Core Insights - DEFSEC Technologies Inc. has voluntarily filed restated unaudited condensed consolidated interim financial statements for the three and nine months ended June 30, 2025 and 2024 due to errors identified in the initial measurement of right-of-use assets and lease liabilities [1][2] - The restated financial statements do not affect the interim statements of net loss, comprehensive loss, changes in shareholders' equity, or cash flows, but result in an increase in working capital by $0.2 million as of June 30, 2025 [2] Company Overview - DEFSEC develops and commercializes next-generation tactical systems for military and security forces, including digitization of tactical forces for real-time situational awareness and targeting information [3] - The company's product portfolio includes countermeasures against electronic detection, lasers, and drones, and features a proprietary non-lethal product line branded PARA SHOTTM [3]

Core Viewpoint - DEFSEC Technologies Inc. has appointed Niel Marotta to its board, enhancing its leadership team as the company anticipates continued revenue growth in fiscal 2026 [2][3]. Company Developments - Niel Marotta's appointment is effective January 23, 2026, and he brings significant capital markets experience, having previously managed over $1 billion at Fidelity Management and Research Company [2]. - The company will hold an amended annual and special meeting of shareholders on February 19, 2026, to reflect the addition of Marotta and increase the board size from six to seven directors [3][4]. Financial and Operational Outlook - Fiscal 2025 was marked by strong revenue growth, and the company expects this momentum to continue into fiscal 2026, indicating a strategic move to bolster its board with experienced talent [3]. - The amended management information circular will ensure that previously submitted proxies remain valid while allowing shareholders to vote on the new board structure and Marotta's election [5]. Company Profile - DEFSEC Technologies develops next-generation tactical systems for military and security forces, focusing on real-time situational awareness and countermeasures against various threats [6]. - The company is headquartered in Ottawa, Canada, and has a representative office in London, UK, indicating its international presence in the defense sector [6].

Core Points - DEFSEC Technologies Inc. announced the closing of a registered direct offering for 566,040 common shares at CAD$3.64 (US$2.65) per share [1] - The gross proceeds from the offering were approximately CAD$2.1 million, intended for working capital and general corporate purposes [2] - The company issued unregistered warrants to purchase up to 566,040 common shares at an exercise price of CAD$4.27, which are immediately exercisable and will expire in five years [1][2] Financial Details - The cash fee paid to the placement agent was CAD$154,529, along with 42,453 common share purchase warrants at an exercise price of CAD$4.55 [3] - The offering remains subject to final approval from the TSX Venture Exchange [6] Company Overview - DEFSEC develops and commercializes next-generation tactical systems for military and security forces, including real-time shared situational awareness and targeting information [7] - The company also offers countermeasures against threats such as electronic detection, lasers, and drones, and has a proprietary non-lethal product line branded PARA SHOTTM [7]

Core Insights - DEFSEC Technologies is experiencing significant revenue growth momentum, with annualized billings for government services expected to reach approximately CAD$8.3 million starting February 2026, marking a 704% increase compared to FY2024 billings of CAD$1 million [1][2] Group 1: Revenue and Growth - The company plans to increase its workforce from 24 to 39 roles by February 2026, contributing to the anticipated revenue growth [1] - Annualized gross margin contribution from government services is projected to rise to approximately CAD$2.3 million, an increase of 845% from FY2024 gross margin of CAD$0.2 million [1] - The increase in revenue and gross margin is largely attributed to an expanded contract with the Directorate Land Command Systems Program Management Software Engineering Facility for the digital modernization of the Canadian Armed Forces [1] Group 2: Partnerships and Operational Strategy - DEFSEC has partnered with ADGA Group Consultants Inc. to fast-track the fulfillment of new work scope requirements, subcontracting 13 of the additional roles [1] - The collaboration with ADGA is expected to have an immediate positive impact on revenue and margins when the additional work commences in February 2026 [1] - The company is well-positioned for further growth as the Canadian government increases defense spending on critical capabilities [1]

Core Insights - DEFSEC Technologies Inc. reported significant growth in Q3 Fiscal 2025, with revenue increasing by 330% compared to Q3 Fiscal 2024 and 278% year-to-date [1][5] - The gross margin also saw substantial growth, rising by 879% in Q3 Fiscal 2025 over Q3 Fiscal 2024, indicating improved profitability [1][5] - The company is transitioning from a development stage to a revenue ramp-up phase, driven by government defense contracts and growth in its ARWEN® product line [2][3] Revenue Growth - Total revenue for Q3 Fiscal 2025 reached CAD 1,417.5 million, up from CAD 329.5 million in Q3 Fiscal 2024, marking a CAD 1.1 million increase for the three-month period [6][7] - Year-to-date revenue increased to CAD 3,569.3 million from CAD 944.4 million in the previous year, reflecting a CAD 2.6 million increase [6][7] - The growth was primarily attributed to government contracts and a significant ramp-up in the Land C4ISR contract, alongside accelerated deliveries in the ARWEN® product line [5][7] Gross Margin Performance - Gross margin for Q3 Fiscal 2025 was CAD 399.5 million, a significant increase from CAD 40.8 million in Q3 Fiscal 2024, resulting in a gross margin percentage rise from 12.4% to 28.2% [6][8] - The increase in gross margin was driven by higher revenue and improved margins from the digitization business line, despite lower margins from the ARWEN® product line due to product mix changes [8] Operating Expenses - Total operating expenses for Q3 Fiscal 2025 were CAD 2,229.7 million, slightly up from CAD 2,225.6 million in Q3 Fiscal 2024 [6][10] - General and administrative expenses remained stable, while selling and marketing expenses increased due to a shift in focus towards business development for key products [11] - Research and development expenses decreased as the company transitioned to the commercialization stage for its PARA SHOTTM products [11] Financial Position - The cash balance increased by CAD 2.3 million over the fiscal year 2024 year-end, excluding a subsequent public offering that raised CAD 6.8 million in gross proceeds [1] - The company reported an adjusted EBITDA loss of CAD 1,491.5 million for Q3 Fiscal 2025, an improvement from CAD 1,901.3 million in the same period last year [6][11] Future Outlook - Management anticipates continued revenue growth as additional resources are allocated to fulfill Canadian Government Defence programs [9] - The company expects increased demand for its ARWEN® products and the commercial launch of KWESST LightningTM, alongside initial orders for its Battlefield Laser Detection System [9]