Alternative Ballistics (ALBC) investor relations material

Company overview and business model

• Public-safety technology business transitioning to early commercialization; flagship The Alternative® attaches to a service firearm and deploys a less-lethal impact round while preserving access to lethal force.

• Revenue model targets equipment, training, certification and requalification, replenishment and replacement products, and support services.

• The Home Defense™ is production-ready with initial inventory; launch plans target firearm ranges, concealed-carry trainers and select retailers, followed by e-commerce.

• As of June 2026, 28 distribution partners covered 48 countries; samples had shipped to 21 countries and demonstrations spanned multiple regions.

Financial performance and metrics

• H1 2026 revenue was $300 vs. $4,600 H1 2025; net loss was $3.43M vs. $39.27M, with a $1.68M non-cash embedded-derivative loss in H1 2026.

• FY2025 revenue was $7,550 vs. $7,000 FY2024; net losses were $41.10M and $15.32M, respectively, including $38.4M stock-based compensation expense in FY2025.

• At June 30, 2026, cash was $37,710, total liabilities $6.90M, total assets $182,172 and shareholders’ deficit $6.72M; accumulated deficit was $103.06M.

• Operating cash use was $653,406 in H1 2026; management estimated $6.5M short-term cash needs for one year and $12.0M long-term needs for five years, expecting equity investment to fund them.

• Auditors cited substantial doubt about continuing as a going concern; operations depend on revenue growth and additional capital, with possible scaling back or discontinuation if funding is unavailable.

Use of proceeds and capital allocation

• No proceeds from selling the registered resale shares will go to the business; cash proceeds may arise if warrants are exercised, but exercise timing and occurrence are uncertain.

• Registration expenses are borne by the business; selling holders bear their selling commissions, transfer taxes and other sale-related costs.

• A separate March 2026 financing agreement specified proceeds for business development and general working capital, excluding specified debt repayments, insider advances and unrelated investments.