# EDGAR Filing Document

**Accession Number:** 0000866439
**File Stem:** 0001683168-26-004154
**Filing Date:** 2026-5
**Character Count:** 154389
**Document Hash:** 8471a67534b5e6acb4af54659afc28f3
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001683168-26-004154.hdr.sgml**: 20260520

**ACCESSION NUMBER**: 0001683168-26-004154

**CONFORMED SUBMISSION TYPE**: 10-Q

**PUBLIC DOCUMENT COUNT**: 84

**CONFORMED PERIOD OF REPORT**: 20260331

**FILED AS OF DATE**: 20260520

**DATE AS OF CHANGE**: 20260520

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** DarkPulse, Inc.
- **CENTRAL INDEX KEY:** 0000866439
- **STANDARD INDUSTRIAL CLASSIFICATION:** SERVICES-PREPACKAGED SOFTWARE [7372]
- **ORGANIZATION NAME:** 06 Technology
- **EIN:** 870472109
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** 10-Q
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 000-18730
- **FILM NUMBER:** 261002777

**BUSINESS ADDRESS:**
- **STREET 1:** 2325 E CAMELBACK RD
- **STREET 2:** SUITE 400
- **CITY:** PHOENIX
- **STATE:** AZ
- **ZIP:** 85016
- **BUSINESS PHONE:** 800-436-1436

**MAIL ADDRESS:**
- **STREET 1:** 2325 E CAMELBACK RD
- **STREET 2:** SUITE 400
- **CITY:** PHOENIX
- **STATE:** AZ
- **ZIP:** 85016

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** KLEVER MARKETING INC
- **DATE OF NAME CHANGE:** 19970605

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** VIDEOCART INC
- **DATE OF NAME CHANGE:** 19930328

?xml version='1.0' encoding='ASCII'? DarkPulse, Inc. 10-Q

[**Table of Contents**](#toc)

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

**FORM 10-Q**

(Mark One)

---

| | |
|:---|:---|
| ☒ | **QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934** |
|  | For the quarterly period ended **March 31, 2026** |

---

Or

---

| | |
|:---|:---|
| ☐ | **TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934** |
|  | For the transition period from _______________________to___________________________ |

---

Commission File Number: **000-18730**

**DarkPulse, Inc.**

(Exact name of registrant as specified in its charter)

---

| | |
|:---|:---|
| **Delaware** | **87-0472109** |
| (State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) |
| **2325 E Camelback Rd, Suite 400**<br> **Phoenix, AZ** | **85016** |
| (Address of principal executive offices) | (Zip Code) |

---

**(800) 436-1436**

(Registrant's telephone number, including area code)

Securities registered pursuant to section 12(b) of the Act:

---

| | | |
|:---|:---|:---|
| **Title of Each Class** | **Trading Symbol(s)** | **Name of each exchange on which registered** |
| Not applicable | Not applicable | Not applicable |

---

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).

Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company," and "emerging growth company" in Rule 12b-2 of the Exchange Act.

Large accelerated filer ☐ Accelerated filer ☐ <br> Non-accelerated filer ☒ Smaller reporting company ☒ <br> Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

The number of shares outstanding of the registrant's common stock, $0.0001 par value per share, outstanding as of May 20, 2026 was 143,554,100.

**TABLE OF CONTENTS**

---

| | |
|:---|:---|
| [PART I—FINANCIAL INFORMATION](#q1_001) | 3 |
| [Item 1. Financial Statements](#q1_002) | 3 |
| [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](#q1_009) | 31 |
| [Item 3. Quantitative and Qualitative Disclosures About Market Risk](#q1_010) | 40 |
| [Item 4. Controls and Procedures](#q1_011) | 40 |
| [PART II—OTHER INFORMATION](#q1_012) | 41 |
| [Item 1. Legal Proceedings](#q1_013) | 41 |
| [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](#q1_014) | 43 |
| [Item 5. Other Information](#q1_015) | 44 |
| [Item 6. Exhibits](#q1_016) | 44 |

---

**PART I—FINANCIAL INFORMATION**

**Item 1. Financial Statements**

**DARKPULSE, INC.**

**Consolidated Balance Sheets**

---

| | | |
|:---|:---|:---|
|  | **Unaudited**<br>**March 31**<br>**2026** | **Audited**<br>**December 31**<br>**2025** |
| **ASSETS** |  |  |
| CURRENT ASSETS: |  |  |
| &nbsp;&nbsp;&nbsp;Cash and cash equivalents | $53371 | $62786 |
| &nbsp;&nbsp;&nbsp;Accounts receivable, net | 411501 | 419212 |
| &nbsp;&nbsp;&nbsp;Prepaid expenses and other current assets | 59299 | 61946 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;TOTAL CURRENT ASSETS | 524171 | 543944 |
| NON-CURRENT ASSETS: |  |  |
| &nbsp;&nbsp;&nbsp;Property and equipment, net | 546378 | 546447 |
| &nbsp;&nbsp;&nbsp;Operating lease right-of-use assets |  |  |
| &nbsp;&nbsp;&nbsp;Patents, net | 138850 | 151607 |
| &nbsp;&nbsp;&nbsp;Other assets, net | 121358 | 125932 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;TOTAL NON-CURRENT ASSETS | 806586 | 823986 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;TOTAL ASSETS | $1330757 | $1367930 |
| **LIABILITIES AND STOCKHOLDERS' DEFICIT** |  |  |
| CURRENT LIABILITIES: |  |  |
| &nbsp;&nbsp;&nbsp;Accounts payable and accrued expenses | $18750071 | $18643326 |
| &nbsp;&nbsp;&nbsp;Notes payable, current | 83133 | 181000 |
| &nbsp;&nbsp;&nbsp;Derivative liability | 263667 | 316009 |
| &nbsp;&nbsp;&nbsp;Loan payable, current | 359778 | 359805 |
| &nbsp;&nbsp;&nbsp;Loan payable, related party | 364462 | 365622 |
| &nbsp;&nbsp;&nbsp;Secured debenture, current | 269438 | 273225 |
| &nbsp;&nbsp;&nbsp;Operating lease liabilities - current |  |  |
| &nbsp;&nbsp;&nbsp;Other current liabilities | 126063 | 126063 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;TOTAL CURRENT LIABILITIES | 20216611 | 20265141 |
| NON-CURRENT LIABILITIES: |  |  |
| &nbsp;&nbsp;&nbsp;Secured debenture | 275950 | 341532 |
| &nbsp;&nbsp;&nbsp;Loan payable | 184410 | 281416 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;TOTAL NON-CURRENT LIABILITIES | 460360 | 622948 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;TOTAL LIABILITIES | 20676971 | 20888089 |
| Commitments and contingencies | **–** |  |
| STOCKHOLDERS' DEFICIT: |  |  |
| &nbsp;&nbsp;&nbsp;Series A Super Voting preferred stock - par value $0.01; 100 shares designated, 100 shares issued and outstanding at both March 31, 2026, and December 31, 2025 | 1 | 1 |
| &nbsp;&nbsp;&nbsp;Convertible preferred stock - Series D, par value $0.01, 100,000 shares designated, 88,235 shares issued and outstanding as of both March 31, 2026 and December 31, 2025 | 883 | 883 |
| &nbsp;&nbsp;&nbsp;Common stock, par value $0.0001, 20,000,000,000 shares authorized, 115,191,608 and 90,904,606 shares issued as of March 31, 2026 and December 31, 2025, respectively, | 11007 | 9090 |
| &nbsp;&nbsp;&nbsp;Treasury stock at cost, 500 shares at March 31, 2026 and December 31, 2025 | (1000) | (1000) |
| &nbsp;&nbsp;&nbsp;Additional paid-in capital | 54166083 | 53898122 |
| &nbsp;&nbsp;&nbsp;Common Stock to be issued | 1880918 | 1950123 |
| &nbsp;&nbsp;&nbsp;Non-controlling interests | 1247045 | 1248238 |
| &nbsp;&nbsp;&nbsp;Accumulated other comprehensive income (loss) | (2179893) | (2399122) |
| &nbsp;&nbsp;&nbsp;Accumulated deficit | (74471258) | (74226493) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;TOTAL STOCKHOLDERS' DEFICIT | (19346214) | (19520159) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;TOTAL LIABILITIES AND STOCKHOLDERS' DEFICIT | $1330757 | $1367930 |

---

See the accompanying notes to the unaudited condensed consolidated financial statements

**DARKPULSE, INC.**

**CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS**

**UNAUDITED**

---

| | | |
|:---|:---|:---|
|  | **Three Months Ended** | **Three Months Ended** |
|  | **March 31,** | **March 31,** |
|  | **2026** | **2025** |
| REVENUES | $18518 | $141018 |
| COST OF REVENUES | 10771 | 103917 |
| GROSS PROFIT (LOSS) | 7747 | 37101 |
|  | 42% | 26% |
| OPERATING EXPENSES: |  |  |
| &nbsp;&nbsp;&nbsp;Selling, general and administrative | 127131 | 144825 |
| &nbsp;&nbsp;&nbsp;Salaries, wages and payroll taxes | 226251 | 237005 |
| &nbsp;&nbsp;&nbsp;Professional fees | 30904 | 47273 |
| &nbsp;&nbsp;&nbsp;Depreciation and amortization | 12757 | 30011 |
| &nbsp;&nbsp;&nbsp;Bad debt expense |  |  |
| &nbsp;&nbsp;&nbsp;Impairment expense |  |  |
| &nbsp;&nbsp;&nbsp;Loss/(Gain) on partial extinguishment of debt | 4234 | – |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;TOTAL OPERATING EXPENSES | 401277 | 459114 |
| OPERATING LOSS | (393530) | (422013) |
| OTHER INCOME (EXPENSE): |  |  |
| &nbsp;&nbsp;&nbsp;Interest expense | 21394 | (8001) |
| &nbsp;&nbsp;&nbsp;Loss on deconsolidation |  |  |
| &nbsp;&nbsp;&nbsp;Change in fair market of derivative liabilities | 126178 |  |
| &nbsp;&nbsp;&nbsp;Loss on equity investment |  |  |
| &nbsp;&nbsp;&nbsp;Gain on the forgiveness of debt |  | 181055 |
| &nbsp;&nbsp;&nbsp;Exceptional Costs gain |  | (18772) |
| &nbsp;&nbsp;&nbsp;Foreign currency exchange rate variance | – | (2613) |
| TOTAL OTHER INCOME (EXPENSE) | 147572 | 151669 |
| Net income (loss) | (245958) | (270344) |
| Net loss attributable to non-controlling interests | 1193 | 3554 |
| Net loss attributable to DarkPulse, Inc. | $(244765) | $(266790) |
| Net loss per share - basic and diluted | $(0.00) | $(0.00) |
| Weighted average common shares outstanding - basic and diluted | 93713916 | 56203180 |

---

---

| | | |
|:---|:---|:---|
|  | **Three Months Ended <br>March 31,** | **Three Months Ended <br>March 31,** |
|  | **2026** | **2025** |
| NET LOSS | $(245958) | $(270344) |
| OTHER COMPREHENSIVE INCOME (LOSS) |  |  |
| Foreign currency translation | (772036) | (395675) |
| COMPREHENSIVE LOSS | $(1017994) | $(666018) |

---

See the accompanying notes to the unaudited condensed consolidated financial statements

**DARKPULSE, INC.**

**Consolidated Statement of Stockholders' Deficit**

**For the Three Months Ended March 31, 2026 and 2025**

**Unaudited**

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Preferred Stock** | **Preferred Stock** | **Preferred Stock** | **Preferred Stock** | | | | |
|  | **Series A** | **Series A** | **Series D** | **Series D** | **Common stock** | **Common stock** | **Common stock to be issued** | **Common stock to be issued** |
|  | **Shares** | **Amount** | **Shares** | **Amount** | **Shares** | **Amount** | **Shares** | **Amount** |
| **Balance at December 31, 2024** | 100 | $1 | 88235 | $883 | 52759788 | $5276 | 12727778 | $2464519 |
| Common stock issued for cash, net of fees |  |  |  |  | 6325093 | 633 |  |  |
| Conversion of convertible debt into common stock |  |  |  |  |  |  |  |  |
| Issuance of common stock for legal settlement |  |  |  |  | 1250000 |  | (1250000) |  |
| Common Stock to be issued |  |  |  |  |  |  |  |  |
| Foreign currency adjustment |  |  |  |  |  |  |  |  |
| Common stock issued corrections |  |  |  |  | 1096350 | 110 | (600000) | (110) |
| Net loss | – | – | – | – | – | – | – | – |
| **Balance at March 31, 2025** | 100 | $1 | 88235 | $883 | 61431231 | $6018 | 10877778 | $2464410 |

---

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Preferred Stock** | **Preferred Stock** | **Preferred Stock** | **Preferred Stock** | | | | |
|  | **Series A** | **Series A** | **Series D** | **Series D** | **Common stock** | **Common stock** | **Common stock to be issued** | **Common stock to be issued** |
|  | **Shares** | **Amount** | **Shares** | **Amount** | **Shares** | **Amount** | **Shares** | **Amount** |
| **Balance at December 31, 2025** | 100 | $1 | 88235 | $883 | 90904606 | $9090 | 2125069 | $1950123 |
| Common stock issued for cash, net of fees |  |  |  |  | 10980905 | 586 |  |  |
| Conversion of convertible debt into common stock |  |  |  |  | 8833636 | 884 |  |  |
| Issuance of common stock for legal settlement |  |  |  |  | 4472461 | 447 | (4472461) | (69205) |
| Common Stock to be issued |  |  |  |  |  |  |  |  |
| Foreign currency adjustment |  |  |  |  |  |  |  |  |
| Common stock issued corrections |  |  |  |  |  |  | 441263154 |  |
| Net Income (loss) | – | – | – | – | – | – | – | – |
| **Balance at March 31, 2026** | 100 | $1 | 88235 | $883 | 115191608 | $11007 | 438915762 | $1880918 |

---

**DARKPULSE, INC.**

**Consolidated Statement of Stockholders' Deficit**

**For the Three Months Ended March 31, 2026 and 2025**

**Unaudited**

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Treasury stock** | **Treasury stock** | | | | | |
|  | **Shares** | **Amount** | **Additional paid-in**<br>**capital** | **Non- controlling**<br>**interests** | **Accumulated other comprehensive**<br>**loss** | **Accumulated**<br>**deficit** | **Total <br> stockholders' deficit**<br>**(equity)** |
| **Balance at December 31, 2024** | 500 | $(1000) | $52213244 | $1207006 | $(1627086) | $(71259677) | $(16996834) |
| Common stock issued for cash, net of fees |  |  | 438737 |  |  |  | 439370 |
| Issuance of common stock for legal settlement |  |  |  |  |  |  |  |
| Common Stock to be issued |  |  |  |  |  |  |  |
| Foreign currency adjustment |  |  |  |  | (395675) |  | (395675) |
| Common stock issued for cash |  |  |  |  |  |  |  |
| Net loss | – | – | – | (3554) | – | (266790) | (270344) |
| **Balance at March 31, 2025** | 500 | $(1000) | $52651982 | $1203452 | $(2022761) | $(71526469) | $(17223485) |

