the private sector for innovative space technologies - including rockets, imagery, space tourism and stations, and lunar bases. This democratization of space has helped advance society while building strong businesses, as witnessed by SpaceX’s record $140 billion valuation. Now it is GPS’ turn…now is the time for Xairos. 



Please join us to enable the advancement of future technologies and protect critical national infrastructure.


Code View

ABOUT

HEADQUARTERS
9741 Sunset Hill Circle
Lone Tree, CO 80124
WEBSITE
View Site
We are a space and technology company that is revolutionizing time synchronization. To date, Xairos has raised over $1.3 million which has been used to successfully build a proof-of-concept (POC) demonstrating our patented quantum technology. Our system aims to enable a new generation of technologies that require orders of magnitude better accuracy and security than GPS can deliver. We are currently pre-revenue generation.

TERMS

Xairos Systems
Overview
PRICE PER SHARE
$1
DEADLINE
Jul. 21, 2023 at 6:59 AM UTC
VALUATION
$20M
FUNDING GOAL
$10K - $2M
Breakdown
MIN INVESTMENT
$250
MAX INVESTMENT
$1,000,000
MIN NUMBER OF SHARES OFFERED
10,000
MAX NUMBER OF SHARES OFFERED
2,000,000
OFFERING TYPE
Equity
SHARES OFFERED
Non-Voting Common Stock

Maximum Number of Shares Offered subject to adjustment for bonus shares

*Maximum Number of Shares Offered subject to adjustment for bonus shares. See Bonus info below.

Time-Based Perks

Ultra Super Early Bird - First 72 hours | 15% bonus shares

Super Early Bird - Next 72 hours | 10% bonus shares

Early Bird Bonus - Next 7 days | 5% bonus shares

 

Volume-Based Perks

Tier 1 Perk — Invest $1,000+ and receive 5% bonus shares

Tier 2 Perk — Invest $5,000+ and receive 10% bonus shares

Tier 3 Perk — Invest $10,000+ and receive 15% bonus shares + personal one-on-one telecon with the founding team 

Tier 4 Perk — Invest $25,000+ and receive 20% bonus shares + personal one-on-one telecon with the founding team 

Tier 5 Perk — Invest $50,000+ and receive 25% bonus shares + VIP tour of the Xairos testbed

Tier 6 Perk - Invest $100,000+ and receive 50% bonus shares + VIP tour of the Xairos testbed

Loyalty Bonus

Previous investors and Friends & Family will receive 10% bonus shares.

*In order to receive perks from an investment, one must submit a single investment in the same offering that meets the minimum perk requirement. Bonus shares from perks will not be granted if an investor submits multiple investments that, when combined, meet the perk requirement. All perks occur when the offering is completed.

 

The 10% StartEngine Owners' Bonus

Xairos Systems, Inc. will offer 10% additional bonus shares for all investments that are committed by investors that are eligible for the StartEngine Crowdfunding Inc.'s OWNer's bonus.

This means eligible StartEngine shareholders will receive a 10% bonus for any shares they purchase in this offering. For example, if you buy 100 shares of Non-Voting Common Shares at $1 / share, you will receive 110 Non-Voting Common Shares, meaning you'll own 110 shares at $1 / share, or $110. Fractional shares will not be distributed and share bonuses will be determined by rounding down to the nearest whole share.

This 10% Bonus is only valid during the investor's eligibility period. Investors eligible for this bonus will also have priority if they are on a waitlist to invest and the company surpasses its maximum funding goal. They will have the first opportunity to invest should room in the offering become available if prior investments are canceled or fail.

Investors will receive the highest single bonus they are eligible for among the bonuses based on amount invested and time of offering elapsed (if any). Eligible investors will also receive the Owner’s Bonus and Loyalty Bonus in addition to the aforementioned bonus.

 

PRESS

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GPS is Ripe for Disruption

Looking beyond GPS and examining the present and future of position/navigation/timing (PNT) technology, including dual-use space startups developing satellite constellations that can provide more accurate and more secure PNT than GPS. Xairos is developing next-gen PNT via quantum technology.

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Global Timing with Quantum Technologies in Space

Hear all about new satellites that will provide the backbone for quantum clock synchronization – and more! Xairos founder David Mitlyng shares some history, other applications, and why microseconds matter for timing! Listen in or read below to find out what this means, how it works, and why it’s imp

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Quantum Communications in Space: A Deeper Dive

Quantum technology is a growing field, and its subset, quantum communications, has many applications within the space industry. On a recent episode of Constellations Podcast, David Mitlyng joined John Gilroy to explain the growing field of quantum communications.

