DEFSEC Technologies Files Restated Interim Financial Statements

Rhea-AI Summary

DEFSEC Technologies (TSXV: DFSC / NASDAQ: DFSC) voluntarily filed restated unaudited condensed consolidated interim financial statements for the three and nine months ended June 30, 2025 and 2024 and a related Restated MD&A.

The adjustments correct the initial measurement of right-of-use assets, lease liabilities and lease-related prepayments for a June 2025 lease; changes were limited to the interim statements of financial position and notes. There was no change to net loss, cash flows or shareholders' equity, and working capital as at June 30, 2025 increased by $0.2 million. Documents are available on SEDAR+.

News Market Reaction

+0.52%

1 alert

+0.52% News Effect

+$20K Valuation Impact

$4M Market Cap

0.6x Rel. Volume

On the day this news was published, DFSC gained 0.52%, reflecting a mild positive market reaction. This price movement added approximately $20K to the company's valuation, bringing the market cap to $4M at that time.

Data tracked by StockTitan Argus on the day of publication.

Key Figures

Working capital change: $0.2 million increase Price change: -4.43% 52-week range: $1.62–$13.75 +5 more

8 metrics

Working capital change $0.2 million increase Impact of lease accounting restatement at June 30, 2025

Price change -4.43% Move on day of restated interim financials news

52-week range $1.62–$13.75 52-week low and high before restatement announcement

Registered shares 566,040 shares Common shares in Dec 18, 2025 registered direct offering

Offering proceeds CAD$2.1 million Gross proceeds from Dec 18, 2025 registered direct offering

Warrants issued 566,040 warrants Unregistered warrants in concurrent private placement

Agent warrants 42,453 warrants Placement agent warrants at CAD$4.55 exercise price

Shares outstanding 1,993,626 shares Expected outstanding after Dec 18, 2025 share sale

Market Reality Check

Price: $1.89 Vol: Volume 54,253 is below th...

low vol

$1.89 Last Close

Volume Volume 54,253 is below the 20-day average of 90,042 (relative volume 0.6x). low

Technical Shares at $1.94 are trading below the 200-day MA of $3.94 and well under the $13.75 52-week high.

Peers on Argus

DFSC fell 4.43% while sector peers in Aerospace & Defense show mixed action; onl...

1 Up

DFSC fell 4.43% while sector peers in Aerospace & Defense show mixed action; only MNTS appeared in momentum scans, up about 4.18%, underscoring a stock-specific reaction to the restatement news.

Historical Context

5 past events · Latest: Jan 23 (Positive)

Pattern 5 events

Date	Event	Sentiment	Move	Catalyst
Jan 23	Board/meeting update	Positive	+2.7%	Board expanded to seven directors and shareholder meeting date updated.
Dec 29	Earnings/outlook	Positive	-3.9%	FY2025 revenue grew 229% with improved margins and FY2026 outlook.
Dec 18	Financing closed	Negative	-28.2%	Closing of CAD$2.1M registered direct offering and issuance of warrants.
Dec 17	Financing announced	Negative	-17.4%	Announcement of CAD$2.1M registered direct offering and private placement.
Dec 05	Revenue growth update	Positive	-2.4%	Announced higher CAD$8.3M annualized billings and increased government roles.

Pattern Detected

Positive operational or growth news has often seen weak or negative price follow-through, while dilutive offerings have aligned with sharp declines.

Recent Company History

Over the last few months, DEFSEC has balanced growth updates with financing and governance changes. On Dec 5, 2025, it highlighted a step-up in government services billings and roles, yet the stock fell 2.36%. FY2025 results on Dec 29, 2025 showed revenue rising 229% to $4.9M, but shares dropped 3.85%. In mid-December, a CAD$2.1M registered direct offering triggered declines of 17.35% and 28.24%. A board expansion on Jan 23, 2026 saw a modest 2.67% gain. Today’s restatement fits a pattern of governance and reporting adjustments following earlier financings and growth disclosures.

Market Pulse Summary

This announcement restated interim financials to correct lease accounting for right-of-use assets, l...

Analysis

This announcement restated interim financials to correct lease accounting for right-of-use assets, lease liabilities, and related prepayments, while explicitly leaving revenues, expenses, cash flows, and net loss unchanged and increasing working capital by $0.2 million. It follows a period of financings and governance updates. Investors may focus on the company’s ability to maintain accurate IFRS reporting, monitor future filings for additional adjustments, and track whether operational growth trends highlighted in prior releases continue.

Key Terms

right-of-use assets, lease liabilities, management's discussion and analysis, working capital

4 terms

right-of-use assets financial

"errors identified related to the initial measurement of right-of-use assets and lease liabilities"

Right-of-use assets are the rights a company gains to use a physical space or equipment under a lease agreement. They are recorded as assets on the company's balance sheet, reflecting the value of future benefits from the leased item. For investors, these assets provide a clearer picture of a company's obligations and resources related to leasing arrangements, helping to assess its financial health and operational commitments.

lease liabilities financial

"initial measurement of right-of-use assets and lease liabilities associated with the Company's lease"

Lease liabilities are the recorded obligations a company has to make future payments for assets it uses under lease contracts, treated on the balance sheet much like a loan for rented equipment or property. Investors care because these liabilities increase a firm’s reported debt and affect measures of leverage, cash requirements and credit risk, so recognizing them gives a clearer picture of financial strength and the company’s ability to meet obligations.

management's discussion and analysis financial

"and related management's discussion and analysis of financial condition and results of operations"

Management's discussion and analysis (MD&A) is a section in a company’s regulatory filings where company leaders explain recent results, trends, risks, and the plans behind their numbers in plain language. It matters to investors because it offers management’s view of what drove performance and what could affect future results — like a coach explaining the game plan and potential challenges — helping investors judge whether the company’s story and strategy are credible.

working capital financial

"results in the Company's working capital as at June 30, 2025 increasing by $0.2 million"

Working capital is the money a business has available to cover its daily expenses, like paying bills and buying supplies. It’s like the cash in your wallet that helps you handle everyday costs; having enough ensures the business can operate smoothly without running into money shortages.

