$DFSC

DEFSEC Technologies Inc.

CIK:0001889823|SEC Filings

Consolidated Statements of Net Loss and Comprehensive Loss - CAD ($)	12 Months Ended
	Sep. 30, 2025	Sep. 30, 2024	Sep. 30, 2023
Consolidated Statements of Net Loss and Comprehensive Loss
Revenue	$ 4,942,626	$ 1,504,328	$ 1,234,450
Cost of sales	(3,204,578)	(1,017,826)	(1,425,828)
Gross profit (loss)	1,738,048	486,502	(191,378)
Operating expenses
General and administrative	5,225,997	4,836,815	6,165,297
Selling and marketing	2,037,088	1,525,228	2,892,679
Research and development, net	2,367,995	2,354,160	1,529,572
Share-based compensation	113,692	291,761	373,554
Depreciation and amortization	1,073,727	1,277,911	952,508
Total operating expenses	10,818,499	10,285,875	11,913,610
Operating loss	(9,080,451)	(9,799,373)	(12,104,988)
Other income (expenses)
Share issuance costs	(1,807,686)	(541,566)	(1,985,074)
Net finance costs	(173,375)	(196,323)	(668,034)
Foreign exchange gain (loss)	114,347	59,191	(98,275)
Impairment of right-of-use assets	(88,596)
Gain/loss on disposals	6,809	(7,256)	(291,181)
Change in fair value of warrant liabilities	1,402,258	3,047,568	5,841,192
Total other income (expenses), net	(546,243)	2,361,614	2,798,628
Loss before income taxes	(9,626,694)	(7,437,759)	(9,306,360)
Net loss	(9,626,694)	(7,437,759)	(9,306,360)
Other comprehensive income (loss):
Foreign currency translation differences	(46,557)	1,143	61,755
Total comprehensive loss	$ (9,673,251)	$ (7,436,616)	$ (9,244,605)
Net loss per share
Net loss per share, Basic (in Dollars per share)	$ (15.78)	$ (188.86)	$ (478.85)
Net loss per share, Diluted (in Dollars per share)	$ (15.78)	$ (188.86)	$ (478.85)
Weighted average number of shares outstanding
Weighted average number of shares outstanding, Basic (in Shares)	610,169	39,382	19,435
Weighted average number of shares outstanding, Diluted (in Shares)	610,169	39,382	19,435

Consolidated Statements of Cash Flows - CAD ($)	12 Months Ended
Consolidated Statements of Cash Flows - CAD ($)	Sep. 30, 2025	Sep. 30, 2024	Sep. 30, 2023
OPERATING ACTIVITIES
Net loss	$ (9,626,694)	$ (7,437,759)	$ (9,306,360)
Items not affecting cash:
Depreciation and amortization	1,081,590	1,277,911	952,508
Share-based compensation	113,692	291,761	373,554
Change in fair value of warrant liabilities (including related foreign exchange gain)	(1,325,549)	(3,047,568)	(5,786,593)
Net finance costs	173,375	196,323	668,034
Impairment of intangible assets			1,169,440
Impairment of ROU asset	72,868
Loss on disposals		7,256	291,181
Gain on debt settlement	(500)
Unrealized foreign exchange loss	29,637
Changes in non-cash working capital items	(358,246)	(343,671)	(2,310,266)
Interest received (paid)	74,896	(4,997)	(130,127)
Add back items not affecting operating activities:
Share issuance costs	1,807,686
Cash used in operating activities	(7,957,245)	(9,060,744)	(14,078,629)
INVESTING ACTIVITIES
Additions of property and equipment	(140,620)	(101,330)	(176,949)
Investments in intangible assets	(26,675)	(9,823)	(1,123,186)
Purchase of restricted short-term investment	(17,500)
Deposit for advanced royalties			(148,410)
Recognition of open orders from acquisition	4,387		7,811
Cash flows used in investing activities	(180,408)	(111,153)	(1,440,734)
FINANCING ACTIVITIES
Proceeds from U.S. IPO and Canadian Offering, net			16,346,768
Proceeds from the issuance of common shares and warrants	18,718,524	4,965,680	7,357,012
Payments of share offering costs	(4,346,838)	(747,926)	(542,591)
Payments of lease obligations	(172,153)	(197,651)	(75,487)
Proceeds from exercise of warrants	402,837	1,613
Repayment of borrowings			(2,333,315)
Proceeds from exercise of stock options			4,052
Repurchase of vested RSUs and PSUs			(612)
Cash flows provided by financing activities	14,602,370	4,021,716	20,755,827
Net change in cash during the year	6,464,717	(5,150,181)	5,236,464
Cash and cash equivalents, beginning of year	256,828	5,407,009	170,545
Effect of exchange rates on cash	(35,116)
Cash and cash equivalents, end of year	6,686,429	256,828	5,407,009
Cash and cash equivalents consist of the following:
Cash held in banks	6,686,429	256,828	4,407,009
Short-term guaranteed investment certificates			1,000,000
Cash and cash equivalents, end of year	$ 6,686,429	$ 256,828	$ 5,407,009

Consolidated Statements of Financial Position - CAD ($)	Sep. 30, 2025	Sep. 30, 2024
ASSETS
Cash and cash equivalents	$ 6,686,429	$ 256,828
Restricted short-term investment	47,500	30,000
Trade and other receivables	1,494,152	567,875
Inventories	519,609	533,163
Prepaid expenses and other	163,562	179,051
Deferred costs	34,773	275,438
Current assets	8,946,025	1,842,355
Property and equipment	279,132	311,712
Right-of-use assets	1,165,181	230,124
Deposit	46,132	28,806
Intangible assets	2,390,030	3,174,832
Deferred costs	94,976	29,319
Non-current assets	3,975,451	3,774,793
Total Assets	12,921,476	5,617,148
Liabilities
Accounts payable and accrued liabilities	2,310,662	1,660,637
Accrued royalties liability	200,000	200,000
Lease obligations	188,907	147,078
Contract liabilities	7,671	120,571
Warrant liabilities	210,965	847,295
Current liabilities	2,918,205	2,975,581
Accrued royalties liability	1,087,009	1,118,135
Lease obligations	1,114,543	155,145
Non-current liabilities	2,201,552	1,273,280
Total Liabilities	5,119,757	4,248,861
Shareholders' Equity
Share capital	47,003,991	37,822,725
Warrants	7,764,412	1,084,687
Contributed surplus	5,398,445	5,152,753
Accumulated other comprehensive loss	(85,077)	(38,520)
Accumulated deficit	(52,280,052)	(42,653,358)
Total Shareholders' Equity	7,801,719	1,368,287
Total Liabilities and Shareholders' Equity	$ 12,921,476	$ 5,617,148