As filed with the Securities and Exchange Commission on February 11, 2026.

Registration No. 333-

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM S-1

REGISTRATION STATEMENT

UNDER THE SECURITIES ACT OF 1933

T3 Defense Inc.

(Exact name of registrant as specified in its charter)

Delaware	6770	38-3912845
(State or jurisdiction of	(Primary Standard Industrial	(I.R.S. Employer
incorporation or organization)	Classification Code Number)	Identification Number)

575 Fifth Ave., 14th Floor

New York, New York 10017

(646) 257-4214

(Address, including zip code, and telephone number, including area code, of Registrant’s principal executive offices)

Menachem Shalom

T3 Defense Inc.

Chief Executive Officer

575 Fifth Ave., 14th Floor

New York, New York 10017

(646) 257-4214

(Name, address, including zip code, and telephone number, including area code, of agent for service)

Copies to:

Robert Cohen

McDermott Will & Schulte LLP

333 SE 2nd Avenue, Suite 4500

Miami, Florida 33131

(~~212~~561) ~~547~~ 287-~~5885~~7096

Approximate date of commencement of proposed sale to the public:

As soon as practicable after the effective date hereof.

If any securities being registered on this Form are to be offered on a delayed or continuous basis pursuant to Rule 415 under the Securities Act of 1933, check the following box. ☒

If this Form is filed to register additional securities for an offering pursuant to Rule 462(b) under the Securities Act, please check the following box and list the Securities Act registration statement number of the earlier effective registration statement for the same offering. ☐

If this Form is a post-effective amendment filed pursuant to Rule 462(c) under the Securities Act, check the following box and list the Securities Act registration statement number of the earlier effective registration statement for the same offering. ☐

If this Form is a post-effective amendment filed pursuant to Rule 462(d) under the Securities Act, check the following box and list the Securities Act registration statement number of the earlier effective registration statement for the same offering. ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, 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	☐
Non-accelerated filer	☒	Smaller reporting company	☒
		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 7(a)(2)(B) of the Securities Act. ☐

The registrant hereby amends this registration statement on such date or dates as may be necessary to delay its effective date until the registrant shall file a further amendment which specifically states that this registration statement shall thereafter become effective in accordance with section 8(a) of the Securities Act of 1933 or until the registration statement shall become effective on such date as the Securities and Exchange Commission acting pursuant to said section 8(a), may determine.

The information in this prospectus is not complete and may be changed. The selling stockholders may not sell these securities until the registration statement filed with the Securities and Exchange Commission is effective. This prospectus is not an offer to sell these securities and it is not soliciting an offer to buy these securities in any state or jurisdiction where the offer or sale is not permitted.

PRELIMINARY PROSPECTUS

SUBJECT TO COMPLETION, DATED ~~FEBRUARY 11~~________, 2026

T3 Defense Inc.

1630,~~787~~000,~~988~~000 Shares of Common Stock

This prospectus relates to the resale from time to time by the selling stockholders named in this prospectus, including ~~their~~its transferees, pledgees, or donees or ~~their~~ ~~respective~~ successors (~~collectively,~~ the “Selling Stockholders”), of up to 1630,~~787~~000,~~988~~000 shares (the “Shares”) of the common stock, par value $0.0001 per share (the “Common Stock”), of T3 Defense Inc. ~~(formerly known as Nukkleus Inc.)~~, a Delaware corporation (the “Company” or “T3 Defense”), which consists of (i) ~~4,770,340 Shares (the “Common Shares”) and (ii)~~ up to 1226,~~017~~666,~~648~~667 Shares (the “~~Warrant~~Conversion Shares”) issuable upon the ~~exercise~~conversion of ashares ~~warrant~~of ~~(the~~our ~~“Warrant”).~~Series ~~The~~B ~~Common~~Convertible ~~Shares~~Preferred ~~and~~Stock, ~~the~~par ~~Warrant~~value ~~were received by Star 26 Capital, Inc~~$0.,0001 aper ~~Nevada~~share ~~corporation~~ (~~“Star 26”) as consideration in connection with~~ the ~~Company’s~~“Series ~~acquisition~~B ~~(the~~Preferred ~~“Acquisition~~Stock”), ~~of 100% of the issued~~ and ~~outstanding~~(ii) ~~capital~~up ~~stock of Star 26 pursuant~~ to ~~the terms of that certain Amended and Restated Securities Purchase Agreement and Call Option~~3, ~~dated September 15~~333, ~~2025~~333 Shares (the “~~Purchase~~Warrant ~~Agreement~~Shares”), byissuable ~~and~~upon ~~among~~ the ~~Company,~~exercise ~~Star 26, the shareholders~~ of ~~Star~~common ~~26,~~warrants ~~and Menachem Shalom, as representative of the shareholders of Star 26. The Acquisition was completed on January 12, 2026~~ (the “~~Closing~~Common ~~Date~~Warrants”). The ~~Common~~shares ~~Shares~~of Series B Preferred Stock and the ~~Warrant~~Common Warrants were ~~subsequently~~purchased ~~assigned~~ by ~~Star 26 to~~ the Selling Stockholders ~~pro~~in ~~ratably~~a ~~based~~private onplacement ~~their~~(the ~~equity~~“February ~~ownership in Star~~2026 ~~26.~~Private ~~The~~Placement”) ~~Warrant~~pursuant ~~is exercisable at any time and from time~~ to ~~time~~the ~~until~~Securities ~~January~~Purchase 12Agreement, ~~2032~~dated atFebruary ~~an exercise price of $1.50 per share~~24, ~~subject to adjustment~~2026, by and isbetween ~~subject~~the toCompany aand ~~blocker~~such accredited ~~provision~~investor (the “~~Blocker~~Securities Purchase Agreement”),. ~~which~~As ~~restricts~~of the ~~exercise~~date of athis ~~Warrant if~~prospectus, aswe ahave ~~result of~~issued ~~such~~200 ~~exercise, the holder or any of its affiliates would beneficially own in excess of 9.99% of the number of~~ shares of ~~Common Stock~~ ~~outstanding~~Series ~~after~~B ~~giving~~Preferred ~~effect~~Stock toand ~~the~~Common ~~issuance~~Warrants ofinitially ~~Warrant~~exercisable ~~Shares~~on ~~issuable~~a ~~upon~~cash-basis ~~exercise~~for ofup ~~the~~to ~~Warrant calculated in accordance with Section 13(d) of the Securities Exchange Act of 1934~~7,042,252 asshares ~~amended (the “Exchange Act”). For a description~~ of ~~the~~Common ~~Acquisition, please see “Prospectus Summary – Company Overview~~Stock.”

~~The~~Each ~~Shares~~share ~~being~~of ~~registered for~~Series ~~resale~~B ~~represent~~Preferred Stock has a ~~considerable~~stated ~~percentage~~value of ~~our~~$50,000 ~~public~~(the ~~float,~~“Stated Value”) and ~~the~~is ~~sales~~initially ofconvertible ~~such~~into ~~Shares~~23,474 Conversion Shares (or ~~the~~pre-funded warrants ~~perception~~in ~~that~~lieu ~~these~~thereof ~~sales~~(the ~~could occur~~“Pre-Funded Warrants”)), ~~could~~calculated ~~cause~~by dividing the ~~market~~Stated Value by the initial conversion price equal to $2.13 per share of ~~the~~Series ~~Common~~B Preferred Stock to(the ~~decline~~“Initial ~~significantly~~Conversion Price”). InThe ~~addition,~~Initial weConversion ~~are~~Price ~~not~~is ~~selling~~subject to ~~any~~adjustment ~~shares~~upon stock splits, distributions, reorganizations, reclassifications, change of ~~Common Stock~~control ~~under~~and ~~this~~the ~~prospectus~~like, and ~~will~~is ~~not~~also ~~receive~~subject to ~~any~~price-based ofanti-dilution adjustments for subsequent offerings made by the ~~proceeds~~Company ~~from~~while the ~~sale~~Series ofB ~~Shares~~Preferred byStock ~~the~~remains ~~Selling~~outstanding (subject ~~Stockholders~~to certain exempt issuances). WeThe ~~are~~Initial ~~paying the~~Conversion ~~cost~~Price ofwill ~~registering~~also ~~the~~be ~~Shares~~adjusted asupon ~~well~~receipt of Stockholder Approval (as ~~various~~hereinafter defined) ~~related~~as ~~expenses~~described herein. The ~~Selling~~shares ~~Stockholders~~of Series B Preferred Stock are ~~responsible~~subject ~~for~~to ~~all~~a ~~selling~~blocker ~~commissions~~provision (the “Preferred Blocker”), ~~transfer~~which ~~taxes~~restricts the conversion of the Series B Preferred Stock if, as a result of such conversion, the holder, together with its affiliates and any other ~~costs~~person ~~related~~whose tobeneficial ownership of Common Stock would be aggregated with the ~~offer~~holder’s ~~and~~for ~~sale~~purposes of ~~their~~Section ~~Shares.~~13(d) of Wethe ~~will,~~Securities ~~however~~Exchange Act of 1934, ~~receive~~as amended (the ~~net~~“Exchange ~~proceeds~~Act”), would beneficially own in excess of ~~the~~9.9% ~~exercise~~of our then issued and outstanding shares of Common Stock (including the ~~Warrant~~shares ~~for~~of ~~cash~~Common Stock issuable upon such exercise).

~~The~~Each ~~Selling~~Common ~~Stockholders~~Warrant ~~may sell~~is ~~the~~exercisable ~~Shares~~for one and one half Warrant Shares at ~~fixed~~an ~~prices~~initial exercise price of $2.13 per share, atsubject ~~market~~to ~~prices~~adjustment ~~prevailing~~for atstock splits, distributions and the ~~time~~like of(the ~~sale,~~“Initial Exercise atPrice”). ~~prices~~The ~~related~~Initial Exercise Price is subject to ~~prevailing~~price-based ~~market~~anti-dilution ~~prices~~adjustments orfor atsubsequent offerings made by ~~negotiated~~the ~~prices~~Company while the Common Warrants remain outstanding (subject to certain exempt issuances). The ~~Selling~~holder ~~Stockholders~~of the Common Warrants may exchange ~~sell~~the Common Warrants on a cashless basis for a number of shares of Common Stock determined by multiplying the total number of Warrant Shares with respect to orwhich ~~through~~the ~~underwriters,~~Common ~~broker-dealers~~Warrant oris ~~agents,~~then ~~who~~being ~~may~~exercised ~~receive~~by the Black Scholes Value (as defined in the Common Warrant) ~~compensation~~divided by the lower of the two closing bid prices of the Common Stock in the ~~form~~two days prior the time of ~~discounts~~such exercise, ~~concessions~~but in any event not less than $0.01 (as may be adjusted for stock dividends, subdivisions, or ~~commissions~~combinations ~~from~~and the ~~Selling~~like). ~~Stockholders~~The Common Warrants are subject to a blocker provision (the “Warrant Blocker” and, together with the ~~purchasers~~Preferred Blocker, the “Blockers”), which restricts the exercise of a Common Warrant if, as a result of such exercise, the ~~Shares~~holder, ortogether ~~both~~with its affiliates and any other person whose beneficial ownership of Common Stock would be aggregated with the holder’s for purposes of Section 13(d) of the Exchange Act, would beneficially own in excess of 9.99% of our then issued and outstanding shares of Common Stock (including the shares of Common Stock issuable upon such exercise).

~~Our~~The Shares being registered for resale represent a considerable percentage of our public float, and the sales of such Shares, or the perception that these sales could occur, could cause the market price of the Common Stock isto ~~presently~~decline ~~listed~~significantly. onIn ~~the~~addition, ~~Nasdaq~~we ~~Global~~are ~~Market~~not ~~(“Nasdaq”)~~selling any shares of Common Stock under this prospectus and will not receive any of the ~~symbol~~proceeds ~~“DFNS~~from the sale of Shares by the Selling Stockholders.” We are paying the cost of registering the Shares as well as various related expenses. The ~~closing~~Selling ~~price~~Stockholders are responsible for ~~our~~all selling ~~Common~~commissions, ~~Stock~~transfer ontaxes ~~February~~and 10other costs related to the offer and sale of its Shares. We will, ~~2026~~however, asreceive ~~reported~~the bynet ~~Nasdaq,~~proceeds of ~~was~~any $2Common Warrants exercised for cash.21 ~~per~~For a description of the transaction pursuant to which this resale registration statement ~~share~~relates, please see “Prospectus Summary – February 2026 Private Placement.”

WeThe Selling ~~are~~Stockholders anmay ~~“emerging growth~~sell ~~company”~~the asShares ~~the~~at ~~term~~fixed isprices, ~~used~~at inmarket prices prevailing at the ~~Jumpstart~~time ~~Our~~of ~~Business~~sale, ~~Startups~~at ~~Act~~prices ofrelated ~~2012~~to ~~and,~~prevailing market asprices ~~such,~~or ~~have~~at ~~elected~~negotiated prices. The Selling Stockholders may sell the Shares to ~~comply~~or ~~with~~through underwriters, broker-dealers or agents, ~~certain~~who ~~reduced~~may ~~public~~receive ~~company~~compensation ~~reporting~~in ~~requirements~~the ~~for~~form ~~this~~of ~~prospectus~~discounts, ~~and~~concessions ~~future~~or ~~filings~~commissions from the Selling Stockholders, the purchaser of the Shares, or both.

~~Investing~~Our inCommon ~~our~~Stock ~~securities~~is presently ~~involves~~listed aon ~~high degree of risk. You should carefully consider~~ the ~~risks~~Nasdaq ~~and~~Global ~~uncertainties~~Market ~~described~~(“Nasdaq”) under the ~~heading~~symbol “~~Risk Factors~~DFNS.” ~~beginning~~The onclosing ~~page~~price 10for ofour ~~this~~Common ~~prospectus~~Stock on ~~before~~June ~~making~~1, a2026, ~~decision~~as toreported ~~purchase~~by ~~our~~Nasdaq, ~~securities~~was $0.3756 per share.

Investing in our securities involves a high degree of risk. You should carefully consider the risks and uncertainties described under the heading “Risk Factors” beginning on page 9 of this prospectus before making a decision to purchase our securities.

NEITHER THE SECURITIES AND EXCHANGE COMMISSION NOR ANY STATE SECURITIES COMMISSION HAS APPROVED OR DISAPPROVED OF THESE SECURITIES OR PASSED UPON THE ACCURACY OR ADEQUACY OF THIS PROSPECTUS. ANY REPRESENTATION TO THE CONTRARY IS A CRIMINAL OFFENSE.

The date of this prospectus is , 2026

TABLE OF CONTENTS

ABOUT THIS PROSPECTUS		ii
SPECIAL NOTE REGARDING FORWARD LOOKING STATEMENTS		iii
INDUSTRY, MARKET AND OTHER DATA		iii
PROSPECTUS SUMMARY		1
RISK FACTORS		109
USE OF PROCEEDS		2631
DIVIDEND POLICY		2631
SELECTED HISTORICAL FINANCIAL CONSOLIDATED FINANCIAL DATA		27
MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS		32
MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS		37
BUSINESS		43
BUSINESS		57
MANAGEMENT		63
MANAGEMENT		71
EXECUTIVE COMPENSATION		67
EXECUTIVE COMPENSATION		75
SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT		70
SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT		77
SELLING STOCKHOLDERS		71
SELLING STOCKHOLDERS		78
PLAN OF DISTRIBUTION		72
PLAN OF DISTRIBUTION		79
DESCRIPTION OF SECURITIES		74
DESCRIPTION OF SECURITIES		80
CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS		78
CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS		83
CERTAIN RELATIONSHIPS AND RELATED PARTY TRANSACTIONS		79
CERTAIN RELATIONSHIPS AND RELATED PARTY TRANSACTIONS		84
LEGAL MATTERS		83
LEGAL MATTERS		90
EXPERTS		83
EXPERTS		90
WHERE YOU CAN FIND MORE INFORMATION		83
WHERE YOU CAN FIND MORE INFORMATION		90
INCORPORATION OF CERTAIN INFORMATION BY REFERENCE		84
INCORPORATION OF CERTAIN INFORMATION BY REFERENCE		91
INDEX TO CONSOLIDATED FINANCIAL STATEMENTS		F-1

ABOUT THIS PROSPECTUS

This prospectus is part of a registration statement on Form S-1 that we filed with the Securities and Exchange Commission (the “SEC”). Under this registration statement, the Selling Stockholders may sell from time to time in one or more offerings the Shares described in this prospectus or otherwise as described under “Plan of Distribution.”

We have not, and the Selling Stockholders have not, authorized anyone to provide you with information other than the information that we have provided or incorporated by reference in this prospectus. You should rely only on the information contained in this prospectus or in any amended prospectus that we may authorize to be delivered or made available to you and your reliance on any unauthorized information or representation is at your own risk. This prospectus may be used only in jurisdictions where offers and sales of these securities are permitted. The information appearing in this prospectus is accurate only as of the date of this prospectus and that any information we have incorporated by reference is accurate only as of the date of the document incorporated by reference, regardless of the time of delivery of this prospectus, or any sale of our securities. Our business, financial condition and results of operations may have changed since those dates.

In this prospectus, unless otherwise noted, references to the “Company,” “T3 Defense,” “we,” “us,” and “our” refer to T3 Defense Inc. and its subsidiaries.

Neither we, nor any of our officers, directors, agents or representatives or underwriters, make any representation to you about the legality of an investment in our securities. You should not interpret the contents of this prospectus or any free writing prospectus to be legal, business, investment or tax advice. You should consult with your own advisors for that type of advice and consult with them about the legal, tax, business, financial and other issues that you should consider before investing in our securities.

This prospectus contains summaries of certain provisions contained in some of the documents described herein, but reference is made to the actual documents for complete information. All of the summaries are qualified in their entirety by the actual documents. Copies of some of the documents referred to herein have been filed, will be filed or will be incorporated by reference as exhibits to the registration statement of which this prospectus is a part, and you may obtain copies of those documents as described below under “Where You Can Find More Information.”

This prospectus contains references to trademarks, trade names and service marks belonging to other entities. Solely for convenience, trademarks, trade names and service marks referred to in this prospectus may appear without the ® or TM symbols, but such references are not intended to indicate, in any way, that the applicable licensor will not assert, to the fullest extent under applicable law, its rights to these trademarks and trade names. We do not intend our use or display of other companies’ trade names, trademarks or service marks to imply a relationship with, or endorsement or sponsorship of us by, any other companies.

SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS

This prospectus and any applicable prospectus supplement or free writing prospectus, including the documents that we incorporate by reference herein and therein, contain “forward-looking statements” within the meaning of Section 27A of the Securities Act and Section 21E of the Exchange Act. These statements relate to future events or to our future operating or financial performance and involve known and unknown risks, uncertainties and other factors which may cause our actual results, performance or achievements to be materially different from any future results, performances or achievements expressed or implied by the forward-looking statements.

In some cases, you can identify forward-looking statements by terms such as “may,” “will,” “should,” “could,” “would,” “expects,” “plans,” “anticipates,” “believes,” “estimates,” “projects,” “predicts,” “potential” and similar expressions (including their use in the negative) intended to identify forward-looking statements. These statements reflect our current views with respect to future events and are based on assumptions and are subject to risks and uncertainties. As such, our actual results may differ significantly from those expressed in any forward-looking statements. Given these uncertainties, you should not place undue reliance on these forward-looking statements.

We discuss many of these risks in greater detail under the “Risk Factors,” “Business” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” sections in this prospectus and/or incorporated by reference into this prospectus from our most recent Annual Report on Form 10-K, ~~the Transition Report on Form 10-KT~~ and in our Quarterly Reports on Form 10-Q for ~~the~~ the quarterly periods ended subsequent to our filing of such Annual Report on Form 10-K, as well as any amendments thereto reflected in subsequent filings with the SEC.

These forward-looking statements represent our estimates and assumptions only as of the date of the document containing the applicable statement. Unless required by law, we undertake no obligation to update or revise any forward-looking statements to reflect new information or future events or developments. Thus, you should not assume that our silence over time means that actual events are bearing out as expressed or implied in such forward-looking statements. You should read this prospectus, any applicable prospectus supplement, together with the documents that we have filed with the SEC that are incorporated by reference and any free writing prospectus we have authorized for use in connection with this offering, completely and with the understanding that our actual future results may be materially different from what we expect. We qualify all of the forward-looking statements in the foregoing documents by these cautionary statements.

INDUSTRY, MARKET AND OTHER DATA

Certain industry, market and competitive position data contained in this prospectus supplement and the information incorporated by reference herein relate to or are based on industry studies, research, publications, surveys and other data obtained from third-party sources and our own internal estimates and research. While we believe these third-party studies, research, publications, surveys and other data to be reliable as of the date of this prospectus supplement and based on reasonable assumptions, we have not independently verified, and make no representations as to the adequacy, fairness, accuracy or completeness of, any information obtained from third-party sources, and all such data involve risks and uncertainties and are subject to change based on various factors. Internal estimates are derived from publicly available information released by industry analysts and third-party sources, our internal research and our industry experience, and are based on assumptions made by us based on such data and our knowledge of the industry and market, which we believe to be reasonable.

iii

PROSPECTUS SUMMARY

The following summary highlights information contained elsewhere in this prospectus. This summary may not contain all of the information that may be important to you. You should read this entire prospectus carefully, including the sections entitled “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and the Company’s historical financial statements and related notes included elsewhere in this prospectus.

Company Overview

Currently, the Company, through its ~~US-based subsidiary~~subsidiaries, is ~~engaged~~a instrategic ~~the~~acquirer ~~distribution~~and operator of ~~drones’~~aerospace ~~payloads~~and indefense (A&D) businesses. We are building a portfolio of mission-critical suppliers and advanced technology companies and strategic infrastructure opportunities across the defense, aerospace, and ~~homeland~~advanced ~~security~~manufacturing ~~markets~~sectors ~~within~~ across the USUnited States, Israel and Europe. InFollowing ~~addition~~the appointment in September 2024 of Menachem Shalom, ~~through~~our ~~its~~current ~~Israeli~~chief ~~subsidiary~~executive officer and a director, we are ~~engaged~~positioning inthe ~~providing~~Company ~~services~~as toa ~~support~~strategic ~~civil~~platform ~~and~~company focused ~~defense~~on ~~aviation~~acquiring, ~~needs~~integrating, ~~including~~ ~~maintenance~~and scaling high-impact businesses in the aerospace and ~~repair~~defense ~~(MRO)~~industries. ~~services,~~Our ~~aircraft~~strategy ~~modernization,~~targets ~~resale,~~Tier 2 and ~~leasing,~~Tier ~~which~~3 ~~includes~~suppliers that form the ~~deployment~~industrial backbone of ~~the~~national ~~de-icing~~security infrastructure, with particular emphasis on companies offering ~~technology~~dual-use ~~for~~technologies, ~~commercial~~advanced ~~aircrafts~~AI applications, and critical manufacturing capabilities.

~~Previously we were a financial~~The ~~technology~~chart ~~company~~below ~~that~~shows ~~was focused on providing software, technology solutions, customer sales and marketing, and risk management technology hardware and software solutions packages for~~ the ~~worldwide~~current ~~retail~~ownership ~~foreign exchange (“FX”) trading industry~~ and ~~payment~~names ~~services from~~of ~~one~~our ~~fiat~~portfolio ~~currency to another or to digital assets.~~companies:

On January 12, 2026, we closed our acquisition of 100% of the issued and outstanding capital stock of Star 26 pursuant to the terms of the Purchase Agreement, by and among the Company, Star 26, the shareholders of Star 26, and Menachem Shalom, as representative of the shareholders of Star 26. As a result of the Acquisition, Star 26 became a wholly-owned subsidiary of the Company. The transaction was approved by the stockholders of the Company on December 16, 2025 and confirmed by Nasdaq on January 9, 2026. Pursuant to the terms of the Purchase Agreement, the aggregate consideration paid by the Company consisted of: (i) $16,000,000, which was paid to Star 26 by the issuance by the Company of a 12-month note (the “Investment Note”); (ii) $500,000 in cash, representing $5,000,000 less $4,500,000 previously borrowed by Star 26 from the Company; (iii) 4,770,340 Common Shares; (iv) the Warrant to purchase 12,017,648 Warrant Shares at an exercise price of $1.50 per share, exercisable for a period of five years from the Closing Date; (v) a promissory note in the principal amount of $3,000,000 (the “Six-Month Note”), which accrues interest at the rate of 8% per annum and matures on July 12, 2026; and (vi) a promissory note in the principal amount of $3,000,000 (the “Three-Month Note”), which matures on April 12, 2026. The Common Shares, the Warrant, the Six-Month Note and the Three-Month Note were subsequently assigned by Star 26 to the Selling Stockholders, pro ratably based on their equity ownership in Star 26. In connection with the Acquisition, the Company cancelled certain promissory notes previously issued by Star 26 to the Company in the aggregate principal amount of $4,500,000. The cancellation of said indebtedness was applied as a credit against the cash consideration otherwise payable to Star 26 at the closing of the Acquisition. The cash portion of the purchase price payable at closing was funded from the Company’s available cash on hand.

Star currently holds (1) 100% of B. Rimon Agencies Ltd. (“Rimon”), an Israeli corporation engaged as distributor of military-grade generators, masts and lighting systems and that is, among other clients, a supplier of generators for “Iron Dome” launchers, (2) 67% of Water.IO Ltd., an Israeli corporation engaged in smart hydration technology, and (3) a convertible loan issued by I.T.S. Industrial Techno-logic Solutions Ltd., an Israeli corporation which designs, develops and manufactures fully integrated electro-mechanical machines, assembly lines and custom motion systems.

If, for a period of 12 months after the closing, the Common Stock is delisted from Nasdaq, Star 26 shall have the right, at its own discretion, to require the Company to exchange the Investment Note for all the shares of Star 26 then held by the Company, provided, however, Star 26 shall retain any cash payments made by the Company to Star 26 and the Company shall retain an equity interest in Star 26 equivalent to all cash payments.

Our Current Portfolio:

Defense and Aerospace Technology Acquisitions:

●

Star 26 Capital Inc. - Defense technology holding company that owns B. Rimon Agencies Ltd., an Israeli supplier of generators for “iron dome” launchers and defense systems. [closed January 12, 2026]

	●	Tiltan Software Engineering Ltd. - Israeli AI software company specializing in defense and aerospace applications including GPS-denied navigation, 3D mapping, simulation systems, and AI training platforms. [closed December 30, 2025]

	●	Nimbus Drones Technologies and Marketing Ltd. – Israeli company specializing in unmanned arial systems and services. [closed January 15, 2026]

	●	I.T.S. Industrial Tecno-logic Solutions Ltd.– Israeli company providing design, development, production and manufacturing of serial, fully integrated electro-mechanical machines and sophisticated assembly lines. [closed February 16, 2026]

	●	Positech Ltd., wholly owned subsidiary of I.T.S. – designs and manufactures top-of-the line, high performance motion control systems for military and civilian use.

Technology Distribution and Licensing:

●

Blade Ranger Ltd. (Exclusive U.S. Distribution rights) - Distribution agreement for advanced drone payload systems for defense and homeland security markets, with minimum commitments of 30 payloads over three years. [August 25, 2026]

●

Mandragola Aviation Joint Venture (51% ownership) - Strategic joint venture to establish aviation and defense infrastructure in the Baltics and Israel, including NATO-compliant logistics hubs, MRO (maintenance, repair and operations) facilities, and aircraft modernization capabilities. [August 29, 2026]

Background

The Company was formed on May 24, 2019. ~~The~~under ~~Company~~the ~~was~~name ~~formed~~Brilliant Acquisition Corporation for the purpose of ~~acquiring,~~ engaging in a ~~share exchange, share reconstruction and amalgamation with, purchasing all or substantially all of the assets of, entering into contractual arrangements with, or engaging in any other similar~~ business combination ~~with one or more businesses or entities~~. On on June 23, 2023, Brilliant Acquisition Corporation, a British Virgin Islands company (prior to the Merger (as defined below) “Brilliant”, and following the Merger, a Delaware corporation “Nukkleus”), entered into an Amended and Restated Agreement and Plan of Merger (as amended by the First Amendment to the Amended and Restated Agreement and Plan of Merger on November 1, 2023, the “Merger Agreement”), by and among Brilliant BRIL Merger Sub, Inc., a Delaware corporation and wholly-owned subsidiary of Brilliant (“Merger Sub”), and Nukkleus Inc., a Delaware corporation (“Old Nukk”). Old Nukk (f/k/a Compliance & Risk Management Solutions Inc.) was formed on July 29, 2013 in the State of Delaware as a for-profit Company and established a fiscal year end of September 30. The Merger Agreement provided that, among other things, at the closing of the transactions contemplated by the Merger Agreement, Merger Sub merged with and into Old Nukk (the “Merger”), with Old Nukk surviving as a wholly-owned subsidiary of Brilliant. In connection with the Merger, Brilliant changed its name to “Nukkleus Inc.” (“Nukkleus” or “Combined Company”). The Merger and other transactions contemplated by the Merger Agreement are hereinafter referred to as the “Business Combination.” In connection with the Business Combination, Brilliant changed its name to “Nukkleus Inc.” The Business Combination was completed on December 22, 2023.

~~The Merger closed on December 22, 2023. In connection with the Merger, Brilliant changed its name to “Nukkleus Inc.”~~2

As a result of Business Combination, we became a financial technology company with the aim of providing blockchain-enabled technology solutions. From the consummation of the Business Combination until the change of management in September 2024, we operated in the technology business as a full-service transactions technology and advisory business providing end-to-end transactions technology solutions. We offered an advanced transactions platform for dealing and risk management with global liquidity and customizable leverage, where users have control over quote and liquidity strategies.

Effective February 9, 2026, the Company changed its name to “T3 Defense Inc.”

Historically, the Company, through its wholly owned subsidiary, provided software and technology solutions for the worldwide retail foreign exchange trading industry. The Company’s primary customer was Triton Capital Markets Ltd. (“TCM”) (formerly known as FXDD Malta Limited). Emil Assentato, the former CEO and a former director of the Company, is also the majority member of Max Q Investments LLC (“Max Q”), which is managed by Derivative Marketing Associates Inc. (“DMA”). Mr. Assentato is the sole owner and manager of DMA. Max Q owns 79% of Currency Mountain Malta LLC, which in turn is the sole shareholder of TCM. In order to define the services rendered to TCM, Nukkleus Limited, a wholly-owned subsidiary of the Company, entered into a General Services Agreement (“GSA”) with TCM in May 2016. The GSA provided that TCM would pay Nukkleus Limited a minimum of $1,600,000 per month. On September 30, 2024, the Company, TCM and FXDirectDealer LLC (“FXDD”) entered into a Release Agreement pursuant to which the parties confirmed that the GSA between the Company and TCM and the General Services Agreement dated May 24, 2016, as amended (“FXDD GSA”), between the Company and FDDD were terminated effective January 1, 2024. The parties further confirmed that there were no obligations or liabilities outstanding or owed between the parties as of September 30, 2024 and each party released and forever discharged the other party from any and all claims, demands, damages, actions, causes of action, or suits of any kind or nature whatsoever, both known and unknown, which have arisen or may arise from the GSA or the FXDD GSA.

The Company ~~has~~ historically operated its blockchain payment solutions through Digital RFQ Limited (“DRFQ”), a wholly owned subsidiary of the Match Financial Ltd (“Match”), a wholly owned subsidiary of the Company. On November 8, 2024, the Company entered into a Settlement Agreement and Release with Jamal Khurshid and Match providing that Match agreed to sell DRFQ to Mr. Khurshid or his nominee subject to the Company obtaining shareholder approval (the “Settlement Agreement”). As required by the Settlement Agreement, the Company, Match and Mr. Khurshid entered into a Share Purchase Agreement dated December 27, 2024 providing that the Company, subject to it obtaining shareholder approval, will sell DRFQ to Mr. Khurshid in consideration of £1,000. The Company ~~believes~~believed the sale of DRFQ was in the best interest of the Company due to continuing net loss generated by DRFQ ~~and the Company’s desire to focus on the defense sector~~.

As of August 2025, the Company determined that it no longer had a controlling financial interest in Digital RFQ due to loss of access to financial records. Accordingly, the Company deconsolidated DRFQ during the third quarter of fiscal year 2025. The Company was notified that on July 29, 2025, Match was placed into administration in the United Kingdom pursuant to the Insolvency Act 1986 resulting in the appointment of two administrators (the “Administrators”). The Administrators completed a pre-packaged sale of Match’s entire shareholding in DRFQ to Match Financial Holdings Limited, a newly formed entity owned by Mr. Khurshid, for nominal consideration of £102,000.

~~Following the appointment~~February in2026 ~~September~~Private 2024 of Menachem Shalom, our current chief executive officer and a director, we have transformed from a financial technology services provider into a strategic acquirer and operator of aerospace and defense (A&D) businesses. We are building a portfolio of mission-critical suppliers and advanced technology companies and strategic infrastructure opportunities across the defense, aerospace, and advanced manufacturing sectors across the United States, Israel, and Europe.Placement

On February 24, 2026, we entered into the Securities Purchase Agreement with a certain accredited investor, pursuant to which the investor agreed to purchase from the Company 400 units for an aggregate purchase price of $20,000,000, or a per unit price of $50,000, with each unit consisting of (i) one restricted share of Series B Preferred Stock and (ii) one and a half restricted Common Warrants to initially purchase up to 35,211 shares of Common Stock, subject to adjustment and exchange as described herein. Each share of Series B Preferred Stock has a Stated Value of $50,000 and is convertible into a number of shares of Common Stock (or pre-funded warrants in lieu thereof) equal to the Stated Value divided by the Initial Conversion Price. Upon the Company obtaining stockholder approval of the transactions contemplated by the Securities Purchase Agreement and the related agreements (“Stockholder Approval”), the Initial Conversion Price will be adjusted from $2.13 per share to the lower of (i) $2.13 per share and (ii) the price per share upon the effectiveness of the registration statement of which this prospectus is a part, (iii) the price per share upon the Company obtaining Stockholder Approval and (iv) the price per share upon applicability of Rule 144 as it relates to the sale of the Conversion Shares. The Initial Conversion Price is subject to further adjustment upon stock splits, distributions, reorganizations, reclassifications, change of control and the like, and is also subject to price-based anti-dilution adjustments for subsequent offerings made by the Company while the Series B Preferred Stock remains outstanding (subject to certain exempt issuances). Assuming an Initial Conversion Price of $2.13 per share, each share of Series B Preferred Stock is convertible into 23,474 shares of Common Stock (or pre-funded warrants in lieu thereof). The holder of the Series B Preferred Stock is entitled to 10,000 votes per each share of Series B Preferred Stock.

The Company is positioned as a strategic platform company focused on acquiring, integrating, and scaling high-impact businesses in the aerospace and defense industries. Our strategy targets Tier 2 and Tier 3 suppliers that form the industrial backbone of national security infrastructure, with particular emphasis on companies offering dual-use technologies, advanced AI applications, and critical manufacturing capabilities.

Recent Developments

Name and Ticker Symbol Change

Effective February 9, 2026, the Company changed its name from “Nukkleus Inc.” to “T3 Defense Inc.” by filing a certificate of correction to the Amendment to its Amended and Restated Certificate of Incorporation with the Secretary of State of the State of Delaware. The change in the name of the Company was effectuated pursuant to Section 242(d)(1) of the Delaware General Corporation Law.

In connection with the name change, the Company changed the ticker symbol of the Common Stock on Nasdaq from “NUKK” to “DFNS” and the ticker symbol of the Company’s public warrants on Nasdaq from “NUKKW” to “DFNSW”, effective February 9, 2026.

Nimbus Acquisition

On January 15, 2026, the Company consummated its acquisition (the “Nimbus Acquisition”) of 100% of Nimbus Drones Technologies and Marketing Ltd., an Israeli private company (“Nimbus”) specializing in professional unmanned aerial systems and services, pursuant to the terms of that certain Stock Purchase Agreement, dated January 15, 2026 (the “Nimbus Purchase Agreement”), by and among the Company, Nimbus and Elad Defense LLC (“Elad”). In connection with the closing of the Nimbus Acquisition, the Company issued to Elad as consideration (i) 1,850,000 shares of Common Stock and (ii) a $3,250,000 convertible 24-month note (the “Nimbus Note”) bearing 6% interest, which is convertible at the option of the holder at a fixed price of $2.00 per share. The Nimbus Note also prohibits the Company from issuing the holder shares that would result in the holder beneficially owning more than 4.99% of the outstanding shares of Common Stock.

Change in Independent Registered Public Accounting Firm

Effective as of January 14, 2026, the Company dismissed GreenGrowth CPAs (“GreenGrowth”) as the independent registered public accounting firm engaged to audit the Company’s financial statements and engaged Somekh Chaikin, a member firm of KPMG International (“Somekh Chaikin”), as the Company’s independent external auditors for the year ending December 31, 2025. See “Changes in and Disagreements with Accountants.”

Tiltan Acquisition

On December 30, 2025, the Company consummated its acquisition (the “Tiltan Acquisition”) of all of the issued and outstanding shares of Tiltan Software Engineering Ltd. (“Tiltan”) pursuant to a Stock Purchase Agreement, as amended (the “Tiltan Purchase Agreement”), among the Company, its wholly owned subsidiary Nukk Picolo Ltd. (“Nukk Picolo”), Tiltan and Arie Shafir (the “Tiltan Seller”), in consideration of NIS 47,600,000 (approximately $14,000,000). Pursuant to the Tiltan Purchase Agreement, the purchase price is payable in a combination of (i) cash equal to 75% of the purchase price (the “Cash Portion”), or NIS 35,700,000 (approximately $10,500,000), a portion of which (NIS 5,283,333, less NIS 666,667 retained by the Company as working capital for Tiltan) will be paid by the Company to the Tiltan Seller and the remainder of which is evidenced by a secured promissory note (the “Tiltan Note”) in the principal amount of NIS 29,750,000 (approximately $8,750,000), and (ii) shares of Common Stock equal to 25% of the purchase price (the “Stock Portion”), or NIS 11,900,000 (approximately $3,500,000). The remaining Cash Portion of NIS 29,750,000 (approximately $8,750,000) is payable by the Company in five installments at 36-day intervals until the final payment on June 29, 2026, with the first two installments each being reduced by NIS 666,667 for working capital to be retained by Tiltan. The cash payments are evidenced by the Note and secured by the pledge described below. As a result of the acquisition, Tiltan became an indirect wholly owned subsidiary of the Company.

In connection with the closing of the Tiltan Acquisition, the Company deposited 2,000,000 shares of Common Stock (the “Escrowed Shares”) into escrow with an escrow agent. On June 29, 2026, the escrow agent shall release to the Tiltan Seller shares of Common Stock having an aggregate value equal to 25% of the purchase price (NIS 11,900,000), calculated based on the market price of the Common Stock on said date. Any Escrowed Shares in excess of this amount shall be cancelled and returned to the Company. If the value of the Escrowed Shares on said date is less than 25% of the purchase price, the Company is required to either (i) issue additional shares of Common Stock to the Tiltan Seller or (ii) pay the Tiltan Seller the difference in cash, so that the Seller receives shares and/or cash having an aggregate value equal to 25% of the purchase price. as consideration that may be released to the Tiltan Seller in accordance with the Tiltan Purchase Agreement.

~~Also~~The inCommon ~~connection~~Warrants ~~with~~are ~~the~~immediately ~~closing~~exercisable ofon ~~the~~a ~~Tiltan~~cash ~~Acquisition,~~basis ~~the~~or ~~Company~~exchangeable ~~issued~~on ~~the~~a ~~Tiltan~~cashless ~~Note~~basis toand ~~the~~will ~~Tiltan~~expire ~~Seller. The Tiltan Note matures in~~ five ~~equal installments~~ (~~other~~5) ~~than~~years from the ~~first~~date ~~two~~of ~~installments~~issuance. ~~which~~Each ~~have~~Common Warrant ~~been~~will ~~reduced~~be byinitially ~~NIS~~exercisable ~~666,667~~ for ~~working~~one ~~capital~~share toof beCommon ~~retained~~Stock byat ~~Tiltan)~~an atInitial ~~36-day intervals~~Exercise ~~beginning~~Price onof ~~the~~$2.13 ~~36th~~per ~~day~~share. ~~following~~The ~~the~~Initial ~~closing~~Exercise Price ~~date~~is ~~until~~subject ~~the~~to ~~final~~price-based ~~payment~~anti-dilution ~~which~~adjustments isfor ~~due~~subsequent onofferings ~~June~~made ~~29,~~by ~~2026.~~the ~~The~~Company ~~Tiltan~~while ~~Note does~~the ~~not~~Common ~~bear~~Warrants ~~interest~~remain outstanding ~~unless~~(subject anto ~~Event~~certain ofexempt ~~Default~~issuances). ~~(as~~The ~~defined~~holder inof the ~~Tiltan~~Common ~~Note)~~Warrants ~~occurs,~~may inexchange ~~which case~~ the ~~outstanding~~Common ~~principal~~Warrants ~~amount shall~~on ~~bear~~a ~~interest~~cashless atbasis for ~~the~~a ~~rate~~number of ~~10%~~shares ~~per~~of ~~annum~~Common ~~from~~Stock ~~the~~determined ~~date~~by ofmultiplying ~~default~~the ~~until~~total ~~payment.~~number ~~Events~~ of ~~Default~~Warrant ~~include~~Shares ~~failure~~with respect to ~~timely~~which ~~make a~~the ~~monthly~~Common ~~installment~~Warrant is ~~payment~~then ~~within~~being ~~ten~~exercised ~~(10)~~by ~~business~~the ~~days~~Black ~~after~~Scholes ~~written~~Value ~~notice~~(as isdefined ~~received~~in ~~from~~ the ~~Tiltan~~Common ~~Seller,~~Warrant) ~~bankruptcy~~divided ofby the ~~Company~~ orlower ~~Nukk Picolo, material breach~~ of the ~~Tiltan~~two ~~Purchase~~closing ~~Agreement,~~bid ~~and cessation~~ prices of ~~business~~the ~~operations~~Common ~~for~~Stock ain ~~continuous~~the ~~period of~~two ~~twenty (20)~~ days. ~~Upon~~prior anthe ~~Event~~time of ~~Default~~such exercise, ~~the~~but ~~Tiltan~~in ~~Seller~~any ~~may~~event ~~declare~~not ~~all~~less ~~amounts~~than ~~due~~$0.01 ~~and~~(as ~~payable~~may ~~and~~be ~~exercise~~adjusted ~~remedies~~for ~~under the~~stock ~~Tiltan~~dividends, ~~Note~~subdivisions, or combinations and the ~~Pledge Agreement (as defined below~~like).

AsThe ~~security~~February ~~for~~2026 Private Placement is structured as a two-stage investment. At the initial closing, which occurred on February 26, 2026, the Company’s sold 200 units ~~payment~~for ~~obligations~~gross ~~under~~proceeds ~~the~~of ~~Tiltan~~$10 ~~Note~~million. ~~and~~The Purchaser agreed to purchase an additional 200 units for an additional investment of $10 million following (i) the ~~Tiltan~~effectiveness ~~Purchase~~of ~~Agreement~~the registration statement described below, ~~Nukk~~(ii) ~~Picolo~~stockholder ~~entered~~approval ~~into~~of athe ~~pledge~~issuance ~~agreement~~of (the ~~“Pledge~~transactions ~~Agreement”)~~contemplated ~~with~~by the ~~Tiltan~~Securities ~~Seller,~~Purchase Agreement as required pursuant to ~~which~~Nasdaq ~~Nukk~~rules, ~~Picolo~~(iii) ~~granted~~ the ~~Tiltan~~stock ~~Seller~~price ais ~~first-priority~~at ~~security~~least ~~interest~~$1.00 inand (iv) ~~all~~subject ~~100~~to ~~shares~~the condition that the value of ~~Tiltan~~the ~~acquired~~trading in the ~~Tiltan~~Company’s ~~Acquisition.~~stock ~~The~~on ~~security~~Nasdaq ~~interest~~for ~~shall~~the be10 ~~registered~~consecutive ~~with~~days preceding the second ~~Israeli~~closing ~~Registrar~~is ofat ~~Companies. Upon~~or ~~full~~above ~~payment~~$900,000 of(the ~~all~~“Second ~~amounts~~Closing ~~due~~Market ~~under~~Trading ~~the~~Value”), ~~Tiltan~~provided ~~Note~~that ~~and~~if the ~~Tiltan~~Second ~~Purchase~~Closing ~~Agreement~~Market Trading Value is less than $900,000, then there will be a proportionate reduction in the ~~pledge~~number ~~shall~~of units to be ~~released~~sold at the second closing.

~~Special~~Pursuant ~~Meeting~~to the Securities Purchase Agreement, the Company is required to seek stockholder approval as required by applicable Nasdaq rules. The Company has also granted the investor a right of ~~Stockholders~~participation in subsequent financings of the Company for a period of time following closing, subject to certain exempt issuances, and the Company has agreed not to issue securities for a period of time following the closing of the February 2026 Private Placement, subject to certain exempt issuances, including issuances pursuant to strategic transactions.

OnIn ~~December~~connection ~~16,~~with ~~2025~~the February 2026 Private Placement, the Company ~~held~~and the Selling Stockholder entered into a ~~special~~Registration ~~meeting~~Rights ofAgreement, ~~stockholders~~dated February 24, 2026 (the “~~Special~~Registration ~~Meeting~~Rights Agreement”). AtPursuant to the ~~Special~~terms ~~Meeting~~of the Registration Rights Agreement, the Company’s ~~stockholders~~is required ~~approved~~to register the resale of the Conversion Shares (iand any shares underlying the Pre-Funded Warrants, if any) and the ~~terms~~Warrant Shares. The Registration Rights Agreement requires the Company to register 250% of the Conversion Shares as of the date of the Securities Purchase Agreement based on the Initial Conversion Price and 250% of the Warrant Shares as of the date of the Securities Purchase Agreement, based on the Initial Exercise Price. The Company is required to prepare and file an initial registration statement (iithe “Initial Registration Statement”) with the ~~issuance~~Securities and Exchange Commission within 45 days of the date of the Securities Purchase Agreement (the “Filing Deadline”) and to use its best reasonable efforts to have the Initial Registration Statement declared effective within 75 days of the date of the Securities Purchase Agreement (the “Effectiveness Deadline”). In certain circumstances including, but not limited to, if the Company misses the Filing Deadline or the Effectiveness Deadline, then the Company will be required to pay to the Purchaser an amount in shares of Common Stock ~~upon~~or ~~exercise~~cash, at the Company’s discretion, as partial liquidated damages and not as a penalty, equal to the product of ~~certain~~1.5% ~~outstanding~~multiplied ~~warrants~~by the aggregate purchase price paid by the Selling Stockholders. Liquidated damages, if any, will accrue ~~(iii)~~and be paid on the ~~issuance~~earlier of the effective date of a resale registration statement registering the sale of the shares of Common Stock that may be issued in ~~connection~~lieu ~~with~~of cash or the ~~ELOC~~date ~~Purchase~~on ~~Agreement~~which ~~(as~~such ~~defined~~shares ~~below)~~can ~~and~~be sold pursuant to Rule 144 (ivthe “Registration Date”). If the ~~issuance~~ Company elects to pay liquidated damages in shares of Common Stock, the number of shares of Common Stock ~~upon~~issuable ~~conversion~~to the Selling Stockholders will be determined by dividing the aggregate amount of accrued liquidated damages by the ~~Company’s~~closing ~~outstanding~~price ~~Series~~of Athe ~~Preferred~~Common Stock on the trading market of the Common Stock on the day immediately prior to the Registration Date (the “LD Share Formula”).

~~Appointment~~In connection with the February 2026 Private Placement, the Company entered into a Placement Agency Agreement, dated February 24, 2026, with Dawson James Securities Inc. (“DJS”), pursuant to which DJS acted as the sole placement agent for the February 2026 Private Placement. In consideration for the foregoing, the Company has agreed to pay customary placement fees to DJS, including a cash fee equal to 3.5% of ~~Chief~~the ~~Financial~~gross ~~Officer~~proceeds raised in the February 2026 Private Placement and warrants equal to 7.5% of the securities purchased in the February 2026 Private Placement, and has also agreed to reimburse certain expenses of DJS incurred in connection with the February 2026 Private Placement.

~~On December 8, 2025, the Board~~Implications ~~appointed Morel Levi as the Chief Financial Officer~~ of ~~the~~Being ~~Company, effective as of December 8, 2025. Mr. Levi also serves as the Chief Financial Officer of Nukk Picolo and has entered into an employment agreement with Nukk Picolo. Mr. Levi receives~~ a ~~salary~~Smaller ofReporting ~~$7,500 per month for serving as the~~ Company~~’s Chief Financial Officer.~~

~~Initial~~We are ~~Public~~a ~~Offering~~“smaller reporting company” as defined in the Exchange Act. We continue to be a smaller reporting company even though we are no longer an emerging growth company. We may take advantage of ~~Indirect~~certain ~~Subsidiary~~of the scaled disclosures available to smaller reporting companies and will be able to take advantage of these scaled disclosures for so long as the market value of our voting and non-voting common stock held by non-affiliates is less than $250.0 million measured on the last business day of our second fiscal quarter, or our annual revenue is less than $100.0 million during the most recently completed fiscal year, and the market value of our voting and non-voting common stock held by non-affiliates is less than $700.0 million measured on the last business day of our second fiscal quarter.

On November 28, 2025, SC II Acquisition Corp. (“SC II”), a newly formed special purpose acquisition company and indirect subsidiary of the Company, consummated its initial public offering of 17,250,000 units (the “SC II Units”) at a price of $10.00 per SC II Unit, generating gross proceeds to SC II of $172,500,000. SC Capital II Sponsor LLC, a Delaware limited liability company and indirect subsidiary of the Company (“SC II Sponsor”), in which the Company holds a majority interest, is the sponsor of SC II and acquired 255,000 additional SC II Units (the “Sponsor Units”) at a price of $10.00 per Sponsor Unit in connection with the consummation of SC II’s initial public offering.

Annual Meeting of Stockholders

On November 6, 2025, the Company held its 2025 annual meeting of stockholders (the “Annual Meeting”). At the Annual Meeting, the Company’s stockholders approved (i) the election of Menachem Shalom, David Rokach, Tomer Nagar, Aviva Volodarsky and Reuven Yeganeh as directors, (ii) the ratification of the appointment of Somekh Chaikin, a member firm of KPMG International, as the Company’s independent external auditors for the year ending December 31, 2025, and (iii) the adoption of the Company’s 2025 Equity Incentive Plan and the authorization of 3,950,000 shares of Common Stock for issuance under the Company’s 2025 Equity Incentive Plan.

Implications of Being an Emerging Growth Company and a Smaller Reporting Company

We are an “emerging growth company” as defined in the Jumpstart Our Business Startups Act, or JOBS Act, and we may remain an emerging growth company for up to five years following the completion of this offering. For so long as we remain an emerging growth company, we are permitted and intend to rely on certain exemptions from various public company reporting requirements, including not being required to have our internal control over financial reporting audited by our independent registered public accounting firm pursuant to Section 404(b) of the Sarbanes-Oxley Act of 2002, or Sarbanes-Oxley Act, reduced disclosure obligations regarding executive compensation in our periodic reports and proxy statements, and exemptions from the requirements of holding a nonbinding advisory vote on executive compensation and any golden parachute payments not previously approved. In particular, in this prospectus, we have provided only two years of audited financial statements and have not included all of the executive compensation-related information that would be required if we were not an emerging growth company. Accordingly, the information contained herein may be different than the information you receive from other public companies in which you hold stock.

In addition, the JOBS Act provides that an emerging growth company can take advantage of an extended transition period for complying with new or revised accounting standards. This provision allows an emerging growth company to delay the adoption of some accounting standards until those standards would otherwise apply to private companies. We have elected to take advantage of the benefits of this extended transition period and, therefore, we are not subject to the same requirements to adopt new or revised accounting standards as other public companies that are not emerging growth companies; however, we may adopt certain new or revised accounting standards early. We would cease to be an emerging growth company upon the earliest to occur of: (i) the last day of the fiscal year in which we have $1.235 billion or more in annual revenue; (ii) the date on which we first qualify as a large accelerated filer under the rules of the SEC; (iii) the date on which we have, in any three-year period, issued more than $1.0 billion in non-convertible debt securities; and (iv) the last day of the fiscal year ending after the fifth anniversary of this offering.

We are also a “smaller reporting company” as defined in the Exchange Act. We may continue to be a smaller reporting company even after we are no longer an emerging growth company. We may take advantage of certain of the scaled disclosures available to smaller reporting companies and will be able to take advantage of these scaled disclosures for so long as the market value of our voting and non-voting common stock held by non-affiliates is less than $250.0 million measured on the last business day of our second fiscal quarter, or our annual revenue is less than $100.0 million during the most recently completed fiscal year, and the market value of our voting and non-voting common stock held by non-affiliates is less than $700.0 million measured on the last business day of our second fiscal quarter.

Risk Factors Summary

Investing in our common stock involves significant risks. You should carefully consider the risks described in the section titled “Risk Factors” immediately following this prospectus summary and elsewhere in this prospectus before making a decision to invest in our common stock. If we are unable to successfully address these risks and challenges, our business, financial condition, results of operations, or prospects could be materially and adversely affected. In such case, the trading price of our common stock would likely decline, and you may lose all or part of your investment. Below is a summary of some of the risks we face.

~~Risks Related to Our Business~~4

●Risks Related ~~Our~~to ~~unprecedented~~the ~~transformation~~Series ~~from~~B ~~financial~~Preferred ~~technology~~Stock ~~to aerospace~~ and ~~defense~~this ~~lacks~~Offering ~~any~~by ~~operational~~the ~~track~~Selling ~~record and may completely fail.~~Stockholders

● The conversion of Series B Preferred Stock and exercise of Common Warrants would substantially dilute existing stockholders and depress our stock price. We ~~are~~may ~~attempting~~not receive any proceeds from the exercise of the Common Warrants and future sales of Shares by the Selling Stockholders could also depress our stock price. ● The terms of the Series B Preferred Stock could prevent or delay transactions that stockholders may favor and the holder of our Series B Preferred Stock has additional voting power as compared to ~~integrate~~the ~~multiple~~holders ~~defense~~of ~~companies~~our ~~simultaneously~~Common ~~without~~Stock. ~~any~~The ~~aerospace~~conversion price adjustments and ~~defense~~anti-dilution ~~experience~~provisions of the Series B Preferred Stock and Common Warrants may require a significant amount of additional shares of common stock to be issued and registered.

●Risks Related ~~Our Chief Executive Officer’s commitments~~ to ~~other~~Our ~~companies~~Business ~~may limit his ability to devote full-time attention to our business~~ and ~~could~~the ~~result~~Defense ~~in competition or conflicts of interest, which could adversely affect our operations and financial performance.~~Industry

● IfThe weaudited doconsolidated ~~not~~financial ~~effectively~~statements ~~manage~~included ~~our~~in ~~growth~~this ~~and~~prospectus have been prepared assuming the ~~associated~~Company ~~demands~~will oncontinue ~~our~~as ~~operational,~~a ~~risk~~going ~~management,~~concern. ~~sales~~● We are attempting to integrate multiple defense companies simultaneously without any aerospace and ~~marketing,~~defense experience. Our unprecedented transformation from financial technology, ~~compliance~~to aerospace and ~~finance~~defense lacks any operational track record and ~~accounting~~may ~~resources,~~completely fail and our ~~business~~recent ~~may~~pivot befrom ~~adversely~~fintech ~~impacted~~to the defense sector exposes us to new operational, regulatory, and market risks for which we have limited prior experience.

	●	Our Chief Executive Officer’s commitments to other companies may limit his ability to devote full-time attention to our business and could result in competition or conflicts of interest, which could adversely affect our operations and financial performance.

