DarkPulse Narrows Losses Amidst Revenue Surge, Asset Decline

TL;DR

**DarkPulse is still burning cash and has a massive deficit, but the revenue growth is a glimmer of hope for speculative investors.**

AI Summary

DarkPulse, Inc. reported a net loss of $471,284 for the three months ended September 30, 2025, an improvement from the $587,043 net loss in the same period of 2024. For the nine months ended September 30, 2025, the net loss was $1,504,701, significantly better than the $3,540,148 loss in the prior year. Revenue for the three months increased slightly to $32,206 from $30,671, while nine-month revenue surged to $224,137 from $55,839, representing a 301% increase. Total assets decreased to $2,033,461 as of September 30, 2025, from $2,788,299 at December 31, 2024, primarily due to a reduction in non-current assets like property and equipment, and operating lease right-of-use assets. The company's total liabilities increased to $20,262,215 from $19,785,133, driven by a rise in accounts payable and accrued expenses to $18,226,876. Cash and cash equivalents declined to $44,499 from $86,531 at year-end 2024. The company continues to operate with a substantial stockholders' deficit of $(18,228,754).

Why It Matters

DarkPulse's significant reduction in net loss for the nine-month period, coupled with a substantial revenue increase, could signal a potential turnaround for investors, despite the declining asset base and growing liabilities. The shift in manufacturing to Sanmina Corporation and consolidation of service offerings under TerraData Unmanned indicates strategic streamlining, which might improve efficiency and competitive positioning against other distributed sensor technology providers. However, the continued high stockholders' deficit and low cash balance present ongoing financial risks. For customers, the focus on patented BOTDA dark-pulse sensor technology for dynamic environments suggests potential for advanced security and monitoring solutions in critical sectors like oil and gas, and border security.

Risk Assessment

Risk Level: high — DarkPulse, Inc. exhibits a high risk level due to its substantial accumulated deficit of $(72,752,633) as of September 30, 2025, and a total stockholders' deficit of $(18,228,754). The company's cash and cash equivalents are critically low at $44,499, down from $86,531 at December 31, 2024, indicating liquidity challenges. Furthermore, total liabilities of $20,262,215 significantly outweigh total assets of $2,033,461, highlighting a precarious financial structure.

Analyst Insight

Investors should approach DPLS with extreme caution, recognizing it as a highly speculative play. While the 301% revenue growth for the nine months is positive, the company's deep accumulated deficit and minimal cash reserves suggest significant ongoing financial instability. Monitor future filings closely for sustained revenue growth, improved cash flow from operations, and a reduction in the stockholders' deficit before considering any investment.

Financial Highlights

debt To Equity

N/A

revenue

$224,137

operating Margin

N/A

total Assets

$2,033,461

total Debt

$20,262,215

net Income

-$1,504,701

eps

N/A

gross Margin

N/A

cash Position

$44,499

revenue Growth

+301%

Key Numbers

• $471,284 — Net loss for Q3 2025 (Improved from $587,043 net loss in Q3 2024)
• $1,504,701 — Net loss for nine months ended Sep 30, 2025 (Significantly better than $3,540,148 loss in prior year)
• $224,137 — Revenue for nine months ended Sep 30, 2025 (Increased 301% from $55,839 in prior year)
• $44,499 — Cash and cash equivalents as of Sep 30, 2025 (Decreased from $86,531 at Dec 31, 2024)
• $2,033,461 — Total assets as of Sep 30, 2025 (Decreased from $2,788,299 at Dec 31, 2024)
• $20,262,215 — Total liabilities as of Sep 30, 2025 (Increased from $19,785,133 at Dec 31, 2024)
• $(18,228,754) — Total stockholders' deficit as of Sep 30, 2025 (Indicates significant financial instability)
• 85,941,739 — Common shares outstanding as of Nov 12, 2025 (Reflects share count for dilution analysis)

