EPS of $-0.01 increased by 96.5% from previous year
Net income of -131.00K
"N/A" - N/A
Defense Technologies International Corp (DTII) QQ4 2024 Earnings Analysis: Severe liquidity stress and flat top-line visibility in the Industrials Security Technologies space
Executive Summary
Defense Technologies International Corp (DTII) reported a challenging QQ4 2024, characterized by negative earnings and a precarious liquidity position, with no disclosed revenue for the quarter. The reported quarterly P&L shows G&A and selling/SG&A expenses of 180,935 USD each, other expenses of 432,053 USD, interest of 10,453 USD, and depreciation of 2,169 USD, culminating in an operating loss of 181,000 USD and a net loss of 131,000 USD (EPS -0.0135). Cash flow from operations was negative (-11,165 USD) and free cash flow matched this cash burn (-11,165 USD), while the company ended the period with only 171 USD in cash. The balance sheet reveals highly leveraged and illiquid conditions: total liabilities of 2.37 million USD against total assets of 7,770 USD, and negative stockholders’ equity of -2.05 million USD, with retained earnings deeply negative at -17.12 million USD. The liquidity metrics are extreme, with a current ratio of 0.0033 and a cash ratio near zero, signaling a fragile near-term liquidity runway absent external financing.
Key year-over-year (YoY) and quarterly (QoQ) deltas provided in the dataset show some deterioration in cash flow metrics versus the prior quarter, but a nuanced picture on profitability: operating income improved on a YoY basis by 27.31% yet remained negative, while net income improved by 64.69% YoY but still registered a loss. EPS rose YoY by 96.45% but declined QoQ by 35.00%. Taken together, the QQ4 2024 print suggests a business in transition with no revenue visibility disclosed for the quarter and a substantial burn that requires either a material revenue inflection or meaningful balance-sheet remediation to restore investor confidence.
Net cash provided by operating activities: -11,165 USD; Free cash flow: -11,165 USD.
Financial Highlights
Revenue: Not disclosed for QQ4 2024 in the provided data; no quarterly revenue figure is available. YoY/QoQ revenue deltas not computable due to missing top-line data.
Cash flow and liquidity:
- Net cash provided by operating activities: -11,165 USD; Free cash flow: -11,165 USD.
- Cash and cash equivalents: 171 USD at period end; cash burn persists.
Balance sheet:
- Total assets: 7,770 USD; Total liabilities: 2,370,132 USD; Total stockholders’ equity: -2,047,316 USD.
- Cash position is extremely modest, with a heavy reliance on financing or working-capital sources to sustain operations.
- Short-term debt: 449,147 USD; Accounts payable: 386,003 USD; Deferred revenue: 40,375 USD; Other current liabilities: 1,494,607 USD.
Efficiency and valuation:
- Gross profit and gross margin data are not disclosed; Asset turnover and several liquidity/solvency ratios imply severe leverage and limited operating scale.
- Price/Book and related valuation metrics show extreme negative equity and a deeply distressed balance sheet context (negative total stockholders’ equity).
Income Statement
Metric
Value
YoY Change
QoQ Change
Operating Income
-181.00K
27.31%
-28.12%
Net Income
-131.00K
64.69%
-7.73%
EPS
-0.01
96.45%
-35.00%
Key Financial Ratios
currentRatio
0
returnOnAssets
-1691%
returnOnEquity
6.42%
debtEquityRatio
-0.22
operatingCashFlowPerShare
$-0
freeCashFlowPerShare
$-0
priceToBookRatio
-0.22
priceEarningsRatio
-0.86
Net Income vs. Revenue
Expense Breakdown
Management Commentary
No earnings call transcript data has been provided in the supplied materials. As a result, there are no management quotes or thematic highlights to quote or categorize by strategy, operations, or market conditions. If a transcript becomes available, this section should be populated with management comments highlighting strategic priorities, cost-control measures, product-market traction, and near-term catalysts.
N/A
— N/A
N/A
— N/A
Forward Guidance
No explicit forward guidance was disclosed in the provided data for QQ4 2024. Given the on-record financials, investors should assess whether DTII has access to external financing or a credible plan to monetize its passive security scanning technology to achieve revenue growth and margin stabilization. In the absence of revenue visibility, the following scenarios are plausible:
- Baseline scenario: No material revenue progression in the near term; continued cost discipline required to reduce cash burn; liquidity remains contingent on external funding or financing agreements.