---

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Treasury stock** | **Treasury stock** | | | | | |
|  | **Shares** | **Amount** | **Additional paid-in**<br>**capital** | **Non- controlling**<br>**interests** | **Accumulated other comprehensive**<br>**loss** | **Accumulated**<br>**deficit** | **Total <br> stockholders' deficit**<br>**(equity)** |
| **Balance at December 31, 2025** | 500 | $(1000) | $53898122 | $1248238 | $(2399122) | $(74226493) | $(19520159) |
| Common stock issued for cash, net of fees |  |  | 133305 |  |  |  | 133891 |
| Conversion of convertible debt into common stock |  |  | 65898 |  |  |  | 66782 |
| Issuance of common stock for legal settlement |  |  | 68758 |  |  |  |  |
| Common Stock to be issued |  |  |  |  |  |  |  |
| Foreign currency adjustment |  |  |  |  | 219229 |  | 219229 |
| Net Income (loss) | – | – | – | (1193) | – | (244765) | (245958) |
| **Balance at March 31, 2026** | 500 | $(1000) | $54166083 | $1247045 | $(2179893) | $(74471258) | $(19346214) |

---

See the accompanying notes to the unaudited condensed consolidated financial statements

**DARKPULSE, INC.**

**CONSOLIDATED STATEMENT OF CASH FLOWS**

**UNAUDITED**

---

| | | |
|:---|:---|:---|
|  | **Three Months Ended** | **Three Months Ended** |
|  | **March 31,** | **March 31,** |
|  | **2026** | **2025** |
| **Cash flows from operating activities:** |  |  |
| Net loss | $(245958) | $(270344) |
| Adjustments to reconcile net loss to net cash used in operating activities: |  |  |
| &nbsp;&nbsp;&nbsp;Depreciation and amortization | 12757 | 30011 |
| &nbsp;&nbsp;&nbsp;Gain on forgiveness of payables and liabilities |  | 181055 |
| &nbsp;&nbsp;&nbsp;Change in fair market of derivative liabilities | (126178) |  |
| &nbsp;&nbsp;&nbsp;Loss on notes payable convertible option | 8196 |  |
| &nbsp;&nbsp;&nbsp;Issuance of common stock for legal settlement |  |  |
| &nbsp;&nbsp;&nbsp;Amortization of debt discount | 17333 |  |
| &nbsp;&nbsp;&nbsp;Bad debt expense |  |  |
| &nbsp;&nbsp;&nbsp;Exceptional Costs gain |  | 25260 |
| &nbsp;&nbsp;&nbsp;Gain on partial extinguishment of debt | 4234 |  |
| Changes in operating assets and liabilities: |  |  |
| &nbsp;&nbsp;&nbsp;Accounts receivable | 7711 | (136294) |
| &nbsp;&nbsp;&nbsp;Prepaid expenses and other assets | 2647 | 58451 |
| &nbsp;&nbsp;&nbsp;Accounts payable and accrued expenses | 112696 | 266803 |
| &nbsp;&nbsp;&nbsp;Operating lease liabilities, net |  | (527409) |
| &nbsp;&nbsp;&nbsp;Other current liabilities | 48217 | 1684 |
| &nbsp;&nbsp;&nbsp;Other assets | 4574 | 449556 |
| &nbsp;&nbsp;&nbsp;Other liabilities | (186821) | – |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash provided (used) in operating activities | (340593) | 78773 |
| **Cash flows from investing activities:** |  |  |
| &nbsp;&nbsp;&nbsp;Proceeds (purchases) of property and equipment |  | 19675 |
| &nbsp;&nbsp;&nbsp;Investment in joint venture |  |  |
| &nbsp;&nbsp;&nbsp;Issuance of note receivable, related party |  |  |
| &nbsp;&nbsp;&nbsp;Advances to related party | – | – |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash provided (used) in investing activities | – | 19675 |
| **Cash flows from financing activities:** |  |  |
| &nbsp;&nbsp;&nbsp;Issuance of common stock, net of fees | 135222 | 439370 |
| &nbsp;&nbsp;&nbsp;Proceeds from convertible notes | 50000 | 15270 |
| &nbsp;&nbsp;&nbsp;Net repayments of loan payable | (73342) | (136159) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash provided (used) by financing activities | 111880 | 318481 |
| **Net change in cash** | (228713) | 416929 |
| Effect of exchange rate on cash | 219298 | (395675) |
| Cash at beginning of year | 62786 | 86531 |
| Cash at end of year | $53371 | $107785 |
| **Supplemental disclosure of cash flow information:** |  |  |
| Cash paid for interest | $5718 | $18971 |
| Cash paid for income taxes | $– | $– |
| **Non-cash financing and investing activities:** |  |  |
| Conversion of convertible debt | $65550 | $109521 |
| Partial extinguishment of loan payable | $97006 | $– |

---

See the accompanying notes to the unaudited condensed consolidated financial statements

**DARKPULSE, INC.**

**NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS**

**UNAUDITED**

***NOTE 1 – BASIS OF FINANCIAL STATEMENT PRESENTATION***

***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 and technology consultancy, building maintenance and model makers and information technology ("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 Intelligence, LLC and Wildlife Specialists, LLC are no longer providing services as a result of redundant service offerings that are now being offered by TerraData Unmanned.

***NOTE 2 – SIGNIFICANT ACCOUNTING POLICIES***

A summary of the significant accounting policies consistently applied in the preparation of the accompanying financial statements are as follows:

***Basis of Presentation and Principles of Consolidation***

The Company's consolidated financial statements are prepared in accordance with accounting principles generally accepted in the United States ("US GAAP"). The consolidated financial statements of the Company include the Company and its wholly-owned subsidiaries. All material intercompany balances and transactions have been eliminated in consolidation.

The Company evaluates its relationships with other entities to identify whether they are variable interest entities ("VIE") as defined by Financial Accounting Standards Board ("FASB") Accounting Standards Codification ("ASC") Topic 810, Consolidation ("ASC 810"), and to assess whether it is the primary beneficiary of such entities. If the determination is made that the Company is the primary beneficiary, then that entity is consolidated.

***Use of Estimates***

The preparation of the Company's financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Significant estimates and assumptions reflected in these financial statements include, but are not limited to, assumptions used to calculate derivative liabilities, revenue recognition and impairment of long-lived assets. The Company bases its estimates on historical experience, known trends and other market-specific or other relevant factors that it believes to be reasonable under the circumstances. On an ongoing basis, management evaluates its estimates when there are changes in circumstances, facts and experience. Changes in estimates are recorded in the period in which they become known. Actual results could differ from those estimates.

 ****

***Cash***

The Company considers all highly liquid investments with a maturity of three months or less when acquired to be cash equivalents. The Company places its cash with high credit quality financial institutions. The Company's account at this institution is insured by the Federal Deposit Insurance Corporation ("FDIC") up to $250,000. To reduce its risk associated with the failure of such a financial institution, the Company evaluates at least annually the rating of the financial institution in which it holds deposits.

***Accounts Receivable***

Accounts receivable and contract assets include amounts billed to customers under the terms and provisions of the contracts. Most billings are determined based on contractual terms. As is common practice in the industry, the Company classifies all accounts receivable and contract assets, including retainage, as current assets. The contracting cycle for certain long-term contracts may extend beyond one year, and accordingly, collection of retainage on those contracts may extend beyond one year. Contract assets include amounts billed to customers under retention provisions in construction contracts. Such provisions are standard in the Company's industry and usually allow for a portion of progress billings on the contract price, typically 5-10%, to be withheld by the customer until after the Company has completed work on the project. Billings for such retention balances at each balance sheet date are finalized and collected after project completion. Generally, unbilled amounts will be billed and collected within one year. The Company determined that there are no material amounts due past one year and no material amounts billed but not expected to be collected within one year. Also, the Company adopted ASU 2016-13 in January 2023 and the adoption did not have a material impact on the Company's consolidated financial statements and related disclosures for the year ended December 31, 2024

Each month, the Company reviews its receivables on a customer-by-customer basis and evaluates whether an allowance for doubtful accounts is necessary based on any known or perceived collection issues. Any balances that are eventually deemed uncollectible are written off against the allowance after all means of collection have been exhausted and the potential for recovery is considered remote. As of March 31, 2026 and 2025, the Company determined that the allowance for doubtful accounts was $0 and $0, respectively.

***Foreign Currency Translation***

The Company's reporting currency is US Dollars. The accounts of one of the Company's subsidiaries is maintained using the appropriate local currency, British Pound ("GBP") as the functional currency, as well as the Turkish lira, ("TL"), United Arab Emirates Dirham ("AED"), and Indian Rupee ("INR"). The accounts of one of the Company's subsidiaries are maintained using the appropriate local currency, Canadian Dollar ("CAD") as the functional currency. All assets and liabilities are translated into U.S. Dollars at balance sheet date, shareholders' equity is translated at historical rates and revenue, and expense accounts are translated at the average exchange rate for the year or the reporting period. The translation adjustments are reported as a separate component of stockholders' equity, captioned as accumulated other comprehensive (loss) gain. Transaction gains and losses arising from exchange rate fluctuations on transactions denominated in a currency other than the functional currency are included in the statements of operations as foreign currency exchange variance.

The relevant translation rates are as follows: for the three ended March 31, 2026 a closing rate at 1.3227 US$GBP: a closing rate of .7185 US$:CAD, a closing rate of $.0107 INR:USD, a closing rate of $.02248 TRY:USD, a closing rate of .2723 UAE :USD and a closing rate at 1.1555 EURO:USD .

The relevant translation rates are as follows: for the year ended March 31, 2025 a closing rate at 1.292 US$: GBP, average rate at 1.2633 US$:GBP, and closing rate of 1.4391 US$:CAD.

***Long-Lived Assets and Goodwill***

The Company accounts for long-lived assets in accordance with the provisions of ASC 360-10-35, Property, Plant and Equipment, Impairment or Disposal of Long-lived Assets. This accounting standard requires that long-lived assets be reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to future undiscounted net cash flows expected to be generated by the asset. If the carrying amount of an asset exceeds its estimated future cash flows, an impairment charge is recognized by the amount by which the carrying amount of the asset exceeds the fair value of the asset.

Indefinite-lived intangible assets established in connection with business combinations consist of the tradename. The impairment test for identifiable indefinite-lived intangible assets consists of a comparison of the estimated fair value of the intangible asset with its carrying value. If the carrying value exceeds its fair value, an impairment loss is recognized in an amount equal to that excess.

The Company accounts for goodwill and intangible assets in accordance with ASC 350, Intangibles – Goodwill and Other. Goodwill represents the excess of the purchase price of an entity over the estimated fair value of the assets acquired and liabilities assumed. ASC 350 requires that goodwill and other intangibles with indefinite lives be tested for impairment annually or on an interim basis if events or circumstances indicate that the fair value of an asset has decreased below its carrying value. This guidance simplifies the accounting for goodwill impairment by removing Step 2 of the goodwill impairment test, which requires a hypothetical purchase price allocation. The quantitative impairment test calculates any goodwill impairment as the difference between the carrying amount of a reporting unit and its fair value, but not to exceed the carrying amount of goodwill. It is our practice, at a minimum, to perform a qualitative or quantitative goodwill impairment test in the fourth quarter every year. The Company has one reporting unit it evaluates during its impairment test.

***Property and Equipment***

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Property and equipment are carried at historical cost less accumulated depreciation. Depreciation is based on the estimated service lives of the depreciable assets and is calculated using the straight-line method. Expenditures that increase the value or productive capacity of assets are capitalized. Fully depreciated assets are retained in the property and equipment, and accumulated depreciation accounts until they are removed from service. When property and equipment are retired, sold or otherwise disposed of, the asset's carrying amount and related accumulated depreciation are removed from the accounts and any gain or loss is included in operations. Repairs and maintenance are expensed as incurred.

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| | |
|:---|:---|
| The estimated useful lives of property and equipment are generally as follows: | <u>Years</u> |
| Office furniture and fixtures | 4 |
| Plant and equipment | 4-8 |
| Leasehold Improvements | 10 |
| Motor vehicles | 3 |

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***Revenue Recognition***

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The Company's revenues are generated primarily from the sale of our services, which consist primarily of advanced technology solutions for integrated communications and security systems, as well as habitat management. The Company's sales of products are primarily generated from our TJM subsidiaries. Sales of products and services are separate from one another. At contract inception, we assess the goods and services promised in the contract with customers and identify a performance obligation for each. To determine the performance obligation, we consider all products and services promised in the contract regardless of whether they are explicitly stated or implied by customary business practices. The timing of satisfaction of the performance obligation is not subject to significant judgment. We measure revenue as the amount of consideration expected to be received in exchange for transferring goods and services. We recognize service revenues as the performance obligations are met, which is generally as milestones are satisfied over time. We generally recognize product revenues at the time of shipment, provided that all other revenue recognition criteria have been met.

The Company recognizes revenue when its customer obtains control of promised goods or services, in an amount that reflects the consideration which we expect to receive in exchange for those goods or services. To determine revenue recognition for arrangements that the Company determines are within the scope of ASC 606, we perform the following five steps: (i) identify the contract(s) with a customer; (ii) identify the performance obligations in the contract; (iii) determine the transaction price; (iv) allocate the transaction price to the performance obligations in the contract; and (v) recognize revenue when (or as) we satisfy a performance obligation. The five-step model is applied to contracts when it is probable that we will collect the consideration we are entitled to in exchange for the goods or services transferred to the customer. At contract inception, once the contract is determined to be within the scope of ASC 606, we assess the goods or services promised within each contract and determine those that are performance obligations and assess whether each promised good or service is distinct. We then recognize revenue in the amount of the transaction price that is allocated to the respective performance obligation when (or as) the performance obligation is satisfied.

The Company considers each individual sale of service contract to be its own performance obligation. Services in the contract are highly interdependent and interrelated, and the successful completion of each milestone is necessary for the overall success of the contract. Therefore, each milestone is not separately identifiable from other promises in the contract, and not distinct and ultimately not individual performance obligations.

The Company records revenue over time using the input measure as it is the most faithful depiction of an entity's performance because it directly measures the value of the goods and services transferred to the customer. The Company utilizes the Right to Invoice for these contracts, as the pricing structure is based on various milestones that are specified in the contract. These milestones include Construction Phase Plan, Start of the construction phase, installation phase, site surveys, fiber splicing, recoveries, and closeouts. There are specified payments associated with these milestones in the contract, and the value allocated is commensurate with work done. In the event that there are advances such as upfront retainers and not based on the value, those are recorded as contract liabilities.

In accordance with ASU No. 2016-12, Revenue from Contracts with Customers (Topic 606): Narrow-Scope Improvements and Practical Expedient, which is to (1) clarify the objective of the collectability criterion for applying paragraph 606-10-25-7; (2) permit an entity to exclude amounts collected from customers for all sales (and other similar) taxes from the transaction price; (3) specify that the measurement date for noncash consideration is contract inception; (4) provide a practical expedient that permits an entity to reflect the aggregate effect of all modifications that occur before the beginning of the earliest period presented when identifying the satisfied and unsatisfied performance obligations, determining the transaction price, and allocating the transaction price to the satisfied and unsatisfied performance obligations; (5) clarify that a completed contract for purposes of transition is a contract for which all (or substantially all) of the revenue was recognized under legacy GAAP before the date of initial application, and (6) clarify that an entity that retrospectively applies the guidance in Topic 606 to each prior reporting period is not required to disclose the effect of the accounting change for the period of adoption. The amendments of this ASU are effective for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. There was no impact as a result of adopting this ASU on the financial statements and related disclosures. Based on the terms and conditions of the product arrangements, the Company believes that its products and services can be accounted for separately as its products and services have value to the Company's customers on a stand-alone basis. When a transaction involves more than one product or service, revenue is allocated to each deliverable based on its relative fair value; otherwise, revenue is recognized as products are delivered or as services are provided over the term of the customer contract.