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Startup Stars Interview with Xairos

In this episode, we chat with David Mitlyng one of the Co-Founders of Xairos Xairos is a global timing service seeking to replace GPS technology using quantum communication technology! Tune in to learn a little about David & the inspiration behind Xairos.

ALL UPDATES

07.09.24

Xairos June 2024 Update

Been a busy first half of 2024 highlighted by new contracts (and sharp uptick in revenue), office, team members, partnerships and opportunities. Some highlights:

  • Selected for four new contracts, with another three more in development. Major announcements coming soon!
  • Completed a Preliminary Design Review (PDR) for one of these projects. 
  • Setting up at two new office locations.
  • Presented "Quantum Time Transfer for Accurate and Resilient PNT" at the European Navigation Conference. 

  • Joined Colorado Governor Polis on the 2024 Nordic Investment Mission.

  • New partnerships with leading quantum and timing and sync companies. 
  • Presented at the Rocky Mountain Photonics Summit & Expo. 
  • Attended the Workshop on Synchronization and Timing Systems.
  • Expanded the team.
  • Advanced the development of critical elements and new IP with a focus on a practical Alternative PNT system.

The Hierarchy of Needs for the Digital World
How good is good enough?
When it comes to GPS, it depends on who is using it – and how it is being used.
For the most people who use it only to get around, it works fine. This feeds the perception it is good enough.
But for the military and civil aviation, it most definitely is not good enough; check out the news section below. These groups are working hard to develop a “GPS independent” positioning system using sensitive sensors, AI-enabled cameras, and even muons.
But that is not where the real value in GPS lies. Humans care about location – our electronics do not. They care about time.
If there's a Maslow's Hierarchy of Needs for the digital world, timing would be at the base layer, like oxygen is for humans. An accurate and reliable timing reference provides the alignment for coordinated signal processing, buffer read/write, and time-stamping of digital events. Think of it like synchronized lights on a busy road - without it digital traffic grinds to a halt.
To keep our electronics humming smoothly lies a complex timing infrastructure consisting of stable clocks that are synchronized (see below).
But at the headwaters of this timing network is GPS, one reference clock to rule them all.
Without GPS, our networks would grind to a halt: credit cards and ATMS would stop working, communications would degrade and fail, and ultimately power grids would cease to function. We would be sitting in the dark waiting for Mad Max to take over.
Fortunately, there are alternatives in development to take the bullseye off GPS.

07.20.23

LAST CALL!!!!

In my early career in the space industry, I worked at the largest company in the world (at the time): Hughes Space and Comm, part of GM. We built big, expensive satellites for large state-owned satellite operators. 

Times have changed! Along came SpaceX and the new space era began. Once a novelty that the "big guys" laughed at, they are now the most valuable private company in the US.

The quantum industry is going through a similar revolution. The movie Oppenheimer describes the incredible scale, and success, of the Manhattan Project. The success of the Manhattan Project changed the dynamics of quantum research forever; government funding for practical quantum physics flowed in, resulting in the second quantum revolution and the development (with initial government funding) of the laser, semiconductor, MRI, and atomic clocks. Now we are in the third quantum revolution where we aren't just harnessing quantum properties, we are creating and manipulating them. Entanglement is the foundation for quantum computers, quantum sensors, and our core technology: quantum timing. 

Xairos is the beneficiary of the New Space and Quantum Revolutions. Our technology is advanced and ready to deploy. We have a clear market need: a better GPS to enable self-driving vehicles, delivery drones, 6G, more efficient networks, and the quantum internet.

And we have new contracts and partnerships to announce - so please join our webinar today (Thursday) at 2 pm PT/5 pm ET to learn more. You can join with this link or add to your  Google Calendar, Outlook Calendar, or Yahoo Calendar

Beverage companies come and go, but the Quantum+Space revolution will change the world! So Invest Now to join this revolution before it is too late!


07.19.23

Xairos presentations today and tomorrow!

Have you ever wondered how Xairos' quantum technology works? What separates it from GPS and other GNSS systems? Well then don't miss our Time Appliances Project (TAP) presentation today at 11 am PT = 2 pm ET! TAP is an organization dedicated to providing better timing: "Time is a key element to get the highest efficiency in a distributed system. The performance of a distributed system depends on the synchronization of its elements."

