First Breach (FBDT) Registration filing summary

Company overview and business model

• Integrated manufacturer of high-quality ammunition and components for commercial, law enforcement, and military markets, with vertically integrated operations including in-house lead smelting and brass manufacturing.

• Operates a 71,500 sq. ft. facility in Hagerstown, MD, with the ability to expand to 206,000 sq. ft.

• Distributes primarily through distributors but also sells directly to consumers and small businesses, maintaining over 140 sales channels.

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

• Focuses on continuous process improvement, product line expansion, and strategic acquisitions to enhance market position.

Financial performance and metrics

• For the year ended December 31, 2025: net revenues of $384,129, cost of revenues $1,761,368, and a net loss of $13,822,121.

• Gross margin was negative ($2,062,199), with operating expenses of $7,926,714, primarily due to non-cash stock-based compensation and increased professional fees.

• Cash at year-end 2025 was $2,477,122, with negative working capital of $1,137,709.

• Financing activities provided $5,536,203 in 2025, including proceeds from convertible notes and equity offerings.

• Accumulated deficit as of December 31, 2025 was $35,243,122.

• Auditors and management have raised substantial doubt about the company's ability to continue as a going concern due to recurring losses and negative cash flows.

Use of proceeds and capital allocation

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

• Net proceeds from recent note financing are intended for general corporate purposes and working capital.

• Plans to raise up to $10 million in convertible preferred equity prior to listing to support liquidity and operations.

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