	●	Our defense technology distribution agreements expose us to rapid technological obsolescence and intense competition from larger defense contractors with greater resources and established government relationships. We have an exclusive distribution agreement with an Israeli supplier, and any termination, non-renewal, or disruption in these relationships could severely impact our operations.

	●	Any significant disruption in our technology could adversely impact our brand and reputation and our business, operating results, and financial condition.

	●	We rely on third parties in critical aspects of our business, which creates additional risk.

	●	We lack the facility security clearances and cleared personnel required for 90% of U.S. defense contracts.

	●	We face overwhelming competition from established prime contractors and we must comply with complex defense regulations without any infrastructure.

	●	Our defense distribution business is subject to complex export control laws and regulations, including ITAR and EAR, and failure to comply could result in significant fines, loss of export privileges, and reputational damage. Export control violations could result in criminal prosecution and permanent debarment. The defense procurement process is lengthy, complex, and highly competitive, which may prevent us from achieving the revenue targets required under our distribution agreements.

	●	We face potential liability and indemnification obligations related to the defense products we distribute, which could expose us to significant financial losses.

●Risks Related Weto ~~have~~Geopolitical ~~divested our financial technology business~~ and ~~are~~Macroeconomic ~~now building a defense business, creating operational complexity and execution risk.~~Conditions

● The ongoing “Swords of Iron” war and the broader military conflict in the Middle East have had, and may continue to have, a material adverse effect on our Israeli operations, supply chains, personnel, and ability to execute our business strategy. The conflict has resulted in limitations on exports to Israel, attacks on defense companies by anti-Israeli organizations, and reputational risks that may impair our ability to conduct international business. ● Mandatory military reserve duty obligations have resulted in, and may continue to result in, significant personnel shortages that disrupt our operations, production schedules, and ability to fulfill contractual obligations. ● We ~~are~~do ~~subject~~not carry war risk insurance for our Israeli operations, and losses arising from military conflict would be entirely unrecovered. ● Our business partners, customers, and suppliers may invoke force majeure or otherwise fail to ~~heightened~~perform ~~operational~~their contractual obligations as a result of the conflict, which could disrupt our operations and ~~cybersecurity~~revenue. ● Rising global defense spending may not translate into revenue for our company, and shifts in government budget priorities could adversely affect demand for our products and services. ● U.S. trade policy, including tariffs and export restrictions, may increase our costs, disrupt our supply chains, and limit our market access. ● Intensifying great-power competition and the fragmentation of international trade and security frameworks create systemic risks to our business model. ● Our foreign ownership structure may permanently preclude classified U.S. defense programs.

●Risks Related ~~Our defense technology distribution agreements expose us~~ to ~~rapid~~Our ~~technological~~Financial ~~obsolescence~~Condition and ~~intense~~Existing ~~competition~~Capital ~~from larger defense contractors with greater resources and established government relationships.~~Structure

● ~~Our~~We ~~recent~~lack ~~pivot~~the ~~from~~financial ~~fintech~~infrastructure torequired ~~the~~for defense ~~sector~~contracting. ~~exposes~~● usThe price-based anti-dilution provisions in our convertible preferred stock may create a self-reinforcing cycle of dilution if our stock price declines. ● The substantial overhang of shares issuable upon conversion of preferred stock and exercise of outstanding warrants may depress our stock price regardless of our operating performance. ● We expect to ~~new~~issue ~~operational~~additional shares of Common Stock or other securities in the future to fund acquisitions and operations, ~~regulatory~~which would further dilute existing stockholders. ● Our stock price has been and may continue to be highly volatile, and ~~market~~investors ~~risks~~may ~~for~~not ~~which~~be weable ~~have~~to ~~limited~~resell ~~prior~~their ~~experience~~shares at or above the price at which they purchased them.

● Our business is heavily dependent on exclusive distribution agreements with two Israeli suppliers, and any termination, non-renewal, or disruption in these relationships could severely impact our operations.

● Our minimum purchase and revenue commitments under distribution agreements create financial risks, including potential cash flow strains and inventory overhang.

● We do not own the intellectual property for the defense technologies we distribute, making us entirely dependent on third-party suppliers for product development, quality, and availability.

● We rely on third parties in critical aspects of our business, which creates additional risk. Our ability to offer our services depends on relationships with other financial services institutions and entities, and our inability to maintain existing relationships or to enter into new such relationships could impact our ability to offer services to customers.

Risks Related to the Defense Industry

● We lack the facility security clearances and cleared personnel required for 90% of U.S. defense contracts.

● Export control violations could result in criminal prosecution and permanent debarment.

● We face overwhelming competition from established prime contractors.

● We must comply with complex defense regulations without any infrastructure.

● Our defense distribution business is subject to complex export control laws and regulations, including ITAR and EAR, and failure to comply could result in significant fines, loss of export privileges, and reputational damage.

● Dependence on government and homeland security customers exposes us to risks associated with budget constraints, procurement processes, and policy changes.

● ~~The~~We ~~defense~~are ~~procurement~~currently ~~process~~at isrisk ~~lengthy,~~of ~~complex,~~failing ~~and~~to ~~highly~~maintain ~~competitive,~~the ~~which~~minimum ~~may~~bid ~~prevent~~price usrequired ~~from~~by ~~achieving~~Nasdaq Listing Rules. ● We might not be able to consummate the second tranche of our recent financing. ● Star has the right to require the Company to exchange the Investment Note for all the shares of Star then held by the Company if the Common Stock is delisted. ● There is no assurance that we will achieve and maintain profitability or that our revenue ~~targets~~and ~~required~~business ~~under~~models will be successful. If our ~~distribution~~estimates ~~agreements~~or judgment relating to our critical accounting policies prove to be incorrect, our operating results could be adversely affected.

● We face potential liability and indemnification obligations related to the defense products we distribute, which could expose us to significant financial losses.

Risks Related to Our International Operations

● Our Israeli operations face active military conflict without war risk insurance.

● Operating across multiple jurisdictions creates irreconcilable legal conflicts.

● Our foreign ownership structure may permanently preclude classified U.S. defense programs.

● Geopolitical tensions, international conflicts, or changes in U.S.-Israel relations could disrupt our supply chain and restrict our ability to distribute defense technologies.

● We are subject to stringent U.S. and international regulations governing defense technologies, and non-compliance could result in fines, loss of licenses, or restrictions on our operations.

Risks Related to Our Financial Condition

● We have no meaningful revenue after terminating our largest customer.

● Our accumulated deficit and negative working capital raise substantial doubt about our ability to continue as a going concern.

● We lack the financial infrastructure required for defense contracting.

● Nasdaq delisting proceedings threaten our existence.

● There is no assurance that we will achieve and maintain profitability or that our revenue and business models will be successful.

● Changes in U.S. and foreign tax laws, as well as the application of such laws, could adversely impact our financial position and operating results.

● If our estimates or judgment relating to our critical accounting policies prove to be incorrect, our operating results could be adversely affected.

●

The nature of our business requires the application of complex financial accounting rules, and there is limited guidance from accounting standard setting bodies. If financial accounting standards undergo significant changes, our operating results could be adversely affected.

● Business metrics and other estimates are subject to inherent challenges in measurement, and our business, operating results, and financial condition could be adversely affected by real or perceived inaccuracies in those metrics.

●

As a public company, we are required to develop and maintain proper and effective internal controls over financial reporting, and any failure to maintain the adequacy of these internal controls may adversely affect investor confidence in our company and, as a result, the value of our stock.

● We might require additional capital to support business growth, and this capital might not be available or may require stockholder approval to obtain.

Risks Related to Our Employees and Other Service Providers

● In the event of employee or service provider misconduct or error, our business may be adversely impacted. The loss of one or more of our key personnel, or our failure to attract and retain other highly qualified personnel in the future, could adversely impact our business, operating results, and financial condition.

● The loss of one or more of our key personnel, or our failure to attract and retain other highly qualified personnel in the future, could adversely impact our business, operating results, and financial condition.

● Our culture emphasizes innovation, and if we cannot maintain this culture as we grow, our business and operating results could be adversely impacted.

Additional Risk Factors

● Cybersecurity requirements exceed our current capabilities and cyberattacks and security breaches of our systems, or those impacting our customers or third parties, could adversely impact our brand and reputation and our business, operating results and financial condition.

● Environmental liabilities could exceed our resources.

● Related party transactions create inherent conflicts.

● Acquisitions, joint ventures or other strategic transactions create certain risks and may adversely affect our business, financial condition or results of operations.

● Delaware law and our Amended and Restated Certificate of Incorporation and Amended and Restated Bylaws contain certain provisions, including anti-takeover provisions that limit the ability of stockholders to take certain actions and could delay or discourage takeover attempts that stockholders may consider favorable.

Corporate Information

We were incorporated ~~in the state of Delaware on May 24, 2019~~ under the name “Brilliant ~~Acqusition~~Acquisition Corporation”, a ~~BVI~~British Virgin company. The Company was formed for the purpose of acquiring, engaging in a share exchange, share reconstruction and amalgamation with, purchasing all or substantially all of the assets of, entering into contractual arrangements with, or engaging in any other similar business combination with one or more businesses or entities. on June 23, 2023, Brilliant entered into the Merger Agreement by and among Merger Sub and Old Nukk. Old Nukk (f/k/a Compliance & Risk Management Solutions Inc.) was formed on July 29, 2013 in the State of Delaware as a for-profit ~~Company~~ ~~and established a fiscal year end of September 30~~Company. The Merger Agreement provided that, among other things, at the closing of the transactions contemplated by the Merger Agreement, Merger Sub merged with and into Old Nukk, with Old Nukk surviving as a wholly-owned subsidiary of Brilliant. The Merger closed on December 22, 2023. In connection with the Merger, Brilliant changed its name to “Nukkleus Inc.” Effective February 9, 2026, the Company changed its name to “T3 Defense Inc.”

Our principal executive offices are located at 575 Fifth Avenue, 14th Floor, New York, New York 10017. Our main telephone number is (646) 257-4214. WeThe Company also has an office at 5 Hagvish, Netanya, Israel. maintain a website at www.t3dfns.com. Information contained on or accessible through our website is not, and should not be considered, part of, or incorporated by reference into, this prospectus and you should not consider any information contained on, or that can be accessed through, our website as part of this prospectus in deciding whether to purchase our securities.

THE OFFERING

This prospectus relates to the resale from time to time by the Selling Stockholders of up to 1630,~~787~~000,~~988~~000 Shares, which consists of ~~4,770,340~~(i) ~~Common Shares and~~ up to 1226,~~017~~666,~~648~~667 ~~Warrant~~ Conversion Shares issuable upon the ~~exercise~~conversion of the ~~Warrant.~~Series ~~The~~B ~~Common~~Preferred ~~Shares~~Stock, and ~~the~~(ii) ~~Warrant~~up ~~were~~to ~~received~~3,333,333 byWarrant ~~Star~~Shares 26issuable asupon the exercise ~~consideration~~of inthe ~~connection~~Common ~~with~~Warrants. ~~the~~The ~~Acquisition~~Selling ~~and~~Stockholders ~~were~~agreed ~~subsequently~~to ~~assigned~~purchase bythe ~~Star~~shares 26of toSeries ~~the~~B ~~Selling~~Preferred ~~Stockholders~~Stock ~~pro~~and ~~ratably~~the ~~based on~~Common ~~their~~Warrants ~~equity~~pursuant to ~~ownership~~the inSecurities ~~Star~~Purchase 26Agreement.

Common Stock offered by the Selling Stockholders		Up to 1630,~~787~~000,~~988~~000 Shares, which consists of 4(i) up to 26,~~770~~666,~~340~~667 ~~Common~~Conversion Shares issuable upon the conversion of the Series B Preferred Stock, and (ii) up to 123,~~017~~333,~~648~~333 Warrant Shares issuable upon the exercise of the ~~Warrant~~Common Warrants.
Common Stock outstanding before Offering:		2468,~~397~~270,~~814~~525
Shares of Common Stock to be outstanding after this offering (assuming all shares of Common Stock are issued upon exercise)		41,185,802
Shares of Common Stock to be outstanding after this offering		98,270,525
Use of Proceeds		All of the Shares sold pursuant to this prospectus will be offered and sold by the Selling Stockholders. We will not receive any proceeds from such sales. We would, however, receive proceeds upon the exercise of the ~~Warrant~~Common Warrants held by the Selling Stockholders which, if such ~~Warrant~~Common isWarrants are exercised for cash in full, would be approximately $~~18,026,472~~15 million. Proceeds, if any, received from the exercise of the ~~Warrant~~Common Warrants will be used for working capital and general corporate purposes. No assurances can be given that any of the ~~Warrant~~Common Warrants will be exercised. See “Use of Proceeds.”
Restrictions on securities		Under the terms of the ~~Warrant~~Series B Preferred Stock and the Common Warrants, a holder may not convert the shares of Series B Preferred Stock or exercise the ~~Warrant~~Common Warrants to the extent (but only to the extent) such holder or any of its affiliates would beneficially own in excess of 9.9% or 9.99%, respectively, of the number of shares of Common Stock outstanding after giving effect to the issuance of ~~Warrant~~Conversion Shares ~~issuable~~or Warrant Shares upon such conversion or exercise, ofas ~~the~~applicable, ~~Warrant~~and as calculated in accordance with Section 13(d) of the Securities Exchange Act.
Terms of Offering		~~Each~~The Selling ~~Stockholder~~Stockholders will determine when and how it will sell the Shares offered in this prospectus, as described in “Plan of Distribution.”
Risk Factors		An investment in our securities involves a high degree of risk and could result in a loss of your entire investment. Prior to making an investment decision, you should carefully consider all of the information in this prospectus and, in particular, you should evaluate the risk factors set forth under the caption “Risk Factors.”
Nasdaq Trading Symbol		“DFNS.”

The number of shares of Common Stock outstanding after this offering is based on 2968,~~168~~270,~~154~~525 shares of Common Stock issued and outstanding as of ~~January~~May 2629, 2026 and ~~excludes~~ excludes the following:

● ~~4,823~~Shares ~~shares~~ of Common Stock issuable upon the ~~exercise~~conversion of outstanding ~~stock~~Series ~~options~~B ~~having~~Preferred aStock ~~weighted~~in ~~average~~excess ~~exercise~~of ~~price~~the number of ~~$550.60~~shares ~~per~~of ~~share~~Common Stock registered pursuant to this registration statement;

● ~~4,643,560~~Shares ~~shares~~ of Common Stock issuable upon the exercise of outstanding ~~warrants~~Common ~~having~~Warrants ain ~~weighted~~excess ~~exercise~~of ~~price~~the number of ~~$21.02~~shares ~~per~~of ~~share;~~Common ~~and~~Stock registered pursuant to this registration statement;

9● 4,823 shares of Common Stock issuable upon the exercise of outstanding stock options having a weighted average exercise price of $550.60 per share; and

●

13,840,994 shares of Common Stock issuable upon the exercise of outstanding warrants having a weighted exercise price of $7.24 per share.

RISK FACTORS

An investment in our securities involves a high degree of risk. This prospectus contains the risks applicable to an investment in our securities. Prior to making a decision about investing in our securities, you should carefully consider the specific factors discussed under the heading “Risk Factors” in this prospectus and/or incorporated by reference into this prospectus from our most recent Annual ~~Report on Form 10-K, the Transition~~ Report on Form 10-~~KT and in our Quarterly Reports on Form 10-Q for the quarterly periods ended subsequent to our filing of such Annual Report on Form 10-~~K, as well as any ~~amendments thereto reflected in~~ subsequent filings with the SEC. The risks and uncertainties we have described are not the only ones we face. Additional risks and uncertainties not presently known to us or that we currently deem immaterial may also affect our operations. The occurrence of any of these known or unknown risks might cause you to lose all or part of your investment in the offered securities.

Risks Related to the Series B Preferred Stock and this Offering by the Selling Stockholders

The conversion of Series B Preferred Stock and exercise of Common Warrants would substantially dilute existing stockholders and depress our stock price.

This offering will likely result in a substantial increase in outstanding shares of Common Stock that will significantly dilute the ownership interests and voting power of existing stockholders. The conversion of the 400 shares of Series B Preferred Stock issued or issuable pursuant to the Securities Purchase Agreement would result in the issuance of a substantial number of shares of Common Stock. Assuming an Initial Conversion Price of $2.13 per share, the conversion of the 400 shares of Series B Preferred Stock would result in the issuance of 9,389,670 shares of Common Stock. Additionally, assuming a cash exercise at an Initial Exercise Price of $2.13 per share, the exercise of the Common Warrants issued or issuable pursuant to the Securities Purchase Agreement would result in the issuance of up to 14,084,506 additional shares of Common Stock. This would result in the issuance of 23,474,176 shares of Common Stock, representing approximately 34% of our current outstanding shares.

Furthermore, the Initial Conversion Price of the Series B Preferred Stock will be adjusted upon receipt of Stockholder Approval, if obtained, to the lower of (i) $2.13 per share, (ii) the price per share upon effectiveness of the Initial Registration Statement required to be filed pursuant to the Registration Rights Agreement, (iii) the price per share upon the Corporation obtaining Stockholder Approval and (iv) the price per share upon applicability of Rule 144 as it relates to the sale of the Conversion Shares.

In addition, the Initial Conversion Price of the Series B Preferred Stock and the Initial Exercise Price are both subject to adjustments upon stock splits, distributions, reorganizations, reclassifications, change of control and the like, and are also subject to price-based anti-dilution adjustments for subsequent offerings made by the Company while the securities remain outstanding.

These adjustments could result in a number of factors which could adversely affect the other stockholders of the Company. Due to our obligations under the Registration Rights Agreement, we will have to file another registration statement to register these shares, as we are contractually obligated to registeradditional shares of our Common Stock that may be issuable upon the conversion of the Series B Preferred Stock and the exercise of the Common Warrants issued or issuable pursuant to the Securities Purchase Agreement. If we do not have sufficient authorized share capital, we will have to undergo the time and expense of filing another proxy statement and calling for a special shareholders meeting to increase the number of authorized shares of common stock. These delays might cause the Company to incur additional liquidated damages of 1.5% multiplied by the aggregate purchase price paid by the Selling Stockholders.

We may not receive any proceeds from the exercise of the Common Warrants.

The Common Warrants have an Initial Exercise Price of $2.13 per share, which is above our recent trading prices. Unless our stock price increases substantially above the exercise price, holders of Common Warrants are unlikely to exercise the Common Warrants for cash. Additionally, the Common Warrants contain provisions allowing for cashless exercise based on a Black-Scholes formula, in which case we would not receive any cash proceeds upon exercise. If our stock price does not appreciate significantly or if holders choose cashless exercise, we will not receive the potential proceeds from exercises of Common Warrants that we may need to fund our operations and acquisitions.

Future sales of Shares by the Selling Stockholders could depress our stock price.

Once this registration statement is declared effective, the Selling Stockholders will be able to sell up to 30,000,000 Shares in the public market. Sales of substantial amounts of our Common Stock, or the perception that such sales could occur, could adversely affect market prices of our Common Stock and could impair our ability to raise capital through future stock offerings. We cannot predict the effect, if any, that future sales of shares of our Common Stock or the availability of shares of our Common Stock for future sale will have on the market price of our Common Stock.

The terms of the Series B Preferred Stock could prevent or delay transactions that stockholders may favor.

The Series B Preferred Stock has certain protective provisions that require holder consent for fundamental transactions. These provisions could prevent or delay transactions such as a merger, acquisition, or sale of assets that other stockholders may view as beneficial. Additionally, the liquidation preference of $50,000 per share means that in any liquidation event, the holders of Series B Preferred Stock would receive their preference amount before holders of Common Stock receive any distribution, potentially leaving nothing for holders of Common Stock.

Certain existing securityholders purchased our securities at a price below the current trading price of such securities, and may experience a positive rate of return based on the current trading price. Future investors in us may not experience a similar rate of return.

Certain of our securityholders, including the Selling Stockholders, acquired our securities at prices below the current trading prices of our Common Stock and may experience a positive rate of return. The Selling Stockholders may realize a positive rate of return on the sale of their Shares covered by this prospectus even if the market price per share of our Common Stock is below the Initial Exercise Price of the Common Warrants of $2.13 or below the Initial Conversion Price of the Series B Preferred Stock. Public securityholders may not experience a similar rate of return on the securities they purchased due to differences in the purchase prices they paid and the trading price at the time of sale and may instead experience a negative rate of return on their investment.

Risks Related to Our Business

The audited consolidated financial statements included in this prospectus have been prepared assuming the Company will continue as a going concern.

The Company recorded negative working capital of approximately $69 million (which includes $56 million of stock purchase warrant liabilities which will not require any cash to extinguish) and stockholders’ equity of $42.5 million as of March 31, 2026; a net operating loss of $3.8 million and net cash used in operations of $4.9 million for the quarter ended March 31, 2026. Absent any other action, the Company will require additional liquidity to continue its operations for the next 12 months.

After evaluating these conditions, management concluded that its plans, when considered in aggregate, alleviate substantial doubt about the Company’s ability to continue as a going concern. Those plans include: (i) cancellation of a previously contemplated $16 million intercompany note obligation arising from the acquisition of Star 26, which has been mutually agreed to be of no force or effect; (ii) the Company’s existing unrestricted cash balance of approximately $7.0 million, sufficient to fund projected operating expenses of its portfolio companies through the look-forward period; (iii) an active Equity Line of Credit (“ELOC”) with Esousa Holdings, LLC — legally binding, SEC-registered, and shareholder-approved — providing estimated monthly drawdown capacity of approximately $6.6 million, which exceeds the Company’s projected annual operating cash needs; (iv) the Company’s majority-owned subsidiaries, including Rimon Ltd. and Nimbus Robotics, which are cash-positive and require no capital support from the Company; (v) management’s ongoing efforts to assist subsidiaries in securing or expanding bank credit facilities; (vi) the option to satisfy certain obligations through issuance of equity in lieu of cash; and (vii) the Company’s demonstrated track record of capital markets execution, including the completion of PIPE transactions raising approximately $20 million in the prior twelve months.

In addition, management believes that the completion of the sale by Water IO Ltd., a majority-owned indirect subsidiary of the Company, of Zorro Net Ltd. to BiomX Inc., pursuant to which Water IO received 1,300,000 shares of BiomX common stock and a $1.25 million promissory note due within three months, may provide additional liquidity and financial flexibility to the Company and its subsidiaries. The sale occurred on April 10, 2026.

Our unprecedented transformation from financial technology to aerospace and defense lacks any operational track record and may completely fail.

We have ~~are~~recently ~~attempting~~completed aour ~~complete~~ business model transformation ~~with no prior experience in the defense industry~~. This transformation required or requires us to: divest our existing operations; acquire and integrate multiple defense companies; establish new regulatory compliance systems for ITAR, DFARS, and other regulations; obtain facility security clearances that typically take 12-18 months; recruit cleared personnel in a competitive market; and develop prime contractor relationships from scratch, all within a short timeframe.

We have never managed a defense program, never held a government contract, never obtained security clearances, and have no established relationships with prime defense contractors. The defense industry operates under fundamentally different business models, regulations, and customer requirements than financial services. There is no assurance that we will successfully execute this transformation or generate any returns from the substantial capital being deployed. Our complete lack of defense industry track record means investors are funding an entirely unproven strategy that may result in total loss of invested capital.

We are attempting to integrate multiple defense companies simultaneously without any aerospace and defense experience.

We have recently acquired Star 26, Tiltan, Nimbus and ~~Nimbus~~ITS, and are constantly pursuing other targets, all within a compressed timeframe and without any defense industry acquisition or integration experience. Each acquisition involves different countries (U.S., Israel, Europe), currencies, regulatory regimes, and business models. Managing simultaneous integrations of this magnitude typically requires extensive expertise, dedicated integration teams, and proven playbooks—none of which we possess.

Historical data shows that 70-90% of acquisitions fail to achieve projected synergies, and our complete lack of industry experience significantly increases this failure risk. We may discover post-closing that acquired technologies are obsolete, customer relationships are not transferable, key employees depart, or compliance violations trigger penalties. The complexity of simultaneous multi-jurisdictional defense acquisitions without relevant experience creates extreme execution risk.

Our Chief Executive Officer’s commitments to other companies may limit his ability to devote full-time attention to our business and could result in competition or conflicts of interest, which could adversely affect our operations and financial performance.

Menachem Shalom, our Chief Executive Officer, also serves as the Chief Executive Officer of Star 26, Motomova Inc., and Hold Me Ltd. These roles require Mr. Shalom to devote significant time and resources to the management and strategic direction of these other companies, which may reduce the time and attention he can dedicate to the Company. This divided focus could impair our ability to execute our business strategy, particularly as we transition to a defense-focused company following the acquisition of Star 26 ~~and the sale of our Digital RFQ (DRFQ) business~~. The competing demands on Mr. Shalom’s time may delay critical decision-making, hinder our ability to respond to market opportunities, or weaken our operational oversight, all of which could materially adversely affect our business, financial condition, and results of operations.

Furthermore, the businesses of Star 26, Motomova Inc., and Hold Me Ltd. may operate in sectors or pursue opportunities that compete with our current or future operations. While Star 26 is now our wholly-owned subsidiary, Motomova Inc. and Hold Me Ltd. are separate entities with potentially divergent interests. Mr. Shalom’s involvement in these companies could lead to conflicts of interest, including the allocation of business opportunities, resources, or strategic priorities that may favor these other entities over the Company. Any such competition or conflicts could harm our competitive position, limit our growth prospects, and negatively impact the value of our securities.

If we do not effectively manage our growth and the associated demands on our operational, risk management, sales and marketing, technology, compliance and finance and accounting resources, our business may be adversely impacted.

In our recent acquisitions, including our acquisitions of Star 26, Tiltan and Nimbus, our business has become increasingly complex by expanding the services we offer to include financial services and payment processing services. To effectively manage and capitalize on our growth, we must continue to expand our information technology and financial, operating, and administrative systems and controls, and continue to manage headcount, capital, and processes efficiently. Our continued growth could strain our existing resources, and we could experience ongoing operating difficulties in managing our business as it expands across numerous jurisdictions, including difficulties in hiring, training, and managing an employee base. Failure to scale and preserve our company culture with growth could harm our future success, including our ability to retain and recruit personnel and to effectively focus on and pursue our corporate objectives. If we do not adapt to meet these evolving challenges, or if our management team does not effectively scale with our growth, we may experience erosion to our brand, the quality of our products and services may suffer, and our company culture may be harmed. Moreover, the failure of our systems and processes could undermine our ability to provide accurate, timely, and reliable reports on our financial and operating results, including the financial statements provided herein, and could impact the effectiveness of our internal controls over financial reporting. In addition, our systems and processes may not prevent or detect all errors, omissions, or fraud, though we have experienced no such material errors, omissions or fraud in the past. For example, our employees may fail to identify transaction errors or fraudulent information provided by our customers. Any of the foregoing operational failures could lead to noncompliance with laws, loss of operating licenses or other authorizations, or loss of bank relationships that could substantially impair or even suspend company operations.

We intend to continue to develop our technology, in particular our blockchain-enabled payment processing offering. Successful implementation of this strategy may require significant expenditures before any substantial associated revenue is generated and we cannot guarantee that these increased investments will result in corresponding and offsetting revenue growth. Our growth may not be sustainable and depends on our ability to retain existing customers, attract new customers, expand product offerings, and increase processed volumes and revenue from both new and existing customers.

The future growth of our business depends on its ability to retain existing customers, attract new customers as well as getting existing customers and new customers to increase the volumes processed through our payments platform and therefore grow revenue. Our customers are not subject to any minimum volume commitments and they have no obligation to continue to use our services, and we cannot be sure that customers will continue to use our services or that we will be able to continue to attract new volumes at the same rate as we have in the past.

A customer’s use of our services may decrease for a variety of reasons, including the customer’s level of satisfaction with our products and services, the expansion of business to offer new products and services, the effectiveness of our support services, the pricing of our products and services, the pricing, range and quality of competing products or services, the effects of global economic conditions, regulatory or financial institution limitations, trust, perception and interest in foreign exchange and payment processing services and in our products and services, or reductions in the customer’s payment and transfer activity. Furthermore, the complexity and costs associated with switching to a competitor may not be significant enough to prevent a customer from switching service providers, especially for larger customers who commonly engage more than one payment service provider at any one time.

Any failure by us to retain existing customers, attract new customers, and increase revenue from both new and existing customers could materially and adversely affect our business, financial condition, results of operations and prospects. These efforts may require substantial financial expenditures, commitments of resources, developments of our processes, and other investments and innovations.

1112

We have divested our financial technology business and are now building a defense business, creating operational complexity and execution risk.

We ~~completed the sale of our~~ ~~Digital RFQ business to its former management and~~ are now focused on acquiring and integrating defense companies. This dual-track strategy has required and may continue to require management attention and resources across divergent activities, including: negotiating divestiture terms while managing acquisition integrations; maintaining legacy compliance obligations while implementing new defense regulations; supporting existing financial services customers during transition while pursuing defense customers; and managing employee uncertainty across both divesting and acquiring operations. The complexity of completing divestitures and acquisitions within a short timeframe significantly increases execution risk and the potential for value destruction in both transactions.

We are subject to heightened operational and cybersecurity risks.

We are subject to heightened operational and cybersecurity risks. Many of our employees work from their homes or other non-company dwellings. Technologies in our employees’ and service providers’ homes and shared office spaces may not be as robust and could cause the networks, information systems, applications, and other tools available to employees and service providers to be more limited or less reliable. Further, the security systems in place at our employees’ and service providers’ homes and shared office spaces may be less secure than those used in corporate offices, and while we have implemented technical and administrative safeguards to help protect our systems when our employees and service providers work from home, we may be subject to increased cybersecurity risk which could expose us to risks of data or financial loss, and could disrupt our business operations. There is no guarantee that the data security and privacy safeguards we have put in place will be completely effective or that we will not encounter risks associated with employees and service providers accessing company data and systems remotely.

Our defense technology distribution agreements expose us to rapid technological obsolescence and intense competition from larger defense contractors with greater resources and established government relationships.

The defense drone payload market is characterized by rapid technological advancement and intense competition from established defense contractors such as Lockheed Martin, Raytheon, and Northrop Grumman, as well as specialized drone companies like AeroVironment and Kratos Defense. These competitors possess significantly greater financial resources, established relationships with government procurement officials, and proven track records in defense contracting. BladeRanger’s patent-pending autonomous drone navigation technology, while promising, faces competition from well-funded competitors who may develop superior technologies or secure key government contracts that could limit our market access. Additionally, the defense technology sector is subject to rapid obsolescence, and any failure by BladeRanger to continue innovating or maintain technological superiority could render our distribution rights less valuable or unmarketable.

Our recent pivot from fintech to the defense sector exposes us to new operational, regulatory, and market risks for which we have limited prior experience.

We have recently transitioned our business focus from financial technology services to the distribution of advanced defense technologies, primarily through exclusive distribution agreements with Israeli-based companies. This pivot represents a significant shift in our operations, requiring us to develop new expertise in the defense and homeland security markets, including sales, marketing, compliance, and supply chain management tailored to highly regulated industries. Our management team and employees have limited experience in the defense sector, which may result in challenges adapting to industry-specific practices, customer requirements, and competitive dynamics. Failure to effectively manage this transition could lead to operational inefficiencies, delays in fulfilling distribution obligations, or inability to capitalize on market opportunities, adversely affecting our business, financial condition, and results of operations.

Our business is heavily dependent on an exclusive distribution agreement with an Israeli suppliers, and any termination, non-renewal, or disruption in this relationship could severely impact our operations.

Our current business model relies almost entirely on an exclusive U.S. distribution agreement executed in August 2025 with BladeRanger Ltd. for drone payload systems. This agreement grants us rights limited to the U.S. defense and homeland security markets and imposes minimum purchase or revenue commitments (e.g., 5, 10, and 15 payloads in Years 1-3). Failure to meet these commitments could result in termination of the agreement, loss of exclusivity, or penalties, forcing us to seek alternative suppliers on less favorable terms or cease operations in these product lines. Any disputes with our suppliers, changes in their business strategies, or external factors affecting their ability to supply products (such as production delays or quality issues) could disrupt our inventory, delay deliveries to customers, and lead to lost revenue or reputational damage.

Our minimum purchase and revenue commitments under distribution agreements create financial risks, including potential cash flow strains and inventory overhang.

The BladeRanger agreement requires us to meet escalating minimum commitments, starting at 5 payloads in Year 1 and increasing thereafter. If market demand falls short—due to economic downturns, technological shifts, or competitive pressures—we may be forced to purchase excess inventory or incur shortfall penalties, straining our liquidity and working capital. Excess inventory could lead to obsolescence write-offs if products become outdated before sale. Our ability to finance these commitments depends on generating sufficient cash flows or accessing capital markets, and failure to do so could lead to defaults, termination of agreements, or dilution of shareholder equity through additional financing.

Intellectual property risks associated with distributed technologies could lead to infringement claims or loss of competitive advantages.

While we distribute products incorporating patent-pending technologies (e.g., BladeRanger’s autonomous drone navigation), we do not own the underlying intellectual property, relying instead on our suppliers’ protections. Third parties may challenge the validity of these patents or assert infringement claims against us or our customers, potentially resulting in costly litigation, injunctions, or indemnity obligations. If our suppliers fail to defend their IP adequately, or if we inadvertently violate others’ rights during distribution, we could face damages, product recalls, or restrictions on sales. Moreover, the defense industry’s emphasis on proprietary technologies heightens the risk of trade secret misappropriation or cybersecurity breaches, which could compromise sensitive information and damage our relationships with suppliers and customers.

Supply chain vulnerabilities, including reliance on foreign manufacturing, could increase costs and disrupt operations.

Our products are manufactured in Israel, exposing us to risks such as currency fluctuations, tariffs, trade barriers, or global supply chain disruptions (e.g., from pandemics, natural disasters, or raw material shortages). Delays in international shipping or customs clearance could prevent timely delivery to U.S. customers, leading to contract cancellations or penalties. As a distributor, we have limited control over our suppliers’ production processes, quality assurance, or cost structures. BladeRanger’s reported 237% revenue growth in 2024 may strain its capacity to scale production. Any increases in supplier costs passed on to us could erode our margins, and inability to pass these on to customers could reduce competitiveness.

Market acceptance of our distributed products is uncertain, and failure to achieve projected demand could impair our growth prospects.

The success of our business depends on the adoption of BladeRanger’s drone payloads in the U.S. defense market, which may be influenced by factors beyond our control, such as evolving threat landscapes, budget allocations for unmanned systems, or preferences for integrated solutions. If these technologies do not meet customer expectations for performance, reliability, or integration, or if alternative solutions gain traction, demand could be lower than anticipated. Our projections assume growth aligned with our suppliers’ innovations, but actual market penetration may vary, particularly given BladeRanger’s long history since 1968 contrasted with potential skepticism toward newer distributors like us. Low demand could hinder our ability to meet revenue commitments, resulting in financial losses and challenges in scaling operations.

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We do not own the intellectual property for the defense technologies we distribute, making us entirely dependent on third-party suppliers for product development, quality, and availability.

The defense technologies we distribute remain the intellectual property of BladeRanger. We have no control over product development, manufacturing quality, delivery schedules, or pricing of the underlying technology. Any disruption in our relationships with these suppliers, their inability to deliver products, or changes in their business strategies could severely impact our ability to generate revenue from these agreements.

Any significant disruption in our technology could adversely impact our brand and reputation and our business, operating results, and financial condition.

During our transformation period, we are building new technology infrastructure to support defense operations and have divested our legacy financial technology systems. Our reputation and ability to grow our defense business depends on our ability to develop and maintain systems that meet defense industry standards for reliability, scalability, and performance, including compliance with DFARS cybersecurity requirements and maintaining systems capable of handling classified information processing once we obtain necessary clearances. The proper functioning of our future defense products and services will depend on secure networks, encrypted communications, and systems that meet government security standards.

Our systems, the systems of our third-party service providers and partners, and defense networks we will interact with, have experienced from time to time and may experience in the future service interruptions or degradation because of hardware and software defects or malfunctions, distributed denial-of-service and other cyberattacks, insider threats, break-ins, sabotage, human error, vandalism, earthquakes, hurricanes, floods, fires, and other natural disasters, power losses, disruptions in telecommunications services, fraud, military or political conflicts, terrorist attacks, computer viruses or other malware, or other events. In addition, extraordinary site usage could cause our computer systems to operate at an unacceptably slow speed or even fail. Some of our systems, particularly those we have acquired from Star 26 and Tiltan, or the systems of our third-party service providers and partners are not fully redundant, and our or their disaster recovery planning may not be sufficient for all possible outcomes or events.

If any of our systems, or those of our third-party service providers, are disrupted for any reason, our defense products and services may fail, resulting in unanticipated disruptions, slower response times and delays in our services. For defense contracts, system failures could result in program delays, cost overruns, performance penalties, or contract terminations. This could lead to missed contract milestones, incomplete or inaccurate program reporting, loss of sensitive government information, increased demand on limited program management resources, government claims, and complaints with regulatory organizations, lawsuits, or enforcement actions. A prolonged interruption in the availability or reduction in the availability, speed, or functionality of our products and services could harm our business. Frequent or persistent interruptions in our services could cause current or potential defense customers or partners to believe that our systems are unreliable, leading them to select other contractors or to avoid or reduce the use of our products and services, and could permanently harm our reputation and brands in the defense community. Moreover, to the extent that any system failure or similar event results in damages to our customers or their programs, these customers or the government could seek significant compensation or contractual penalties from us for their losses, and those claims, even if unsuccessful, are likely to be time-consuming and costly for us to address. Problems with the reliability or security of our systems would harm our reputation, and damage to our reputation and the cost of remedying these problems could negatively affect our business, operating results, and financial condition. In addition, we are continually developing our information systems and technologies to meet defense industry requirements. Implementation of new systems and technologies is complex, expensive, time-consuming, and may not be successful. If we fail to timely and successfully implement new information systems and technologies, or improvements or upgrades to existing information systems and technologies, or if such systems and technologies do not operate as intended, it could have an adverse impact on our business, internal controls (including internal controls over financial reporting), operating results, and financial condition. Because we will be subject to defense regulation in multiple jurisdictions, frequent or persistent interruptions could also lead to regulatory scrutiny, significant fines and penalties, potential debarment, and mandatory and costly changes to our business practices, and ultimately could cause us to lose facility security clearances or government contracts that we need to operate, or prevent or delay us from obtaining additional clearances and contracts that may be required for our business.

We rely on third parties in critical aspects of our business, which creates additional risk. Our ability to offer our services depends on relationships with other financial services institutions and entities, and our inability to maintain existing relationships or to enter into new such relationships could impact our ability to offer services to customers.

As we build our defense business, we will depend on relationships with prime defense contractors, specialized subcontractors, and government-approved suppliers. We will depend on various third-party partners including prime contractors who control access to major defense programs, cleared facilities for classified work, and specialized defense supply chains.

To participate in defense programs, we must establish relationships with prime contractors and other defense companies for teaming agreements, joint ventures, and subcontracting opportunities. Major primes like Lockheed Martin, Boeing, and Raytheon control the majority of defense spending and often prefer working with established partners. Our ability to win defense contracts depends on our ability to establish these critical relationships despite our lack of track record.

Also, critical aspects of our defense technology will rely on third-party technologies, including specialized defense components, ITAR-controlled technologies, and government-furnished equipment. Our lack of established relationships in the defense industry and foreign ownership structure may be an impediment to our ability to establish partnerships with major defense contractors. Should potential partners refuse to work with us, we would be at risk of being unable to participate in major defense programs.

Third parties upon which we rely for defense programs may refuse to partner with us, may breach their agreements with us, refuse to enter into agreements on commercially reasonable terms, take actions that degrade the functionality of our services, impose additional costs or requirements on us, or give preferential treatment to established defense contractors, any of which could prevent us from competing effectively and materially and adversely affect our business, financial condition, results of operations and prospects.

Some third parties that provide services to the defense industry may have significant market power and be able to impose unfavorable terms on new entrants like us. In addition, there can be no assurance that third parties will be willing to work with us on acceptable terms, or at all. If we cannot establish necessary partnerships, we may be unable to compete for defense contracts, which may materially and adversely affect our business, financial condition, results of operations and prospects.

Risks Related to the Defense Industry

We lack the facility security clearances and cleared personnel required for 90% of U.S. defense contracts.

Approximately 90% of U.S. defense contracts require facility security clearances that we completely lack. Obtaining clearances involves: 12-18 month investigation periods; extensive ownership documentation complicated by our foreign ties; sophisticated security system implementation; designation of cleared U.S. citizen executives; and ongoing compliance costs exceeding $500,000 annually. Our foreign ownership through Israeli subsidiaries may preclude certain clearance levels entirely or require restrictive FOCI mitigation agreements. Without clearances, we are excluded from classified programs, sole-source contracts, prime contractor opportunities, and the majority of defense spending.

Fixed-price defense contracts expose us to unlimited losses without cost estimation experience.

The majority of defense contracts are fixed-price, meaning we bear all risk of cost overruns. We have zero experience estimating defense program costs, which require sophisticated models accounting for technical complexity, regulatory compliance, supply chain volatility, labor escalation, and schedule delays. Industry data shows 65% of major defense programs experience cost overruns exceeding 25%. Our lack of historical data, experienced estimators, and program management expertise virtually guarantees significant losses. A single major fixed-price contract loss could exceed our entire equity base.

Export control violations could result in criminal prosecution and permanent debarment.

Operating in defense requires strict ITAR and EAR compliance, where violations carry criminal penalties, fines up to $1 million per violation, and permanent debarment. We lack export compliance programs, technology control plans, licensing expertise, deemed export procedures, and supply chain compliance systems. Our Israeli operations create immediate deemed export risks. Recent enforcement actions include: Raytheon paying $100 million, multiple executive criminal convictions, and permanent debarments. Our lack of compliance infrastructure creates extreme risk of violations that could destroy our business.

We face overwhelming competition from established prime contractors.

The aerospace and defense industry is dominated by companies like Lockheed Martin, Boeing, and Raytheon with 100+ year histories, billions in R&D budgets, thousands of cleared personnel, established customer relationships, and political influence. These contractors win 80% of defense dollars through evaluation criteria favoring past performance we don’t have. As a new entrant with zero track record, we face insurmountable disadvantages in competing for contracts. Small defense companies have failure rates exceeding 60% within five years.

We must comply with complex defense regulations without any infrastructure.

Defense operations require compliance with ITAR, DFARS, CMMC, FAR, CAS, and other regulations for which we have zero infrastructure or expertise. Implementation costs typically exceed $3-5 million in year one. Common violations include inadvertent technical discussions, missing flow-down clauses, and inadequate cybersecurity. Recent enforcement: Raytheon paid $950 million, Boeing suspended from contracts. Our lack of compliance infrastructure virtually guarantees violations resulting in suspension or debarment.

Our defense distribution business is subject to complex export control laws and regulations, including ITAR and EAR, and failure to comply could result in significant fines, loss of export privileges, and reputational damage.

The distribution of drone payloads and advanced defense software is subject to strict U.S. export control regulations, including the International Traffic in Arms Regulations (ITAR) and Export Administration Regulations (EAR). We must obtain and maintain appropriate licenses and ensure compliance with all export restrictions. Any violations, even inadvertent ones, could result in criminal and civil penalties, loss of export privileges, debarment from government contracts, and severe reputational harm.

Dependence on government and homeland security customers exposes us to risks associated with budget constraints, procurement processes, and policy changes.

A significant portion of our target market consists of U.S. government agencies, military branches, and homeland security entities, whose purchases are subject to federal budgeting cycles, sequestration, or shifts in defense priorities. Reductions in defense spending, delays in appropriations, or changes in administration policies could decrease demand for our distributed products, impacting our revenue projections. Government procurement processes are often lengthy, competitive, and unpredictable, requiring us to navigate complex bidding requirements without guaranteed success. Moreover, as a distributor rather than a manufacturer, we may face challenges in qualifying for certain contracts that favor direct suppliers or U.S.-based entities. Failure to secure key contracts or adapt to policy shifts could result in underutilization of our distribution rights, inability to meet minimum commitments under our agreements, and substantial financial harm.

The defense procurement process is lengthy, complex, and highly competitive, which may prevent us from achieving the revenue targets required under our distribution agreements.

Sales to defense and homeland security customers typically involve long procurement cycles, extensive testing and certification requirements, competitive bidding processes, and budget constraints. These factors could make it difficult to achieve the aggressive revenue targets we have committed to, particularly the $3 million first-year revenue requirement under the Tiltan agreement and the escalating purchase requirements under the BladeRanger agreement.

We face potential liability and indemnification obligations related to the defense products we distribute, which could expose us to significant financial losses.

As the exclusive U.S. distributor of drone payloads and defense software, we may face product liability claims, indemnification obligations, or lawsuits related to product performance, defects, or misuse. While our agreements include certain protections, we could still face substantial legal costs, damages, and reputational harm from claims related to these defense technologies, particularly given their use in critical security applications.

Risks Related to ~~Our~~Geopolitical ~~International~~and ~~Operations~~Macroeconomic Conditions

Risks Related to the Ongoing Conflict in Israel and Regional Instability

The ongoing “Swords of Iron” war and the broader military conflict in the Middle East have had, and may continue to have, a material adverse effect on our Israeli operations, supply chains, personnel, and ability to execute our business strategy.

Since October 7, 2023, Israel has been engaged in an ongoing multi-front military conflict, initially triggered by the Hamas attack on southern Israel and subsequently expanding to military operations against Hezbollah in Lebanon, Houthi forces in Yemen, Iranian-backed militias in Syria and Iraq, and direct hostilities with Iran, including a 12-day conflict in June 2025 that resulted in over a billion dollars in claimed property damage in Israel. The majority of our operations, employees, and subsidiaries are located in Israel. Our Israeli subsidiaries — including B. Rimon Agencies Ltd., Tiltan Software Engineering Ltd., Nimbus Drones Technologies Ltd. and I.T.S. Industrial Tecno-logic Solutions Ltd., Positech Ltd. — are directly exposed to the consequences of this conflict, including missile and drone attacks on Israeli territory, temporary evacuation of employees from facilities subject to attack, disruptions to supply chains and shipping routes (exacerbated by attacks by the Houthi movement on shipping in the Red Sea, which have materially increased transportation costs and delivery times), material and component shortages resulting from limitations imposed by certain countries on exports to Israel, and general economic instability. The security situation has created additional challenges, including reluctance by certain foreign counterparties to perform contractual obligations with Israeli entities during hostilities, various bans and limitations on trade and cooperation with Israel-related entities, and fluctuations in the value of the New Israeli Shekel. While ceasefire agreements have been reached on certain fronts, the security situation remains volatile, and the scope, duration, and ultimate consequences of the conflict remain highly uncertain.

Mandatory military reserve duty obligations have resulted in, and may continue to result in, significant personnel shortages that disrupt our operations, production schedules, and ability to fulfill contractual obligations.

Under Israeli law, Israeli citizens and permanent residents are subject to mandatory military reserve service obligations. Since the commencement of the “Swords of Iron” war, our need for employees, particularly in the fields of production and development, has increased in light of higher demand for defense products, while at the same time a significant number of our employees have been called up for military reserve duty, creating recurring personnel shortages. As a smaller reporting company with few employees, the impact of reserve duty call-ups on our operations may be disproportionately severe. Many of our key technical personnel, engineers, and production workers are of military reserve age and are subject to call-up with little or no advance notice, for unpredictable durations. During the initial phase of the conflict, Israeli companies in our sector experienced workforce reductions of up to 40% and operational suspensions lasting 60 days or more. If a material number of our employees are called for reserve duty simultaneously, or if key personnel are called during critical project delivery or acquisition integration periods, we may be unable to meet contractual deadlines, maintain production schedules, fulfill customer orders, or operate our businesses at required levels, any of which could result in breach of contract, loss of customer relationships, financial penalties, and material harm to our business, financial condition, and results of operations.

Escalating global conflicts, particularly the ongoing wars in the Middle East and Ukraine, create both heightened demand and severe operational risks for our business.

The global security environment has deteriorated significantly, with active military conflicts in the Middle East (including the ongoing conflict in Israel and the broader regional tensions involving Iran, Hezbollah, and other actors) and the continuing war in Ukraine now entering its fourth year. While these conflicts may drive increased defense spending globally, they create severe and direct operational risks for our company. Our Israeli subsidiaries, including B. Rimon Agencies Ltd., Tiltan Software Engineering Ltd., Nimbus Drones Technologies Ltd., and I.T.S. Industrial Tecno-logic Solutions Ltd., operate in an active conflict zone where missile attacks, drone incursions, and ground operations pose immediate threats to our facilities, personnel, and supply chains. Mandatory military reserve duty requirements have at times removed significant portions of the Israeli workforce from civilian employment, directly affecting our subsidiaries’ ability to maintain production schedules and fulfill contractual obligations. Flight suspensions and port disruptions in Israel can impede logistics and delay delivery of critical defense products. The continuation or escalation of these conflicts could result in physical damage to our facilities, loss of key personnel, disruption of production, inability to fulfill contractual obligations, and substantial uninsured losses.

We do not carry war risk insurance for our Israeli operations, and losses arising from military conflict would be entirely unrecovered.

Standard commercial insurance policies maintained by our Israeli subsidiaries exclude losses arising from war, military action, terrorism, and related events. Specialized war risk insurance coverage for our Israeli operations is either unavailable or available only at costs that are prohibitively expensive relative to our current financial resources. Accordingly, we carry no insurance coverage for physical damage to our facilities, destruction of inventory or equipment, business interruption, or loss of key personnel resulting from missile strikes, drone attacks, or other military action. To date, none of our facilities have sustained physical damage from the conflict, but we cannot predict whether this will remain the case, particularly in the event of an escalation of hostilities with Iran or an expansion of the conflict to additional fronts. Any war-related losses would be borne entirely by us with no prospect of insurance recovery, which could materially impair our financial condition and ability to continue operations.

The conflict has resulted in limitations on exports to Israel, attacks on defense companies by anti-Israeli organizations, and reputational risks that may impair our ability to conduct international business.

The ongoing conflict has resulted in limitations imposed by certain countries on exports to Israel, restrictions on defense cooperation with Israeli entities, and expanding boycott, divestment, and sanctions (BDS) campaigns targeting Israeli companies and companies doing business with Israel. As a smaller company without the resources or global infrastructure of an established prime contractor, we are vulnerable to such disruptions. International customers, partners, and distributors may decline to do business with us or our Israeli subsidiaries due to political pressure, reputational concerns, or changes in their governments’ policies toward Israel. Our employees at Israeli subsidiaries may face increased pressure due to geopolitical considerations, potentially affecting our ability to attract and retain talent. Any of these developments could limit our addressable market, disrupt our supply chains, impair our revenue growth, and adversely affect our business, financial condition, and results of operations.

Our business partners, customers, and suppliers may invoke force majeure or otherwise fail to perform their contractual obligations as a result of the conflict, which could disrupt our operations and revenue.

The SEC has noted that companies with operations or business relationships in conflict-affected areas should evaluate the potential impacts of counterparties failing to perform obligations, including by invoking force majeure provisions. Several of our contracts with Israeli and international counterparties contain force majeure clauses that may be triggered by the ongoing military conflict or by future escalations. If our customers delay or cancel orders, if our suppliers are unable to deliver materials or components due to export restrictions, shipping disruptions, or damage to their own facilities, or if our business partners invoke force majeure to suspend or terminate contractual obligations, our revenue, supply chain continuity, and business operations could be materially adversely affected. Additionally, we may be unable to invoke force majeure in our own favor if we are unable to perform under our contracts due to the conflict, exposing us to potential claims for breach of contract and damages.

Rising global defense spending may not translate into revenue for our company, and shifts in government budget priorities could adversely affect demand for our products and services.

Global defense spending has reached levels not seen since the Cold War, with NATO members moving toward a 3.5% of GDP defense spending target and the United States proposing its first-ever trillion-dollar defense budget for fiscal year 2026. While these macro trends may appear favorable, there is no assurance that increased defense budgets will result in contracts or revenue for our company. Government defense budgets are subject to annual appropriations, continuing resolutions, sequestration, and political priorities that can shift rapidly. Changes in administration, shifting threat assessments, and fiscal constraints may redirect defense spending away from the categories of products and services we offer. Moreover, as a relatively small and newly formed defense platform, we lack the established relationships and past performance record that government procurement officers and prime contractors rely upon when awarding contracts. Even in a period of rising defense budgets, we may be unable to capture meaningful contract awards, which would adversely affect our ability to achieve profitability and fund ongoing operations.

U.S. trade policy, including tariffs and export restrictions, may increase our costs, disrupt our supply chains, and limit our market access.

The current U.S. trade policy environment is characterized by elevated tariffs, evolving export control regimes, and increasingly restrictive foreign investment regulations. Tariffs on imported materials, components, and finished defense products from allied countries, including Israel, may increase our procurement costs and reduce our margins. Our Israeli-manufactured products, including generators, drone payloads, motion control systems, and AI software, may become subject to new or increased tariffs that we cannot pass on to customers. Additionally, U.S. export control regulations, including the International Traffic in Arms Regulations (ITAR) and Export Administration Regulations (EAR), are becoming more stringent, and any violations, even inadvertent, could result in criminal and civil penalties, loss of export privileges, or debarment from government contracts. Changes in the U.S.-Israel trade relationship, including renegotiation of free trade agreements or changes in defense cooperation frameworks, could materially and adversely affect our business.

Intensifying great-power competition and the fragmentation of international trade and security frameworks create systemic risks to our business model.

The international security and trade architecture is undergoing fundamental restructuring. U.S.-China strategic competition has resulted in export restrictions on critical technologies, restrictions on Chinese rare earth exports (which are essential for defense manufacturing), and the formation of competing technology and security blocs. Russia’s invasion of Ukraine has triggered comprehensive sanctions regimes, disrupted energy markets, and accelerated European rearmament. The potential expiration of the New START nuclear arms control treaty in 2026, combined with expanding nuclear arsenals and proliferation risks, increases the likelihood of a new arms race with attendant risks to global stability. China’s demonstrated willingness to weaponize its dominance in rare earth minerals, critical semiconductor components, and drone components as instruments of geopolitical coercion threatens supply chains throughout the defense industry, including our own. These systemic risks may result in higher input costs, disrupted supply chains, restricted market access, and an operating environment of sustained uncertainty that depresses investment and growth.

Our Israeli operations face active military conflict without war risk insurance.

Our Israeli subsidiaries operate in an active conflict zone with ongoing military operations. Risks include: missile attacks that could destroy facilities; mandatory reserve duty removing 30% of workforce; flight suspensions preventing logistics; supply chain disruptions; cyber attacks on defense companies; and economic impacts from mobilization. Standard insurance excludes war risks, and specialized coverage is unavailable or prohibitively expensive. During the October 2023 conflict, Israeli companies experienced 40% workforce reductions and 60-day operational suspensions. War-related losses would be entirely unrecovered.

Operating across multiple jurisdictions creates irreconcilable legal conflicts.

Our U.S., Israeli, and European operations create conflicts between national security laws, technology transfer restrictions, and foreign investment regulations. Critical conflicts include: U.S. ITAR restrictions versus Israeli technology requirements; CFIUS powers versus Israeli defense controls; EU privacy laws versus U.S. surveillance requirements; and conflicting sanctions regimes. Compliance with one jurisdiction’s laws may violate another’s, creating permanent risk regardless of our compliance efforts.

Our foreign ownership structure may permanently preclude classified U.S. defense programs.

Our foreign ties may exclude us from classified programs representing 40% of defense spending. The National Industrial Security Program requires FOCI mitigation that severely restricts operations. Even with mitigation, we would be excluded from Special Access Programs and the highest-value contracts. Major primes increasingly refuse to work with FOCI-mitigated companies. Our structure may create an insurmountable barrier to 40% of the U.S. defense market.