It is available to the public and you can join at this link: https://meet.goto.com/tap, or dial in at +1 877 309 2073 or +1 571 317-3129, Access Code: 565-185-493

And definitely don't miss our Investor Webinar tomorrow (Thursday, July 20) at 5 pm ET, mere hours before we wrap up our StartEngine campaign. You can join directly at this link to join the webinar, but recommend adding to your  Google Calendar, Outlook Calendar, or Yahoo Calendar

This session will cover major and exciting updates about new projects, partnerships, and our fundraising. You do NOT want to miss it!

As we are now hours from leaving the StartEngine platform, we want to thank all of our investors! We have big ambitions so hope you can join us on this journey.

07.18.23

Xairos joins the 400/400 club!

Thank you to all of our investors for hitting a major milestone on StartEngine: over $400K raised from over 400 investors! And we cracked the top 30 "Most Funded" companies on StartEngine, which puts us in pretty impressive company!

Our team is passionate about our mission: to use quantum technology to fundamentally disrupt the 50-year-old GPS. When you consider the life cycle of heritage systems that are prime for disruption, 50 years seems to be a commonplace: some intial (usually government-sponsored) development, then adoption, then it becomes pervasive. People think "oh, it will be around forever" - until something better inevitably comes along. Think radio -> broadcast television -> cable -> streaming. Or, mainframe computers -> PCs -> smartphones. Telegraph -> Telephone -> Cell phone -> Internet. All formerly dominant technologies get a few decades in the sun.

Well, GPS is next. Case in point: the Department of Transportation recently asked for help from industry for "Alternative Means of Navigation Beyond GPS" for Advanced Air Mobility (AAM), stating the obvious "Given that these vehicles are expected to operate in urban, suburban, and remote places, reliable and persistent GPS may not be always available." 

Stated another way: if you want that future of flying cars and delivery drones, something new is needed.

Thank you again to our 400+ investors. And if you aren't in that group, there are still a few more days but do not wait - Invest Now!!!!


07.17.23

Join our Investor Webinar today at 5 pm MT!

As our StartEngine campaign winds down we want to give our investors an opportunity to learn about Xairos in a live interactive Zoom webinar. We will give updates on our business, commercialization, technology and fundraising progress and future plans. 

We have raised over $2M including $750K from crowdfunding, so it is important that we hold quarterly webinars with the goal of keeping our investors informed. As a warm-up you can check out our previous sessions that covered:

Please click this link to join the webinar today at 4 pm PT = 7 pm ET, or add to your Google Calendar, Outlook Calendar, or Yahoo Calendar. And if you can't make it, there is a make-up session Thursday at 5 pm ET.  But don't wait - our campaign ends only a few hours later! 

Time is running out to get your own quanta (i.e., minimum piece) of Xairos!


07.14.23

Only 6 Days Left to Invest!

No more extensions! Xairos has raised $750K from over 1000 investors, and is ready to move on to the next stage. 

With our initial fundraise we built a successful proof-of-concept - the world's most advanced quantum time transfer device. With this raise we are looking to build towards a future that will use entangled photons to revolutionize GPS in a concept known as SuperGPS. But we don't stop there - a global entanglement network can open doors for a new paradigm in network security, quantum sensors, and even a future Quantum Internet.

With big ambitions comes the need for like-minded partners and a clear path to commercialization. So we will provide insight into this at our Investor Sessions next week:

So please join the Quantum Revolution and help us change the world!!



07.13.23

Newsletter: What is Old is New Again

By the end of the 17th century, England had a problem. Their continental rivals were carving up the riches of the new world, and, as a result, held more ships and ports. The English ships couldn’t maneuver around them because they couldn’t figure out their East-West position, which required an accurate knowledge of local time. So they set up the Longitude Act with a cash prize to harness the ingenuity of industry.
Lots of crazy schemes were floated, including a time relay across 600 barges spaced at ten mile intervals. But what if there was fog? What if a pirate took out a barge? The time relay network was too easy to break.
Instead, England developed an network of observatories on coastlines or ports around the world to synchronize marine chronometers on passing ships. It was the world’s first synchronization network, and it propelled their domination of the seas and the rise of the British Empire.
The modern world is even more dependent on accurate time synchronization. All networks, data centers, and power grids rely on a timing signal that starts from global navigation satellite systems (GNSS). But in some ways GNSS suffers from the same problems identified centuries earlier; instead of fog, there are RF jamming devices. Instead of pirate ships, there are anti-satellite missiles.
This has spurred a movement towards resilience through redundancy. Other countries have developed their own GNSS, and the US is now turning to private industry for solutions.
This is the opportunity for Xairos. We can focus on a solution for commercial enterprise users that are already migrating to timing and synchronization units that integrate multiple signals of opportunity. Through this, we also have a system that can be adapted for military and Department of Transportation needs. Not only do we provide resiliency, but our proprietary quantum link provides unprecedented security and accuracy.