AI-generated analysis. Not financial advice.

Ottawa, Ontario--(Newsfile Corp. - January 30, 2026) - DEFSEC Technologies Inc. (TSXV: DFSC) (TSXV: DFSC.WT.U) (NASDAQ: DFSC) (NASDAQ: DFSCW) ("DEFSEC" or the "Company") announces that it has voluntarily filed restated unaudited condensed consolidated interim financial statements for the three and nine months ended June 30, 2025 and 2024 (the "Restated Interim Financial Statements") and related management's discussion and analysis of financial condition and results of operations for the three and nine months ended June 30, 2025 (the "Restated MD&A"). The Restated Interim Financial Statements have been amended as a result of errors identified related to the initial measurement of right-of-use assets and lease liabilities associated with the Company's lease entered into in June 2025, as well as the recording of lease-related prepayments associated with the same lease. Changes were limited to the interim statements of financial position and related notes, with no change being made to the interim statements of net loss and comprehensive loss, the interim statements of changes in shareholders' equity or the interim statements of cash flows reported in the Restated Interim Financial Statements.

"Reissuing our Q3 2025 financial results demonstrates our continued commitment to transparency, accuracy and corporate governance," said Jennifer Welsh, CFO and Chief Compliance Officer. "This adjustment is a one-time change with no impact on the Company's cash balance, revenues, expenses or cash flows and results in the Company's working capital as at June 30, 2025 increasing by $0.2 million."

A copy of the Restated Interim Financial Statements and Restated MD&A may be obtained under the Company's SEDAR+ profile at www.sedarplus.ca.

For further information, please contact:

Jennifer Welsh, Chief Financial Officer and Chief Compliance Officer
welsh@defsectec.com

Sean Homuth, President and Chief Executive Officer
homuth@defsectec.com

Jason Frame, Investor Relations
+1 (587) 225-2599
frame@defsectec.com

About DEFSEC

DEFSEC (TSXV: DFSC) (TSXV: DFSC.WT.U) (NASDAQ: DFSC) (NASDAQ: DFSCSW) (FSE: 62UA) develops and commercializes breakthrough next-generation tactical systems for military and security forces. The company's current portfolio of offerings includes digitization of tactical forces for real-time shared situational awareness and targeting information from any source (including drones) streamed directly to users' smart devices and weapons. Other DEFSEC products include countermeasures against threats such as electronic detection, lasers and drones. These systems can operate stand-alone or integrate seamlessly with OEM products and battlefield management systems, and all come integrated with TAK. The company also has a new proprietary non-lethal product line branded PARA SHOT^TM with applications across all segments of the non-lethal market, including law enforcement. The Company is headquartered in Ottawa, Canada, with a representative office in London, UK.

For more information, please visit https://www.defsectec.com

Forward-Looking Statements

This news release contains "forward-looking statements" and "forward-looking information" within the meaning of Canadian and United States securities laws (collectively, "forward-looking statements"), which may be identified by the use of terms and phrases such as "may", "would", "should", "could", "expect", "intend", "estimate", "anticipate", "plan", "foresee", "believe", or "continue", the negative of these terms and similar terminology, including references to assumptions, although not all forward-looking statements contain these terms and phrases.

Forward-looking statements are provided for the purpose of assisting the reader in understanding us, our business, operations, prospects and risks at a point in time in the context of historical and possible future developments and therefore the reader is cautioned that such information may not be appropriate for other purposes. Although DEFSEC's management believes that the assumptions underlying such forward-looking statements are reasonable, they may prove to be incorrect. The forward-looking statements discussed in this news release may not occur by certain specified dates or at all and could differ materially as a result of known and unknown risk factors and uncertainties affecting DEFSEC. Except as required by applicable securities laws, forward-looking statements speak only as of the date on which they are made and DEFSEC undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

Neither the TSX Venture Exchange nor its respective Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news release.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/282284

FAQ

What did DEFSEC (DFSC) announce about restated interim financial statements on January 30, 2026?

DEFSEC filed restated unaudited interim financial statements for the three and nine months ended June 30, 2025 and 2024. According to the company, the restatement corrects lease accounting measurement and related prepayments, was limited to the balance sheet and notes, and did not affect net loss or cash flows.

Why did DEFSEC (DFSC) restate its Q3 2025 interim financial statements?

The restatement corrects errors in initial measurement of right-of-use assets, lease liabilities and lease-related prepayments. According to the company, the adjustment relates to a lease entered in June 2025 and only affected interim statements of financial position and related notes.

Does the DEFSEC (DFSC) restatement change reported net loss, cash flows, or shareholders' equity?

No, the restatement did not change net loss, cash flows, or shareholders' equity reported in the interim statements. According to the company, the adjustment was one-time and limited to the interim statements of financial position and related notes.

How did the restatement affect DEFSEC's (DFSC) working capital as of June 30, 2025?

Working capital as at June 30, 2025 increased by $0.2 million after the restatement. According to the company, this reflects the corrected measurement and recording of lease-related items and had no impact on cash balances or operating results.

Where can investors find DEFSEC's (DFSC) restated interim financial statements and MD&A?

Investors can obtain the Restated Interim Financial Statements and Restated MD&A on SEDAR+. According to the company, the documents have been filed under its SEDAR+ profile and contact details for investor relations are provided for further inquiries.