Geopolitical tensions, international conflicts, or changes in U.S.-Israel relations could disrupt our supply chain and restrict our ability to distribute defense technologies.

As our suppliers are based in Israel, our operations are vulnerable to geopolitical risks in the Middle East, including ongoing conflicts, political instability, or escalations involving Israel. Such events could lead to supply disruptions, increased costs for shipping or insurance, or export restrictions imposed by Israeli authorities. Furthermore, shifts in U.S. foreign policy, trade relations with Israel, or sanctions could limit our access to these technologies. For instance, heightened tensions might result in delays at ports, damage to supplier facilities, or workforce disruptions in Israel, directly impacting our ability to fulfill customer orders. If we cannot secure alternative sources quickly, these risks could cause significant interruptions in our business, leading to breaches of customer contracts, financial losses, and potential legal liabilities.

We are subject to stringent U.S. and international regulations governing defense technologies, and non-compliance could result in fines, loss of licenses, or restrictions on our operations.

The distribution of defense-related products, including drone payloads and software for GPS-denied navigation, AI simulations, 3D mapping, and multi-sensor management, is heavily regulated under U.S. laws such as the International Traffic in Arms Regulations (ITAR), Export Administration Regulations (EAR), and the Arms Export Control Act. These regulations require us to obtain export licenses, register as a defense exporter, and comply with end-user restrictions, particularly since our products originate from Israel and are intended for U.S. defense and homeland security applications. Violations, even unintentional, could lead to civil or criminal penalties, revocation of licenses, or debarment from government contracts. Additionally, changes in regulatory interpretations or heightened scrutiny of foreign-sourced defense tech could impose new compliance burdens, increasing our costs and delaying product distribution. Our limited experience in this regulatory environment heightens the risk of oversight failures, which could materially adversely affect our business and reputation.

Risks Related to Our Financial Condition and Existing Capital Structure

We have no meaningful revenue after terminating our largest customer.

Following the mutual termination of our agreement with Triton Capital Markets Ltd. (“TCM”) effective September 30, 2024, our Digital RFQ business, which previously generated approximately $1.6 million in monthly revenue, ceased operations. Our current revenue is limited to minimal amounts from legacy operations as we transition to a defense-focused business model. New defense contracts, if obtained, typically require 18-24 months before generating meaningful revenue, creating a significant revenue gap during our transformation period.

Our accumulated deficit and negative working capital raise substantial doubt about our ability to continue as a going concern.

Our financial condition includes accumulated deficits, negative working capital, and ongoing losses that raise substantial doubt about our ability to continue as a going concern. The September 2025 private placement gross proceeds of $10 million, less offering expenses and after accounting for our current monthly operating expenses of approximately $1.5-2.0 million, are expected to fund operations for approximately 4-6 months based on management’s current operating plans and assumptions. Going concern opinions trigger loan defaults, supplier credit restrictions, customer reluctance, and employee departures. Defense customers require financial stability we cannot demonstrate. The substantial doubt about our continuation could force bankruptcy before our transformation can be implemented.

We lack the financial infrastructure required for defense contracting.

Defense contractors require: performance bonds equaling 100% of contract value; payment bonds; letters of credit; working capital lines for 60-90 day payment cycles; and DCAA-compliant accounting systems. Surety companies require 3 years of profitable operations we don’t have. Banks won’t provide credit without contract history and positive cash flow. Without bonding, we cannot bid on contracts exceeding $150,000. These gaps exclude us from meaningful defense contracts.

~~Nasdaq delisting proceedings threaten our existence.~~20

~~On August 28, 2025, we received~~The aoutstanding ~~deficiency letter from Nasdaq indicating that we no longer complied with the minimum Market Value of Listed Securities requirement of $50 million for continued listing. On September 26~~warrants, ~~2025,~~convertible wepreferred received written confirmation from Nasdaq that we had regained compliance with the minimum Market Value of Listed Securities requirement and the matter was now closed. There can be no guarantee that we will continue to meet the requirements for listing on Nasdaq. Our failure to maintain compliancestock, and our ~~failure~~equity toline ~~regain~~of ~~compliance~~credit ~~thereafter,~~facility ~~could~~ may result in ~~delisting,~~substantial ~~which~~dilution ~~would~~to ~~trigger debt acceleration, acquisition agreement breaches, loss of blue sky law exemptions, elimination~~existing ofstockholders ~~trading~~and ~~liquidity,~~depress ~~inability~~our ~~to use~~ stock ~~as currency, and severe capital raising constraints~~price. ~~Based on historical precedent, companies receiving deficiency notices face significant challenges in maintaining regaining compliance. Delisting would effectively end our transformation strategy.~~

18Our capital structure includes a significant number of securities that are currently convertible into or exercisable for shares of our Common Stock. As of the date of this prospectus, these include: (i) shares of Series A Convertible Preferred Stock convertible to an aggregate of 2,044,800 shares of Common Stock; (ii) shares of Series B Convertible Preferred Stock issued in the February 2026 Private Placement, initially convertible into 4,6944835 shares of Common Stock at a conversion price of $2.13 per share, with the conversion price subject to further downward adjustment upon stockholder approval or the effectiveness of a registration statement; (iii) 2,357,303 warrants issued in the February 2026 Private Placement, exercisable at $2.13 per share with a cashless exercise option based on Black-Scholes value; (iv) an aggregate of 9,460,345 warrants to purchase Common Stock; and (v) the Company’s equity line of credit agreement under which the Company may sell shares of Common Stock from time to time. The conversion or exercise of all or a significant portion of these securities would result in the issuance of a substantial number of additional shares of Common Stock, which would significantly dilute the ownership interest of existing stockholders and could materially depress the market price of our Common Stock.

The price-based anti-dilution provisions in our convertible preferred stock may create a self-reinforcing cycle of dilution if our stock price declines.

The Series B Convertible Preferred Stock and the associated warrants issued to the purchaser contain price-based anti-dilution adjustment provisions that automatically reduce the conversion or exercise price — and correspondingly increase the number of shares of Common Stock issuable upon conversion or exercise — if we issue additional shares or convertible securities at prices below the then-applicable conversion or exercise price (subject to certain exempt issuances). The conversion price of the Series B Preferred Stock is also subject to further downward adjustment upon receipt of stockholder approval to the lower of the then-applicable conversion price and the market price of the Common Stock at the time of the triggering event. These provisions mean that if our stock price declines, the holders will be entitled to convert into or exercise for a greater number of shares than initially contemplated, resulting in additional dilution beyond what was anticipated at the time of the original issuance. This downward price adjustment mechanism may create a self-reinforcing cycle: declining stock prices trigger increased conversion shares, the prospect of which further depresses the stock price, leading to further adjustments and additional dilution. Such “death spiral” dynamics have been observed in other public companies with similar convertible security structures and can result in severe erosion of value for existing common stockholders.

The substantial overhang of shares issuable upon conversion of preferred stock and exercise of outstanding warrants may depress our stock price regardless of our operating performance.

Even if the holders of our convertible preferred stock and warrants do not immediately convert or exercise their securities, the existence of a large number of shares of Common Stock that may be issued in the future creates a significant “overhang” that may depress the trading price of our Common Stock. Market participants may sell existing shares in anticipation of future dilutive issuances, or may be unwilling to purchase shares knowing that a substantial number of additional shares may enter the market at any time. The Star Warrant alone, if fully exercised, would result in the issuance of over 12 million additional shares at $1.50 per share. The Series A and Series B Preferred Stock, if fully converted at their respective current conversion prices, would result in the issuance of additional shares representing a significant percentage of our currently outstanding Common Stock. The aggregate potential dilution from all outstanding convertible securities and warrants is substantial relative to our current public float, and this overhang may discourage new investment, impair our ability to raise capital on favorable terms, and limit the potential appreciation of our stock price, regardless of our operating performance.

We expect to issue additional shares of Common Stock or other securities in the future to fund acquisitions and operations, which would further dilute existing stockholders.

Our business strategy depends on acquiring and integrating defense companies, which we have historically financed in significant part through the issuance of equity securities. We expect to continue to use our Common Stock as acquisition currency, to fund operations, and to attract and retain employees and consultants. We are also obligated to issue additional shares under existing contractual commitments, including shares issuable to the Tiltan seller based on earn-out provisions, additional shares that may be issuable in connection with the ITS acquisition upon exercise of our option to acquire the remaining 49%, and shares that may be issued under future equity incentive plans that will require stockholder approval under Nasdaq listing rules. Each additional issuance of Common Stock or convertible securities will further dilute the ownership interest and economic value of existing stockholders’ shares, may reduce earnings per share, and may adversely affect the market price of our Common Stock. There can be no assurance that we will be able to issue additional equity securities on terms favorable to us, and any future issuances may be on terms significantly dilutive to existing stockholders.

Our stock price has been and may continue to be highly volatile, and investors may not be able to resell their shares at or above the price at which they purchased them.

The market price of our Common Stock has been subject to significant volatility since our transition from a financial technology company to a defense holding company. The trading price may continue to fluctuate widely in response to factors including: our ability to successfully execute our defense acquisition strategy and integrate acquired companies; quarterly variations in our results of operations or those of our competitors; changes in defense spending priorities or government budget sequestration; negative publicity regarding the conflict in Israel, changes in U.S.-Israel relations, or BDS campaigns targeting Israeli companies; changes in financial estimates or recommendations by securities analysts; sales of Common Stock by insiders, large stockholders, or holders of convertible securities; the exercise of warrants or conversion of preferred stock; draws under the ELOC; announcements of new acquisitions, contracts, or products by us or our competitors; and general market conditions and macroeconomic factors. Our Common Stock has a relatively limited public float and trading volume, which amplifies price movements in response to trading activity. There can be no assurance that the market price of our Common Stock will not decline significantly from current levels.

We are currently at risk of failing to maintain the minimum bid price required by Nasdaq Listing Rules.

Pursuant to Nasdaq Listing Rule 5550(a)(2), if we fail to maintain a minimum bid price of $1.00 for thirty consecutive trading days (the “Minimum Bid Price”) and do not rectify the situation, our Common Stock could be delisted from Nasdaq, in which case trading of our Common Stock would most likely take place on an over-the-counter market established for unlisted securities. Our Common Stock has traded under $1.00 since March 20, 2026. An investor would likely find it less convenient to sell, or to obtain accurate quotations in seeking to buy, our Common Stock on an over-the-counter market, and many investors would likely not buy or sell our Common Stock due to difficulty in accessing over-the-counter markets, policies preventing them from trading in securities not listed on a national exchange or other reasons. In addition, as a delisted security, our Common Stock would be subject to SEC rules as a “penny stock,” which impose additional disclosure requirements on broker-dealers. The regulations relating to penny stocks, coupled with the typically higher cost per trade to the investor of penny stocks due to factors such as broker commissions generally representing a higher percentage of the price of a penny stock than of a higher-priced stock, would further limit the ability of investors to trade in our Common Stock.

On May 5, 2026, we received a notice from Nasdaq that we are not in compliance with the minimum bid requirements for continued listing. Under Nasdaq Rule 5810(c)(3)(A)(iv), if the price of our Common Stock fails to satisfy the Minimum Bid Price Requirement (A) within one year after effectiveness of a reverse stock split or (B) if the Company has effected one or more reverse stock splits over the prior two-year period with a cumulative ratio of 250 shares or more to one, then the Company shall not be eligible for any compliance period specified in Rule 5810(c)(3)(A) and the Listing Qualifications Department will issue a Staff Delisting Determination under Rule 5810 with respect to that security, and the Common Stock would be subject to delisting by Nasdaq without any opportunity for a cure period. On October 11, 2024, the Company effected a one-for-eight reverse stock split of the Common Stock. Accordingly, if the Company implements a reverse stock split after the price of our Common Stock fails to satisfy the Minimum Bid Price Requirement with a cumulative ratio combined with the prior reverse split of 250 shares or more to one, the Company will not be eligible for any compliance period specified in Rule 5810(c)(3)(A) and the Listing Qualifications Department will issue a Staff Delisting Determination under Rule 5810 with respect to our Common Stock, which would then be subject to delisting by Nasdaq.

For these reasons and others, delisting would adversely affect the liquidity, trading volume, investor interest and price of our Common Stock, causing the value of an investment in us to decrease and having an adverse effect on our business, financial condition and results of operations, including our ability to attract and retain qualified employees and to raise capital.

Although we have until November 2, 2026 to regain compliance with the Minimum Bid Price Requirement, there can be no guarantee that we will continue to meet the requirements for listing on Nasdaq. Our failure to maintain compliance, and our failure to regain compliance thereafter, could result in delisting, which would trigger debt acceleration, acquisition agreement breaches, loss of blue sky law exemptions, elimination of trading liquidity, inability to use stock as currency, and severe capital raising constraints. Based on historical precedent, companies receiving deficiency notices face significant challenges in maintaining regaining compliance. Delisting would effectively end our transformation strategy.

We might not be able to consummate the second tranche of our recent financing.

Pursuant to the terms of the Securities Purchase Agreement executed in February 2026, the Purchaser agreed to purchase an additional 200 units for an additional investment of $10 million following (i) the effectiveness of a registration statement and (ii) stockholder approval of the issuance of the transactions contemplated by the Securities Purchase Agreement as required pursuant to Nasdaq rules. In addition, the stock price must be at least $1.00 and the value of the trading in the Company’s stock on Nasdaq for the 10 consecutive days preceding the second closing is at or above $900,000 (the “Second Closing Market Trading Value”), provided that if the Second Closing Market Trading Value is less than $900,000, then there will be a proportionate reduction in the number of units to be sold at the second closing. As a result of all the foregoing conditions, there is a possibility that the Purchaser will not have to consummate the additional investment of $10 million in which case the Company will utilize its current ELOC facility.

Star has the right to require the Company to exchange the Investment Note for all the shares of Star then held by the Company if the Common Stock is delisted.

Pursuant to the terms of the Purchase Agreement, the aggregate consideration paid by the Company for all the shares of Star consisted of: (i) $16,000,000, which was paid to Star 26 by the issuance by the Company of the Investment Note; (ii) $500,000 in cash, representing $5,000,000 less $4,500,000 previously borrowed by Star 26 from the Company; (iii) 4,770,340 Common Shares; (iv) the Warrant to purchase 12,017,648 Warrant Shares at an exercise price of $1.50 per share, exercisable for a period of five years from the Closing Date; (v) the Six-Month Note in the principal amount of $3,000,000, which accrues interest at the rate of 8% per annum and matures on July 12, 2026; and (vi) the Three-Month Note in the principal amount of $3,000,000 (the “Three-Month Note”), which matures on April 12, 2026. The Common Shares, the Warrant, the Six-Month Note and the Three-Month Note were subsequently assigned by Star 26 to the Star shareholders, pro ratably based on their equity ownership in Star 26. The Purchase Agreement provides that if, for a period of 12 months after the closing, the Common Stock is delisted from Nasdaq, Star 26 shall have the right, at its own discretion, to require the Company to exchange the Investment Note for all the shares of Star 26 then held by the Company. In such instance, Star 26 shall retain any cash payments made by the Company to Star 26 and the Company shall retain an equity interest in Star 26 equivalent to all cash payments. Given the current stock price of our Common Stock and the previous reverse stock splits effectuated by the Company, there is a possibility that our Common Stock could be delisted and Star would exercise its right to exchange the Investment Note for the shares of Star owned by the Company.

There is no assurance that we will achieve and maintain profitability or that our revenue and business models will be successful.

Our ability to achieve and maintain profitability is based on numerous factors, many of which are beyond our control. We may not be able to generate sufficient revenue to maintain profitability in the short or long-term. Our revenue growth may slow, or our revenue may decline for a number of other reasons, including reduced demand for our offerings, increased competition, a decrease in the usage of blockchain technologies generally, or any failure to capitalize on growth opportunities.

We are continually refining our revenue and business model and have shifted our focus to the development and commercialization of our Platforms. There is no assurance that these efforts will be successful or that we will generate revenues commensurate with our efforts and expectations or become or stay profitable. We may be forced to make significant changes to our revenue and business model to compete with our competitors’ offerings, and even if such changes are undertaken, there is no guarantee that they will be successful or profitable. Additionally, we will need to hire, train, and integrate qualified personnel to meet and further such changes to our business objectives at potentially significant additional expense. Failure to successfully implement revenue and business models or manage related expenses could cause us to be unprofitable and have an adverse effect on our business, operating results and financial condition.

Changes in U.S. and foreign tax laws, as well as the application of such laws, could adversely impact our financial position and operating results.

We are subject to complex income and non-income tax laws and regulations in the United States and a variety of foreign jurisdictions. Our Israeli subsidiaries and cross-border defense operations create particular complexity. Both the United States and foreign jurisdictions may revise corporate income tax and other non-income tax laws which could impact the amount of tax due in such jurisdiction.

Our determination of our corporate income tax liability is subject to review and may be challenged by applicable U.S. and foreign tax authorities. Any adverse outcome of such challenge could harm our operating results and financial condition. The determination of our worldwide provision for income taxes and other tax liabilities requires significant judgment and, in the ordinary course of business, there are many transactions and calculations where the ultimate tax determination is complex and uncertain. Defense contracts often involve complex cost accounting standards and allowable cost determinations that affect tax treatment. Our existing corporate structure and intercompany arrangements have been implemented in a manner we believe is in compliance with current prevailing tax laws. Furthermore, as we operate in multiple taxing jurisdictions, the application of tax laws can be subject to diverging and sometimes conflicting interpretations by tax authorities of these jurisdictions. It is not uncommon for taxing authorities in different countries to have conflicting views with respect to, among other things, the characterization and source of income or other tax items, the manner in which the arm’s-length standard is applied for transfer pricing purposes, or with respect to the valuation of intellectual property. The transfer of defense technology between our U.S. and Israeli operations raises particular transfer pricing complexities. The taxing authorities of the jurisdictions in which we operate may challenge our tax treatment of certain items or the methodologies we use for valuing developed technology or intercompany arrangements, which could impact our worldwide effective tax rate and harm our financial position and operating results.

We are also subject to non-income taxes, such as payroll, sales, use, value-added, net worth, property, and goods and services taxes in the United States and various foreign jurisdictions. A change in the tax law could impact tax positions which could result in an increased exposure related to such tax liabilities. Such changes could have an adverse effect on our operating results and financial condition.

In addition, under Section 382 of the Internal Revenue Code of 1986, as amended (the “Code”), a corporation that undergoes an “ownership change” (as defined under Sections 382 and 383 of the Code and applicable Treasury Regulations) is subject to limitations on its ability to utilize its pre-change NOLs and certain other tax attributes to offset post-change taxable income or taxes.

We have not performed a study to determine whether our NOLs are currently subject to Section 382 limitations. We may also experience a future ownership change under Section 382 of the Code that could affect our ability to utilize our NOLs to offset our income.

If our estimates or judgment relating to our critical accounting policies prove to be incorrect, our operating results could be adversely affected.

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. We base our estimates on historical experience and on various other assumptions that we believe to be reasonable under the circumstances, as provided in the section titled “Management’s Discussion and Analysis of Financial Condition and Results of Operations — Critical Accounting Estimates”. The results of these estimates form the basis for making judgments about the carrying values of assets, liabilities, and equity, and the amount of revenue and expenses that are not readily apparent from other sources. Significant estimates and judgments involve the identification of performance obligations in revenue recognition, particularly for defense contracts with multiple deliverables and milestone payments, evaluation of tax positions, inter-company transactions, and the valuation of stock-based awards, among others. Defense contracts require particular judgment in percentage-of-completion accounting and estimating costs to complete. Our operating results may be adversely affected if our assumptions change or if actual circumstances differ from those in our assumptions, which could cause our operating results to fall below the expectations of analysts and investors, resulting in a decline in the trading price of our Common Stock.

The accounting rules and regulations that we must comply with are complex and subject to interpretation by the Financial Accounting Standards Board, the SEC, and various bodies formed to promulgate and interpret appropriate accounting principles. As we transition to defense contracting, we must adopt government cost accounting standards and comply with DCAA requirements, which are significantly different from our previous financial services accounting. A change in these principles or interpretations could have a significant effect on our reported financial results and may even affect the reporting of transactions completed before the announcement or effectiveness of a change. Recent actions and public comments from the FASB and the SEC have focused on the integrity of financial reporting and internal controls. In addition, many companies’ accounting policies are being subject to heightened scrutiny by regulators and the public.

Defense contracting involves unique accounting requirements including Cost Accounting Standards (CAS), progress payment billing, and complex revenue recognition for long-term contracts. We lack experience with these specialized accounting requirements, and establishing DCAA-compliant accounting systems typically costs $500,000 to $1 million.

There remains uncertainty on how companies transitioning between industries should account for discontinued operations, acquisition-related costs, and transformation expenses. Uncertainties in or changes to regulatory or financial accounting standards could result in the need to change our accounting methods, restate our financial statements or impair our ability to provide timely and accurate financial information, which could adversely affect our financial statements, result in a loss of investor confidence, and more generally impact our business, operating results, and financial condition.

Business metrics and other estimates are subject to inherent challenges in measurement, and our business, operating results, and financial condition could be adversely affected by real or perceived inaccuracies in those metrics.

As we transition from financial technology to defense, our traditional business metrics are no longer applicable, and we have not yet established meaningful defense industry metrics. We will need to develop new metrics relevant to defense contracting, such as contract backlog, book-to-bill ratios, win rates, and program performance indices. These metrics will be calculated using internal company data and initially will not be validated against industry standards. While these numbers will be based on what we believe to be reasonable estimates for the applicable period of measurement, there are inherent challenges in such measurements. During our transformation period, we have minimal operational metrics to report, making it difficult for investors to evaluate our progress or compare us to established defense contractors.

Our future defense business metrics may also be impacted by program delays, contract modifications, stop-work orders, or classification restrictions that limit disclosure. Government contracting involves unique reporting requirements and restrictions that differ significantly from commercial business metrics. If our metrics provide us with incorrect or incomplete information about program performance and contract profitability, we may make inaccurate conclusions about our business.

We are subject to changes in financial reporting standards or policies, including as a result of choices made by us, which could materially adversely affect our reported results of operations and financial condition and may have a corresponding material adverse impact on capital ratios.

Our consolidated financial statements are prepared in accordance with GAAP, which are periodically revised or expanded. Accordingly, from time to time we are required to adopt new or revised accounting standards issued by recognized bodies. It is possible that future accounting standards and financial reporting standards or policies, including as a result of choices made by us, which we are required to adopt, could change the current accounting treatment that applies to our consolidated financial statements and that such changes could have a material adverse effect on our reported results of operations and financial condition, and may have a corresponding material adverse effect on capital ratios.

We are required to furnish a report by management on, among other things, the effectiveness of our internal control over financial reporting. This assessment includes disclosure of any material weaknesses identified by our management in our internal control over financial reporting. During the evaluation and testing process of our internal controls, if we identify one or more material weaknesses in our internal control over financial reporting, we will be unable to certify that our internal control over financial reporting is effective. We cannot assure that there will not be material weaknesses or significant deficiencies in our internal control over financial reporting in the future. Any failure to maintain internal control over financial reporting could severely inhibit our ability to accurately report our financial condition or results of operations. If we are unable to conclude that our internal control over financial reporting is effective, or if our independent registered public accounting firm determines we have a material weakness or significant deficiency in our internal control over financial reporting, we could lose investor confidence in the accuracy and completeness of our financial reports, the market price of our stock could decline, and we could be subject to sanctions or investigations by the exchange on which shares of our stock are listed, the SEC or other regulatory authorities. Failure to remedy any material weakness in our internal control over financial reporting, or to implement or maintain other effective control systems required of public companies, could also restrict our future access to the capital markets.

We might require additional capital to support business growth, and this capital might not be available or may require stockholder approval to obtain.

We have funded our operations since inception primarily through equity financings, convertible notes, and revenue generated by our products and services. We intend to continue to make investments in our business to respond to business challenges, including developing new products and services, enhancing our operating infrastructure, expanding our international operations, and acquiring complementary businesses and technologies, all of which may require us to secure additional funds.

Additional financing may not be available on terms favorable to us, if at all. If we incur additional debt, the debt holders would have rights senior to holders of our Common Stock to make claims on our assets, and the terms of any debt could restrict our operations.

Risks Related to Our Employees and Other Service Providers

In the event of employee or service provider misconduct or error, our business may be adversely impacted.

Employee or service provider misconduct or error could subject us to legal liability, financial losses, and regulatory sanctions, and could seriously harm our reputation and negatively affect our business. Such misconduct could include engaging in improper or unauthorized transactions or activities, misappropriation of customer funds, and misappropriation of information, failing to supervise other employees or service providers, or improperly using confidential information.

Employee or service provider errors, including mistakes in executing, recording, or processing transactions for customers, could expose us to the risk of material losses even if the errors are detected. Although we have implemented processes and procedures and provide trainings to our employees and service providers to reduce the likelihood of misconduct and error, these efforts may not be successful. Moreover, the risk of employee or service provider error or misconduct may be even greater for novel products and services, and is compounded by the fact that many of our employees and service providers are accustomed to working at tech companies which generally do not maintain the same compliance customs and rules as financial services firms.

This can lead to high risk of confusion among employees and service providers, particularly in a fast growth company like ours, with respect to compliance obligations particularly including confidentiality, data access, trading, and conflicts. It is not always possible to deter misconduct and the precautions we take to prevent and detect this activity may not be effective in all cases. If we were found not to have met our regulatory oversight and compliance and other obligations, we could be subject to regulatory sanctions, financial penalties and restrictions on our activities for failure to properly identify, monitor and respond to potentially problematic activity, which could seriously damage our reputation. Our employees, contractors, and agents could also commit errors that subject us to financial claims for negligence, as well as regulatory actions, or result in financial liability. Further, allegations by regulatory or criminal authorities of improper transactions could affect our brand and reputation.

The loss of one or more of our key personnel, or our failure to attract and retain other highly qualified personnel in the future, could adversely impact our business, operating results, and financial condition.

We operate in a relatively new industry that is not widely understood and requires highly skilled and technical personnel. We believe that our future success is highly dependent on the talents and contributions of our senior management team, including Menachem Shalom, our Chief Executive Officer and a director and other key service providers across finance, compliance, legal, talent and marketing.

Our future success depends on our ability to attract, develop, motivate, and retain highly qualified and skilled employees and service providers. The pool of qualified talent is extremely limited, particularly with respect to executive talent, engineering, risk management, and financial regulatory expertise. We face intense competition for qualified individuals from numerous software and other technology companies. To attract and retain key personnel, we incur significant costs, including salaries and benefits and equity incentives. Even so, these measures may not be enough to attract and retain the personnel we require to operate our business effectively. The loss of even a few qualified employees, or an inability to attract, retain and motivate additional highly skilled employees required for the planned expansion of our business, could adversely impact our operating results and impair our ability to grow.

Our culture emphasizes innovation, and if we cannot maintain this culture as we grow, our business and operating results could be adversely impacted.

We believe that our entrepreneurial and innovative corporate culture has been a key contributor to our success. We encourage and empower our employees and service providers to develop and launch new and innovative products and services, which we believe is essential to attracting high quality talent, partners, and developers, as well as serving the best, long-term interests of our company. If we cannot maintain this culture as we grow, we could lose the innovation, creativity and teamwork that has been integral to our business, in which case our products and services may suffer and our business, operating results, and financial condition could be adversely impacted.

Additional Risk Factors

Cybersecurity requirements exceed our current capabilities.

Defense contractors face sophisticated nation-state cyber threats and strict requirements we cannot meet. The Cybersecurity Maturity Model Certification requires 110 security controls, third-party assessment, and ongoing monitoring. Our inadequate cybersecurity virtually guarantees a breach that could result in contract loss and massive liability.

Environmental liabilities could exceed our resources.

Aerospace operations create environmental liabilities including hazardous materials, groundwater contamination, and air emissions with unlimited remediation costs. Recent examples: Raytheon allocated $1.2 billion for cleanup. Environmental insurance excludes pre-existing conditions. Discovery of contamination could trigger costs exceeding our market capitalization.

~~Related~~Menachem Shalom, ~~party~~our ~~transactions~~Chief ~~create~~Executive ~~inherent~~Officer and a director, beneficially owns a substantial percentage of our outstanding Common Stock and, if ~~conflicts~~he exercises his warrants, would control a majority of the voting power of our Common Stock. This will allow him to exert significant control over corporate decisions and may discourage transactions that other stockholders may favor.

~~Our~~As ~~CEO’s~~of ~~ownership~~May 27, 2026, Menachem Shalom, our Chief Executive Officer and a director, beneficially owned 14,859,080 shares of ~~Star~~our 26Common Stock, representing approximately 20% of our issued and ~~other~~outstanding ~~entities~~shares ~~creates~~of ~~unavoidable~~Common ~~conflicts~~Stock. ~~The~~This ~~Acquisition~~beneficial ~~involved~~ownership includes a five-year warrant to purchase an aggregate of 7,175,662 shares of our Common Stock at an exercise price of $1.50 per share. As a result of his current ownership position and his potential to acquire voting control of a majority of our outstanding Common Stock through the exercise of his warrant, Mr. Shalom ~~negotiating~~has, and ~~both~~upon ~~sides.~~exercise ~~Delaware~~of ~~courts~~the warrant would have, the ability to exert significant influence over, or control, substantially all matters requiring ~~apply~~stockholder ~~“entire~~approval, ~~fairness”~~including ~~review~~the election and removal of directors, amendments to ~~conflicted~~our ~~transactions~~certificate of incorporation and bylaws, approval of mergers, acquisitions, and other business combinations, and the outcome of any other matter submitted to a vote of stockholders. ~~Related~~This concentration ~~party~~of ~~dealings~~voting ~~create~~power ~~litigation~~could ~~risk~~have the effect of delaying, ~~regulatory~~deterring, ~~scrutiny~~or preventing a change of control of the Company, even if such a transaction would be beneficial to other stockholders, and ~~investor~~could ~~avoidance~~deprive other stockholders of the opportunity to receive a premium for their shares. Mr. Shalom’s interests may not always be aligned with the interests of other stockholders, and he may exercise his voting power in a manner that ~~could~~advances ~~prevent~~his ~~capital~~own ~~raising~~interests to the detriment of other stockholders.

In addition, Mr. Shalom involvement in other companies could give rise to conflicts of interest, including with respect to the allocation of business opportunities, corporate resources, and management attention.

The holders of our Series B Convertible Preferred Stock has additional voting power as compared to the holders of our Common Stock.

The holders of our Series B Convertible Preferred Stock is entitled to 10,000 votes per share on matters submitted to a vote of stockholders. If we consummate the second tranche of the investment and receive an additional $10,000,000, the holders of our Series B Convertible Preferred stock will hold 400 shares. This will entitle the holders to no less than 4,000,000 votes, which further concentrates voting power among a limited number of security holders and may limit the ability of holders of Common Stock to influence corporate governance and strategic decisions. The concentration of ownership and voting power may also discourage potential acquirers from attempting to obtain control of the Company and may make it more difficult for other stockholders to effect changes in the composition of our Board of Directors or management, which could adversely affect the market price of our Common Stock.

We may never achieve profitability.

We have a history of losses, minimal current revenue, massive transformation costs, and highly uncertain future revenue. Even if our transformation succeeds, the defense industry’s long sales cycles, competitive pressures, and contract risks may prevent profitability. We may exhaust our resources before generating sustainable revenue, resulting in total loss of investment.

Cyberattacks and security breaches of our systems, or those impacting our customers or third parties, could adversely impact our brand and reputation and our business, operating results and financial condition.

As we transition to the defense industry, we will handle highly sensitive defense-related data, technical specifications, and potentially classified information once we obtain necessary clearances. Our business will involve the collection, storage, processing and transmission of confidential information, defense contractor data, employee, service provider and other personal data, as well as information required to support defense programs. For our defense operations, we must build our reputation on the premise that our systems meet stringent defense industry security requirements including CMMC, DFARS, and NIST standards. As a result, any actual or perceived security breach of us or our third-party partners may:

●

harm our reputation and brand and potentially result in loss of facility security clearances;

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result in our systems or services being unavailable and interrupt our operations;

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result in improper disclosure of data and violations of applicable privacy laws, ITAR, EAR, and defense regulations;

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result in significant regulatory scrutiny, investigations, fines, penalties, potential debarment from defense contracts, and other legal, regulatory and financial exposure;

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cause us to incur significant remediation costs;

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compromise classified or controlled technical information critical to defense programs;

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reduce defense contractors’ confidence in, or decrease use of, our products and services;

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divert the attention of management from the operation of our business;

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result in significant compensation or contractual penalties from us to our customers including the U.S. government or third parties as a result of losses to them or claims by them; and

●

adversely affect our business and operating results.

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Further, any actual or perceived breach or cybersecurity attack directed at other defense contractors or government systems, whether or not we are directly impacted, could lead to a general loss of customer confidence in our ability to protect sensitive defense information, which could negatively impact us including the market perception of the effectiveness of our security measures and technology infrastructure.

An increasing number of organizations, including defense contractors, government agencies, and critical infrastructure providers, have disclosed breaches of their information security systems, some of which have involved sophisticated and highly targeted attacks, including on their websites, classified networks, and infrastructure. Attacks upon systems across the defense industry are increasing in their frequency, persistence, and sophistication, and, in many cases, are being conducted by sophisticated, well-funded, and organized groups and individuals, including nation-state actors specifically targeting defense contractors. The techniques used to obtain unauthorized, improper, or illegal access to systems and information (including customers’ personal data and digital assets), disable or degrade services, or sabotage systems are constantly evolving, may be difficult to detect quickly, and often are not recognized or detected until after they have been launched against a target. These attacks may occur on our systems or those of our third-party service providers or partners. Certain types of cyberattacks could harm us even if our systems are left undisturbed. For example, attacks may be designed to deceive employees and service providers into releasing control of our systems to a hacker, while others may aim to introduce computer viruses or malware into our systems with a view to stealing confidential or proprietary data. Additionally, certain threats are designed to remain dormant or undetectable until launched against a target and we may not be able to implement adequate preventative measures.

Although we do not have a past history of material security breaches or cyberattacks, as we enter the defense industry we will become a more attractive target for state-sponsored attacks. We are developing systems and processes designed to protect the data we manage, prevent data loss and other security breaches, and meet defense industry cybersecurity requirements. We expect to continue to expend significant resources to bolster these protections, but there can be no assurance that these security measures will provide absolute security or prevent breaches or attacks. Threats can come from a variety of sources, including criminal hackers, hacktivists, state-sponsored intrusions, industrial espionage, and insiders. In the defense industry, certain threat actors are supported by significant financial and technological resources, making them even more sophisticated and difficult to detect. As a result, our costs and the resources we devote to protecting against these advanced threats and their consequences will increase over time.

Although we maintain insurance coverage that we believe is adequate for our business, it may be insufficient to protect us against all losses and costs stemming from security breaches, cyberattacks, and other types of unlawful activity, or any resulting disruptions from such events. Defense-specific cyber insurance is particularly expensive and may exclude nation-state attacks. Outages and disruptions of our systems, including any caused by cyberattacks, may harm our reputation and our business, operating results, and financial condition.

Adverse economic conditions may adversely affect our business.

Our future performance in the defense industry is subject to general economic conditions, defense budget appropriations, continuing resolutions, sequestration risks, and geopolitical tensions that drive defense spending. The United States and other key defense markets experience cyclical changes in defense budgets from time to time based on political priorities, threat assessments, and fiscal constraints. Defense spending is subject to annual appropriations and can be affected by government shutdowns, budget caps, and changing national security priorities. The impact of defense budget cycles on our business is highly uncertain and dependent on a variety of factors, including congressional appropriations, international conflicts, emerging threats, and other events beyond our control. Geopolitical developments, such as regional conflicts, arms races, and alliance dynamics can directly impact defense spending priorities. To the extent that defense budgets are reduced or reallocated away from our focus areas, our ability to win contracts and generate revenue may suffer.

We may be adversely affected by natural disasters, pandemics, and other catastrophic events, and by man-made problems such as war or terrorism, that could disrupt our business operations, and our business continuity and disaster recovery plans may not adequately protect us from a serious disaster.

Natural disasters or other catastrophic events may cause damage or disruption to our operations, international commerce, and the global economy, and could have an adverse effect on our business, operating results, and financial condition. Our business operations are subject to interruption by natural disasters, fire, power shortages, and other events beyond our control. Our Israeli subsidiaries face particular risks from regional conflicts, including potential facility damage, workforce mobilization for military service, and operational disruptions.

In addition, our global operations expose us to risks associated with public health crises, such as pandemics and epidemics, which could harm our business and cause our operating results to suffer. Defense programs may be delayed or suspended during national emergencies, affecting our revenue and operations.

Further, war, acts of terrorism, labor activism and other geopolitical unrest could cause disruptions in our business or the businesses of our partners or the economy as a whole. While increased global tensions may drive defense spending, they also create operational risks for our international operations, particularly in Israel. In the event of a natural disaster, including a major earthquake, blizzard, or hurricane, or a catastrophic event such as a fire, power loss, or telecommunications failure, we may be unable to continue our operations and may endure system interruptions, reputational harm, delays in program execution, lengthy interruptions in service, breaches of data security, and loss of critical data, all of which could have an adverse effect on our future operating results.

Acquisitions, joint ventures or other strategic transactions create certain risks and may adversely affect our business, financial condition or results of operations.

Acquisitions, partnerships and joint ventures are central to our transformation strategy. We recently completed our acquisitions of Star 26, Tiltan and Nimbus, each of which is an Israeli defense company, and divested our Digital RFQ business. We may not be successful in finding additional defense acquisition targets. In addition, we may not be able to successfully finance or integrate any defense businesses given our complete lack of defense industry experience.

We may not be able to identify suitable defense acquisition candidates or complete acquisitions in the future, which could adversely affect our future growth; or businesses that we acquire may not perform as well as expected or may be more difficult or expensive to integrate and manage than expected, particularly given the specialized nature of defense operations and our lack of industry knowledge, which could adversely affect our business and results of operations. In addition, the process of integrating these acquisitions may disrupt our business and divert our resources.

In addition, acquisitions of defense companies, particularly those outside our current operating jurisdictions often involve additional or increased risks including, for example:

●

managing geographically separated organizations, systems and facilities with different security requirements;

●

integrating personnel with security clearances and diverse business backgrounds and organizational cultures;

●

complying with defense export controls and foreign regulatory requirements;

●

fluctuations in exchange rates;

●

enforcement and protection of intellectual property and controlled technical data in some foreign countries;

●

difficulty entering new foreign markets due to, among other things, national security restrictions, customer acceptance and business knowledge of these new markets; and

●

general economic and political conditions affecting defense relationships between countries.

These risks may arise for a number of reasons: we may not be able to find suitable defense businesses to acquire at affordable valuations or on other acceptable terms; we may face competition for acquisitions from other established defense companies; we may need to borrow money or sell equity or debt securities to the public to finance acquisitions and the terms of these financings may be adverse to us; changes in accounting, tax, securities or other regulations could increase the difficulty or cost for us to complete acquisitions; we may incur unforeseen obligations or liabilities in connection with acquisitions including environmental remediation costs common in aerospace facilities; we may need to devote unanticipated financial and management resources to an acquired business; we may not realize expected operating efficiencies or product integration benefits from an acquisition; we are entering the defense market where we have no prior experience; and we may experience decreases in earnings as a result of non-cash impairment charges.

We cannot ensure that any acquisition, partnership or joint venture we make will not have a material adverse effect on our business, financial condition and results of operations.

Delaware law and our Amended and Restated Certificate of Incorporation and Amended and Restated Bylaws contain certain provisions, including anti-takeover provisions that limit the ability of stockholders to take certain actions and could delay or discourage takeover attempts that stockholders may consider favorable.

The Company’s Amended and Restated Certificate of Incorporation and Amended and Restated Bylaws contain provisions that could have the effect of rendering more difficult, delaying, or preventing an acquisition deemed undesirable by the Board and therefore depress the trading price of our Common Stock. Additionally, our foreign ownership structure and defense operations may trigger CFIUS review of certain transactions, potentially limiting strategic alternatives. In addition, as a Delaware corporation, the Company will generally be subject to provisions of Delaware law, including the DGCL. These provisions could also make it difficult for stockholders to take certain actions, including electing directors who are not nominated by the current members of the Board or taking other corporate actions, including effecting changes in management.

Such provisions, alone or together, could delay or prevent hostile takeovers and changes in control or changes in the Board or management.

Any provision of the Company’s Amended and Restated Certificate of Incorporation or Amended and Restated Bylaws or Delaware law that has the effect of delaying or preventing a change in control could limit the opportunity for stockholders to receive a premium for their shares of the Company’s capital stock and could also affect the price that some investors are willing to pay for our Common Stock.

USE OF PROCEEDS

The Selling Stockholders will receive all of the proceeds from the sale of the Shares offered by ~~them~~it pursuant to this prospectus. We will not receive any proceeds from the sale of the Shares by the Selling Stockholders, however, we would receive proceeds upon such Selling ~~Stockholders~~ Stockholder’s cash exercise of the ~~Warrant~~Common Warrants. If the Selling Stockholders fully exercise the ~~Warrant~~Common Warrants for cash, proceeds would be approximately $~~18,026,472~~30 million. We can give no assurances that any of the ~~Warrant~~Common Warrants will be exercised, nor can we give any assurances that we will receive any proceeds from the Selling Stockholders’ sale pursuant to this prospectus.

We intend to use any proceeds from the Selling Stockholders’ exercise of the ~~Warrant~~Common Warrants for working capital and other general corporate purposes. We may use a portion of any proceeds we might receive for acquisitions of complementary businesses, technologies, or other assets. However, we have no commitments to use any proceeds we might receive from this offering for any such acquisitions or investments at this time.

We will bear the out-of-pocket costs, expenses and fees incurred in connection with the registration of the Shares to be sold by the Selling Stockholders pursuant to this prospectus. Other than registration expenses, the Selling Stockholders will bear underwriting discounts, commissions, placement agent fees or other similar expenses payable with respect to sales of the Shares.

DIVIDEND POLICY

To date, we have not paid dividends on shares of our Common Stock and we do not expect to declare or pay dividends on shares of our Common Stock in the foreseeable future. The payment of any dividends will depend upon our future earnings, if any, our financial condition, and other factors deemed relevant by our Board.

SELECTED HISTORICAL FINANCIAL CONSOLIDATED FINANCIAL DATA

The following tables set forth our selected historical consolidated financial data as of the dates and for the periods indicated. The selected historical consolidated financial data as of and for nine months ended September 30, 2025, three months ended December 31, 2024, and the years ended September 30, 2024 and 2023 were derived from our audited consolidated financial statements and related notes thereto included elsewhere in this prospectus. Our historical results are not necessarily indicative of the results that should be expected for any future period. You should read the following selected historical consolidated financial data together with the consolidated financial statements and related notes and Management’s Discussion and Analysis of Financial Condition and Results of Operations included elsewhere in this prospectus.

	Nine Months Ended September 30,			Three Months Ended December 31,			Year Ended September 30,
	2025			2024			2024			2023
Consolidated statements of operations data (2):
Total Revenue	$	568,860		$	403,558		$	5,913,461		$	21,297,642
Total Cost of revenues		95,929			42,944			4,914,945			21,640,783
Gross profit (loss)		472,931			360,614			998,516			(343,141	)
Total operating expenses		8,118,738			4,949,421			15,176,526			17,120,080
Loss from Operations		(7,645,807	)		(4,588,807	)		(14,178,010	)		(17,463,221	)
Total Other (Expense) Income, Net		97,257,043			(156,199,172	)		5,659,490			34,793
Income (Loss) Before Income Taxes		89,611,236			(160,787,979	)		(8,518,520	)		(17,428,428	)
Income Taxes		-			-			--			--
Net Income (Loss)	$	89,611,236		$	(160,787,979	)	$	(8,518,520	)	$	(17,428,428	)
Unrealized foreign currency transaction gain (loss)		32,171			110,435			(176,842	)		(26,260	)
Comprehensive income (loss)		89,643,407			(160,677,544	)		(8,695,362	)		(17,454,688	)
Net Income (Loss) per share, basic	$	14.66		$	(51.96	)	$	(4.93	)	$	(13.84	)
Net Income per share, diluted		11.47			-			-			-
Weighted average shares attributable to ordinary shareholders, basic		6,111,279			3,094,253			1,728,144			1,259,333
Weighted average shares attributable to ordinary shareholders, diluted		7,813,592			3,094,253			1,728,144			1,259,333

	At September 30,			At December 31,			At September 30,
	2025			2024			2024			2023
Consolidated statements of financial position data:
Cash, including discontinued operations	$	7,611,465		$	7,046,376		$	3,678		$	19,318
Working capital (1)		(30,512,429	)		(162,355,969	)		(6,104,362	)		(6,195,057	)
Total assets		13,287,908			9,109,284			984,999			3,352,625
Total liabilities		43,705,879			172,459,393			8,082,712			9,545,855
Total equity		(30,417,971	)		(163,350,109	)		(7,097,713	)		(6,193,230	)

(1)	Working capital is defined as total current assets minus total current liabilities.
(2)	All figures presented with inclusion of results from discontinued operations

T3 DEFENSE INC. AND SUBSIDIARIES

UNAUDITED PRO FORMA CONDENSED COMBINED FINANCIAL STATEMENTS

Star Acquisition

On December 15, 2024, the Company entered into the Securities Purchase Agreement and Call Option, which was subsequently amended on each of February 11, 2025, May 13, 2025, June 15, 2025 and July 25, 2025. Said agreement, as amended, provided that the Company would acquire 51% of Star and the Star Equity Holders would grant the Company an option to purchase the balance of the equity. Mr. Shalom, who is the Chief Executive Officer and a director of the Company, is a controlling shareholder, Chief Executive Officer and a director of Star.

On September 15, 2025, the parties executed and delivered the Amended and Restated Securities Purchase Agreement with Star, the Star Equity Holders and Menachem Shalom, the representative of such shareholders, to memorialize the proposed Transaction. Pursuant to the Star Agreement, the Company at closing will acquire 100% of the issued and outstanding capital of Star in consideration of (i) $21,000,000, to be paid by a 12-month $16,000,000 promissory note and the balance in $5,000,000 cash, less any amounts lent to Star from the Company since the Original Star Purchase Agreement, (ii) 4,770,340 shares of common stock of the Company (the “Shares”), (iii) a five-year warrant (the “Star Warrant”) to purchase an aggregate of 12,017,648 shares of the Company’s common stock for an exercise price of $1.50 per share, (iv) $3,000,000 in cash and (v) a 6-month promissory note in the principal amount of $3,000,000, which shall accrue interest at the rate of 8%. The Shares, Star Warrants, cash and the 6-month note will be assigned by Star to the Star Equity Holders pro ratably. If the Star Agreement is terminated as a result of the Company failing to perform or observe the covenants or agreements of the Company or if Company fails to maintain its listing on Nasdaq, Star shall be entitled to a payment from the Company in the amount of $3,000,000.

The closing of the Transaction is subject to customary closing conditions, including approval by the Company’s shareholders as required under applicable Nasdaq listing rules. As a result of the above transaction, the Shares issued to Star and assigned to the Star Equity Holders represents 16.4% of the issued and outstanding shares of Common Stock as of the date of this prospectus. Further, assuming the Star Equity Holders have exercised the Star Warrant, the Star Equity Holders would hold an aggregate of 16,787,988 shares of Common Stock representing 57.6% of the issued and outstanding shares of Common Stock of the Company as of the date of this prospectus.

On January 12, 2026, the Company completed the Star Acquisition. As a result of the acquisition, Star became a wholly owned subsidiary of the Company. The transaction was approved by the Company’s shareholders on December 16, 2025 and confirmed by the Nasdaq Stock Market on January 9, 2026.

The unaudited pro forma condensed combined financial information is presented to illustrate the effects of the acquisition of Star, as if it had occurred on January 1, 2024, the beginning of the most recently completed fiscal year preceding the Star Acquisition. The unaudited pro forma condensed combined financial statements were prepared in accordance with Article 11 of Regulation S-X, as amended by Securities and Exchange Commission (the “SEC”) Final Rule Release No. 33-10786, Amendments to Financial Disclosures About Acquired and Disposed Businesses and are presented to illustrate the estimated effects of the Star Acquisition and Related Transactions.

The unaudited pro forma condensed combined balance sheet as of September 30, 2025 and the unaudited pro forma condensed combined statements of operations for the nine months ended September 30, 2025 and for the year ended December 31, 2024 are based upon, derived from and should be read in conjunction with the Company’s historical unaudited condensed consolidated financial statements for the nine months ended September 30, 2025 and the Company’s historical audited consolidated financial statements for the three months ended December 31, 2024 and for the year ended September 30, 2024 (which are available in the Company’s Annual Report on Form 10-K for the three months ended December 31, 2024 and the year ended September 30, 2024, as filed with the SEC on May 8, 2025 and February 10, 2025, respectively), as amended on each of July 9, 2025 and April 14, 2025 and the unaudited historical financial statements as of September 30, 2025 and for the nine months ended September 30, 2025 of Star and the audited historical financial statements of Star as of and for the year ended December 31, 2024 included in this proxy statement.

The historical combined financial information has been adjusted to give pro forma effect to reflect the accounting for the Star Acquisition in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”). In the opinion of management, all adjustments necessary to present fairly the unaudited pro forma condensed combined financial information have been made. The assumptions underlying the pro forma adjustments are described fully in the accompanying notes, which should be read in conjunction with the unaudited pro forma condensed combined financial information.

The Star Acquisition is being accounted for as a business combination using the acquisition method of accounting under the provisions of Accounting Standards Codification (“ASC”) Topic 805, “Business Combinations” (“ASC 805”). Under ASC 805, all assets acquired and liabilities assumed are recorded at their acquisition date fair value. The allocation of the purchase price as reflected in the unaudited pro forma condensed combined financial information is based upon management’s internally developed preliminary estimates of the fair market value of the assets acquired and liabilities assumed, as if the Star Acquisition had occurred on the aforementioned dates. This allocation of the purchase price depends upon certain estimates and assumptions, all of which are preliminary and, in some instances, are incomplete and have been made solely for the purpose of developing the unaudited pro forma condensed combined financial information. Any adjustments to the preliminary estimated fair value amounts could have a significant impact on the unaudited pro forma condensed combined financial information contained herein, and our future results of operations and financial position.

The unaudited pro forma condensed combined financial information is not necessarily indicative of the combined financial position or results of operations that would have been realized had the Star Acquisition occurred as of the dates indicated, nor is it meant to be indicative of any anticipated combined financial position or future results of operations that the Company will experience after the Star Acquisition.

