Defense Technologies International Corp. Reports Improved Net Loss of $222,164 for Quarter Ending July 31, 2025

Defense Technologies International Corp. (DTIC) reported its financial results for the three months ending July 31, 2025, revealing a net loss of $222,164, a significant improvement from a net loss of $461,239 during the same period in 2024. The company did not generate any revenue during this quarter, maintaining a consistent trend from previous periods. Total operating expenses increased to $187,230, compared to $163,517 in the prior year, primarily due to higher general and administrative costs, which rose to $86,980 from $46,017. Consulting expenses decreased to $100,250 from $117,500, contributing to the overall loss reduction.

In terms of financial position, DTIC reported total current assets of $10,021,000 as of July 31, 2025, up from $9,092,000 at the end of April 2025. However, total current liabilities also increased to $2,309,579 from $2,084,218, resulting in a working capital deficit of $2,299,558. The company’s accumulated deficit grew to $18,271,717, reflecting ongoing challenges in establishing a sustainable revenue stream. The liabilities included significant amounts owed to related parties, totaling $838,708, and convertible notes payable of $215,391.

Strategically, DTIC continues to focus on its subsidiary, Passive Security Scan, Inc. (PSSI), which is responsible for the development and marketing of security technology products. The company has built 33 Passive Portal units, with two units used in a beta test at a school in Texas, and five units sold in the previous fiscal year. The company aims to secure initial orders from school districts following the successful conclusion of the beta test, which could generate the first revenues for DTIC. The company has also issued common stock for the conversion of preferred shares, reflecting ongoing efforts to manage its capital structure.

Operationally, DTIC's cash flow from operating activities showed a net outflow of $49,447 for the quarter, compared to $39,391 in the same period last year. Financing activities provided $50,376, primarily from related party loans and notes payable. The company anticipates that related parties and other lenders will continue to support its operations in the near term, as it seeks to complete production of its Offender Alert Passive Scan system. However, the company has expressed uncertainty regarding its ability to secure sufficient financing to execute its business plan effectively.

Looking ahead, DTIC remains focused on advancing its product offerings and establishing a reliable revenue stream. The company plans to continue leveraging its relationships with related parties for funding while exploring additional financing options through the sale of securities and convertible debt. Despite the challenges, management is optimistic about the potential for future growth, contingent on the successful deployment of its security technology products in the market.