OTC:DPLS
DarkPulse, Inc.
A financially distressed technology company suffering from catastrophic revenue collapse and a substantial accumulated deficit.
Key Metrics
Investment Thesis
Bull Case
An investor might only consider this stock for a speculative turnaround play if there is undisclosed government contract activity or a pending acquisition by a larger entity willing to clean up the balance sheet. However, any upside is purely theoretical given the lack of revenue generation and massive accumulated deficit.
Bear Case
The bear case is definitive; the company has lost nearly all its revenue and holds a negative shareholders' equity of $17M, making it highly likely to face delisting or bankruptcy. With operating cash flow in the red and no visible path to profitability, capital allocation is effectively impossible without external injection.
About DarkPulse, Inc.
DarkPulse, Inc. (DPLS) is a specialized technology firm operating in niche markets with minimal reported revenue and significant accumulated deficits. The company has experienced a dramatic contraction in annual revenue from $9.1M in 2022 to just $0.1M in 2024, indicating a severe business model disruption or strategic pivot. With total liabilities exceeding assets by over $17 million, the entity faces critical solvency challenges typical of distressed OTC securities.
Analysis
Management Discussion
Management has failed to stabilize the company, as net income deteriorated from -$35.5M in 2022 to a smaller but still significant loss of -$3.9M in 2024 while revenue evaporated almost entirely. The cash flow from operations remains negative at $1.5M, and the company is burning through its remaining cash reserves despite minimal capital expenditures.
Industry Overview
The company operates in a high-risk segment where traditional financial metrics show severe distress, suggesting an industry environment that may be shifting away from the specific value proposition DarkPulse once held. The drastic revenue decline mirrors broader trends of consolidation or obsolescence within niche technology sectors.
Financial Statements
Income Statement
Balance Sheet
Cash Flow
| Metric | 2022 | 2023 | 2024 |
|---|---|---|---|
| Revenue | $9.1M | $2.0M | $126.8K |
| Cost of Revenue | $14.5M | $2.4M | $2.3K |
| Gross Profit | $-5.4M | $-425.8K | $124.6K |
| Operating Expenses | $29.6M | $20.5M | $2.0M |
| Operating Income | $-35.1M | $-20.9M | $-1.9M |
| G&A | $5.0M | $2.0M | $471.6K |
| Stock-Based Comp | $0 | — | — |
| D&A | $1.6M | $523.1K | $128.5K |
| Depreciation | $1.3M | $508.9K | $128.5K |
| Amortization | — | $34.1K | $0 |
| Other OpEx | $24.7M | $18.5M | $1.5M |
| Non-Operating Income | $21.9M | $9.2M | $-16.9M |
| Interest Expense | $621.1K | $642.5K | — |
| Pre-Tax Income | $-13.1M | $-11.7M | $-18.8M |
| Income Tax | $22.4M | $10.0M | $-14.9M |
| Continuing Ops | $-35.5M | $-21.7M | $-3.9M |
| Discontinued Ops | $0 | $0 | $0 |
| Net Income | $-35.5M | $-21.7M | $-3.9M |
| Minority Interest | $-238.7K | $-902.2K | $-10.4K |
| Net to Common | $-35.3M | $-20.8M | $-3.9M |
| Metric | 2022 | 2023 | 2024 |
|---|---|---|---|
| Current Assets | $7.0M | $957.0K | $1.1M |
| Cash & Equivalents | — | $11.9K | $86.5K |
| Accounts Receivable | $3.0M | $868.9K | $915.0K |
| Inventory | $23.8K | $0 | $0 |
| Prepaid Expenses | $180.5K | $76.2K | $102.8K |
| Other Current Assets | $3.8M | $0 | $0 |
| Long-Term Assets | $15.1M | $3.2M | $1.7M |
| PP&E (Net) | $1.9M | $743.3K | $699.0K |
| Intangibles | $390.3K | $0 | $0 |
| Goodwill | $6.5M | $0 | $24.0K |
| Operating Leases | $2.7M | $496.7K | $449.6K |
| Other LT Assets | $3.6M | $1.9M | $511.4K |
| Total Assets | $22.0M | $4.1M | $2.8M |
| Current Liabilities | $18.5M | $19.1M | $18.3M |
| Accounts Payable | — | $13.7M | $16.9M |
| Current Leases | $512.4K | $80.4K | $80.4K |
| Deferred Revenue | $2.2M | $0 | $0 |
| Other Current Liab | $15.8M | $3.3M | $1.3M |
| Long-Term Liabilities | $3.8M | $1.7M | $1.5M |
| LT Operating Leases | $2.5M | $496.3K | $447.0K |
| Other LT Liab | $1.3M | $1.2M | $1.1M |
| Total Liabilities | $22.4M | $20.8M | $19.8M |
| Shareholders' Equity | $-329.0K | $-16.7M | $-17.0M |
| Retained Earnings | $-46.6M | $-67.4M | $-71.3M |
| AOCI | $-1.1M | $-1.3M | $-1.6M |
| Treasury Stock | $1.0K | $1.0K | $1.0K |
| Total L&E | $22.0M | $4.1M | $2.8M |
| Metric | 2022 | 2023 | 2024 |
|---|---|---|---|
| Net Income (CFO) | $-35.5M | $-21.7M | $-3.9M |
| Non-Cash Adjustments | $15.6M | $18.4M | $1.1M |
| Working Capital Changes | $-1.8M | $-2.4M | $1.2M |
| Cash from Operations | $-21.7M | $-5.7M | $-1.5M |
| Capital Expenditures | $2.1M | $102.3K | $33.2K |
| Cash from Investing | $-5.0M | $-215.5K | $-93.0K |
| Cash from Financing | $24.2M | $3.6M | $2.1M |
| FX Effect | $1.0M | $187.9K | $-397.6K |
| Net Change in Cash | $-2.6M | $-2.2M | $472.3K |
| Beginning Cash | $3.7M | $2.1M | $11.9K |
| Ending Cash | $2.1M | $11.9K | $86.5K |
Frequently Asked Questions
How does DarkPulse, Inc. make money?
The financial statements reveal a lack of diversified segments, as operating expenses significantly outpace gross profit, suggesting reliance on discontinued operations or highly specialized, non-recurring contracts that have since vanished.
What are the main risks for DPLS?
Extreme solvency risk with liabilities of $19.8M against only $2.8M in assets, severe liquidity constraints evidenced by a -$1.5M operating cash flow, and high business model failure risk indicated by an 99% revenue drop over three years.
What is DPLS's competitive advantage?
None identified based on current financial performance; the company exhibits no clear moat given its negative equity and negligible revenue base.
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Not financial advice. All content is for informational purposes only. Data may contain errors. Consult a qualified financial advisor before making investment decisions.