***Cost of Revenues***

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Cost of revenues consists primarily of materials and overhead costs incurred internally and amounts incurred to contract manufacturers to produce our products, airtime and other implementation costs incurred to install our products and train customer personnel, and customer service and third- party original equipment manufacturer costs to provide continuing support to our customers. Cost of revenues also includes direct labor attributable to revenue service arrangements.

***Concentration of Credit Risk***

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Financial instruments that potentially subject the Company to concentrations of credit risk consist principally of cash and cash equivalents. The Company has not experienced any losses related to its cash and does not believe that it is subject to unusual credit risk beyond the normal credit risk associated with commercial banking relationships. As of March 31, 2026, one customer accounted for 13% of gross accounts receivable.

***Leases***

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The Company accounts for its leases under ASC 842, Leases. Under this guidance, arrangements meeting the definition of a lease are classified as operating or financing leases and are recorded on the consolidated balance sheet as both a right of use asset and lease liability, calculated by discounting fixed lease payments over the lease term at the rate implicit in the lease or the Company's incremental borrowing rate. Lease liabilities are increased by interest and reduced by payments each period, and the right of use asset is amortized over the lease term. For operating leases, interest on the lease liability and the amortization of the right of use asset result in straight-line rent expense over the lease term. For finance leases, interest on the lease liability and the amortization of the right of use asset results in front-loaded expense over the lease term. Variable lease expenses are recorded when incurred.

In calculating the right of use asset and lease liability, the Company has elected to combine lease and non-lease components. The Company excludes short-term leases having initial terms of 12 months or less from the new guidance as an accounting policy election and recognizes rent expense on a straight-line basis over the lease term.

***Derivative Financial Instruments***

The Company evaluates the embedded conversion feature within its convertible debt instruments under ASC 815-15 and ASC 815-40 to determine if the conversion feature meets the definition of a liability and, if so, whether to bifurcate the conversion feature and account for it as a separate derivative liability. For derivative financial instruments that are accounted for as liabilities, the derivative instrument is initially recorded at its fair value and is then re-valued at each reporting date, with changes in the fair value reported in the statements of operations. For stock-based derivative financial instruments, the Company uses a lattice model, in accordance with ASC 815-15, Derivative and Hedging, to value the derivative instruments at inception and on subsequent valuation dates. The classification of derivative instruments, including whether such instruments should be recorded as liabilities or as equity, is evaluated at the end of each reporting period. Derivative instrument liabilities are classified in the balance sheet as current or non-current based on whether net-cash settlement of the derivative instrument could be required within 12 months after the balance sheet date.

***Fair Value of Financial Instruments***

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The Company measures its financial assets and liabilities in accordance with the requirements of FASB ASC 820, Fair Value Measurements and Disclosures. As defined in FASB ASC 820, the fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (exit price). The Company utilized the market data of similar entities in its industry or assumptions that market participants would use in pricing the asset or liability, including assumptions about risk and the risks inherent in the inputs to the valuation technique. These inputs can be readily observable, market corroborated, or generally unobservable. The Company classifies fair value balances based on the observability of those inputs. FASB ASC 820 established a fair value hierarchy that prioritizes the inputs used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (level 1 measurement) and the lowest priority to unobservable inputs (level 3 measurement) as follows:

Level 1 – Quoted prices are available in active markets for identical assets or liabilities as of the reporting date. Active markets are those in which transactions for the asset or liability occur in sufficient frequency and volume to provide pricing information on an ongoing basis. Level 1 primarily consists of financial instruments such as exchange-traded derivatives, marketable securities and listed equities.

Level 2 – Pricing inputs are other than quoted prices in active markets included in level 1, which are either directly or indirectly observable as of the reported date and includes those financial instruments that are valued using models or other valuation methodologies. These models are primarily industry-standard models that consider various assumptions, including quoted forward prices for commodities, time value, volatility factors, and current market and contractual prices for the underlying instruments, as well as other relevant economic measures. Substantially all of these assumptions are observable in the marketplace throughout the full term of the instrument, can be derived from observable data or are supported by observable levels at which transactions are executed in the marketplace. Instruments in this category generally include non- exchange-traded derivatives such as commodity swaps, interest rate swaps, options and collars.

Level 3 – Pricing inputs include significant inputs that are generally less observable from objective sources. These inputs may be used with internally developed methodologies that result in management's best estimate of fair value.

The Company's derivative liability is a Level 3 liability measured at fair value on a recurring basis. See Note 10.

***Equity Investments***

The Company uses the equity method to account for investments in which it has the ability to exercise significant influence over the investee's operating and financial policies, or in which it holds a partnership or limited liability company interest in an entity with specific ownership accounts, unless it has virtually no influence over the investee's operating and financial policies. The Company follows the guidance in ASC 323-10-30-2, Joint Ventures, which prescribes the use of the equity method for investments in joint ventures where the Company has significant influence. Equity method investments are recorded at cost and are adjusted to recognize (1) the Company's share, based on percentage ownership or other contractual basis, of the investee's net income or loss after the date of investment, (2) amortization of the recorded investment that exceeds the Company's share of the book value of the investee's net assets, (3) additional contributions made and dividends received, and (4) impairments resulting from other-than- temporary declines in fair value. Gain (loss) on equity investment includes realized gains or losses upon the sale of the investment and are included as other income (expense) in the consolidated statements of operations and comprehensive (loss).

Per ASC 323-10-30-2, Joint Ventures are accounted for using the equity method, in which the Company initially records its investment at cost, including transaction costs. Under the equity method, an investment in common stock and in-substance common stock is presented on the balance sheet of an investor as a single amount. However, any difference between the cost of the investment and the underlying equity in net assets of an investee — commonly referred to as a basis difference — should be accounted for as if the investee were a consolidated subsidiary.

***Income Taxes***

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The Company accounts for income taxes pursuant to the provision of ASC 740-10, ("ASC 740-10") which requires, among other things, an asset and liability approach to calculating deferred income taxes. The asset and liability approach requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of temporary differences between the carrying amounts and the tax bases of assets and liabilities. A valuation allowance is provided to offset any net deferred tax assets for which management believes it is more likely than not that the net deferred asset will not be realized.

The Company follows the provision of ASC 740-10 related to Accounting for Uncertain Income Tax Positions. When tax returns are filed, there may be uncertainty about the merits of positions taken or the amount of the position that would be ultimately sustained. In accordance with the guidance of ASC 740-10, the benefit of a tax position is recognized in the financial statements in the period during which, based on all available evidence, management believes it is more likely than not that the position will be sustained upon examination, including the resolution of appeals or litigation processes, if any. Tax positions taken are not offset or aggregated with other positions.

Tax positions that meet the more likely than not recognition threshold are measured at the largest amount of tax benefit that is more than 50 percent likely of being realized upon settlement with the applicable taxing authority. The portion of the benefit associated with tax positions taken that exceed the amount measured as described above should be reflected as a liability for uncertain tax benefits in the accompanying balance sheet along with any associated interest and penalties that would be payable to the taxing authorities upon examination.

The Company believes its tax positions are all more likely than not to be upheld upon examination. As such, the Company has not recorded a liability for uncertain tax benefits.

The Company has adopted ASC 740-10-25, Definition of Settlement which provides guidance on how an entity should determine whether a tax position is effectively settled for the purpose of recognizing previously unrecognized tax benefits and provides that a tax position can be effectively settled upon the completion and examination by a taxing authority without being legally extinguished. For tax positions considered effectively settled, an entity would recognize the full amount of tax benefit, even if the tax position is not considered more likely than not to be sustained based solely on the basis of its technical merits and the statute of limitations remains open. The federal and state income tax returns of the Company are subject to examination by the IRS and state taxing authorities, generally for three years after they are filed.

The Company does not anticipate a tax liability for the years 2026 and 2025, however may be subject to certain penalties. The Company has filed tax returns in Canada for the year ended December 31, 2018, and they are still subject to audit.

***Non-controlling Interests***

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Non-controlling interests are classified as a separate component of equity in the Company's consolidated balance sheets and statements of changes in stockholders' equity. Net income (loss) and comprehensive income (loss) attributable to non-controlling interests are reflected separately from consolidated net income (loss) and comprehensive income (loss) in the consolidated statements of comprehensive income (loss) and statements of changes in stockholders' equity. Any change in ownership of a subsidiary while the controlling financial interest is retained is accounted for as an equity transaction between the controlling and non-controlling interests. In addition, when a subsidiary is deconsolidated, any retained non- controlling equity investment in the former subsidiary will be initially measured at fair value and the difference between the carrying value and fair value of the retained interest will be recorded as a gain or loss. The Company has non-controlling interests via its subsidiaries TerraData, Remote Intelligence and Wildlife Specialists.

During the three months ended March 31, 2026 and 2025, the Company recorded a loss of $1,193 and $3,554 respectively, attributable to non- controlling interests.

***Comprehensive Loss***

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Comprehensive loss includes net loss well as other changes in stockholders' equity that result from transactions and economic events other than those with stockholders. During the three months ended March 31, 2026 and 2025, the Company's only element of other comprehensive loss was foreign currency translation.

***Stock-based Compensation***

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Stock-based compensation is accounted for based on the requirements of the Share-Based Payment Topic of ASC 718 which requires recognition in the consolidated financial statements of the cost of employee and director services received in exchange for an award of equity instruments over the period the employee or director is required to perform the services in exchange for the award (presumptively, the vesting period). The ASC also requires measurement of the cost of employee and director services received in exchange for an award based on the grant-date fair value of the award.

Pursuant to ASC Topic 718, for share-based payments to consultants and other third-parties, compensation expense is determined at the "measurement date." The expense is recognized over the vesting period of the award. Until the measurement date is reached, the total amount of compensation expense remains uncertain. The Company initially records compensation expense based on the fair value of the award at the reporting date. Further, ASC Topic 718, provides guidance about which changes to the terms or conditions of a share-based payment award require an entity to apply modification accounting in Topic 718, such as the repricing of share options, which would revalue those options and the accounting for the cancellation of an equity award whether a replacement award or other valuable consideration is issued in conjunction with the cancellation. If not, the cancellation is viewed as a replacement and not a modification, with a repurchase price of $0.

***Loss Per Common Share***

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The Company accounts for earnings per share pursuant to ASC 260, Earnings per Share, which requires disclosure on the financial statements of "basic" and "diluted" earnings (loss) per share. Basic earnings (loss) per share are computed by dividing net income (loss) by the weighted average number of common shares outstanding for the year. Diluted earnings (loss) per share is computed by dividing net income (loss) by the weighted average number of common shares outstanding plus common stock equivalents (if dilutive) related to stock options and warrants for each year. In periods where the Company has a net loss, all dilutive securities are excluded. Potentially dilutive items outstanding as of September 30, 2025 and 2024 are as follows:

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| | | | | |
|:---|:---|:---|:---|:---|
|  | 2026 | 2026 | 2025 | 2025 |
| Convertible notes |  |  |  |  |
| Series D preferred stock | | 176,470 | | 176,470 |
|  | | 176,470 | | 176,470 |

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On January 1, 2023, the Company adopted ASU 2016-13, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments ("ASC 326"). This standard replaced the incurred loss methodology with an expected loss methodology that is referred to as the current expected credit loss ("CECL") methodology. CECL requires an estimate of credit losses for the remaining estimated life of the financial asset using historical experience, current conditions, and reasonable and supportable forecasts and generally applies to financial assets measured at amortized cost, including loan receivables and held-to-maturity debt securities, and some off-balance sheet credit exposures such as unfunded commitments to extend credit. Financial assets measured at amortized cost will be presented at the net amount expected to be collected by using an allowance for credit losses. The Company adopted this new guidance on January 1, 2023 and the adoption did not have a material impact on the Company's consolidated financial statements and related disclosures.

Management does not believe that any other recently issued, but not yet effective, accounting standards could have a material effect on the accompanying financial statements. As new accounting pronouncements are issued, the Company will adopt those that are

applicable.

***NOTE 3 – LIQUIDITY AND GOING CONCERN***

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The Company generated net losses of $245,958 and $270,344 during the three months ended March 31, 2026 and 2025, respectively, and net cash (used) in operating activities of $(340,593) and $78,773, respectively. As of March 31, 2026, the Company's current liabilities exceeded its current assets by $19,692,440 and had an accumulated deficit of $74,471,258. As of March 31, 2026, the Company had $53,371 of cash.

The Company will require additional funding during the next twelve months to finance the growth of its current operations and achieve its strategic objectives. These factors, as well as the uncertain conditions that the Company faces relative to capital raising activities, create substantial doubt as to the Company's ability to continue as a going concern. The Company is seeking to raise additional capital principally through private placement offerings and is targeting strategic partners in an effort to finalize the development of its products and begin generating revenues. The ability of the Company to continue as a going concern is dependent upon the success of future capital offerings or alternative financing arrangements or expansion of its operations. The accompanying consolidated financial statements do not include any adjustments that might be necessary should the Company be unable to continue as a going concern. Management is actively pursuing additional sources of financing sufficient to generate enough cash flow to fund its operations for twelve months from the issuance date of these consolidated financial statements. However, management cannot make any assurances that such financing will be secured.

***NOTE 4 – BUSINESS ACQUISITIONS***

***Optilan India PVT Ltd and Optilan Communication & Security Systems, Ltd.***

 **

On September 11, 2024, the Company closed a sale agreement with Joint Liquidators, Optilan (UK) Limited incorporated and registered in England and Wales acting by the Joint Liquidators (Seller), purchasing the right, title and interest of shares in Optilan India, PVT Ltd located in Kilpauk, Chennai India and Optilan Communication & Security Systems, Ltd located in Ankara, Turkey along with the applicable intellectual property rights including (1) the user interface for sensor systems, (2) The "Optilan.com" domain name and continued use of the "@optilan.com" email accounts. The Company agreed to pay $65,000 USD for both companies and the intellectual property rights.

The Company has accounted for the purchase using the acquisition method of accounting for business combinations under ASC 805. Accordingly, the purchase price has been allocated to the underlying assets and liabilities in proportion to their respective actual values as of the purchase date. The excess of the consideration transferred over the actual estimated fair values of the net assets acquired was recorded as goodwill. The following table summarizes the acquired assets and assumed liabilities for the actual value of the assets and liabilities recognized at the date of acquisition:

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| | |
|:---|:---|
|  | Consideration |
| Property, Plant & Equipment | $22100 |
| Shares | 42900 |
| Purchase price | $65000 |

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The allocation of the total purchase price to the tangible and intangible assets acquired and liabilities assumed by DarkPulse based on actual values as of September 11, 2024, and measurement period adjustments resulting from the Optilan India fiscal audit period April 2023 – March 2024 which was completed in December 2024 are as follows:

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| | | | |
|:---|:---|:---|:---|
| *(Amounts in US$'s)* | Amounts Recognized as of <br>Acquisition Date | Measurement Period <br>Adjustments | Fair Value |
| Cash | $1637 | $199 | $1836 |
| Accounts receivable | 128392 | 61376 | 189732 |
| Other current assets | 89082 | 56455 | 145536 |
| Property & equipment | 35595 | (2246) | 33349 |
| Goodwill | 181478 | (156563) | 24770 |
| Total assets | 436184 | (40779) | 395223 |
| Assumed liabilities | 371184 | 56755 | 314247 |
| Gain on acquisition | – | (15976) | (15976 |
| Total Consideration for 100% of equity interests | $65000 | $– | $65000 |

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***NOTE 5 – REVENUE***

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The following table is a summary of the Company's timing of revenue recognition for the three months ended March 31, 2026 and 2025:

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| | | |
|:---|:---|:---|
|  | 2026 | 2025 |
| Services and products transferred at a point in time | $3588 | $141018 |
| Services and products transferred over time | 14930 | – |
| Total revenue | $18518 | $141018 |

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The Company disaggregates revenue by source and geographic destination to depict how the nature, amount, timing and uncertainty of revenue and cash flows are affected by economic factors.