- Bullish scenario: If management secures new customer contracts or licensing arrangements for passive scanning units (walkthrough or handheld), with a plan to monetize IP and reduce fixed costs, the company could begin to stabilize cash flow and gradually move toward positive EBITDA. Achieving this would likely require meaningful revenue traction and working-capital optimization.
- Bear scenario: Persistent negative cash flow, inability to secure financing, and failure to realize material revenue could exacerbate liquidity risk and potentially lead to more aggressive capital structure actions or impairment adjustments.
Key monitoring points for investors include: quarterly revenue disclosure (as the top-line is currently missing), operating cash flow trajectory, changes in working capital (accounts payable/receivable, deferred revenue), any debt financings or covenant relief, and updates on product deployment or pipeline in the passive security scanning domain.
Competitive Position
Company
Gross Margin
Operating Margin
Return on Equity
P/E Ratio
DTII Focus
0.00%
0.00%
6.42%
-86.10%
BCO
26.00%
13.20%
-1.26%
-195.69%
MSA
48.50%
24.50%
7.90%
21.73%
REZI
26.90%
9.56%
2.98%
8.38%
ALLE
42.90%
17.80%
9.00%
23.45%
Gross Profit Margin
Operating Profit Margin
Return on Equity
P/E Ratio Comparison
Investment Outlook
DTII presents a high-risk, high-uncertainty investment scenario. The QQ4 2024 results show a negative earnings trajectory with pronounced liquidity stress, and the absence of disclosed revenue makes it difficult to gauge near-term recovery potential. The investment thesis hinges on a credible plan to monetize the company’s passive scanning technology, secure meaningful financing or debt restructuring, and evidence of top-line growth. Until transparency around revenue generation and a viable path to positive operating cash flow is established, the stock should be considered a speculative, high-risk holding within the Industrials/DefenseTech space. Key catalysts to watch include any disclosed contracts, licensing deals, or capital-structure relief that materially improve liquidity and allow for revenue expansion.
Key Investment Factors
Growth Potential
Growth in demand for passive security scanning tech in public venues (schools, government buildings, mass gatherings) could unlock a path to revenue if DTII can demonstrate scalable deployments and favorable unit economics. Potential licensing of core IP or partnerships with security integrators could accelerate adoption and diversify revenue streams.
Profitability Risk
Severe liquidity risk and negative equity raise concerns about ongoing operations. Absence of disclosed revenue for QQ4 2024 obscures top-line visibility. Dependence on external financing, variable working capital needs, and regulatory/compliance costs in the security tech sector heighten risk. Very limited cash reserves imply high financing risk and possible delisting considerations if liquidity worsens.
Financial Position
Balance sheet shows total assets of 7,770 USD versus liabilities of 2,370,132 USD and negative equity of -2,047,316 USD. Cash position is negligible (171 USD) with short-term debt of 449,147 USD. The company carries substantial non-cash charges (other expenses 432,053 USD) and an operating loss, underscoring a need for precise capital structure remediation and potential asset-light monetization strategies.
SWOT Analysis
Strengths
Niche passive security scanning technology with potential applications in schools and public venues.
Small, potentially agile organization with a focused product line in security filtering/detection.
Weaknesses
Severely distressed balance sheet (negative equity of -2.05M USD; total assets 7,770 USD).
Extreme liquidity constraints (current ratio 0.0033; cash ratio ~0).
Top-line visibility is not disclosed for QQ4 2024; no reported revenue in the quarter.
High reliance on external financing; substantial “other current liabilities” and an opaque funding plan.
Opportunities
Rising demand for innovative security screening solutions in education and public spaces.
Potential licensing deals or partnerships to monetize IP without large incremental capital outlays.
Threats
Continued cash burn and risk of default without improvised financing.
Competitive landscape with better-capitalized peers could erode any potential early market share gains.
Regulatory, compliance, and technology substitution risks in the security screening market.
Defense Technologies International Corp (DTII) QQ1 2025 Results Analysis – Severe Liquidity Constraints, Material Losses, and Limited Revenue Visibi...