T3 Defense Subsidiary Tiltan Receives Purchase Order from Leading Israeli Defense Contractor for Next-Generation Infrared Electro-Optical Simulation Program

Rhea-AI Summary

T3 Defense (Nasdaq: DFNS) announced that subsidiary Tiltan Software Engineering received an initial purchase order from a leading Israeli defense contractor to deliver a Proof of Concept (PoC) Hardware-in-the-Loop (HWIL) simulation for a next-generation infrared electro-optical system.

The PoC is the first phase of a multi-stage program that, according to T3 Defense, may expand into a contract valued at up to $2.0 million as the customer advances from concept validation to full development and qualification. Tiltan will use its proprietary T-Verse platform, which combines advanced HWIL capabilities and integrated artificial intelligence, to simulate realistic operational environments for faster development and more effective testing.

Positive

• Potential multi-phase program value up to $2.0 million
• Initial HWIL simulation purchase order from a leading Israeli defense contractor
• Engagement uses proprietary T-Verse platform with AI and advanced HWIL
• Opportunity aligned with T3 Defense strategy to grow recurring, higher-value programs

Negative

• Program value of up to $2.0 million is conditional and not yet contracted
• Only an initial PoC phase has been ordered; later phases remain uncommitted

Market Reaction – DFNS

-1.84% $46.49

15m delay

-1.84% Vs previous close

+2.0% Peak in 0 min

$46.49 Last Price

$42.22 $59.31 Day Range

$46.98M Market Cap

0.3x Rel. Volume

Following this news, DFNS has declined 1.84%, reflecting a mild negative market reaction. Argus tracked a peak move of +2.0% during the session. Our momentum scanner has triggered 70 alerts so far, indicating high trading interest and price volatility. The stock is currently trading at $46.49.

Data tracked by StockTitan Argus (15 min delayed). Upgrade to Gold for real-time data.

Market Context

The platform records news_id 1080906 among DFNS’s recent customer-order announcements, adding contex...

Analysis

The platform records news_id 1080906 among DFNS’s recent customer-order announcements, adding context beyond the article. The initial purchase order is concrete, but broader expansion remains conditional; low short positioning and execution risk frame what to watch.

Key Figures

Potential program value: $2.0 million Operating experience: over 30 years

2 metrics

Potential program value $2.0 million Potential expansion from the initial purchase order

Operating experience over 30 years Tiltan simulation products and engineering experience

Historical Context

5 past events · Latest: Jul 20 (Positive)

Pattern 5 events

Date	Event	Sentiment	24h Move	Catalyst
Jul 20	Production line delivery	Positive	-18.9%	ITS delivered a defense-proven composite materials production line for industrial-scale manufacturing.
Jul 16	Reverse stock split	Negative	-28.9%	The company approved a 1-for-125 reverse stock split to address Nasdaq listing compliance.
Jul 13	Defense order delivery	Positive	-21.8%	Rimon completed delivery of a $1.1 million order for elevated battlefield lighting systems.
Jul 10	Majority stake acquisition	Positive	-18.4%	T3 Defense acquired a 60% Project35 stake covering drones and counter-UAV systems.
Jun 30	Defense order fulfillment	Positive	-1.4%	Positech reported $4.9 million in active and ongoing military-grade rotator deliveries.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Pattern Detected

Four of five recent announcements diverged from the stock's immediate direction, with positive operating updates followed by negative reactions.

Key Terms

hardware-in-the-loop, electro-optical, lidar

3 terms

hardware-in-the-loop technical

"a Proof of Concept (PoC) for a Hardware-in-the-Loop (“HWIL”) simulation"

A hardware-in-the-loop (HIL) setup is a testing method where physical components (like a vehicle control unit or sensor) are connected to a computer that runs a realistic simulation of the system around them. It lets engineers see how real hardware behaves in many scenarios without building the full product, acting like a flight simulator for components. For investors, HIL matters because it speeds development, uncovers faults earlier, and reduces costly recalls or delays by validating hardware under controlled, repeatable conditions.

electro-optical technical

"a next-generation infrared electro-optical system"

Electro-optical describes devices and technologies that convert between electrical signals and light or that use light controlled by electricity—think of them as translators between electricity and beams of light. Investors care because these technologies power items like high-speed communications, imaging systems, sensors and targeting equipment; improvements can open new markets, raise product value and affect revenue and competitive position much like a faster engine can change a car maker’s sales.

lidar technical

"3D models, and mapping data for VIS, IR, LiDAR, and SAR applications"

Lidar, which stands for Light Detection and Ranging, is a technology that uses laser beams to create detailed, three-dimensional maps of the environment. It works like a sophisticated eye that measures distances by bouncing light off objects, helping machines see and understand their surroundings. For investors, lidar is important because it enables advancements in autonomous vehicles, robotics, and mapping, which can drive innovation and growth in related industries.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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Initial HWIL Simulation Order Carries Potential to Scale to $2.0 Million

NEW YORK and NETANYA, Israel, Aug. 04, 2026 (GLOBE NEWSWIRE) -- T3 Defense Inc. (Nasdaq: DFNS) ("T3 Defense" or the "Company"), a defense technology holding company, today announced that its wholly owned subsidiary Tiltan Software Engineering Ltd. ("Tiltan") has received an initial purchase order from a leading Israeli defense contractor to deliver a Proof of Concept (PoC) for a Hardware-in-the-Loop (“HWIL”) simulation of a next-generation infrared electro-optical system.

