DarkPulse Revenue Soars 662% Amidst Persistent Net Losses

TL;DR

**DarkPulse's massive revenue jump is exciting, but don't get fooled – they're still bleeding cash, making this a high-risk bet on future profitability.**

AI Summary

DarkPulse, Inc. reported a significant increase in revenue for the three months ended June 30, 2025, reaching $50,913, up from $14,318 in the same period of 2024, representing a 255% increase. For the six months ended June 30, 2025, revenue surged to $191,931 from $25,168 in 2024, a 662% increase. Despite this revenue growth, the company continues to operate at a net loss, reporting a net loss attributable to DarkPulse, Inc. of $(758,878) for the three months ended June 30, 2025, an improvement from $(2,410,261) in 2024. The six-month net loss also improved to $(1,025,668) from $(2,943,650) year-over-year. Key business changes include the cessation of DarkPulse Manufacturing Inc.'s operations due to a relationship with Sanmina Corporation for design and manufacturing, and the consolidation of services under TerraData Unmanned, leading to Remote Intelligence, LLC and Wildlife Specialists, LLC no longer providing services. The company's total assets decreased from $2,788,299 at December 31, 2024, to $2,171,640 at June 30, 2025, while total liabilities increased from $19,785,133 to $20,413,091 over the same period. The accumulated deficit grew to $(72,285,347) by June 30, 2025, from $(71,259,677) at December 31, 2024, indicating ongoing financial challenges despite revenue gains.

Why It Matters

DarkPulse's substantial revenue growth, particularly the 662% increase for the six months ended June 30, 2025, signals potential market traction for its patented BOTDA dark-pulse sensor technology, which could be a positive for investors looking for early-stage growth. However, the continued and significant net losses, coupled with a growing accumulated deficit of $(72,285,347), highlight severe profitability challenges and raise concerns about long-term viability. The strategic shift to Sanmina Corporation for manufacturing and the consolidation of services under TerraData Unmanned suggest efforts to streamline operations and potentially improve efficiency, which could impact employees of the discontinued entities. In a competitive technology-security market, DarkPulse's ability to convert revenue into profit will be crucial for its survival and for delivering value to customers and the broader market.

Risk Assessment

Risk Level: high — DarkPulse, Inc. exhibits a high-risk profile due to its substantial and increasing accumulated deficit, which reached $(72,285,347) as of June 30, 2025. Despite significant revenue growth, the company continues to report net losses, with a net loss attributable to DarkPulse, Inc. of $(1,025,668) for the six months ended June 30, 2025. Furthermore, total liabilities of $20,413,091 far exceed total assets of $2,171,640, indicating a precarious financial position.

Analyst Insight

Investors should exercise extreme caution and conduct thorough due diligence. While the revenue growth is impressive, the persistent and large net losses, coupled with a significant stockholders' deficit, suggest that DarkPulse is far from profitability. This stock is highly speculative and suitable only for investors with a high-risk tolerance who believe in the long-term potential of its core technology and are prepared for potential further dilution or financial distress.

Financial Highlights

debt To Equity

N/A

revenue

$191,931

operating Margin

N/A

total Assets

$2,171,640

total Debt

$20,413,091

net Income

$(1,025,668)

eps

N/A

gross Margin

N/A

cash Position

$102,134

revenue Growth

+662%

Key Numbers

• $191,931 — Revenue for six months ended June 30, 2025 (Increased 662% from $25,168 in 2024)
• $(1,025,668) — Net loss attributable to DarkPulse, Inc. for six months ended June 30, 2025 (Improved from $(2,943,650) in 2024)
• $(72,285,347) — Accumulated deficit as of June 30, 2025 (Increased from $(71,259,677) at December 31, 2024)
• $2,171,640 — Total assets as of June 30, 2025 (Decreased from $2,788,299 at December 31, 2024)
• $20,413,091 — Total liabilities as of June 30, 2025 (Increased from $19,785,133 at December 31, 2024)
• 15,662,167,427 — Common shares outstanding as of August 14, 2025 (Indicates significant share count and potential for dilution)
• $102,134 — Cash and cash equivalents as of June 30, 2025 (Increased from $86,531 at December 31, 2024, but remains low)

Key Players & Entities

• DarkPulse, Inc. (company) — registrant of the 10-Q filing
• Sanmina Corporation (company) — partner handling design and manufacturing of DarkPulse's hardware
• TerraData Unmanned PLLC (company) — subsidiary consolidating service offerings
• Optilan India Pvt Ltd (company) — subsidiary providing project engineering and design services
• Optilan Communications & Security Systems Ltd (company) — subsidiary providing project engineering and design services in Europe
• DarkPulse Technologies – FZCO (company) — subsidiary providing Science & Technology Consultancy in Dubai
• Securities and Exchange Commission (regulator) — governing body for financial filings
• Federal Deposit Insurance Corporation (regulator) — insures company deposits up to $250,000