=================================================

This week's newsletter was inspired by a conversation with a timing and sync partner (hopefully we can announce soon!) that wants to add our signal to their system. They mentioned the 2000 TV movie "Longitude" based on the book of the same name that covers the English government's race to figure out how distribute time for maritime navigation with 1700s technology. This is the same conundrum the US government is in today - they are actively looking for innovative solutions from industry to address the shortfalls of GPS. Other items in the newsletter:

  • Our StartEngine campaign is winding down so don't miss your chance to own your own quanta (get it?) of Xairos!
  • If you have questions or just a general interest in Xairos please check out one of our upcoming Investor Sessions next week:
    • Investor Session 1 on Monday, July 17, 2023 at 7 pm ET (4 pm PT) at this link
    • Investor Session 2 on Thursday, July 20, 2023 at 5 pm ET (2 pm PT) at this link


07.12.23

Please join our next Investor Session!

We have a lot of exciting updates to share so hope you can join one of our investor sessions next week. These webinars are part of our commitment to keeping our investor community informed of our progress, with two options for flexibility:

We will cover our progress over the last quarter, including new projects and partnerships, and a deep dive into our commercialization plans based on an extensive customer discovery.

These sessions are timed (no pun intended!) with the conclusion of our StartEngine campaign, so Invest Now and join the Quantum Revolution to realize a future of self-driving vehicles, delivery drones, 6G networks, and more efficient data centers and power grids!

07.10.23

Our Competitive Advantage Part IV

A big part of our strategy is to smartly leverage government opportunities to help us with our commercial development. We have gotten small business innovation research (SBIR) projects with the US Air Force and NASA, with more in the works. As part of this we have prepared a detailed Commercialization Plan for recent proposals, that includes an intense commercial customer discovery that includes:

A summary of our Commercialization Plan will be presented at our next webinar this Tuesday, July 18, with registration details coming soon.

ENDING SOON!!!! Only ten days left to get your piece of Xairos! Invest now and join the Quantum Revolution!!!! ENDING SOON!!!! 

07.07.23

Less than Two Weeks Left to Invest in Xairos!

The World Economic Development Forum has declared that we are "heading towards a Quantum Divide" where quantum technology will “exponentially accelerate the Fourth Industrial Revolution.”

Xairos is on the forefront of this revolution with a system ready for commercialization to disrupt GPS. 

We already have projects with the US Air Force, NASA, AFRL, and JPL, with more in the works. But we are most excited about our commercial opportunities. We were invited to present at the Workshop on Synchronization and Timing Systems, International Timing and Sync Forum, National Space-based PNT Advisory Board, Time Appliances Project, QED-C Quantum Marketplace, and Precise Time and Time Interval Systems and Applications (PTTI). We also have some exciting commercial partnerships in development that we will announce soon!

Don’t miss your chance to be part of this revolution - Invest in Xairos now!


REWARDS

Multiple investments in an offering cannot be combined to qualify for a larger campaign reward.

10%

Stack Venture Club & Rewards!

Members get an extra 10% shares in addition to rewards below!

Venture Club

Venture Club

Venture Club Members earn 10% bonus shares on top of this and all eligible investments for an entire year. Not a member? Sign up at checkout ($275/year).

$1,000

Tier 1 Perk

Invest $1,000+ and receive 5% bonus shares

$5,000

Tier 2 Perk

Invest $5,000+ and receive 10% bonus shares

$10,000

Tier 3 Perk

Invest $10,000+ and receive 15% bonus shares + personal one-on-one telecon with the founding team

$25,000

Tier 4 Perk

Invest $25,000+ and receive 20% bonus shares + personal one-on-one telecon with the founding team

$50,000

Tier 5 Perk

Invest $50,000+ and receive 25% bonus shares + VIP tour of the Xairos testbed

$100,000

Tier 6 Perk

Invest $100,000+ and receive 50% bonus shares + VIP tour of the Xairos testbed

JOIN THE DISCUSSION

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RK
Richard Koch

2 years ago

Are you working with an Air Force GPS Lead Command and something akin to a GPS Product Improvement Working Group? Is there a program office and Program Element Manager for what you're doing? Is there a "no kidding" GPS replacement program that will go through source selection, or are you it?

