Financial Performance - Revenue for the three months ended June 30, 2025, was CAD 1,417,503, a significant increase of 330% compared to CAD 329,476 for the same period in 2024[5] - Gross margin for the nine months ended June 30, 2025, was CAD 1,118,033, compared to CAD 229,189 for the same period in 2024, reflecting a growth of 387%[5] - Net loss for the nine months ended June 30, 2025, was CAD 7,217,588, compared to CAD 5,101,131 for the same period in 2024, representing an increase of 41%[5] - For the nine months ended June 30, 2025, DEFSEC Technologies Inc. reported a net loss of CAD 7.22 million, compared to a net loss of CAD 5.10 million for the same period in 2024, representing an increase of approximately 41.5%[17] - The revenue for the nine months ended June 30, 2025, was CAD 3,569,323, compared to CAD 944,408 for the same period in 2024, indicating a growth of 277%[114] Assets and Liabilities - Total assets increased to CAD 10,106,001 as of June 30, 2025, up from CAD 5,617,148 on September 30, 2024, representing an increase of 79%[3] - Total liabilities increased to CAD 5,521,372 as of June 30, 2025, compared to CAD 4,248,861 on September 30, 2024, marking an increase of 30%[3] - Shareholders' equity rose to CAD 4,584,629 as of June 30, 2025, up from CAD 1,368,287 on September 30, 2024, indicating a growth of 236%[3] - Cash and cash equivalents increased to CAD 2,543,211 as of June 30, 2025, compared to CAD 256,828 on September 30, 2024, a growth of 889%[3] - Trade receivables increased to $1,097,980 as of June 30, 2025, compared to $455,049 as of September 30, 2024[36] - Total inventories decreased to $508,747 as of June 30, 2025, from $533,163 as of September 30, 2024[38] - Accounts payable and accrued liabilities totaled $1,111,134 as of June 30, 2025, down from $1,660,637 as of September 30, 2024[43] - Lease obligations increased to $2,740,753 as of June 30, 2025, from $302,223 as of September 30, 2024[47] Cash Flow and Financing - The cash flows used in operating activities for the nine months ended June 30, 2025, were CAD 6.58 million, slightly improved from CAD 6.88 million in 2024[17] - The company raised CAD 4.87 million from a U.S. public offering in November 2024 and CAD 3.42 million from a private placement in the same month[17] - The company issued shares for public offerings totaling CAD 3,066,686 during the nine months ended June 30, 2025[6] - The company raised approximately $4.9 million (US$3.5 million) in the November 2024 public offering, issuing 3,810 common shares and 3,809,000 pre-funded warrants[80] - The company raised approximately CAD 3.7 million in gross proceeds from a brokered private placement offering in February 2025[96] Expenses and Costs - Operating loss for the three months ended June 30, 2025, was CAD 1,822,355, a decrease of 17% from CAD 2,184,778 in the same period of 2024[5] - Research and development expenses for the nine months ended June 30, 2025, were CAD 1,374,825, down 23% from CAD 1,787,382 in the same period of 2024[5] - General and administrative expenses decreased by $362,269 and $1,054,764 for the three and nine month periods ended June 30, 2024, respectively[34] - The company incurred net finance costs of CAD 135,985 for the nine months ended June 30, 2025, slightly down from CAD 137,889 in 2024[17] - The net finance costs for the three months ended June 30, 2025, were CAD 42,565, a decrease from CAD 63,034 in the same period of 2024[116] Share Capital and Warrants - As of June 30, 2025, the total number of outstanding common shares increased to 667,707 from 75,199 on September 30, 2024, reflecting a significant issuance of shares[65] - The total outstanding warrants as of June 30, 2025, amounted to 19,358,872, with an average exercise price of CAD 4.00[104] - The company recorded an increase to share capital of CAD 5,971,828 from the exercise of warrants[104] - The company issued 50,248 common shares and 2,884,179 pre-funded warrants as part of the February 2025 private placement, with exercise prices of CAD 19.488 and CAD 0.928 respectively[97] - The company recognized share issuance costs of CAD 927,219 related to the February 2025 private placement, which included broker compensation warrants[102] Management and Strategy - The company is focused on timely commercial launches of new products and securing additional capital to support its operations and growth strategy[18] - Key management compensation for the nine months ended June 30, 2025, totaled $1,706,116, an increase from $997,802 in the same period of 2024[124] Other Financial Metrics - The company reported a significant change in working capital, moving from a negative CAD 1.1 million in September 2024 to a positive CAD 2.4 million by June 30, 2025[17] - The company experienced a loss of $96,490 in fair value of warrant liabilities during the three months ended June 30, 2025[58] - The company recorded a foreign exchange loss of CAD$258,856 for the three months ended June 30, 2025, compared to a loss of CAD$22,492 in the same period of 2024[118] - As of June 30, 2025, total contractual obligations amounted to $8,101,764, with $1,356,917 due within one year[119]
KWESST Micro Systems (KWE) - 2025 Q3 - Quarterly Report