The company's financial position appears vulnerable, evidenced by a retained earnings deficit of -$56.5M and a reliance on $2.2M in goodwill, which represents a substantial portion of its $9.8M total assets.
| Total Current Assets | 6.06M | 8.95M | 1.84M | 6.84M | 1.52M | 4.06M |
| Cash & Short-Term Investments | 3.01M | 6.69M | 256.83K | 5.41M | 170.54K | 2.69M |
| Cash Only | 2.96M | 6.69M | 256.83K | 5.41M | 170.54K | 2.69M |
| Short-Term Investments | 47.62K | 0 | 0 | 0 | 0 | 0 |
| Accounts Receivable | 2.02M | 1.49M | 567.88K | 300.27K | 171.88K | 699.25K |
| Days Sales Outstanding | 93.81 | 110.34 | 137.79 | 88.78 | 86.95 | 200.05 |
| Inventory | 515.74K | 519.61K | 533.16K | 542.39K | 393.54K | 90.3K |
| Days Inventory Outstanding | 50.24 | 59.18 | 191.2 | 138.85 | 267.62 | 41.26 |
| Other Current Assets | 519.93K | 245.84K | 484.49K | 592.41K | 780.43K | 30K |
| Total Non-Current Assets | 3.77M | 3.98M | 3.77M | 4.92M | 5.81M | 4.66M |
| Property, Plant & Equipment | 1.36M | 1.44M | 541.84K | 778.33K | 1.04M | 1.17M |
| Fixed Asset Turnover | 3.16x | 3.42x | 2.78x | 1.59x | 0.69x | 1.09x |
| Goodwill | 0 | 0 | 0 | 0 | 0 | 0 |
| Intangible Assets | 2.21M | 2.39M | 3.17M | 4.11M | 4.74M | 3.47M |
| Long-Term Investments | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Non-Current Assets | 204.8K | 141.11K | 58.13K | 26.08K | 23.6K | 21.37K |
| Total Assets | 9.83M | 12.92M | 5.62M | 11.76M | 7.32M | 8.72M |
| Asset Turnover | 0.51x | 0.38x | 0.27x | 0.10x | 0.10x | 0.15x |
| Asset Growth % | 223.25% | 130.04% | -52.23% | 60.56% | -15.99% | - |
| Total Current Liabilities | 2.53M | 2.92M | 2.98M | 6.38M | 6.93M | 1.16M |
| Accounts Payable | 2.07M | 409.7K | 881.84K | 367.13K | 2.29M | 620.04K |
| Days Payables Outstanding | 96.67 | 46.66 | 316.23 | 93.98 | 1.56K | 283.29 |
| Short-Term Debt | 17.16K | 0 | 0 | 0 | 2.2M | 0 |
| Deferred Revenue (Current) | 123.63K | 7.67K | 120.57K | 120.97K | 47.27K | 0 |
| Other Current Liabilities | 404.03K | 210.97K | 847.29K | 4.34M | 0 | 0 |
| Current Ratio | 2.40x | 3.07x | 0.62x | 1.07x | 0.22x | 3.50x |
| Quick Ratio | 2.19x | 2.89x | 0.44x | 0.99x | 0.16x | 3.42x |
| Cash Conversion Cycle | 47.39 | 122.86 | 12.75 | 133.65 | -1.2K | -41.98 |
| Total Non-Current Liabilities | 2.17M | 2.2M | 1.27M | 1.44M | 1.4M | 1.43M |
| Long-Term Debt | 0 | 0 | 0 | 0 | 78.8K | 53.25K |
| Capital Lease Obligations | 5.87M | 1.11M | 155.15K | 302.41K | 206.47K | 275.62K |
| Deferred Tax Liabilities | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Non-Current Liabilities | 924.05K | 1.09M | 1.12M | 1.14M | 1.12M | 1.11M |
| Total Liabilities | 4.7M | 5.12M | 4.25M | 7.82M | 8.33M | 2.59M |
| Total Debt | 1.26M | 1.3M | 302.22K | 429.52K | 2.55M | 361.16K |
| Net Debt | -1.7M | -5.38M | 45.4K | -4.98M | 2.38M | -2.33M |
| Debt / Equity | 0.25x | 0.17x | 0.22x | 0.11x | - | 0.06x |
| Debt / EBITDA | -0.18x | - | - | - | - | - |
| Net Debt / EBITDA | 0.24x | - | - | - | - | - |
| Interest Coverage | -31.52x | -36.79x | -28.51x | -11.86x | -19.64x | -79.23x |
| Total Equity | 5.14M | 7.8M | 1.37M | 3.94M | -1M | 6.12M |
| Equity Growth % | 536.58% | 470.18% | -65.23% | 492.43% | -116.38% | - |
| Book Value per Share | 2.58 | 12.79 | 34.74 | 202.46 | -288.44 | 2033.11 |
| Total Shareholders' Equity | 5.14M | 7.8M | 1.37M | 3.94M | -1M | 6.12M |
| Common Stock | 47.98M | 47M | 37.82M | 33.38M | 19.5M | 17.22M |
| Retained Earnings | -56.53M | -52.28M | -42.65M | -35.22M | -25.91M | -15.39M |
| Treasury Stock | 0 | 0 | 0 | 0 | 0 | 0 |