Revenue by source consisted of the following for the three months ended March 31, 2026 and 2025:

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| | | |
|:---|:---|:---|
|  | 2026 | 2025 |
| Products | $– | $– |
| Services | 18518 | 141018 |
| Total revenue | $18518 | $141018 |

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Revenue by geographic destination consisted of the following for the three months ended March 31, 2026 and 2025:

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| | | |
|:---|:---|:---|
|  | 2026 | 2025 |
| North America | $2700 | $14200 |
| United Kingdom |  |  |
| Rest of world | 15818 | 126818 |
| Total revenue | $18518 | $141018 |

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***Contracts***

Contract revenue is recognized over time using the cost-to-cost measure of progress for fixed price contracts. The cost-to-cost measure of progress best depicts the continuous transfer of control of goods or services to the customer. The contractual terms provide that the customer compensates the Company for services rendered.

Contract costs include all direct materials, labor and subcontracted costs, as well as indirect costs related to contract performance, such as indirect labor, supplies, tools, repairs and the costs of capital equipment. The cost estimation and review process for recognizing revenue over time under the cost-to- cost method is based on the professional knowledge and experience of the Company's project managers, engineers and financial professionals. Management reviews estimates of total contract transaction price and total project costs on an ongoing basis. Changes in job performance, job conditions and management's assessment of expected variable consideration are factors that influence estimates of the total contract transaction price, total costs to complete those contracts and profit recognition. Changes in these factors could result in revisions to revenue and costs of revenue in the period in which the revisions are determined on a prospective basis, which could materially affect the Company's consolidated results of operations for that period. Provisions for losses on uncompleted contracts are recorded in the period in which such losses are determined.

***Performance Obligations***

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A performance obligation is a contractual promise to transfer a distinct good or service to the customer and is the unit of account under Accounting Standards Codification ("ASC") Topic 606. The transaction price of a contract is allocated to distinct performance obligations and recognized as revenue when or as the performance obligations are satisfied. The Company's contracts often require significant integrated services and, even when delivering multiple distinct services, are generally accounted for as a single performance obligation. Contract amendments and change orders are generally not distinct from the existing contract due to the significant integrated service provided in the context of the contract and are accounted for as a modification of the existing contract and performance obligation. The majority of the Company's performance obligations are completed within one year.

When more than one contract is entered into with a customer on or close to the same date, the Company evaluates whether those contracts should be combined and accounted for as a single contract as well as whether those contracts should be accounted for as more than one performance obligation. This evaluation requires significant judgment and is based on the facts and circumstances of the various contracts, which could change the amount of revenue and profit recognition in a given period depending upon the outcome of the

evaluation.

***Contract Assets and Liabilities***

The Company bill its customers based on contractual terms, including, milestone billings based on the completion of certain phases of the work. Sometimes, billing occurs after revenue recognition, resulting in unbilled revenue, which is accounted for as a contract asset. Sometimes the Company receives advances payments from our customers before revenue is recognized, resulting in deferred revenue, which is accounted for as a contract liability.

Contract assets in the consolidated balance sheets represents costs and estimated earnings in excess of billings, which arise when revenue has been recorded but the amount has not been billed.

Contract assets and liabilities on March 31, 2026 are $0.

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***Variable Consideration***

Transaction pricing for the Company's contracts may include variable consideration, such as unapproved change orders, claims, incentives and liquidated damages. Management estimates variable consideration for a performance obligation utilizing estimation methods that best predict the amount of consideration to which the Company will be entitled. Variable consideration is included in the estimated transaction price to the extent it is probable that a significant reversal of cumulative revenue recognized will not occur when the uncertainty associated with the variable consideration is resolved. Management's estimates of variable consideration and determination of whether to include estimated amounts in transaction price are based on past practices with the customer, specific discussions, correspondence or preliminary negotiations with the customer, legal evaluations and all other relevant information that is reasonably available. The effect of a change in variable consideration on the transaction price of a performance obligation is typically recognized as an adjustment to revenue on a cumulative catch-up basis. To the extent unapproved change orders, claims and liquidated damages reflected in transaction price are not resolved in the Company's favor, or to the extent incentives reflected in transaction price are not earned, there could be reductions in, or reversals of, previously recognized revenue.

***NOTE 6 – ACCOUNTS RECEIVABLE***

Accounts receivable consisted of the following:

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| | | |
|:---|:---|:---|
|  | **March 31,**<br>**2026** | **December 31**<br>**2025** |
| Accounts receivable | $1042513 | $456507 |
| Less: Allowance for doubtful accounts | (632012) | (37295) |
| Accounts receivable, net | $411501 | $419212 |

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**NOTE 7 – PROPERTY AND EQUIPMENT, NET**

Property and equipment, net consisted of the following:

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| | | |
|:---|:---|:---|
|  | **March 31,**<br>**2026** | **December 31,**<br>**2025** |
| Property and equipment | $608266 | $610354 |
| Leasehold improvements | – | – |
| Property and equipment at cost | 608266 | 610354 |
| Less - accumulated depreciation | (61888) | (63907) |
| Property and equipment, net | $546378 | $546447 |

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Depreciation expenses was $0 and $17,254 for the three months ended March 31, 2026 and 2025, respectively.

**NOTE 8 - GOODWILL AND INTANGIBLE ASSETS**

***Patents - Intrusion Detection Intellectual Property***

The Company relies on patent laws and restrictions on disclosure to protect its intellectual property rights. As of March 31, 2026 and 2025, the Company held three U.S. and foreign patents on its intrusion detection technology, which expire in calendar years 2025 through 2034 (depending on the payment of maintenance fees).

The DPTI issued patents cover a System and Method for Brillouin Analysis, a System and Method for Resolution Enhancement of a Distributed Sensor, and a Flexible Fiber Optic Deformation System Sensor and Method. Maintenance of intellectual property rights and the protection thereof is important to our business. Any patents that may be issued may not sufficiently protect the Company's intellectual property and third parties may challenge any issued patents. Other parties may independently develop similar or competing technology or design around any patents that may be issued to the Company. The Company cannot be certain that the steps it has taken will prevent the misappropriation of its intellectual property, particularly in foreign countries where the laws may not protect proprietary rights as fully as in the United States. Further, the Company may be required to enforce its intellectual property or other proprietary rights through litigation, which, regardless of success, could result in substantial costs and diversion of management's attention. Additionally, there may be existing patents of which the Company is unaware that could be pertinent to its business, and it is not possible to know whether there are patent applications pending that the Company's products might infringe upon, since these applications are often not publicly available until a patent is issued or published.

For the three months ended March 31, 2026 and 2025, the Company had patent amortization costs on its intrusion detection technology totaling $12,757 and $12,272, respectively. Patents costs are being amortized over the remaining life of each patent, which is from 7 to 16 years.

The DPTI issued patents cover a System and Method for Brillouin Analysis, a System and Method for Resolution Enhancement of a Distributed Sensor, and a Flexible Fiber Optic Deformation System Sensor and Method. Maintenance of intellectual property rights and the protection thereof is important to our business. Any patents that may be issued may not sufficiently protect the Company's intellectual property and third parties may challenge any issued patents. Other parties may independently develop similar or competing technology or design around any patents that may be issued to the Company. The Company cannot be certain that the steps it has taken will prevent the misappropriation of its intellectual property, particularly in foreign countries where the laws may not protect proprietary rights as fully as in the United States. Further, the Company may be required to enforce its intellectual property or other proprietary rights through litigation, which, regardless of success, could result in substantial costs and diversion of management's attention. Additionally, there may be existing patents of which the Company is unaware that could be pertinent to its business, and it is not possible to know whether there are patent applications pending that the Company's products might infringe upon, since these applications are often not publicly available until a patent is issued or published.

The following is a summary of the DPTI patents as of March 31, 2026 and 2025:

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| | | |
|:---|:---|:---|
|  | March 31<br>2026 | December 31<br>2025 |
| Patents | $904269 | $904269 |
| Less: accumulated amortization  | (765419) | (752662) |
| Patents, net | $138850 | $151607 |

---

Future expected amortization of patents is as follows: As of December 31,

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| | |
|:---|:---|
| 2026 | $51028 |
| 2027 | 51028 |
| Thereafter | 36794 |
| **Total patents** | $138850 |

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**NOTE 9 – ACCOUNTS PAYABLE AND ACCRUED EXPENSES**

Accounts payable and accrued expenses consists of the following as of March 31, 2026 and December 31, 2025:

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| | | |
|:---|:---|:---|
|  | March 31<br>2026 | December 31<br>2025 |
| Accounts payable | $14972980 | $15155264 |
| Accrued liabilities | 3777091 | 3777091 |
| Total accounts payable and accrued expenses | $18750071 | $18643326 |

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**NOTE 10 – DEBT**

 ****

***Notes Payable current – convertible option***

The Company uses the Black-Scholes Model to calculate the derivative value of its convertible debt. The valuation result generated by this pricing model is necessarily driven by the value of the underlying common stock incorporated into the model. The values of the common stock used were based on the price at the date of issue of the debt security as of March 31, 2026 and 2024. In 2024 management determined the expected volatility of 106.90%, a risk-free rate of interest of 5.48%, and contractual lives of the debt of three months. In 2024 management determined the expected volatility of 140.30%, a risk-free rate of interest of 4.73%, and contractual lives of the debt of three months. Management made the determination to use an expected life rather than contractual life for the calculations for the matured debt as of March 31, 2025 and 2024.

As of March 31, 2026 and 2025, there was $208,200 and $208,150 of convertible debt principal outstanding. During the three months ended March 31, 2026 and 2025, $17,333 and $0 of the debt discount was amortized.

The summary of notes payable current – convertible option :

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| | | |
|:---|:---|:---|
|  | **2026** | **2025** |
| Principal Outstanding | $208200 | $208150 |
| Less: unamortized debt discount | (125067) | (27150) |
| Notes payable current – convertible option, net | $83133 | $181000 |

---

The table below details the Company's outstanding notes payable current – convertible option and related derivative

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **Face Amount** | **Face Amount** | **Derivative Liability** | **Derivative Liability** |
|  | **03/31/2026** | **12/31/2025** | **03/31/2026** | **12/31/2025** |
| Vanquish Funding | $263665 | $316098 | $263666 | $316099 |

---

During the three months ended March 31, 2026 and 2025, change in fair value of the derivative liability was $57,235 and $51,723, respectively. The following is a summary of the derivative liability:

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| | |
|:---|:---|
|  | **Derivative Liability** |
| Balances at December 31, 2025 | $316099 |
| Reclassification of convertible note – Vanquish funding | (73747) |
| Issuance of convertible note – Vanquish funding | (65550) |
| Conversion of note – Vanquish funding | 65550 |
| Change in fair value | 126178 |
|  | – |
| Balances at March 31, 2026 | $263667 |

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***Notes Payable***

On March 3, 2026, the Company entered into a promissory note for a principal of $65,550, which was funded on March 6, 2026. The note bears interest at a rate of 15% per annum and matures after six months.

 ****

***Loans Payable***

 ****

The Company's RI and WS subsidiaries have various loans including Small Business Association ("SBA") Economic Injury Disaster Loan ("EIDL') loans, lines of credit and other advances. The loans bear interest with varying rates up to 9.25% per annum. The following is a summary of the loans payable at March 31, 2026 and December 31, 2025:

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| | | |
|:---|:---|:---|
|  | **March 31,**<br>**2026** | **December 31,**<br>**2025** |
| RI - line of credit | $71285 | $71285 |
| RI - Short-term loans | 32402 | 32402 |
| WS - line of credit | 163663 | 163661 |
| WS - Short-term loans | 91600 | 91600 |
| OPT – Optilan Communications & Security Ltd | 828 | 857 |
| &nbsp;&nbsp;&nbsp;Loans payable, current | $359778 | $359805 |
| RI - SBA EIDL | $102597 | $102597 |
| RI - long-term loans | 55506 | 55506 |
| WS - SBA EIDL | 26307 | 26307 |
| WS - long-term loans | – | 97006 |
| &nbsp;&nbsp;&nbsp;Loans payable, non-current | $184410 | $281416 |

---

Certain of the Company's subsidiary debt arrangements are guaranteed by former shareholders of the acquired entity. The Company has not assumed these guarantees and has no legal obligation related to such guarantees**.**

**NOTE 11 – SECURED DEBENTURE**

DPTI issued a convertible Debenture to the University (see Note 1) in exchange for the Patents assigned to the Company, in the amount of

Canadian $1,500,000, or US $1,491,923 on December 16, 2010, the date of the Debenture. On April 24, 2017 DPTI issued a replacement secured term Debenture in the same CAD 1,500,000 amount as the original Debenture. The interest rate is the Bank of Canada Prime overnight rate plus 1% per annum. The Debenture had an initial required payment of CAD 42,000 (US$33,385) due on April 24, 2018 for reimbursement to the University of its research and development costs, and this has been paid. Interest-only maintenance payments are due annually starting after April 24, 2018. Payment of the principal begins on the earlier of (a) three years following two consecutive quarters of positive earnings before interest, taxes, depreciation and amortization, (b) six years from April 24, 2017, or (c) in the event DPTI fails to raise defined capital amounts or secure defined contract amounts by April 24 in the years 2018, 2019, and 2020. The Company has raised funds in excess of the amount required for 2020, 2019 and 2018. Beginning in 2023, The principal repayment amounts will be due quarterly over a six-year period in the amount of Canadian Dollars 62,500. Based on the exchange rate between the Canadian Dollar and the U.S. Dollar on December 31, 2018, the quarterly principal repayment amounts will be US$48,447. The Debenture is secured by the Patents assigned by the University to DPTI by an Assignment Agreement on December 16, 2010. DPTI has pledged the Patents, and granted a lien on them pursuant to an Escrow Agreement dated April 24, 2017, between DPTI and the University.

The Debenture was initially recorded at the $1,491,923 equivalent US Dollar amount of Canadian 1,500,000 as of December 16, 2010, the date of the original Debenture. The liability is being adjusted quarterly based on the current exchange value of the Canadian dollar to the US dollar at the end of each quarter. The adjustment is recorded as unrealized gain or loss in the change of the value of the two currencies during the quarter. The Debenture also includes a provision requiring 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 from April 24, 2018. To date, no royalties have been paid.

For the years ended March 31, 2026 and 2025, the Company recorded interest expense of $3,610 and $3,914, respectively.

As of March 31, 2026, and December 31, 2025, the outstanding balance of the debenture liability totaled $545,388 and $614,756, respectively.