Key Players & Entities

• DarkPulse, Inc. (company) — registrant
• DarkPulse Technologies Inc. (company) — wholly-owned subsidiary
• Sanmina Corporation (company) — handling design and manufacturing of patented hardware
• TerraData Unmanned (company) — providing consolidated service offerings
• Optilan India Pvt Ltd (company) — subsidiary providing project engineering & design in India
• Optilan Communications & Security Systems Ltd (company) — subsidiary providing project engineering & design in Europe
• DarkPulse Technologies – FZCO (company) — subsidiary providing science and technology consultancy in Dubai
• Klever Marketing, Inc. (company) — original name of DarkPulse, Inc. incorporated in 1989
• University of New Brunswick, Fredericton, Canada (company) — origin of DarkPulse Technologies Inc. spinout
• SEC (regulator) — Securities and Exchange Commission

FAQ

Risk Factors

• Substantial Stockholders' Deficit [high — financial]: The company has a significant stockholders' deficit of $(18,228,754) as of September 30, 2025. This indicates that the company's liabilities far exceed its assets, raising concerns about its long-term financial viability and ability to meet its obligations.
• Declining Cash Position [high — financial]: Cash and cash equivalents have decreased to $44,499 as of September 30, 2025, from $86,531 at the end of 2024. This sharp decline in liquidity could limit the company's operational flexibility and its ability to fund ongoing operations or invest in growth opportunities.
• Increasing Liabilities [medium — financial]: Total liabilities have increased to $20,262,215 as of September 30, 2025, from $19,785,133 at December 31, 2024. This increase is primarily driven by a rise in accounts payable and accrued expenses to $18,226,876, suggesting potential pressure on working capital management.
• Reduction in Non-Current Assets [medium — operational]: Total assets have decreased to $2,033,461 from $2,788,299, largely due to a reduction in non-current assets like property and equipment and operating lease right-of-use assets. This could indicate a scaling back of operations or asset disposals, which may impact future revenue-generating capacity.

Industry Context

DarkPulse, Inc. operates in a sector that often involves advanced sensor technology and data analytics for infrastructure monitoring. This industry is characterized by a need for significant R&D investment, long sales cycles, and competition from both established players and emerging technology firms. Trends include the increasing adoption of IoT, AI for predictive maintenance, and the demand for real-time structural health monitoring solutions.

Regulatory Implications

As a publicly traded company, DarkPulse, Inc. is subject to SEC regulations and reporting requirements. Compliance with accounting standards (GAAP) is crucial for accurate financial reporting. Any misstatements or failures in internal controls could lead to regulatory scrutiny and penalties.

What Investors Should Do

1. Monitor cash burn rate and runway.
2. Analyze the sustainability of revenue growth.
3. Assess the impact of the substantial stockholders' deficit.
4. Investigate the increase in accounts payable and accrued expenses.

Key Dates

• 2025-09-30: End of Q3 2025 — Reported net loss of $471,284 and revenue of $32,206 for the quarter. Total assets stood at $2,033,461 and total liabilities at $20,262,215, with a cash balance of $44,499.
• 2024-09-30: End of Q3 2024 — Reported net loss of $587,043 for the quarter. This provides a comparison point for the Q3 2025 performance.
• 2025-12-31: End of Fiscal Year 2024 — Total assets were $2,788,299 and total liabilities were $19,785,133, with cash and cash equivalents at $86,531. This serves as a baseline for year-over-year changes.

Glossary

Stockholders' Deficit

A situation where the total liabilities of a company exceed its total assets, resulting in a negative net worth for the shareholders. (DarkPulse, Inc. has a substantial stockholders' deficit of $(18,228,754), indicating significant financial distress.)

Operating lease right-of-use assets

Assets recognized by lessees under IFRS 16 and ASC 842, representing the right to use an underlying asset for the lease term. (A decrease in these assets from $449,556 to $0 contributed to the overall reduction in non-current assets.)

Accumulated deficit

The cumulative net losses of a company since its inception that have not been offset by net income. (The company's accumulated deficit is $(72,752,633) as of September 30, 2025, highlighting a history of unprofitability.)

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. (This line item, valued at $1,988,908, suggests potential future dilution or obligations related to equity issuance.)

