First Breach, Inc. (FBDT) filed a prospectus supplement that incorporates its Form 10‑Q for the quarter ended June 30, 2026 into its existing Form S‑1 prospectus. The company manufactures match‑grade ammunition components and is developing unmanned aerial systems through a joint venture.
For the six months ended June 30, 2026, net revenues were $361,357 versus $110,905 a year earlier, while the company recorded a substantially larger net loss of $28.5 million versus $3.8 million, driven largely by $22.0 million of stock‑based compensation and higher operating expenses. Cash increased to $4.9 million from $2.5 million, mainly from $10.2 million of new senior secured convertible notes and $1.3 million of equity offerings.
Total assets were $17.6 million and stockholders’ equity was $1.4 million, with $16.2 million in total liabilities including $9.3 million of current convertible notes and a $2.5 million warrant liability. Management states that recurring losses, limited revenues, and negative operating cash flows raise substantial doubt about the company’s ability to continue as a going concern over the next 12 months.
First Breach, Inc. (FBDT) reported very small revenues and large losses for the six months ended June 30, 2026. Net revenues were $361,357, while cost of revenues and operating expenses drove a net loss of $28.5 million, compared with a $3.8 million loss a year earlier. Results were heavily impacted by $22.0 million of stock-based compensation and higher selling, general and administrative costs.
At June 30, 2026, First Breach held $4.9 million in cash and $17.6 million in total assets, against $16.2 million in total liabilities, including $9.3 million of current convertible notes and a $2.5 million warrant liability. Stockholders’ equity dropped to $1.37 million from $6.40 million at year-end 2025, and the accumulated deficit reached $63.8 million. Management states that recurring losses, minimal revenues and negative operating cash flows raise substantial doubt about the company’s ability to continue as a going concern.
The core business remains match-grade ammunition components, but the company is also investing in unmanned aerial systems through a 50/50 joint venture with ideaForge Technology and a Master Services Agreement of about $3.0 million with Hellbender for drone platform development. Prepaid drone development of $1.0 million and significant capitalized equipment spending indicate an early investment phase with no UAS revenues yet.
First Breach, Inc. (FBDT) announced completion of the first flight of its proprietary drone prototype and provided an update on its strategic agreement with Hellbender, Inc. to support development and domestic manufacturing of its drone platforms. Management frames this as an expansion of the business beyond ammunition into American-made unmanned aerial systems.
The company expects to complete initial drone prototypes in Q4 2026 and to begin scaling production in the second quarter of 2027, targeting a production capacity of more than 2,500 drones per week as manufacturing operations expand. First Breach owns the drone platforms and associated intellectual property and plans to control manufacturing and commercialization, while Hellbender provides engineering, design, technical support, and component manufacturing.
The collaboration currently covers two Class 1 attritable drone platforms, one compact close-quarters system and one longer-range system, built around common components to support scalable, repeatable production. First Breach operates about 80,000 square feet of ammunition manufacturing space in Hagerstown, Maryland, with over 200,000 additional square feet designed to support drone production, robotic assembly, automated logistics, and expanded ammunition output.
First Breach Inc. (FBDT) is registering the resale of up to 70,728,866 shares of common stock in connection with a direct listing on the Nasdaq Capital Market. This includes 45,034,282 existing shares (about 99.88% of shares outstanding as of August 7, 2026), 10,000,000 shares from RSUs, 14,733,046 from options, and 961,538 from May 2026 Notes convertible at $8.00 per share. The company states it will not receive proceeds from any resale by registered stockholders.
First Breach manufactures ammunition and components for commercial, law-enforcement and military markets, and is expanding into defense drone platforms via a joint venture with ideaForge and a services agreement with Hellbender, Inc. Financially, it is early-stage with modest net revenues of $266,004 for the quarter ended March 31, 2026 and a net loss of $14,646,955, following a 2025 net loss of $13,822,121. Cash was $1,414,608 and working capital was negative as of March 31, 2026, and management discloses substantial doubt about its ability to continue as a going concern.
The listing depends on Nasdaq approval; without approval, the direct listing will not be completed. First Breach qualifies as an emerging growth company and a smaller reporting company, allowing reduced disclosure and delayed adoption of new accounting standards.