DarkPulse, Inc. Files 2023 10-K

TL;DR

DarkPulse filed its 2023 10-K. Financials are in. Check it out.

AI Summary

DarkPulse, Inc. filed its 2023 10-K on July 15, 2024, reporting its financial performance for the fiscal year ending December 31, 2023. The company, formerly known as KLEVER MARKETING INC and VIDEOCART INC, is involved in the pre-packaged software industry. The filing details its business address in Houston, TX, and includes information on various classes of preferred stock and common stock.

Why It Matters

This filing provides investors and the public with a comprehensive overview of DarkPulse, Inc.'s financial health and operational status for the 2023 fiscal year.

Risk Assessment

Risk Level: medium — The filing is a standard annual report, but the company's history of name changes and its industry can present inherent risks.

Key Numbers

• 2023-12-31 — Fiscal Year End (Reporting period for the 10-K)
• 2024-07-15 — Filing Date (Date the 10-K was submitted to the SEC)

Key Players & Entities

• DarkPulse, Inc. (company) — Filer of the 10-K
• KLEVER MARKETING INC (company) — Former company name
• VIDEOCART INC (company) — Former company name
• 815 Walker Street, Suite 1155, Houston, TX 77002 (location) — Business and mailing address
• 7372 (industry_code) — Standard Industrial Classification for pre-packaged software

FAQ

Key Financial Figures

• $0.0001 — (g) of the Act: Common Stock, par value $0.0001 per share Indicate by check mark if t
• $1,500,000 — ure to the University in the amount of C$1,500,000 (Canadian dollars). In April 2017, DPTI
• $1,491,923, b — e initially recorded in our accounts at $1,491,923, based upon the exchange rate between the
• $93,750.00 — ven Hundred and Fifty Canadian Dollars ($93,750.00 CDN); and (b) interest accrued on the
• $14,828,459 — h the acquisition, the Company acquired $14,828,459 in assets and assumed liabilities total
• $25,179,320 — assets and assumed liabilities totaling $25,179,320. As a result of the transaction, Optila
• $500,000 — 15,000,000 shares of our Common Stock, $500,000 to be paid on the closing date, and an
• $450,000 — equity interests in TJM in exchange for $450,000, subject to adjustments as defined in t
• $400,000 — ,725,386 shares of our Common Stock and $400,000, subject to adjustments as defined in t
• $65,000 — e intended to purchase from Optilan for $65,000 all right, title, and interest in the f
• $19.4 million — l months. The Company has approximately $19.4 million intercompany payables due from Optilan
• $3.47 billion — ensing market is projected to reach USD $3.47 billion by 2023 from USD $1.13 billion in 2016,
• $1.13 billion — each USD $3.47 billion by 2023 from USD $1.13 billion in 2016, at a CAGR of 15.47% between 20

Filing Documents

• darkpulse_i10k-123123.htm (10-K) — 1479KB
• darkpulse_ex1003.htm (EX-10.3) — 18KB
• darkpulse_ex2301.htm (EX-23.1) — 3KB
• darkpulse_ex2302.htm (EX-23.2) — 2KB
• darkpulse_ex3101.htm (EX-31.1) — 10KB
• darkpulse_ex3102.htm (EX-31.2) — 10KB
• darkpulse_ex3201.htm (EX-32.1) — 3KB
• 0001683168-24-004848.txt ( ) — 6873KB
• dpls-20231231.xsd (EX-101.SCH) — 57KB
• dpls-20231231_cal.xml (EX-101.CAL) — 84KB
• dpls-20231231_def.xml (EX-101.DEF) — 188KB
• dpls-20231231_lab.xml (EX-101.LAB) — 416KB
• dpls-20231231_pre.xml (EX-101.PRE) — 354KB
• darkpulse_i10k-123123_htm.xml (XML) — 930KB

BUSINESS

BUSINESS 1 ITEM 1A.

RISK FACTORS

RISK FACTORS 8 ITEM 1B. UNRESOLVED STAFF COMMENTS 33 ITEM 1C. CYBERSECURITY 33 ITEM 2.

PROPERTIES

PROPERTIES 33 ITEM 3.