Year-Over-Year Comparison

Compared to the prior year, DarkPulse, Inc. has shown a significant improvement in its net loss for both the three-month period (from $587,043 to $471,284) and the nine-month period (from $3,540,148 to $1,504,701). Revenue for the nine months also saw a substantial 301% increase to $224,137. However, total assets have decreased, primarily due to reductions in non-current assets, while total liabilities have edged up. The company's cash position has weakened considerably, and the stockholders' deficit has widened, indicating ongoing financial challenges despite improved loss figures.

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-093025.htm (10-Q) — 1170KB
• darkpulse_ex3101.htm (EX-31.1) — 9KB
• darkpulse_ex3201.htm (EX-32.1) — 4KB
• 0001683168-25-008335.txt ( ) — 6139KB
• dpls-20250930.xsd (EX-101.SCH) — 45KB
• dpls-20250930_cal.xml (EX-101.CAL) — 69KB
• dpls-20250930_def.xml (EX-101.DEF) — 175KB
• dpls-20250930_lab.xml (EX-101.LAB) — 385KB
• dpls-20250930_pre.xml (EX-101.PRE) — 322KB
• darkpulse_i10q-093025_htm.xml (XML) — 908KB

—FINANCIAL INFORMATION

PART I—FINANCIAL INFORMATION 4

Financial Statements

Item 1. Financial Statements 4

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 29

Quantitative and Qualitative Disclosures About Market Risk

Item 3. Quantitative and Qualitative Disclosures About Market Risk 38

Controls and Procedures

Item 4. Controls and Procedures 38

—OTHER INFORMATION

PART II—OTHER INFORMATION 39

Legal Proceedings

Item 1. Legal Proceedings 39

Unregistered Sales of Equity Securities and Use of Proceeds

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 40

Other Information

Item 5. Other Information 40

Exhibits

Item 6. Exhibits 40

—FINANCIAL INFORMATION

PART I—FINANCIAL INFORMATION

Financial Statements

Item 1. Financial Statements DARKPULSE, INC. CONSOLIDATED BALANCE SHEETS Unaudited Audited September 30 December 31 2025 2024 ASSETS CURRENT ASSETS: Cash and cash equivalents $ 44,499 $ 86,531 Accounts receivable, net 873,091 915,044 Prepaid expenses and other current assets 131,429 102,782 TOTAL CURRENT ASSETS 1,049,019 1,104,357 NON-CURRENT ASSETS: Property and equipment, net $ 554,341 $ 698,982 Operating lease right-of-use assets – 449,556 Patents, net 164,364 202,635 Notes receivable, related party – – Investment in related party – – Joint venture – – Goodwill 23,965 23,965 Other assets, net 241,772 308,804 Intangible assets, net – – TOTAL NON-CURRENT ASSETS 984,442 1,683,942 TOTAL ASSETS $ 2,033,461 $ 2,788,299 LIABILITIES AND STOCKHOLDERS' DEFICIT CURRENT LIABILITIES: Accounts payable and accrued expenses $ 18,226,876 $ 16,863,559 Contract liabilities – – Loss provision for contracts in progress – – Convertible notes, net – – Notes payable, current 57,000 114,000 Derivative liability – ( 57,235 ) Loan payable, current 571,374 571,530 Loan payable, related party 369,271 361,747 Secured debenture, current 269,438 260,550 Operating lease liabilities - current – 80,400 Other current liabilities 72,133 70,513 TOTAL CURRENT LIABILITIES 19,566,092 18,265,063 NON-CURRENT LIABILITIES: Secured debenture 404,156 781,094 Loan payable 291,967 291,967 Operating lease liabilities - non-current – 447,009 Non-current liabilities - discontinued operations – – TOTAL NON-CURRENT LIABILITIES 696,123 1,520,070 TOTAL LIABILITIES 20,262,215 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 September 30, 2025 and September 30, 2024 1 1 Convertible preferred stock - Series D, par v

View Full Filing

View this 10-Q filing on SEC EDGAR