LOMATT DYNAMICS
92AD3
FFL type 07
Who we are.
Lomatt Dynamics is an American manufacturer that produces advanced defense technology that protects people and national security, while keeping critical information and infrastructure secure. Engineered solutions provide new ways to help protect and innovate our customers with a competitive edge across air, sea, land.
Our journey.
What we do helps provide technologies that make tomorrow a better day. We knew there was a need for innovation in various sectors; defense, energy, manufacturing, and we knew we could provide solutions that could help improve efficiency, quality, and performance.
Serving both government and civilian markets, Lomatt Dynamics has been there to help bring people back from tough situations. Starting the business during the Covid 19 pandemic ‘20/’21, proved to be a unique challenge. Lomatt Dynamics developed solutions for hospitals and governments to help aid those in need and bring communities back from the burden and struggles of the outbreak.
Fast forward to today, Lomatt Dynamics continues to develop solutions that help challenge and inspire engineers, entrepreneurs, and investors. Our goal is to continue our innovations and make tomorrow a better day.
Some of our customers include the United States Department of Defense, Department of Justice, and the Department of Interior
Services.
· Training and Simulation: Lomatt Dynamics provides training and simulation services to government and commercial customers. Firearm, live fire training, munitions simulations.
· Engineering and Technical Services: Lomatt Dynamics provides engineering and technical services, including systems engineering, software development, and technical support services, as well as mechanical engineering services and a broad range of manufacturing.
· Manufacturing services, including white label manufacturing of ammunition. Additional capabilities include machining, fabricating, additive and more.
Overall, Lomatt Dynamics provides a broad range of services to support its customers' missions and operations, leveraging its expertise in technology, engineering, to deliver value added solutions.
Future Innovations & Goals
U.S. Manufactured Munitions Simulators
Our goal is to provide a full range of products that will bring unique features and solutions to a market with high demand. Our long-term goal is to provide a full product line to replace TAGinn products. As of today, TAGinn has left a massive hole in the U.S. market. We have identified an opportunity to fill in the gaps and provide an existing customer base and community with products that are entirely manufactured in the United States.
Initial Takeaways
· Lomatt Dynamics is currently testing these products and collecting crucial data, many products have already been tested in what will be their final format for resale.
· Funding will be used to extend our current team and bring additional resources to the table (tooling, manufacturing team members, new location specifically zoned for explosives)
· This project is intended to be funded as a startup DBA branched off Lomatt Dynamics as there is no guarantee of success however there is a high probability for fast ROI and consistent revenue (cash flow) through various sources including distributors.
· Projected margin percentages range between 60 to 75 sold directly to distributors with online sales factory direct between 82 to 90 percent depending on the product.
· Current market demand has not subsided and as the U.S. continues to restrict imports on Russian manufactured munitions and other ITAR listed items, TAGinn can’t continue to supply to its U.S. market. This opens the flood gate to a U.S. based company to take over their existing customer base with very little resistance.
Revenue streams from these product lines include but are not limited to the following:
o Government sales (on contract)
o Government sales through GSA schedule
o Distributor sales (bulk sales)
o Training facility sales (bulk sales)
o Direct law enforcement sales
o Civilian sales (online/over the counter gun shop sales)
o Sporting goods stores (bulk sales)
o Paintball and airsoft fields, arenas (bulk sales)
S.W.O.T Breakdown
Strengths – Reduced cost for consumers and manufacturers to provide a product that simulates existing munitions. Overall the average cost for a M67 fragmenting hand grenade is $45 for the United States in FY 2021 and $47 FY 2022. Our cost to manufacture a “simulation” device that provides training on how to throw, report, flash, and fragments in the form of plastic BBs and foam allows for realistic training without the need for fortified training facilities. Our flashbang products will also provide law enforcement with tools needed for training without the cost of a real CTS grenade at the cost of $56 each (government cost). These “pyrotechnic devices” per the ATF are also available to the public through the civilian market which allows for a diversified customer base.
Weaknesses – Almost all products within this product line are controlled devices covered under CFR 1910. 109 (a)(10) and are also considered hazardous materials whilst in transport (1.4g) UN0431 which means specialty shipment is required by federal law. In addition to being controlled devices, manufacturing requires an explosives license per the ATF and ITAR registration through the DDTC and a facility engineered to produce such items which is challenging to lease and insure. This is where LMS Systems needs funding to provide a safe facility that will allow use to continue development and offer the resources for further munitions and technologies for the federal government and civilian markets.
Opportunities – Current demand for munition training and simulation systems is at an all time high. These training and simulation devices are used every day in the airsoft and paintball industry to simulate munitions; this means there is a very large footprint and market in the civilian sector. For military and defense, realistic training saves lives. For training purposes these munitions are still costly and fall under ITAR regulations. In addition to the U.S. DOD other governments use 40mm munitions, and hand thrown devices which means there is a solid international market far beyond the United States. Lastly as tensions rise in eastern Europe, training devices are crucial for all nations both government and civilian markets. These devices also provide safe “live fire” training for EOD teams across the world to ensure safe but realistic disposable training is provided. Accessories and other products are also a possibility once LMS Systems is officially launched.
Threats – As tensions between China/ Russia and the United States rise supply chain issues continue to rise as well. Relying on imported materials becomes more of a gamble daily between tariffs, delays, conflicts and more. These supply chain delays must be combated by diversifying suppliers and vetting them as trusted sources. In addition, our competitors may file patents that use similar concepts and ideas before Lomatt Dynamics is able to implement them which poses a risk for LMS Systems.
What We Can Do – Together
We can offer a solution to the no longer available Russian avaliable simulation munitions also known by the brand name (TAGinn) by using U.S. engineered/manufactured systems. By having complete manufacturing from conception to production in the United States, Lomatt Dynamics is more likely to gain future DoD contracts than manufacturers that use foreign components and assemblies.
Together we can grow and provide products to a market that has been waiting over a year and half on orders that were placed over 2 years ago… This is a home run and a no brainer for an investor that wants a fast return on their initial investment and a steady cash flow on products that are challenging to compete with in the open market.
Current Roadblocks
- Our current setup allows us to start manufacturing today in small volumes. However, our location restricts any manufacturing for resale at this point.
- Some tooling has been manufactured and tested, but not all
- Various products have been manufactured and tested, but not approved for commercial sale
- Extended product line is already in the works however will require funding
- These products are simple to manufacture and are cost effective to make in both large and small quantities, but an explosives licence is required for resale as well as ITAR registration for LMS Systems.
- The required facility will need to be engineered to provide safe manufacturing of (pyrotechnic grade - low yield) explosives. In addition explosive magazines will need to be implemented as well as office space which adds to the funding request.
Additional takeaways
· Existing distributors and primary customer target accounts are Evike USA, MSATO, Airsoft Junkiez, and Gryphon Energetics Inc. These “civilian market” organizations allow for bulk sales at high volumes. They hold the current customer base for the U.S. and Canada in the civilian market.
· Government distributors are Mile High Shooting Supplies, BOTACH Tactical, Graf & Sons, Optics Planet. They offer supplies to both civilian and government bodies (federal and state).
· The Department of Justice, OSHA, and CFR regulations restricts facility features and locations. Because of the existing restrictions this market is easier for an experienced Department of Defense contractor to enter rather than an actual startup company. Our current facility only supports the manufacturing of firearms and ammunition, NOT explosives.