Recent developments highlight product testing successes, marketing expansion, cooperative agreements with government agencies, and sales to school districts and distributors.

• DTII announced new features and increased opportunities for the Passive Portal in 2025 [N1].
• The company provided a 2024 shareholder update including repeat orders [N2].
• DTII launched a national marketing campaign expanding sales across the USA and internationally [N3].
• Entered a Cooperative Research and Development Agreement (CRADA) with the Department of Homeland Security in 2024 [N4].
• Invited by the U.S. Department of Homeland Security's Science and Technology Directorate to their test program in 2024 [N5].
• Engaged an investor relations group and provided shareholder updates in 2024 [N6].
• Reported an enormous success of Passive Security Scan at the Georgia School Board Association Annual Conference in 2023 [N7].
• Conducted Passive Security Scan at the Georgia School Board Association Annual Conference in 2023 [N8].

DTII has developed a unique, patented passive scanning technology that addresses safety concerns associated with active scanning methods. The company has demonstrated successful lab and field testing, including government-sponsored evaluations, and has begun initial sales and deployments in school districts and public venues. Expansion of marketing campaigns and reseller networks across the USA and internationally indicate efforts to scale distribution. The company's exclusive licensing agreements and patent portfolio provide a foundation for market differentiation. Engagements with government agencies and positive test results may support broader adoption in security-sensitive markets [S1][N1][N3][N4][N5].

DTII has reported no revenue for fiscal year 2025 and operates with a significant working capital deficit and net losses, indicating financial challenges. The company relies heavily on financing from securities issuance, stockholder loans, and related parties to fund operations and production, which may not be sustainable long term. The market for security scanning technology is competitive, and adoption depends on successful commercialization and scaling of production and sales. The company's limited employee base and reliance on consultants and service agreements may constrain operational capacity. Risks include potential difficulties in obtaining financing, market acceptance, and competition from established active scanning technologies [S1][S2].

DTII's competitive advantage lies in its patented Passive Portal™ technology, which uses passive sensing based on earth magnetic technology and emits zero radiation, distinguishing it from competitors' active scanning technologies that use potentially harmful radiation. This unique safety profile positions DTII's products as particularly suitable for sensitive environments such as schools and public venues, where safety and non-invasiveness are critical. The exclusive worldwide license held by its subsidiary PSSI and the patent protection provide barriers to entry. Additionally, cooperative agreements with government agencies like the Department of Homeland Security and endorsements from public safety organizations support the company's market positioning [S1][N4][N5].

• Financial Sustainability: The company has no reported revenue for fiscal year 2025 and operates with a significant working capital deficit and net losses, relying on external financing and related party loans to fund operations, which may pose liquidity risks.
• Market Adoption: Successful commercialization depends on acceptance of the Passive Portal technology in competitive security markets, which include established active scanning solutions.
• Operational Capacity: DTII has a small team of consultants and relies on service agreements for management, which may limit operational scalability and execution.
• Regulatory and Testing Risks: Although the Passive Portal has undergone testing including with DHS, ongoing regulatory approvals and field validations are necessary for broader deployment.

• Defense Technologies International Corp. (DTII) was incorporated in Delaware on May 27, 1998, and changed its name from Canyon Gold Corp. in 2016 to reflect expansion into advanced technology sector [S1].
• DTII's principal executive office is in Del Mar, California, with additional office space in North Vancouver, Canada [S1].
• DTII's subsidiary Passive Security Scan, Inc. (PSSI) holds worldwide exclusive rights to the Passive Security Scan™ technology, including the patented Passive Portal™ (US Patent: 7408461), a passive walk-through personnel scanning system designed to detect concealed threats for schools and public venues [S1].
• The Passive Portal™ uses passive sensing based on earth magnetic technology, emitting zero radiation, distinguishing it from competitors' active scanning technologies that use X-Ray, microwave, or radio signals which may be harmful over time [S1].
• PSSI has exclusive worldwide license to manufacture and sell the Passive Scanning Technology™ and has developed products including Passive Portal™, Passive Portal™ EBT (Elevated Body Temperature), and Passive EBT Station [S1].
• DTII entered a definitive agreement with Controlled Capture Systems, LLC (CCS) in 2016 to acquire exclusive patent license and rights to CCS security technology, with ongoing royalty payments of 5% of gross sales or minimum royalties [S1,S2].
• PSSI was incorporated in Utah in 2017 as a subsidiary controlled by DTII, merging Long Canyon Gold Resources Corp. into PSSI and discontinuing mineral exploration business [S1,S2].
• The Passive Portal™ prototype with optional digital imaging has passed elaborate lab testing and is ready for deployment and demonstration [S1].
• In May 2024, PSSI signed a Cooperative Research and Development Agreement (CRADA) with the U.S. Department of Homeland Security's Science and Technology Directorate for laboratory and field testing of the Passive Portal™ [S1,N4,N5].
• The Passive Portal™ underwent over 500 tests at NUSTL, a Homeland Security department, in September 2024 with successful results and a detailed 36-page report [S1].
• DTII's market targets include schools, public buildings, small airports, hospitality locations, healthcare centers, and other public venues [S1].
• DTII has manufactured and assembled 35 Passive Portal units and 10 EBT stations, with parts for an additional 25 units at its Dallas, Texas production facility capable of assembling up to 500 units per month [S1].
• Initial sales and test units are deployed in schools in Macon County, Alabama, Lanett City Schools in Alabama, and distributed in Texas [S1].
• DTII has expanded its reseller network and signed distributors for Texas and Southeast Asia, including Virexit Technologies, Inc. and PT Lab Sistematika Indonesia [N3,N4].
• The company has engaged in national marketing campaigns to expand sales across the USA and internationally [N3].
• DTII has appointed national and regional marketing and sales directors to support growth [N3].
• Financial snapshot as of January 31, 2026: cash and equivalents $4,558; current assets $7,791; current liabilities $2,668,948; resulting in a working capital deficit and liquidity ratios of zero due to high liabilities [S2].
• For the nine months ended January 31, 2026, DTII reported a net loss of $182,365 and zero revenue for fiscal year 2025 [S2].
• Operating expenses increased due to higher consulting and general administrative costs [S2].
• The company finances operations primarily through issuance of securities, stockholder loans, and convertible debt, with related parties providing short-term operating funds [S2].
• DTII has no off-balance sheet arrangements material to financial condition [S2].
• DTII has no employee stock or stock option plans currently [S1].
• The company has five full and part-time consultants and uses service agreements for management and key consultants [S1].
• DTII's Passive Portal technology is positioned as uniquely safe and suitable for sensitive environments like schools due to its passive, radiation-free sensing [S1].
• The company has received endorsements and repeat orders from school districts and public safety organizations [N2].
• Recent news highlights include successful testing of the Passive Portal, expansion of marketing campaigns, cooperative agreements with DHS, and sales to school districts [N1,N2,N3,N4,N5,N6,N7,N8].