FAQ

Risk Factors

• Persistent Accumulated Deficit [high — financial]: The company's accumulated deficit has grown to $(72,285,347) as of June 30, 2025, an increase from $(71,259,677) at December 31, 2024. This indicates a long-term trend of unprofitability and significant cumulative losses, raising concerns about the company's financial sustainability.
• Declining Total Assets [medium — financial]: Total assets have decreased from $2,788,299 at December 31, 2024, to $2,171,640 at June 30, 2025. This reduction in asset base, coupled with increasing liabilities, suggests potential financial strain or asset divestitures that could impact future operations.
• Increasing Total Liabilities [high — financial]: Total liabilities have risen from $19,785,133 at December 31, 2024, to $20,413,091 at June 30, 2025. This increase, while the asset base shrinks, exacerbates the company's leverage and financial risk.
• Operational Restructuring and Service Consolidation [medium — operational]: The cessation of DarkPulse Manufacturing Inc.'s operations and the consolidation of services under TerraData Unmanned, leading to Remote Intelligence, LLC and Wildlife Specialists, LLC no longer providing services, represent significant operational shifts. While intended to streamline operations, these changes introduce execution risks and potential disruptions.
• Low Cash Position [high — financial]: Despite an increase from $86,531 to $102,134, the cash and cash equivalents as of June 30, 2025, remain critically low. This limited liquidity could hinder the company's ability to meet short-term obligations or invest in growth opportunities.
• High Share Count and Potential Dilution [medium — financial]: With 15,662,167,427 common shares outstanding as of August 14, 2025, the company has a very large number of shares. This high share count, especially in conjunction with ongoing losses, indicates a significant potential for future dilution for existing shareholders.

Industry Context

DarkPulse operates in the technology-security sector, focusing on advanced fiber optic distributed sensor technology for structural health monitoring and security applications. The company's patented BOTDA dark-pulse sensor technology aims to differentiate itself by enabling monitoring of highly dynamic environments, an improvement over existing quasi-static monitoring methods. The industry is characterized by a need for reliable, high-precision monitoring solutions in critical infrastructure sectors like border security, oil and gas, and mining.

Regulatory Implications

As a publicly traded company, DarkPulse is subject to SEC regulations and reporting requirements, including the timely filing of 10-Q reports. Compliance with accounting standards (US GAAP) is crucial. Changes in operational structure and potential future equity issuances may also have regulatory implications regarding disclosures and shareholder rights.

What Investors Should Do

1. Monitor path to profitability
2. Assess the impact of operational restructuring
3. Evaluate the company's liquidity and debt levels
4. Consider potential for share dilution

Key Dates

• 2025-06-30: End of Second Quarter 2025 — Reported significant revenue growth of 255% for the quarter and 662% for the six months, alongside an improved net loss. Total assets decreased, and total liabilities increased.
• 2024-06-30: End of Second Quarter 2024 — Provided the comparative period for the substantial revenue and net loss improvements seen in 2025.
• 2024-12-31: End of Fiscal Year 2024 — Provided the comparative balance sheet figures showing total assets of $2,788,299 and total liabilities of $19,785,133.
• 1989-01-01: Company Incorporation — Original incorporation date as Klever Marketing, Inc., marking the inception of the entity that would evolve into DarkPulse, Inc.

Glossary

BOTDA

Brillouin Optical Time Domain Analysis, a technology used for sensing and measuring strain and temperature in optical fibers. (This is the core technology behind DarkPulse's patented sensor system, enabling monitoring of dynamic environments.)

Accumulated deficit

The cumulative net losses of a company that have not been offset by net income. It represents the total loss incurred since the company's inception. (Indicates the company's long-term unprofitability, which has worsened despite recent revenue gains.)

Variable Interest Entities (VIE)

A type of legal entity used in corporate finance for specific business purposes, often involving complex ownership structures. Companies must consolidate VIEs if they have the power to direct the activities that most significantly impact the entity's economic performance. (DarkPulse evaluates its relationships with other entities to determine if they qualify as VIEs, which impacts consolidation of financial statements.)

Common Stock to be issued

Represents shares of common stock that have been committed to be issued but have not yet been fully processed or delivered to the recipients. (This line item on the balance sheet reflects future obligations related to equity issuance.)

Non-controlling interests

The portion of equity in a subsidiary that is not attributable to the parent company. It represents the ownership interest of other shareholders in consolidated entities. (Reflects the ownership stake of external parties in subsidiaries that DarkPulse consolidates.)

Year-Over-Year Comparison

Compared to the prior year period, DarkPulse has demonstrated exceptional revenue growth, with a 662% increase for the six months ended June 30, 2025. The net loss attributable to the company has also significantly improved year-over-year. However, the company's financial position has weakened, as evidenced by a decrease in total assets and an increase in total liabilities. The accumulated deficit has also continued to grow, indicating ongoing challenges in achieving overall profitability despite the top-line growth.

