The balance sheet reflects significant value destruction, evidenced by retained earnings of -$56.5M and a reliance on $2.2M in goodwill, which constitutes a material portion of the $9.8M total asset base.
| Cash & Short Term Investments | 17.27M | 6.69M | 256.83K | 5.41M | 170.54K | 2.69M |
| Cash & Due from Banks | 2.96M | 6.69M | 256.83K | 5.41M | 170.54K | 2.69M |
| Short Term Investments | 47.62K | 0 | 0 | 0 | 0 | 0 |
| Total Investments | 47.62K | 0 | 0 | 0 | 0 | 0 |
| Investments Growth % | 0% | - | - | - | - | - |
| Long-Term Investments | 0 | 0 | 0 | 0 | 0 | 0 |
| Accounts Receivables | 2.02M | 1.35M | 455.05K | 68.53K | 114.88K | 390.52K |
| Goodwill & Intangibles | 2.21M | 2.39M | 3.17M | 4.11M | 4.74M | 3.47M |
| Goodwill | 0 | 0 | 0 | 0 | 0 | 0 |
| Intangible Assets | 2.21M | 2.39M | 3.17M | 4.11M | 4.74M | 3.47M |
| PP&E (Net) | 1.36M | 1.44M | 541.84K | 778.33K | 1.04M | 1.17M |
| Other Assets | 204.8K | 141.11K | 58.13K | 26.08K | 23.6K | 21.37K |
| Total Current Assets | 6.06M | 8.95M | 1.84M | 6.84M | 1.52M | 4.06M |
| Total Non-Current Assets | 3.77M | 3.98M | 3.77M | 4.92M | 5.81M | 4.66M |
| Total Assets | 9.83M | 12.92M | 5.62M | 11.76M | 7.32M | 8.72M |
| Asset Growth % | 223.25% | 130.04% | -52.23% | 60.56% | -15.99% | - |
| Return on Assets (ROA) | -74.67% | -103.86% | -85.61% | -97.54% | -131.16% | -106.85% |
| Accounts Payable | 2.07M | 409.7K | 881.84K | 367.13K | 2.29M | 620.04K |
| 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 |
| Long-Term Debt | 0 | 0 | 0 | 0 | 78.8K | 53.25K |
| Short-Term Debt | 17.16K | 0 | 0 | 0 | 2.2M | 0 |
| Other Liabilities | 924.05K | 1.09M | 1.12M | 1.14M | 1.12M | 1.11M |
| Total Current Liabilities | 2.53M | 2.92M | 2.98M | 6.38M | 6.93M | 1.16M |
| Total Non-Current Liabilities | 2.17M | 2.2M | 1.27M | 1.44M | 1.4M | 1.43M |
| Total Liabilities | 4.7M | 5.12M | 4.25M | 7.82M | 8.33M | 2.59M |
| 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% | - |
| Equity / Assets (Capital Ratio) | 52.25% | 60.38% | 24.36% | 33.47% | -13.69% | 70.24% |
| Return on Equity (ROE) | -133.19% | -209.96% | -280.46% | -634.66% | -410.88% | -152.12% |
| Book Value per Share | 2.58 | 12.79 | 34.74 | 202.46 | -288.44 | 2033.11 |
| Tangible BV per Share | 1.47 | 8.87 | -45.87 | -9.09 | -1652.50 | 880.75 |
| Common Stock | 47.98M | 47M | 37.82M | 33.38M | 19.5M | 17.22M |
| Additional Paid-in Capital | 5.41M | 5.4M | 5.15M | 4.77M | 3.55M | 2.46M |
| Retained Earnings | -56.53M | -52.28M | -42.65M | -35.22M | -25.91M | -15.39M |
| Accumulated OCI | 8.28M | -85.08K | -38.52K | -39.66K | -101.42K | -8.99K |
| Treasury Stock | 0 | 0 | 0 | 0 | 0 | 0 |
| Preferred Stock | 0 | 0 | 0 | 0 | 0 | 0 |
Liquidity and dilution risk
As reported in financial statements, DEFSEC's total assets fluctuated from $6.5M in 2024Q2 to a peak of $12.9M in 2025Q4 before settling at $9.8M in 2026Q2, reflecting a business model that remains highly sensitive to the timing of capital raises and project-based asset accumulation.
The trajectory of the balance sheet suggests a firm in a constant state of transition, where asset growth is frequently offset by the rapid consumption of cash to fund operations. Investors should monitor whether the recent contraction in total assets indicates a strategic shift toward leaner operations or merely the exhaustion of previous capital injections.
Based on the most recent quarterly data, DEFSEC's cash position has declined to $3.0M in 2026Q2 from a peak of $6.7M in 2025Q4, which, when viewed alongside the current ratio of 2.40, suggests a narrowing window for achieving self-sustaining operational cash flow.
The volatility in the current ratio, which dropped from 4.25 in 2026Q1 to 2.40 in 2026Q2, highlights the company's reliance on external financing to maintain its working capital requirements. This liquidity profile appears insufficient to support prolonged R&D cycles without further dilutive events or significant contract wins.
According to the provided balance sheet data, retained earnings have deteriorated significantly to -$56.5M as of 2026Q2, illustrating the substantial value destruction inherent in the company's current high-burn, R&D-intensive growth strategy within the defense technology sector.
The consistent decline in retained earnings underscores the difficulty the firm faces in reaching profitability, as operating losses continue to erode the equity base. This trend suggests that shareholders may face ongoing dilution risks as the company seeks to replenish its capital base to offset these structural deficits.
As indicated by the historical filings, goodwill remains a material component of the asset base at $2.2M in 2026Q2, representing a significant portion of total assets and signaling potential impairment risk if the underlying business units fail to meet aggressive growth expectations.
The reliance on goodwill and intangible assets suggests that the company's value is tied more to future growth potential and acquired IP than to tangible productive capacity. Analysts should scrutinize the carrying value of these assets, as any failure to convert pilot programs into long-term contracts could necessitate significant write-downs.
Quick answers to the most common questions about buying DFSCW stock.
As of 2025, DEFSEC Technologies Inc. Warrant (DFSCW) had total assets of $12.9M including $8.9M in current assets.
DEFSEC Technologies Inc. Warrant (DFSCW) carries total debt of $1.3M. Comparing total debt to cash helps evaluate the company's debt burden and net leverage.
DEFSEC Technologies Inc. Warrant (DFSCW) 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. Warrant (DFSCW) 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.