T3 Defense Inc. (Nasdaq: DFNS) announced that its wholly owned subsidiary Tiltan Software Engineering Ltd. has received an initial purchase order from an unnamed Israeli defense contractor to deliver a proof of concept for a hardware-in-the-loop simulation of a next-generation infrared electro-optical system.

The initial order represents the first phase of a program that could expand into a contract valued at up to $2.0 million, contingent on the customer progressing from concept validation to full-scale development and qualification.

Under the agreement, Tiltan will use its proprietary T-Verse platform to simulate the customer's infrared electro-optical system. The platform is designed to recreate operational environments in a laboratory setting and incorporates artificial intelligence capabilities.

"This engagement reflects the type of high-value, scalable opportunity we are targeting across our portfolio," said Menny Shalom, CEO of T3 Defense.

"This award reinforces the growing recognition of Tiltan's capabilities among Israel's most advanced defense manufacturers," said Ehud Shafir, CEO of Tiltan Software Engineering Ltd.

T3 Defense is a defense technology holding company headquartered in New York. Tiltan, based in Netanya, Israel, specializes in simulation, 3D engines, generative AI training, and geo-systems, among other areas.