First Breach, Inc.

What they do

First Breach produces brass cups, brass casings, full-metal-jacket projectiles, lead projectile cores, and lead wire, with quality control checks and SAAMI-specification products. Customers can order custom head-stamped casings and a range of grain-size options for projectiles. The company is also developing UAS capabilities through a joint venture, First Forge Technologies Inc., formed with ideaForge Technology in September 2025, and has a Master Services Agreement with Hellbender for drone platform design. UAS activities remain in development and have generated no revenue.

Revenue drivers

• Brass casings and cups — The company manufactures brass cups and casings for match-grade ammunition; no segment-level revenue breakdown is disclosed in the provided excerpts.
• Projectiles and lead products — Full-metal-jacket projectiles, lead projectile cores, and lead wire are offered with custom head-stamping and grain-size options; relative size is not disclosed.
• UAS platforms (development stage) — Through the First Forge joint venture and Hellbender agreement, the company is developing drone platforms, but these activities have not generated any revenue.

Recent performance

For the quarter ended June 30, 2026, revenue was $95,353, nearly flat versus $95,219 in the quarter ended June 30, 2025. Annual revenue fell to $384,129 in 2025 from $773,870 in 2024. The company reported a net loss of $13.8 million in 2025, or $0.36 per diluted share, compared with a net loss of $6.1 million, or $0.16 per diluted share, in 2024. Operating cash flow was negative $3.5 million in 2025 versus negative $1.6 million in 2024. At June 30, 2026, total assets were $17.6 million, total liabilities were $16.2 million, and shareholder equity was $1.4 million.

Strategy

The company is pursuing a dual track: scaling its match-grade ammunition component business while developing UAS capabilities. It formed a joint venture, First Forge Technologies Inc., with ideaForge Technology in September 2025 to develop, produce and sell drone platforms for defense, homeland security and commercial applications using domestic manufacturing and supply chain capabilities. On May 1, 2026, it entered a Master Services Agreement with Hellbender, Inc. for design, engineering and prototyping of two Class 1 attritable first-person-view drone platforms, with First Breach owning the design and related intellectual property. Management emphasizes integrity, competitive pricing, customer relations, and quality raw materials. The UAS activities remain in the development stage and have not generated revenue.

Risks

• Inflation and cost pressures — Elevated inflation in manufacturing inputs, labor, and raw materials has increased the company's cost structure and may require pricing adjustments or sourcing changes.
• Supply-chain vulnerabilities — Worldwide supply-chain disruptions, including transportation delays and limited availability of key raw materials, have created volatility in lead times and procurement costs.
• Funding constraints — The company's growth strategy requires continued access to capital, and higher interest rates or limited financing availability could impact its ability to raise funds on acceptable terms.
• Demand decline from political or economic factors — Economic downturns, shifts in government spending priorities, or regulatory changes may soften demand for the company's products.

Outlook

Management states that the company's operating results and future growth prospects are influenced by macroeconomic, industry-specific, and geopolitical factors including inflation, supply-chain disruptions, and funding constraints. The company is developing UAS capabilities through its joint venture and Hellbender agreement, but these activities are in the development stage and have not generated revenue. Management notes that demand may be affected by economic and political developments, and that cost volatility creates uncertainty in forecasting margins. No specific financial guidance is provided.