T3 DEFENSE INC. AND SUBSIDIARIES

UNAUDITED PRO FORMA CONDENSED COMBINED BALANCE SHEET

AS OF SEPTEMBER 30, 2025

	T3 Defense Inc.			Acquisition of Star26			Transaction Adjustments (Note 4)			Note Ref	Pro Forma Combined
Assets
Current assets
Cash and cash equivalents	$	7,611,465			924,000		$	(3,500,000	)	A	$	5,756,865
								721,400		I
Restricted Cash		-			60,000			-				60,000
Short term bank deposits		-			119,000			-				119,000
Marketable securities		-			289,000			-				289,000
Digital assets		32,182			-			(11,196	)	F		20,986
Accounts Receivable		-			478,000			-				478,000
Note receivable - related party		4,500,000			-			(4,500,000	)	A		-
Due from Affiliates		243,915										243,915
Current assets from discontinued operations		-			-			-				-
Inventory		-			1,544,000			-				1,544,000
Other current assets		730,894			412,000			(125	)	F		4,620,269
Other current assets								3,477,500		G
Total current assets		13,118,456			3,826,000			(8,011,321	)			13,132,035
Funds in respect of employee rights upon retirement		-			79,000			-				79,000
Long-term loan to other Company		-			2,432,000			-				2,432,000
Deferred taxes		-			284,000			-				284,000
Intangible assets, net					134,000			200,435		B		334,435
Goodwill		-			-			66,416,272		B		86,941,272
								20,525,000		G
Operating lease right-of-use assets		153,569			1,046,000			-				1,199,569
Other assets from discontinued operations		-			-			-				-
Property and equipment, net		15,883			172,000			-				187,883
Total assets	$	13,287,908			7,973,000		$	83,329,286			$	104,590,194
Liabilities and stockholders’ equity (deficit)
Current liabilities
Short term loans	$	-			1,903,000			-			$	1,903,000
Short term loans – related party		-			4,500,000			-				4,500,000
Intercompany		-			-			-				-
Accounts payable		87,420			865,000			-				952,420
Convertible notes payable, net		-			-			3,250,000		G		3,250,000
Note Payable, net		-			-			19,000,000		C		29,500,000
								10,500,000		G
Due to affiliates		233,068			-			-				233,068
Loans payable – related parties, current		1,566,988			-			-				1,566,988
Interest payable – related parties, current		108,417			-			-				108,417
Accrued expenses and other current liabilities		816,224			1,630,000			42,091		B		2,488,315
Accrued expenses and other current liabilities – related party		-			548,000			-				548,000
Derivative liabilities		-										-
Stock purchase warrants, liability classified		40,740,193			203,000			(3,048,532	)	F		37,894,661
Current liabilities from discontinued operations		-										-
Operating lease liabilities, current portion		78,575			316,000			-				394,575
Total current liabilities		43,630,885			9,965,000			29,743,559				83,339,444
Liability for employees’ rights upon retirement		-			112,000			-				112,000
Loans payable - related parties, net of current portion		-			-			-				-
Interest payable - related parties, net of current portion		-			-			-				-
Non-current liabilities from discontinued operations		-										-
Long-term loans from Banks		-			537,000			-				537,000
Operating lease liabilities		74,994			752,000			-				826,994
Total liabilities		43,705,879			11,366,000			29,743,559				84,815,438
Commitments and contingencies
Stockholders’ equity
Preferred stock ($0.0001 par value; 15,000,000 shares authorized; 200 shares issued and outstanding at September 30, 2025)		-			-							-
Common stock ($0.0001 par value; 150,000,000 shares authorized; 11,096,264 shares issued and outstanding at September 30, 2025; on a proforma basis 29,168,154 shares issued and outstanding)		1,110			-			477		D		2,917
								640		F
								386		G
								251		H
								53		I
Class A common stock, par value $0.0001 per share, 250,000,000 shares authorized and 5,075,000 shares issued and outstanding as of September 30, 2025		-			508			(508	)	E		-
Class B common stock, par value $0.0001 per share, 50,000,000 shares authorized and 6,250,000 shares issued and outstanding as of September 30, 2025		-			625			(625	)	E		-
Additional paid in capital		81,047,703			322,868			35,854,271		D		152,860,369
								24,362,316		F
								10,252,115		G
								299,749		H
								721,347		I
Other comprehensive income		(2,277	)		(74,000	)		74,000		E		(2,277	)
Accumulated deficit		(111,464,507	)		(3,647,000	)		3,647,000		E		(133,090,253	)
								(21,325,746	)	F
								(300,000	)	I
Total T3 Defense Inc. stockholders’ equity (deficit)		(30,417,971	)		(3,397,000	)		53,585,727				19,770,756
Non-controlling interest		-			4,000			-				4,000
Total stockholders’ equity (deficit)		(30,417,971	)		(3,393,000	)		53,585,727				19,774,756
Total liabilities and stockholders’ equity (deficit)	$	13,287,908			7,973,000		$	83,329,286			$	104,590,194

Refer to accompanying notes

T3 DEFENSE INC. AND SUBSIDIARIES

UNAUDITED PRO FORMA CONDENSED COMBINED STATEMENT OF OPERATIONS

FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2025

	T3 Defense Inc.			Acquisition of Star26			Disposition of DRFQ		Adjustments (Note 5)			Note Ref		Pro Forma Combined
REVENUES
Revenue - other	$	-			2,711,000			-	$						2,711,000
Total revenues		-			2,711,000			-		-					2,711,000
COSTS OF REVENUES
Cost of revenue - other		-			2,355,000			-		-					2,355,000
Total costs of revenues		-			2,355,000			-		-					2,355,000
GROSS PROFIT (LOSS)
Gross Profit (loss) - other		-			356,000			-		-					356,000
Total Gross Profit (Loss)		-			356,000			-		-					356,000
OPERATING EXPENSES
Professional fees		6,051,719								14,570,800			BB		20,622,519
Compensation and related benefits		365,988								4,243,750			BB		4,609,738
Amortization of intangible assets		-			63,000					2,500			AA		65,500
Disposal of intangible assets		-			1,812,000										1,812,000
Other general and administrative		909,275			1,867,000										2,776,275
Other general and administrative - related party		-			258,000										258,000
Total operating expenses		7,326,982			4,000,000					18,817,050					30,144,032
LOSS FROM OPERATIONS		(7,326,982	)		(3,644,000	)				(18,817,050	)				(29,788,032	)
															-
OTHER (EXPENSE) INCOME:															-
Interest expense		(407,971	)		423,000										15,029
Interest expense - related parties		(64,306	)		-										(64,306	)
Penalty - late registration		(800,000	)							(300,000	)		DD		(1,100,000	)
Loss on debt extinguishment		(7,484,152	)												(7,484,152	)
Change in fair value of liability classified stock purchase warrants		123,369,695													123,369,695
Change in fair value of derivative liabilities		587,790													587,790
Change in fair value of digital assets		(967,818	)							(2,511,196	)		CC		(3,479,014	)
Gain on disposition of subsdiary		2,491,485													2,491,485
Day one loss on private placement		(19,605,956	)												(19,605,956	)
Other income (expense)		280,422			-										280,422
Total other income (expense), net		97,399,189			423,000					(2,811,196	)				95,310,993
INCOME (LOSS) BEFORE INCOME TAXES		90,072,207			(3,221,000	)				(21,628,246	)				65,222,961
Income tax expense		-			49,000					-					49,000
NET INCOME (LOSS) FROM CONTINUING OPERATIONS		90,072,207			(3,172,000	)				(21,628,246	)				65,271,961
Net Income (loss) from discontinued operations		(460,971	)		-			460,971							-
Net Income (Loss)		89,611,236			(3,172,000	)		460,971		(21,628,246	)				65,271,961
Net income (loss) attributable to noncontrolling interest		-			(82,000	)									(82,000	)
Net income (loss) attributable to T3 Defense Inc.		89,611,236			(3,090,000	)		460,971		(21,628,246	)				65,353,961
Income (loss) per common share, basic:
Income (loss) from continuing operations, net of tax		14.74								(1.20	)				2.70
Income (loss) from discontinued operations, net of tax		(0.08	)							-					-
Net income (loss)		14.66								(1.20	)				2.70
Income (loss) per common share, diluted:
Income (loss) from continuing operations, net of tax		11.53								(1.20	)				2.52
Income (loss) from discontinued operations, net of tax		(0.06	)							-					-
Net income (loss)		11.47								(1.20	)				2.52
Weighted-average shares outstanding:
Basic		6,111,279								18,071,890					24,183,169
Diluted		7,813,592								18,071,890					25,885,482

Refer to accompanying notes

T3 DEFENSE INC. AND SUBSIDIARIES

UNAUDITED PRO FORMA CONDENSED COMBINED STATEMENT OF OPERATIONS

FOR THE YEAR ENDED DECEMBER 31, 2024

	T3 Defense Inc.			Acquisition of Star26			Disposition of DRFQ		Transaction Adjustments (Note 4)			Note Ref		Pro Forma Combined
REVENUES
Revenue - other	$	-			4,994,000			-						$	4,994,000
Total revenues		-			4,994,000			-		-					4,994,000
COSTS OF REVENUES															-
Cost of revenue - other		-			3,808,000			-		-					3,808,000
Total costs of revenues		-			3,808,000			-		-					3,808,000
															-
GROSS PROFIT (LOSS)															-
Gross Profit (loss) - other		-			1,186,000			-		-					1,186,000
Total Gross Profit (Loss)		-			1,186,000			-		-					1,186,000
OPERATING EXPENSES
Professional fees		7,596,190													7,596,190
Compensation and related benefits		1,270,799								-					1,270,799
Amortization of intangible assets		-			74,000					13,333			AA		87,333
Other general and administrative		692,221			1,296,000										1,988,221
Other general and administrative		-			307,000										307,000
Impairment loss		293,413													293,413
Total operating expenses		9,852,622			1,677,000					13,333					11,542,955
															-
LOSS FROM OPERATIONS		(9,852,622	)		(491,000	)				(13,333	)				(10,356,955	)
OTHER (EXPENSE) INCOME:
Interest expense		(696,826	)		(105,000	)									(801,826	)
Interest expense - related parties		(33,083	)		(38,000	)									(71,083	)
Loss on settlement of vendor obligations		(494,619	)												(494,619	)
Gain on extinguishment of vendor obligations		158,400													158,400
Gain on extinguishment of due to affiliates		144,052													144,052
Gain on sale of investment		63,759													63,759
Day one loss on stock purchase warrants issued in connection with private placement		(13,533,404	)												(13,533,404	)
Day one loss of stock purchase warrants issued in connection with conversion of convertible notes		(663,408	)												(663,408	)
Change in fair value of liability classified stock purchase warrants		(140,584,780	)												(140,584,780	)
Change in fair value of derivative liabilities		(624,888	)												(624,888	)
Loss on reclassification of stock purchase warrants from equity-classified to liability-classified		(45,784	)												(45,784	)
Gain on disposition of subsidiary										2,074,600			BB		2,074,600
Other income (expense)		-			55,000										55,000
Total other income (expense), net		(156,310,582	)		(88,000	)				2,074,600					(154,323,982	)
															-
LOSS BEFORE INCOME TAXES		(166,163,203	)		(579,000	)				2,061,267					(164,680,937	)
Income tax expense		-			24,000					-					24,000
NET LOSS FROM CONTINUING OPERATIONS	$	(166,163,203	)		(555,000	)				2,061,267					(164,656,937	)
Net loss from discontinued operations		(1,013,666	)		-			1,013,666							-
NET LOSS		(167,176,869	)		(555,000	)		1,013,666		2,061,267				$	(164,656,937	)
Net loss attributable to noncontrolling interest		-			(271,950	)		-		-					(271,950	)
Net loss attributable to T3 Defense Inc.		(167,176,869	)		(283,050	)		1,013,666		2,061,267					(164,384,987	)
Income (loss) per common share, basic:
Income (loss) from continuing operations, net of tax	$	(33.70	)							0.43				$	(16.95	)
Income (loss) from discontinued operations, net of tax	$	(0.21	)							-				$	-
Net income (loss)	$	(33.91	)							0.43				$	(16.95	)
Income (loss) per common share, diluted:
Income (loss) from continuing operations, net of tax	$	(33.70	)							0.43				$	(16.95	)
Income (loss) from discontinued operations, net of tax	$	(0.21	)							-				$	-
Net income (loss)	$	(33.91	)							0.43				$	(16.95	)
Weighted-average shares outstanding:
Basic		4,930,531								4,770,340					9,700,871
Diluted		4,930,531								4,770,340					9,700,871

Refer to accompanying notes

T3MANAGEMENT’S DISCUSSION ~~DEFENSE~~AND ~~INC.~~ANALYSIS OF FINANCIAL CONDITION AND ~~SUBSIDIARIES~~RESULTS OF OPERATIONS

~~NOTES~~The following TOdiscussion ~~THE~~and ~~UNAUDITED~~analysis ~~CONDENSED~~summarizes ~~COMBINED~~the ~~FINANCIAL~~significant factors affecting our financial condition, operating results, liquidity ~~STATEMENTS~~and cash flows as of and for the periods presented below. The following discussion and analysis should be read in conjunction with our consolidated financial statements and related notes thereto included elsewhere in this report. The discussion contains forward-looking statements that are based on the beliefs of management, as well as assumptions made by, and information currently available to, management. Actual results could differ materially from those discussed in or implied by forward-looking statements as a result of various factors, including those discussed below and elsewhere in this report, particularly in the sections titled “Risk Factors” and “Special Note Regarding Forward-Looking Statements.”

~~Note~~Unless the 1context -otherwise ~~Description~~requires, references in this “Management’s Discussion and Analysis of ~~Transaction~~Financial Condition and Results of Operations” to “T3 Defense”, “we”, “us”, “our”, and the “Company” are intended to refer to (i) following the Business Combination (as defined below), the business and operations of T3 Defense Inc and its consolidated subsidiaries, and (ii) prior to the Business Combination, Old Nukk (the predecessor entity in existence prior to the consummation of the Business Combination) and its consolidated subsidiaries.

~~On December 15, 2024, the~~ Company ~~entered into the Securities Purchase Agreement and Call Option, which was subsequently amended on each of February 11, 2025, May~~ 13, 2025, June 15, 2025 and July 25, 2025. Said agreement, as amended, provided that the Company would acquire 51% of Star and the Star Equity Holders would grant the Company an option to purchase the balance of the equity. Mr. Shalom, who is the Chief Executive Officer and a director of the Company, is a controlling shareholder, Chief Executive Officer and a director of Star.Overview

~~On September 15, 2025, the~~Following ~~parties executed and delivered~~ the ~~Amended~~appointment ~~and~~in ~~Restated~~September ~~Securities~~2024 ~~Purchase~~of ~~Agreement with Star, the Star Equity Holders and~~ Menachem Shalom, ~~the~~our ~~representative~~current ofchief ~~such~~executive ~~shareholders,~~officer ~~to memorialize the proposed Transaction. Pursuant to the Star Agreement, the Company at closing will acquire 100% of the issued~~ and ~~outstanding~~a ~~capital of Star in consideration of (i) $21~~director,~~000,000,~~ towe behave ~~paid~~transformed byfrom a ~~12-month~~ ~~$16,000,000~~financial ~~promissory~~technology ~~note~~services ~~and~~provider ~~the~~into ~~balance~~a instrategic ~~$5,000,000~~acquirer ~~cash,~~and ~~less~~operator ~~any amounts lent to Star from the Company since the Original Star Purchase Agreement, (ii) 4,770,340 shares~~ of ~~common~~aerospace ~~stock~~and ofdefense ~~the Company~~ (~~the “Shares”~~A&D), ~~(iii)~~businesses. aWe ~~five-year~~are ~~warrant (the “Star~~building ~~Warrant”)~~a toportfolio ~~purchase an aggregate~~ of ~~12,017,648~~mission-critical ~~shares~~suppliers ofand ~~the~~advanced ~~Company’s~~technology ~~common~~companies ~~stock for an exercise price of $1.50 per share, (iv) $3,000,000 in cash~~ and ~~(v)~~strategic ainfrastructure ~~6-month~~opportunities ~~promissory~~across ~~note in~~ the ~~principal amount of $3~~defense,~~000,000, which shall accrue interest at the rate~~ ~~of 8%.The Shares~~aerospace, ~~Star Warrants, cash~~ and ~~the~~advanced ~~6-month~~manufacturing ~~note~~sectors ~~will~~across ~~be assigned by Star to~~ the ~~Star~~United Equity Holders pro ratably. If the Star Agreement is terminated as a result of the Company failing to perform or observe the covenants or agreements of the Company or if Company fails to maintain its listing on NasdaqStates, ~~Star~~Israel ~~shall~~and ~~be entitled to a payment from the Company in the amount of $3,000,000~~Europe.

OnThe Company ~~January~~is 12positioned as a strategic platform company focused on acquiring, ~~2026~~integrating, ~~the~~and ~~Company completed~~scaling high-impact businesses in the ~~Star~~aerospace and ~~Acquisition~~defense industries. AsOur astrategy ~~result~~targets ofTier ~~the~~2 ~~acquisition,~~and ~~Star~~Tier ~~became~~3 asuppliers ~~wholly~~that ~~owned~~form ~~subsidiary~~the industrial backbone of ~~the~~national ~~Company~~security infrastructure, with ~~and~~particular ~~the~~emphasis ~~Company’s business~~on iscompanies ~~now~~offering ~~focused~~dual-use ontechnologies, ~~the~~advanced ~~defense~~AI ~~sector~~applications, and critical manufacturing capabilities.

The ~~allocation~~financial ofresults for the ~~purchase~~quarter ended March ~~price~~31, ~~discussed~~2026 ~~below~~represent isthe ~~preliminary.~~first ~~The~~quarter ~~final~~that ~~allocation~~the Company consolidated the financial performance of the ~~purchase~~companies ~~price~~acquired ~~will~~during bethe three months then ended. Previously management determined atthat aas ~~later~~of ~~date~~fiscal ~~and~~year is2026, ~~dependent~~there on was $4.2 million in revenue, a ~~number~~backlog of ~~factors~~$12.1 million, ~~including~~and ~~the~~a ~~final~~$26 ~~evaluation~~million full-year revenue projection in connection with our first quarter operating as a defense company. The backlog of ~~the~~$12.1 ~~fair~~million ~~value~~represents signed orders by customers that are still in the process of ~~Star’s~~being ~~tangible~~delivered, ~~and~~while ~~identifiable~~the ~~intangible~~annual ~~assets~~revenue ~~acquired~~projection ~~and~~included ~~liabilities~~the ~~assumed.~~projected ~~Such~~revenues ~~final~~for ~~adjustments~~the quarter, ~~which~~estimate ~~may~~of ~~include~~the ~~other~~amount ~~increases~~of orbacklog ~~decreases~~for tothe ~~amortization~~full ~~resulting~~year ~~from~~and management estimates of the ~~allocation~~probabilities of the ~~purchase~~leads ~~price~~and toinquiries ~~amortizable~~from ~~tangible~~customers and ~~intangible~~potential ~~assets,~~customers ~~along~~which ~~with~~would ~~the~~translate ~~related~~into ~~income~~actual ~~tax~~revenues ~~effect,~~during ~~may~~this befiscal ~~material~~year.

Recent Developments

Nasdaq Notice of Failure to Satisfy Minimum Bid Price Requirement

On May 5, 2026, T3 Defense received a written notice (the “Notification Letter”) from The Nasdaq Stock Market, LLC ("Nasdaq") that it is not in compliance with the minimum bid requirements set forth in Nasdaq Listing Rule 5550(a)(2) for continued listing on The Nasdaq Global Market. Nasdaq Listing Rule 5550(a)(2) requires listed securities to maintain a minimum bid price of $1.00 per share, and Nasdaq Listing Rule 5810(c)(3)(A) provides that a failure to meet the minimum bid price requirement exists if the deficiency continues for a period of 30 consecutive business days. Based on the closing bid price of the Company’s common stock between March 23, 2026 to May 4, 2026, the Company no longer meets the minimum bid price requirement.

The Notification Letter provides that the Company has 180 calendar days, or until November 2, 2026, to regain compliance with Nasdaq Listing Rule 5550(a)(2). To regain compliance, the bid price of the Company's common stock must have a closing bid price of at least $1.00 per share for a minimum of 10 consecutive business days. If the Company does not regain compliance by November 2, 2026, the Company may be eligible for additional time to regain compliance. In such instance, the Company must submit an application and a non-refundable $5,000 application fee, so long as the Company meets The Nasdaq Global Market continued listing requirements (except for the bid price requirement) and notifies Nasdaq in writing of its intention to cure the deficiency during the second compliance period. If the Company does not qualify or fails to regain compliance, then Nasdaq will notify the Company of its determination to delist the Company's common stock.

The Company intends to monitor the closing bid price of its common stock and may, if appropriate, consider implementing available options, including, but not limited to, implementing a reverse stock split of its outstanding securities, to regain compliance with the minimum bid price requirement under the Nasdaq Listing Rules.

T3Conversion of ~~DEFENSE~~Debt ~~INC.~~for ~~AND SUBSIDIARIES~~Shares

~~NOTES~~On April TO27, ~~THE~~2026, ~~UNAUDITED~~the ~~CONDENSED~~Company ~~COMBINED~~and ~~FINANCIAL~~Menachem Shalom, the Company’s Chief Executive Officer and a member of the Company’s Board ~~STATEMENTS~~of Directors, executed and delivered the Note Exchange Agreement, pursuant to which the original principal amount of the notes issued to Mr. Shalom and accrued interest thereon in the amount of $2,138,962 was cancelled in its entirety in exchange for the issuance of 4,174,399 shares of common stock (the “Exchange Shares”). The exchange price of $0.5124 was the last consolidated bid price of a share of common stock as reported by The Nasdaq Stock Market LLC. The Exchange Shares are restricted shares and may not be sold without registration or an applicable exemption therefrom. The notes were assigned to Mr. Shalom from Star 26 pursuant to the terms of the Amended and Restated Securities Purchase Agreement and Call Option dated September 15, 2025 (the “Star Purchase Agreement”) among the Company, Star 26 and the other parties signatory thereto and pursuant to the exercise by Mr. Shalom of his right to obtain shares, notes and warrants from Esousa Group Holdings LLC (“Esousa”) in accordance with the terms of the Call Option Agreement dated January 13, 2026.

On April 27, 2026, the Board resolved that Menachem Shalom, the Company CEO and the holder of the notes assigned to him by Star 26 (currently aggregating $2,138,962 in outstanding principal) pursuant to the terms of the Star Purchase Agreement has the right to convert his notes based on the last consolidated bid price as reported by The Nasdaq Stock Market LLC., or $0.5124 per share. On said date, the Board also resolved to reduce the exercise price of the Star Warrant held by Menachem Shalom from $1.50 per share to $0.5124 per share. In connection with the consummation of the transactions contemplated by the Star Purchase Agreement on January 12, 2026, the Company had issued to Star 26 a warrant to purchase a total ~~consideration~~of ~~transferred~~12,017,648 shares of Common Stock at an exercise price of $1.50 per share, which was then distributed to the equity holders of Star 26 on a pro rata basis. Mr. Shalom’s share is ~~presented~~a aswarrant ~~follows:~~to purchase 7,175,662 shares of Common Stock.

Purchase consideration:
4,770,340 shares of Common Stock, at fair value*	$	18,151,144
12,017,648 warrants to purchase shares of Common Stock, at fair value		18,026,472
Notes payable		19,000,000
Cash paid		8,000,000
Total purchase consideration for 100% of Star	$	63,177,616

Sale of Zorro Net

*On April ~~based~~10, 2026, Water IO Ltd. (“Water IO”), an Israeli public company traded on ~~closing~~the ~~stock~~Tel ~~price~~Aviv atStock ~~January~~Exchange 12in which Star 26 Capital Inc. (“Star 26”), a wholly-owned subsidiary of T3 Defense Inc. (the “Company”), holds an approximately 67% equity interest, completed the sale of 100% of the issued and outstanding share capital of Zorro Net Ltd. (“Zorronet”), a wholly-owned subsidiary of Water IO, to BiomX Inc. (“BiomX”) (NYSE American: PHGE), pursuant to a Stock Purchase Agreement dated April 10, 2026 (the “SPA”). As consideration for the Zorronet shares, BiomX issued to Water IO: (i) 1,300,000 shares of BiomX common stock; and (ii) a non-convertible promissory note in the principal amount of $1,250,000, bearing interest at the short-term applicable federal rate, maturing three months from the date of issuance. Additionally, BiomX assumed certain obligations of Water IO with respect to the ~~Company~~founders ~~completed~~and former shareholders of Zorronet, including a performance-based earnout payable no later than March 31, 2027 equal to the ~~Star~~greater ~~Acquisition~~of 125% of Zorronet’s consolidated revenue or eight times Zorronet’s consolidated EBITDA for fiscal year 2026, and a commitment to retain certain key Zorronet personnel for three years on no less favorable terms.

~~The~~As a ~~total~~result ~~estimated~~of ~~purchase consideration~~the astransaction, ~~shown~~Water inIO ~~the~~holds ~~table~~1,300,000 ~~above~~shares isof ~~allocated~~BiomX tocommon ~~the~~stock, ~~tangible~~representing ~~and~~approximately ~~intangible~~16.57% ~~assets~~of BiomX’s issued and ~~liabilities~~outstanding ofcommon stock following the issuance. The Company, through Star ~~based~~26, onbeneficially ~~their~~owns ~~estimated~~approximately 67% of Water ~~fair~~IO’s ~~values~~equity, ~~with~~and ~~any~~accordingly ~~excess~~may ~~purchase~~be ~~consideration~~deemed ~~allocated~~ to ~~goodwill~~beneficially asown ~~follows~~such BiomX shares indirectly.

Purchase Price Allocation	Adjusted Balance
Cash and Restricted Cash	$	1,103,000
Marketable Securities		289,000
Accounts Receivable		478,000
Inventory		1,544,000
Intangible assets		334,435
Other assets		3,379,000
Goodwill		66,412,272
Operating lease right of use asset		1,046,000
Accounts payable and other current liabilities		(2,607,000	)
Accounts payable and other current liabilities - related party		(548,000	)
Lease liability, current and non-current		(1,068,000	)
Warrants – liability classified		(203,000	)
Deferred tax liability		(42,091	)
Loans		(4,500,000	)
Loans - related party		(2,440,000	)
Fair value of assets acquired	$	63,177,616

T3Proposed Business ~~DEFENSE INC. AND SUBSIDIARIES~~Combination

~~NOTES~~On March TO31, ~~THE~~2026, ~~UNAUDITED~~SC ~~CONDENSED~~II ~~COMBINED~~Acquisition ~~FINANCIAL~~Corp., a Cayman Islands exempted company (the “SPAC”), entered into a non-binding letter ~~STATEMENTS~~of intent (the “LOI”) with a payments technology company (the “Target”), which outlines the general terms and conditions of a potential business combination (the “Proposed Transaction”) pursuant to which the Company would acquire 100% of the outstanding equity and equity equivalents of the Target. The SPAC’s sponsor, SC Capital II Sponsor LLC, is controlled and majority owned by Nukkleus Defense Technologies Inc., a wholly-owned subsidiary of T3.

~~Note~~The LOI 2is a preliminary, non-binding ~~Basis~~expression of ~~Presentation~~mutual interest and does not constitute a binding commitment, obligation or agreement of the SPAC or the Target to consummate the Proposed Transaction or any other transaction. Except for certain limited binding provisions, including, among other things, exclusivity, confidentiality, the waiver of claims against the SPAC’s trust account, and governing law, neither the SPAC nor the Target has any legal obligation to the other party with respect to the Proposed Transaction by virtue of the LOI.

~~The unaudited pro forma condensed~~Cancellation ~~combined statement~~ of ~~operations for the nine months ended September 30~~$16, 2025 was derived from the unaudited consolidated financial statements included in the Company’s Quarterly Report on Form 10-Q (“the Q32025 Form 10-Q”) for the three and nine months ended September 30000,000 ~~2025, and the unaudited historical financial statements of Star for the nine months ended September 30, 2025, and has been prepared as if the Star Acquisition had occurred on January 1, 2024.~~Indebtedness

~~The~~On March ~~unaudited~~31, ~~pro~~2026, ~~forma~~T3 ~~condensed combined~~memorialized ~~statement~~the termination of ~~operations~~its ~~for~~obligation ~~the~~to ~~year~~pay ~~ended December 31~~$16,000,000 ~~2024~~to ~~was~~its ~~derived~~wholly-owned ~~from~~subsidiary ~~the~~Star ~~audited~~26 ~~consolidated~~Capital, Inc., ~~financial~~a ~~statements~~Nevada ~~included in~~corporation ~~the~~(“Star ~~Company’s~~26”). ~~Annual~~Pursuant ~~Report~~to onthe ~~Form~~Cancellation ~~10-K~~Agreement, (“the ~~2024~~“Cancellation ~~Form 10-K~~Agreement”), while all ~~for~~terms and provisions of the ~~three~~Amended ~~months~~and ~~ended~~Restated ~~December~~Securities 31Purchase Agreement, ~~2024~~dated ~~and for~~September 15, 2025 (the ~~year~~“Acquisition Agreement”) remain ~~ended~~in ~~September~~full ~~30,~~force ~~2024~~and effect, and the ~~audited~~Company’s ~~historical~~ownership ~~financial statements~~ of Star ~~for~~26, ~~the~~including ~~year~~all ~~ended~~assets, ~~December~~operations, and 31subsidiaries, ~~2024~~is unaffected, ~~and has~~the ~~been~~Company ~~prepared~~eliminated as$16,000,000 ifof ~~the~~indebtedness, ~~Star~~effective ~~Acquisition~~immediately, ~~had~~at ~~occurred~~no oncost, ~~January~~no 1dilution, and ~~2024~~with no offsetting obligation to the Company or its shareholders.

~~The unaudited pro forma condensed~~Pursuant ~~combined~~to ~~balance~~the ~~sheet~~terms as of ~~September~~the 30Cancellation Agreement, ~~2025 combines~~ the ~~consolidated~~entire ~~balance~~$16,000,000 ~~sheet~~obligation ~~included~~to inStar ~~the~~26, ~~Q32025~~including ~~Form~~principal, ~~10-Q~~accrued ~~with~~interest ~~the~~and ~~historical~~any ~~audited~~other ~~balance~~amounts ~~sheet~~owing ~~for~~with ~~Star~~respect asthereto, ofwere ~~September 30~~cancelled, ~~2025,~~terminated and ~~has~~rendered ~~been~~of ~~prepared~~no asfurther ifforce ~~the~~or ~~Star~~effect, ~~Acquisition~~effective ~~had occurred on September 30~~immediately, at ~~2025.~~no ~~The~~cost, ~~unaudited~~no ~~pro~~dilution, ~~forma~~and ~~combined~~with ~~financial~~no ~~information~~offsetting ~~herein has been prepared~~ obligation to ~~illustrate~~ the ~~effects~~Company ofor ~~the~~its ~~Star~~shareholders ~~Acquisition~~ and ~~Related~~while ~~Transaction~~maintaining infull ~~accordance~~ownership of ~~with~~Star ~~U.S.~~26 ~~GAAP~~ and ~~pursuant~~all ~~to Article 11~~ of ~~Regulation~~its ~~S-X~~assets.

~~The Star unaudited historical~~February ~~consolidated~~2026 ~~financial~~Private statements as of and for the nine months ended September 30, 2025 and the Star audited historical consolidated financial statements as of and for the year ended December 31, 2024 are included in this Proxy Statement. These unaudited pro forma condensed combined statements should be read in conjunction with such historical financial statements. The historical consolidated financial information has been adjusted to give pro forma effect to reflect the accounting for the Star Acquisition in accordance with U.S. GAAP.Placement

~~The~~On ~~Company~~February ~~has~~26, ~~accounted for~~2026, ~~the~~T3 ~~Star~~closed ~~Acquisition~~a ~~under~~private ~~the~~placement ~~acquisition~~pursuant ~~method~~to the terms of ~~accounting~~a inSecurities ~~accordance~~Purchase Agreement with an accredited investor (the ~~authoritative~~“Securities ~~guidance~~Purchase onAgreement”) ~~business~~for ~~combinations~~a private placement ~~under~~(the “Private Placement”) pursuant to which the ~~provisions~~investor of(the ~~ASC~~“Purchaser”) ~~805.~~agreed ~~The~~to ~~allocation~~purchase offrom the Company 400 units for an aggregate purchase price asof ~~reflected~~$20,000,000, inor ~~the~~a ~~unaudited~~per ~~pro~~unit ~~forma~~price ~~condensed~~of ~~combined~~$50,000. ~~financial information~~Each ~~was~~unit ~~based~~consists onof (i) one share (each a “Share” ~~preliminary~~and ~~valuation~~collectively, the “Shares”) of Series B Convertible Preferred Stock, par value $0.0001 per share (the “Series ~~assets~~B ~~acquired~~Preferred Stock”), and ~~liabilities~~(ii) ~~assumed,~~one and ~~the~~a ~~accounting~~half iscommon ~~subject~~stock purchase warrants to ~~revision~~initially purchase up to one and a ashalf ~~more~~shares ~~detailed~~of ~~analyses~~common ~~are~~stock, ~~completed~~par ~~and~~value ~~additional~~$0.0001 ~~information~~per ~~about~~share (the ~~fair~~“Common ~~value~~Stock”), of ~~assets~~the ~~acquired~~Company, subject to adjustment as described herein (the “Common Warrants” and ~~liabilities~~the ~~assumed~~shares ~~becomes~~of Common Stock issuable upon exercise or exchange of the Common Warrants, the ~~available~~“Warrant Shares”). The ~~final~~Private ~~purchase~~Placement ~~price~~is ~~allocation~~structured ~~may~~as ~~include~~a ~~changes~~two tostage investment. At the ~~amount~~initial ofclosing, ~~intangible~~which ~~assets~~occurred on February 26, ~~goodwill~~2026, ~~and~~the ~~deferred~~Company ~~taxes~~sold 200 units for gross proceeds of $10 million. The Purchaser agreed to purchase an additional 200 units for an additional investment of $10 million following (i) the effectiveness of the registration statement described below, as(ii) stockholder ~~well~~approval of the issuance of the transactions contemplated by the Securities Purchase Agreement as ~~other~~required ~~items.~~pursuant ~~Accordingly~~to Nasdaq rules, (iii) the ~~pro~~stock ~~forma~~price ~~adjustments~~is ~~are~~at ~~preliminary~~least $1.00 and ~~have~~(iv) ~~been~~subject ~~made~~to ~~solely~~the ~~for~~condition that the ~~purpose~~value of ~~providing~~the ~~unaudited~~trading in the Company’s stock on Nasdaq ~~pro~~for ~~forma~~the ~~condensed~~10 ~~combined~~consecutive ~~financial~~days ~~information.~~preceding ~~Differences~~the ~~between~~second ~~these~~closing ~~preliminary~~is ~~estimates~~at ~~and~~or above $900,000 (the ~~final~~“Second ~~purchase~~Closing ~~accounting~~Market Trading Value”), ~~may~~provided ~~occur~~that if the Second Closing Market Trading Value is less than $900,000, ~~and~~then ~~these~~there ~~differences~~will ~~could~~be a proportionate reduction in the number of units to be ~~material~~sold at the second closing.

~~Assets~~Pursuant to ~~acquired~~the ~~and~~Securities ~~liabilities assumed~~Purchase inAgreement, athe ~~business~~Company ~~combination~~is ~~that~~required ~~arise~~to ~~from~~seek ~~contingencies~~stockholder ~~must~~approval be(the ~~recognized~~“Stockholder atApproval”) ~~fair~~related to ~~value~~the ifissuance of the ~~fair~~units ~~value~~to ~~can~~ be ~~reasonably~~issued ~~estimated. If~~in the ~~fair~~Private ~~value~~Placement. ofThe anCompany ~~asset~~is orrequired ~~liability~~to ~~that~~file ~~arises~~a ~~from~~preliminary proxy statement for a ~~contingency~~special ~~cannot~~meeting beof ~~determined,~~the Company’s stockholders within 75 days of the ~~asset~~initial orclosing ~~liability~~of ~~would~~the bePrivate ~~recognized~~Placement. The Company’s indirectors ~~accordance~~and ~~with~~officers ~~ASC~~have ~~450,~~agreed ~~“Disclosure~~to ofexecute ~~Certain~~voting ~~Loss~~agreements ~~Contingencies”~~to ~~(“ASC~~vote ~~450”)~~in favor of the applicable proposals. If the ~~fair~~Company ~~value~~does is not ~~determinable~~ ~~and~~obtain ~~the~~Stockholder ~~ASC~~Approval ~~450~~at ~~criteria~~the ~~are~~first ~~not~~such ~~met~~meeting, nothe ~~asset~~Company oris ~~liability~~required ~~would~~to becall ~~recognized.~~a ~~Management~~meeting isevery ~~not~~4 ~~aware~~months ofthereafter ~~any~~to ~~material~~seek ~~contingencies~~Stockholder ~~related~~Approval tountil ~~Star~~the earlier of the date on which Stockholder Approval is obtained or the securities are no longer outstanding.

The unaudited pro forma condensed combined financial information is presented solely for informational purposes and is not necessarily indicative of the combined results of operations or financial position that might have been achieved for the periods presented, nor is it necessarily indicative of the future results of the combined company. The unaudited pro forma combined financial information does not reflect any cost savings from future operating synergies or integration activities, if any, or any revenue, tax, or other synergies, if any, that could result from the Star Acquisition.

T3The Company ~~DEFENSE~~also ~~INC.~~granted ~~AND~~the ~~SUBSIDIARIES~~Purchaser a right of participation in subsequent financings of the Company for a period of time following closing, subject to certain exempt issuances, and has agreed not to issue securities for a period of time following the closing of the Private Placement, subject to certain exempt issuances, including issuances pursuant to strategic transactions.

~~NOTES~~Under the TOterms ~~THE~~of ~~UNAUDITED~~the ~~CONDENSED~~Securities ~~COMBINED~~Purchase ~~FINANCIAL~~Agreement, the Company agreed not deliver any purchase notices under Company’s equity line ~~STATEMENTS~~of credit with the Purchaser until after the later of the date on which (i) the registration statement is declared effective and (ii) the Company obtains Stockholder Approval and even after such date, certain market conditions must be satisfied.

~~Note 3 - Unaudited Pro Forma Condensed Combined~~Series ~~Balance~~B ~~Sheet~~Preferred ~~Adjustments~~Stock

A.Pursuant ~~Represents~~to ~~$3.5~~the ~~million~~Certificate ~~cash~~of ~~paid~~Designations atof ~~closing~~Rights, Preferences and aLimitations ~~$4.5~~which ~~million~~was ~~advance~~filed ~~paid~~with ~~prior to closing for~~ the ~~acquisition~~Secretary of ~~Star~~State ~~B. As a result~~ of the ~~acquisition~~State of ~~Star,~~Delaware inprior ~~addition~~ to ~~the~~closing ~~working~~of ~~capital accounts,~~ the ~~Company~~Private ~~acquired~~Placement, ~~intangibles~~each share of ~~$0.2~~Series ~~million~~B ~~and~~Preferred ~~goodwill.~~Stock ~~Goodwill~~has isa ~~calculated~~stated ~~as the difference between the fair~~ value of ~~the~~$50,000 ~~consideration transferred and~~ (the ~~values~~“Stated ~~assigned~~Value”) ~~to the identifiable tangible~~ and ~~intangible~~will ~~assets~~initially ~~acquired~~be ~~and~~convertible ~~liabilities~~into ~~assumed~~23,474 shares ~~including non-controlling interest. This adjustment~~ of ~~$66.4~~Common ~~million~~Stock ~~represents~~ (the ~~adjustment~~“Conversion toShares”) ~~increase~~(or ~~goodwill~~pre-funded towarrants ~~its~~in ~~preliminary~~lieu ~~estimated~~thereof ~~fair value per~~ (the ~~purchase~~“Pre-Funded ~~price~~Warrants”)), calculated ~~allocation.~~by C.dividing ~~Represents~~ the ~~issuance~~Stated ofValue aby ~~$19~~the ~~million~~initial ~~note~~conversion ~~balance~~price asequal ~~consideration~~to ~~for the Star acquisition~~$2.13 D.per ~~Represents~~Share (the ~~issuance~~“Initial ofConversion ~~4,770,340~~Price”). The ~~shares~~Initial atConversion ~~$3.805~~Price ~~(the~~is ~~Company~~subject ~~used~~to ~~the~~adjustment ~~closing~~upon ~~price~~stock onsplits, ~~Monday~~distributions, ~~January 12~~reorganizations, ~~2026~~reclassifications, ~~the~~change ~~date~~of control ~~the Company completed the Star Acquisition)~~ and the ~~issuance of 12~~like,~~017,648~~ ~~warrants~~and atis aalso ~~fair~~subject ~~value of $1.50~~ to ~~the~~price-based ~~former~~anti-dilution ~~shareholders~~adjustments offor ~~Star.~~subsequent E.offerings ~~Represents~~made by the ~~elimination~~Company ~~of Star’s historical equity F. Represents~~ while the ~~aggregate~~Series ~~issuances~~B ofPreferred ~~2,079,502,~~Stock ~~375,000,~~remains ~~and~~outstanding ~~3,950,000~~(subject ~~shares of the Company’s common stock subsequent~~ to ~~September~~certain ~~30,~~exempt ~~2025~~issuances). inThe ~~connection~~Initial ~~with~~Conversion ~~cashless~~Price ~~exercises~~will ofalso ~~warrants,~~be ~~the~~adjusted upon ~~Company’s~~receipt ~~exercise~~ of ~~the~~Stockholder ~~second~~Approval ~~tranche~~(as ofhereinafter ~~the~~defined), ~~Darwin~~if ~~warrant~~obtained, ~~and issuances pursuant~~ to the ~~2025~~lower ~~Equity~~of ~~Plan,~~(i) ~~respectively~~$2.13 G.per ~~Represents 2~~share,~~000,000~~ ~~and~~(ii) ~~1,850,000 shares of common stock issued in connection with~~ the ~~Company’s~~price ~~acquisitions~~per ofshare upon ~~Tiltan~~effectiveness ~~and Nimbus, respectively. H. Represents 2,439,000 shares~~ of ~~common stock issued in connection with~~ the ~~conversion~~Initial ofRegistration ~~the~~Statement ~~Series~~required Ato ~~convertible~~be ~~preferred~~filed ~~stock,~~pursuant ~~and 73,170 shares of common stock issued~~ to ~~satisfy~~ the ~~penalty~~Registration ~~incurred~~Rights ~~from~~Agreement, ~~late~~(iii) ~~effectiveness of~~ the price ~~registration~~per ~~statement~~share ~~for~~upon the ~~securities~~Corporation ~~from~~obtaining ~~the~~Stockholder ~~September~~Approval ~~2025~~and ~~Private~~(iv) ~~Placement.~~the I.price ~~Represents~~per ~~304,878~~share ~~and~~upon ~~230,000~~applicability ~~shares~~ of ~~common~~Rule ~~stock~~144 ~~issued~~as init relates ~~connection~~to ~~with~~ the ~~Equity~~sale ~~Line~~ of ~~Credit (“ELOC”) Commitment Fee and stock purchases made under~~ the ~~ELOC,~~Conversion ~~respectively~~Shares.

~~Note~~The Series 4B -Preferred ~~Unaudited~~Stock ~~Pro~~is ~~Forma~~convertible ~~Condensed~~at ~~Combined~~the option of the holder at any time and will be automatically converted into Common Stock ~~Statement~~or Pre-Funded Warrants in lieu thereof on the effective date of ~~Operations~~the ~~Adjustments~~registration ~~for~~statement, whether or not the ~~nine~~Stockholder ~~months~~Approval ~~ended~~has been ~~September~~obtained. 30If at any time after the one-year anniversary of the closing of the Private Placement, ~~2025~~the Series B Preferred Stock is then outstanding and ~~for~~the Company has not received Stockholder Approval, the ~~year~~Series ~~ended~~B ~~December~~Preferred 31Stock is redeemable at the option of the holder at a price per Share equal to 105% of the Stated Value. The conversion of the Series B Preferred Stock is subject to a 9.9% beneficial ownership limitation blocker. The Series B Preferred Stock are not entitled to receive dividends, ~~2024~~other than on an as-converted basis if dividends are paid to holders of Common Stock.

	AA.	Reflects the removal of the historical Star 26 amortization of $0.06 million and the addition of recorded pro forma amortization expense of $0.07 million for the nine months ended September 30, 2025 and the removal of the historical Star 26 amortization of $0.07 million and the addition of recorded pro forma amortization expense of $0.1 million for the year ended December 31, 2024 on the portion of the purchase price allocated to definite-lived intangible assets.
	BB.	Represents $18.8 million in expense recognized from the issuance of 3,950,000 shares of common stock in connection with the 2025 Equity Plan.

The holders of Series B Preferred Stock are entitled to 10,000 votes per each share of Series B Preferred Stock. The holders of Series B Preferred Stock have voting rights with respect to certain corporate actions that affect the rights of the Series B Preferred Stockholders and also have certain consent rights in connection with certain proposed Fundamental Transactions (as defined in the Certificate of Designations). The Series B Preferred Stock is (i) senior to the Common Stock of the Company and any other equity securities that the Company may issue in the future, the terms of which specifically provide that such equity securities rank junior to the Series B Preferred Stock, (ii) equal with any class or series of capital stock established after the closing date of the Private Placement, the terms of which specifically provide that such equity securities rank on par with such Series B Preferred Stock, in each case with respect to payment of amounts upon liquidation, dissolution or winding up and (iii) junior to all of the Company’s existing and future indebtedness. The Company has agreed not to issue any parity stock or senior securities without the written consent of a majority in interest of the Series B Preferred Stock. Upon a change of control, liquidation or winding up of the Company the holders of the Series B Preferred Stock are entitled to a liquidation preference of $50,000 per Share.

Common Warrants

The Common Warrants are exercisable on a cash or cashless basis at the earlier of (i) 180 days following their issuance and (ii) the date the stockholder approval is obtained, and expire 5 years from the date of issuance. Each Common Warrant will be initially exercisable for one share of Common Stock at an initial exercise price of $2.13 per share, subject to adjustment for stock splits, distributions and the like (the “Initial Exercise Price”). The Initial Exercise Price is also subject to price-based anti-dilution adjustments for subsequent offerings made by the Company while the Common Warrants remain outstanding (subject to certain exempt issuances). At any time after the closing of the Private Placement, the holder of the Common Warrants may exchange the Common Warrants on a cashless basis for a number of shares of Common Stock determined by multiplying the total number of Warrant Shares with respect to which the Common Warrant is then being exercised by the Black Scholes Value (as defined in the Common Warrant) divided by the lower of the two closing bid prices of the Common Stock in the two days prior the time of such exercise, but in any event not less than $0.01 (as may be adjusted for stock dividends, subdivisions, or combinations and the like). The exercise of the Common Warrants is subject to a 9.99% beneficial ownership limitation blocker.

T3In the ~~DEFENSE~~event ~~INC~~of a Fundamental Transaction (as defined in the Common Warrants), the holders of the Common Warrants will be entitled to receive upon exercise of the Common Warrants the kind and amount of securities, cash or other property that the holders would have received had they exercised the Common Warrants immediately prior to such Fundamental Transaction. ~~AND~~Additionally, ~~SUBSIDIARIES~~as more fully described in the Common Warrants, the holders of the Common Warrants will be entitled to receive consideration in an amount equal to the Black Scholes value of the Common Warrant in connection with a Fundamental Transaction.

~~NOTES~~If the TOCompany ~~THE~~fails ~~UNAUDITED~~to ~~CONDENSED~~timely ~~COMBINED~~deliver ~~FINANCIAL~~the Warrant Shares issuable upon exercise of the Common Warrants, the Company will be subject to ~~STATEMENTS~~liquidated damages, payable in the Company’s discretion in cash or shares on the Registration Date (as defined therein) or buy-in. If the Company elects to pay in shares, the number of shares due will be based on the LD Share Formula (as defined below).

	CC.	Represents an aggregate of $2.5 million in losses from change in fair value of digital assets in connection with the digital assets acquired from the Company’s exercise of the first and second tranches of the Darwin warrant
	DD.	Represents $0.3 million in penalties incurred as a result of late effectiveness of the registration statement filed in connection with the September 2025 Private Placement

Registration Rights Agreement

~~Note~~In connection 5with the Private Placement, on February 24, 2026, the Company and the Purchaser entered into a Registration Rights Agreement (the “Registration Rights Agreement”). Pursuant to the terms of the Registration Rights Agreement, the Company is required to register the resale of the Conversion Shares (and any shares underlying the Pre-Funded ~~Earnings~~Warrants, ~~per~~if ~~share~~any) and the Warrant Shares. The Company is required to prepare and file an initial registration statement (the “Initial Registration Statement”) with the Securities and Exchange Commission within 45 days of the date of the Securities Purchase Agreement (the “Filing Deadline”) and to use commercially reasonable efforts to have the Initial Registration Statement declared effective within 75 days of the date of the Securities Purchase Agreement (the “Effectiveness Deadline”). In certain circumstances including, but not limited to, if the Company misses the Filing Deadline or the Effectiveness Deadline, then the Company will be required to pay to the Purchasers an amount in shares or cash, at the Company’s discretion, as partial liquidated damages and not as a penalty, equal to the product of 1.5% multiplied by the aggregate purchase price paid by such Purchaser. Liquidated damages, if any, will accrue and be paid on the earlier of the effective date of a resale registration statement registering the sale of the shares that may be issued in lieu of cash or the date on which such shares can be sold pursuant to Rule 144 (the “Registration Date”). If the Company elects to pay liquidated damages in shares of Common Stock, the number of shares of Common Stock issuable to the Purchaser will be determined by dividing the aggregate amount of accrued liquidated damages by the closing price of the Company’s Common Stock on the trading market of the Common Stock on the day immediately prior to the Registration Date (the “LD Share Formula”).

~~Represents~~In connection with the ~~earnings~~Private ~~per share~~Placement, ~~calculated using~~ the ~~historical~~Company ~~weighted~~entered ~~average~~into ~~shares~~a ~~outstanding~~Placement ~~and~~Agency ~~the~~Agreement, ~~issuance~~dated ofFebruary ~~additional~~24, ~~shares~~2026, inwith ~~connection~~Dawson ~~with~~James Securities Inc. (the ~~Business~~ ~~Combination~~“Placement Agent”), ~~assuming~~pursuant to which the ~~shares~~Placement ~~were~~Agent ~~outstanding~~acted ~~since~~as ~~January 1,~~the ~~2024~~sole placement agent for the Private Placement. AsIn consideration for the ~~Business~~foregoing, ~~Combination~~the isCompany ~~being~~has ~~reflected as~~agreed ifto itpay ~~had~~customary ~~occurred~~placement atfees to the ~~beginning~~Placement Agent, including a cash fee equal to 3.5% of the ~~period~~gross ~~presented,~~proceeds raised in the ~~calculation~~Private ofPlacement ~~weighted~~and ~~average~~issue ~~shares~~warrants ~~outstanding~~equal ~~for~~to ~~basic~~7.5% ~~and~~of ~~diluted~~the securities ~~earnings~~placed ~~per~~in ~~share~~the ~~assumes~~Offering. ~~that~~Pursuant to the ~~shares~~Placement ~~issued~~Agency inAgreement, ~~connection~~the ~~with~~Company ~~the~~has ~~Business~~also ~~Combination~~agreed ~~have~~to ~~been~~reimburse ~~outstanding~~certain ~~for~~expenses of the Placement ~~entire~~Agent ~~period presented~~incurred in connection with the Private Placement.

	For the Nine Months ended September 30, 2025		For the Year Ended December 31, 2024
Pro forma net income (loss)	$	65,271,961	$	(164,656,937	)
Weighted average shares outstanding of ordinary shares – basic		24,183,169		9,700,871
Weighted average shares outstanding of ordinary shares – diluted		25,885,482		9,700,871
Net income (loss) per share – basic	$	2.70	$	(16.95	)
Net income (loss) per share – diluted	$	2.52	$	(16.95	)
Excluded securities:(1)
Options to purchase common stock under Old Nukk equity incentive plan		4,823		4,823
Convertible notes payable that convert into common stock		-		464,217
Stock purchase warrants		16,296,673		16,046,231
		16,301,496		16,515,271

Director Resignation

~~(1)~~On February ~~The~~23, ~~potentially~~2026, ~~dilutive~~the ~~outstanding~~Company ~~securities~~received ~~were~~a ~~excluded~~letter of resignation from ~~the~~Ms. ~~computation~~Aviya Volodarsky pursuant to which Ms. Volodarsky resigned from her position as a member of ~~pro~~the ~~forma~~board ~~net~~of ~~loss~~directors ~~per~~of ~~share,~~the ~~basic~~Company and ~~diluted,~~from ~~because~~all ~~their~~the ~~effect~~committees ~~would~~on ~~have~~which ~~been~~she ~~anti-dilutive~~served for personal reasons. The resignation was effective immediately.

Employment Agreement

On February 17, 2026, the Board of Directors, based on the recommendations and approval of the Compensation Committee, approved the terms of the terms and provisions of a Consulting Agreement between the Company and Billio Ltd., a company in Israel, to provide the services of Menachem Shalom as the principal executive officer of the Company. The consulting agreement terminates and supersedes the (i) Consulting Agreement dated December 16, 2024 between the Company and Billio Ltd., pursuant to which the Company obtained consulting services from the Consultant through Menachem Shalom; (ii) Management Services Agreement dated June 28, 2024, as amended by Amendment No. 1 dated August 8, 2024, between Star 26 Capital, Inc. (“Star Capital”) and Zero One Capital LLC, a Nevada limited liability company (“Zero One”) in which Mr. Shalom is the chief executive officer and controlling member and shareholder of Zero One; and (iii) Offsetting Management Services Agreement dated August 12, 2024 between Zero One and B. Rimon Agencies Ltd., an Israeli company which is currently wholly-owned by Star Capital.

~~MANAGEMENT’S~~Given the ~~DISCUSSION~~performance ~~AND~~of ~~ANALYSIS~~the OFCompany within the last 15 months, the Compensation Committee and the Board of Directors determined that it was ~~FINANCIAL~~in ~~CONDITION~~the ~~AND~~best ~~RESULTS~~interest OFof ~~OPERATIONS~~the Company to provide Mr. Shalom with the amended consulting agreement and increased compensation. The Committee and the Board also authorized a cash bonus to Mr. Shalom in the amount of $250,000 for his past services to the Company. The Company, under the supervision and guidance of Mr. Shalom, has completed several acquisitions within the last 15 months, including without limitation, Star 26, Tiltan Software Engineering, Nimbus Drones and ITS.

~~You~~Pursuant to ~~should~~the ~~read~~terms of the ~~following discussion~~Consulting ~~and~~Agreement, ~~analysis~~which ofis ~~our~~effective ~~financial~~as ~~condition~~of ~~and~~January ~~results~~1, of2026, ~~operations~~Mr. ~~together~~Shalom ~~with~~will ~~our~~continue ~~financial~~to ~~statements~~act ~~and~~as the ~~related~~chief ~~notes~~executive ~~and~~officer ~~other~~of ~~financial~~the ~~information~~Company ~~included~~while ~~elsewhere~~maintaining other executive roles in ~~this~~non-completing ~~prospectus~~companies. ~~Some~~For ofhis ~~the~~services, ~~information~~Mr. ~~contained~~Shalom inwill ~~this~~receive a ~~discussion~~base salary of $60,000 per month and ~~analysis or~~target ~~set~~cash ~~forth~~bonuses ~~elsewhere~~equal into ~~this~~50% ~~prospectus~~of base salary, ~~including~~subject ~~information~~to ~~with~~achievement ~~respect~~of performance goals to be ~~our~~set ~~plans~~by ~~and~~the ~~strategy~~Compensation ~~for~~Committee ~~our~~He ~~business,~~could ~~includes~~also ~~forward~~be entitled to additional milestone-~~looking statements~~based ~~that~~bonuses ~~involve~~as ~~risks~~determined ~~and~~by ~~uncertainties~~the Board. ~~See~~Mr. Shalom ~~“Special~~will ~~Note~~receive ~~Regarding~~250,000 ~~Forward-Looking~~shares ~~Statements.”~~of ~~You~~common ~~should~~stock ~~review~~quarterly, subject to availability under approved incentive plans; if there is no ~~the~~plan ~~“Risk~~or ~~Factors”~~no ~~section~~availability, the quarterly amount of ~~this~~shares ~~prospectus~~shall ~~for~~accrue auntil ~~discussion~~there ofis ~~important~~availability ~~factors~~under ~~that~~an ~~could~~approved ~~cause~~incentive ~~our~~plan. ~~actual~~Such plan ~~results~~will also require shareholder approval pursuant to applicable Nasdaq rules. He will also be entitled to a relocation grant of $175,000 ~~differ~~if ~~materially~~Mr. ~~from~~Shalom relocates to the ~~results~~United ~~described~~States inwith orhis ~~implied~~family. byMr. ~~the~~Shalom ~~forward-looking~~will ~~statements~~also ~~contained~~be inentitled ~~the~~to ~~following~~all ~~discussion~~executive ~~and~~benefit plans including ~~analysis~~health and 401(k) plans and 30 business days per year vacation.

In the event Mr. Shalom is terminated for cause or is no longer employed by the Company ~~Overview~~for reason of death or disability, he shall only be entitled to his compensation at such time. If he is terminated by the Company without cause, he shall be entitled to 6 months of his base compensation, and if Mr. Shalom resigns, he shall be entitled to compensation for 12 months. If he is terminated for cause, Mr. Shalom shall not be entitled to any compensation. The Consulting Agreement contains customary non-competition, non-solicitation and confidentiality provisions.

~~Currently, the Company, through~~Name its US-based subsidiary, is engaged in the distribution of drones’ payloads in the defense and homeland security markets within the US. In addition, through its Israeli subsidiary, we are engaged in providing services to support civil and defense aviation needs, including MRO services, aircraft modernization, resale, and leasing, which includes the deployment of the de-icing technology for commercial aircrafts.Change

~~Previously~~Effective February we9, ~~were~~2026, athe ~~financial technology~~Company ~~company~~changed ~~that~~its ~~was~~name ~~focused~~by onthe ~~providing~~filing ~~software,~~of ~~technology~~a ~~solutions,~~certificate ~~customer~~of ~~sales~~correction ~~and~~to ~~marketing,~~the ~~and~~Amendment ~~risk~~to ~~management~~its ~~technology hardware~~Amended and ~~software~~Restated Certificate ~~solutions~~of ~~packages~~Incorporation ~~for~~with the ~~worldwide~~Secretary ~~retail~~of FXState ~~trading~~of ~~industry~~the ~~and~~State ~~payment~~of ~~services~~Delaware ~~from~~to ~~one~~change ~~fiat~~the ~~currency~~name of the Company to ~~another~~“T3 Defense orInc.”. The change in the name of the Company was effectuated pursuant to ~~digital~~Section ~~assets~~242(d)(1) of the Delaware General Corporation Law. As a result of the name change, the new ticker of the Company became “DFNS”.

~~On January 12, 2026, we closed~~Nimbus our acquisition of 100% of the issued and outstanding capital stock of Star 26 pursuant to the terms of the Purchase Agreement, by and among the Company, Star 26, the shareholders of Star 26, and Menachem Shalom, as representative of the shareholders of Star 26. As a result of the Acquisition, Star 26 became a wholly-owned subsidiary of the Company. The transaction was approved by the stockholders of the Company on December 16, 2025 and confirmed by Nasdaq on January 9, 2026. Pursuant to the terms of the Purchase Agreement, the aggregate consideration paid by the Company consisted of: (i) $16,000,000, which was paid to Star 26 by the issuance by the Company of the Investment Note; (ii) $500,000 in cash, representing $5,000,000 less $4,500,000 previously borrowed by Star 26 from the Company; (iii) 4,770,340 Common Shares; (iv) the Warrant to purchase 12,017,648 Warrant Shares at an exercise price of $1.50 per share, exercisable for a period of five years from the Closing Date; (v) the Six-Month Note in the principal amount of $3,000,000, which accrues interest at the rate of 8% per annum and matures on July 12, 2026; and (vi) the Three-Month Note in the principal amount of $3,000,000 (the “Three-Month Note”), which matures on April 12, 2026. The Common Shares, the Warrant, the Six-Month Note and the Three-Month Note were subsequently assigned by Star 26 to the Selling Stockholders, pro ratably based on their equity ownership in Star 26. In connection with the Acquisition, the Company cancelled certain promissory notes previously issued by Star 26 to the Company in the aggregate principal amount of $4,500,000. The cancellation of said indebtedness was applied as a credit against the cash consideration otherwise payable to Star 26 at the closing of the Acquisition. The cash portion of the purchase price payable at closing was funded from the Company’s available cash on hand.