LEGAL PROCEEDINGS

LEGAL PROCEEDINGS 33 ITEM 4. MINE SAFETY DISCLOSURES 36 PART II 37 ITEM 5. MARKET FOR REGISTRANT'S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES 37 ITEM 6. [RESERVED] 38 ITEM 7.

MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS 38 ITEM 7A.

QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK 49 ITEM 8.

FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA

FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA 49 ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE 49 ITEM 9A.

CONTROLS AND PROCEDURES

CONTROLS AND PROCEDURES 49 ITEM 9B. OTHER INFORMATION 51 ITEM 9C. DISCLOSURE REGARDING FOREIGN JURISDICTIONS THAT PREVENT INSPECTIONS 51 PART III 52 ITEM 10. DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE 52 ITEM 11.

EXECUTIVE COMPENSATION

EXECUTIVE COMPENSATION 55 ITEM 12.

SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS

SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS 56 ITEM 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE 57 ITEM 14. PRINCIPAL ACCOUNTANT FEES AND SERVICES 57 ITEM 15. EXHIBITS AND FINANCIAL STATEMENT SCHEDULES 58 ITEM 16. FORM 10-K SUMMARY 60

FORWARD-LOOKING STATEMENTS

FORWARD-LOOKING STATEMENTS This Annual Report on Form 10-K (the " Form 10-K ") for DarkPulse, Inc., a Delaware corporation (the " Company "), and the exhibits attached hereto contain "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward looking development of the Company's technology, plans related to its business and other matters that may occur in the future. These statements relate to analyses and other information that are based on forecasts of future results, estimates of amounts not yet determinable and assumptions of management. Such forward-looking statements include, among others, those statements including the words "expects", "anticipates", "intends", "believes" and similar language. Our actual results may differ significantly from those projected in the forward-looking statements. Factors that might cause or contribute to such differences include, but are not limited to, those discussed in the section "Risk Factors." We undertake no obligation to publicly release any revisions to the forward-looking statements or reflect events or circumstances after the date of this report. Although we believe that the expectations reflected in these forward-looking statements are based on reasonable assumptions, there are a number of risks and uncertainties that could cause actual results to differ materially from such forward-looking statements. These factors include among others: The impact of conflict between the Russian Federation and Ukraine on our operations; Geo-political events, such as the crisis in Ukraine, government responses to such events and the related impact on the economy both nationally and internationally; Our ability to raise sufficient capital and continue to fund operating expenses; Our ability to get our technology to work in accordance with our tec

BUSINESS

ITEM 1. BUSINESS As used in this Form 10-K, the terms "we," "us," "our," and the "Company" refer to DarkPulse, Inc., a Delaware corporation, and its subsidiaries. Organization DarkPulse, Inc. (" DPI " or " Company ") is a technology-security company incorporated in 1989 as Klever Marketing, Inc. (" Klever "). Its' wholly-owned subsidiary, DarkPulse Technologies Inc. (" DPTI "), originally started as a technology spinout from the University of New Brunswick, Fredericton, Canada. The Company's security and monitoring systems will initially be delivered in applications for border security, pipelines, the oil and gas industry and mine safety. Current uses of fiber optic distributed sensor technology have been limited to quasi-static, long-term structural health monitoring due to the time required to obtain the data and its poor precision. The Company's patented BOTDA dark-pulse sensor technology allows for the monitoring of highly dynamic environments due to its greater resolution and accuracy. University of New Brunswick In December 2010, DPTI entered into an Assignment Agreement with the University, pursuant to which the University sold, transferred, and assigned to us Patents in exchange for the issuance of a debenture to the University in the amount of C$1,500,000 (Canadian dollars). In April 2017, DPTI issued the Debenture. The Patents and the Debenture were initially recorded in our accounts at $1,491,923, based upon the exchange rate between the U.S. dollar and the Canadian dollar on December 16, 2010, the date of the original debenture. In addition to the repayment of principal and interest, the Debenture requires DPTI to pay the University a 2% royalty on sales of any and all products or services which incorporate the Patents for a period of five years commencing on April 24, 2018, as well as to reimburse the University for its patent-related costs. On February 1, 2024, our board of directors approved entering into the Amendment No. 01 to Convertible D

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View this 10-K filing on SEC EDGAR