Defense Technologies (DTII) Q1 2026 Earnings Report

DTII’s QQ1 2026 results depict a high-risk liquidity and profitability profile with an ongoing loss trajectory and a fragile balance sheet. Reported figures show an inability to generate revenue in the period (revenue data is not disclosed), with operating losses of $187,230 and net income of $-222,164, translating to an EPS of $-0.0065. The quarter delivered modest QoQ improvement in operating income (QoQ +40.90%) and a slight uplift in earnings per share (QoQ +23.53%), but year-over-year metrics remain deeply negative (Net Income YoY -69.59%; EPS YoY +51.85% due to share count dynamics).

Liquidity and capital structure remain the dominant concern. Cash at period-end stood at $2,422 against current liabilities of $2,309,579 and short-term debt of $726,679, yielding a negative working capital posture and a net debt position of $724,257. Equity remains in the red at $(2.30) million, signaling financial distress and dependence on external financing. Financing activities provided a modest inflow of $50,376, including $16,287 of common stock issued, underscoring the need for ongoing capital raises to fund operations.

Strategically, DTII operates in a niche segment (passive security scanning) with potential growth in security deployments for schools and public venues. However, without visible revenue traction or clear guidance, the near-term investment case hinges on successful contract wins, scale-up of deployed units, and meaningful cost controls to restore profitability and liquidity.