Key Financial Figures

• $0.0001 — nding of the registrant's common stock, $0.0001 par value per share, outstanding as of
• $250,000 — it Insurance Corporation ("FDIC") up to $250,000. To reduce its risk associated with the

Filing Documents

• darkpulse_i10q-063025.htm (10-Q) — 1013KB
• darkpulse_ex3101.htm (EX-31.1) — 9KB
• darkpulse_ex3201.htm (EX-32.1) — 4KB
• 0001683168-25-006151.txt ( ) — 5899KB
• dpls-20250630.xsd (EX-101.SCH) — 43KB
• dpls-20250630_cal.xml (EX-101.CAL) — 72KB
• dpls-20250630_def.xml (EX-101.DEF) — 169KB
• dpls-20250630_lab.xml (EX-101.LAB) — 382KB
• dpls-20250630_pre.xml (EX-101.PRE) — 323KB
• darkpulse_i10q-063025_htm.xml (XML) — 829KB

—FINANCIAL INFORMATION

PART I—FINANCIAL INFORMATION 3

Management's Discussion and Analysis of Financial Condition and Results of Operations

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 30

Quantitative and Qualitative Disclosures About Market Risk

Item 3. Quantitative and Qualitative Disclosures About Market Risk 40

Controls and Procedures

Item 4. Controls and Procedures 40

—OTHER INFORMATION

PART II—OTHER INFORMATION 41

Unregistered Sales of Equity Securities and Use of Proceeds

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 41

Other Information

Item 5. Other Information 41

Exhibits

Item 6. Exhibits 41

—FINANCIAL INFORMATION

PART I—FINANCIAL INFORMATION

Financial Statements

Item 1. Financial Statements DARKPULSE, INC. Consolidated Balance Sheets Unaudited Audited June 30 December 31 2025 2024 ASSETS CURRENT ASSETS: Cash and cash equivalents $ 102,134 $ 86,531 Accounts receivable, net 952,272 915,044 Prepaid expenses and other current assets 100,347 102,782 TOTAL CURRENT ASSETS 1,154,753 1,104,357 NON-CURRENT ASSETS: Property and equipment, net 568,866 698,982 Operating lease right-of-use assets – 449,556 Patents, net 177,121 202,635 Notes receivable, related party – – Investment in related party – – Joint venture – – Goodwill 23,965 23,965 Other assets, net 246,935 308,804 Intangible assets, net – – TOTAL NON-CURRENT ASSETS 1,016,887 1,683,942 TOTAL ASSETS $ 2,171,640 $ 2,788,299 LIABILITIES AND STOCKHOLDERS' DEFICIT CURRENT LIABILITIES: Accounts payable and accrued expenses $ 18,304,279 $ 16,863,559 Contract liabilities – – Loss provision for contracts in progress – – Convertible notes, net – – Notes payable, current 17,690 114,000 Derivative liability 24,804 ( 57,235 ) Loan payable, current 571,412 571,530 Loan payable, related party 372,882 361,747 Secured debenture, current 275,588 260,550 Operating lease liabilities - current – 80,400 Other current liabilities 72,192 70,513 TOTAL CURRENT LIABILITIES 19,638,846 18,265,063 NON-CURRENT LIABILITIES: Secured debenture 482,279 781,094 Loan payable 291,967 291,967 Operating lease liabilities - non-current – 447,009 Non-current liabilities - discontinued operations – – TOTAL NON-CURRENT LIABILITIES 774,246 1,520,070 TOTAL LIABILITIES 20,413,091 19,785,133 Commitments and contingencies – STOCKHOLDERS' DEFICIT: Series A Super Voting preferred stock - par value $ 0.01 ; 100 shares designated, 100 shares issued and outstanding at both June 30, 2025 and December 31, 2024 1 1 Convertible preferred stock - Series D, par value $ 0.

FINANCIAL STATEMENTS UNAUDITED

FINANCIAL STATEMENTS UNAUDITED NOTE 1 – BASIS OF FINANCIAL Organization and Description of Business 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. The Company's subsidiaries consist of: Terradata Unmanned PLLC, based in Florida; DarkPulse UK Ltd based in the United Kingdom; Optilan India Pvt Ltd based in Navi-Mumbai; Optilan Communications & Security Systems Ltd, based in Ankara Turkey; and DarkPulse Technologies – FZCO based in Dubai, UAE. Optilan India Pvt Ltd, operating in India, provides project engineering & design, system provisioning and contract bid services for the Company globally. Optilan Communications & Security Systems Ltd, provides project engineering & design, system provisioning and contract bid services for the Company throughout Europe. DarkPulse Technologies – FZCO will provide Science & Technology Consultancy, Building Maquette & Model Makers and IT Infrastructure. DarkPulse Manufacturing Inc., based in Arizona (formerly TJM Electronics West, Inc.), is no longer providing products or services as a result of the Company's relationship with Sanmina Corporation who is handling both the design and manufacturing of the Company's patented hardware. Remote In

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