Future minimum required payments over the next three years and thereafter are as follows:

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| | |
|:---|:---|
| Period ending December 31, |  |
| 2026 | $202078 |
| 2027 | 269438 |
| 2025 | 73872 |
| **Total** | $545388 |

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**NOTE 12 – STOCKHOLDERS' EQUITY (DEFICIT)**

***Preferred Stock***

 ****

In accordance with the Company's bylaws, the Company has authorized a total of 2,000,000 shares of preferred stock, par value $0.01 per share, for all classes. As of March 31, 2026 and December 31 2025 respectively, there were 88,335 and 88,335 total preferred shares issued and outstanding for all classes.

***Common Stock***

 ****

In accordance with the Company's bylaws, the Company has authorized a total of 20,000,000,000 shares of common stock, par value $0.0001 per share. As of March 31, 2026 and December 31, 2025, there were 115,191,608 and 90,904,606 common shares issued, respectively.

*2026 Transactions*

On November 6, 2024 the Company entered into an Amendment to the 2023 Equity Financing Agreement with GHS, to which GHS agreed to Purchase $30,000,000 in shares of our Common Stock over the course of 12 months at 92% of the current market price.

The below table of puts from 1/03/2026 through 3/31/2026 were made by the Company under the 2024 EFA during 2025:

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| | | | | |
|:---|:---|:---|:---|:---|
| Date of Put | Number of Common Shares Issued | Total Proceeds, Net of Discounts | Effective Price per Share | Net Proceeds |
| 1/12/2026 | 993358 | 19152 | $0.000640 | 16758 |
| 1/21/2026 | 1018493 | 17518 | $0.000640 | 15237 |
| 1/29/2026 | 921406 | 17838 | $0.000640 | 15538 |
| 2/9/2026 | 1172568 | 19136 | $0.000400 | 16226 |
| 2/20/2026 | 890303 | 12108 | $0.000399 | 9699 |
| 3/9/2026 | 876614 | 10379 | $0.000320 | 8097 |
| 3/17/2026 | 1998326 | 20623 | $0.000240 | 17605 |
| 1/12/2026 | 993358 | 19152 | $0.000240 | 16758 |
| 1/21/2026 | 1018493 | 17518 | $0.000240 | 15237 |
| 1/29/2026 | 921406 | 17838 | $0.000320 | 15538 |

---

The RRA provides that we shall (i) use our best efforts to file with the SEC a Registration Statement within 45 days of the date of the GHS Registration Rights Agreement; and (ii) have the Registration Statement declared effective by the SEC within 30 days after the date the GHS Registration Statement is filed with the SEC, but in no event more than 90 days after the GHS Registration Statement is filed.

***Stock Options***

As of March 31, 2026 and December 2025, the Company had no outstanding stock options.

**NOTE 13 – INCOME TAXES**

The domestic and foreign components of loss before (benefit) provision for income taxes were as follows:

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| | | |
|:---|:---|:---|
|  | **2026** | **2025** |
| Domestic: | $(11676768) | $(11676768) |
| Foreign: | (7133368) | (7133368) |
| **Total income (loss) before income taxes** | $(18810136) | $(18810136) |

---

**Provision for Income Taxes**

Income tax expense (benefit) consisted of the following:

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| | |
|:---|:---|
| Current: |  |
| Federal | $– |
| State |  |
| Foreign |  |
| Total Current | – |
| Deferred: |  |
| Federal | $– |
| State |  |
| Foreign | (5554) |
| Total Deferred | (5554) |
| Total Provision | $5554 |

---

The Company recorded no income tax expense or benefit for the three months ended March 31, 2026 due to the generation of losses and the application of a full valuation allowance against deferred tax assets.

**Effective Tax Rate Reconciliation**

The reconciliation of income taxes computed at the U.S. federal statutory rate to the reported income tax provision is as follows:

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| | | |
|:---|:---|:---|
|  | **Amount** | **% of Pretax Income** |
| Tax benefit at 21% (statutory rate) | $(3952229) | -21.00% |
| State taxes, net of federal benefit |  | –% |
| Foreign rate differential |  | –% |
| Valuation allowance | 3952229 | 21% |
| Other | – | –% |
| Total income tax expense | $– | 0.0% |

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**Deferred tax Assets and Valuation Allowance**

The Company has deferred tax assets primarily related to net operating loss carryforwards.

Management has determined that it is more likely than not that these deferred tax assets will not be realized due to a lack of sufficient positive evidence, including cumulative losses. Accordingly, the Company has recorded a full valuation allowance against its net deferred tax assets.

**Net Operating Losses**

As December 31, 2025, the Company has a net operating loss ("NOL") carryforward of approximately $26,485,942.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· U.S. federal NOLs may be carried forward indefinitely.

· Utilization is limited to 80% of taxable income in future periods

· The NOLs may be subject to limitation under Internal Revenue Cide Section 382 in the event of an ownership change.

**Uncertain Tax Positions**

The Company did not have any material unrecognized tax benefits as of March 31, 2026.

The Company files income tax returns in the United States and foreign jurisdictions. Tax years 2022 through 2025 remain subject to examination.

**Foreign Earnings**

The Company has not recorded a deferred tax liability related to outside basis differences in foreign subsidiaries, as such amounts are not material.

The Company recognizes the financial statement benefit of a tax position only after determining that the relevant tax authority would more likely than not sustain the position following an audit. For tax positions meeting the more-likely-than-not threshold, the amount recognized in the financial statements is the largest benefit that has a greater than 50% likelihood of being realized upon ultimate settlement with the relevant tax authority. The Company recognizes interest accrued on uncertain tax positions as well as interest received from favorable tax settlements within interest expense. The Company recognizes penalties accrued on unrecognized tax benefits within selling, general and administrative expenses. As of March 31, 2026 and 2025 the Company had no uncertain tax positions.

The Company does not anticipate any significant changes to the total amounts of unrecognized tax benefits in the next twelve months. The Company files income tax returns in New Brunswick, Canada, and the U.S. federal, New York, and Delaware and the UK jurisdictions. Tax years 2012 to current remain open to examination by Canadian authorities; the tax year 2020 remains open to examination by U.S. authorities.

**NOTE 14 – SEGMENT INFORMATION**

The Company operates as a single operating and reportable segment. The Company's Chief Operating Decision Maker ("CODM"), the Chief Executive Officer, reviews financial information on a fully consolidated basis. There are no distinct operating segments with separate financial performance metrics, resource allocation decisions, or discrete profit/loss evaluations. Revenue is modest and primarily service-based, with ongoing net losses, all managed holistically.

**NOTE 15 – COMMITMENTS AND CONTINGENCIES**

**Legal Matters**

*Carebourn Capital, L.P. v. DarkPulse, Inc.*

 

On or about January 29, 2021, Carebourn Capital, L.P. ("Carebourn") commenced an action against the Company in Minnesota State Court. Carebourn alleged that the Company was in breach of certain securities purchase agreements and convertible promissory notes sold to Carebourn on or about July 17, 2018 and July 24, 2018.

On or about August 31, 2021, the Company answered Carebourn's complaint and interposed affirmative defenses, including that Carebourn was an unregistered "dealer," as such term is defined in the Securities Exchange Act of 1934 ("Exchange Act") and, therefore, all contracts between the parties arising from or related to the securities purchase agreements and convertible promissory notes sold to Carebourn on or about July 17, 2018 and July 24, 2018 were void pursuant to the Exchange Act. The Company also asserted counterclaims against Carebourn under the Minnesota Securities Act.

On or about April 21, 2023, the State Court ruled in the Company's favor on its motion for partial summary judgment on its Exchange Act defense, holding that (i) Carebourn is a "dealer" under the Exchange Act in violation of the mandatory registration requirement imposed thereby, and (ii) all contracts between the parties are void.

On or about November 17, 2023, the State Court ruled in the Company's favor on its motion for summary judgment on its Minnesota Securities Act counterclaims against Carebourn and awarded damages for Carebourn's violation of Minn. Stat. § 80A.76(d) in the amount of $124,012.91, attorney's fees in the amount of $239,923.33 and costs in the amount of $23,757.24 (or a total award in the amount of $387,693.48).

As of the date hereof, the final judgment remains unsatisfied by Carebourn. DarkPulse intends to continue to exercise all legal rights and remedies available to it to collect the amounts awarded should Carebourn fail to voluntarily pay the same.

*More Capital, LLC v. DarkPulse, Inc. et al*

 

On or about June 29, 2021, More Capital, LLC ("More") commenced an action against the Company in Minnesota State Court. More alleged that the Company was in breach of a certain securities purchase agreement and convertible promissory note sold to More on or about August 20, 2018.

On or about September 3, 2021, the Company answered More's complaint and interposed affirmative defenses, including that More was an unregistered "dealer," as such term is defined in the Securities Exchange Act of 1934 ("Exchange Act") and, therefore, all contracts between the parties arising from or related to the securities purchase agreement and convertible promissory note sold to More on or about August 20, 2018 were void pursuant to the Exchange Act. The Company also asserted counterclaims against More under the Minnesota Securities Act.

On or about December 11, 2023, the Minnesota State Court ruled in the Company's favor on its motion for summary judgment on its (a) Exchange Act defense, holding that (1) More is a "dealer" under the Exchange Act in violation of the mandatory registration requirement imposed thereby, and (ii) all contracts between the parties are void, and (b) Minnesota Securities Act counterclaims against More and awarded damages for More's violation of Minn. Stat. § 80A.76(d) in the amount of $300,809.39, attorney's fees in the amount of $110,029.00 and costs in the amount of $210.25 (or a total award in the amount of $412,048.64).

As of the date hereof, the final judgment remains unsatisfied by More. DarkPulse intends to continue to exercise all legal rights and remedies available to it to collect the amounts awarded should More fail to voluntarily pay the same.

*Carebourn Capital et al v. Standard Registrar and Transfer et al*

 

On or about May 20, 2022, the Carebourn Capital, L.P. ("Carebourn") and More Capital, LLC ("More," and together with Carebourn, the "Noteholders") commenced an action against the Company, certain members of the Company's executive team and board of directors and Standard Registrar and Transfer Company, Inc., the Company's transfer agent, in the United States District Court for the District of Utah. The Noteholders' complaint alleged various causes of action arising from certain securities purchase agreements and convertible promissory notes the Company sold to the Noteholders.

On or about November 1, 2023, the Noteholders moved to dismiss the action.

On or about November 2, 2023, the Company moved for sanctions against the Noteholders and their counsel of record.

On or about December 4, 2023, the Court entered an order granting dismissal of the Noteholders' claims with prejudice. The Court acknowledged that notwithstanding its dismissal of the Noteholders' claims, the Court continues to retain jurisdiction over the Noteholders because of DarkPulse's pending motion for sanctions against the Noteholders and their attorneys.

On September 10, 2024, the Court entered an order granting in part the Company's motion for sanctions against the Noteholders and their counsel of record.

On July 15, 2025, the Court entered an order ordering the Noteholders and their counsel to pay the sum of $70,840 to the Company.

On September 30, 2025, the Court entered Final Judgment in this matter.

On April 24, 2026, the Company filed an Ex Parte Motion for Supplemental Proceedings to aid its collection of the monetary relief awarded in the Final Judgment. Later that same day, the Court entered an order scheduling a virtual hearing for May 14, 2026.

On May 14, 2026, the Court held the virtual hearing. Neither counsel nor any other representative appeared for the Noteholders. Later that same day, the Court entered an order providing that the Company could file a Motion to Enforce the Order for Supplemental Proceedings with a request for either a finding of contempt, bench warrant, or both, against the Noteholders.

On May 18, 2026, the Company filed its Motion to Enforce the Order for Supplemental Proceedings and, therein, made a request for a finding of contempt and issuance of a bench warrant against the Noteholders.

As of the date hereof, the Noteholders and their counsel have not paid the awarded amount to the Company. DarkPulse intends to continue to exercise all legal rights and remedies available to it to collect the amounts awarded.

*DarkPulse, Inc. v. FirstFire Global Opportunities Fund, LLC, and Eli Fireman*

 

On or about December 31, 2021, the Company commenced an action against FirstFire Global Opportunities Fund, LLC ("FirstFire") and its control person, Eli Fireman ("Fireman," and together with FirstFire, the "FirstFire Defendants"), in the United States District Court for the Southern District of New York.

On or about May 5, 2022, the Company amended its complaint against the FirstFire Defendants. The amended complaint alleges that the FirstFire Defendants were liable to the Company for rescission of certain convertible promissory notes and transitions effected thereunder and damages pursuant to the Racketeer Influenced and Corrupt Organizations Act ("RICO").

On or about January 17, 2023, the Court granted the FirstFire Defendants' motion to dismiss the Company's operative pleading. Later on the same day, the Company appealed the Court's decision to the United States Court of Appeals for the Second Circuit ("Second Circuit").

On March 28, 2024, the Second Circuit issued its decision and found that the District Court (a) properly found that the Delaware forum-selection clause was enforceable but, thereafter, (b) improperly made a ruling on the merits of the Company's claims for relief. As a result, the Second Circuit affirmed the District Court's decision in part, vacated in part and remanded the case back to the District Court for transferring to the United States District Court for the District of Delaware.

On September 30, 2025, the Delaware Court granted the FirstFire Defendants' Motion to Dismiss.

On October 14, 2025, the Company filed a Motion for Reconsideration of the Delaware Court's September 30th decision.

As of the date hereof, the Delaware Court has not ruled on DarkPulse's Motion for Reconsideration. The Company remains committed to actively litigating its claims for relief against the FirstFire Defendants.

*DarkPulse, Inc., et al v. Crown Bridge Partners, LLC, et al*

 

On or about September 23, 2022, the Company, Social Life Network, Inc. and Redhawk Holdings Corp. commenced an action against Crown Bridge Partners, LLC ("Crown Bridge") and its control persons, Soheil Ahdoot and Sepas Ahdoot (collectively, the "Crown Bridge Defendants") in the United States District Court for the Southern District of New York. The complaint alleges that the Crown Bridge Defendants are liable to each of the plaintiffs for damages pursuant to the Racketeer Influenced and Corrupt Organizations Act ("RICO").

On or about September 29, 2023, the Court granted the Crown Bridge Defendants' motion to dismiss the plaintiffs' complaint.

On October 23, 2023, the plaintiffs appealed the Court's decision to the United States Court of Appeals for the Second Circuit ("Second Circuit").

On August 19, 2024, the Second Circuit issued its decision and found that the District Court erred when granting the Crown Bridge Defendants' motion to dismiss. As a result, the Second Circuit vacated the District Court's decision and remanded the case back to the District Court for further proceedings consistent with its decision.

On July 16, 2024, the parties submitted final briefing on their respective motions for summary judgment and/or dismissal on the choice-of-law issues to the Court.

On March 12, 2026, the Court issued an order ruling in the Company's favor on the motions for summary judgment on the choice-of-law issues.

On March 26, 2026, the Company filed a Motion for Reconsideration of certain findings made by the Court in its March 12th order that it disagreed with.

As of the date hereof, the Court has not issued a ruling on the March 26th Motion for Reconsideration. The Company remains committed to actively litigating its claims for relief against the Crown Bridge Defendants.