| Accumulated OCI | 8.28M | -85.08K | -38.52K | -39.66K | -101.42K | -8.99K |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 |
Capital structure dilution risk
According to recent quarterly filings, DFSC's total assets have fluctuated between $5.6M and $12.9M, yet the persistent accumulation of retained earnings losses, which reached -$56.5M in 2026Q2, suggests a structural inability to retain value despite the company's aggressive top-line expansion efforts in the defense sector.
The trajectory of the balance sheet reflects a company in a perpetual state of capital consumption rather than value creation. Investors should monitor the widening gap between asset growth and the deepening deficit in retained earnings, which indicates that current revenue scaling is not yet translating into a self-sustaining financial foundation.
As reported in financial statements, DFSC's cash position dropped to $3.0M in 2026Q2 from a peak of $6.7M in 2025Q4, signaling that the company's liquidity buffer is rapidly depleting as it funds ongoing operational losses and project-based working capital requirements in a high-burn environment.
The current ratio of 2.40 in 2026Q2 may appear superficially healthy, but it masks the underlying volatility of a business model that relies on lumpy defense contracts. The rapid decline in cash reserves suggests that the company may face significant liquidity constraints if it cannot secure additional funding or reach a break-even inflection point in the near term.
Based on the company's reported figures, equity has remained highly unstable, oscillating between $0.7M and $7.8M over the last ten quarters, primarily driven by the compounding impact of massive retained earnings deficits that continue to erode the book value available to common shareholders.
The volatility in equity suggests that the company is likely reliant on periodic capital raises to offset its operational burn, which poses a persistent risk of dilution for existing investors. The lack of a stable equity base warrants further investigation into management's long-term strategy for achieving a sustainable capital structure.
Analysis of the balance sheet reveals that goodwill remains a significant component of total assets, valued at $2.2M in 2026Q2, which appears disproportionately high relative to the company's net tangible assets and its ongoing inability to generate positive net income from its core operations.
The presence of substantial goodwill on the balance sheet may indicate a risk of future impairment charges if the anticipated synergies from past acquisitions or tactical digitization initiatives fail to materialize. Investors should be cautious, as these intangible assets may not provide the necessary support for the company's valuation in a downside scenario.
Quick answers to the most common questions about buying DFSC stock.
As of 2025, DEFSEC Technologies Inc. (DFSC) had total assets of $12.9M including $8.9M in current assets.
DEFSEC Technologies Inc. (DFSC) carries total debt of $1.3M, offset by $6.7M in cash and short-term investments. Comparing total debt to cash helps evaluate the company's debt burden and net leverage.
DEFSEC Technologies Inc. (DFSC) has total shareholders' equity (book value) of $7.8M ($12.79 book value per share). Book value represents the net worth of the company belonging to common stock holders.
DEFSEC Technologies Inc. (DFSC) reported a current ratio of 3.07x. A current ratio above 1.0x indicates that the company has more current assets than current liabilities, suggesting sufficient short-term liquidity.