~~Star~~On January ~~currently~~15, ~~holds~~2026, the Company consummated its acquisition (1the “Nimbus Acquisition”) of 100% of ~~Rimon~~Nimbus Drones Technologies and Marketing Ltd., an Israeli ~~corporation~~private ~~engaged~~company as(“Nimbus”) ~~distributor~~specializing ofin ~~military-grade~~unmanned ~~generators,~~aerial ~~masts~~systems and ~~lighting~~services, ~~systems~~pursuant to ~~and~~the terms of that ~~is,~~certain ~~among~~Stock ~~other clients~~Purchase Agreement, adated ~~supplier~~January of15, ~~generators~~2026 ~~for~~(the “~~Iron~~Nimbus ~~Dome~~Purchase Agreement”), ~~launchers~~by and among the Company, Nimbus and Elad Defense LLC (2“Elad”). ~~67%~~In connection with the closing of ~~Water.IO~~the ~~Ltd.~~Nimbus Acquisition, anthe ~~Israeli~~Company issued ~~corporation~~to ~~engaged~~Elad inas ~~smart hydration~~consideration ~~technology~~(i) 1,850,000 shares of Common Stock and (3ii) a $3,250,000 convertible ~~loan~~24-month ~~issued~~note by(the I“Nimbus Note”) bearing 6% interest, which is convertible at the option of the holder at a fixed price of $2.T00 per share.S The Nimbus Note also prohibits the Company from issuing the holder shares that would result in the holder beneficially owning more than 4.99% ~~Industrial~~of ~~Techno-logic~~the outstanding ~~Solutions~~shares ~~Ltd~~of Common Stock., anElad ~~Israeli~~and ~~corporation~~Nimbus ~~which~~each represented to the Company typical representations and warrants as common in ~~designs,~~transactions ~~develops~~of this nature, and ~~manufactures~~the ~~fully~~parties ~~integrated~~indemnified ~~electro-mechanical~~each ~~machines~~other for 24 months until January 15, ~~assembly~~2028. ~~lines~~The Nimbus Purchase Agreement is governed by the laws of Israel, and ~~custom~~any ~~motion~~dispute ~~systems~~is to be resolved first by mediation in Tel Aviv, Israel. As of February 17, 2026, Elad converted the Nimbus Note to an aggregate of 1,625,000 shares of Common Stock.

~~If, for a period of 12 months~~Change after the closing, the Common Stock is delisted from Nasdaq, Star 26 shall have the right, at its own discretion, to require the Company to exchange the Investment Note for all the shares of Star 26 then held by the Company, provided, however, Star 26 shall retain any cash payments made by the Company to Star 26 and the Company shall retain an equity interest in ~~Star~~Independent 26Registered ~~equivalent~~Public toAccounting ~~all cash payments.~~Firm

~~Components of Results of Operations~~Litigation

~~Operating expenses~~On ~~consist~~March 3, 2026, we obtained a copy of ~~professional~~a ~~fees~~summons and complaint filed in the Supreme Court of the State of New York dated February 24, ~~compensation~~2026 by ~~and~~Kingswood ~~related~~Capital ~~benefits~~Partners, LLC against Star 26 Capital, Inc., Nukkleus, Inc. and ~~other~~the ~~general~~Company. The complaint alleges that a success fee is due for an earned investment banking success fee arising from a transaction. The Company denies all the allegations and ~~administrative~~intends to ~~expenses~~vigorously defend such action, which it believes is without merit.

Professional fees consists of professional services, such as audit fees, legal service fees, advisory fees, and consulting fees.

Compensation and related benefits consists of personnel related expenses incurred in operating our business, including cash compensation and our benefit programs.

Other general and administrative consists of personnel-related expenses incurred to support our business, including executive, customer support, compliance, finance, human resources, legal, and other support operations, and include rent, filing fee, platform fee, travel and entertainment, miscellaneous taxes, and other miscellaneous items.

Impairment loss consists of impairment losses recognized on long-lived assets where there was a triggering event that indicated a long-lived assets carrying amount may not be recoverable. The impairment loss represents the amount the carrying value exceeds the fair value. Because these components fluctuate with market conditions, impairment loss can vary widely between periods.

Other (expense) income, net consists of interest expense, gain (loss) on extinguishment of liabilities, day one loss on issuance of liability-classified stock purchase warrants and embedded derivatives within convertible notes, change in fair value of liability-classified stock purchase warrants and derivative assets and liabilities, and gain on deconsolidation.

Because these components fluctuate with market conditions, other (expense) income, net can vary widely between periods.

Results of Operations

	Three Months Ending September 30,						Changes in
	2025			2024			Amount			Percentage
Operating expenses:
Professional fees	$	4,359,640		$	552,845		$	3,806,795			688.6	%
Compensation and benefits		230,988			53,333			177,655			333.1	%
Other general and administrative		180,947			191,291			(10,344	)		(5.4	)%
Impairment loss		-			391,217			(391,217	)		(100.0	)%
Total operating expenses		4,771,575			1,188,686			3,582,889			301.4	%
Other (expense) income, net
Interest expense		(36,346	)		(303,626	)		267,280			(88.0	)%
Interest expense – related parties		(13,545	)		(15,521	)		1,976			(12.7	)%
Loss on settlement of vendor obligations		-			(112,436	)		112,436			(100.0	)%
Gain on settlement of vendor obligations		-			211,200			(211,200	)		(100.0	)%
Gain on settlement of due to affiliates		-			192,069			(192,069	)		(100.0	)%
Loss on debt extinguishment		(7,484,152	)		-			(7,484,152	)		100.0	%
Change in fair value – stock purchase warrant liabilities		13,963,884			—			13,963,884			100.0	%
Change in fair value – digital assets		(967,818	)		-			(967,818	)		100.0	%
Gain on deconsolidation		2,491,485			-			2,491,485			100.0	%
Day one loss on private placement		(19,605,956	)		-			(19,605,956	)		100.0	%
Other income (expense)		118,795			14			118,781			848,436	%
Total other (expense) income, net		(11,533,653	)		(28,300	)		(11,505,353	)		40,655.0	%
Net income (loss) from continuing operations		(16,305,228	)	$	(1,216,986	)		(15,088,242	)		1,239.8	%
Net income (loss) from discontinued operations		(60,264	)		5,672,219			(5,732,483	)		(101.1	)%
Net income (loss)	$	(16,365,492	)	$	4,455,233		$	(20,820,725	)		(467.3	)%

Comparison of the Three Months Ended March 31, 2026 to the Three Months Ended March 31, 2025

38Revenues

	Nine Months Ending September 30,						Changes in
	2025			2024			Amount			Percentage
Operating expenses:
Professional fees	$	6,051,719		$	3,266,539		$	2,785,180			85.3	%
Compensation and benefits		365,988			108,333			257,655			237.8	%
Other general and administrative		909,275			537,146			372,129			69.3	%
Impairment loss		-			391,217			(391,217	)		(100.0	)%
Total operating expenses		7,326,982			4,303,235			3,023,747			70.3	%
Other (expense) income, net
Interest expense		(407,971	)		(343,333	)		(64,638	)		18.8	%
Interest expense – related parties		(64,306	)		(38,249	)		(26,057	)		68.1	%
Loss on settlement of vendor obligations		-			(288,835	)		288,835			(100.0	)%
Gain on settlement of vendor obligations		-			211,200			(211,200	)		(100.0	)%
Gain on settlement of due to affiliates		-			192,069			(192,069	)		(100.0	)%
Loss on debt extinguishment		(7,484,152	)		-			(7,484,152	)		100.0	%
Penalty – late registration		(800,000	)		-			(800,000	)		100.0	%
Change in fair value – convertible note embedded derivative		587,790			-			587,790			100.0	%
Change in fair value – stock purchase warrant liabilities		123,369,695			-			123,369,695			100.0	%
Change in fair value – digital assets		(967,818	)		-			(967,818	)		100.0	%
Gain on deconsolidation		2,491,485			-			2,491,485			100.0	%
Day one loss on private placement		(19,605,956	)		-			(19,605,956	)		100.0	%
Other income (expense)		280,422			-			280,422			100.0	%
Total other (expense) income, net		97,399,189			(267,148	)		97,666,337			(36,558.9	)%
Net income (loss) from continuing operations		90,072,207		$	(4,570,383	)		94,642,590			(2,070.8	)%
Net income (loss) from discontinued operations		(460,971	)		4,979,958			(5,440,929	)		(109.3	)%
Net income (loss)	$	89,611,236		$	409,575		$	89,201,661			21,779.1	%

For the three months ended March 31, 2026 we had revenues of $3,653,000, as compared to revenues of $0 for the three months ended March 31, 2025.

Comparison For the Three and Nine Months Ended September 30, 2025 Versus the Three and Nine Months Ended September 30, 2024

Revenue

We had no revenue from continuing operations during the three and nine months ended September 30, 2025 and 2024, due to the discontinuation of subsidiary DRFQ’s operations and the subsequent sale and deconsolidation of DRFQ in July 2025. We expect to report revenue upon the closing of the Star and Tiltan acquisitions, which we expect to be complete by and near the end of the fourth quarter of this year. At this time, the Company does not expect to generate revenue from other sources prior to the closing of these acquisitions.

Operating Expenses

~~Professional~~For the three months ended March 31, 2026 we had operating expenses of $4,182,000, as compared to operating expenses of $1,507,107 for the three months ended March 31, 2025. Operating expenses consisted of research and development expenses ($274,000), selling and marketing expenses ($157,000), and other general and administrative expenses ($3,528,000), as well as general and administrative expenses of consolidated variable entities of $223,000. The $3,528,000 of general and administrative expenses was comprised of professional services ($995,000), salaries and related compensation ($1,263,000) and other general and administrative expenses ($1,270,000), For the three months ended March 31, 2025, professional fees were $1,187,000, compensation and benefits was $33,000 and other general and administrative expenses was $287,000.

~~For the three months ended~~Other ~~September~~Income 30, 2025, professional fees increased by approximately $3,807,000, or 688.6%, as compared to the three months ended September 30, 2024. For the nine months ended September 30, 2025, professional fees increased by approximately $2,785,000, or 85.3%. This increase was primarily attributable to increases in consulting fees of approximately $3,758,000, and audit fees of approximately $196,000, offset by decreases in advisory fees of approximately $1,055,000 and legal fees of approximately $114,000. This net increase in professional fees is mainly attributable to the consulting fees expense recognized from the fair value of the shares of common stock and the August 2025 Warrant both issued to Mandragola in connection with the new joint venture agreement entered into in August 2025. We expect that our professional fees will decrease in the near future as this report is reflecting inflated costs due to the aforementioned issuance of shares and warrants. Also, subsequent to the closing of the Star acquisition, we expect professional fees to decrease as we anticipate the frequency of one-time costs of professional fees to decrease.(Expenses)

39For the three months ended March 31, 2026, other income (expenses) decreased from $104,648,000 for the three months ended March 31, 2025, as compared to an expense of $22,398,000 the three months ended March 31, 2026. The decrease was mainly attributable to the change in fair value of stock purchase warrant liabilities from $104,278,000 as of March 31, 2025 to a loss of $26,635,000 as of March 31, 2026.

~~Compensation~~Net Income ~~and related benefits~~(Loss)

For the three months ended ~~September~~ 30March 31, ~~2025~~2026, ~~our~~we ~~compensation~~had ~~and~~a ~~related~~net ~~benefits~~loss ~~increased~~of ~~by approximately~~ $~~178~~26,351,000, ~~or 333.1%,~~ as compared to ~~the~~net ~~three~~income ~~months ended~~of ~~September 30, 2024. For the nine months ended September 30, 2025, our compensation and related benefits increased by approximately~~ $~~258~~102,~~000~~958,000 orfor ~~237.8%, as compared to~~ the ~~nine~~three months ended ~~September~~March 3031, ~~2024. We expect that our compensation and related benefits will increase in the near future if the pending acquisition of Star completes during fiscal year~~ 2025~~, as the Company expects to employ several individuals immediately following the closing of the acquisition~~. ~~Our compensation and related benefits have been significantly lower than our professional fees due to the engagement of several professionals working for the Company on a consulting basis.~~

Other general and administrative expenses

For the three months ended September 30, 2025, total other general and administrative expenses decreased by approximately $10,000, or 5.4%, as compared to the three months ended September 30, 2024. For the nine months ended September 30, 2025, total other general and administrative expenses increased by approximately $372,000, or 69.3%, as compared to the nine months ended September 30, 2024. The increase was mainly attributable to additional costs associated with operating as a public company, including an increase in D&O insurance of approximately $138,000, marketing fees of approximately $113,000, rent expenses of approximately $101,000 attributable to new offices established in Israel and New York, entertainment and travel of approximately $121,000 attributable to the travel by our CEO and other business expenses of approximately $95,000, offset by a decrease in filing fees of approximately $198,000. We expect that other general and administrative expenses will continue to increase in the near future if the pending acquisition of Star completes during fiscal year 2025, as the Company expects to incur higher costs such as insurance, rent, advertising, and travel expenses.

Other Income (Expense)

For the three months ended September 30, 2025, other income (expense), net, decreased approximately $11,505,000, or 40,634.8%, as compared to the three months ended September 30, 2024. For the nine months ended September 30, 2025, other income (expense), net, increased approximately $97,666,000, or 36,558.9%, as compared to the nine months ended September 30, 2024. The increase was attributable to, an increase in gain from change in fair value – stock purchase warrant liabilities of approximately $123,370,000 (see Note 11), a gain on deconsolidation of approximately $2,491,000 (see Note 4), a gain from change in fair value – convertible note embedded derivative of approximately $588,000, realized and unrealized gains of approximately $280,000, and a decrease in loss on debt settlement of approximately $289,000, offset by a decrease in gains on settlement of vendor obligations and due to affiliates of approximately $403,000, and increases in day one loss on private placement of approximately $19,606,000 (see Note 13), loss on debt extinguishment of approximately $7,484,000, a loss from change in fair value – digital assets of approximately $968,000, penalties – late registration, payable to the investor in connection with the December 2024 Private Placement, of $800,000, interest expense due to amortization of debt discounts of approximately $65,000, and interest expense on debt of approximately $26,000. The significant changes in fair value recognized on the Company’s stock purchase warrant liabilities are directly related to several warrants granted during fiscal year 2024. For the duration of the life of these warrants, the Company expects to continue to recognize significant gains or losses heavily driven by any changes in the Company’s stock price at each quarterly and annual report date.

Discontinued Operations

Net loss from discontinued operations was estimated to be $60,264 for the three months ended September 30, 2025 compared to net income of $5,672,219 for the three months ended September 30, 2024. Net loss from discontinued operations was estimated to be $460,971 for the nine months ended September 30, 2025 compared to net income of $4,979,958 for the nine months ended September 30, 2024. These decreases were due to a decrease in net loss from the operations of the Company’s wholly owned subsidiary DRFQ, which was the sole driver of the Company’s former financial services segment. The Company deconsolidated DRFQ as of July 29, 2025, and reported a net gain on deconsolidation of $2,491,485 during the three months ended September 30, 2025 (see Note 4).

Comparison For the Three Months Ended December 31, 2024 Versus the Three Months Ended December 31, 2023

Operating Expenses

Professional fees

For the three months ended December 31, 2024, professional fees increased by approximately $386,000, or 14.2%, as compared to the three months ended December 31, 2023. This increase was primarily attributable to an increase of approximately $386,000 in consulting and advisory fees and $33,000 in legal fees, offset by a decrease of approximately $33,000 in audit fees. This increase in professional fees was primarily due to a heavy focus on the Company’s shift to the defense sector, as well as approximately $1,364,000 of professional fees associated with share issuances as consideration for services provided from consultants. We expect that our professional fees will decrease in the near future as we incurred a significant amount of one time costs included in professional fees during the three months ended December 31, 2024.

Compensation and related benefits

For the three months ended December 31, 2024, compensation and related benefits increased by approximately $1,146,000, or 4,583.2%, as compared to the three months ended December 31, 2023. This increase was attributable to incentive and settlement share issuances to current and former directors of the Company. We expect that our compensation and related benefits will decrease in the near future considering there were one time costs associated with settlement and exit agreements.

Other general and administrative expenses

For the three months ended December 31, 2024, total other general and administrative expenses increased by approximately $191,000, or 341.9%, as compared to the three months ended December 31, 2023. This increase was primarily attributable to an increase of approximately $121,000 in insurance expense, $47,000 in filing and transfer agent fees, $18,000 in travel expenses, and $5,000 in other general expenses. We expect that our other general and administrative expenses will continue to increase in the near future as we continue to increase our focus on business expansion in the defense sector.

Other (Expense) Income

Other (expense) income includes change in fair value of liability-classified stock purchase warrants and derivative liabilities, day one loss on issuance of stock purchase warrants in connection with conversion of convertible note payable, Private Placement, loss on reclassification of stock purchase warrant from equity-classified to liability-classified, interest expense, loss on settlement of vendor obligations, and gain on sale of investment.

For the three months ended December 31, 2024, other expense, net, increased by approximately amounted to $156,100,000, or 2,662,913.0%, as compared to the three months ended December 31, 2023. , mainly attributable to losses recognized by an increase in fair value of liability-classified stock purchase warrants and derivative liabilities of approximately $141,210,000, day one loss on issuance of stock purchase warrants in connection with conversion of convertible note payable and Private Placement of approximately $14,197,000, loss on reclassification of stock purchase warrant from equity-classified to liability-classified of approximately $46,000, interest expense of approximately $439,000, and a loss on settlement of vendor obligations of approximately $278,000, offset by gain on sale of investment of approximately $64,000.

Discontinued Operations

Net loss from discontinued operations was $157,975 for the three months ended December 31, 2024. This loss is wholly attributable to the operations of the Company’s wholly owned subsidiary Digital RFQ, which is considered to be held-for-sale as of November 2024.

The following table summarizes the historical consolidated statements of operations data:

	September 30,			September 30,			Changes in
	2024			2023			Amount			Percentage
Operating expenses:
Professional fees	$	5,986,910		$	1,566,409		$	4,420,501			282.2	%
Compensation and benefits		133,333			120,000			13,333			11.1	%
Amortization of intangible assets		—			265,162			(265,162	)		(100.0	)%
Bad debt expense – related parties		—			529,488			(529,488	)		(100.0	)%
Other general and administrative		593,129			264,370			328,759			124.4	%
Impairment loss		391,217			11,914,322			(11,523,105	)		(96.7	)%
Total operating expenses		7,104,589			14,659,751			(7,555,162	)		(51.5	)%
Other (expense) income, net
Interest expense		(343,333	)		—			(343,333	)		100.0	%
Interest expense – related parties		(44,111	)		(563	)		(43,548	)		100.0	%
Loss on extinguishment of vendor obligations		(288,835	)		—			(288,835	)		100.0	%
Gain on extinguishment of vendor obligations		211,200			—			211,200			100.0	%
Gain on extinguishment of due to affiliates		192,069			—			192,069			100.0	%
Total other (expense) income, net		(273,010	)		(563	)		5,624,697			16,166.2	%
Net loss from continuing operations		(7,377,599	)	$	(14,660,314	)		7,282,715			(49.7	)%
Net loss from discontinued operations		(1,140,921	)		(2,768,114	)		1,627,193			(58.8	)%
Net loss	$	(8,518,520	)	$	(17,428,428	)	$	8,909,908			(51.1	)%

Comparison For the Year Ended September 30, 2024 Versus the Year Ended September 30, 2023

Operating Expenses

Professional fees

For the year ended September 30, 2024, professional fees increased by approximately $4,421,000, or 282.2%, as compared to the year ended September 30, 2023. The significant increase was primarily attributable to an increase in advisory service fees of $3,648,100, consulting fees of approximately $659,000, and legal fees of approximately $295,000 attributed to additional costs associated with the December 2023 business combination, offset by a decrease audit fees of approximately $173,000 attributed to one time costs attributed to transitioning from a private company to a public company. We expect that our professional fees will increase in the near future as consultancy agreements were entered into during the fourth quarter with outsourced executives and other personnel of the Company that we anticipate to be in place for the entire fiscal year 2025.

Compensation and related benefits

For the year ended September 30, 2024, our compensation and related benefits increased by approximately $13,000, or 11.1%, as compared to the year ended September 30, 2023. We expect that our compensation and related benefits will decrease significantly considering the pending disposal of our financial services segment. However, we expect an overall increase in compensation expenses in the near future if the pending acquisition of Star completes during fiscal year 2025.

Amortization of intangible assets

For the year ended September 30, 2024, our amortization of intangible assets decreased by $265,000, or 100.0%, as compared to the year ended September 30, 2023. The decrease was mainly attributable to the impairment loss recorded on our acquired intangible assets during the year ended September 30, 2023 that reduced the carrying value of the acquired intangible assets to zero. We expect that our amortization of intangible assets will increase in the near future if the pending acquisition of Star completes during fiscal year 2025.

Bad debt expense – related parties

For the year ended September 30, 2024, our bad debt expense – related parties decreased by $529,000, or 100.0%, as compared to the year ended September 30, 2023. The decrease was attributable to zero bad debt expense being recognized in the year ended September 30, 2024, after write-off of two receivables from related parties during the prior comparative period..

Other general and administrative expenses

For the year ended September 30, 2024, total other general and administrative expenses increased by approximately $329,000, or 124.4%, as compared to the year ended September 30, 2023. The increase was mainly attributable to additional costs associated with operating as a public company, including an increase in D&O insurance of approximately $202,000 and filing fees of approximately $265,000, offset by a decrease in office expenses of approximately $57,000, entertainment and travel of approximately $41,000, and other business expenses of approximately $41,000. We expect that other general and administrative expenses will increase in the near future if the pending acquisition of Star completes during fiscal year 2025.

Impairment loss

At each reporting period end, we assessed our long-lived assets for any impairment and concluded that there were indicators of impairment as of September 30, 2024 and 2023 and determined that the estimated undiscounted cash flows related to certain long-lived assets were less than their carrying amounts for both periods. For the years ended September 30, 2024 and 2023, we considered the investee’s series of operating losses and global economic environment, and recognized an impairment loss of $391,217 and $6,210,783 for the year ended September 30, 2024 and 2023, respectively. For the year ended September 30, 2023, we were not able to realize the financial projections provided by an entity acquired at the time of the intangible assets purchase and determined to recognize an impairment loss of $5,703,539, reducing the carrying value of the acquired intangible assets to zero. These impairment losses for the years ended September 30, 2024 and 2023 totaled $391,217 and $11,914,322, respectively, a decrease of $11,523,105, or 96.7%.

Other Expense

For the year ended September 30, 2024, other expense, net, increased approximately $272,000, or 48,392.0%, as compared to the year ended September 30, 2023. The increase was attributable to, an increase in gain on settlement of liabilities of approximately $403,000, offset by a net loss on settlement of vendor obligations of approximately $289,000, an increase in interest expense on debt-related parties of approximately $44,000, an increase in interest expense due to amortization of debt discounts on convertible and non-convertible notes of approximately $316,000, and an increase in interest expense on convertible and non-convertible notes of approximately $27,000.

Discontinued Operations

Net loss from discontinued operations was $1,140,921 for the year ended September 30, 2024 compared to $2,768,114 for the comparative prior period. The decrease was primarily due to a decrease of $333,038 and $1,960,230 in net income and net loss, respectively, from the Company’s general support services operations and the operations of the Company’s wholly owed subsidiary DRFQ. Specifically, we ceased operations of our general support services operations on January 1, 2024 and we did not generate revenue or incur any expenses subsequent to that date and DRFQ’s primary USD Banking rails were closed when Signature and Silvergate closed in March 2023.

Liquidity and Capital Resources

~~We generated a pre-tax net~~As ~~income from continuing operations~~ of ~~$90,072,207~~March ~~for the nine months ended September 30~~31, ~~2025 and incurred a pre-tax net loss from continuing operations of $4~~2026,~~570,383~~ ~~for~~we ~~the~~had ~~nine months ended September 30, 2024, and have an accumulated deficit of~~ $~~111~~22,~~464~~811,~~507~~000 as of ~~September 30,~~current ~~2025 and $201~~assets,~~075,743~~ ~~at December 31, 2024. As of September 30, 2025, we had a working capital deficit of $30,512,429,~~ including $7,~~611~~362,~~465~~ 000 of cash and cash equivalents. ~~The~~Based ~~pre-tax~~on net income from continuing operations of approximately $90,000,000 for the nine months ended September 30, 2025 is primarily due to the applicable accounting treatment used to recognize gains from changes in fair value of liability-classified warrants which does not impact our cash position. During the nine months ended September 30, 2025 the most significant use of the Companymanagement’s ~~cash~~current ~~was~~expectations, ~~for~~we ~~the~~anticipate ~~purpose~~that ofwe ~~advance~~will ~~cash~~need ~~payments~~approximately ~~to Star of~~ $36,~~500~~000,000 ~~pursuant~~for to the ~~amended~~next ~~terms~~12 ofmonths ~~the Star transaction. The Company intends to make an additional final advance payment~~ of ~~$500,000 subsequent to September 30, 2025~~operations.

~~We have not been able to generate~~At ~~sufficient~~March ~~cash~~31, ~~from operating activities to fund our ongoing operations. However~~2026, wethe ~~expect~~Company tohad ~~generate~~negative ~~revenue~~working ~~beginning~~capital ~~immediately after~~of ~~the~~approximately ~~closing~~$69 million (of ~~the~~which ~~Star~~$56 million ~~acquisition,~~consists ~~which~~of westock purchase ~~expect~~warrant toliabilities bethat ~~completed~~do ~~near~~not ~~the~~require ~~end~~cash ofsettlement) ~~the~~and ~~fourth~~stockholders’ ~~quarter~~equity of ~~2025~~$42.5 million ~~Since~~as ~~our~~of ~~inception~~March 31, we2026; ~~have~~For ~~raised~~the ~~capital~~three ~~through~~month ~~private~~ended ~~sales~~March ~~of common stock and debt securities. Most recently~~31, ~~we raised $10~~2026,~~000,000~~ inthe ~~gross~~Company ~~proceeds from~~reported a ~~private~~net ~~placement~~operating ~~entered~~loss ~~into~~of ~~on September 4, 2025~~$3.8 million ~~Our~~and ~~future~~net ~~success~~cash isused ~~dependent~~in ~~upon our ability to achieve profitable~~ operations ~~and~~of ~~generate cash from operating activities~~$4.9 million. ~~There~~Absent isany noother ~~guarantee~~action, ~~that~~the weCompany will berequire ~~able~~additional liquidity to ~~generate~~continue ~~enough~~its ~~revenue~~operations ~~and/or~~for ~~raise~~the ~~capital~~next to12 ~~support our operations~~months.

ToAfter evaluating ~~the~~these ~~extent~~conditions, management concluded that ~~current and~~its ~~anticipated~~plans, ~~future~~when ~~sources~~considered ofin ~~liquidity~~aggregate, ~~are~~alleviate ~~insufficient~~substantial todoubt ~~fund~~about ~~our~~the Company’s ~~future~~ability ~~business~~to ~~activities~~continue ~~and~~as ~~cash~~a ~~and~~going ~~other~~concern. ~~requirements,~~Those ~~we may~~plans beinclude: ~~required~~(i) tothe ~~seek~~Company’s ~~additional~~existing ~~equity~~unrestricted orcash ~~debt~~balance of ~~financing~~approximately $7.4 million, ~~The~~sufficient ~~sale~~to offund ~~additional~~projected ~~equity~~operating ~~would~~expenses ~~result~~through inthe ~~additional~~look-forward ~~dilution~~period; to(ii) ~~our stockholders.~~an ~~The~~active ~~incurrence~~Equity Line of ~~additional~~Credit ~~debt~~(“ELOC”) ~~financing~~with ~~would~~Esousa ~~result~~Holdings, inLLC ~~debt~~— ~~service~~legally ~~obligations~~binding, SEC-registered, and ~~the~~shareholder-approved ~~instruments~~— providing ~~governing~~drawdown ~~such debt~~capacity, ~~could~~which ~~provide~~exceeds ~~for~~the Company’s projected annual operating ~~and~~cash ~~financing~~needs; ~~covenants~~(iii) ~~that~~the ~~would~~Company’s ~~restrict~~majority-owned subsidiaries, ~~our~~including ~~operations~~Rimon Ltd. ~~Even~~and ifNimbus ~~debt~~Drones, ~~financing~~which isare ~~available,~~cash-positive and require no capital support from the Company; (iv) management’s ~~cost~~ongoing ofefforts ~~additional~~to ~~financing~~assist ~~may~~subsidiaries bein ~~significantly~~securing ~~higher~~or ~~than~~expanding ~~our~~bank ~~current~~credit ~~debt~~facilities; and (v) the option to satisfy certain obligations through issuance of equity in lieu of cash.

~~The~~In addition, ~~risks~~management ~~and~~believes ~~uncertainties surrounding~~that the ~~Company’s~~completion ~~ability~~of tothe ~~continue~~sale toby ~~raise~~Water ~~capital~~IO ~~and~~Ltd., ~~its~~a ~~limited~~majority-owned ~~capital~~indirect ~~resources~~subsidiary ~~raise~~of ~~substantial~~the ~~doubt~~Company, of asZorro toNet ~~the Company’s~~Ltd. ~~ability~~ to ~~continue~~BiomX asInc., apursuant ~~going~~to ~~concern~~which ~~for~~Water ~~twelve~~IO ~~months~~received ~~from~~1,300,000 ~~the~~shares ~~issuance~~ of ~~these~~BiomX ~~consolidated~~common ~~financial~~stock ~~statements. The~~and ~~accompanying~~a ~~consolidated~~$1.25 ~~financial~~million ~~statements~~promissory note ~~have~~due ~~been~~within ~~prepared~~three inmonths, ~~accordance~~may ~~with~~provide ~~accounting~~additional ~~principles~~liquidity ~~generally~~and ~~accepted~~financial inflexibility to the ~~United~~ ~~States~~Company ofand ~~America,~~its ~~which~~subsidiaries. ~~contemplate~~The ~~our~~sale occurred ~~continuation~~on asApril a10, ~~going concern~~2026.

Management has determined that its plans are probable of being effectively implemented and probable of mitigating the conditions described above, enabling continuation of the Company’s operations for the foreseeable future. In the event management is incorrect in its determination and current and anticipated future sources of liquidity are insufficient to fund our future business activities, we may be required to seek additional equity or debt financing. The sale of additional equity would result in additional dilution to our stockholders.

Cash Flows

~~The following summarizes the~~Investing ~~key components of our cash flows for the nine months ended September 30, 2025 and 2024:~~Activities

	Nine Months Ended September 30,
	2025			2024
Net cash used in operating activities	$	(5,199,446	)	$	(3,212,291	)
Net cash used in investing activities		(3,518,690	)		-
Net cash provided by (used in) financing activities		8,347,000			2,386,947
Effect of exchange rate on cash		124,960			(2,617	)
Net change in cash	$	(246,176	)	$	(827,961	)

Net cash used in investing activities for the three months ended March 31, 2026 was $3,823,000, as compared to $810,000 for the three months ended March 31, 2025.

~~Operating activities~~Financing Activities

Net cash ~~flow~~provided ~~used~~by infinancing ~~operating~~ activities for the ~~nine~~three months ended ~~September~~March 3031, ~~2025~~2026 was ~~approximately~~ $512,~~199~~476,000, ~~which~~as ~~primarily~~compared ~~reflected~~to ~~our~~having ~~consolidated~~no net ~~income of approximately $89,611,000, adjusted for changes in working capital accounts and certain non-~~cash ~~income (expenses) of approximately~~from ~~$97,888,000~~financing ~~(including~~activities ~~the change~~ in ~~fair~~the ~~value~~three ofmonths ~~our~~ended ~~liability-classified~~March ~~stock purchase warrants and derivative liabilities of approximately $123~~31,~~957,000,~~ and gain on deconsolidation of approximately $2,491,000, offset by day one loss on private placement of approximately $19,606,000, loss on debt extinguishment of approximately $7,484,000, change in fair value of digital assets of approximately $968,000, amortization of debt discount of approximately $322,000, stock-based compensation of approximately $178,000, and depreciation expense of approximately $2,800)2025.

Net cash flow used in operating activities for the nine months ended September 30, 2024 was $3,212,000, which primarily reflected our consolidated net income of approximately $407,000, adjusted for changes in working capital accounts and certain non-cash expense of approximately $748,000 (including loss on settlement of vendor obligations of approximately $289,000, stock-based compensation of approximately $155,000, and amortization of debt discount of approximately $316,000, offset by a gain on settlement of due to affiliates of approximately $192,000, and a gain on settlement of vendor obligations of approximately $211,000).

Investing activities

Net cash flow used in investing activities was approximately $3,519,000 for the nine months ended September 30, 2025, which consisted of additional advance payments to Star of $3,500,000 in connection with the planned acquisition of Star, and a purchase of computer equipment of approximately $19,000.

There were no cash flows provided by investing activities for the nine months ended September 30, 2024.

Financing activities

Net cash flow provided by in financing activities was approximately $8,347,000 for the nine months ended September 30, 2025, which consisted of net proceeds from issuance of private placement of approximately $9,225,000, offset by a repayment of note payable of $78,000 and payments of penalty – late registration of $800,000.

Net cash flow provided by financing activities was approximately $2,387,000 for the nine months ended September 30, 2024, which consisted of proceeds from loan payable – related parties of approximately $731,000, proceeds from issuance of convertible debt, net of issuance costs of approximately $996,000, proceeds from issuance of note payable of approximately $78,000, and cash provided by financing activities from discontinued operations of approximately $582,000.

In September 2025, we entered into a common stock purchase agreement with an investor in the form of an Equity Line of Credit (the “ELOC Purchase Agreement”). Pursuant to the ELOC Purchase Agreement, we may sell to the investor up to $250 million of our common stock. The proceeds received in connection with the ELOC Purchase Agreement will be used to finance the Company’s ongoing operations, working capital, and expected acquisitions.

Off-Balance Sheet Arrangements

We had no outstanding derivative financial instruments, off-balance sheet guarantees, interest rate swap transactions or foreign currency contracts. We do not engage in trading activities involving non-exchange traded contracts.

Critical Accounting Estimates

Our consolidated financial statements and the related notes included elsewhere in this Quarterly Report on Form 10-Q are prepared in accordance with GAAP. The preparation of consolidated financial statements also requires us to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenue, costs, and expenses and related disclosures. We base our estimates on historical experience and on various other assumptions that we believe to be reasonable under the circumstances. Actual results could differ significantly from our estimates. To the extent that there are differences between our estimates and actual results, our future financial statement presentation, financial condition, operating results, and cash flows will be affected.

See Note 3.2 Summary of Significant Accounting Policies of the Notes ~~to our consolidated financial statements included in Part II, Item 8 of this Quarterly Report on Form 10-Q~~ for a summary of significant accounting policies and significant estimates and assumptions and their effects on our financial statements. Below are the significant estimates and assumptions that we consider critical because they involve a significant amount of estimation uncertainty and have had or are reasonably likely to have a material impact on our financial condition or results of operations.

Discontinued Operations

As discussed in Note 4 to the unaudited financial statements in this prospectus, the Company was unable to obtain complete financial information from a subsidiary for the period beginning April 1, 2025 and ending July 29, 2025. Consequently, management relied on historical trends and partial records to estimate the operating results of the discontinued operations for this period.

The inability to verify actual results introduces a level of uncertainty into the reported net loss from discontinued operations. Management continues to monitor the situation and may adjust its estimates in future filings should additional information become available.

Stock-based Compensation

We account for share-based payments that involve the issuance of shares of our common stock to employees and nonemployees and meet the criteria for share-based awards as stock-based compensation expense based on the grant-date fair value of the award. The Company has elected to recognize the adjustment to stock-based compensation expense in the period in which forfeitures occur. We recognize compensation expense for awards with only service conditions on a straight-line basis over the requisite service period for the entire award.

If factors change, and we utilize different assumptions including the probability of achieving performance conditions, share-based compensation cost on future award grants may differ significantly from share-based compensation cost recognized on past award grants. If there are any modifications or cancellations of the underlying unvested securities, we may be required to accelerate any remaining unearned share-based compensation cost or incur incremental cost. Share-based compensation cost affects our compensation and benefits expenses.

Warrants

Classification: The Company determines the accounting classification of warrants it issues as either liability or equity classified by first assessing whether the warrants meet liability classification in accordance with ASC 480-10, Accounting for Certain Financial Instruments with Characteristics of both Liabilities and Equity (“ASC 480”), then in accordance with ASC 815-40 (“ASC 815”), Accounting for Derivative Financial Instruments Indexed to, and Potentially Settled in, a Company’s Own Stock. Under ASC 480, warrants are considered liability classified if the warrants are mandatorily redeemable, obligate the Company to settle the warrants or the underlying shares by paying cash or other assets, or warrants that must or may require settlement by issuing variable number of shares. If warrants do not meet liability classification under ASC 480, the Company assesses the requirements under ASC 815, which states that contracts that require or may require the issuer to settle the contract for cash are liabilities recorded at fair value, irrespective of the likelihood of the transaction occurring that triggers the net cash settlement feature. If the warrants do not require liability classification under ASC 815, and in order to conclude equity classification, the Company also assesses whether the warrants are indexed to its Common Stock and whether the warrants are classified as equity under ASC 815 or other applicable GAAP. After all relevant assessments, the Company concludes whether the warrants are classified as liability or equity. Liability classified warrants require fair value accounting at issuance and subsequent to initial issuance with all changes in fair value after the issuance date recorded in the statements of operations. Equity classified warrants only require fair value accounting at issuance with no changes recognized subsequent to the issuance date.

We assess the classification of our stock purchase warrants at each reporting date to determine whether a change in classification between equity and liability is required. For modified stock purchase warrants that result in a change of classification from equity to liability, a liability is recognized equal to the fair value on the date of modification, additional paid-in capital is adjusted by the fair value of the warrant on the date of issuance, and the difference is recognized as a non-cash gain or loss on the consolidated statements of operations and comprehensive loss.

Valuation: The fair value of our equity-classified stock purchase warrants and liability-classified stock purchase warrants are determined utilizing Level 3 inputs using a Black-Scholes-Merton option valuation model and a Monte Carlo simulation model, respectively.

In both models, the fair value of an award is affected by our stock price on the date of measurement as well as other assumptions, including the estimated volatility of our stock price over the term of the stock purchase warrant as of the measurement date and the estimated period of time that we expect third parties to hold the stock purchase warrants at the measurement date. The risk-free interest rate assumption we use is based upon United States Treasury interest rates appropriate for the expected life of the stock purchase warrant.

As our stock has limited trading history on Nasdaq, we use the historical volatility of our peer companies in order to estimate future stock price trends. We expect third parties to hold their stock purchase warrants for the contractual term as we do not have any history to support a shorter term and do not anticipate stock purchase warrants to be exercised prior to the end of the term. Our expected dividend rate is zero since we do not currently pay cash dividends on our common stock and do not anticipate doing so in the foreseeable future.

We use the Monte Carlo simulation model for our liability-classified stock purchase warrants in order to incorporate other subjective assumptions based on the terms of the specific stock purchase warrant agreements or the related host contract. For our liability-classified stock purchase warrants as of September 30, 2025, we included the probability of a fundamental event, as defined in the relevant agreements, occurring in our assumptions.

The aforementioned inputs entered into the models we use to fair value our stock purchase warrants are subjective estimates and changes to these estimates will cause the fair value of our stock purchase warrants and related debt issuance discount we recognize to vary.

Derivative Financial Instruments

Classification: We evaluate our financial instruments to determine if such instruments are derivatives or contain features that qualify as embedded derivatives in accordance with ASC 815. Derivative instruments are initially recorded at fair value on the grant date and re-valued at each reporting date, with changes in the fair value reported in the consolidated statements of operations and comprehensive loss included in this Report under “Item 8. Financial Statements”. The classification of derivative instruments, including whether such instruments should be recorded as liabilities or as equity, is re-assessed at the end of each reporting period. Derivative liabilities are classified in the balance sheet as current or non-current based on whether or not net-cash settlement or conversion of the instrument could be required within 12 months of the balance sheet date. Bifurcated embedded derivatives are classified with the related host contract on the Company’s balance sheet.

Valuation: We use the Monte Carlo simulation model for our bifurcated embedded derivatives in order to incorporate subjective assumptions based on the terms of the specific host contracts. For our bifurcated embedded derivatives issued in connection with our December 2024 convertible note payable, we included the probability of a fundamental event, as defined in the relevant agreements, occurring in our assumptions in addition to the estimated volatility of our stock price over the term of the bifurcated embedded derivative as of the measurement date, the remaining term of the host contract at the measurement date, the risk-free interest rate based upon United States Treasury interest rates appropriate for the expected term, the conversion discount, and the redemption premium.

Legal and other contingencies

We are subject to various legal proceedings and claims that arise in the ordinary course of business, the outcomes of which are inherently uncertain, and such uncertainty may be enhanced due to the industry in which we operate. We record a liability when it is probable that a loss has been incurred and the amount is reasonably estimable, the determination of which requires significant judgment. In addition, we record recoveries of these losses when it is probable that they will be collected. These estimates are highly sensitive to change and involve variables that are not completely within our control nor practicable to model, including decisions made by regulators and settlement negotiations. Resolution of legal and other contingencies in a manner inconsistent with management’s expectations could have a material impact on our financial condition and results of operations.

Recently Issued Accounting Pronouncements

For information about recently issued accounting standards, refer to Note 32 to our Consolidated Financial Statements appearing elsewhere in this report.

47The following discussion and analysis is based upon, and should be read in conjunction with, our audited consolidated financial statements and related notes and other financial information appearing elsewhere in this prospectus. All references in this “Management’s Discussion and Analysis of Financial Condition and Results of Operations” are referring to the twelve-month period ended December 31, 2025 and to the twelve-month period ended December 31, 2024. This section generally discusses year-to-year comparisons between such periods. On February 14, 2025, the Board of Directors of the Company approved a change in the Company’s fiscal year end from September 30 to December 31, effective for the fiscal year beginning January 1, 2024. This change resulted in a transition period from October 1, 2024 to December 31, 2024, for which the Company filed a transition report on Form 10-K with the Securities and Exchange Commission covering these three months. As a result, (a) the Form 10-K for the year ended September 30, 2024 filed with the SEC on February 10, 2025 (as amended on Form 10-K/A filed March 31, 2025) contains the audited financial statements for the year ended September 30, 2024 and (b) the Form 10-KT/ filed May 8, 2025(as amended on Form 10-KT/A filed July 9, 2025) contains the audited financial statements as of December 31, 2024 and the year ended September 30, 2024.

~~Foreign Currency Risk~~39

~~Foreign~~Accordingly, the ~~currency~~discussion ~~transaction~~below ~~risk~~regarding the financial information of the twelve-month period ended December 31, 2024 is based on unaudited financial statements and is being provided for comparative purposes only.

~~Revenues, expenses, and financial~~All ~~results~~numbers ofbelow ~~our foreign subsidiaries~~ are ~~recorded~~ in the ~~functional~~thousands ~~currency~~except ofshare ~~these subsidiaries. Our foreign currency exposure is primarily related to transactions denominated in British Pounds attributable to cash, customer custodial funds~~ and ~~customer~~per ~~custodial~~share ~~cash liabilities and intercompany transactions where the transaction currency is different from a subsidiary’s functional currency~~data. Changes in foreign exchange rates, and in particular a weakening of foreign currencies relative to the U.S. dollar may negatively affect our results of operations as expressed in U.S. dollars. We have experienced and will continue to experience fluctuations in our results of operations as a result of gains or losses on the settlement and the remeasurement of monetary assets and liabilities denominated in foreign currencies that are not the functional currency of the respective entity.

~~If an adverse 10% foreign~~Year ~~currency~~Ended ~~exchange~~December ~~rate~~31, ~~change~~2025 ~~was~~compared ~~applied~~ to the ~~largest~~Year ~~foreign~~Ended currency exposure (e.g. British Pound) or to all foreign currency exposures in aggregate, of monetary assets, liabilities, and commitments denominated in currencies other than its functional currency as of September 30, 2025 and December 31, 2024~~, it would not have a material impact on our financial results.~~

From time to time, we may enter into derivatives or other financial instruments in an attempt to hedge our exposure to foreign currency exchange risk. It is difficult to predict the impact hedging activities would have on our results of operations. Additionally, the volatility of exchange rates depends on many factors that we cannot forecast with reliable accuracy. Our international operations increase our exposure to exchange rate fluctuations and, as a result, such fluctuations could have a material impact on our future results of operations and cash flows.

Fluctuations in functional currencies from our net investment in international subsidiaries expose us to foreign currency translation risk, where changes in foreign currency exchange rates may adversely affect our results of operations upon translation into U.S. dollars. See the consolidated statements of comprehensive income (loss) in this prospectus for translation adjustments for the three and nine months ended September 30, 2025 and 2024. A 10% increase or decrease in foreign currency exchange rates used in translating the financial statements of subsidiaries with functional currencies other than our reporting currency would not have a material impact on our financial results.

Management’s Discussion and Analysis of Financial Condition and Results of Operations of Star

You should read the following discussion and analysis of Star’s financial condition and operating results together with the audited financial statements and related notes included elsewhere in this proxy statement.

This discussion and analysis contains forward-looking statements based upon current beliefs, plans and expectations that involve risks, uncertainties and assumptions. Future results may differ materially from those anticipated in these forward-looking statements as a result of various factors.

Recent Developments

On February 3, 2025, Star entered into an agreement to purchase shares and options of Mia Dynamics Motors Ltd., a public company traded on the Tel Aviv Stock Exchange (“Mia”). Star purchased a total of 2,250,000 ordinary shares of Mia at NIS 0.01 par value and 2,250,000 options (non-tradable) exercisable for 2,250,000 ordinary shares of the public company, up to 24 months from the date of the engagement and against an exercise price of NIS 0.60 per option for NIS 900,000 (approximately $249,000). On February 7, 2025, Star additionally purchased a total of 2,083,300 ordinary shares and 1,458,310 options (non-tradable) of Mia for NIS 750 thousand (approximately $208,000). The securities issued to Star constitute 1.28% of Mia outstanding capital (1.67% on a fully dilutive basis) and, as a result of the minority ownership, the interest is not considered material to Star.

On June 8, 2025, Star Twenty Six Ltd. (“Star Twenty Six”), a wholly owned subsidiary of Star, entered into an agreement with Water IO Ltd., a company listed on the Tel Aviv Stock Exchange (“Water”) and its controlling shareholders, pursuant to which the parties agreed to engage in the following transaction whereby Star will lend Water NIS 600,000 (14% annual interest, 2-year term) which will be used to pay Water’s payables. Water will record A first-ranking floating charge on all company assets and a first-ranking fixed charge on unissued share capital (36.5M shares). Water is required to hold a shareholders’ meeting in which the shareholders will be requested to approve the transaction, approve Star’s nominees to be serve as Water directors and a reverse split of the company’s shares. Subject to obtaining shareholders’ approval and other closing conditions, Star will further lend Water NIS 700,000 and shall also invest NIS 700,000 as an equity investment. In return for Star fulfilling its obligations, Water will issue Star 72% of Water’s fully diluted share capital. The closing of the transaction is contingent on several conditions, including Star being satisfied with its due diligence of Water, Shareholder and TASE approvals and the registration of the shares to be issued to Star. After the closing of the transaction, Star commits to introducing new business activity into Water worth at least NIS 40M. The legacy business of Water will be transferred to a trustee for liquidation and any proceeds from the Sealed Air litigation in the U.S. will be Allocated: 35% to Water and 65% to pre-deal shareholders (pro rata). The litigation will be handled via a trust structure to be approved by shareholders, with the legal costs for Sealed Air case capped at $10K. If deal is terminated due to Water’s fault or failed due diligence then the first loan increases to NIS 2.1M with 18% annual interest and Star may convert loan to shares (up to 19.9%) at NIS 0.30/share. If terminated for other reasons (e.g., failed shareholder approval) Star can choose repayment or partial share conversion. Water’s assets, revenue and financial activity is not material (less than 20%) of Star’s current assets and revenues.

On June 8, 2025, Star Twenty Six entered into an agreement with I.T.S. Industrial Tecno-logic Solutions Ltd. (“ITS”) and its controlling shareholder Gera Eron, pursuant to which Star will lend ITS NIS 10,000,000. In return Star would get 51% of the share capital of ITS on a fully diluted basis. ITS is an Israeli company providing design, development, production, and manufacturing of serial, fully integrated electro-mechanical machines and sophisticated assembly lines. Positech, its wholly-owned subsidiary, designs and manufactures top-of-the-line, high-performance motion control systems for military and civilian use. Positech provides small to middle-series one-stop shop “Build to Spec” & “Build to print” custom-made prototypes and OEM systems in the Mechanical, Electrical, HW, FW, and SW Engineering fields. Pursuant to the terms of the agreement, Star was also granted an option to purchase the remainder 49% of ITS for three years from the controlling shareholder. Depending on whether the option is exercised in the first, second or third year hereafter, the agreed purchase price for the 49% is 25 million NIS, 30 million NIS or 35 million NIS, respectively. Star was provided 30 days to complete its due diligence in connection with the acquisition of ITS. Moreover, pursuant to the terms of the agreement, ITS has until July 7, 2025 to obtain the consent of its current banks to the agreement. If such confirmation is not received, Star would lend ITS ILS 2,500,000, with subsequent loans to be made in 30-day intervals thereafter. Subject to the completion of Star’s due diligence and to ITS banks’ consent, Star would provide the said loan and, in return, ITS shall issue Star shares equal to 51% of ITS. If the banks do not provide consent to the agreement by July 7th, then the loan is due 12 months after the funds are paid to ITS and no shares shall be issued to the Lender. In such case no further loans are due to ITS. Based on the revenues, net income and assets of Water, the loan is not material to operations of Star.

On February 11, 2025, we executed and delivered an amendment to the Securities Purchase Agreement and Call Option, dated December 15, 2024 (as amended, the “Nukkleus Agreement”) with the Company, its equity holders and Mr. Shalom, acting in his capacity as the representative of the Star Equity Holders, increasing the amount of advances we can borrow from T3 Defense to $1,800,000.

On May 13, 2025, another amendment was executed among the parties increasing the amount of advances Star can borrow from T3 Defense to $3,000,000. On June 15, 2025, the parties entered into Amendment No. 3 whereby they clarified that if T3 Defense fails to make all payments by the agreed time or if the Star Agreement is terminated as a result of T3 Defense failing to perform or observe the covenants or agreements of T3 Defense or if T3 Defense fails to maintain its listing on Nasdaq, Star shall be entitled to a payment from T3 Defense in the amount of $3,000,000. On July 25, 2025, the parties entered into Amendment No. 4 whereby Menachem Shalom, the holder of all the issued and outstanding Class B common stock in Star, agreed to convert his Class B shares to Class A common stock, with the same rights as the shares of Class A common stock.

Our Acquisition of Rimon

B. Rimon Agencies Ltd., which we refer to as Rimon, is an Israeli limited liability company formed by the late Binyamin Rimon, its founder and former chief executive officer, on June 4, 1992. Rimon, an Israeli defense industry company, serves the Israeli market as an exclusive distributor of generators, masts, lighting solutions, and a wide range of defense, homeland security, and commercial systems. Star acquired Rimon from its founder and Chief Executive Officer, Menachem Shalom, on February 15, 2024 pursuant to an agreement in which he assigned and transferred all of his Rimon shareholdings, constituting 100% ownership thereof, to Billio, Star’s wholly owned subsidiary, in exchange for Star (1) assumption of his obligations and rights under certain agreements between himself, Rimon, and the former owners and sellers of Rimon, who we refer to as the Sellers, including but not limited to the right to be repaid by Rimon for a loan of NIS 425,000 which Mr. Shalom extended to the Sellers on December 25, 2023, and a NIS 750,000 payment obligation and other conditional/performance based payment obligations; (2) indemnification of the founder with respect to any and all of his obligations to the Sellers; and (3) Star’s reimbursement of the founder costs incurred in connection with his acquisition of Rimon. On December 12, 2024, the Sellers agreed that we may remove their names from the shares on which such names are currently affixed on the official Israeli securities registrar upon our payment of NIS 171,837 to the Sellers, an amount equal to (i) the sum of the final NIS 300,000 installment due February 15, 2024 and a fee owed to the sellers of Rimon in connection with a certain mast brokerage transaction between Fireco SARL and BL Advanced Ground Support Systems Ltd., (ii) less NIS 152,203, representing funds held in a private account of the late Binyamin Rimon, as collateral for certain of Rimon’s debt which was to be returned to us upon repayment of the debt and release of the collateral. Star paid the prior amount on December 18, 2024, and had the Sellers name removed from the official Israeli securities registrar thereafter.

In connection with our acquisition of Rimon from Mr. Shalom, we agreed to reimburse him for the costs incurred during his acquisition of Rimon and to establish the terms and conditions for the working capital advances he planned to provide, and subsequently provided, to Rimon. To do so, on February 15, 2024, we issued Mr. Shalom a demand grid promissory note with an initial principal of $155,405, representing the amounts he had extended to Rimon before that date, bearing interest at 8% per annum and maturing 60 days after the earlier of February 15, 2025, or upon the closing of a private placement or public offering for gross proceeds of at least $5,000,000. Since its issuance, the outstanding principal of the note: (i) increased by $23,424 to $178,829 on March 22, 2024, due to a working capital advance from Mr. Shalom, then (ii) decreased by $20,270 to $158,559 on May 23, 2024, after we repaid that amount of the outstanding principal of the note, then (iii) increased by $59,540 to $218,100 on August 28, 2024, due to an additional working capital advance from Mr. Shalom, then (iv) increased by $54,054 to $272,154 on the prior date to reflect an advance from Mr. Shalom to cover a portion of the second required payment to the Rimon sellers; then (v) increased by $189,362 to $461,516, the current outstanding principal of the note, on December 4, 2024, following an additional working capital advance from Mr. Shalom extended until that date.

Rimon Acquisition Accounting Treatment

Star accounted for the acquisition of Rimon as a business combination using the acquisition method under FASB ASC Topic 805 as of the date we obtained control. In compliance with ASC 810-10-40-6, we treated the series of transactions leading up to our acquisition of Rimon as a single transaction because: (i) we executed each transaction around the same time and in contemplation of one another, (ii) Mr. Shalom formed Star to acquire Rimon, (iii) Star’s formation depended on Mr. Shalom’s acquisition of Rimon, and (iv) the transactions formed a unified arrangement to make Rimon a wholly owned subsidiary of Star.

As the accounting acquirer, Star recorded the consideration that Mr. Shalom paid on our behalf. Star estimated the purchase price, identified the acquired assets and assumed liabilities as of the acquisition date, and recognized any excess of the purchase price over the fair value of the net assets acquired as goodwill. However, we are still finalizing the purchase price allocation. As a result, our current fair value estimates for contingent consideration, goodwill, and related tax impacts are preliminary and may change as we receive more information, including final adjustments to net working capital. We expect to complete the valuation as soon as possible and no later than one year after the acquisition date.

The excess of Rimon’s purchase price over the fair market value of its net tangible and identifiable intangible assets acquired was recorded as goodwill, primarily reflecting Rimon’s the market opportunities in Israel. There is no goodwill in this purchase.

The following table sets forth the preliminary components of identifiable intangible assets acquired and their estimated useful lives as of the date of acquisition (in months):

	Fair value		Useful life
Distributor rights	$	89,000		60
Backlog		242,000		24
Customer Relationships		70,000		60
Total intangible assets	$	401,000

As described above and elsewhere in this prospectus, on February 15, 2024, we executed an assignment and assumption agreement with Mr. Shalom, pursuant to which we, through our wholly owned subsidiary Billio, acquired all 200 shares of Rimon’s issued and outstanding capital stock in exchange for our assumption of all Mr. Shalom’s rights and obligations under his agreements with the former owners and sellers of Rimon, dated December 22, 2023, and February 15, 2024. According to ASC 805in a common control transaction, a receiving entity records assets and liabilities at the transferring entity’s carrying amounts, not at fair value, because such transactions do not involve a substantive change in ownership and do not require a step up in basis. As a result, we recorded Rimon’s assets at their carrying values and treated them as a capital contribution from Mr. Shalom.