**NOTE 16 – RELATED PARTY TRANSACTIONS**

The Company follows subtopic 850-10 of the FASB Accounting Standards Codification for the identification of related parties and disclosure of related party transactions. Pursuant to Section 850-10-20 the related parties include a) affiliates of the Company; b) Entities for which investments in their equity securities would be required, absent the election of the fair value option under the Fair Value Option Subsection of Section 825-10-15, to be accounted for by the equity method by the investing entity; c) trusts for the benefit of employees, such as pension and profit-sharing trusts that are managed by or under the trusteeship of management; d) principal owners of the Company; e) management of the Company; f) other parties with which the Company may deal if one party controls or can significantly influence the management or operating policies of the other to an extent that one of the transacting parties might be prevented from fully pursuing its own separate interests; and g) Other parties that can significantly influence the management or operating policies of the transacting parties or that have an ownership interest in one of the transacting parties and can significantly influence the other to an extent that one or more of the transacting parties might be prevented from fully pursuing its own separate interests. The financial statements shall include disclosures of material related party transactions, other than compensation arrangements, expense allowances, and other similar items in the ordinary course of business. However, disclosure of transactions that are eliminated in the preparation of consolidated or combined financial statements is not required in those statements. The disclosures shall include: a) the nature of the relationship(s) involved; b) a description of the transactions, including transactions to which no amounts or nominal amounts were ascribed, for each of the periods for which income statements are presented, and such other information deemed necessary to an understanding of the effects of the transactions on the financial statements; c) the dollar amounts of transactions for each of the periods for which income statements are presented and the effects of any change in the method of establishing the terms from that used in the preceding period; and d) amounts due from or to related parties as of the date of each balance sheet presented and, if not otherwise apparent, the terms and manner of settlement.

*Remote Intelligence and Wildlife Specialists Loan Payables*

RI has a loan payable with the former majority shareholder, who is a shareholder in the Company after the acquisition of 60% of RI's membership interests. The loan is unsecured, non-interest bearing and due on demand. As of both years three-months ended 2026 and 2025, the outstanding balance was $226,247.

WS has a loan payable with the former majority shareholder, who is a shareholder in the Company after the acquisition of 60% of WS's membership interests. The loan is unsecured, non-interest bearing and due on demand. As of both years three-month ended 2026 and 2025, the outstanding balance was $135,500.

Optilan India Pvt, Ltd has loans payable with certain employees to support working capital and operating activities. The notes are unsecured, non-interest bearing and due on demand. As of March 31, 2026, and December 31, 2025 amounts due to employees totaled $2,715 and $3,875, respectively.

**NOTE 17 – SUBSEQUENT EVENTS**

On April 2, 2026 the Company issued 2,011,019 shares of common stock for a total consideration of $14,961.98.

On April 14, 2026 the Company issued 1,467,652 shares of common stock for a total consideration of $11,623,80.

On April 27, 2026 the Company issued 3,453,487 shares of common stock for a total consideration of $20,997.20.

On May 15, 2026 the Company issued 3,203,400 shares of common stock for a total consideration of $56,123.56.

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

*This Management's Discussion and Analysis of Financial Condition and Results of Operations contain certain forward-looking statements. Historical results may not indicate future performance. Our forward-looking statements reflect our current views about future events; are based on assumptions and are subject to known and unknown risks and uncertainties that could cause actual results to differ materially from those contemplated by these statements. Factors that may cause differences between actual results and those contemplated by forward-looking statements include, but are not limited to, those discussed in the "Risk Factors" section of our Annual Report on Form 10-K for the year ended December 31, 2025. We undertake no obligation to publicly update or revise any forward-looking statements, including any changes that might result from any facts, events, or circumstances after the date hereof that may bear upon forward-looking statements. Furthermore, we cannot guarantee future results, events, levels of activity, performance, or achievements.*

***Critical Accounting Policies***

The following discussions are based upon our consolidated financial statements and accompanying notes, which have been prepared in accordance with accounting principles generally accepted in the United States.

***Use of Estimates***

The preparation of the Company's financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Significant estimates and assumptions reflected in these financial statements include, but are not limited to, assumptions used to calculate derivative liabilities, revenue recognition and impairment of long-lived assets. The Company bases its estimates on historical experience, known trends and other market-specific or other relevant factors that it believes to be reasonable under the circumstances. On an ongoing basis, management evaluates its estimates when there are changes in circumstances, facts and experience. Changes in estimates are recorded in the period in which they become known. Actual results could differ from those estimates.

***Long-Lived Assets and Goodwill***

The Company accounts for long-lived assets in accordance with the provisions of ASC 360-10-35, *Property, Plant and Equipment, Impairment or Disposal of Long-lived Assets.* This accounting standard requires that long-lived assets be reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to future undiscounted net cash flows expected to be generated by the asset. If the carrying amount of an asset exceeds its estimated future cash flows, an impairment charge is recognized by the amount by which the carrying amount of the asset exceeds the fair value of the asset.

Indefinite-lived intangible assets established in connection with business combinations consist of the tradename. The impairment test for identifiable indefinite-lived intangible assets consists of a comparison of the estimated fair value of the intangible asset with its carrying value. If the carrying value exceeds its fair value, an impairment loss is recognized in an amount equal to that excess.

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The Company accounts for goodwill and intangible assets in accordance with ASC 350, *Intangibles – Goodwill and Other*. Goodwill represents the excess of the purchase price of an entity over the estimated fair value of the assets acquired and liabilities assumed. ASC 350 requires that goodwill and other intangibles with indefinite lives be tested for impairment annually or on an interim basis if events or circumstances indicate that the fair value of an asset has decreased below its carrying value. This guidance simplifies the accounting for goodwill impairment by removing Step 2 of the goodwill impairment test, which requires a hypothetical purchase price allocation. The quantitative impairment test calculates any goodwill impairment as the difference between the carrying amount of a reporting unit and its fair value, but not to exceed the carrying amount of goodwill. It is our practice, at a minimum, to perform a qualitative or quantitative goodwill impairment test in the fourth quarter every year. The Company has one reporting unit it evaluates during its impairment test.

In determining the fair value of the reporting unit, management estimated the price that would be received to sell the reporting unit as a whole in an orderly transaction between market participants at the measurement date. This includes reviewing market comparables such as revenue multipliers and assigning certain assets and liabilities to the reporting units, such as the respective working capital deficits of each entity and debt obligations that would need to be assumed by a market participant buyer in an orderly transaction. The Company calculated the carrying amounts of the reporting unit by utilizing the entities' assets and liabilities at March 31, 2026, including the carrying value of the identifiable intangible assets and goodwill assigned to the respective reporting unit.

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***Revenue Recognition***

The Company's revenues are generated primarily from the sale of our services, which consist primarily of advanced technology solutions for integrated communications and security systems, as well as habitat management. The Company's sales of products were primarily generated from our TJM subsidiaries are now generated from the Company's subsidiary Optilan India Pvt Ltd. Sales of products and services are separate from one another. At contract inception, we assess the goods and services promised in the contract with customers and identify a performance obligation for each. To determine the performance obligation, we consider all products and services promised in the contract regardless of whether they are explicitly stated or implied by customary business practices. The timing of satisfaction of the performance obligation is not subject to significant judgment. We measure revenue as the amount of consideration expected to be received in exchange for transferring goods and services. We recognize service revenues as the performance obligations are met, which is generally as milestones are satisfied over time. We generally recognize product revenues at the time of shipment, provided that all other revenue recognition criteria have been met.

The Company recognizes revenue when its customer obtains control of promised goods or services, in an amount that reflects the consideration which we expect to receive in exchange for those goods or services. To determine revenue recognition for arrangements that the Company determines are within the scope of ASC 606, we perform the following five steps: (i) identify the contract(s) with a customer; (ii) identify the performance obligations in the contract; (iii) determine the transaction price; (iv) allocate the transaction price to the performance obligations in the contract; and (v) recognize revenue when (or as) we satisfy a performance obligation. The five-step model is applied to contracts when it is probable that we will collect the consideration we are entitled to in exchange for the goods or services transferred to the customer. At contract inception, once the contract is determined to be within the scope of ASC 606, we assess the goods or services promised within each contract and determine those that are performance obligations and assess whether each promised good or service is distinct. We then recognize revenue in the amount of the transaction price that is allocated to the respective performance obligation when (or as) the performance obligation is satisfied.

The Company considers each individual sale of service contract to be its own performance obligation. Services in the contract are highly interdependent and interrelated, and the successful completion of each milestone is necessary for the overall success of the contract. Therefore, each milestone is not separately identifiable from other promises in the contract, and not distinct and ultimately not individual performance obligations.

The Company records revenue over time using the output measure as it is the most faithful depiction of an entity's performance because it directly measures the value of the goods and services transferred to the customer. The Company utilizes the Right to Invoice for these contracts, as the pricing structure is based on various milestones that are specified in the contract. These milestones include Construction Phase Plan, Start of the construction phase, installation phase, site surveys, fiber splicing, recoveries, and closeouts. There are specified payments associated with these milestones in the contract, and the value allocated is commensurate with work done. In the event that there are advances such as upfront retainers and not based on the value, those are recorded as contract liabilities.

In accordance with ASU No. 2016-12, *Revenue from Contracts with Customers (Topic 606): Narrow-Scope Improvements and Practical Expedient*, which is to (1) clarify the objective of the collectability criterion for applying paragraph 606-10-25-7; (2) permit an entity to exclude amounts collected from customers for all sales (and other similar) taxes from the transaction price; (3) specify that the measurement date for noncash consideration is contract inception; (4) provide a practical expedient that permits an entity to reflect the aggregate effect of all modifications that occur before the beginning of the earliest period presented when identifying the satisfied and unsatisfied performance obligations, determining the transaction price, and allocating the transaction price to the satisfied and unsatisfied performance obligations; (5) clarify that a completed contract for purposes of transition is a contract for which all (or substantially all) of the revenue was recognized under legacy GAAP before the date of initial application, and (6) clarify that an entity that retrospectively applies the guidance in Topic 606 to each prior reporting period is not required to disclose the effect of the accounting change for the period of adoption. The amendments of this ASU are effective for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. There was no impact as a result of adopting this ASU on the financial statements and related disclosures. Based on the terms and conditions of the product arrangements, the Company believes that its products and services can be accounted for separately as its products and services have value to the Company's customers on a stand-alone basis. When a transaction involves more than one product or service, revenue is allocated to each deliverable based on its relative fair value; otherwise, revenue is recognized as products are delivered or as services are provided over the term of the customer contract.

***Derivative Financial Instruments***

The Company evaluates the embedded conversion feature within its convertible debt instruments under ASC 815-15 and ASC 815-40 to determine if the conversion feature meets the definition of a liability and, if so, whether to bifurcate the conversion feature and account for it as a separate derivative liability. For derivative financial instruments that are accounted for as liabilities, the

derivative instrument is initially recorded at its fair value and is then re-valued at each reporting date, with changes in the fair value reported in the statements of operations. For stock-based derivative financial instruments, the Company uses a lattice model, in accordance with ASC 815-15*, Derivative and Hedging,* to value the derivative instruments at inception and on subsequent valuation dates. The classification of derivative instruments, including whether such instruments should be recorded as liabilities or as equity, is evaluated at the end of each reporting period. Derivative instrument liabilities are classified in the balance sheet as current or non-current based on whether net-cash settlement of the derivative instrument could be required within 12 months after the balance sheet date.

***Business Overview***

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DarkPulse, Inc., a Delaware corporation (the "**Company**" or "**DarkPulse**"), is a technology focused on the manufacture, sale, installation, and monitoring of laser sensing systems based on its patented BOTDA dark-pulse sensor technology. The Company develops, markets, and distributes a full suite of engineering, monitoring, installation and security management solutions for critical infrastructure/key resources to both industries and governments. Coupled with our patented BOTDA technology, DarkPulse provides its customers a comprehensive data stream of critical metrics for assessing the health and security of their infrastructure. Our systems provide rapid, precise analysis and responsive activities predetermined by the end-user customer. The Company's activities since inception have consisted of developing various solutions, obtaining patents and trademarks related to its technology, raising capital, acquisition of companies deemed to expand global operations and/or capabilities, creating key partnerships to expand our suite of products and services. Our activities have evolved to a sales-focused mission since the successful completion of our BOTDA system.

Headquartered in Scottsdale, Arizona, DarkPulse is a globally-based technology company with presence through its subsidiaries in the United States, Canada, India, Turkey, and the United Arab Emirates. In addition to the Company's BOTDA systems, through a series of strategic acquisitions the Company offers the manufacture, sale, installation, and monitoring of laser sensing systems, oil and gas pipeline leak detection, physical security services, telecommunications and satellite communications services, artificial intelligence-based camera systems, railway monitoring services, drone and rover systems, and Big Data as a Service ("**BDaaS**"). The Company is focused on expanding services through acquisitions and partnerships to address global infrastructure and critical environmental resource challenges.

DarkPulse offers a full suite of engineering and environmental solutions that provide safety and security infrastructure projects. The sensing and monitoring capabilities offered by DarkPulse operate in the air, land, sea. We believe 0ur patented technology provides rapid, precise analysis to protect and safeguard oil and gas pipelines above or below ground, physical security countermeasures, mining operations, and other critical infrastructure/key resources subject to vulnerability or risk. Our patented dark-pulse based BOTDA distributed fiber sensing system is best in class. We are able to monitor areas in around critical infrastructure buried or above ground including pipelines 100km or more in length and/ or localized pipes as small as eight CM DIA, detecting internal anomalies before catastrophic failure. We are developing an intelligent rock bolt to prevent causalities and fatalities in mining operations and include a real time sensor system that can detect the location and movement of personnel and equipment throughout a mining operation. We monitor airflow, air quality, temperature, seismic events, etc. Our sensors cover extended areas, protecting an area from intrusion by detecting events at any location along the sensing cable. Working safely every day is our first core value and employees at DarkPulse and our subsidiary companies are recognized experts in their fields, providing comprehensive services for all our clients' needs.

***Our Subsidiaries***

Our subsidiaries consist of: DarkPulse UK Ltd,, a company headquartered in, United Kingdom, DarkPulse Technologies FZCO whose focus is in engineering, telecommunications, energy, rail, critical network infrastructure, pipeline integrity systems, renewables and security; Optilan India, PVT Ltd. located in Kilpauk, Chennai India and Optilan Communication & Security Systems, Ltd located in Ankara, Turkey which provides project engineering & design, system provisioning and contract bid services globally and throughout Europe. TerraData Unmanned, PLLC, a company headquartered in Florida who custom manufactures NDAA compliant drones and unmanned ground crawlers to meet the needs of its customers.

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***Current Operations***

As a result of the liquidation of Optilan, UK Ltd our current operations now include: DarkPulse, Inc., based in Scottsdale, Arizona; DarkPulse Technologies FZCO in Dubai, UAE; ; Terradata Unmanned PLLC, based in Florida; Optilan India Pvt Ltd based in Navi-Mumbai and Optilan Communications & Security Systems Ltd, based in Ankara Turkey. Remote Intelligence, LLC and Wildlife Specialists, LLC are no longer providing services as a result of redundant service offerings that are now being offered by TerraData Unmanned. DarkPulse Manufacturing Inc. (formerly TJM Electronics West, Inc.) is no longer providing products or services as a result of those products and services now being contracted through Sanmina Corp (NASDAQ: SANM).

