10-K/A: DarkPulse, Inc. Amends 2025 10-K Filing for Auditor Report Corrections

DarkPulse, Inc. has filed an amendment to its 2025 10-K to correct specific figures in the auditor's going concern assessment, including accumulated deficit, net loss, and negative working capital.

Summary

• This filing is an amendment (Amendment No. 1) to DarkPulse, Inc.'s Annual Report on Form 10-K for the fiscal year ended December 31, 2025.
• The amendment is solely to correct errors identified in the 'Going Concern' paragraph of the Audit Report issued by Boladale Lawal & Co.
• Specifically, the accumulated deficit was corrected from $(74,087,829) to $(74,226,493).
• The net loss was corrected from $(1,731,056) to $(2,925,582).
• Negative working capital was corrected from $(19,637,276) to $(19,721,196).
• The addressee line of the Audit Report has been updated, and the report date is now May 1, 2026.
• The corrected figures are consistent with the audited financial statements previously filed.
• New certifications from the principal executive and financial officers are included as exhibits.

Sentiment

Score: 3

Explanation: StockSavvy.ai views this filing as negative due to the worsening of key financial metrics and the continued substantial doubt about the company's going concern status, despite the correction being a step towards transparency.

Positives

• The company has corrected errors in its auditor's report, demonstrating a commitment to accurate financial reporting.
• The corrected financial figures are consistent with the previously filed audited consolidated financial statements, indicating no fundamental changes to the underlying financial performance.
• New certifications under Sarbanes-Oxley Act sections 302 and 906 have been filed, reinforcing compliance and governance.

Negatives

• The corrected figures reveal a larger accumulated deficit of $(74,226,493) compared to the initially reported $(74,087,829).
• The net loss for the period is higher than initially reported, corrected to $(2,925,582) from $(1,731,056).
• Negative working capital is also larger than initially reported, corrected to $(19,721,196) from $(19,637,276).
• The auditor's report continues to express substantial doubt about the Company's ability to continue as a going concern due to its financial condition, including accumulated deficit, net loss, and negative working capital.

Risks

• Substantial doubt exists regarding the Company's ability to continue as a going concern, as highlighted by the auditor's report, due to its accumulated deficit, net loss, and negative working capital.
• The company is dependent on obtaining additional working capital funding from the sale of equity and/or debt securities to execute its plans and continue operations.
• Potential for future impairment of accounts receivable, as evidenced by the significant bad debt expense and write-offs in the current period.
• The company's intellectual property (patents) is subject to challenges, potential infringement, and the risk of misappropriation, particularly in foreign jurisdictions.
• Ongoing litigation and potential for future legal claims, including those related to stock fraud and market manipulation, could result in substantial costs and diversion of management attention.

Future Outlook

The company is actively seeking additional capital through private placement offerings and strategic partnerships to fund growth, develop products, and achieve strategic objectives. The ability to continue as a going concern is dependent on the success of these future capital raising efforts or alternative financing arrangements.

Industry Context

StockSavvy.ai notes that this amendment highlights the critical importance of accurate financial reporting and auditor oversight, especially for companies in the technology and security sectors that often rely on complex financial instruments and face significant going concern risks.

Legal Proceedings

• Carebourn Capital, L.P. v. DarkPulse, Inc.: Company was awarded $387,693.48 in damages, attorneys fees, and costs, which remains unsatisfied.
• More Capital, LLC v. DarkPulse, Inc. et al: Company was awarded $412,048.64 in damages, attorneys fees, and costs, which remains unsatisfied.
• Carebourn Capital et al v. Standard Registrar and Transfer et al: Court ordered Noteholders and their counsel to pay $70,840 to the Company as sanctions, which has not yet been paid.
• DarkPulse, Inc. v. FirstFire Global Opportunities Fund, LLC, et al: Case remanded to the District Court of Delaware; a motion for reconsideration is pending.
• DarkPulse, Inc., et al v. Crown Bridge Partners, LLC, et al: Second Circuit vacated the District Court's dismissal and remanded for further proceedings; summary judgment motions are pending.

Related Party Transactions

• Remote Intelligence (RI) has an unsecured, non-interest-bearing loan payable to a former majority shareholder (now a Company shareholder) of $226,247 as of December 31, 2025 and 2024.
• Wildlife Specialists (WS) has an unsecured, non-interest-bearing loan payable to a former majority shareholder (now a Company shareholder) of $135,500 as of December 31, 2025 and 2024.

Stakeholder Impact

• Shareholders: The continued going concern uncertainty and increased net loss may negatively impact shareholder confidence and stock value. The company's reliance on future capital raises could lead to further dilution.
• Creditors: The company's financial instability and going concern issues could impact its ability to meet its obligations to creditors.
• Management: Management is responsible for addressing the going concern issues and securing necessary financing, while also navigating ongoing legal proceedings.

Next Steps

• Continue to pursue additional sources of financing to fund operations for twelve months from the issuance date of the consolidated financial statements.
• Finalize the development of its products and begin generating revenues.
• Actively litigate claims for relief against the FirstFire Defendants and pursue collection of awarded amounts from Carebourn and More Capital.
• Evaluate commencing formal litigation proceedings against certain Twitter accounts, websites, and social media channels for stock fraud, market manipulation, and/or defamation.

Key Dates

Recommendation

While the correction of auditor report errors is a positive step towards transparency, the continued substantial doubt about the company's going concern status, coupled with increased net losses and ongoing legal battles, warrants a cautious 'hold' recommendation. Investors should monitor future financing efforts and operational progress closely.

Keywords

DarkPulse, 10-K/A, Amendment, Auditor Report, Going Concern, Financial Statements, Accumulated Deficit, Net Loss, Working Capital, SEC Filing, Corporate Governance