# Defense Technologies International Corp.

> Clarifo company profile — qualitative business description generated from
> the company's filings. Financial statements, charts and ratios are
> available on Clarifo (https://www.clarifo.com/fi/companies/Defense Technologies International Corp.).

## Overview

Defense Technologies International Corp. is a U.S.-based development-stage security technology company focused on passive threat-detection systems for schools and other public venues. Through its subsidiary PSSI, it holds an exclusive worldwide license to CCS technology and is commercializing the Passive Portal family of walk-through scanners and related elevated body temperature screening products.

## Products & services

• Passive Portal walk-through weapons detector
• Passive Portal EBT combined weapons/temperature scanner
• EBT Station elevated body temperature screening unit
• Optional digital imaging add-on for traffic recall
• Manufacturing, assembly, and demonstration units for deployments

- **Passive security scanning systems** (70%) — Walk-through and hand-held screening products designed to detect concealed threats without emitting radiation.
- **Temperature screening products** (15%) — Elevated body temperature detection units used alongside security screening in public facilities.
- **Prototype and demonstration units** (10%) — Units built for beta testing, customer demonstrations, and early deployments.
- **Licensing and technology rights** (5%) — Exclusive worldwide rights to CCS patents, products, and improvements underpinning the product line.

- Passive Portal walk-through weapons detector
- Passive Portal EBT combined weapons/temperature scanner
- EBT Station elevated body temperature screening unit
- Optional digital imaging add-on for traffic recall
- Manufacturing and assembly of passive security scan units

## Customers

The company targets schools, public buildings, small airports, hospitality venues, health care centers, and other public facilities that need non-radiation security screening. Its buyers are typically venue operators, school systems, and public-sector or quasi-public organizations looking for threat detection that is safer to deploy than active-scanning alternatives.

- **School systems** (primary) — Buy Passive Portal units for student and visitor screening because the technology is marketed as radiation-free and suitable for campuses.
- **Public buildings and government facilities** (primary) — Purchase walk-through scanners to improve access control and detect concealed threats at entrances.
- **Small airports** (secondary) — Use passive screening systems for passenger and visitor security where non-invasive detection is valued.
- **Hospitality and event venues** (secondary) — Buy screening units to add visible security at entrances while minimizing disruption to guests.
- **Health care centers** (secondary) — Use temperature screening and threat detection products to support controlled entry and safety protocols.

- School systems seeking weapons detection without radiation exposure
- Public building operators needing entry-point security screening
- Small airports wanting walk-through threat detection
- Hospitality and venue operators managing guest safety
- Health care centers and other public facilities

## Geography

The company is headquartered in Del Mar, California, with additional office space in North Vancouver, Canada, and a production facility in Dallas, Texas. Its commercial focus is primarily U.S.-based, with product development, assembly, testing, and early customer deployments centered in the United States; the license itself is worldwide, so future sales could extend beyond the current operating footprint.

- Head office in Del Mar, California
- Additional office space in North Vancouver, Canada
- Dallas, Texas production facility for assembly and manufacturing
- Initial deployments and test units in Alabama and Texas
- Worldwide license supports potential international sales

## Strategy

The company’s near-term strategy is to complete product development, validate the Passive Portal through testing, and convert demonstrations into funded production and sales. It is also seeking external financing from securities issuance, stockholder loans, convertible debt, and related-party support to sustain operations and scale manufacturing.

- **Commercialize the Passive Portal platform** (short-term) — The company needs a validated product to move from development-stage operations to recurring sales.
- **Scale manufacturing capacity** (short-term) — Production capability is required to meet potential orders if marketing and testing convert into demand.
- **Build credibility with public-sector buyers** (medium-term) — School and public-facility customers typically require proof of safety and performance before adoption.
- **Secure ongoing financing** (short-term) — The company has limited revenue and depends on external capital to fund operations and commercialization.

- Complete beta and field testing of the Passive Portal system
- Use DHS/NUSTL testing results to support commercialization
- Ramp production at the Dallas facility as demand develops
- Expand marketing to schools and public venues
- Secure financing through equity, loans, and convertible debt

## Risks

The business remains highly dependent on successful product validation, customer adoption, and continued access to financing, while operating with limited revenue and a small consultant-based organization. Execution risk is elevated because commercialization depends on testing outcomes, manufacturing ramp-up, and the ability to compete against established active-scanning technologies.

- **Financing dependence** [high] — The company states it expects to rely on related-party lenders, securities sales, stockholder loans, and convertible debt to fund operations.
- **Commercialization and adoption risk** [high] — The company is still moving from development and testing into broader sales, so customer acceptance is unproven.
- **Competitive technology risk** [medium] — The company competes against active-scanning systems and must prove its passive approach is superior and reliable.
- **Operational concentration** [medium] — The company relies on a small number of consultants, contractors, and third parties for development and operations.
- **Pandemic or public-safety disruption** [low] — Management notes that events such as COVID-19 can limit access to suppliers, advisors, and operating resources.

- No meaningful revenue yet, so commercialization risk is high
- Dependence on related-party and external financing
- Product testing and certification may delay sales
- Competition from established active-scanning technologies
- Small consultant-based operating model limits execution capacity

## Accounting

The most important accounting issues are the valuation of derivative liabilities tied to convertible notes, the treatment of related-party financing, and the ongoing assessment of going-concern-style funding dependence. Because the company has little or no revenue, small changes in financing terms, stock price volatility, or debt conversions can materially affect reported results.

- **Derivative liability fair value** — Can create material non-cash gains or losses each period.
- **Convertible debt accounting** — Can materially change reported financing costs and balance sheet presentation.
- **Related-party financing** — Affects liquidity analysis and the quality of capital structure disclosures.
- **Revenue recognition** — Future product sales timing will drive comparability and growth optics.

- Derivative liability valuation from convertible note conversion features
- Debt discounts and gains/losses on derivative remeasurement
- Related-party notes payable and financing arrangements
- Revenue recognition is currently minimal or absent
- Going-concern and liquidity assumptions affect disclosures

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*Last updated: 2026-04-28T20:00:25.228832+00:00*