We have recently completed development activities of our Gen. 3 dark-pulse BOTDA system and are pending a Purchase Order issuance to our contract manufacturer Sanmina Corp for full manufacturing of our patented BOTDA sensor system hardware. We currently expect to submit a Purchase Order to Sanmina Corp during Q2 2026, subject to the availability of sufficient working capital, completion of final engineering specifications, and other conditions. There can be no assurance that we will submit such Purchase Order on the anticipated timeline, or at all. This expectation constitutes a forward-looking statement subject to the cautionary factors described herein. We base our claims related to the technologies capabilities from both experimental data obtained during the creation of the patent as well as real world POC deployments beginning in 2009 with most recent deployment in 2021. There are also papers submitted and published via IEEE and available online. The system components include: patented hardware containing various electronic components and lasers, proprietary software utilized to collect analog data and convert that data to digital data, and a user interface utilizing proprietary software as well as Unity game engine for the VR capability component of the User Interface. Deployment of the system begins with engineering design based on Scope requirements and installation environment. Fiber optic cable is then installed into the medium to be monitored. The system is then provisioned remotely by optical engineers.

Our business model, as it relates to hardware sales, is "Just in Time" and maintaining a very low inventory. Projects require several weeks of installation, design, and engineering followed by the installation of fiber optic cables. The average time required to build hardware units is less than the time needed for the engineering and fiber installation process. To date, we have yet to sell our patented BOTDA dark-pulse sensor system and we have built two units for demonstration of the system to potential customers. We are now able to sell our patented technology and related services. We currently have no commitments to buy our units.

On April 28, 2023 we entered an Equity Financing Agreement, which was superseded by the Amended Equity Financing Agreement dated June 13, 2023, which was then superseded by the Second Amended Equity Financing Agreement dated July 10, 2023, which was then superseded by the Third Amended Equity Financing Agreement dated August 14, 2024, as further amended by Amendment No. 1 to the Third Amended Equity Financing Agreement dated July 21, 2025 (as so amended, the "EFA"), and the Amended and Restated Registration Rights Agreement dated July 9, 2025 (the "**Registration Rights Agreement**"), with GHS Investments LLC ("GHS"), pursuant to which GHS agreed to purchase up to $30,000,000 in shares of our Common Stock, from time to time over the course of 30 months after effectiveness of a registration statement on Form S-1 of the underlying shares of Common Stock.

The Registration Rights Agreement provides that we shall (i) use our best efforts to file with the SEC a registration statement within 15 days of the date of the Registration Rights Agreement; and (ii) have the registration statement declared effective by the SEC within 30 days after the date the registration statement is filed with the SEC, but in no event more than 90 days after the registration statement is filed.

Below is a table of all puts made by the Company under the EFA during the year ended December 31, 2025:

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| | | | | |
|:---|:---|:---|:---|:---|
| **Date of Put** | **Number of Common <br> Shares Issued** | **Total Proceeds,**<br> **Net of <br> Discounts ($)** | **Effective Price <br> per Share ($)** | **Net Proceeds ($)** |
| 1/6/2025 | 183202 | 23450 | 0.000640 | 20783 |
| 1/14/2025 | 256077 | 32778 | 0.000640 | 29458 |
| 1/24/2025 | 395308 | 50619 | 0.000640 | 46050 |
| 1/30/2025 | 695043 | 55603 | 0.000400 | 50686 |
| 2/7/2025 | 622323 | 49786 | 0.000399 | 45276 |
| 2/18/2025 | 657228 | 42063 | 0.000320 | 38093 |
| 2/28/2025 | 710373 | 34098 | 0.000240 | 30686 |
| 3/10/2025 | 663499 | 31848 | 0.000240 | 25594 |
| 3/18/2025 | 1122820 | 53895 | 0.000240 | 40098 |
| 3/28/2025 | 1019222 | 65230 | 0.000240 | 59364 |
| 4/4/2025 | 653076 | 41797 | 0.000320 | 37846 |
| 4/14/2025 | 895072 | 42963 | 0.000240 | 38931 |
| 4/23/2025 | 906671 | 58027 | 0.000320 | 52940 |
| 5/1/2025 | 1126922 | 46844 | 0.000249 | 42540 |
| 5/9/2025 | 941402 | 43273 | 0.000190 | 39219 |
| 5/21/2025 | 949987 | 30400 | 0.000160 | 27247 |
| 5/30/2025 | 1127583 | 36083 | 0.000160 | 32532 |
| 6/10/2025 | 1130457 | 54262 | 0.000240 | 49439 |
| 6/20/2025 | 917188 | 44025 | 0.000236 | 36912 |
| 7/2/2025 | 1157985 | 37055 | 0.000160 | 30744 |
| 7/21/2025 | 1368561 | 43793 | 0.000160 | 37732 |
| 8/22/2025 | 426994 | 13664 | 0.000160 | 11067 |
| 9/4/2025 | 537621 | 17204 | 0.000160 | 14200 |
| 9/12/2025 | 428311 | 13706 | 0.000160 | 9939 |
| 9/23/2025 | 552036 | 17665 | 0.000149 | 13106 |
| 10/1/2025 | 572888 | 18333 | 0.000160 | 13640 |
| 10/10/2025 | 576942 | 18462 | 0.000160 | 13744 |
| 10/28/2025 | 959040 | 17570 | 0.018320 | 15213 |
| 11/11/2025 | 952716 | 12576 | 0.013200 | 10648 |
| 11/28/2025 | 1053329 | 10449 | 0.009920 | 8624 |
| 12/9/2025 | 1677132 | 50582 | 0.030160 | 45909 |
| 12/18/2025 | 1246067 | 24822 | 0.019920 | 22006 |
| Total | 26498067 | 1132925 |  | 993542 |

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Below is a table of all puts made by the Company under the EFA during the quarter ended March 31, 2026:

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| | | | | |
|:---|:---|:---|:---|:---|
| **Date of Put** | **Number of Common <br> Shares Issued** | **Total Proceeds,<br> Net of <br> Discounts** | **Effective Price <br> per Share** | **Net Proceeds** |
| 1/2/26 | 1109837 | $17135 | $0.015440 | $14879 |
| 1/12/26 | 993358 | $19151 | $0.019280 | $16757 |
| 1/21/26 | 1081493 | $17518 | $0.017200 | $15237 |
| 1/29/26 | 921406 | $17838 | $0.019360 | $15538 |
| 2/9/26 | 1172568 | $19136 | $0.016320 | $16226 |
| 2/20/26 | 890303 | $12108 | $0.013600 | $9698 |
| 3/9/26 | 876614 | $10379 | $0.011840 | $8096 |
| 3/17/26 | 1998326 | $20622 | $0.010320 | $17605 |
|  | 9043905 | $133887 |  | $114036 |

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***Going Concern Uncertainty***

As shown in the accompanying financial statements, we generated net losses of $245,958 and $270,344 for the three-months ended March 31, 2026 and 2025, respectively, and net cash (used in) in operating activities of $(340,593) and $78,774, respectively. As of March 31, 2026, the Company's current liabilities exceeded its current assets by $19,692,440 and has an accumulated deficit of $74,471,258. As of March 31, 2026, the Company had $53,371 of cash. The Optilan (UK) Limited liquidation is ongoing; the Company is an unsecured creditor with approximately $19.4 million in intercompany payables due from Optilan (UK), which have been fully impaired. There can be no assurance that the Company will recover any portion of these amounts.

We will require additional funding to finance the growth of our operations and achieve our strategic objectives. These factors, as relative to capital raising activities, create substantial doubt as to our ability to continue as a going concern. We are seeking to raise additional capital and are targeting strategic partners in an effort to accelerate the sales and marketing of our products and begin generating revenues. Our ability to continue as a going concern is dependent upon the success of future capital offerings or alternative financing arrangements, expansion of our operations and generating sales. The accompanying financial statements do not include any adjustments that might be necessary should we be unable to continue as a going concern. Management is actively pursuing additional sources of financing sufficient to generate enough cash flow to fund its operations; however, management cannot make any assurances that such financing will be secured.

***Foreign Currency Risk***

In general, the Company is a net receiver of currencies other than the U.S. dollar. Accordingly, changes in exchange rates, and in particular a strengthening of the U.S. dollar, will negatively affect the Company's net sales and gross margins as expressed in U.S. dollars. There is a risk that the Company will have to adjust local currency product pricing due to competitive pressures when there has been significant volatility in foreign currency exchange rates.

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***Results of Operations***

<u>For the Three-Months Ended March 31, 2026 and 2025</u>

*Revenues*

The Company's revenues are generated primarily from the sale of our services, which consist primarily of advanced technology solutions for integrated communications and security systems, as well as habitat management. The Company's sales of products are primarily generated from our subsidiary Optilan India Pvt Ltd and TerraData Unmanned, PLLC.

The Company's future revenues will be derived from the following, among other things.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· promote adoption if our patented technology through agency and distribution agreements;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· cross-selling existing customer with products from other subsidiaries;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· provide a wide array of diverse services, including enhanced or additional services that may become available in the future due to, among other things, advances in technology or improvements in our infrastructure;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· pursue acquisitions of additional assets, in each case if available at attractive prices; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· market our products and services to new customers.

While the Company recognizes revenue when its customer obtains control of promised goods or services, in an amount that reflects the consideration which we expect to receive in exchange for those goods or services, the Company also maintains multiple contracts for future material revenues, including part of framework contracts that will be recognized during future reporting periods.

For the three-months ended March 31, 2026, total revenues were $18,518 compared to $141,018 for the three-months ended March 31, 2025, a decrease] of $122,500. The decrease was due to lower revenues from Optilan India. The breakdown of revenues by entity for the three-months ended March 31, 2026 and 2025 is as follows:

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| | | |
|:---|:---|:---|
|  | **Three-Months Ended March 31** | **Three-Months Ended March 31** |
|  | **2026** | **2025** |
| Optilan |  |  |
| Wildlife |  |  |
| TJM |  |  |
| Remote Intelligence |  |  |
| TerraData | $2700 | $14200 |
| DarkPulse |  |  |
| Optilan India | 15818 | 126818 |
|  | $18518 | $141018 |

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*Cost of Revenues and Gross Margin*

For the three-months ended March 31, 2026, cost of revenues was $10,771 compared to $103,917 for the three-months ended March 31, 2025, a decrease of $93,146. The decrease was attributable to lower revenue generation from Optilan India.

Gross profit for the three-months ended March 31, 2026 was $7,747 with a gross profit of 42% compared to $37,101 for the three-months ended March 31, 2025 with a gross profit of 26%.

*Operating Expenses*

Selling, general and administrative expenses for the three-months ended March 31, 2026 decreased by $17,694 to $127,131 from $144,825 for the three-months ended March 31, 2025.

Salaries, wages and payroll taxes for the three-months ended March 31, 2026 decreased to $226,251from $237,005 for the three-months ended March 31, 2025. The decrease was a result of a cumulative accrual adjustment.

Professional fees for the three-months ended March 31, 2026 decreased by $16,369 to $30,904 from $47,237 for the three-months ended March 31, 2025. The decrease is attributable to reduced legal and consulting fees

Depreciation and amortization for the three-months ended March 31, 2026 decreased to $12,757 from $30,011 for the three-months ended March 31, 2025. The decrease is a result of disposition of certain assets.

 

*Other Income (Expense)*

For the three-months ended March 31, 2026, we had other income of $147,572 compared to $151,669 during the three-months ended March 31, 2025. The variance is attributable to lower interest expense, change in fair market of derivatives and a gain on exceptional costs.

*Net Loss from Continuing Operations*

As a result of the above, we reported a net loss of continuing operations of $245,958 and $270,344 for the three-months ended March 31, 2026 and 2025, respectively.

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***Liquidity and Capital Resources***

We require working capital to fund the continued development and commercialization of our proprietary fiber optic sensing devices, and for operating expenses. During the three-months ended March 31, 2026, we had $135,222 in cash proceeds from our equity financings compared to $439,370 in the three-months ended March 31, 2025.

As of March 31, 2026, we had cash of $53,371 compared to $107,785 as of March 31, 2025. We currently do not have sufficient cash to fund our operations for the next 12 months and we will require working capital to complete development, testing and marketing of our products and to pay for ongoing operating expenses. We anticipate adding consultants for technology development and the corresponding operations of the Company, but this will not occur prior to obtaining additional capital. Management is currently in the process of looking for additional investors. Currently, loans from banks or other lending sources for lines of credit or similar short-term borrowings are not available to us. As of March 31, 2026, our current liabilities exceeded our current assets by $19,692,440.

Several of our significant operating subsidiaries have borrowed funds from DarkPulse. The terms of the instruments governing the indebtedness of these borrowers or borrowing groups may restrict our ability to access their accumulated cash. In addition, our ability to access the liquidity of these and other subsidiaries may be limited by tax, legal and other considerations.

Our executive officers and our Board of Directors review our sources and potential uses of cash in connection with our annual budgeting process and whenever circumstances warrant. Generally speaking, our principal funding source is cash from financing activities, and our principal cash requirements include loans to our operating subsidiaries, operating expenses, and capital expenditures.

***Cash Flows from Operating Activities***

During the three-months ended March 31, 2026, net cash used in operating activities was $340,593 resulting from our net loss of $245,958, partially offset by non-cash charges of ($83,658). In 2025, we had net cash provided in operating activities of $78,774 resulting from our net loss of $270,344, partially offset by non-cash charges of $236,326 primarily driven by our gain on forgiveness of debt and termination of lease.

***Cash Flows from Investing Activities***

During the three-months ended March 31, 2026, we had net cash provided/(used) in investing activities of $0.

During the three-months ended March 31, 2025, we had net cash provided in investing activities of $19,675.

***Cash Flows from Financing Activities***

During the three-months ended March 31, 2026, net cash provided by financing activities was $111,880 which was primarily comprised of proceeds from the issuance of common stock of $135,222 and proceeds from convertible notes $50,000, offset by repayments of loans payable.

During the three-months ended March 31, 2025, net cash provided by financing activities was $318,481 which was primarily comprised of proceeds from the issuance of common stock of $439,370 offset by repayments of loans payable.

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***Factors That May Affect Future Results***

Management's Discussion and Analysis contains information based on management's beliefs and forward-looking statements that involve a number of risks, uncertainties, and assumptions. There can be no assurance that actual results will not differ materially

from the forward-looking statements as a result of various factors, including but not limited to, our ability to obtain the equity funding or borrowings necessary to market and launch our products, our ability to successfully serially produce and market our products; our success establishing and maintaining collaborative licensing and supplier arrangements; the acceptance of our products by customers; our continued ability to pay operating costs; our ability to meet demand for our products; the amount and nature of competition from our competitors; the effects of technological changes on products and product demand; and our ability to successfully adapt to market forces and technological demands of our customers.

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***Off-Balance Sheet Arrangements***

We do not have any off-balance sheet arrangements that have or are reasonably likely to have a current or future material effect on our consolidated financial condition, changes in financial condition, revenues or expenses, results of operations, liquidity capital expenditures or capital resources.

***Recent Accounting Pronouncements***

In November 2024 the FASB issued ASU 2024-03 Income Statement — Reporting Comprehensive Income (Subtopic 2220-40) which intends to improve the disclosures about a public business entity's expenses and address requests from investors for more detailed information about the types of expenses (including purchases of inventory, employee compensation, depreciation, amortization, and depletion) in commonly presented expense captions (such as cost of sales, SG&A, and research and development).

In November 2024 the FASB issued ASU 2024-04 Debt with Conversion and Other Options (Subtopic 470-20): Induced Conversions of Convertible Debt Instruments to improve and clarify the requirements for determining whether certain settlements of convertible debt instruments should be accounted for as an induced conversion.

In March 2024 the FASB issued ASU 2024-01, Compensation – Stock Compensation Topic (718) contains amendments by adding an illustrative example to demonstrate how an entity should apply the scope guidance in paragraph 718- 10-15-3 to determine whether profits interest and similar awards improve the understandability of paragraph 718-10-15-3 apply to all entities that enter into share-based payment transactions.

