DEFSEC provides corporate update, reports preliminary fiscal 2026 year-end cash of approximately $7.7 million

Cash position: preliminary unaudited cash and cash equivalents of approximately $7.7 million with $0 debt as of September 30, 2026, compared with $3.5 million cash and $0 debt as of June 30, 2026.

Capital raise: increase in cash reflects net proceeds from the August 2026 equity offering net of operating activities during the fourth quarter of fiscal 2026.

Share structure: 4,593,998 common shares outstanding and 24,575 pre-funded warrants remaining to be converted as of the filing date.

Product development: pre-production Battlespace Laser Identification Sensor System (BLISS) units were demonstrated at Dugway Proving Ground, Utah in August 2026 to the U.S. Army, covering laser-detection performance at distance and across a broad spectrum.

Business strategy: Company is allocating additional commercial resources to grow ARWEN sales within its existing law enforcement and corrections customer base, including hiring senior resources in business development and marketing, and pursuing cross-sell of PARA SHOT and DEFSEC Lightning 2.0.

Product commercialization: ARWEN 40mm baton ammunition is in full-rate production for use with third-party 40mm launchers, extending the addressable market to agencies that do not currently operate ARWEN launchers.

Conference participation: Company attended the AUSA Annual Meeting & Exposition in Washington, DC earlier in October 2026 and is exhibiting at Best Defence in London, Ontario and Real Time Crime Centre Ops & Tech West in Edmonton, Alberta during the same week; upcoming events include Police Tech Conference and Expo in Toronto, Ontario (December 2026), Army Day on the Hill (December 2026), and SHOT Show in Las Vegas, Nevada (January 2027).