Securities Purchase Agreement with T3 Defense

On December 15, 2024, Star entered into a Securities Purchase Agreement and Call Option, as amended on each of February 11, 2025, May 13, 2025 and June 15, 2025 (collectively, the “Nukkleus Agreement”) with T3 Defense (formerly known as Nukkleus Inc.), Star’s equity holders and Mr. Shalom, acting in his capacity as the representative of the Star holders, to sell to T3 Defense a controlling 51% interest in Star in exchange for an aggregate investment of (i) $21,000,000 that consists of $5,000,000 in cash, (ii) a promissory note in the principal amount of $16,000,000 less amounts previously borrowed from T3 Defense and (iii) shares and warrants in T3 Defense. Our equity holders granted T3 Defense an option (the “Option”) to purchase the balance of their equity in Star (49.0%) for an aggregate $16,084,250 (the “Option Exercise Price”) in consideration for the issuance to them of five-year stock purchase warrants to purchase an aggregate of 720,000 shares of Star’s common stock with an exercise price of $1.50 per share.

If, for a period of 12 months after the closing of the transactions contemplated by the Nukkleus Agreement, the shares of T3 Defense are delisted from Nasdaq, Star shall have the right, at its own discretion, to require T3 Defense to exchange the note for all the shares of Star then held by T3 Defense , the option shall be automatically cancelled and we shall retain any cash payments made by T3 Defense . In such instance, T3 Defense shall retain an equity interest in Star equivalent to all cash payments. The closing of the transaction is subject to customary closing conditions, including regulatory approvals, third-party consents, fairness opinion, and approval by the shareholders of T3 Defense as required under applicable Nasdaq listing rules.

If the Nukkleus Agreement is canceled because stockholder approval was not obtained within 90-days after the date of the Agreement and the failure was a result of T3 Defense failing to perform or observe its covenants or agreements provided for in the Agreement, Star is entitled to damages of $1,800,000 from T3 Defense .

Results of Operations

Comparison of the years Ended December 31, 2024 and 2023

The following table sets forth key components of our results of operations during the years ended December 31, 2024 (Star 26 Capital Inc.) and 2023 (B. Rimon Agencies Ltd) both in thousands of dollars and as a percentage of our revenues.

	Year ended
	December 31
	2024			2023
Revenues		4,994			3,797
Cost of revenues		(3,808	)		(2,648	)
Gross profit		1,186			1,149
General and administrative expenses		(1,687	)		(547	)
Operating Income (Loss)		(501	)		602
Other Income		55			38
Financial income, net		(143	)		(104	)
		(589	)		536
Taxes on income		34			(129	)
Net Income (loss)		(555	)		407

Revenue

~~Rimon’s~~We had ~~revenue~~no ~~for~~ revenues from operations during the ~~years~~twelve months ended December 31, ~~2024~~2025 and ~~2023 were $4~~2024,~~994,000~~ ~~and~~due ~~$3,797,000,~~to ~~respectively,~~the antransformation ~~increase~~ of ~~$1,197,000,~~the orCompany ~~31.52%. Revenues~~to ~~increased as~~ a ~~result~~strategic ofacquirer ~~growing~~and ~~demand~~operator ~~for~~of ~~the~~aerospace ~~products~~and ofdefense ~~Rimon,~~businesses. ~~particularly~~During asthe athird ~~result~~quarter of ~~the~~2025, ~~situation~~we indiscontinued ~~Israel~~operations ~~and~~of our ~~the~~former ~~general geopolitical~~subsidiary ~~trends~~DRFQ.

~~Cost of revenue~~Operating Expenses

~~Rimon’s~~Total operating ~~cost~~expenses offor ~~revenue~~ the year ended December 31, 2025 was $32,600 as compared to $8,827 for the ~~years~~year ended December 31, 2024, an increase of approximately 269%. Operating expenses are comprised of professional fees, compensation and ~~2023~~related ~~were~~benefits, other general and administrative expenses and impairment loss. Professional fees increased from $36,~~808~~373 for the year ended December 31,~~000~~ 2024 to $7,803 for the year ended December 31, 2025. Compensation and related benefits increased from $21,~~648~~279 for the year ended December 31,~~000~~ 2024 to $19,145 ~~respectively~~for the year ended December 31, an2025, ~~increase~~primarily as a result of $18,825 of share-based compensation for the year ended December 31, 2025. Other general and administrative expenses increased from $785 for the year ended December 31, 2024 to $1,~~160~~308 for the year ended December 31,~~000~~ 2025. ~~Cost~~The increase in the other general and administrative expenses was primarily a result of ~~revenue increased~~increases in ~~line~~rent ~~with~~and office maintenance as well as travel expenses of our ~~increase~~CEO and other critical members of our team in ~~revenue~~efforts to grow our business. The impairment loss for the year ended December 31, 2024 was $391 as compared to $4,344 for the year ended December 31, 2025, which was solely attributable to the impairment recognized on the digital assets we acquired during the year ended December 31, 2025.

Gross profit and Gross margin

Gross profit for the years ended December 31, 2024 and 2023 were $1,186,000 and $1,149,000, respectively, and its gross margin for the respective year ends were 23.75% and 30.26%, respectively.

General and Administrative expenses.

General and administrative expenses increased from $547,000 in 2023 to $1,687,000 in 2024. This overall increase masks a shift in the composition of the following expenses:

- Salaries and related expenses increase from $289,000 in 2023 to $467,000 in 2024.

- Rent expenses increase from $39,000 to 60,000 due to municipality tax benefits received; and

- Professional fees increased from $88,000 in 2023 to $712,000 in 2024, due to higher professional service fees related to compliance and consulting in Rimon and professional service fees related to compliance and consulting in the Company. The fees are directed related to the proposed transaction between the Company and Star, which directly results in increased compliance and consulting and professional service fees incurred by Rimon.

- Amortization of intangible assets in 2024 was $196,000.

Income Tax

Our income tax expense decreases from $129,000 in 2023 to income tax of $34,000 in 2024 As of December 31, 2024, Rimon and subsidiary have carried forward losses for tax purposes of approximately $430,000 and $660,000 thousands, respectively.

Net Income

~~Net~~Total net income ~~decreased~~was ~~significantly~~$78,631 for the year ended December 31, 2025 as compared to the total net loss of $160,378 for the year ended December ~~from~~31, 2024. The net income offrom continuing operations for the year ended December 31, 2025 was $~~407~~76,~~000~~601 inas ~~2023~~compared to a net loss of $~~555~~165,~~000~~200 for inthe year ended December 31, 2024. The net gain from discontinued operations was $2,030 for the year ended December 31, 2025 as compared to a net gain of $4,821 for the year ended December 31, 2024.

~~Comparison of Years Ended December 31, 2023 and 2022 - B.~~Net ~~Rimon Agencies Ltd~~cash

~~The~~Net cash ~~following~~used ~~table~~in ~~sets~~operating ~~forth key~~activities ~~components~~for ofthe ~~our~~year ~~results~~ended ofDecember ~~operations~~31, ~~during~~2025 was $6,147 as compared to $3,421 for the ~~years~~year ended December 31, 2024. ~~2023~~Net ~~and~~cash ~~2022,~~used in ~~thousands~~operating ofactivities ~~dollars~~for ~~and~~discontinued activities was $51 for the year ended December 31, 2025 as acompared ~~percentage~~to 4,822 offor ~~our~~the ~~revenues~~year ended December 31, 2024.

52Net cash used in investing activities was $933 for the year ended December 31, 2024 as compared to $178,867 for the year ended December 31, 2025.

	Year ended
	December 31
	2023			2022
Revenues		3,797			2,698
Cost of revenues		(2,648	)		(2,041	)
Gross profit		1,149			657
General and administrative expenses		(547	)		(518	)
Operating Income		602			139
Other Income		38			78
Financial income, net		(104	)		(100	)
		536			(117	)
Taxes on income		(129	)		43
Net Income		407			(74	)

Net cash provided by financing activities was $11,307 for the year ended December 31, 2024 as compared to $181,985 for the year ended December 31, 2025.

Revenue

Our revenue increased by 41%, from $2,698,000 in 2022 to $3,797,000 in 2023. This growth was driven primarily by increased demand for masts, which accounted for approximately 62% of the revenue growth. Additionally, our generators saw a 38% rise in sales due to increased demand in the Israeli market attributed to the war in Israel.

Cost of Revenue

Cost of revenue rose by 30%, from $2,041,000 in 2022 to $2,648,000 in 2023. This increase correlates with higher sales volumes, particularly in masts, which carries higher production and delivery costs. Notably, the cost of raw materials increased by 30%, contributing to the rise in our cost structure.

Gross Profit and Gross Margin

Gross profit improved from $657,000 in 2022 to $1,149,000 in 2023, reflecting a 75% increase. Our gross margin also rose from 24.4% to 30.3%, primarily due to a favorable shift in our product mix towards higher-margin masts and improved operational efficiencies.

General and Administrative expenses.

General and administrative expenses increased from $518,000 in 2022 to $574,000 in 2023, a rise of approximately 10.8%. This overall increase masks a shift in the composition of the following expenses:

● Salaries and related expenses decreased from $340,000 in 2022 to $289,000 in 2023, reflecting the impact of workforce optimization initiatives;

● Rent expenses decreased from $42,000 to 39,000 due to municipality tax benefits received; and

● Professional fees increased from $11,000 in 2022 to $88,000 in 2023, due to higher professional service fees related to compliance and consulting, which accounted for $77,000 of the increase, and a $3,000 rise in consulting and marketing costs.

Income Tax

Our income tax expense increased to $129,000 in 2023, up from $43,000 in 2022, driven by higher taxable income. Our effective tax rate remained consistent at approximately 23%. Despite this, we carried forward tax losses of $635,000 as of December 31, 2023, which will reduce taxable income in future periods.

Net Income

Net income increased substantially, from $200,000 in 2022 to $443,000 in 2023. This improvement was the result of higher revenue and gross margin, partially offset by increased administrative expenses.

Liquidity and Capital Resources

OnAs of ~~June~~December 3031, 2025, ~~Star~~we had $~~423~~13,~~000~~555 inof current assets, including $3,897 of cash and cash equivalents. Based on management’s current expectations, we anticipate that we will need approximately $6,000,000 for the next 12 months of operations. We believe that we will have sufficient capital to fund our ongoing operations given our ability to deliver purchase notices under our current ELOC facility after the registration statement is declared effective and we obtain stockholder approval of the issuances thereunder.

Rimon’s capital resources are lines of credit extended to it by banks and its vendors. In addition, and based on short term needs, the founder is willing to provide Rimon with working capital advances to cover short term financial needs.40

~~Plan~~The Company recorded negative working capital of ~~Operations~~approximately $30 million (which includes $24.5 million of stock purchase warrant liabilities which will not require cash to extinquish) and stockholders’ deficit of $15.6 million as of December 31, 2025; a net operating loss of $32.6 million and net cash used in operations of $6.2 million for the year ended December 31, 2025. Absent any other action, the Company will require additional liquidity to continue its operations for the next 12 months.

~~Rimon~~After evaluating ~~can~~these ~~maintain~~conditions, management concluded that its ~~current operations~~plans, ~~both~~taken in ~~the~~aggregate, ~~short~~alleviate ~~term~~substantial ~~over~~doubt. ~~the~~Those ~~next~~plans 12include: (i) ~~months~~cancellation ~~and~~of ina previously contemplated $16 million intercompany note obligation arising from the ~~long~~acquisition ~~term~~of Star 26, ~~with~~which has been mutually agreed to be of no ~~additional~~force ~~funding~~or byeffect; ~~relying~~(ii) onthe ~~lines~~Company’s existing unrestricted cash balance of ~~credit~~approximately $6.0 ~~provided~~million, bysufficient ~~its~~to ~~vendors,~~fund ~~banks,~~projected ~~and~~operating expenses of its ~~self~~portfolio companies through the look-~~generating~~forward ~~cashflow.~~period; ~~The~~(iii) ~~minimum~~an ~~funding~~active Equity ~~required~~Line ~~for~~of ~~Star’s~~Credit to(“ELOC”) ~~remain~~with inEsousa ~~business~~Holdings, LLC — legally binding, SEC-registered, and shareholder-approved ~~for~~— atproviding ~~least~~drawdown ~~the~~capacity, ~~next~~which 12exceeds ~~months~~the isCompany’s ~~$1.2~~projected ~~million.~~annual ~~That~~operating ~~amount~~cash ~~would~~needs; be(iv) ~~used~~the ~~primarily~~Company’s majority-owned tosubsidiaries, ~~buy~~including ~~raw~~Rimon ~~materials~~Ltd. toand beNimbus ~~used~~Robotics, ~~for~~which ~~inventory~~are cash-positive and ~~for~~ ~~working~~require no capital. ~~Further,~~support ~~Star~~from ~~will~~the Company; be(v) ~~able~~management’s toongoing ~~continue~~efforts to ~~conduct~~assist ~~its~~subsidiaries ~~planned~~in ~~operations~~securing ~~for~~or anexpanding ~~additional~~bank ~~eight~~credit ~~months~~facilities; ~~through~~and ~~February~~(vi) the ~~2026~~option ~~using~~to ~~currently~~satisfy ~~available~~certain ~~capital~~obligations ~~resources~~through issuance of equity in lieu of cash.

~~Off~~Management has ~~Balance-sheet~~determined ~~Arrangements~~that its plans are probable of being effectively implemented and probable of mitigating the conditions described above, enabling continuation of the Company’s operations for the foreseeable future. In the event management is incorrect in its determination and current and anticipated future sources of liquidity are insufficient to fund our future business activities, we may be required to seek additional equity or debt financing. The sale of additional equity would result in additional dilution to our stockholders.

~~Star has no off~~Off-~~balance sheet~~Balance ~~arrangements~~Sheet that have or are reasonably likely to have a current or future effect on our financial condition, changes in financial condition, revenues or expenses, results of operations, liquidity, capital expenditures or capital resources.Arrangements

~~Critical~~We had ~~Accounting~~no ~~Policies~~outstanding derivative financial instruments, off-balance sheet guarantees, interest rate swap transactions or foreign currency contracts. We do not engage in trading activities involving non-exchange traded contracts.

The following discussion relates to critical accounting policies for our company. The preparation of financial statements in conformity with GAAP requires our management to make assumptions, estimates and judgments that affect the amounts reported, including the notes thereto, and related disclosures of commitments and contingencies, if any. We have identified certain accounting policies that are significant to the preparation of our financial statements. These accounting policies are important for an understanding of our financial condition and results of operation. Critical ~~accounting~~Accounting policies are those that are most important to the portrayal of our financial condition and results of operations and require management’s difficult, subjective, or complex judgment, often as a result of the need to make estimates about the effect of matters that are inherently uncertain and may change in subsequent periods. Certain accounting estimates are particularly sensitive because of their significance to financial statements and because of the possibility that future events affecting the estimate may differ significantly from management’s current judgments. We believe the following critical accounting policies involve the most significant estimates and judgments used in the preparation of our financial statements:Estimates

~~Income~~Our consolidated ~~taxes~~financial statements and the related notes included elsewhere in this prospectus are prepared in accordance with GAAP. The preparation of consolidated financial statements also requires us to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenue, costs, and expenses and related disclosures. We base our estimates on historical experience and on various other assumptions that we believe to be reasonable under the circumstances. Actual results could differ significantly from our estimates. To the extent that there are differences between our estimates and actual results, our future financial statement presentation, financial condition, operating results, and cash flows will be affected.

WeSee Note ~~account~~2. ~~for~~Summary ~~income~~of ~~taxes~~ Significant Accounting Policies of the Notes to our consolidated financial statements included in ~~accordance~~this ~~with~~prospectus for ~~ASC~~a ~~740,~~summary ~~“Income~~of ~~Taxes”~~significant byaccounting ~~recognizing~~policies ~~the~~and ~~current~~significant ~~year’s~~estimates ~~tax~~and ~~payable~~assumptions and ~~deferred~~their ~~tax~~effects ~~assets~~on orour financial statements. ~~liabilities~~Below ~~for~~are the ~~future~~significant ~~impact~~estimates and assumptions that we consider critical because they involve a significant amount of ~~events~~estimation uncertainty ~~already~~and ~~reflected~~have inhad ~~Star’s~~or are reasonably likely to have a material impact on our financial ~~statements~~condition or ~~tax~~results ~~returns~~of operations.

~~Deferred tax assets and liabilities~~Derivative ~~arise from temporary differences between~~ financial reporting and tax reporting bases. They are measured using the enacted tax rates and laws expected to apply when these amounts reverse or are utilized. Valuation allowances are recorded to reduce deferred tax assets to amounts that are more likely than not to be realized. For uncertain tax positions, Star uses a more-likely-than-not recognition threshold and measures the potential outcomes based on the amounts and probabilities of resolution with taxing authorities.instruments

54The Company accounts for derivative instruments in accordance with ASC 815, Derivatives and Hedging (“ASC 815”). Changes in the fair value of derivative instruments are recognized in the consolidated statement of operations. The Company does not use derivative instruments to hedge exposures to cash flow, market, or foreign currency risk.

~~Revenue~~The Company ~~Recognition~~evaluates all of its financial instruments, including notes payable, to determine if such instruments are derivatives or contain features that qualify as embedded derivatives. The Company applies significant judgment to identify and evaluate complex terms and conditions in its contracts and agreements to determine whether embedded derivatives exist. Embedded derivatives must be separately measured from the host contract if all the requirements for bifurcation are met. The assessment of the conditions surrounding the bifurcation of embedded derivatives depends on the nature of the host contract. Bifurcated embedded derivatives are recognized at fair value, with changes in fair value recognized in the statement of operations each period. Bifurcated embedded derivatives are classified with the related host contract on the Company’s balance sheet. The Company identified embedded derivatives primarily related to conversion features included in certain financial instruments. These features were evaluated in accordance with ASC 815 and, where required, were bifurcated from the host contract and accounted for as derivative liabilities at fair value.

We recognize revenues upon delivery of our finished products to customers. Delays or failure to make deliveries prevent us from recognizing revenue. To produce and deliver our products, we rely on purchasing and obtaining physical parts and goods from suppliers worldwide. Delays in manufacturing or shipments can significantly impact our production capabilities, and therefore, the number and value of products we can deliver to customers. Additionally, Global events like Covid-19 and the Russia-Ukraine war have disrupted supply chains, affecting our operations and revenues.41

~~Revenue recognition in any~~An ~~accounting~~evaluation ~~period~~of ~~involves~~specifically ~~significant~~identified ~~management~~conditions ~~judgments~~is ~~and~~made ~~estimates.~~to Ifdetermine ~~these~~whether ~~judgments~~the orfair ~~estimates~~value ~~are~~of ~~incorrect,~~the orderivative ifissued ~~they~~is ~~change due~~required to be ~~evolving~~classified ~~business~~as equity or ~~market~~as ~~conditions,~~a itderivative ~~may~~liability. ~~result~~Changes in ~~material~~the ~~differences~~estimated infair ~~the~~value ~~amount~~ of ~~revenue~~the ~~recognized~~liability-classified ~~during~~derivative ~~a given~~financial ~~period.~~instruments Weare ~~recognize~~recognized ~~revenues~~as ina ~~accordance~~non-cash ~~with~~gain ~~ASC~~or ~~606, “Revenue from Contracts~~loss ~~with~~on ~~Customers”,~~the ~~which~~accompanying ~~provides a~~consolidated ~~unified~~statements ~~model~~of tooperations ~~determine~~and ~~how~~comprehensive ~~revenue is recognized~~loss.

~~Pursuant to ASC 606, we recognize~~Stock ~~revenue~~purchase when control of promised goods or services is transferred to our customers in an amount that reflects the consideration we expect to receive in exchange. We determine revenue recognition through the following steps: (1) identifying the contract with a customer; (2) identifying the performance obligations within the contract; (3) determining the transaction price; (4) allocating the transaction price to the performance obligations; and (5) recognizing revenue when, or as, we fulfill a performance obligation.warrants

AsThe Company accounts for stock purchase warrants as either equity-classified or liability-classified instruments based on an assessment of the warrant’s specific terms and applicable authoritative guidance in ASC 480, Distinguishing liabilities from equity (“ASC 480”), and ASC 815. The assessment considers whether the ~~date~~stock purchase warrants are freestanding financial instruments pursuant to ASC 480, meet the definition of ~~this~~a ~~report~~liability pursuant to ASC 480, and whether the stock purchase warrants meet all of the werequirements ~~generate~~for ~~two~~equity ~~main~~classification ~~types~~under ASC 815, including whether the stock purchase warrants are indexed to the Company’s own common shares and whether the holders could potentially require “net cash settlement” in a circumstance outside of ~~revenue:~~the Company’s control, among other conditions for equity classification. This assessment, which requires the use of professional judgment, is conducted at the time of issuance, modification, and as of each subsequent quarterly period end date while the stock purchase warrants are outstanding.

●For issued ~~Revenue~~or ~~from~~modified ~~selling~~stock ~~imported~~purchase ~~goods,~~warrants ~~such~~that asmeet ~~generators,~~all ~~masts,~~of ~~and~~the ~~lighting.~~criteria ●for ~~Revenue~~equity ~~from~~classification, ~~integration~~the ~~projects,~~stock ~~where~~purchase wewarrants ~~design,~~are ~~engineer,~~required to ~~source~~be ~~raw~~recorded ~~materials,~~as ~~assemble,~~a ~~and~~component ~~complete~~of ~~tactical~~additional ~~vehicles~~paid-in ~~and~~capital ~~trailers~~at the time of issuance.

~~Leases~~For issued or modified stock purchase warrants that do not meet all the criteria for equity classification, the stock purchase warrants are required to be recorded at their initial fair value on the date of issuance, and each balance sheet date thereafter. Changes in the estimated fair value of the liability classified stock purchase warrants are recognized as a non-cash gain or loss on the accompanying consolidated statements of operations and comprehensive loss.

WeThe Company assesses the classification of its common stock purchase warrants at each reporting date to determine whether ana ~~arrangement~~change in isclassification orbetween ~~contains~~equity aand ~~lease~~liability atis ~~the~~required. ~~contract~~For ~~inception~~modified ~~and~~stock ~~include~~purchase ~~operating~~warrants ~~leases~~that result in ~~operating~~a ~~lease~~change ~~right-~~of~~-use~~ ~~assets~~classification from equity to liability, ~~other~~a ~~current~~liability ~~liabilities~~is recognized equal to the fair value on the date of modification, additional paid-in capital is ~~and~~adjusted ~~operating~~by ~~lease~~the ~~liabilities~~fair value of the warrant on ~~our~~the ~~balance~~date ~~sheets~~of issuance.

~~Right-of-use assets represent~~Extinguishment ~~our right to use an underlying asset for a given lease term,~~ and ~~lease~~Modification ~~liabilities represent our obligation to make lease payments. We recognize operating lease right-~~of~~-use~~ ~~assets~~Debt and ~~liabilities~~Related at the commencement date, based on the present value of lease payments over the lease term. Since our leases do not provide an implicit interest rate, we generally use the incremental borrowing rate based on the estimated interest rate for collateralized borrowing over a similar term on our lease commencement dates. The operating lease right-of-use asset includes any lease payments made and excludes lease incentives. Our lease terms may also include options to extend or terminate the lease when we are reasonably certain to exercise that option. We recognize lease expense on a straight-line basis over the lease term.Instruments

WeThe Company ~~monitor~~accounts for ~~events~~the orextinguishment ~~changes in~~of ~~circumstances~~debt ~~that~~in ~~require~~accordance uswith toASC ~~reassess~~470, ~~our leases~~Debt. IfAn aextinguishment ~~reassessment leads to the remeasurement~~ of adebt ~~lease~~occurs ~~liability,~~when wethe ~~make~~Company ais ~~corresponding~~legally ~~adjustment~~released tofrom being the ~~carrying~~primary ~~amount~~obligor ofunder the ~~related right-of-use asset~~liability, ~~unless~~including ~~this~~through ~~would~~repayment, ~~reduce~~settlement, ~~the~~or ~~right-of-use asset’s carrying amount below zero. In such~~ a ~~case,~~modification weof ~~record the amount~~ terms that ~~would~~is ~~result~~considered ~~in a negative ROU asset balance in the statement of comprehensive loss~~substantial.

~~Related~~Upon extinguishment, ~~Party~~the ~~Transactions~~Company derecognizes the carrying amount of the debt and recognizes a gain or loss in the consolidated statement of operations for the difference between the reacquisition price and the net carrying amount of the extinguished debt.

~~Star~~The Company ~~follows~~evaluates ~~ASC~~modifications ~~850,~~of ~~“Related~~debt instruments to determine whether such modifications should be accounted for as a modification ~~Party~~or ~~Disclosures”~~an extinguishment. If the terms of the modified debt are substantially different from the original terms, ~~for~~including based on a quantitative assessment, the ~~identification~~transaction is accounted for as an extinguishment of ~~related~~the ~~parties~~original debt and ~~disclosure~~the issuance of ~~related~~new ~~party transactions~~debt.

55In transactions where debt is settled through the issuance of equity instruments, warrants, or other derivative instruments, the Company evaluates whether such transactions represent an extinguishment of debt. The fair value of the instruments issued is used to determine the reacquisition price, and any resulting gain or loss is recognized in the consolidated statement of operations.

~~Key Financial Terms and Metrics~~Stock-based compensation

The Company ~~following~~measures ~~discussion~~and ~~summarizes~~ recognizes the ~~key~~compensation ~~factors~~expense ~~our~~for ~~management~~all ~~believes~~equity-based payments to employees and nonemployees based on their estimated fair values in accordance with ASC 718, “Compensation- Stock Compensation”. Share-based payments including grants of stock options are ~~necessary~~recognized ~~for~~in anthe ~~understanding~~statement of ~~our~~comprehensive ~~financial~~loss ~~statements:~~as a compensation expense based on the fair value of the award at the date of grant. The fair value of stock options granted is estimated using the Black-Scholes option-pricing model. The Company has expensed compensation costs, net of forfeitures as they occur, applying the accelerated vesting method, over the requisite service period or over the implicit service period when a performance condition affects the vesting, and it is considered probable that the performance condition will be achieved.

●Recently Issued ~~Research~~Accounting and Development Expense. The process of researching and developing our product candidates may be lengthy, unpredictable, and subject to many risks. We are unable, with any certainty, to estimate either the costs or the timelines in which those expenses will be incurred. Our research and development costs may include internal recurring costs, such as personnel-related costs (salaries, employee benefits, equity compensation and other costs), materials and supplies, facilities and maintenance costs attributable to research and development functions. ● Marketing. Our marketing expenses consist primarily of payment to freelancers, salaries, employee benefits, equity compensation, and other personnel-related costs associated with executive and other support staff. Other significant marketing expenses may include the costs associated with professional fees to develop our marketing strategy and fees associated with setting up exhibitions and shops, with marketing promotions and with digital marketing. Our marketing costs are part of the General and Administrative Expenses in our Profit and Loss report. ● General and Administrative Expenses. Likewise, our general and administrative expenses consist primarily of salaries, employee benefits, equity compensation, and other personnel-related costs associated with executive, administrative and other support staff. Other significant general and administrative expenses include the costs associated with professional fees for accounting, auditing, insurance costs, consulting and legal services, along with facility and maintenance costs attributable to general and administrative functions. ● Financial Expenses. Our financial expenses consist primarily of the impact of the exchange rate derived from re-measurement of monetary balance sheet items denominated in non-dollar currencies. Other financial expenses include bank fees and interest on long-term loans.Pronouncements

~~Operating~~For information ~~Activities~~about recently issued accounting standards, refer to Note 2 to our Consolidated Financial Statements appearing elsewhere in this prospectus.

Net cash used in operating activities consists of net income adjusted for certain non-cash items and changes in assets and liabilities. Net cash used in operating activities was $1,216,000 for the twelve months ended December 31, 2024.42

Investing Activities

Net cash used in investing activities was $131,000 for the twelve months ended December 31, 2024.

Financing Activities

Net cash provided by financing activities was $2,514,000 for the for the twelve months ended December 31, 2024.

BUSINESS

~~Company Overview~~ History

~~Currently,~~T3 Defense Inc. (formerly known as Nukkleus Inc.) (the “Company” or “T3”) was formed on May 24, ~~through~~2019 under the name ~~its~~Brilliant ~~US-based~~Acquisition ~~subsidiary,~~Corporation isfor ~~engaged~~the purpose of engaging in a business combination. On June 23, 2023, Brilliant Acquisition Corporation, a British Virgin Islands company (prior to the ~~distribution~~Merger “Brilliant”, and following the Merger, a Delaware corporation “Nukkleus”), entered into an Amended and Restated Agreement and Plan of ~~drones’~~Merger ~~payloads~~(as inamended by the ~~defense~~First ~~and~~Amendment ~~homeland~~to ~~security~~the ~~markets~~Amended ~~within~~and Restated Agreement and Plan of Merger on November 1, 2023, the ~~US.~~“Merger InAgreement”), ~~addition~~by and among Brilliant BRIL Merger Sub, ~~through~~Inc., ~~its~~a ~~Israeli~~Delaware corporation and wholly-owned subsidiary of Brilliant (“Merger Sub”), weand ~~are~~Nukkleus ~~engaged~~Inc., a Delaware corporation (“Old Nukk”). Old Nukk (f/k/a Compliance & Risk Management Solutions Inc.) was formed on July 29, 2013 in ~~providing~~the ~~services~~State toof ~~support~~Delaware ~~civil~~as a for-profit company and ~~defense~~established ~~aviation~~a ~~needs~~fiscal year end of September 30. The Merger Agreement provided that, among other things, at the ~~including~~closing ~~MRO~~(the ~~services~~“Closing”) of the transactions contemplated by the Merger Agreement, ~~aircraft~~Merger ~~modernization~~Sub merged with and into Old Nukk (the “Merger”), ~~resale~~with Old Nukk surviving as a wholly-owned subsidiary of Brilliant. In connection with the Merger, Brilliant changed its name to “Nukkleus Inc.” (“Nukkleus” or “Combined Company”). The Merger and ~~leasing,~~other ~~which~~transactions contemplated ~~includes~~by the ~~deployment~~Merger ofAgreement are hereinafter referred to as the ~~de-icing~~“Business ~~technology~~Combination.” ~~for~~In ~~commercial~~connection with the Business ~~aircrafts~~Combination, Brilliant changed its name to “Nukkleus Inc.” The Business Combination was completed on December 22, 2023.

~~Previously~~As a result of Business Combination, we ~~were~~became a financial technology company ~~that~~with ~~was~~the ~~focused~~aim onof providing ~~software,~~blockchain-enabled technology solutions,. From ~~customer~~the ~~sales~~consummation ~~and~~of ~~marketing,~~the ~~and~~Business ~~risk~~Combination until the change of management in September 2024, we operated in the technology business ~~hardware~~as a full-service transactions technology and ~~software~~advisory ~~solutions~~business ~~packages~~providing ~~for~~end-to-end ~~the~~transactions ~~worldwide~~technology ~~retail~~solutions. FXWe ~~trading~~offered ~~industry~~an advanced transactions platform for dealing and ~~payment~~risk ~~services~~management ~~from~~with ~~one~~global ~~fiat~~liquidity ~~currency~~and tocustomizable ~~another~~leverage, where users have control orover toquote ~~digital~~and ~~assets~~liquidity strategies.

~~On January 12~~Historically, the ~~2026~~Company, wethrough ~~closed our~~its ~~acquisition~~wholly ofowned ~~100%~~subsidiary, ofprovided ~~the~~software ~~issued~~ and ~~outstanding~~technology ~~capital~~solutions ~~stock~~for ~~of Star 26 pursuant to~~ the ~~terms~~worldwide ofretail ~~the~~foreign ~~Purchase Agreement, by and~~exchange ~~among~~trading ~~the~~industry. The Company,’s ~~Star~~primary ~~26,~~customer ~~the~~was ~~shareholders~~Triton ofCapital ~~Star~~Markets ~~26,~~Ltd. ~~and~~(“TCM”) ~~Menachem~~(formerly ~~Shalom,~~known as ~~representative~~FXDD ~~of the shareholders of Star 26~~Malta Limited). AsEmil aAssentato, ~~result of~~ the ~~Acquisition,~~former ~~Star~~CEO 26and ~~became~~ a ~~wholly-owned~~former ~~subsidiary~~director of the Company., ~~The~~is ~~transaction~~also ~~was approved by~~ the ~~stockholders~~majority member of ~~the~~Max ~~Company on~~Q ~~December~~Investments 16LLC (“Max Q”), ~~2025~~which ~~and~~is ~~confirmed~~managed by ~~Nasdaq~~Derivative onMarketing ~~January~~Associates 9,Inc. ~~2026~~(“DMA”). ~~Pursuant~~Mr. toAssentato ~~the~~is ~~terms of~~ the ~~Purchase~~sole ~~Agreement,~~owner ~~the~~and ~~aggregate consideration~~manager ~~paid~~of byDMA. ~~the~~Max ~~Company~~Q ~~consisted~~owns 79% of: ~~(i)~~Currency ~~$16~~Mountain Malta LLC,~~000,000,~~ which ~~was~~in ~~paid~~turn tois ~~Star~~the 26sole byshareholder ~~the~~of ~~issuance~~TCM. byIn ~~the~~order ~~Company~~to ofdefine the ~~Investment~~services rendered ~~Note;~~to ~~(ii) $500~~TCM,~~000~~ inNukkleus ~~cash~~Limited, ~~representing~~a ~~$5,000,000~~wholly-owned ~~less~~subsidiary ~~$4,500,000~~of ~~previously~~the ~~borrowed~~Company, byentered ~~Star~~into 26a ~~from~~General ~~the~~Services ~~Company;~~Agreement (~~iii~~“GSA”) with ~~4,770,340~~TCM ~~Common~~in ~~Shares; (iv)~~May ~~the~~2016. ~~Warrant~~The toGSA ~~purchase~~provides ~~12,017,648~~that ~~Warrant~~TCM ~~Shares~~will atpay anNukkleus ~~exercise~~Limited ~~price~~a minimum of $1~~.50~~,600,000 per ~~share,~~month. ~~exercisable~~Due ~~for~~to anon-payment ~~period~~by ~~of five years~~TCM ~~from~~under the ~~Closing~~GSA, ~~Date; (v)~~ the ~~Six-Month~~Company ~~Note~~advised inTCM that the ~~principal~~GSA ~~amount~~has ofbeen ~~$3,000,000,~~terminated. ~~which~~The ~~accrues~~Company ~~interest~~has athistorically ~~the~~generated ~~rate~~substantially ofmost ~~8% per annum~~of ~~and~~its ~~matures~~revenue onthrough ~~July~~the ~~12,~~services ~~2026;~~rendered ~~and~~under ~~(vi)~~ the ~~Three-Month~~GSA. ~~Note~~On inSeptember 30, 2024, the ~~principal~~Company, ~~amount~~TCM ofand ~~$3,000,000~~FXDirectDealer ~~(the~~LLC (“~~Three-Month Note~~FXDD”), ~~which~~entered ~~matures~~into ona ~~April~~Release ~~12,~~Agreement ~~2026.~~pursuant ~~The~~to ~~Common~~which ~~Shares,~~ the ~~Warrant,~~parties ~~the~~confirmed ~~Six-Month~~that ~~Note~~the ~~and~~GSA between the ~~Three-Month~~Company ~~Note~~and ~~were~~TCM ~~subsequently~~and ~~assigned by~~the ~~Star~~General 26Services Agreement todated ~~the~~May ~~Selling~~24, ~~Stockholders~~2016, ~~pro~~as ~~ratably~~amended ~~based~~(“FXDD onGSA”) ~~their~~between ~~equity~~the ~~ownership~~Company inand ~~Star~~FXDD ~~26.~~were Interminated ~~connection~~effective ~~with~~January ~~the Acquisition~~1, ~~the~~2024. ~~Company~~The ~~cancelled~~parties ~~certain~~further ~~promissory~~confirmed ~~notes~~that ~~previously~~there ~~issued~~are byno ~~Star~~obligations 26or toliabilities ~~the~~outstanding ~~Company~~or inowed between the ~~aggregate~~parties ~~principal~~as ~~amount~~ of $4September 30,~~500,000.~~ ~~The~~2024, ~~cancellation~~and ofeach ~~said~~party ~~indebtedness~~released ~~was~~and ~~applied~~forever asdischarged athe ~~credit~~other ~~against~~party ~~the~~from ~~cash~~any ~~consideration~~and ~~otherwise~~all ~~payable~~claims, todemands, ~~Star~~damages, 26actions, atcauses ~~the~~of ~~closing~~action, or suits of ~~the~~any ~~Acquisition.~~kind ~~The~~or ~~cash~~nature ~~portion~~whatsoever, ofboth ~~the~~known ~~purchase~~and ~~price~~unknown, ~~payable~~which athave ~~closing~~arisen ~~was~~or ~~funded~~may arise from the ~~Company’s~~GSA ~~available~~or ~~cash~~the onFXDD ~~hand~~GSA.

~~Star~~The Company ~~currently~~historically ~~holds~~operated its blockchain payment solutions through Digital RFQ Limited (1“DRFQ”), ~~100%~~a wholly owned subsidiary of ~~Rimon,~~Match anFinancial ~~Israeli~~Ltd. ~~corporation~~(“Match”), ~~engaged~~a aswholly ~~distributor~~owned subsidiary of ~~military-grade~~the ~~generators~~Company. On November 8, ~~masts~~2024, the Company entered into a Settlement Agreement and ~~lighting~~Release ~~systems~~with Jamal Khurshid and Match providing that isMatch agreed to sell DRFQ, ~~among~~to ~~other~~Mr. Khurshid or his nominee ~~clients,~~subject ato ~~supplier~~the ofCompany ~~generators~~obtaining ~~for~~shareholder approval (the “~~Iron~~Settlement ~~Dome~~Agreement”). ~~launchers~~As required by the Settlement Agreement, the ~~(2)~~Company, ~~67%~~Match ofand ~~Water~~Mr.IO ~~Ltd.~~Khurshid entered into a Share Purchase Agreement dated December 27, an2024 ~~Israeli~~providing ~~corporation~~that ~~engaged~~the inCompany, ~~smart~~subject ~~hydration~~to ~~technology,~~it ~~and~~obtaining ~~(3)~~shareholder aapproval, ~~convertible~~will ~~loan~~sell ~~issued~~DRFQ byto IMr.~~T.S.~~ ~~Industrial~~Khurshid ~~Techno-logic~~in ~~Solutions~~consideration ~~Ltd.~~of £1,000. anThe ~~Israeli~~Company ~~corporation~~believed ~~which~~the sale ~~designs,~~of ~~develops~~DRFQ ~~and~~was ~~manufactures~~in ~~fully~~the ~~integrated~~best ~~electro-mechanical~~interest ~~machines,~~of ~~assembly~~the ~~lines~~Company ~~and~~due ~~custom~~to ~~motion~~continuing ~~systems~~net loss generated by DRFQ.

IfAs of August 2025, ~~for~~the Company determined that it no longer had a ~~period~~controlling financial interest in Digital RFQ due to loss of 12access ~~months~~to ~~after~~financial ~~the~~records. ~~closing~~Accordingly, the ~~Common~~Company ~~Stock~~deconsolidated isDRFQ ~~delisted~~during ~~from~~the ~~Nasdaq,~~third ~~Star~~quarter 26of ~~shall~~fiscal ~~have~~year ~~the~~2025. ~~right,~~The atCompany ~~its~~was ~~own~~notified that ~~discretion~~on July 29, to2025, ~~require~~Match ~~the~~was ~~Company to~~placed ~~exchange~~into administration in the ~~Investment~~United ~~Note~~Kingdom ~~for~~pursuant ~~all~~to the ~~shares~~Insolvency ofAct ~~Star~~1986 26resulting ~~then~~in ~~held~~the appointment byof two administrators (the ~~Company,~~“Administrators”). ~~provided,~~The ~~however,~~Administrators ~~Star~~completed 26a ~~shall~~pre-packaged ~~retain~~sale ~~any~~of ~~cash~~Match’s ~~payments~~entire ~~made~~shareholding byin ~~the~~DRFQ ~~Company~~ to ~~Star~~Match 26Financial ~~and~~Holdings ~~the~~Limited, ~~Company~~a ~~shall~~newly ~~retain~~formed anentity ~~equity~~owned ~~interest~~by inMr. ~~Star~~Khurshid, 26for ~~equivalent~~nominal toconsideration of ~~all cash payments~~£102,000.

~~Background~~43

~~The Company was formed on~~T3 ~~May~~Defense 24, 2019. The Company was formed for the purpose of acquiring, engaging in a share exchange, share reconstruction and amalgamation with, purchasing all or substantially all of the assets of, entering into contractual arrangements with, or engaging in any other similar business combination with one or more businesses or entities. on June 23, 2023, Brilliant entered into the Merger Agreement by and among Merger Sub and Old Nukk. Old Nukk (f/k/a Compliance & Risk Management Solutions Inc.) was formed on July 29, 2013 in the State of Delaware as a for-profit Company and established a fiscal year end of September 30. The Merger Agreement provided that, among other things, at the closing of the transactions contemplated by the Merger Agreement, Merger Sub merged with and into Old Nukk, with Old Nukk surviving as a wholly-owned subsidiary of Brilliant.Overview

57Following the appointment in September 2024 of Menachem Shalom, our current chief executive officer and a director, we have transformed from a financial technology services provider into a strategic acquirer and operator of aerospace and defense (A&D) businesses. We are building a portfolio of mission-critical suppliers and advanced technology companies and strategic infrastructure opportunities across the defense, aerospace, and advanced manufacturing sectors across the United States, Israel and Europe.

The Merger closed on December 22, 2023. In connection with the Merger, Brilliant changed its name to “Nukkleus Inc.”

Effective February 9, 2026, the Company changed its name to “T3 Defense Inc.”

Historically, the Company, through its wholly owned subsidiary, provided software and technology solutions for the worldwide retail foreign exchange trading industry. The Company’s primary customer was TCM (formerly known as FXDD Malta Limited). Emil Assentato, the former CEO and a former director of the Company, is also the majority member of Max Q, which is managed by DMA. Mr. Assentato is the sole owner and manager of DMA. Max Q owns 79% of Currency Mountain Malta LLC, which in turn is the sole shareholder of TCM. In order to define the services rendered to TCM, Nukkleus Limited, a wholly-owned subsidiary of the Company, entered into a General Services Agreement with TCM in May 2016. The GSA provided that TCM would pay Nukkleus Limited a minimum of $1,600,000 per month. On September 30, 2024, the Company, TCM and FXDD entered into a Release Agreement pursuant to which the parties confirmed that the GSA between the Company and TCM and the FXDD GSA between the Company and FDDD were terminated effective January 1, 2024. The parties further confirmed that there were no obligations or liabilities outstanding or owed between the parties as of September 30, 2024 and each party released and forever discharged the other party from any and all claims, demands, damages, actions, causes of action, or suits of any kind or nature whatsoever, both known and unknown, which have arisen or may arise from the GSA or the FXDD GSA.

The Company has historically operated its blockchain payment solutions through DRFQ, a wholly owned subsidiary of Match”, a wholly owned subsidiary of the Company. On November 8, 2024, the Company entered into the Settlement Agreement with Jamal Khurshid and Match providing that Match agreed to sell DRFQ to Mr. Khurshid or his nominee subject to the Company obtaining shareholder approval. As required by the Settlement Agreement, the Company, Match and Mr. Khurshid entered into a Share Purchase Agreement dated December 27, 2024 providing that the Company, subject to it obtaining shareholder approval, will sell DRFQ to Mr. Khurshid in consideration of £1,000. The Company believes the sale of DRFQ was in the best interest of the Company due to continuing net loss generated by DRFQ and the Company’s desire to focus on the defense sector.

As of August 2025, the Company determined that it no longer had a controlling financial interest in Digital RFQ due to loss of access to financial records. Accordingly, the Company deconsolidated DRFQ during the third quarter of fiscal year 2025. The Company was notified that on July 29, 2025, Match was placed into administration in the United Kingdom pursuant to the Insolvency Act 1986 resulting in the appointment of two Administrators. The Administrators completed a pre-packaged sale of Match’s entire shareholding in DRFQ to Match Financial Holdings Limited, a newly formed entity owned by Mr. Khurshid, for nominal consideration of £102,000.

Following the appointment in September 2024 of Menachem Shalom, our current chief executive officer and a director, we have transformed from a financial technology services provider into a strategic acquirer and operator of aerospace and defense (A&D) businesses. We are building a portfolio of mission-critical suppliers and advanced technology companies and strategic infrastructure opportunities across the defense, aerospace, and advanced manufacturing sectors across the United States, Israel, and Europe.

~~Our~~The chart ~~Current~~below ~~Portfolio~~shows the current ownership and ~~Pipeline~~names of our portfolio companies:

~~Defense and Aerospace Technology Acquisitions Pending Closing:~~44

●Our Current ~~Star 26 Capital Inc. - Defense technology holding company that owns B. Rimon Agencies Ltd., an Israeli supplier of generators for “iron dome” launchers and defense systems.~~Portfolio:

~~● Tiltan Software Engineering Ltd. - Israeli AI software company specializing in defense~~ Defense and ~~aerospace~~Aerospace ~~applications~~Technology ~~including GPS-denied navigation, 3D mapping, simulation systems, and AI training platforms.~~Acquisitions:

58● Star 26 Capital Inc. - Defense technology holding company that owns B. Rimon Agencies Ltd., an Israeli supplier of generators for “iron dome” launchers and defense systems. [closed January 12, 2026]

	●	Tiltan Software Engineering Ltd. - Israeli AI software company specializing in defense and aerospace applications including GPS-denied navigation, 3D mapping, simulation systems, and AI training platforms. [closed December 30, 2025]

	●	Nimbus Drones Technologies and Marketing Ltd. – Israeli company specializing in unmanned arial systems and services. [closed January 15, 2026]

	●	I.T.S. Industrial Tecno-logic Solutions Ltd.– Israeli company providing design, development, production and manufacturing of serial, fully integrated electro-mechanical machines and sophisticated assembly lines. [closed February 16, 2026]

	●	Positech Ltd., wholly owned subsidiary of I.T.S. – designs and manufactures top-of-the line, high performance motion control systems for military and civilian use.

Technology Distribution and Licensing:

● Blade Ranger Ltd. (Exclusive U.S. Distribution rights) - Distribution agreement for advanced drone payload systems for defense and homeland security markets, with minimum commitments of 30 payloads over three years. [August 25, 2026]

● Mandragola Aviation Joint Venture (51% ownership) - Strategic joint venture to establish aviation and defense infrastructure in the Baltics and Israel, including NATO-compliant logistics hubs, MRO (maintenance, repair and operations) facilities, and aircraft modernization capabilities. [August 29, 2026]

~~Nimbus~~Star 26 ~~Acquisition~~Capital Inc.

~~On January 15, 2026, the Company~~Acquisition ~~consummated its acquisition~~ of 100% of ~~Nimbus~~Star Drones Technologies and Marketing Ltd., an Israeli private company specializing in professional unmanned aerial systems and services. See “Prospectus Summary – Recent Developments – Nimbus Acquisition.”26

~~Tiltan~~On December ~~Acquisition~~15, 2024, the Company entered into the Securities Purchase Agreement and Call Option with Star 26 Capital, Inc., a Nevada corporation (“Star”), the shareholders of Star and Menachem Shalom, as representative of the shareholders, which was subsequently amended on each of February 11, 2025, May 13, 2025, June 15, 2025 and July 25, 2025. Said agreement, as amended, provided that we would acquire 51% of Star and the Star shareholders would grant the Company an option to purchase the balance of the equity. Mr. Shalom, who is the Chief Executive Officer and a director of the Company, is a controlling shareholder, Chief Executive Officer and a director of Star.

On September ~~December 30~~15, 2025, the ~~Company~~parties ~~consummated~~executed ~~its~~and delivered the Amended and Restated Securities Purchase Agreement (the “Star Agreement”) ~~acquisition~~with Star, the Star shareholders and Menachem Shalom, the representative of ~~all~~such shareholders, to provide that at closing the Company will acquire 100% of the issued and outstanding capital of Star in consideration of (i) $21,000,000, to be paid by a 12-month $16,000,000 promissory note (the “Investment Note”) and the balance in $5,000,000 cash, less any amounts lent to Star from the Company since December 15, 2024, the date of the original purchase agreement, (ii) 4,770,340 shares of ~~Tiltan~~common ~~Software~~stock ~~Engineering~~of ~~Ltd.~~the ~~See~~Company (the “~~Prospectus~~Shares”), (iii) ~~Summary~~a –five-year ~~Recent~~warrant (the “Star Warrant”) to purchase an aggregate of 12,017,648 shares of the Company’s common ~~Developments~~stock –for ~~Tiltan~~an ~~Acquisition~~exercise price of $1.”50 per share, (iv) $3,000,000 in cash and (v) a 6-month promissory note in the principal amount of $3,000,000, which shall accrue interest at the rate of 8%. The Shares, Star Warrant, cash and the 6-month note will be assigned by Star to the Star shareholders pro ratably. If, for a period of 12 months after the closing, the Common Stock is delisted from Nasdaq, Star shall have the right, at its own discretion, to require the Company to exchange the Investment Note for all the shares of Star then held by the Company, provided, however, Star shall retain any cash payments made by the Company to Star and the Company shall retain an equity interest in Star equivalent to all cash payments made.

~~September 2025 Equity Line of Credit~~45

~~On September 19, 2025, the~~The ~~Company~~closing ~~and~~of the ~~ELOC~~transaction ~~Investor,~~was ~~entered into the ELOC Purchase Agreement, which provides that~~ subject to ~~the~~customary ~~terms~~closing ~~and~~ conditions ~~set forth therein~~, ~~the~~including ~~Company~~approval ~~may~~by ~~sell to~~ the ~~ELOC~~Company’s ~~Investor~~shareholders upas ~~to the lesser of (i) $250,000,000 of ELOC Common Shares and (ii) the number of shares~~required ofunder ~~Common~~applicable ~~Stock~~Nasdaq ~~(including~~listing ~~the Commitment Shares) which equals 19~~rules.~~99%~~ ofAs ~~the~~a ~~Common~~result ~~Stock outstanding immediately prior to the execution~~ of the ~~ELOC~~above ~~Purchase~~transaction, ~~Agreement (subject to certain exceptions provided in~~ the ~~ELOC~~Shares ~~Purchase~~issued ~~Agreement), from time~~ to ~~time~~Star ~~during~~and ~~the~~assigned ~~term of the ELOC Purchase Agreement. Upon entering into the ELOC Purchase Agreement, the Company agreed~~ to ~~issue to~~ the ~~ELOC~~Star ~~Investor $1,250,000~~shareholders ~~worth~~represented of16.4% ~~Commitment Shares, determined by the lower~~ of the ~~(i)~~issued ~~the~~and ~~VWAP~~outstanding onshares ~~the effective date~~ of ~~the registration statement covering the ELOC~~ Common ~~Shares~~Stock, and ~~the~~assuming ~~Commitment Shares and (ii)~~ the ~~closing~~Star ~~sale~~shareholders ~~price~~exercise on the ~~effective~~Star ~~date of said registration statement; provided~~Warrant, ~~however, that if~~ the ~~Company~~Star ~~elects~~shareholders towould ~~terminate~~hold ~~the~~an ~~ELOC~~aggregate ~~Purchase~~of ~~Agreement~~16,787,988 ~~the~~shares ~~Commitment Shares’ calculation shall be based on the date~~ of ~~termination rather than the effective date of the registration statement. The ELOC~~ Common ~~Shares~~Stock ~~purchased~~representing ~~pursuant to the ELOC Purchase Agreement will be purchased from time to time at a price equal to a discounted price of 97~~57.56% of the ~~lower~~issued ~~of:~~and ~~(i)~~outstanding ~~the~~shares ~~lowest~~of ~~daily~~Common ~~VWAP~~Stock of ~~any trading day during~~ the ~~three trading days preceding the date on which the~~ Company ~~submits~~as ~~a draw down notice; and (ii) the closing sale price~~ of the ~~Common Stock on the applicable VWAP purchase~~ date. ~~The maximum amount~~ of ~~any VWAP purchase shall not exceed 20% of~~ the ~~trading volume in the Common Stock on the Nasdaq Stock Market on the applicable purchase date~~closing.

~~September~~On January 12, 2026, the Company completed the acquisition of Star. As a result of the acquisition, Star 26 became a wholly owned subsidiary of the Company. The transaction was approved by the Company’s shareholders on December 16, 2025 ~~Private~~and ~~Placement~~confirmed by the Nasdaq Stock Market on January 9, 2026.

OnThe ~~September~~financial ~~4, 2025, we entered~~statements ~~into the Securities Purchase Agreement with certain accredited investors, pursuant to which the investors agreed to purchase from the Company 200 units for an aggregate purchase price~~ of ~~$10~~Star,~~000,000,~~ orincluding aits ~~per~~wholly-owned ~~unit~~subsidiary price of $50,000, with each unit consisting of (i) one restricted share of Series A Preferred Stock and (ii) restricted Common Warrants to initially purchase up to 15,957 shares of Common Stock, subject to adjustment and exchange as described hereinB. ~~Each~~Rimon ~~share~~Agencies ~~of Series A Preferred Stock has a Stated Value of $50~~Ltd.,~~000~~ and ~~is convertible into a number of shares of Common Stock (or pre-funded warrants in lieu thereof) equal to~~ the ~~Stated~~requisite ~~Value~~pro ~~divided~~forma byfinancial ~~the~~statements ~~Initial~~were ~~Conversion~~included ~~Price.~~in ~~Upon~~ the ~~Company~~proxy ~~obtaining~~statement ~~stockholder~~regarding ~~approval of~~ the ~~transactions~~special ~~contemplated~~stockholders’ bymeeting ~~the~~with ~~Securities~~respect ~~Purchase Agreement and the related agreements at the Special Meeting, the Initial Conversion Price was adjusted from $4.89 per share~~ to the ~~lower~~acquisition of ~~(i)~~Star ~~$4.72~~by ~~per~~T3 ~~share and (ii) the price per share upon the earlier of (A) effectiveness of the registration statement of~~ which ~~this~~was ~~prospectus is a part or~~filed ~~(B)~~with ~~upon applicability of Rule 144 as it relates to~~ the ~~sale~~SEC ofon ~~the~~September ~~Conversion Shares. The Initial Conversion Price is subject to further adjustment upon stock splits~~30, ~~distributions,~~2025 ~~reorganizations, reclassifications, change of control~~ and the ~~like,~~registration ~~and~~statement ison ~~also~~Form ~~subject to price~~S-~~based~~1 ~~anti-dilution~~which ~~adjustments~~was ~~for~~filed ~~subsequent~~with ~~offerings made by~~ the ~~Company~~SEC ~~while~~on ~~the~~February ~~Series~~11, A2025 ~~Preferred Stock remains outstanding~~ (~~subject to certain exempt issuances)~~registration no. ~~Assuming an Initial Conversion Price of $4.72 per share, each share of Series A Preferred Stock is convertible into 10,593 shares of Common Stock (or pre~~333-~~funded warrants in lieu thereof~~293384).