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David Mitlyng

Xairos Systems

2 years ago

Richard, Great question. We are engaged with various groups that are looking at Alternative Position, Navigation, and Timing (APNT) solutions that may one day augment or even replace GPS, including Air Force, Space Force, DOT, the National Space-Based PNT Advisory Board, the Open PNT Industry Alliance, and many of the defense primes that will take an active role in the future of GPS. There are many stakeholders but no clear direction as of yet, even though funding was allocated for looking at a replacement in 2018 (https://www.congress.gov/115/plaws/publ282/PLAW-115publ282.pdf). Here's a good article talking about this (https://rntfnd.org/2022/05/30/172m-to-admire-the-problem-not-1-cent-to-fix-it/). In the meantime we are focused on government projects that will get us to funded satellites and demonstrations so we are in good position once there is action.

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Edward Zawacki

2 years ago

Hello David, I’m interested in Xairos and have enjoyed learning about your company. It’s certainly a vote of confidence getting a Phase II from the Air Force so I clicked on your link to the SBIR-STTR page to learn more. I see you were awarded in 2020 and the page says the contract end date was 11-5-2022. Did Xairos receive the full $1,013,633 that was listed? What were the results of the contract ands were you successful? Is this going to leads to a Phase III? Thanks!! :)

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David Mitlyng

Xairos Systems

2 years ago

Edward, Good question. Yes, the contract was completed but it did not result in a follow-on. As you may know, it is notoriously difficult to get a Phase III program of record. But we are in good shape for another Direct-to-Phase II opportunity with this customer, and we are now developing proposals working as a subcontract to major defense primes as a way to gain access to a larger program, including a recent DARPA bid.

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Richard Koch

2 years ago

Hi, In your latest update, you mentioned that Meta and NVIDIA found that a synchronization improvement of 80x made the distributed database run 3x faster. Is that what Xairos offers, the 80x?

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David Mitlyng

Xairos Systems

2 years ago

Richard, Excellent question. Our system actually could offer much better accuracy, in the neighborhood of 10,000x better! BUT it is also not trivial to provide that level of accuracy for an established data center. Meta and NVIDIA presented their work on offering the better synchronization at one of their existing hyperscale data centers at a recent OCP conference, with a focus on the challenges of a "brown field" installation. We want to start with a testbed to characterize the performance, interfaces, and commercial design, then roll out the timing product at new sites. But there will be a lot of green field opportunities as large data providers move away from large hyperscale data centers towards multiple POPs around large cities.

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Darnell Tullock

2 years ago

Hello David Will there be anymore raises? If so will non accredited investors be included?

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David Mitlyng

Xairos Systems

2 years ago

Darnell, Once we wrap up this StartEngine raise (two weeks left!) we will focus on investment from large strategics, VCs, and other accredited investors, supplemented by grants and contracts.

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Elias Phew

2 years ago

Hello David! I was wondering what your thoughts were on MuWNS technology, and where it fits in the competitive landscape - https://www.livescience.com/technology/communications/cosmic-ray-gps-system-that-tracks-underground-movement-could-change-the-way-we-respond-to-disasters

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David Mitlyng

Xairos Systems

2 years ago

Elias, Great question. There is a lot of research going into novel under ground and underseas navigation technology sponsored by the US Navy. This includes sensitive clocks and inertial measurement units, and sensors that measure muons and the Earth's gravity gradient and magnetic field. These devices are all pretty bulky so work well for subs and vehicles, but are a long way from fitting in a cell phone and commercial viability. Our near term focus is global time synchronization, which: 1. Addresses a much larger near-term market. All networks, telcos, and power grids require expensive timing and synchronization units that rely on the unsteady timing signal from GPS. OUr system will be orders of magnitude more resilient and accurate, at a better cost point. 2. Enables the last-mile position and timing over cell signal. This is the "SuperGPS" architecture that is necessary for indoor and urban navigation using consumer chips. 3. Is scalable. GPS and other GNSS require multiple satellites to provide position, navigation and timing. In contrast, we can provide timing with only one satellite or over fiber networks, which means we can rapidly penetrate the commercial market and expand organically without the need for a $billion$ constellation.