The purchase order represents the first phase of a program that may expand into a contract valued at up to $2.0 million, as the customer and its subsidiaries progress from concept validation to full-scale development and qualification.

Under the agreement, Tiltan will use its proprietary T-Verse platform to simulate the customer’s next-generation infrared electro-optical system. By leveraging advanced HWIL capabilities, the platform recreates realistic operational environments in a laboratory setting, enabling faster development cycles, improved engineering efficiency, and more effective testing of complex scenarios that are difficult to replicate in the field. The solution also integrates artificial intelligence to help address increasingly complex battlefield requirements.

“This engagement reflects the type of high-value, scalable opportunity we are targeting across our portfolio,” said Menny Shalom, CEO of T3 Defense. “A leading defense prime selecting Tiltan for next-generation electro-optical simulation underscores the strength of our technology platform and highlights the potential for multi-phase, recurring programs that can drive meaningful growth.”

“This award reinforces the growing recognition of Tiltan’s capabilities among Israel’s most advanced defense manufacturers,” said Ehud Shafir, CEO of Tiltan Software Engineering Ltd. “Securing this initial phase positions us to expand into a broader, multi-phase engagement as the program progresses across the customer’s organization.”

This engagement supports T3 Defense’s strategy of deepening relationships with premier defense contractors and expanding recurring, higher-value simulation and engineering programs within Israel’s defense ecosystem.

About Tiltan Software Engineering Ltd.
Tiltan Software Engineering Ltd., a subsidiary of T3 Defense, is a leading solution provider specializing in Simulation, 3D Engines, Generative AI Training, Geo-Systems, 3D Content, and Operations Center Systems and Tools. With over 30 years of experience, Tiltan’s simulation products provide a one-stop-shop solution for training, development, and hardware-in-the-loop systems, powered by a proprietary 3D engine and Generative AI.

Tiltan’s Geo-System products support space, aerial, manned, and unmanned vehicles, addressing registration, localization, and navigation challenges, as well as geo-mapping systems. Tiltan’s in-house content production delivers high-fidelity, geo-specific visual databases, 3D models, and mapping data for VIS, IR, LiDAR, and SAR applications.

About T3 Defense
T3 Defense Inc. (Nasdaq: DFNS) is a defense company that acquires and operates mission-critical defense businesses embedded in long-cycle national security programs. The company targets businesses operating at constrained, qualification-driven, or execution-critical points across the industrial base where strategic value exists and where qualification, capacity, and execution are decisive. Through disciplined M&A, centralized capital and strategy, and decentralized operating autonomy, T3 Defense seeks to strengthen critical defense capabilities and compound long-term value. For more information, visit www.t3dfns.com.

Forward Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements include statements regarding ITS's engineering and manufacturing capabilities, the expected performance of the production line delivered to the client, and the Company's growth strategy. These statements involve known and unknown risks and uncertainties that could cause actual results to differ materially from those expressed or implied. T3 Defense Inc. undertakes no obligation to update or revise any forward-looking statements to reflect events or circumstances after the date of this press release, except as required by applicable law.

Contacts:
T3 Defense Inc.
575 5th Avenue
New York, NY 10017
contact@t3dfns.com
www.t3dfns.com

ITS Inc.
Amit Cwitk
amitc@its-eng.com

Investor Relations (US)
Lena Cati
Lena.cati@theequitygroup.com
+1 212 836-9611

Val Ferraro
Val.ferraro@theequitygroup.com
+1 212 836-9612

An image accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/678e1450-efa2-400c-8dda-45227fe17166

FAQ

What did T3 Defense (NASDAQ: DFNS) announce on August 4, 2026?

T3 Defense announced that its subsidiary Tiltan received an initial purchase order for a Hardware-in-the-Loop simulation PoC of a next-generation infrared electro-optical system. According to T3 Defense, this is the first phase of a potential multi-phase program with a leading Israeli defense contractor.

What is the potential value of Tiltan’s new HWIL simulation program for DFNS shareholders?

The program may expand into a contract worth up to $2.0 million, according to T3 Defense. This potential value depends on the customer and its subsidiaries progressing from concept validation to full-scale development and qualification across multiple phases.

Which technology platform will Tiltan use in the new DFNS infrared simulation project?

Tiltan will use its proprietary T-Verse platform for the HWIL simulation, according to T3 Defense. T-Verse recreates realistic operational environments, integrates artificial intelligence, and supports faster development cycles and more effective testing of complex battlefield scenarios in a lab setting.

How does the Tiltan purchase order support T3 Defense’s (DFNS) strategy?

According to T3 Defense, the engagement supports its strategy of deepening relationships with premier defense contractors and expanding recurring, higher-value simulation and engineering programs. Management views this PoC as a scalable opportunity that could lead to multi-phase, recurring growth within Israel’s defense ecosystem.

Who is the customer in Tiltan’s new HWIL simulation order announced by DFNS?

The customer is described as a leading Israeli defense contractor, though not named specifically. According to T3 Defense, the engagement may extend across the customer and its subsidiaries as the program progresses from concept validation to full-scale development and qualification.

What capabilities does Tiltan bring to the DFNS HWIL simulation program?

Tiltan contributes its T-Verse platform, proprietary 3D engine, and simulation expertise, according to T3 Defense. The solution combines advanced HWIL, generative AI training, and geo-systems to create realistic environments, supporting training, development, and hardware-in-the-loop testing for complex electro-optical systems.