59Star Business Description

~~The~~Star is ~~Common~~an ~~Warrants~~acquisition ~~are~~holding ~~immediately exercisable~~company focused on alocating ~~cash~~undervalued ~~basis~~and orundercapitalized ~~exchangeable~~companies, onprimarily ain ~~cashless~~the ~~basis~~defense, industrial machinery and ~~will~~application, ~~expire~~manufacturing, ~~five~~transportation, ~~(5)~~information ~~years~~technology, ~~from~~and aerospace industries, and providing them capitalization and leadership to maximize their value and the ~~date~~potential of ~~issuance.~~their ~~Each~~private ~~Common Warrant~~enterprises ~~will~~while bealso ~~initially~~promoting ~~exercisable~~diversification and risk mitigation for ~~one~~our ~~share~~stockholders. ofOur ~~Common~~acquisition ~~Stock~~strategy atfocuses anon ~~Initial~~small ~~Exercise~~and ~~Price~~medium businesses, which we characterize as those that have an enterprise value of less than $5200 million, in a variety of different industries, with a preference for multinational businesses.~~405~~ ~~per~~To ~~share~~date, ~~subject~~we tohave completed ~~adjustment~~a single acquisition of a defense technology company. Star has not identified any specific business as a target for its next ~~The~~acquisition, ~~September~~and ~~2025~~it ~~Private~~has ~~Placement~~not ~~closed~~entered into any letters of intent, nor has anyone on ~~September~~its 9behalf, ~~2025~~initiated any substantive acquisition discussions, directly or indirectly, with any such target.

~~Pursuant~~Star completed toits ~~the~~first ~~Securities Purchase~~acquisition ~~Agreement~~on February 15, 2024, in connection with our operating subsidiary in the ~~Company~~Israeli ~~was~~defense ~~required~~industry, toB. Rimon ~~seek~~Agencies ~~stockholder~~Ltd. ~~approval~~Rimon ~~related~~is toa ~~certain~~defense ~~provisions~~technology ~~contained~~company and has been in business since 1992 serving the ~~Certificate~~country of Israel and acting ~~Designation~~as ofan ~~the~~exclusive ~~Series~~distributor Ain ~~Preferred~~Israel ~~Stock.~~of Ontier-1 ~~December~~generators, 16masts, ~~2025~~and lighting solutions, ~~the~~as ~~Company~~well ~~such~~as ~~stockholder~~a ~~approval~~wide range of defense, homeland security and commercial systems.

The Company ~~has~~seeks ~~also~~to ~~granted the~~acquire ~~investors~~controlling ainterests ~~right~~in ofsmall ~~participation~~and medium businesses that it believes operate in ~~subsequent~~industries ~~financings~~with oflong-term ~~the~~growth opportunities, ~~Company~~which ~~for~~continue ato ~~period~~have ofpositive ~~time~~and ~~following~~stable ~~closing~~earnings and cash flows, ~~subject~~face tominimal ~~certain exempt~~threats ~~issuances~~from technological or competitive obsolescence, and ~~the~~have ~~Company~~strong ~~has~~management ~~agreed~~teams ~~not~~largely toin ~~issue~~place. ~~securities~~Star’s ~~for~~mission ais ~~period~~to ofmake ~~time~~these ~~following~~businesses ~~the~~its ~~closing~~majority-owned subsidiaries ofand ~~the~~actively ~~September~~manage ~~2025 Private~~and ~~Placement,~~grow ~~subject~~such businesses. Star expects to ~~certain~~improve ~~exempt~~its ~~issuances,~~business ~~including~~over ~~issuances~~the ~~pursuant~~long toterm ~~strategic~~through ~~transactions~~organic growth opportunities, add-on acquisitions, and operational improvements.

~~In connection with the September~~Star ~~2025~~currently ~~Private~~holds ~~Placement,~~(1) ~~the~~100% ~~Company and the Purchasers entered into the Registration Rights Agreement. Pursuant to the terms~~ of ~~the Registration Rights Agreement~~Rimon, ~~the~~an ~~Company~~Israeli iscorporation ~~required~~engaged toas ~~register~~distributor ~~the resale~~ of ~~the Conversion Shares (and any shares underlying the Pre~~military-~~Funded~~grade ~~Warrants~~generators, if ~~any)~~masts and ~~the~~lighting ~~Warrant Shares. The Company is required to prepare and file the Initial Registration Statement with the Securities and~~systems ~~Exchange Commission within 30 days of the date of the Securities Purchase Agreement~~ and tothat use commercially reasonable efforts to have the Initial Registration Statement declared effective within 45 days of the date of the Securities Purchase Agreement or 75 days in the event of a full review. In certain circumstances includingis, ~~but~~among ~~not~~other ~~limited to~~clients, ifa ~~the~~supplier ~~Company misses the Filing Deadline or the Effectiveness Deadline, then the Company will be required to pay to the Purchasers an amount in shares~~ of ~~Common~~generators ~~Stock~~for or“Iron ~~cash,~~Dome” ~~at the Company’s discretion~~launchers, as(2) ~~partial~~67% ~~liquidated damages and not as a penalty, equal to the product~~ of 1Water.5%IO ~~multiplied by the aggregate purchase price paid by such Purchaser~~Ltd. ~~Liquidated damages~~, ifan ~~any,~~Israeli corporation ~~will~~listed ~~accrue and be paid~~ on the ~~earlier~~Tel ofAviv ~~the effective date of a resale registration statement registering the sale of the shares of Common~~ Stock ~~that~~Exchange ~~may~~engaged ~~be issued~~ in ~~lieu~~smart ofhydration ~~cash~~technology, orand ~~the~~(3) ~~date~~51% oninterest ~~which~~in ~~such~~I.T.S. ~~shares~~Industrial ~~can be~~Techno-logic ~~sold~~Solutions ~~pursuant to Rule 144~~Ltd., Ifan ~~the~~Israeli ~~Company~~corporation ~~elects~~which todesigns, ~~pay~~develops ~~liquidated~~and ~~damages~~manufactures infully ~~shares~~integrated ofelectro-mechanical ~~Common Stock~~machines, ~~the number of shares of Common Stock~~assembly ~~issuable~~lines toand ~~the~~custom ~~Purchaser~~motion ~~will~~systems. beUntil ~~determined~~April by10, ~~dividing~~2026, ~~the~~Water.IO ~~aggregate~~owned ~~amount~~100% of ~~accrued~~ZorroNet ~~liquidated~~Ltd., ~~damages~~an byIsraeli ~~the~~corporation ~~closing~~specializing ~~price~~in of the ~~Common~~development ~~Stock~~and ondeployment ~~the trading market~~ of ~~the~~artificial ~~Common~~intelligence ~~Stock~~systems onfor ~~the~~perimeter ~~day~~security, ~~immediately~~defense, ~~prior~~monitoring toand ~~the~~command ~~Registration~~and ~~Date~~control applications.

In connection with the September 2025 Private Placement, the Company entered into a Placement Agency Agreement, dated September 4, 2025, with DJS, pursuant to which DJS acted as the sole placement agent for the September 2025 Private Placement. In consideration for the foregoing, the Company has agreed to pay customary placement fees to DJS, including a cash fee equal to 7.0% of the gross proceeds raised in the September 2025 Private Placement and a cash fee equal to 4.0% on all cash proceeds received by the Company from the exercise of the Common Warrants, and has also agreed to reimburse certain expenses of DJS incurred in connection with the September 2025 Private Placement.

Mandragola Joint Venture

On August 28, 2025, the Company, Nukk Picolo and Mandragola entered into the JV Agreement. Pursuant to the terms of the JV Agreement, the parties will establish a joint venture company in Israel which is intended to establish advanced manufacturing zones in both the Baltics and Israel, designed to support civil and defense aviation needs. Plans also include the development of a NATO-compliant logistics hub in Riga in cooperation with additional regional partners, as well as facilities dedicated to licensed MRO services, aircraft modernization, resale, and leasing, including the deployment of the de-icing technology for commercial aircrafts which T3 Defense recently licensed (on an exclusive basis) from Blade Ranger Ltd. Pursuant to the JV Agreement, Nukk Picolo will hold 51% equity interest in the JV Company. The JV Agreement provides that, under certain specified conditions, T3 Defense can require Mandragola sell to T3 Defense its participating interest in the JV Company in consideration for the issuance of the Company’s common stock based on the then specified valuation of JV Company as set forth in the JV Agreement. Under the JV Agreement, Mandragola has undertaken to provide to the JV Company a 24 month committed credit line of up to $1.5 million on an as needed basis. Nukk Picolo has the right to designate three of the five member board of the JV Company with Mandragola designating the remaining two directors. Under the JV Agreement, T3 Defense will issue to Mandragola 310,000 restricted shares of the Company’s common stock. In addition, T3 Defense will issue to Mandragola (i) five year warrants to purchase 250,000 shares of the Company’s common stock at a per share exercise price of $4.00 and (ii) five year warrants for an additional 350,000 shares at a per share exercise price of $6.50. The Performance Warrants only vest upon the JV Company achieving $25 million cumulative revenue. If the revenues targets are not achieved by the JV Company within the five-year period, the Performance Warrants expire.

Blade Ranger Distribution Agreement

On August 20, 2025, the Company entered into an Exclusive Distribution Agreement with Blade Ranger Ltd., an Israeli public company specializing in development of drone payloads. Pursuant to the Agreement, Blade Ranger granted T3 Defense exclusive distribution rights for defense and homeland security sector in the United States for its proprietary product - a unique drone payload that can be used by military forces and homeland security organizations. T3 Defense shall pay Blade Ranger $100,000 for the exclusive U.S. rights, with the first payment is to be made by the end of November 2025, and equal payments are due at the end of the next three consecutive quarters. The Company committed to purchase 5 units in Year 1, 10 units in Year 2, and 15 units in Year 3. Upon meeting these targets, the Agreement extends for an additional five years with a 20 unit annual commitment. If T3 Defense achieves 125% of revenue targets in any year, it will receive an 8% credit on annual purchases.

Darwin Labs Warrants

On July 30, 2025, the Company entered into a warrant agreement with Darwin, enabling the Company to acquire up to 200 million Darwin tokens, a new class of self-evolving AI network tokens developed by Darwin. Darwin is a self-training and evolving AI that can be used to test and simulate multiple scenarios in finance, healthcare and defense. This software aims to allow companies to run scenarios and find the best configuration for financial services, drugs, defense-related software and more. The Company has identified the potential in such AI software and decided to enter into this warrant agreement for Darwin tokens, which will allow the Company and the Company’s future subsidiaries to use this platform. As of December 15, 2025, the Company owns 100 million Darwin tokens.

Strategic Transformation

Our transformation from financial technology to aerospace and defense represents a strategic repositioning to capture opportunities in rapidly growing defense markets. Key factors driving this transition include:

● Global defense spending reaching $2.4 trillion in 2024 with accelerating growth;

● Increasing demand for autonomous systems, AI-enabled defense solutions, and advanced simulations;

● NATO modernization initiatives creating infrastructure opportunities; and

● Strong synergies between Israeli defense innovation and U.S. market access.

Market Opportunity in Defense and Aerospace

The global defense and aerospace markets present significant growth opportunities:

● The U.S. defense technology market was approximately $76.1 billion in 2022 and is estimated to grow to $184.7 billion by 2027 (15.9% CAGR)

● Israel accounts for 2.3% of global military exports and was the 10th largest defense exporter from 2018-2022

● Increasing geopolitical tensions are driving demand for advanced defense technologies

● NATO modernization initiatives are creating opportunities for infrastructure development

● The shift toward autonomous systems and AI-enabled defense solutions aligns with our technology portfolio

Star Business Overview

Star is an acquisition holding company focused on locating undervalued and undercapitalized companies, primarily in the defense, industrial machinery and application, manufacturing, transportation, information technology, and aerospace industries, and providing them capital and leadership to maximize their value and the potential of their private enterprises while also promoting diversification and risk mitigation for our stockholders. Our acquisition strategy focuses on small and medium businesses, which we characterize as those that have an enterprise value of less than $200 million, in a variety of different industries, with a preference for multinational businesses. To date, we have completed several acquisitions of defense technology companies. This strategy is untested, as Star has completed only one acquisition to date: the acquisition of a 100% interest in Rimon, a defense technology company, which was owned by Menachem Shalom, Star’s controlling stockholder and our Chief Executive Officer.

Star’s Corporate History and Structure

Star was incorporated by its founder, Menachem Shalom, on January 17, 2024, as Star 26 Capital Inc., a Nevada corporation. ~~Mr.~~Billio ~~Shalom owns all of the 6~~Inc.,~~250,000~~ ~~shares~~Star’s ofwholly ~~its~~owned ~~class~~subsidiary, Bis ~~common~~a ~~stock~~Delaware ~~which~~corporation ~~are~~formed ~~issued~~by ~~and outstanding. Although the class B common stock was established to have 100 votes per share of class B common stock,~~ Mr. Shalom ~~converted~~on ~~all~~February ~~his~~12, ~~Class~~2021, ~~B shares~~ to ~~Class~~act Aas ~~shares,~~an ofintermediate ~~which~~holding ~~he owns approximately 55% of the~~company ~~total~~for ~~issued and outstanding share capital of Star~~Rimon.

Zero One Capital LLC, Star’s Manager, is a New York limited liability company formed by Mr. Shalom on January 19, 2024, as a management services company. Zero One became the manager of Star upon the execution of a management services agreement by and between the same on June 28, 2024. The Manager is also the manager of Rimon, Star’s indirect wholly owned subsidiary operating in the defense industry, pursuant to the offsetting management services agreement dated August 12, 2024, by and between Zero One, Rimon, and Star as a third-party beneficiary.46

Billio Inc., Star’s wholly owned subsidiary, is a Delaware corporation formed by Mr. Shalom on February 12, 2021, to act as an intermediate holding company for Rimon.

Star’s Acquisition of Rimon

On February 15, 2024, Star executed an assignment and assumption agreement with Mr. Shalom, pursuant to which Star, through its wholly owned subsidiary, Billio, acquired all of the issued and outstanding capital stock of Rimon. Under the terms of that agreement, Star agreed to assume all of Mr. Shalom’s rights and obligations toward the sellers of Rimon, as outlined in earlier agreements by and between the same, dated December 22, 2023, and February 15, 2024. Additionally, Star agreed to reimburse Mr. Shalom for his out-of-pocket costs related to the acquisition of Rimon, and for operating loans which he made to Rimon thereafter. To do so, Star issued him a demand grid promissory note with an initial principal of $155,405, which increased to $~~511~~280,~~263~~857 by ~~December~~August 3128, 2024, with the initial principal being advanced to cover Mr. Shalom’s out-of-pocket costs, and the increase therein related to the advance for operations. The grid note bears interest at 8% per annum and matures 60 days after the earlier of one year from the issuance date or upon the closing of a private placement or public offering of at least $5,000,000. On February 15, 2025, the parties agreed to extend the term of the Note and change its maturity date to February 15, 2026. As of the date of approval of the financial statements, this loan has been repaid in full.

B. Rimon is ~~Agencies~~an ~~Ltd.~~Israeli corporation engaged as a supplier of generators for “iron dome” launchers and other defense products which business includes the purchase and sale of generators, ~~Star’s~~masts, ~~Israeli~~and lightning products and solutions, which it acquires through exclusive distributorship agreements with key third-party suppliers and the engineering, design, production, integration, and maintenance of special tactical vehicles and trailers, including reconnaissance vehicles, mobile command and control vehicles, firefighting trailers, energy and lighting trailers, and satellite broadcast mobility platforms which are primarily sold to special defense forces, intelligence agencies and the Israeli Defense ~~Business~~Forces.

Star’s defense military technology business is operated by B. Rimon Agencies Ltd., an Israeli limited liability company and our indirect, wholly owned operating subsidiary that it acquired on February 15, 2024.

Rimon is an Israeli corporation engaged as a supplier of generators for “iron dome” launchers and other defense products which business includes the purchase and sale of generators, masts, and lightning products and solutions, which it acquires through exclusive distributorship agreements with key third-party suppliers and the engineering, design, production and integration of special tactical vehicles and trailers, including reconnaissance vehicles, mobile command and control vehicles, firefighting trailers, energy and lighting trailers, and satellite broadcast mobility platforms which are primarily sold to special defense forces, intelligence agencies and the Israeli Defense Forces. Most of these products are sold to defense, security, and military clients in Israel, including Rafeal, the manufacturer of anti-rocket systems like Iron Dome, Israel Aviation Industries and Elbit Systems, two major Israeli defense companies with global reach, the Israeli Ministry of Defense, the Israeli Police, and other security-related entities

The Defense Industry

The primary geographic market focus as of the date hereof is Israel where the majority of its customers are located and operate. Star believes that Israel is a heavyweight in the global defense market, primarily due to its advanced military industries, with the country specifically accounting for 2.3% of global military exports (Observer Research Foundation, the strategic and military-technological significance of Israel). Israel was the 10th largest defense exporter from 2018 to 2022, with the U.S. and United Kingdom being among those customers that implemented Israeli defense systems such as the ‘Trophy’ Active Protection system, which creates a neutralization bubble around military vehicles and rapidly detects, classifies and engages all known chemical energy (CE) threats including recoilless rifles, ATGMs, AT rockets, HEAT tank rounds, and RPGs. Israel has a strong missile defense system and is one of few countries with successful experience in a multi-tiered missile defense system. There have also been multiple sales between Israel and national providers of defense technologies. For example, the U.S. approved the sale of David’s Sling, a complete air defense system designed to defeat the full spectrum of long range air and missile threats, by Israel and the private company Rafael Advanced Defense Systems Ltd., manufacturer of the David’s sling system, to Finland on August 2, 2023, a project that was valued at more than 300 million euros, marking a key development in Israel’s medium-tier missile defense offerings.

Further, the market size for the defense industry was approximately $76.1 billion in the U.S. in 2022 and is estimated to grow to $184.7 billion by 2027. Further, it is estimated that the compound annual growth rate for the defense technology market will be approximately 15.9% from 2022 to 2027 (PitchBook, Emerging Tech Research). It has also been estimated that approximately $135.3 billion was invested in the defense industry from 2016 to 2022. While we do not currently have any United States operations or customers, and do not have any current plans to enter the United States defense industry, we may and intend to do so in the future via directed sales and marketing efforts, or via the acquisition of complimentary United States defense industry businesses.

Water

On June 8, 2025, Star Twenty Six Ltd. (“Star Twenty Six”), a wholly owned subsidiary of Star, entered into an agreement with Water IO Ltd., a company listed on the Tel Aviv Stock Exchange (“Water”) and its controlling shareholders, pursuant to which Star will lend Water NIS 600,000 (14% annual interest, 2-year term) which will be used to pay Water’s payables. Water will record a first-ranking floating charge on all company assets and a first-ranking fixed charge on unissued share capital (36.5M shares). Water is required to hold a shareholders’ meeting in which the shareholders will be requested to approve the transaction, approve Star’s nominees to be serve as Water directors and a reverse split of the company’s shares. Subject to obtaining shareholders’ approval and other closing conditions, Star will further lend Water NIS 700,000 and shall also invest NIS 700,000 as an equity investment. In return for Star fulfilling its obligations, Water will issue Star 72% of Water’s fully diluted share capital. The closing of the transaction is contingent on several conditions, including Star being satisfied with its due diligence of Water, Shareholder and TASE approvals and the registration of the shares to be issued to Star. After the closing of the transaction, Star commits to introducing new business activity into Water worth at least NIS 40M. The legacy business of Water will be transferred to a trustee for liquidation and any proceeds from the Sealed Air litigation in the U.S. will be allocated: 35% to Water and 65% to pre-deal shareholders (pro rata). The litigation will be handled via a trust structure to be approved by shareholders, with the legal costs for Sealed Air case capped at $10,000. If deal is terminated due to Water’s fault or failed due diligence then the first loan increases to NIS 2.1M with 18% annual interest and Star may convert loan to shares (up to 19.9%) at NIS 0.30/share. If terminated for other reasons (e.g., failed shareholder approval) Star can choose repayment or partial share conversion. Water’s assets, revenue and financial activity is not material (less than 20%) of Star’s current assets and revenues.

I.T.S. Industrial Technologic Solutions Ltd.

On June 8, 2025, Star Twenty Six entered into an agreement with I.T.S. Industrial Techno-logic Solutions Ltd. (“ITS”) and its controlling shareholder Gera Eron (“Eron”), pursuant to which Star will lend ITS NIS 10,000,000. In return Star would get 51% of the share capital of ITS on a fully diluted basis. ITS is an Israeli company providing design, development, production, and manufacturing of serial, fully integrated electro-mechanical machines and sophisticated assembly lines. Positech, its wholly-owned subsidiary, designs and manufactures top-of-the-line, high-performance motion control systems for military and civilian use. Positech provides small to middle-series one-stop shop “Build to Spec” & “Build to print” custom-made prototypes and OEM systems in the Mechanical, Electrical, HW, FW, and SW Engineering fields. Pursuant to the terms of the agreement, Star was also granted an option to purchase the remainder 49% of ITS for three years from Eron, the controlling shareholder. Depending on whether the option is exercised in the first, second or third year hereafter, the agreed purchase price for the 49% is 25 million NIS, 30 million NIS or 35 million NIS, respectively. Star was provided 30 days to complete its due diligence in connection with the acquisition of ITS. Moreover, pursuant to the terms of the agreement, ITS has until July 7, 2025 to obtain the consent of its current banks to the agreement. If such confirmation is not received, Star would lend ITS ILS 2,500,000, with subsequent loans to be made in 30-day intervals thereafter. Subject to the completion of Star’s due diligence and to ITS banks’ consent, Star would provide the said loan and, in return, ITS shall issue Star shares equal to 51% of ITS. If the banks do not provide consent to the agreement by July 7th, then the loan is due 12 months after the funds are paid to ITS and no shares shall be issued to the Lender. In such case no further loans are due to ITS.

Star’s Market Opportunity and Growth Strategy

~~Star~~We believe ~~believes~~ there is a significant opportunity for organic growth via the acquisition of small and medium size businesses with an enterprise value of less than $200 million (based on the opinion of our management team and ~~advisory board~~advisors), that may be operating in highly fragmented markets throughout the world, including the U.S. and Israel, which are owned and operated by persons within isolated networks of family offices, entrepreneurs, and intermediaries, each of which with the potential to generate attractive returns for our stockholders and investors. ~~Star’s~~Our core operational principles focus on managing our acquired enterprises to ensure recurring cash flow and lasting terminal value, while fostering long-term sustainability in our investments. To do so, ~~Star~~the Company aims to invest in and/or buy controlling stakes in operating, revenue-generating businesses. Controlling stakes would allow us to lead the companies into operational efficiencies, growth in revenues, improved financial reporting and operational procedures, hire talented employees and managers and increase the overall enterprise value of these companies. Star’s search for future acquisition targets focuses on companies located in the U.S. or Israel, or both, that provide products and or services to large defense and aerospace companies and or governments. Notwithstanding the forgoing, we may target and acquire companies for acquisition that are located outside the U.S. and Israel if such acquisitions fit within our overall acquisition philosophy and strategy.

~~Star~~ We also believe that the economic and market dislocations resulting from the conflict in Israel, as well as other conflicts worldwide, provide an opportunity for companies in the defense industry to see higher-than-average demand for their products and services. Such market conditions, if they persist, would allow us to focus on acquiring profitable businesses in the defense sector, with the opportunity to take advantage of their potential future growth. Within the Israeli defense market in particular, ~~Star~~management expects to see a significant number of businesses struggling to satisfy growing demand for their products and services due to a lack of access to capital and experienced executive level leadership among other factors. ~~Star~~We ~~believes~~believe itwe will be able to provide these needed resources to any Israeli target company that it acquires. It is confident that the expertise of our management team and the relationships that they can bring to an acquisition represent a compelling value proposition for any potential acquisition target looking to add working capital, a pathway to exit, and a solid leadership base, to assist such a company to grow and expand and to be able to take advantage of market opportunities as they arise.

Star’s Acquisition Process and Strategy

~~Star~~T3’s current acquisition strategy involves the acquisition of small and medium size businesses in various industries, with an initial focus on industries associated with the defense sector, including but not limited to industrial machinery and application, manufacturing, transportation, ~~information~~ information technology, and aerospace, that we expect will produce positive, stable earnings, and provide attractive returns on our invested capital. As part of its evaluation of whether it will acquire a particular business, it will perform a comprehensive due diligence review to determine the quality and intrinsic value of the targeted company. ~~Star~~we will also seek to identify operational inefficiencies which it would expect to resolve, post-closing, by implementing streamlined processes, optimizing resource allocation, and leveraging innovative solutions with the objective of enhancing overall productivity and effectiveness of such companies. Its due diligence typically includes an analysis of the target Company’s financial statements, detailed document reviews, meetings with current management, consultations with relevant industry experts, competitors, suppliers, and customers, and any other information gathering that we deem appropriate in conducting a comprehensive analysis.

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~~Star~~ Management believes that the defense sector is poised to experience significant growth in the next few years due to the increasing number of violent conflicts in the world, which may cause an increase in direct demand for defense solutions from conflict participants and their allies. We ~~Star~~ also anticipate seeing indirect, additional defense industry growth for, as we have observed, countries not involved in or participating in conflicts tend to increase their defense budgets and spending in anticipation of additional future conflicts in which they may become involved. It is ~~Star’s~~ our belief that acquiring companies in the defense sector will help us establish a unique marketing network and build expertise in the greater defense sector, thus enabling us to cross-sell products to our large customers and facilitate higher success rates in our sales efforts.

According to ~~Star~~the Company’s industry specific market research and analysis, and the network and knowledge of its management team, it is ~~Star’s~~ our expectation that attractive opportunities are likely to emerge as private sector owners aim to grow their businesses through scaling or by forming outside partnerships to add value. ~~Star’s~~Our value-add proposition involves partnering with exceptional entrepreneurs, acquiring their companies, and guiding them by providing the funding and resources they will need to become global enterprises. ~~Star~~We ~~believes~~believe that through this approach ~~Star~~ we will be more likely to identify and attract potential and appropriate targets for acquisition. ~~Star~~Management also believe that the greatest opportunities for consistent annual returns and residual returns on capital from its acquisitions lie in targeting businesses in niche geographical markets with a competitive edge in the defense, government, and military sectors, especially in the U.S. and Israel. While ~~Star~~ ~~expects~~we ~~its~~expect our management team will be most effective working with the types of businesses described above, ~~Star~~ we will also consider acquiring businesses outside of these industries and sectors as long as any such businesses are congruent with our acquisition strategy.

Pursuant to the acquisition strategy, ~~Star~~the Company will seek to structure its transactions such that each of the businesses it acquires will become its wholly owned or controlled subsidiary. However, ~~Star~~we may also close acquisitions that result in its ownership of an entity being less than 100%, to meet certain objectives of the target management team or their then-existing stockholders, or for other strategic reasons; provided that ~~Star~~ we will always acquire more than 50% of the outstanding voting control of any target, or otherwise obtain a controlling interest in such target.

~~Star~~ T3 intends to finance acquisitions primarily through the public or private sale of our equity and debt securities. While the success of this financing strategy cannot be guaranteed, the ability to finance future acquisitions through its general capital resources, rather than through acquisition-specific financing, will allow ~~Star~~us to minimize delays and closing conditions, thereby enhancing its ability to acquire attractive businesses. Because the timing and size of future acquisitions cannot be readily predicted, we may need access to funding on short notice to be able to benefit fully from attractive acquisition opportunities.

As part of the acquisition strategy, ~~Star~~we will seek to evaluate each potential target’s management team and operational and financial strengths and weaknesses. It will review and compare identified targets to comparable businesses and conduct in-depth research on each potential target’s industry to enhance our assessment of their financial and operational performance and their growth and success potential. ~~Star~~We will thoroughly negotiate appropriate terms and conditions of any acquisition of a target company that satisfies its acquisition criteria. Some of the future acquisition targets may be financially unstable or in the early stages of development or growth. Even if pre-existing conditions do not negatively impact its decision to acquire a target company, such target may also be subject to numerous other risks inherent in its business and industry, as well as the risks faced by generally by capital markets participants. Although its management team will endeavor to comprehensively evaluate the risks associated with any particular acquisition target, Star cannot assure you that it will properly ascertain, assess, or protect against all significant risk factors.

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Valuation and Due Diligence

~~Star~~We intend ~~will~~to perform rigorous business operations and financial evaluations of any target businesses (or assets) that it may acquire. During such due diligence, ~~Star intends~~we intend to evaluate the financial aspects of its acquisition targets using the following metrics:

●

discounted cash flow analysis;

●

evaluation of trading values of comparable public companies;

●

expected value matrices;

●

assessment of competitor, supplier, and customer environments; and

●

review and examination of recent/precedent transactions.

~~Star~~We expect ~~expects~~our ~~its~~ target review process will yield two outcomes, (1) an accurate projection of expected cash flows, and (2) an understanding of the types and levels of risk associated with those projections. While future performance and projections are always uncertain, ~~Star~~we believe ~~believes~~ that ~~its~~our detailed target company review process will enable us to effectively evaluate the prospects and upside of any given acquisition opportunity. Additionally, to assist ~~Star~~management in identifying material risks and validating key assumptions in our financial and operational analysis, ~~Star~~we will engage third-party experts to review key risk areas, including legal, tax, regulatory, accounting, insurance and environmental. ~~Star~~We may also engage technical, operational or industry consultants, as necessary.

~~Star~~ We also ~~engages~~engage in an extensive evaluation of each target’s existing management team, including a focus on recent performance, expertise, experience, culture, and performance incentives. Where necessary, and consistent with our management strategy, following the acquisition of a target company, we will actively seek to augment, supplement, or replace existing members of target company management who we believe are not likely to properly execute our business plan for the target. Star also analyzes and evaluates the operational and financial systems of each target business and, when necessary, post-acquisition, we will actively seek to enhance and improve those existing systems that are deemed to be inadequate or insufficient to support our business plan for the target business.

Financing

~~Star~~T3 expects ~~expect~~ to finance acquisitions primarily through additional equity and debt offerings. Although ~~Star~~we cannot guarantee that itwe will be successful with this strategy, ~~Star~~ management believes that having the ability to finance particular future acquisitions with the general capital resources raised by the company will provide us with an advantage in acquiring attractive businesses by minimizing delay and closing conditions that are often related to acquisition-specific financings. In this respect, ~~Star~~we ~~believes~~believe that, in the future, itwe will need to pursue access to additional capital via debt or equity offerings to successfully fund and execute our business and acquisition strategy.

Competition

In identifying, evaluating, and selecting potential target businesses for ~~its~~our acquisition strategy, ~~Star~~we may encounter intense competition from other entities that have business objectives similar to ~~Star~~ours, including blank check companies such as SPACs, leveraged buyout funds, operating businesses seeking strategic acquisitions, and private equity groups. Many of these entities are well-established and well-financed and may have greater experience identifying and effecting acquisitions directly or indirectly. These competitors may possess greater financial, technical, human, and other resources than we do. ~~Star’s~~Our ability to acquire larger target businesses in our target sectors will be limited by its available financial resources. ~~Star’s~~Our inherent financial limitations may provide others with an advantage to pursue the ~~acquisition~~ acquisition of one or more of its identified target businesses. Any of these factors may place ~~Star~~us at a competitive disadvantage in successfully negotiating acquisitions.

Competitive Advantages

~~Star~~ We believe that ~~its~~the ~~Manager’s~~ collective investment experience of our management and approach to executing its investment strategy will enable it to have several competitive advantages. ~~Star’s~~ Our competitive strengths that differentiate ~~Star~~us from other acquisition holding companies include:

● Specialization in the Military and Defense sector. ~~Star~~We ~~believes~~believe that ~~its~~our focus on the military and defense sectors will enable itus to be competitive. This industry may be undergoing a significant transformation as government acquisition processes and new policy incentives align to prioritize national security objectives and promote the adoption of new commercial technologies for military use. In addition, the combination of governments of multiple countries having a need for new, advanced technologies to combat modern threats, along with changing warfare tactics, is driving this specific demand. We believe we are uniquely positioned to enter and succeed as an acquisition holding company in this industry.

● International and Sector-Specific Expertise. Mr. Shalom, the founder and Chief Executive Officer of Star, has operated businesses internationally, including in Israel. His extensive international experience and knowledge of Israeli business operations, along with a broad network of contacts, provide us with a competitive advantage. This network can assist Star in identifying new acquisition targets, finding suitable managers, and securing international capital. Additionally, its directors and executive officers bring executive, investment, and operational experience in managing and growing small and middle-market companies in the defense sector. Star believes this combined expertise gives it a significant edge in evaluating future business and acquisition opportunities.49

● ~~Value~~International ~~Proposition~~and ~~for~~Sector-Specific ~~Business~~Expertise. ~~Owners~~Mr. ~~Star employs a creative~~Shalom, ~~flexible~~the ~~approach~~founder byand ~~tailoring~~Chief ~~each~~Executive ~~acquisition~~Officer ~~structure~~of toT3, ~~meet~~has ~~the~~operated ~~specific~~businesses ~~liquidity~~internationally, ~~needs~~including ~~and~~in ~~certain~~Israel. ~~qualitative~~His ~~objectives~~extensive ofinternational aexperience ~~target’s owners~~ and ~~management~~knowledge ~~team.~~of ~~Star~~Israeli isbusiness ~~open~~operations, toalong ~~providing~~with a ~~complete~~broad ~~exit~~network ~~strategy~~of tocontacts, ~~its~~provide ~~sellers~~us orwith ~~providing~~a ~~opportunities~~competitive toadvantage. ~~retain~~This ~~incumbent~~network ~~management.~~can Inassist ~~this~~us ~~effort,~~in ~~Star~~identifying ~~believes~~new ~~that~~acquisition ~~its~~targets, ~~company~~finding issuitable anmanagers, ~~appealing~~and ~~buyer~~securing ~~for~~international ~~small~~capital. ~~business~~Additionally, ~~owners~~our directors and ~~managers.~~executive Asofficers abring ~~result~~executive, ~~Star~~investment, ~~believes business owners~~ and ~~managers~~operational ~~will~~experience ~~find~~in itmanaging toand begrowing asmall ~~dynamic,~~and ~~value~~middle-~~added~~market ~~buyer~~companies ~~that~~in ~~brings~~the ~~resources~~defense tosector. ~~achieve~~We ~~their~~believe ~~strategic,~~this ~~capital~~combined ~~and~~expertise ~~operating~~gives ~~needs,~~us ~~resulting~~a significant edge in ~~value~~evaluating ~~creation~~future ~~for~~business ~~the~~and ~~operating~~acquisition ~~subsidiary~~opportunities.

●

Value Proposition for Business Owners. We employ a creative, flexible approach by tailoring each acquisition structure to meet the specific liquidity needs and certain qualitative objectives of a target’s owners and management team. We are open to providing a complete exit strategy to its sellers or providing opportunities to retain incumbent management. In this effort, we believe that T3 is an appealing buyer for small business owners and managers. As a result, we believe business owners and managers will find it to be a dynamic, value-added buyer that brings resources to achieve their strategic, capital and operating needs, resulting in value creation for the operating subsidiary.

Human Capital

~~Star has one full-time employee.~~ As indicated below, Star’s operating subsidiary Rimon employs 1418 people: three technicians, two engineers, ~~two~~three assembly workers, three sales employees, one customer support employee, one financial bookkeeper, and ~~two~~five management employees. None of ~~its~~our employees or or any of ~~its~~our subsidiary’s employees are represented by labor unions, and ~~believes~~we believe that itwe have an excellent relationship with such employees.

Sales and Marketing

Star markets its generators, masts, lightning and utility vehicles through our websites and by working with our internal sales team that offers relevant off-the-shelf or tailor-made solutions based on specific client needs and requests. In the future, Star intends to utilize numerous avenues to promote its business, including digital marketing across social media channels, Web3 reservation systems, and various modes of advertisements.

Legal Proceedings

~~From~~On March ~~time~~3, ~~to time~~2026, ~~Star~~the ~~and its~~Company ~~subsidiaries~~obtained ~~may~~a ~~become~~copy ~~involved~~of ina ~~various~~summons ~~lawsuits~~ and ~~legal~~complaint ~~proceedings~~filed ~~which arise~~ in the ~~ordinary~~Supreme ~~course~~Court of ~~business.~~the ~~However, litigation~~State isof ~~subject~~New toYork ~~inherent~~dated ~~uncertainties~~February 24, ~~and~~2026 anby ~~adverse~~Kingswood ~~result~~Capital inPartners, ~~these~~LLC oragainst ~~other~~Star ~~matters~~26 ~~may~~Capital, ~~arise~~Inc., ~~from~~Nukkleus, ~~time~~Inc. toand ~~time~~the ~~that~~Company. ~~may harm~~The ~~our~~complaint ~~business.~~alleges Wethat a ~~are~~success ~~not~~fee ~~currently~~is ~~aware~~due offor ~~any~~an ~~such~~earned ~~legal~~investment ~~proceedings~~banking orsuccess ~~claims~~fee ~~that~~arising wefrom ~~believe~~a ~~will~~transaction. ~~have~~The aCompany ~~material~~denies ~~adverse~~all ~~effect~~the allegations onand ~~our~~intends ~~business~~to vigorously defend such action, ~~financial~~which ~~condition~~it orbelieves ~~operating~~is ~~results~~without merit.

Government Regulation

The following is a list of government regulations which may apply to Star now or in the future as it continues to carry out its business:

●

Approval of U.S. and Other Defense Acquisitions. Many countries, including Israel, require governmental approval of acquisitions of local defense companies or assets by foreign entities. Mergers and acquisitions of defense-related and other potentially sensitive businesses in the U.S. are subject to the Foreign Investment Risk Review Modernization Act of 2018 (FIRRMA). Under FIRRMA, its future acquisitions of defense-related and other potentially sensitive businesses in the U.S., if any, may require review, and in some cases approval, by the Committee on Foreign Investment in the U.S. (CFIUS). CFIUS has the authority to impose additional restrictions through National Security Agreements (NSA) as part of its review and approval of the acquisitions.

6750

●

Procurement Regulations. Solicitations for procurement by governmental purchasing agencies in Israel, the U.S. and other countries are governed by laws, regulations and procedures such as those relating to procurement integrity, including due diligence, avoiding conflicts of interest and corruption, and meeting information assurance and cyber-security requirements. Such regulations also include provisions relating to the avoidance of human trafficking and counterfeit parts in the supply chain. In view of the ongoing conflict between Russia and Ukraine, various countries and organizations have adopted specific sanctions and regulations to restrict, among other things, the use of certain goods and technologies originating from Russia. Similarly, the United Stated has adopted specific regulations to restrict, among other things, the procurement of goods or services from specific Chinese entities. Such regulations may apply to us as well as to our supply chain.

●

Anti-Bribery/Corruption Regulations. Star may conduct operations in a number of markets that are considered high risk from an anti-bribery/anti-corruption compliance perspective. Laws and regulations such as the Israel Penal Code, the OECD Convention on Combating Bribery of Foreign Public Officials in International Business Transactions, the U.S. Foreign Corrupt Practices Act, the U.K. Bribery Act and corresponding legislation in other countries, prohibit providing personal benefits or bribes to government officials in connection with the governmental procurement process. Israeli defense exporters are required to maintain and follow an anti-bribery/corruption compliance program.

●

Cybersecurity and Data Privacy Regulations. Certain data relating to employees, customers and supply chain that we may receive and maintain, now or in the future, directly or indirectly, is subject to data privacy regulations, including those of the European General Data Privacy Regulation and corresponding Israeli legislation. There has also been an increased focus on cybersecurity, as global privacy, cybersecurity and data protection-related laws and regulations are evolving, extensive, and complex. Star may also be required to comply with expanding and increasingly complex cybersecurity regulations and guidelines in the United States, Israel and elsewhere with respect to reporting adverse events and additional requirements for avoiding or responding to an adverse event.

●

Audit Regulations. In the future, the Israeli Ministry of Defense may audit the books and records of our Israeli defense contractor subsidiaries. Such books and records and other aspects of projects related to U.S. defense contracts, if any, will also be subject to audit by U.S. government audit agencies. Such audits review compliance with government contracting cost accounting and other applicable standards. If discrepancies are found this could result in a downward adjustment of the applicable contract’s price as well as potential penalties. Some other customers have similar rights under specific regulations or contract provisions.

●

Competition Laws. Competition laws and regulations in Israel, the U.S. and other countries often require governmental approvals for transactions that are considered to limit competition. Such transactions may include the formation of joint venture entities, cooperative agreements for specific programs or areas, as well as mergers and acquisitions.

●

Environmental, Health and Safety Regulations. Star may become subject to a variety of environmental, health and safety laws and regulations in the jurisdictions in which we have operations. This potentially includes regulations relating to air, water and ground contamination, hazardous waste disposal and other areas with a potential environmental, health or safety impact. Increased public concern may result in more international, U.S. federal, and/or regional requirements to reduce or mitigate the effects of climate change, such as regulating greenhouse gas emissions, policies mandating or promoting the use of renewable or zero-carbon energy and sustainability initiatives, and additional taxes on fuel and energy. Legislation or regulations may be enacted or promulgated in any jurisdiction in which we do business that impose more stringent restrictions and requirements than our current legal or regulatory obligations. In January 2023, the European Corporate Sustainability Reporting Directive (CSRD) came into force, which requires in-scope companies, among other things, to make sustainability reports including certain mandatory disclosures and other voluntary disclosures on impacts, risks, and opportunities in relation to sustainability matters identified as material by the relevant entity. On March 6, 2024, new SEC rules on climate-related disclosure were adopted which may subject us to burdensome and potentially costly emissions and other data gathering and reporting requirements. We will continue to assess the potential impact of the CSRD and SEC rules on our business and subsidiaries, if any.

6851

~~Tiltan~~B. Rimon ~~Software~~Agencies ~~Engineering~~Ltd., ~~Acquisition~~Star’s Israeli Defense Business

~~On September 1, 2025, we entered~~Star’s ~~into~~defense anmilitary ~~agreement~~technology tobusiness ~~acquire~~is ~~100%~~operated ofby ~~Tiltan~~B. ~~Software~~Rimon ~~Engineering~~Agencies Ltd. ~~for approximately $14 million (NIS 47.6 million). Tiltan~~, ~~established in~~our ~~2015~~indirect, ~~has~~wholly ~~developed~~owned aoperating ~~portfolio~~subsidiary ofthat ~~proprietary~~Star acquired ~~defense~~on ~~and~~February ~~aerospace~~15, ~~software products including:~~2024.

●Rimon is ~~T-BAT:~~an ~~GPS~~Israeli corporation engaged as a supplier of generators for “iron dome” launchers and other defense products which business includes the purchase and sale of generators, masts, and lightning products and solutions, which it acquires through exclusive distributorship agreements with key third-~~denied~~party ~~navigation~~suppliers and ~~landing~~the ~~software~~engineering, design, production, integration, and maintenance of special tactical vehicles and trailers, including reconnaissance vehicles, mobile command and control vehicles, firefighting trailers, energy and lighting trailers, and satellite broadcast mobility platforms which are primarily sold to special defense forces, intelligence agencies and the Israeli Defense Forces.

●The Defense ~~T-TRACK: Real-time video motion detection and tracking~~Industry

●The primary ~~AGM:~~geographic 3Dmarket ~~mapping~~focus as of the date hereof is Israel where the majority of its customers are located and ~~GIS~~operate. ~~generation~~Israel accounted for 4.4% of global arms exports between 2021 and 2025, up from 3.1% in the prior five-year period, making Israel the seventh-largest arms exporter in the world and surpassing the United Kingdom for the first time. Israel’s defense exports reached a record $14.8 billion in 2024, the fourth consecutive year of record exports, driven by strong global demand for Israeli air defense, unmanned aerial vehicle, ~~imagery~~and counter-UAS technologies. Three Israeli companies—Elbit Systems Ltd., Israel Aerospace Industries Ltd. (IAI), and Rafael Advanced Defense Systems Ltd.—rank among SIPRI’s Top 100 global arms-producing companies, with combined arms revenues of approximately $16.2 billion in 2024, representing a 16% year-over-year increase. Israel’s military spending increased by 65% in 2024 to $46.5 billion, or 8.8% of GDP—the second-highest military burden in the world—reflecting the intensity of ongoing multi-front military operations. Israel remains one of few countries with successful experience operating a multi-tiered missile defense system, and its defense technologies continue to be adopted by major global militaries. Notable recent transactions include the sale of the Arrow 3 missile defense system to Germany—the largest arms sale in Israel’s history—and defense agreements with India totaling approximately $10 billion encompassing air defense systems and drones. Israel exports arms to customers in 23 European countries, 10 Asian countries, and multiple countries in the Americas and Africa, with Europe (41%) and Asia (40%) representing the largest regional shares of Israeli defense exports.

●Global military ~~TOPS:~~expenditure ~~Physics~~reached a record $2.7 trillion in 2024, representing a 9.4% increase over the prior year, driven by the Russia-~~based~~Ukraine conflict, 3Dregional ~~simulation~~tensions ~~system~~in the Middle East and Asia-Pacific, and broader geopolitical realignment. The United States remained the world’s largest military spender at $997 billion in 2024, and the proposed fiscal year 2026 defense budget represents the first-ever trillion-dollar U.S. defense budget request. The U.S. defense market was valued at approximately $314 billion in 2024 and is projected to reach approximately $447 billion by 2033, growing at a CAGR of approximately 4.0%. The broader global defense technology market is estimated at approximately $750 billion in 2026 and is projected to reach approximately $965 billion by 2030, reflecting a CAGR of approximately 6.5%, with ~~thermal~~the United States accounting for approximately 40% of global defense technology revenue. In Europe, 17 of the 30 European NATO members reached or surpassed the alliance’s 2% of GDP spending guideline in 2024, with notable increases in Romania (+43%), the Netherlands (+35%), Sweden (+34%), Poland (+31%), and ~~radar~~Germany ~~capabilities~~(+28%), and NATO allies agreed at the June 2025 Hague Summit to increase the alliance spending target to 5% of GDP by 2035, comprising at least 3.5% for core defense expenditures and up to 1.5% for broader defense- and security-related investments. These trends reflect a structural increase in global defense spending that we believe creates significant market opportunities for defense technology companies operating in Israel and internationally. While the Company is in the early stages of entering the United States defense market through its subsidiaries, the Company intends to pursue opportunities in the U.S. and other international markets over time.

~~● Majestic.ai: AI training dataset and synthetic data generation~~52

●Tiltan Software ~~T-Aware:~~Engineering ~~Multi-sensor operational management system for situational awareness~~Ltd.

~~Tiltan~~Acquisition of ~~reported 237~~100% ~~revenue growth~~of in 2024 and has patent-pending technology for autonomous drone navigation systems. The acquisition will strengthen our position in defense AI applications and provides immediate access to proven technologies used by defense and aerospace customers.Tiltan

~~Blade~~On December ~~Ranger~~30, ~~Exclusive~~2025, ~~Distribution~~the Company consummated its acquisition (the “Tiltan Acquisition”) of all of the issued and outstanding shares of Tiltan Software Engineering Ltd. (“Tiltan”) pursuant to a Stock Purchase Agreement, as amended (the “Tiltan Purchase Agreement”), among the Company, its wholly owned subsidiary Nukk Picolo Ltd. (“Nukk Picolo”), Tiltan and Arie Shafir (the “Tiltan Seller”), in consideration of NIS 47,600,000 (approximately $14,000,000). Pursuant to the Tiltan Purchase Agreement, the purchase price is payable in a combination of (i) cash equal to 75% of the purchase price (the “Cash Portion”), or NIS 35,700,000 (approximately $10,500,000), a portion of which (NIS 5,283,333, less NIS 666,667 retained by the Company as working capital for Tiltan) will be paid by the Company to the Tiltan Seller and the remainder of which is evidenced by a secured promissory note (the “Tiltan Note”) in the principal amount of NIS 29,750,000 (approximately $8,750,000), and (ii) shares of Common Stock equal to 25% of the purchase price (the “Stock Portion”), or NIS 11,900,000 (approximately $3,500,000). The remaining Cash Portion of NIS 29,750,000 (approximately $8,750,000) is payable by the Company in five installments at 36-day intervals until the final payment on June 29, 2026, with the first two installments each being reduced by NIS 666,667 for working capital to be retained by Tiltan. The cash payments are evidenced by the Note and secured by the pledge described below. As a result of the acquisition, Tiltan became an indirect wholly owned subsidiary of the Company.

OnIn connection ~~August~~with 21the closing of the Tiltan Acquisition, ~~2025~~the Company deposited 2,000,000 weshares ~~secured~~of Common Stock (the “Escrowed Shares”) ~~exclusive~~into Uescrow with an escrow agent.S. ~~distribution~~On ~~rights~~June ~~for~~29, ~~Blade~~2026, ~~Ranger~~the ~~Ltd.’s~~escrow ~~drone~~agent ~~payload~~shall ~~systems~~release ~~for~~to the ~~defense~~Tiltan Seller shares of Common Stock having an aggregate value equal to 25% of the purchase price (NIS 11,900,000), calculated based on the market price of the Common Stock on said date. Any Escrowed Shares in excess of this amount shall be cancelled and ~~homeland~~returned ~~security~~to ~~markets~~the Company. If the value of the Escrowed Shares ~~Blade~~on ~~Ranger~~said date is less than 25% of the purchase price, anthe ~~Israeli~~Company ~~public~~is ~~company~~required ~~founded~~to either (i) issue additional shares of Common Stock to the Tiltan Seller or (ii) pay the Tiltan Seller the difference in ~~1968~~cash, ~~has~~so ~~evolved~~that ~~into~~the aSeller ~~developer~~receives shares and/or cash having an aggregate value equal to 25% of ~~hardware~~the ~~and~~purchase ~~software~~price. ~~drone~~as ~~payloads~~consideration that may be released to the Tiltan Seller in accordance with ~~applications~~the Tiltan Purchase ~~in:~~Agreement.

●Also in ~~Defense~~connection with the closing of the Tiltan Acquisition, the Company issued the Tiltan Note to the Tiltan Seller. The Tiltan Note matures in five equal installments (other than the first two installments which have been reduced by NIS 666,667 for working capital to be retained by Tiltan) at 36-day intervals beginning on the 36th day following the closing date until the final payment which is due on June 29, 2026. The Tiltan Note does not bear interest unless an Event of Default (as defined in the Tiltan Note) occurs, in which case the outstanding principal amount shall bear interest at the rate of 10% per annum from the date of default until payment. Events of Default include failure to timely make a monthly installment payment within ten (10) business days after written notice is received from the Tiltan Seller, bankruptcy of the Company or Nukk Picolo, material breach of the Tiltan Purchase Agreement, and ~~homeland~~cessation ~~security~~of ~~drone~~business ~~systems~~operations for a continuous period of twenty (20) days. Upon an Event of Default, the Tiltan Seller may declare all amounts due and payable and exercise remedies under the Tiltan Note and the Pledge Agreement (as defined below).

●As security ~~Solar~~for ~~panel~~the ~~maintenance~~Company’s payment obligations under the Tiltan Note and ~~monitoring~~the ~~solutions~~Tiltan Purchase Agreement, Nukk Picolo entered into a pledge agreement (the “Pledge Agreement”) with the Tiltan Seller, pursuant to which Nukk Picolo granted the Tiltan Seller a first-priority security interest in all 100 shares of Tiltan acquired in the Tiltan Acquisition. The security interest shall be registered with the Israeli Registrar of Companies. Upon full payment of all amounts due under the Tiltan Note and the Tiltan Purchase Agreement, the pledge shall be released.

●The acquisition ~~Autonomous~~of ~~navigation~~Tiltan ~~systems~~did ~~(patent-pending)~~not require pro forma financial statements given the impact of the acquisition on the financial condition of acquisition was not material.

~~Under the three-year agreement~~Business ~~(with potential five-year extension), we have committed to minimum purchases~~ of 5, 10, and 15 payloads in years 1-3 respectively. Blade Ranger’s technology complements our existing unmanned systems capabilities and positions us to provide comprehensive autonomous security and surveillance solutions to U.S. defense customers.Tiltan

~~Key~~Tiltan develops simulation, geospatial, and operational software solutions that enable its defense and homeland security customers to train personnel, test systems, navigate, and operate in complex environments using realistic three-dimensional mapping and sensor-based data. Tiltan’s core capabilities—mapping, simulation, and machine vision—can be offered as distinct products but are designed to work together as an integrated solution for situational awareness and decision support. In plain terms, ~~include~~Tiltan makes software that turns complex real-world environments into clear digital tools: it helps customers create a detailed digital version of a physical area (a “terrain model”), build a digital copy of a real location that mirrors real-world conditions (a “digital twin”), and construct computer-generated virtual worlds for training or testing purposes (a “synthetic environment”).

~~● Upfront payment: $100,000 payable in quarterly installments~~53

●Tiltan offers ~~Minimum~~five ~~purchase~~principal ~~commitments~~products and platforms: 5(1) T-AWARE, 10an exploitation system for processing, analyzing, and 15visualizing ~~payloads~~multi-sensor intelligence indata; ~~years~~(2) 1TOPS, a physics-based simulation platform that generates high-fidelity imagery across visible light (standard camera imagery similar to what the human eye sees), infrared (heat-based imagery useful for seeing in darkness), and synthetic aperture radar or SAR (radar imaging that can detect objects through clouds, darkness, and adverse weather conditions); (3) ~~respectively~~Majestic.ai, a generative AI platform for creating realistic synthetic datasets used to train AI systems more quickly and cost-effectively than using real-world imagery; (4) T-BAT, a software-only navigation solution for drones and aircraft that enables autonomous operation when GPS signals are unavailable, jammed, or unreliable; and (5) AGM, a rapid automatic geo-mapping tool that converts spatial data into actionable geospatial intelligence.

●History and ~~Initial three-year term with potential five-year extension upon meeting commitments~~Structure

~~Blade~~Tiltan was ~~Ranger~~founded ~~has~~over ~~patent-pending autonomous~~30 ~~drone~~years ~~navigation~~ago ~~technology~~and is headquartered in Petach Tikva, Israel. The ~~products~~company ~~complement~~has ~~our~~long ~~existing~~served ~~unmanned~~as ~~systems~~both ~~capabilities~~a direct supplier and subcontractor to all major Israeli defense companies, both governmental and non-governmental, building a track record in AI-driven simulation, synthetic data generation, geospatial intelligence, and GPS-denied navigation for defense applications.

69Tiltan reported revenues of approximately $2,964,000 and $2,185,000 for the fiscal years ended December 31, 2024 and December 31, 2025, respectively, but has not been included in the Company’s 2025 Financial Statements.

~~Mandragola~~Market Opportunity ~~Aviation~~and ~~Infrastructure Joint Venture~~Growth

OnTiltan’s products ~~August~~address ~~28,~~several ~~2025,~~large ~~through our~~and ~~wholly-owned~~growing ~~Israeli~~markets ~~subsidiary~~driven ~~Nukk~~by ~~Picolo~~rising ~~Ltd.,~~global wedefense ~~entered~~spending, ~~into~~heightened ageopolitical ~~joint~~tensions, ~~venture~~and ~~agreement~~the proliferation ~~with~~of ~~Mandragola~~autonomous ~~Ltd.~~systems tothat ~~establish~~require advanced ~~aviation~~ ~~and defense infrastructure. The JV~~simulation, insynthetic ~~which~~training ~~we hold a 51% stake~~data, ~~will~~and ~~focus~~GPS-denied ~~on:~~navigation capabilities.

●In the ~~Establishing~~synthetic ~~manufacturing~~data ~~zones~~market, the global AI training dataset market was valued at approximately $1.73 billion in ~~the~~2022 ~~Baltics~~and is forecast to reach approximately $8.61 billion by 2030, representing a compound annual growth rate of approximately 22%. According to Gartner, synthetic data is expected to overshadow more than 85% of real data in AI model training by 2030, reflecting a fundamental shift in how AI systems are developed and ~~Israel~~trained. Tiltan’s Majestic.ai platform is positioned to address this growing demand by providing physically accurate, validated outdoor visual sensor synthetic datasets for ~~civil~~defense and, ~~defense~~increasingly, ~~aviation~~commercial AI applications.

