First Breach (FBDT) Registration filing summary

Company overview and business model

• Vertically integrated manufacturer of ammunition and components, serving commercial, law enforcement, and military markets, with in-house production and quality control from raw materials to finished products.

• Operates a state-of-the-art facility in Maryland, with on-site lead smelting and brass manufacturing, and maintains a diversified global supply chain.

• Entered a 50/50 joint venture with ideaForge to produce advanced drones for defense and commercial use, with initial production targeted for early 2026.

• Focuses on expanding market share through product quality, vertical integration, and strategic partnerships, with over 140 sales channels.

• Plans to enhance direct-to-consumer channels and brand visibility through targeted marketing and industry events.

Financial performance and metrics

• FY 2025 revenue was $384,129, down 50% from 2024, with a net loss of $13.8M; Q1 2026 revenue rose to $266,004, but net loss widened to $14.6M due to high non-cash stock compensation and SG&A expenses.

• Gross margin remained negative, impacted by under-absorption of overhead and high fixed costs.

• As of March 31, 2026, cash was $1.4M, with negative working capital of $1.7M and total assets of $11.6M.

• Accumulated deficit reached $49.9M as of March 31, 2026; recurring losses and negative cash flow raise substantial doubt about going concern.

• Projected FY 2026 revenue is $112.9M, with $35.6M from ammunition and $77.2M from drones, based on management estimates.

Use of proceeds and capital allocation

• Company will not receive proceeds from the resale of shares by registered stockholders in the direct listing.

• Recent financings include $10.15M from April 2026 Senior Notes and $5M from May 2026 Notes, both primarily for working capital and general corporate purposes.

• Committed up to $25M in capital contributions to the drone joint venture, with $10M due by December 31, 2026, and the remainder by December 31, 2027.

• Entered a $50M equity line of credit to support future capital needs.