In March 2024 the FASB issued ASU 2024-02 Codification Improvements which contains amendments to the Codification that remove references to various FASB Concepts Statements. The Board has a standing project on its agenda to address suggestions received from stakeholders on the Accounting Standards Codification and other incremental improvements to generally accepted accounting principles (GAAP). This effort facilitates Codification updates for technical corrections such as conforming amendments, clarifications to guidance, simplifications to wording or the structure of guidance, and other minor improvements. The resulting amendments are referred to as Codification improvements.

**Item 3. Quantitative and Qualitative Disclosures About Market Risk**

As a smaller reporting company, the Company has elected not to provide the disclosure required by this item.

**Item 4. Controls and Procedures**

***Disclosure Controls and Procedures***

We have established disclosure controls and procedures that are designed to ensure that information required to be disclosed in reports filed or submitted under the Securities Exchange Act of 1934, as amended (the "**Exchange Act**"), is recorded, processed, summarized and reported within the time periods specified in the rules and forms of the Securities and Exchange Commission and, as such, is accumulated and communicated to our Chief Executive Officer, Dennis O'Leary, who serves as our principal executive officer and principal financial officer, as appropriate to allow timely decisions regarding required disclosure. Mr. O'Leary evaluated the effectiveness of our disclosure controls and procedures, as defined in Rule 13a-15(e) of the Exchange Act, as of March 31, 2026. Based on his evaluation, Mr. O'Leary concluded that the Company's disclosure controls and procedures were not effective as of March 31, 2026.

***Changes in Internal Controls***

There were no changes in our internal control over financial reporting that occurred during the fiscal quarter covered by this report that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

We have taken limited steps to meet our Sarbanes-Oxley (SOX) Section 404 compliance requirements and implement procedures to assure financial reports are prepared in accordance with generally accepted accounting principles (GAAP) and therefore fairly represent the results and condition of the Company. We are not materially compliant with the Section 404 requirements due to economic constraints.

**PART II—OTHER INFORMATION**

**Item 1. Legal Proceedings**

*Carebourn Capital, L.P. v. DarkPulse, Inc.*

On or about January 29, 2021, Carebourn Capital, L.P. ("**Carebourn**") commenced an action against the Company in Minnesota State Court. Carebourn alleged that the Company was in breach of two convertible promissory notes sold to Carebourn on or about July 17, 2018 and July 24, 2018. Thereafter, the Company answered Carebourn's complaint and asserted counterclaims under the Minnesota Securities Act.

On or about November 17, 2023, the State Court ruled in the Company's favor on, among other things, its counterclaim for damages pursuant to Minnesota Securities Act and awarded the Company damages in the amount of $124,012.91, attorney's fees in the amount of $239,923.33 and costs in the amount of $23,757.24 (or a total award in the amount of $387,693.48).

As of the date hereof, the final judgment remains unsatisfied by Carebourn. DarkPulse intends to continue to exercise all legal rights and remedies available to it to collect the amounts awarded should Carebourn fail to voluntarily pay the same.

 

*More Capital, LLC v. DarkPulse, Inc. et al*

On or about June 29, 2021, More Capital, LLC ("**More**") commenced an action against the Company in Minnesota State Court. More alleged that the Company was in breach of a certain securities purchase agreement and convertible promissory note sold to More on or about August 20, 2018. Thereafter, the Company answered More's complaint and asserted counterclaims under the Minnesota Securities Act.

On or about December 11, 2023, the Minnesota State Court ruled in the Company's favor on, among other things, its counterclaim for damages pursuant to Minnesota Securities Act and awarded the Company damages in the amount of $300,809.39, attorney's fees in the amount of $110,029.00 and costs in the amount of $210.25 (or a total award in the amount of $412,048.64).

As of the date hereof, the final judgment remains unsatisfied by More. DarkPulse intends to continue to exercise all legal rights and remedies available to it to collect the amounts awarded should More fail to voluntarily pay the same.

*Carebourn Capital et al v. Standard Registrar and Transfer et al*

On or about May 20, 2022, the Carebourn Capital, L.P. ("**Carebourn**") and More Capital, LLC ("**More**," and together with Carebourn, the "**Noteholders**") commenced an action against the Company, certain members of the Company's executive team and board of directors and Standard Registrar and Transfer Company, Inc., the Company's transfer agent, in the United States District Court for the District of Utah. The Noteholders' complaint alleged various causes of action arising from certain securities purchase agreements and convertible promissory notes the Company sold to the Noteholders.

On or about November 1, 2023, the Noteholders moved to dismiss the action.

On or about November 2, 2023, the Company moved for sanctions against the Noteholders and their counsel of record.

On or about December 4, 2023, the Court entered an order granting dismissal of the Noteholders' claims with prejudice. The Court acknowledged that notwithstanding its dismissal of the Noteholders' claims, the Court continues to retain jurisdiction over the Noteholders because of DarkPulse's pending motion for sanctions against the Noteholders and their attorneys.

On September 10, 2024, the Court entered an order granting in part the Company's motion for sanctions against the Noteholders and their counsel of record.

On July 15, 2025, the Court entered an order ordering the Noteholders and their counsel to pay the sum of $70,840 to the Company.

On September 30, 2025, the Court entered Final Judgment in this matter.

As of the date hereof, the Noteholders and their counsel have not paid the awarded amount to the Company. DarkPulse intends to continue to exercise all legal rights and remedies available to it to collect the amounts awarded.

 

*DarkPulse, Inc. v. FirstFire Global Opportunities Fund, LLC, et al*

On or about December 31, 2021, the Company commenced an action against FirstFire Global Opportunities Fund, LLC ("**FirstFire**") and its control person, Eli Fireman ("**Fireman**," and together with FirstFire, the "**FirstFire Defendants**"), in the United States District Court for the Southern District of New York.

On or about May 5, 2022, the Company amended its complaint against the FirstFire Defendants. The amended complaint alleges that the FirstFire Defendants were liable to the Company for rescission of certain convertible promissory notes and transitions effected thereunder and damages pursuant to the Securities Exchange Act of 1934 ("**Exchange Act**") and Racketeer Influenced and Corrupt Organizations Act ("**RICO**").

On or about January 17, 2023, the Court granted the FirstFire Defendants' motion to dismiss the Company's operative pleading. Later during the same day, the Company appealed the Court's decision to the United States Court of Appeals for the Second Circuit ("**Second Circuit**").

On March 28, 2024, the Second Circuit issued its decision and found that the District Court

(a) properly found that the Delaware forum-selection clause was enforceable but, thereafter,

(b) improperly made a ruling on the merits of the Company's claims for relief. As a result, the Second Circuit affirmed the District Court's decision in part, vacated in part and remanded the case back to the District Court for transferring to the United States District Court for the District of Delaware.

On September 30, 2025, the Delaware Court granted the FirstFire Defendants' Motion to Dismiss. On October 14, 2025, the Company filed a Motion for Reconsideration of the Delaware Court's September 30th decision.

As of the date hereof, the Delaware Court has not ruled on DarkPulse's Motion for Reconsideration. The Company remains committed to actively litigating its claims for relief against the FirstFire Defendants.

*DarkPulse, Inc., et al v. Crown Bridge Partners, LLC, et al*

On or about September 23, 2022, the Company, Social Life Network, Inc. and Redhawk Holdings Corp. (together, the "Crown Bridge Plaintiffs") commenced an action against Crown Bridge Partners, LLC ("Crown Bridge") and its control persons, Soheil Ahdoot and Sepas Ahdoot (collectively, the "Crown Bridge Defendants") in the United States District Court for the Southern District of New York. The complaint alleges that the Crown Bridge Defendants are liable to each of the plaintiffs for damages pursuant to the Racketeer Influenced and Corrupt Organizations Act ("RICO").

On or about September 29, 2023, the Court granted the Crown Bridge Defendants' motion to dismiss the plaintiffs' complaint.

On October 23, 2023, the plaintiffs appealed the Court's decision to the United States Court of Appeals for the Second Circuit ("**Second Circuit**").

On August 19, 2024, the Second Circuit issued its decision and found that the District Court erred when granting the Crown Bridge Defendants' motion to dismiss. As a result, the Second Circuit vacated the District Court's decision and remanded the case back to the District Court for further proceedings consistent with its decision.

On July 16, 2024, the parties submitted final briefing on their respective motions for summary judgment and/or dismissal to the Court.

As of the date hereof, the Court has not issued a ruling on the parties' respective motions. The Company remains committed to actively litigating its claims for relief against the Crown Bridge Defendants.

*Unasserted Matters*

We are unfamiliar with any unasserted claims held by the Company as of December 31, 2025.

In addition to the foregoing Legal Proceedings, we are also actively investigating potential legal claims, including but not limited to stock fraud, market manipulation, and/or defamation, against certain Twitter accounts, websites, and social media channels. The investigation is ongoing and should potential claims be identified, we will evaluate commencing formal litigation proceedings.

From time to time, we may become involved in litigation relating to claims arising out of our operations in the normal course of business. We are not currently involved in any pending legal proceeding or litigation and, to the best of our knowledge, no governmental authority is contemplating any proceeding to which we are a party or to which any of our properties is subject, which would reasonably be likely to have a material adverse effect on our business, financial condition and operating results.

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

Below is a table of all puts made by the Company under the EFA during the quarter ended March, 2026:

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Date of Put** | **Number of Common <br> Shares Issued** | **Total Proceeds,<br> Net of <br> Discounts** | **Effective Price <br> per Share** | **Net Proceeds** |
| 1/2/26 | 1109837 | $17135 | $0.015440 | $14879 |
| 1/12/26 | 993358 | $19151 | $0.019280 | $16757 |
| 1/21/26 | 1081493 | $17518 | $0.017200 | $15237 |
| 1/29/26 | 921406 | $17838 | $0.019360 | $15538 |
| 2/9/26 | 1172568 | $19136 | $0.016320 | $16226 |
| 2/20/26 | 890303 | $12108 | $0.013600 | $9698 |
| 3/9/26 | 876614 | $10379 | $0.011840 | $8096 |
| 3/17/26 | 1998326 | $20622 | $0.010320 | $17605 |
|  | 9043905 | $133887 |  | $114036 |

---

The shares above were issued in reliance upon the exemption from securities registration afforded by Section 4(a)(2) of the Securities Act and Rule 506(b) of Regulation D under the Securities Act, based in part on the representations of the investor. There were $9,368 in sales commissions paid to J.H. Darbie & Co., Inc. ("**J.H. Darbie**") pursuant to the EFA.

**Item 5. Other Information**

During the quarter ended March 31, 2026, no director or officer adopted or terminated any Rule 10b5-1 trading arrangement or non-Rule 10b5-1 trading arrangement, as each term is defined in Item 408(a) of Regulation S-K.

**Item 6. Exhibits**

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| | |
|:---|:---|
| **SEC Ref. No.** | **Title of Document** |
| 31.1\* | [Rule 13a-14(a) Certification by Principal Executive Officer](darkpulse_ex3101.htm) |
| 31.1\* | [Rule 13a-14(a) Certification by Principal Financial and Accounting Officer](darkpulse_ex3102.htm) |
| 32.1\*\* | [Section 1350 Certification of Principal Executive Officer and Financial and Accounting Officer](darkpulse_ex3201.htm) |
| 101.INS\* | XBRL Instance Document |
| 101.SCH\* | XBRL Taxonomy Extension Schema Document |
| 101.CAL\* | XBRL Taxonomy Extension Calculation Linkbase Document |
| 101.DEF\* | XBRL Taxonomy Extension Definition Linkbase Document |
| 101.LAB\* | XBRL Taxonomy Extension Label Linkbase Document |
| 101.PRE\* | XBRL Taxonomy Extension Presentation Linkbase Document |
| 104\* | Cover Page Interactive Data File (formatted in Inline XBRL, and included in exhibit 101). |

---

\*Filed with this Report.

\*\*Furnished with this Report.

**SIGNATURES**

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

---

| | | |
|:---|:---|:---|
|  | **DarkPulse, Inc.** | **DarkPulse, Inc.** |
| Date: May 20, 2026 | By | */s/ Dennis O'Leary* |
|  |  | Dennis O'Leary, Chairman, Chief Executive Officer, President, Chief Financial Officer |
|  |  | (Principal Executive Officer and Principal Financial Officer) |

---

## Exhibit 31.1

**Exhibit 31.1**

**CERTIFICATIONS**

I, Dennis O'Leary, certify that:

1. I have reviewed this Form 10-Q quarterly report of DarkPulse, Inc. for the quarter ended March 31, 2026;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. I am responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a. Designed such disclosure controls and procedures,
 or caused such disclosure controls and procedures to be designed under my supervision, to ensure that material information relating to
 the registrant, including its consolidated subsidiaries, is made known to me by others within those entities, particularly during the
 period in which this report is being prepared;

b. Designed such internal control over financial
 reporting, or caused such internal control over financial reporting to be designed under my supervision, to provide reasonable assurance
 regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with
 generally accepted accounting principles;

c. Evaluated the effectiveness of the registrant's
 disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and
 procedures, as of the end of the period covered by this report based on such evaluation; and

d. Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5. I have disclosed, based on my most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

a. All significant deficiencies and material weaknesses
 in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's
 ability to record, process, summarize and report financial information; and

b. Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

---

| |
|:---|
| Date: May 20, 2026 |
| */s/ Dennis O'Leary* |
| Dennis O'Leary, Chief Executive Officer |
| (Principal Executive Officer) |

---

## Exhibit 31.2

**Exhibit 31.2**

**CERTIFICATIONS**

I, Dennis O'Leary, certify that:

1. I have reviewed this Form 10-Q quarterly report of DarkPulse, Inc. for the quarter ended March 31, 2026;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. I am responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a. Designed such disclosure controls and procedures,
 or caused such disclosure controls and procedures to be designed under my supervision, to ensure that material information relating to
 the registrant, including its consolidated subsidiaries, is made known to me by others within those entities, particularly during the
 period in which this report is being prepared;

b. Designed such internal control over financial
 reporting, or caused such internal control over financial reporting to be designed under my supervision, to provide reasonable assurance
 regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with
 generally accepted accounting principles;

c. Evaluated the effectiveness of the registrant's
 disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and
 procedures, as of the end of the period covered by this report based on such evaluation; and

d. Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5. I have disclosed, based on my most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

a. All significant deficiencies and material weaknesses
 in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's
 ability to record, process, summarize and report financial information; and

b. Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

---

| |
|:---|
| Date: May 20, 2026 |
| */s/ Dennis O'Leary* |
| Dennis O'Leary, Chief Financial Officer |
| (Principal Financial and Accounting Officer) |

---

## Exhibit 32.1

**Exhibit 32.1**

**CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350**

**AS ADOPTED PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002**

In connection with the quarterly report of DarkPulse, Inc. (the "Company") on Form 10-Q for the quarter ended March 31, 2026, as filed with the Securities and Exchange Commission (the "Report"), the undersigned principal executive and principal financial officer of the Company, hereby certifies pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

(1) the Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2) the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

---

| |
|:---|
| Date: May 20, 2026 |
| */s/ Dennis O'Leary* |
| Dennis O'Leary, Chief Executive Officer and Chief Financial Officer |
| (Principal Executive Officer and Principal Financial and Accounting Officer) |

---