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Elias Phew

2 years ago

Congratulations on being asked to present at the International Timing and Sync Forum! Looking forward to hearing what comes out of it! 🙏

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David Mitlyng

Xairos Systems

2 years ago

Thanks Elias. We got a lot of industry interest from our WSTS keynote, including the invitation to speak at the next PNT Advisory Board, ITSF, and Time Appliances Project. But more importantly it has given us industry contacts and interest from early adopters. We will announce some of these partnerships and opportunities soon!

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Parvin Khosravi

2 years ago

Hi, I have a couple of questions. 1) What happens if you decide to sell your company for $2B, but I as an investor don't want to sell, thinking it is too low of a price. I guess this is a general question about investing in startups. 2) Looks like you will raise around $320K - $340K this round of SE. However, building and sending a satellite into space would probably require many millions of dollars. How do you plan on bridging this gap?

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David Mitlyng

Xairos Systems

2 years ago

Parvin, Thank you, these are great questions. 1) Our mutual goal is to exit the company at a good return on investment, and our Board and leadership team will represent the interests of our investors. We also plan to maintain communication our investors through our Newsletters (you can subscribe here: https://bit.ly/Xairos_newsletter) as well as feedback from investor sessions (the next one will be announced soon). There are also other options we are exploring to provide flexibility for our investors. 2) This fundraise will not cover the costs of launching a satellite, but will act as a bridge allowing us to meet key milestones necessary for that tranche of funding.

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Ajith Potluri

2 years ago

Hello David any update from yesterday's America's Seed Fund Startup Expo! Thank you

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David Mitlyng

Xairos Systems

2 years ago

Ajith, Yes, we were one of nine startups that were featured at a well-attended event showcasing startup success stories that got seed funding through the SBIR and STTR program. We were featured in a five minute video (will be posted on the SBA website soon), a five minute interview, and on a panel with two other startups. Lots of good connections. We are also invited to present at the Open PNT Industry Alliance on Thursday, and the Time Appliances Project next month. We will share an update soon including some announcements on partnerships and projects in development.

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Jeff Park

2 years ago

Hi - Any business development or sales updates in the last two months? Thanks.

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David Mitlyng

Xairos Systems

2 years ago

Jeff, Thank you for the good questions and interest. As of the time of this update there are no material business development or sales updates. We are always developing new projects, partnerships, and IP, and strive to keep our investors updated through regular StartEngine updates, our weekly newsletter, and quarterly investor webinars (next one to be announced soon).

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Jeff Park

2 years ago

Hi - Interesting company. A few questions please. 1. What is your current cash position? Someone else asked this question, but I don't think you actually provided a direct answer. What is your current monthly burn? 2. I believe you need to raise $1mm to execute on your roadmap over the next year. What's the backup plan if you don't raise that amount on SE? Do you have VCs coming into the round? If not, why not? 3. Are there any direct competitors that have built or are building an alternative to GPS? Who are they and what is their progress on their respective products? 4. Can you please provide more details on current pilot programs (what stage, progress to date, results, etc.)? Thanks in advance!

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David Mitlyng

Xairos Systems

2 years ago

Jeff, Good questions so let me break the response into two parts, with more details to come on the funding profile. To address your first three questions: 1. With current cash plus available grant funds we have runway into Q4 at our current burn rate of approximately $50K per month, but let me provide a detailed update. 2. Our roadmap is based on a $1mm Seed Bridge raise by the end of Q2. This includes this StartEngine, other investors (VCs and angels), and new non-dilutive grants. The primary use of funds is to convert our proof-of-concept into a proper testbed for further R&D, IP development, and demonstrations for commercial and government customers. But we also can continue at our current low burn rate, which means that we have to hold off on building the testbed and forgo additional hires. More likely we will adjust our plans based on the funds raised by the end of Q2 and the proposals that we are developing. We will have another investor presentation in April to review the plans, similar to our presentation in September (https://www.youtube.com/watch?v=dt-xdm2uSUs) and last month (https://www.youtube.com/watch?v=Rzr1xXraajs). 3. There are space-based PNT competitors like Satelles, Xona Space Systems, and Trustpoint GPS. They, and other government and commercial satellite operators, are focused on RF-based PNT signals from satellite constellation. Our system provides global timing from a few satellites using a quantum optical signal that is much more accurate and secure, then last mile RF PNT through cell and wi-fi carriers. So in a sense they are not direct competitors and could be potential partners that host our payloads.

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