First Breach (FBDT) Q2 2026 earnings summary

Executive summary

• Manufacturer of match-grade ammunition components and developer of unmanned aerial systems (UAS) through a joint venture; UAS activities remain pre-revenue and in development stage.

• Revenue for the six months ended June 30, 2026, increased 226% year-over-year to $361,357, but net loss widened to $28.5 million, driven by non-cash stock-based compensation and higher operating expenses.

• Company completed a Nasdaq listing in August 2026, converting significant convertible debt to equity and issuing advisory shares.

Financial highlights

• Net revenues: $361,357 for six months ended June 30, 2026, up from $110,905 year-over-year.

• Net loss: $28,523,232 for six months ended June 30, 2026, compared to $3,808,163 in the prior year period.

• Gross margin remained negative, with cost of revenues rising 34% year-over-year.

• Cash balance at June 30, 2026: $4,923,504; negative working capital of $8,234,772.

• Stock-based compensation expense for six months: $21,962,399.

Outlook and guidance

• Management expects continued operating losses and negative cash flow from operations for the foreseeable future.

• Substantial doubt exists about the company's ability to continue as a going concern over the next 12 months without additional capital.

• Strategic focus on expanding sales channels, developing new products, and pursuing additional capital raises.