Core Insights - DEFSEC Technologies Inc. reported significant revenue growth in FY2025, with total revenue increasing by 229% to $4.9 million compared to FY2024 [5][11]. - The company anticipates continued growth in FY2026, with expected program billings reaching approximately $8.81 million annually starting February 2026 [2][11]. - DEFSEC received its first order for the DEFSEC LightningTM SaaS product, indicating strong market interest [2][11]. Financial Performance - DEFSEC's digitization revenue for FY2025 was $4.0 million, marking a 289% increase from FY2024 [5]. - Gross margin improved to $1.7 million, representing 35.2% of total revenue, compared to 32.3% in FY2024 [5]. - The operating loss decreased to $9.1 million in FY2025 from $9.8 million in FY2024 [5][21]. Cash Position - As of September 30, 2025, the company had cash and cash equivalents of $6.7 million, a significant increase from $0.3 million at the same time in 2024 [6][22]. Revenue Drivers - Revenue growth was primarily driven by increased task orders for software services from the Canadian Department of National Defence under two long-term contracts, with potential revenue of up to $75 million through 2028 and 2029 [2][11]. - The less-lethal ARWEN product line also contributed to revenue, with sales nearly doubling from $0.5 million to $0.9 million in FY2025 [4]. Future Outlook - The company plans to fully commercialize the DEFSEC LightningTM system in early 2026, following positive market feedback [2]. - Management believes that the extensive customer base for ARWEN products in North America presents a strong market for new offerings like PARA SHOTTM and DEFSEC LightningTM [4][12]. Financing Activities - On August 7, 2025, DEFSEC closed a public offering, raising approximately $6.8 million through the issuance of common shares and warrants [7]. - A registered direct offering on December 17, 2025, involved the sale of 566,040 common shares at a price of $3.64 per share [8]. Company Overview - DEFSEC develops next-generation tactical systems for military and security forces, focusing on real-time situational awareness and targeting information [9]. - The company is headquartered in Ottawa, Canada, with a representative office in London, UK [9].

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]

As filed with the Securities and Exchange Commission on August 1, 2023. Registration Statement No. 333- UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ___________________________ KWESST MICRO SYSTEMS INC. 155 Terence Matthews Crescent, Unit #1, Ottawa, Ontario, K2M 2A8 (613) 241-1849 (Primary Standard Industrial Classification Code Number) (Exact name of registrant as specified in its charter) (I.R.S. Employer Identification No.) British Columbia 3080 98-1650180 FORM F-1 REGISTRATIO ...