●In the ~~Developing~~GPS-denied navigation market, the broader UAV navigation systems market was valued at approximately $9.73 billion in 2024 and is projected to reach approximately $20.41 billion by 2029, with a ~~NATO~~CAGR of approximately 15.97%. The U.S. drone software market is projected to grow at a CAGR of 15.4% through 2030. Tiltan’s T-~~compliant~~BAT ~~logistics~~product ~~hub~~addresses inthe ~~Riga~~software-only segment of this market, ~~Latvia~~which is in its early stage with only five known competitors globally offering pure software solutions without requiring dedicated hardware.

●Tiltan is ~~Providing~~actively ~~licensed~~pursuing ~~maintenance~~international expansion beyond its Israeli base. In Asia, ~~repair~~Tiltan has secured a purchase order from a governmental technology institute and is in advanced stages of formalizing representative arrangements with additional opportunities under proposal. In Europe, Tiltan has signed representative consultancy agreements in two major European countries, submitted a price proposal to a major European integrator, and ~~overhaul~~is ~~(MRO)~~in ~~services~~advanced negotiations with another. In the United States, Tiltan is exploring various resellers, value-added resellers, and representatives, with an opportunity involving a large governmental entity under evaluation.

~~● Aircraft modernization, resale,~~ Competition and ~~leasing~~Competitive ~~services~~Advantage

●Tiltan competes ~~Deployment~~with a range of ~~Blade~~Israeli ~~Ranger’s~~and ~~de-icing~~international ~~technology~~defense ~~for~~simulation, ~~commercial~~geospatial ~~aircraft~~intelligence, and AI training companies across its product lines. Competition varies by product:

●In GPS-denied ~~Identifying~~navigation ~~and~~(T-BAT), ~~financing~~Tiltan ~~early-stage~~competes ~~technology~~with five global companies inoffering software-only solutions: Sightec (Israel), Protrack (Israel), Spleenlab (Germany, product under development), Daedalean (Switzerland), and SSCI (United States). Most other GPS-denied solution providers offer complete hardware-software packages that are more complex and expensive, whereas T-BAT is a software-only, customer-agnostic solution that complements existing UAV OEM platforms and components without requiring dedicated hardware.

The JV leverages Mandragola’s 20-year partnership with ArrivAir II, LLC, a leading aviation consultancy and aircraft trading company, providing immediate access to aviation industry relationships and expertise. Mandragola has committed a $2 million credit line to support JV operations.54

In synthetic ~~connection~~data ~~with~~for ~~the~~AI JVtraining (Majestic.ai), ~~the~~direct ~~Company~~competitors ~~issued~~include Sky Engine AI, Parallel Domain, Cognata, Bifrost, Anyverse, and Simerse. Most of these competitors rely on third-party 3D engines such as Unity or Unreal, which are primarily designed for gaming and 3D display rather than physics-based sensor simulation. Indirect competitors include large technology companies such as NVIDIA, Microsoft, and Google, which invest in AI training infrastructure and maintain programs to partner with synthetic dataset providers, representing ~~Mandragola:~~both competition and potential collaboration opportunities. Data labeling companies such as Alegion, CloudFactory, and SuperAnnotate are also considered indirect competitors, as synthetic data represents a threat to their manual labeling business models.

●The Company ~~310~~believes that Tiltan’s key competitive advantages include over 30 years of proven delivery to all major Israeli defense companies; a proprietary physics-based 3D engine that provides full control over development,~~000~~ ~~shares~~special features, and no third-party royalty obligations; the ability to generate synthetic data across visible light, infrared, and SAR sensor types, addressing the most demanding defense use cases; a working alpha version of ~~restricted~~its ~~common~~Majestic.ai ~~stock~~platform with early adoption by defense customers; and recognition from the Israeli Ministry of Defense, including an award in an advanced computer vision competition and validation of its infrared simulation capabilities against competitors, in which Tiltan’s results outperformed other participants.

~~● Five-year warrants to purchase 250,000 shares at $4.40 per share~~Human Capital

●Tiltan currently ~~Performance~~employs ~~warrants~~approximately ~~for~~14 ~~350~~people in Israel,~~000~~ ~~shares~~with atexpertise $6in AI, computer vision, geospatial engineering, 3D modeling, simulation, and software development.00 ~~per~~The ~~share~~team ~~(vesting~~draws ~~upon~~from ~~$25~~Israel’s ~~million~~defense-technology ~~cumulative~~talent JVpool ~~revenue)~~and emphasizes innovation and quality in its product development.

~~Change~~Sales and ~~in Fiscal Year~~Marketing

~~On February 14, 2025, the Board approved a change in the Company~~Tiltan’s sales ~~fiscal~~efforts ~~year~~are ~~end~~led ~~from~~by ~~September~~its ~~30 to December 31~~CEO, ~~effective~~who ~~for~~dedicates ~~the~~approximately ~~fiscal~~one-third ~~year~~of ~~beginning January~~his 1,time ~~2024. This change results in a transition period from October 1, 2024,~~ to ~~December~~business ~~31,~~development ~~2024~~activities, ~~for~~supported ~~which the Company has filed~~by a ~~transition report on Form 10~~part-Ktime ~~with~~business ~~the~~development ~~SEC covering these three months~~consultant. ~~The~~Sales ~~decision~~activities totarget ~~change~~defense ~~the~~prime ~~fiscal~~contractors ~~year~~and ~~end~~government ~~was~~agencies, ~~made~~historically through todirect ~~align the~~contracts ~~Company’s~~and ~~financial~~subcontracting ~~reporting~~arrangements with ~~the~~major ~~calendar~~Israeli ~~year,~~defense ~~which~~companies. isTiltan’s ~~expected~~marketing toefforts ~~enhance~~include technical ~~operational efficiency~~demonstrations, ~~improve~~participation ~~comparability with~~in defense industry ~~peers~~events, and ~~better~~digital ~~serve~~channels ~~the~~showcasing ~~needs of shareholders. Further,~~ the ~~Company~~company’s ~~intends~~physics-based simulation torealism ~~align~~and ~~its~~AI ~~fiscal year with Star 26 Capital Inc~~capabilities., Since the ~~Company’s proposed~~ acquisition.,

~~Corporate Information~~Government Regulations

~~Our~~Tiltan is ~~principal~~subject ~~executive~~to ~~offices are~~Israeli ~~located~~Ministry atof ~~575~~Defense ~~Fifth~~export ~~Avenue,~~controls ~~14th~~applicable ~~Floor,~~to ~~New~~defense ~~York,~~items ~~New~~and ~~York 10017~~technologies. ~~Our~~The ~~main~~company ~~telephone~~maintains ~~number~~compliance controls isthrough DECA (~~646~~Defense Export Controls Agency) ~~257-4214~~oversight. WeAs ~~maintain~~an aindirect ~~website at~~subsidiary ~~www~~of a U.~~t3dfns~~S.~~com.~~ ~~Information~~public ~~contained~~company, onTiltan’s activities involving technology transfers or ~~accessible~~international ~~through~~sales ~~our~~are ~~website~~subject isto ~~not,~~U.S. ~~and~~International ~~should~~Traffic ~~not~~in beArms ~~considered~~Regulations (ITAR), Export ~~part~~Administration ofRegulations (EAR), orcybersecurity ~~incorporated by~~standards ~~reference~~applicable ~~into,~~to ~~this~~defense ~~prospectus~~systems, and ~~you~~anti-corruption ~~should~~laws including the U.S. Foreign Corrupt Practices Act (FCPA). Tiltan does not ~~consider~~currently receive any ~~information~~governmental ~~contained~~funding, ongrants, or ~~that~~R&D ~~can~~support befrom the ~~accessed~~Israel ~~through,~~Innovation ~~our~~Authority ~~website as~~or ~~part~~other ofgovernment ~~this~~sources. ~~prospectus~~There inare ~~deciding~~no ~~whether~~royalties owed to ~~purchase~~any ~~our~~third ~~securities~~parties. No material regulatory violations have been reported.

Intellectual Property

Tiltan does not currently hold any registered patents, pending patent applications, registered trademarks, or pending trademark applications. Tiltan’s principal intellectual property consists of its proprietary software platforms and 3D engine, which are developed in-house and over which Tiltan maintains full control without third-party royalty obligations. The company’s competitive position is based primarily on its accumulated know-how developed over more than 30 years of defense software engineering, its proprietary physics-based simulation engine, and the specialized expertise of its team. Tiltan has not granted, and has not been granted, any material intellectual property licenses.

Nimbus Acquisition

Acquisition of 100% of Nimbus

On January 15, 2026, the Company consummated its acquisition (the “Nimbus Acquisition”) of 100% of Nimbus Drones Technologies and Marketing Ltd., an Israeli private company (“Nimbus”) specializing in unmanned aerial systems and services, pursuant to the terms of that certain Stock Purchase Agreement, dated January 15, 2026 (the “Nimbus Purchase Agreement”), by and among the Company, Nimbus and Elad Defense LLC (“Elad”). In connection with the closing of the Nimbus Acquisition, the Company issued to Elad as consideration (i) 1,850,000 shares of Common Stock and (ii) a $3,250,000 convertible 24-month note (the “Nimbus Note”) bearing 6% interest, which is convertible at the option of the holder at a fixed price of $2.00 per share. The Nimbus Note also prohibits the Company from issuing the holder shares that would result in the holder beneficially owning more than 4.99% of the outstanding shares of Common Stock. The Nimbus Note was converted to an aggregate of 1,625,000 shares of Common Stock as of February 17, 2026.

Business Description

Nimbus is an Israeli unmanned aerial vehicle (UAV) company engaged in the sale of various drone models primarily for the defense, homeland security, and civilian industries. Nimbus provides end-to-end UAV solutions, including drone hardware sales and maintenance, aerial photography, mapping and imaging services, and professional UAV pilot training and knowledge transfer. Nimbus serves defense and security organizations, municipalities, local authorities, and surveying and engineering firms with customized unmanned aerial systems and related services.

History and Structure

Nimbus was founded in 2024 and is headquartered in Jerusalem, Israel.

Nimbus reported approximately $940,000 in revenue for the fiscal year ended December 31, 2025, but has not been included in the Company’s 2025 Financial Statements. As a company founded in 2024, Nimbus had limited operations and revenue prior to fiscal year 2025.

Market Opportunity and Growth

Nimbus operates in the growing global UAV and counter-UAS markets, which are driven by increasing adoption in defense, homeland security, public safety, agriculture, and commercial sectors. Demand for drone-based intelligence, surveillance, and reconnaissance capabilities continues to expand amid heightened geopolitical tensions, border security requirements, and the proliferation of unmanned systems. In Israel specifically, the Ministry of Defense has issued tenders for UAV-related contracts valued at approximately NIS 50 million, reflecting the domestic market opportunity. The ongoing security situation in Israel and globally has further increased demand for UAV operations and counter-drone capabilities. Nimbus has secured new customers since its acquisition by T3, though these engagements have not yet reached material revenue levels.

Competition and Competitive Advantage

Nimbus competes primarily with Israeli UAV service providers and drone companies, including Lol TV and Profilor Drones, as well as international UAV service providers and manufacturers. The UAV market is characterized by a growing number of participants, rapid technological development, and increasing demand from both defense and civilian sectors. Nimbus’s competitive advantages include its comprehensive end-to-end UAV lifecycle support encompassing hardware sales, maintenance, aerial operations, certified pilot training, and operational knowledge transfer; its expertise in customized professional systems for defense and critical applications; its ability to serve diverse sectors including security, public, commercial, and agriculture with integrated services; and its presence in Israel’s defense and technology ecosystem, which provides access to operational experience in high-stakes environments.

Human Capital

Nimbus currently employs 2 persons who are involved in both operations and sales activities. None of our employees or any of our subsidiary’s employees are represented by labor unions, and we believe that we have an excellent relationship with such employees.

Sales and Marketing

Nimbus’s sales activities are conducted by its 2 employees, who focus on direct engagements with defense and security entities, public sector agencies including municipalities and local authorities, and commercial clients such as surveying and engineering firms. Historical sales focus has been on the Israeli market, emphasizing operational reliability and professional-grade UAV applications. Marketing efforts leverage industry demonstrations, digital channels, and participation in defense and technology events.

Government Regulations

Nimbus holds UAV pilot licenses issued by the Civil Aviation Authority of Israel (CAAI) and complies with Israeli civil aviation regulations governing drone operations, including flight restrictions and airspace management requirements. As an Israeli UAV company within a U.S. public entity, Nimbus is subject to Israeli Ministry of Defense and civil aviation export regulations for drones and dual-use technologies. U.S. activities are subject to ITAR, EAR, and applicable FAA or equivalent standards for drones, as well as cybersecurity requirements for defense systems and anti-corruption laws including the FCPA. Nimbus does not currently receive any governmental funding or grants, and there are no royalties owed to third parties. No material regulatory violations have been reported.

Intellectual Property

Nimbus does not currently own any patents, patent applications, registered trademarks, or other material intellectual property. The company has not been granted, and has not granted to others, any intellectual property licenses.

Blade Ranger Ltd.

On August 20, 2025, the Company entered into an Exclusive Distribution Agreement (the “Distribution Agreement”) with Blade Ranger Ltd. (“Blade Ranger”), an Israeli public company specializing in development of drones payloads. Blade Ranger develops and commercializes drone technologies for the solar energy market. In addition, it has developed a payload that is used by defense and homeland security forces.

Pursuant to the Distribution Agreement, Blade Ranger granted the Company exclusive distribution rights for defense and homeland security sector in the United States for its proprietary product - a unique drone payload that can be used by military forces and homeland security organizations. We agreed to pay Blade Ranger $100,000 for the exclusive U.S. rights, with the first payment is to be made by the end of November 2025, and equal payments are due at the end of the next three consecutive quarters. The Company committed to purchase 5 units in Year 1, 10 units in Year 2, and 15 units in Year 3. Upon meeting these targets, the Distribution Agreement extends for an additional five years with a 20 unit annual commitment. If we achieve 125% of revenue targets in any year, the Company will receive an 8% credit on annual purchases.

As part of this strategic shift, Nukkleusl incorporated a new subsidiary in Delaware, Nukkleus Defense Technologies, Inc., to focus on the commercialization of third-party defense-related products, technologies and solutions (including the Blade Ranger products) and to explore the development and commercialization of proprietary solutions targeting defense and aerospace markets.

Mandragola Aviation Joint Venture

On August 28, 2025, the Company, Nukk Picolo Ltd., a wholly-owned Israeli subsidiary of ours, and Mandragola Ltd., an Israeli company (“Mandragola”) entered into a Joint Venture Agreement (the “JV Agreement”). Pursuant to the terms of the JV Agreement, the parties will establish a joint venture company in Israel (the “JV Company”) which is intended to establish advanced manufacturing zones in both the Baltics and Israel, designed to support civil and defense aviation needs. Plans also include the development of a NATO-compliant logistics hub in Riga in cooperation with additional regional partners, as well as facilities dedicated to licensed maintenance and repair (MRO) services, aircraft modernization, resale, and leasing, including the deployment of the de-icing technology for commercial aircrafts which the Company recently licensed (on an exclusive basis) from Blade Ranger Ltd. Pursuant to the JV Agreement, Nukk Picolo will hold 51% equity interest in the JV Company. The JV Agreement provides that, under certain specified conditions, we can require Mandragola sell to us its participating interest in the JV Company in consideration for the issuance of Nukkleus’ common stock based on the then specified valuation of JV Company as set forth in the JV Agreement.

Mandragola is a Israeli business development and investment company specializing in advanced technologies and strategic partnerships. Under the JV Agreement, Mandragola has undertaken to provide to the JV Company a 24 month committed credit line of up to $2 million on an as needed basis.

Nukk Picolo has the right to designate three of the five member board of the JV Company with Mandragola designating the remaining two directors.

Under the JV Agreement, we issued to Mandragola 310,000 restricted shares of common stock, five year warrants to purchase 250,000 shares of Nukkleus’ common stock at a per share exercise price of $4.40 and five year warrants for an additional 350,000 shares at a per share exercise price of $6.00 (the “Performance Warrants”). The Performance Warrants only vest upon the JV Company achieving $25 million cumulative revenue. If the revenues targets are not achieved by the JV Company within the five-year period, the Performance Warrants expire.

ITS and Positech

On February 16, 2026, T3 Defense acquired 51% of the outstanding equity capital of I.T.S. Industrial Tecno-logic Solutions Ltd. (“ITS”) on a fully diluted basis. We have a 3- year option to acquire the remainder 49% from the other shareholder of ITS.

ITS is an Israeli company providing design, development, production, and manufacturing of serial, fully integrated electro-mechanical machines and sophisticated assembly lines. Positech Ltd., its wholly-owned subsidiary, designs and manufactures top-of-the-line, high-performance motion control systems for military and civilian use. ITS and Positech provide small to middle-series one-stop shop “Build to Spec” & “Build to print” custom-made prototypes and OEM systems in the mechanical, electrical, hardware, firmware and software engineering fields.

The acquisition was consummated pursuant to the terms of the Agreement dated June 8, 2025 (the “Agreement”) among Star 26, ITS and its controlling shareholder Gera Eron. As of February 15, 2026, the Company has lent ITS an aggregate of NIS 10,000,000 (approximately $3,235,500), with interest accruing at the annual rate of the Israeli Consumer Price Index plus 4%. Pursuant to the Agreement, the loans shall only be repaid after January 1, 2027 if (i) the aggregate amount of the assets of ITS will be at least 150% higher than the liabilities for at least 6 continuous months and (ii) the total aggregate amount of bank credit provided to ITS and Positech shall be lower than an aggregate of 3 months of income generated by ITS and Positech for 6 continuous months.

In consideration for the loan, Star received 51% of the share capital of ITS on a fully diluted basis. Neither Star nor the Company is required to provide any additional consideration for the ITS shares.

Pursuant to the terms of the Agreement, Star was also granted an exclusive option to purchase the remainder 49% of ITS for three years from the controlling shareholder. Depending on whether the option is exercised in the first, second or third year hereafter, the agreed purchase price for the 49% is 25 million NIS, 30 million NIS or 35 million NIS, respectively. The Agreement also provides for additional loans to be made, and all such loans were made. The loans we made are only to be repaid from cash flow surpluses after ITS has provided for its working capital required and growth financing requirements and also after reducing its liabilities to banking institutions. Strategic decisions require the consent of Gera Eron, including any amendments to the articles of association, the capital structure of ITS or Positech, raising capital and acquisitions.

The audited financial statements of ITS, including its wholly-owned subsidiary Positech, as well as pro forma financial statements, were filed with the SEC under a Form 8-K/A on April 1, 2026.

Business Description

ITS is an Israeli engineering and manufacturing company specializing in the serial production of complex electro-mechanical machines and integrated production systems on a build-to-spec and build-to-print basis. ITS provides end-to-end engineering and manufacturing solutions—from initial concept and prototyping through full-scale assembly line deployment—using a Design for Manufacturing (“DFM”) methodology that enables advanced products to be manufactured reliably and at scale. In plain terms, ITS designs and builds the specialized production lines and machines that its customers need to manufacture their own complex products in volume. The company’s services encompass mechanical and electrical engineering design, precision machining, firmware and software development, supply chain management, and factory deployment.

ITS serves customers across multiple sectors, including defense and security technologies, digital three-dimensional printing, agricultural technology and smart farming systems, advanced industrial automation, and specialized research and development and innovation systems. ITS’s named customers include Netafim Ltd. (a global leader in smart irrigation and agricultural technology), Tritone Technologies Ltd. (a metal additive manufacturing company), and several other Israeli technology and defense companies.

History and Structure

For over 30 years, ITS has specialized in engineering and manufacturing integrated electro-mechanical machines, advanced production systems, and assembly lines for defense and industrial applications. In 2016, ITS acquired a 51% controlling stake in Positech Ltd. (“Positech”) and acquired full ownership in 2021, making Positech a wholly-owned subsidiary of ITS.

ITS reported revenues of approximately $6,395,000 and $4,549,000 for the fiscal years ended December 31, 2024 and December 31, 2025, respectively, but has not been included in the Company’s 2025 Financial Statements.

Market Opportunity and Growth

ITS operates in the defense and advanced manufacturing sectors, serving customers that require precision-engineered production systems for complex electro-mechanical products. The company’s market opportunity is driven by growing demand for reliable, scalable manufacturing solutions in Israel’s defense industrial base, as well as in commercial sectors including agricultural technology, additive manufacturing (3D printing), and industrial automation. Israel’s defense industry, which supports three companies in SIPRI’s Top 100 global arms producers with combined revenues of approximately $16.2 billion in 2024, relies on a domestic ecosystem of specialized manufacturers and subcontractors such as ITS to deliver the production infrastructure required for defense programs. Increased global defense spending and the expansion of Israel’s defense export market—which reached a record $14.8 billion in 2024—create additional demand for manufacturing capacity within the Israeli defense supply chain. ITS has not secured new customers or contracts since the Company’s acquisition; however, management believes the company’s integration into the T3 Defense group may create opportunities for expanded business development over time.

Competition and Competitive Advantage

ITS competes with a number of Israeli and international engineering and contract manufacturing companies, including Flex Ltd. (a global electronics manufacturing services provider), Dagesh, Ziv-Av Engineering Ltd., I. Sherman, and ZUK Systems. The defense and industrial contract manufacturing market is characterized by a significant number of specialized participants, long-standing customer relationships, and high barriers to entry driven by the need for precision engineering capabilities, defense-grade quality standards, and specialized know-how. ITS’s competitive advantages include over 30 years of experience in bridging design-to-production with DFM expertise for cost-effective serial manufacturing; end-to-end capabilities from concept and prototyping through full assembly line deployment; the ability to serve diverse sectors including defense, agricultural technology, additive manufacturing, and industrial automation with customized build-to-spec and build-to-print solutions; and a proven track record with established Israeli defense and technology companies.

Human Capital

ITS currently employs approximately 39 people in Israel, including mechanical and electrical engineers, machining specialists, firmware and software developers, and production technicians.

Sales and Marketing

ITS employs one to two persons dedicated to sales and business development activities. Sales efforts are focused on defense prime contractors, technology companies, and industrial clients through direct engagements and customized build-to-spec and build-to-print proposals. ITS has established long-standing relationships with customers in the Israeli defense ecosystem and in commercial sectors including agricultural technology and additive manufacturing. Marketing efforts include participation in defense and technology industry events and direct technical demonstrations of the company’s engineering and manufacturing capabilities.

Government Regulations

ITS is subject to Israeli Ministry of Defense regulations applicable to defense-related manufacturing, including export controls on defense items and technologies. As a subsidiary of a U.S. public company, ITS’s activities involving technology transfers or international sales are subject to U.S. International Traffic in Arms Regulations (ITAR), Export Administration Regulations (EAR), cybersecurity standards applicable to defense systems, and anti-corruption laws including the U.S. Foreign Corrupt Practices Act (FCPA). ITS does not currently receive any governmental funding, grants, or R&D support. There are no royalties owed to any third parties. No material regulatory violations have been reported.

Intellectual Property

ITS does not currently hold any registered patents, pending patent applications, registered trademarks, or pending trademark applications. ITS’s principal intellectual property consists of unregistered manufacturing know-how developed over more than 30 years of engineering and production experience, including proprietary DFM methodologies, process expertise, and technical knowledge related to the design and construction of complex electro-mechanical production systems. ITS has not granted, and has not been granted, any material intellectual property licenses.

Positech Ltd.

Business Description

Positech, a wholly-owned subsidiary of ITS, is an Israeli defense engineering company specializing in the multi-disciplinary mechanical design, engineering, assembly, and production of customized servo motion control systems for mission-critical defense platforms. The company develops high-precision direct-drive, gearless motion technologies that provide accurate stabilization, tracking, and pointing capabilities for sensors, radar systems, communications platforms, electro-optical and infrared payloads, and remote weapon stations. In plain terms, Positech builds the motorized pedestals and turrets that allow defense systems—such as radar dishes, cameras, and weapon stations—to rotate, aim, and stabilize with extreme precision, even on moving vehicles, ships, or aircraft. Positech’s direct-drive technology eliminates mechanical gears, which reduces maintenance requirements and eliminates backlash (the small amount of play or looseness that occurs in geared systems), resulting in smoother, more accurate, and more reliable motion. Positech’s systems are deployed across land, sea, and air defense environments where reliability, accuracy, and durability are essential for operational performance. Positech was funded in 2001.

Positech reported revenues of approximately $3,053,000 and $1,600,000 for the fiscal years ended December 31, 2024 and December 31, 2025, respectively, but has not been included in the Company’s 2025 Financial Statements.

Market Opportunity and Growth

Positech operates in the defense motion control and stabilization systems market, serving customers that require high-precision pointing, tracking, and stabilization capabilities for mission-critical platforms. The market for precision motion control in defense applications is driven by increasing demand for advanced radar, electro-optical, and communication systems across land, sea, and air platforms; the proliferation of remote weapon stations requiring high-accuracy stabilization; and the broader growth in global defense spending and Israel’s record defense export market. As a direct supplier to Israel’s largest defense companies, Positech benefits from the continued investment by these companies in new platforms and systems. Positech has recently secured three new contracts from Israel Aerospace Industries (IAI) and a new contract with Kappasense, demonstrating continued demand for its capabilities.

Competition and Competitive Advantage

Positech competes with a number of Israeli and international providers of precision motion control and stabilization systems for defense applications, including Novatec Ltd., Orbit Communication Systems Ltd. (specifically its Orbit CS division), Capture Ltd., and BL. The defense motion control market is specialized and characterized by high barriers to entry, including the need for deep expertise in direct-drive motor technology, stringent defense-grade quality and reliability requirements, and long qualification cycles with defense prime contractors. Positech’s competitive advantages include its proprietary direct-drive, gearless motor technologies that deliver zero-backlash, high-dynamics stabilization and pointing performance; its ability to provide fully customized servo motion systems tailored to specific platform requirements; its established relationships with Israel’s largest defense companies, including IAI/Elta and Rafael Advanced Defense Systems; and over 20 years of accumulated know-how in designing and manufacturing motion control systems for demanding defense environments.

Human Capital

Positech currently employs approximately 14 people in Israel, including mechanical and electrical engineers, motion control specialists, and production technicians. The team specializes in the design, engineering, and production of high-precision servo motion systems. Positech does not have dedicated sales personnel; business development activities are conducted through its parent company ITS and by Positech’s management directly.

Legal Proceedings

As of the date of this report, Positech is involved in a legal proceeding with a former employee. Management does not believe that the outcome of this matter will have a material adverse effect on the company’s business, financial condition, or results of operations of Positech.

Government Regulations

Positech is subject to Israeli Ministry of Defense regulations applicable to defense-related manufacturing and the production of defense subsystems. As an indirect subsidiary of a U.S. public company, Positech’s activities involving defense items, technology transfers, or international sales are subject to U.S. International Traffic in Arms Regulations (ITAR), Export Administration Regulations (EAR), cybersecurity standards applicable to defense systems, and anti-corruption laws including the U.S. Foreign Corrupt Practices Act (FCPA). Positech does not currently receive any governmental funding, grants, or R&D support. There are no royalties owed to any third parties. No material regulatory violations have been reported.

Intellectual Property

Positech does not currently hold any registered patents, pending patent applications, registered trademarks, or pending trademark applications. Positech’s principal intellectual property consists of unregistered know-how developed over more than 20 years of engineering and production experience, including proprietary expertise in direct-drive motor design, gearless motion control systems, and customized servo stabilization technologies for defense applications. Positech has not granted, and has not been granted, any material intellectual property licenses.

Darwin Tokens

On July 30, 2025, the Company entered into a Warrant to Purchase Tokens agreement with Synthetic Darwin LLC (“Darwin”), pursuant to which the Company paid a purchase price of $500 in exchange for the right to purchase up to 200,000,000 tokens (the “Warrant Tokens”) at escalating exercise prices ranging from $0.02 to $0.50 per token. The warrant is exercisable in four tranches of 50,000,000 tokens each over a twelve-month period and expires one year from the issue date. The warrant may be exercised for cash, by issuance of the Company’s common stock, by net exercise, or through other agreed forms of payment.

Tokens issued upon exercise are subject to a six-month transfer restriction, subject to certain parity protections. The agreement also provides anti-dilution style protections, including entitlement to a pro rata portion of future token issuances, forks, or increases in total token supply.

At the time of initial acquisition in July 2025, the Company exercised a warrant to acquire 50 million tokens in exchange for the issuance of 147,710 shares of common stock of the Company at a total exercise price of $1,000 thousands. In addition, on October 8, 2025, the Company exercised the second tranche and issued 375,000 shares of common stock of the Company to acquire another 50 million tokens at a total exercise price of $3,360 thousands.

Darwin is a blockchain-based digital token issued and recorded on a distributed ledger. The token may be transferable and trades at market-determined prices on digital asset platforms. The token does not represent an equity interest or contractual claim to assets or cash flows of Darwin.

Corporate Office

T3 Defense’s principal executive office is 575 Fifth Ave, 14th Floor, New York, New York 10017. The Company also has an office at 5 Hagvish, Netanya, Israel. Our main telephone number is 212-791-4663. We maintain a website at www.t3dfns.com through which we make available free of charge our annual report on Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K, proxy statements on Schedule 14A, and amendments to those reports filed or furnished pursuant to Section 13(a) or 15(d) of the Exchange Act as soon as reasonably practicable after we electronically file such materials with, or furnish them to, the Securities and Exchange Commission (the “SEC”). Alternatively, you may also access our reports at the SEC’s website at www.sec.gov. Information contained on or accessible through our website is not, and should not be considered, part of, or incorporated by reference into, this annual report.

Employees

WeT3 ~~have~~and ~~the~~its ~~equivalent~~subsidiaries toemploy ~~approximately~~105 ~~one~~employees, ~~employee~~of which 2 work directly for T3, 39 employees work for ITS, 11 for Positech, 14 for Tiltan, 17 for Nukk Picolo Ltd., 18 for Rimon, 2 for Water IO and 2 for Nimbus.

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MANAGEMENT

Directors and Executive Officers

The following table sets forth certain information with respect to our directors and executive officers as of ~~January~~May 2629, 2026.

Name	Age	Position
Menachem Shalom	50	Chief Executive Officer and Director
Morel Levi	33	Chief Financial Officer
David Rokach	55	Director
Shiran Fridman	39	Director
Tomer Nagar	3738	Director
Aviya Volodarsky	41	Director
Asaf Nachum	49	Director
Reuven Yeganeh	48	Director

Set forth below is a brief description of the background and business experience of our current executive officers and directors.

Menachem Shalom has been our Chief Executive Officer and member of our Board of Directors since September 2024. Mr. Shalom also serves as the Chief Executive Officer, President and Chairman of the Board of Directors of Star 26 Capital, Inc. since January 2024, as well as the Chairman of B. Rimon Agencies Ltd., a wholly owned operating subsidiary of Star 26 and operator of Israeli defense business. Mr. Shalom has served as a director and the Chief Executive Officer of Motomova Inc (OTC Markets: MTMV) since December 1, 2022 and its Secretary since May 24, 2023. Mr. Shalom was the Co-Chief Executive Officer, and a member of the board of directors of MEA since January 2022. Since 2017, Mr. Shalom has also served as CEO of Hold Me Ltd., a digital platform for mobile wallet and payments founded by Mr. Shalom. Mr. Shalom is the principal executive and financial officer and sole director of Hold Me Ltd., a company registered with the Securities and Exchange Commission. Prior to his tenure with the Company, Mr. Shalom founded and served as CEO of Wayerz Solutions, Ltd., a digital platform for correspondent banking and wires’ routing optimization, between 2014 and 2017 and as Vice President of Business Development, Sales and Marketing at Dsnr Media Group Ltd., an international cross-platform digital advertising company. Mr. Shalom also founded and served as CEO of Mipso Ltd., a software-as-a-service provider in the fashion and retail industry, between 2010 and 2013; ooga studio Ltd., an industrial design incubator, between 2007 and 2010; and Medifreeze Ltd., a startup in the area of stem cell cryopreservation, between 2004 and 2009. Mr. Shalom received his MBA at the Hebrew University of Jerusalem in 2003 after receiving an LLM in corporate law at Columbia University School of Law in 2000.

Morel Levi has been our Chief Financial Officer since December 8, 2025. Mr. Levi also serves as the Chief Financial Officer of Nukk Picolo and has entered into an employment agreement with Nukk Picolo. Mr. Levi has also been the Financial Controller of Nukk Picolo since August 1, 2025. Prior to his employment with Nukk Picolo, Mr. Levi was the Controller at Blender Financial Technologies Ltd. from December 2022 through July 2025. Prior to his employment at Blender Financial Technologies Ltd., Mr. Levi worked at Kost Forer Gabbay & Kasierer (EY Israel) from October 2020 through November 2022. Mr. Levi holds a B.A. in Economics and Accounting from the Ruppin Academic Center and is also a Certified Public Accountant.

David Rokach has been a member of our Board of Directors since September 2024. Mr. Rokach is the founder and has served as the CEO of Tokara Management Ltd. since 2014, which provides investment management services to hedge funds. Mr. Rokach also serves as a Senior Investment Manager of X Group Fund of Funds since January 2020. X Group Fund of Funds has provided a loan to the Company and also holds a warrant. Mr. Rokach has also held certain roles with Clal Finance. Mr. Rokach graduated from The Hebrew University of Jerusalem with a Bachelor of Arts International Relations in 1993 and from the Tel Aviv University with a diploma in Financial Investment Management in 1993. Mr. Rokach attended New York University in 1994 studying investment management.

Tomer Nagar has been a member of our Board of Directors since November 2024. Mr. Nagar has been employed in the sales department for Sogolowek Food Group since 2019. Prior to joining Sogolowek, Mr. Nagar served in the Israeli Air Force from 2006 through 2018 as a First Sergeant and Master Sergeant. Mr. Nagar graduated from the Israeli Air Force College in 2005 with a degree in Aviation Machinery.

7163

~~Aviya~~Shiran ~~Volodarsky~~Fridman has been a member of our Board of Directors since ~~November~~May ~~2024.~~19, Ms2026. ~~Volodarsky~~Since is2025, anMs. ~~attorney~~Fridman ~~and since 2023~~ has ~~practiced as~~been aan ~~self~~independent ~~employed attorney in Israel specializing in torts, corporate law, administrative law~~ business and ~~civil~~financial ~~litigation~~consultant. From ~~2017~~2007 through ~~2023,~~ ~~Ms.~~2025 ~~Volodarsky~~she was ~~employed~~an byinvestment ~~the~~manager ~~Law~~at ~~Firm~~Four ofSeasons ~~Attorney~~Real ~~Yigal~~Estate ~~Matzlavi.~~in MsIsrael. ~~Volodarsky studied at the Ono Academic College.~~

~~Reuven Yeganeh has~~Asaf ~~been~~Nachum a director since June 13, 2024. He is an experienced business manager with specific experience in managing funds and a demonstrated history of working in the financial services industry. Since 2021, Mr. Yeganeh has ~~served~~been as a ~~derivatives~~member ~~trader for Inbar Group Finance Ltd. From 2018 to 2021, Mr. Yeganeh was the Chairman~~ of ~~the~~our Board of Directors ofsince ~~Fantazy~~May ~~Network (market: TASE: WILK)~~19, ~~which specialized in cannabis investments, and from April 2012 to 2018 was the Chairman of the Board of Directors of Direct Capital (TASE: DCI-M), which was engaged in real estate investments~~2026. ~~Prior to 2012,~~ Mr. ~~Yeganeh~~Nachum ~~worked~~is ~~for~~an ~~various~~independent investment ~~companies~~advisor ~~providing managing investment strategy. Further, from 1998 through 2001, Mr. Yeganeh served as a Non-Commissioned Officer it the Israeli Air Force. Mr. Yeganeh received a BA degree in Economics~~ and ~~Administration specializing in finance from Ruppin College, Israel in 2004 and a license to manage investment~~portfolio ~~portfolios from the Israeli Securities Authority in 2006~~manager.

Board of Directors

Directors on our Board of Directors are elected for one-year terms and serve until the next annual security holders’ meeting or until their death, resignation, retirement, removal, disqualification, or until a successor has been elected and qualified. All officers are appointed annually by the Board of Directors and serve at the discretion of the Board. Currently, each director receives annual compensation of $20,000 for their services on our Board.

We reimburse our directors for expenses incurred in connection with attending directors’ meetings. We will consider applying for officers and directors’ liability insurance at such time when we have the resources to do so.

Director Independence

Nasdaq listing rules require that a majority of the board of directors of a company listed on Nasdaq be composed of “independent directors,” which is defined generally as a person other than an officer or employee of the Company or its subsidiaries or any other individual having a relationship, which, in the opinion of the Company’s board of directors, would interfere with the director’s exercise of independent judgment in carrying out the responsibilities of a director. Our board of directors has determined that each of ~~David~~Shiran ~~Rokach~~Fridman, ~~Tomer Nagar, Aviya~~ ~~Volodarsky~~Asaf Nachum and ~~Reuven~~Tomer ~~Yeganeh~~Nagar is an independent director under the Nasdaq listing rules and Rule 10A-3 of the Exchange Act. In making ~~these~~ these determinations, the board of directors considered the current and prior relationships that each non-employee director has with the ~~Company~~ Company and will have with the combined company and all other facts and circumstances our board of directors deemed relevant in determining independence, including the beneficial ownership of our Common Stock by each non-employee director, and the transactions involving them described in the section entitled “Certain Relationships and Related Transactions.”

Committees of the Board of Directors

The standing committees of our board of directors consist of an Audit Committee, a Compensation Committee, and a Nominating and Corporate Governance Committee. Below are our current committee members.

Audit Committee Compensation Committee Nominating and Corporate Governance Committee ~~David~~Shiran ~~Rokach~~Fridman± ~~David~~Shiran ~~Rokach~~Fridman ~~David~~* ~~Rokach~~Shiran ~~Reuven~~Fridman ~~Yeganeh~~ *± ~~Reuven~~Asaf ~~Yeganeh~~Nachum ~~Reuven~~* ~~Yeganeh~~Asaf ~~Aviya~~Nachum ~~Volodarsky~~Asaf ~~Aviya~~Nachum ~~Volodarsky~~Tomer *Nagar ~~Aviya~~Tomer ~~Volodarsky~~Nagar *Tomer Nagar

*	Denotes Chairperson.
±	Denotes audit committee financial expert.

7264

Audit Committee

The Company’s Audit Committee consists of ~~David~~Asaf ~~Rokach~~Nachum, ~~Reuven~~Shiran ~~Yeganeh~~Fridman and ~~Aviya~~Tomer ~~Volodarsky~~Nagar, each of whom are independent directors and are “financially literate” as defined under the Nasdaq listing standards. The Board has determined that ~~Reuven~~Shiran ~~Yeganeh~~Fridman, who serves as the Chairperson of the Audit Committee, qualifies as an “audit committee financial expert,” as defined under rules and regulations of the SEC.

The Audit Committee is responsible for overseeing management’s implementation of effective internal accounting and financial controls, supervising matters relating to audit functions, reviewing and setting internal policies and procedures regarding audits, accounting and other financial controls, reviewing the results of our audit performed by the independent public accountants, and evaluating and selecting the independent public accountants. The Audit Committee has adopted an Audit Committee Charter, which is available on our website at http://www.t3dfns.com.

Compensation Committee

The Company’s Compensation Committee consists of ~~David~~Asaf ~~Rokach~~Nachum, ~~Reuven~~Shiran ~~Yeganeh~~Fridman and ~~Aviya~~Tomer ~~Volodarsky~~Nagar. ~~Aviya~~Shiran ~~Volodarsky~~Fridman serves as Chairperson of the Compensation Committee.

The Compensation Committee determines matters pertaining to the compensation of our named executive officers and administers our stock option and incentive compensation plans. The Compensation Committee has adopted a Compensation Committee Charter, which is available on our website at http://www. t3dfns.com.

Nominating and Corporate Governance Committee

The Company’s Nominating and Corporate Governance Committee consists of ~~David~~Asaf ~~Rokach~~Nachum, ~~Reuven~~Shiran ~~Yeganeh~~Fridman and ~~Aviya~~Tomer ~~Volodarsky~~Nagar. ~~Aviya~~Shiran ~~Volodarsky~~ Fridman serves as Chairperson of the Compensation Committee.

The Nominating and Corporate Governance Committee is responsible for overseeing the selection of persons to be nominated to serve on the Board and implementing the Company’s corporate governance policies. The Nominating and Corporate Governance Committee considers persons identified by its members, management, shareholders, investment bankers and others.

The Nominating and Corporate Governance Committee has adopted a Nominating and Corporate Governance Committee Charter, which is available on our website at http://www. t3dfns.com.

Family Relationships

No family relationship exists between any director, executive officer, or any person contemplated to become such.

Delinquent Section 16(a) Reports

Section 16(a) of the Exchange Act requires our directors, executive officers and persons who own more than 10% of our common stock to file with the SEC initial reports of ownership and reports of changes in ownership of common stock and other of our equity securities. During the year ended December 31, 2025, we believe all of our officers, directors and 10% stockholders made the required filings pursuant to Section 16(a), except Morel Levi failed to file a Form 3 upon becoming an insider on December 8, 2025.

7365

Involvement in Certain Legal Proceedings

None of our directors or executive officers has, during the past ten years:

●

had any bankruptcy petition filed by or against any business of which he was a general partner or executive officer, either at the time of the bankruptcy or within two years prior to that time;

●

been convicted in a criminal proceeding or been subject to a pending criminal proceeding (excluding traffic violations and other minor offences);

●

been subject to any order, judgment, or decree, not subsequently reversed, suspended or vacated, of any court of competent jurisdiction, permanently or temporarily enjoining, barring, suspending or otherwise limiting his involvement in any type of business, securities, futures, commodities or banking activities;

●

been found by a court of competent jurisdiction (in a civil action), the Securities and Exchange Commission or the Commodity Futures Trading Commission to have violated a federal or state securities or commodities law, and the judgment has not been reversed, suspended, or vacated;

●

been subject or a party to or any other disclosable event required by Item 401(f) of Regulation S-K.

Code of Business Conduct and Ethics

We have adopted a Code of Business Conduct and Ethics Policy (the “Code of Ethics”) that applies to all directors and officers, which is available on our website at https://www. t3dfns.com. The Code of Ethics describes the legal, ethical and regulatory standards that must be followed by the directors and officers of the Company and sets forth high standards of business conduct applicable to each director and officer. As adopted, the Code of Ethics sets forth written standards that are designed to deter wrongdoing and to promote, among other things:

●

honest and ethical conduct, including the ethical handling of actual or apparent conflicts of interest between personal and professional relationships;

●

compliance with applicable governmental laws, rules and regulations;

●

the prompt internal reporting of violations of the Code of Ethics to the appropriate person or persons identified in the code; and

●

accountability for adherence to the Code of Ethics.

7466

EXECUTIVE COMPENSATION

Summary Compensation Table

The following table sets forth information concerning all cash and non-cash compensation awarded to, earned by or paid to our named executive officers (including director compensation) during the fiscal years ended December 31, 2025 and 2024.

Name and principal position	Year		Salary ($)		Bonus ($)		Stock awards ($)		Option awards ($)		Nonequity incentive plan compensation ($)		Nonqualified deferred compensation earnings ($)		All other compensation ($)		Total ($)
Menachem Shalom		2025		310,000		-		3,637,500		-		-		-		20,000		3,967,500
CEO		2024		80,000		-		695,000		-		-		-		8,333		783,333

Morel Levi		2025		5,750		-		24,250		-		-		-		-		30,000
CFO		2024		-		-		-		-		-		-		-		-

Employment Agreements

Menachem Shalom was appointed as a director on July 24, 2024. On December 16, 2024, the Company entered into a Consultancy Agreement with Menachem Shalom, the Company’s CEO, effective September 1, 2024. Pursuant to the agreement, Mr. Shalom is employed as Chief Executive Officer of the Company unless terminated pursuant to the terms of the agreement. During the initial term of the agreement (September 2024 through February 2025), Mr. Shalom is entitled to receive $20,000 monthly, with subsequent semi-annual $5,000 monthly increases effective March 2025 & September 2025.

Given the performance of the Company within the last 15 months, the Compensation Committee and the Board of Directors determined that it was in the best interest of the Company to provide Mr. Shalom with the amended consulting agreement and increased compensation. The Committee and the Board also authorized a cash bonus to Mr. Shalom in the amount of $250,000 for his past services to the Company. The Company, under the supervision and guidance of Mr. Shalom, has completed several acquisitions within the last 15 months, including without limitation, Star 26, Tiltan Software Engineering, Nimbus Drones and ITS.

Pursuant to the terms of the Consulting Agreement, which is effective as of January 1, 2026, Mr. Shalom will continue to act as the chief executive officer of the Company while maintaining other executive roles in non-completing companies. For his services, Mr. Shalom will receive a base salary of $60,000 per month and target cash bonuses equal to 50% of base salary, subject to achievement of performance goals to be set by the Compensation Committee. He could also be entitled to additional milestone-based bonuses as determined by the Board. Mr. Shalom will receive 250,000 shares of common stock quarterly, subject to availability under approved incentive plans; if there is no plan or no availability, the quarterly amount of shares shall accrue until there is availability under an approved incentive plan. Such plan will also require shareholder approval pursuant to applicable Nasdaq rules. He will also be entitled to a relocation grant of $175,000 if Mr. Shalom relocates to the United States with his family. Mr. Shalom will also be entitled to all executive benefit plans including health and 401(k) plans and 30 business days per year vacation.

In the event Mr. Shalom is terminated for cause or is no longer employed by the Company for reason of death or disability, he shall only be entitled to his compensation at such time. If he is terminated by the Company without cause, he shall be entitled to 6 months of his base compensation, and if Mr. Shalom resigns, he shall be entitled to compensation for 12 months. If he is terminated for cause, Mr. Shalom shall not be entitled to any compensation.

The Consulting Agreement contains customary non-competition, non-solicitation and confidentiality provisions.

On April 8, 2025, the Board adopted the Company’s Policy for the Recovery of Erroneously Awarded Compensation, in accordance with Nasdaq Rule 5608 (“Clawback Policy”). The Clawback Policy provides for the reasonably prompt recovery by the Company of Incentive Based Compensation paid to a Covered Person (an executive officer and certain other specified senior employees), to the extent erroneously awarded, following an Accounting Restatement by the Company. The Clawback Policy applies to all Incentive Based Compensation paid after the date of adoption of the Clawback Policy.

On December 8, 2025, the Board appointed Morel Levi as the Chief Financial Officer of the Company, effective as of December 8, 2025. Mr. Levi receives a salary of $7,500 per month for serving as the Company’s Chief Financial Officer. Mr. Levi did not receive any compensation from the Company during the fiscal year ended December 31, 2024.

Option Exercises and Stock Vested

There were no options exercised by our executive officers or stock vested to our executive officers during the fiscal year ended December 31, 2025.

Outstanding Equity Awards

The following table sets forth information with respect to the outstanding equity awards of our named executive officers as of December 31, 2025:

Outstanding Equity Awards

Option Awards

Stock Awards

Number of
securities
underlying
unexercised
options
exercisable

Number of
securities
underlying
unexercised
options
unexercisable

Equity
incentive plan
awards:
Number of
securities
underlying
unexercised
options

Options exercise price

Option expiration

Number of shares or units of stock that have not vested

Market value of shares or units of stock that have not vested

Equity incentive plan awards: Number of unearned shares, units or other rights that have not vested

Equity incentive plan awards: Market or payout value of unearned shares, units or other rights that have not vested

Name

(#)

($)

date

(#)

($)

(#)

($)

Menachem Shalom

Morel Levi

No Pension Benefits

The Company does not maintain any plan that provides for payments or other benefits to its executive officers at, following or in connection with retirement and including, without limitation, any tax-qualified defined benefit plans or supplemental executive retirement plans.

No Nonqualified Deferred Compensation

The Company does not maintain any defined contribution or other plan that provides for the deferral of compensation on a basis that is not tax-qualified.

Non-Employee Director Compensation

The following table sets forth all information concerning all cash and non-cash compensation awarded to, earned by or paid to our non-employee directors during the fiscal year ended December 31, 2025.

	Non-Employee Director Compensation
	Fees Earned or Paid in Cash		Stock Awards		Option Awards		Non-equity Incentive Plan Compensation		Change in Pension Value and Non-Qualified Deferred Compensation		All Other Compensation		Total
Name	($)		($)		($)		($)		Earnings ($)		($)		($)
Reuven Yeganeh (1)		20,000		48,500		-		-		-		-		68,500
Anastasiia Kotaieva (1)		16,667		-		-		-		-		-		16,667
David Rokach (2)		20,000		24,250		-		-		-		-		44,250
Tomer Nagar (3)		20,000		24,250		-		-		-		-		44,250
Aviya Volodarsky (3)		20,000		24,250		-		-		-		-		44,250

(1) Mr. Yeganeh &and Ms. Kotaieva were appointed as directors on June 13, 2024. Ms. Kotaieva’s term as a director ended on November 6, 2025. Mr. Yaganeh resigned on May 19, 2026.

(2) Mr. Rokach was appointed as director on July 24, 2024, and served until his resignation on May 19, 2026.

(43) Mr. Nagar & Ms. Volodarsky were appointed as directors on November 8, 2024. Ms. Volodarsky’s term as a director ended on February 23, 2026.

76Each of Ms. Fridman and Mr. Nachum, who were appointed on May 19, 2026, are entitled to $5,000 per quarter they serve as directors of the Company and 5,000 shares of common stock of the Company.

SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT

The following table sets ~~forth~~ forth certain information as of ~~January~~May 2629, 2026 with respect to the beneficial ownership of our Common Stock, the sole outstanding class of of our voting securities, by (i) any person or group owning more than 5% of each class of voting securities, (ii) each director, (iii) ~~each~~ each named executive officer, and (iv) all executive officers and directors as a group. Except as otherwise indicated, each of the stockholders listed below has sole voting and investment power over the shares beneficially owned, based on 2968,~~168~~270,~~154~~525 shares of Common Stock issued and outstanding as of such date.

Beneficial ownership is determined under the rules of the Securities and Exchange Commission and generally includes voting or investment power over securities. Except in cases where community property laws apply or as indicated in the footnotes to this table, we believe that each stockholder identified in the table possesses sole voting and investment power over all shares of common stock shown as beneficially owned by the stockholder.

Shares of common stock subject to options or warrants that are currently exercisable or exercisable within 60 days of the date of this report are considered outstanding and beneficially owned by the person holding the options for the purpose of computing the percentage ownership of that person but are not treated as outstanding for the purpose of computing the percentage ownership of any other person.

Named Executive Officers and Directors	Position	Number of Shares of Common Stock		Percentage of Common Stock
Menachem Shalom	CEO and Director		8,260,369		24.2	%
Menachem Shalom(1)	CEO and Director		14,859,080		19.7	%
Morel Levi	CFO		5,000		*
David Rokach	Director		15,000		*
Shiran Fridman	Director		0		*
Tomer Nagar	Director		15,000		*
Aviya Volodarsky	Director		15,000		*
Asaf Nachum	Director		0		*
Reuven Yeganeh	Director		20,000		*
Total Officers and Directors (5 people)			14,879,080		19.7	%
Total Officers and Directors (6 people)			8,330,369		24.4	%
5% Stockholders
X Group Fund of Funds LP(1)			1,850,000		6.3	%
VisionWave Holdings Inc.(2)			6,000,000		8.79	%
Esousa Group Holdings LLC(2)			3,237,305		9.99	%
Esousa Group Holdings LLC(3)			7,577,186		9.99	%

(1) Represents shares of common stock held as of record by X Group Fund of Funds Limited Partnership. Anastasiia Kotaieva, a former director of the Company, is the owner of X Group Fund of Funds Limited Partnership, and has voting and dispositive control over the securities held by X Group Fund of Funds Limited Partnership.

(1)	Consists of 7,683,418 shares of Common Stock and 7,175,662 shares of Common Stock issuable upon exercise of warrants held by Menachem Shalom.

(2)	Represents shares of common stock held as of record by VisionWave Holdings Inc. (NASDAQ: VWAV). The address of the principal business office of VisionWave Holdings Inc. is 1063 N. Spaulding Ave., West Hollywood, CA 90046.

(3)	Consists of 719 shares of Common Stock, 4,460,095 shares of Common Stock issuable upon the conversion of units of Series B Preferred Stock, and 3,116,372 shares of Common Stock issuable upon exercise of warrants held by Esousa Group Holdings LLC (“Esousa”). Excludes 4,037,912 additional shares of Common Stock issuable upon exercise of warrants held by Esousa as the terms of such warrants limit the exercise such that beneficial ownership does not exceed 9.99%. Esousa holds 190 shares of Series B Preferred Stock which are currently convertible into 4,460,095 shares of Common Stock (assuming an Initial Conversion Price of $2.13) and Common Warrants to purchase an aggregate of 6,690,142 shares of Common Stock at an exercise price of $2.13 per share, and additional Common Warrants to purchase an aggregate of 464,142 shares of Common Stock at an exercise price of $5.405 per share. The Series B Preferred Stock and the Common Warrants limit the conversion or exercise such that beneficial ownership does not exceed 9.9% or 9.99%, respectively. In accordance with Rule 13d-3(d) under the Exchange Act, also excludes the number of shares of Common Stock that Esousa may be required to purchase under the Equity Line of Credit (the “ELOC Purchase Agreement”) we entered into with Esousa in September 2025 because the issuance of such shares is solely at our discretion and is subject to conditions contained in the ELOC Purchase Agreement, the satisfaction of which are entirely outside of Esousa’s control. The purchases made by Esousa pursuant to the ELOC Purchase Agreement are also subject to a 9.99% beneficial ownership limitation. Michael Wachs, the owner of Esousa, has voting and dispositive control over the securities held by Esousa. The address of the reporting person is 211 East 43rd Street, Suite 402, New York, NY 10017.

(2) Consists of 935,719 Common Shares and 2,301,586 shares of Common Stock issuable upon exercise of warrants held by Esousa Group Holdings LLC (“Esousa”). Excludes 3,087,547 additional shares of Common Stock issuable upon exercise of warrants held by Esousa as the terms of such warrants limit the exercise such that beneficial ownership does not exceed 9.99%. In accordance with Rule 13d-3(d) under the Exchange Act, also excludes the number of shares of Common Stock that Esousa may be required to purchase under the Equity Line of Credit (the “ELOC Purchase Agreement”) we entered into with Esousa in September 2025 because the issuance of such shares is solely at our discretion and is subject to conditions contained in the ELOC Purchase Agreement, the satisfaction of which are entirely outside of Esousa’s control. The purchases made by Esousa pursuant to the ELOC Purchase Agreement are also subject to a 9.99% beneficial ownership limitation. Michael Wachs, the owner of Esousa, has voting and dispositive control over the securities held by Esousa.

*	Less than 1%.

7770

SELLING STOCKHOLDERS

~~This prospectus relates to~~The ~~the~~Shares ~~possible~~being ~~offer~~offered ~~and resale~~ by the Selling Stockholders ofare upthose issuable to ~~16,787,988~~the ~~Shares,~~Selling ~~which~~Stockholders ~~consists~~upon conversion of ~~4,770,340~~the ~~Common~~Series ~~Shares~~B ~~and up~~Preferred toStock ~~12,017,648~~and ~~Warrant~~those ~~Shares~~ issuable ~~upon~~to the Selling Stockholders upon exercise of the ~~Warrant~~Common Warrants. For additional information regarding the issuances of those securities, see “Prospectus Summary – ~~Company~~February ~~Overview~~2026 Private Placement” above. We are registering the Shares in order to permit the Selling Stockholders to offer the Shares for resale from time to time.

The table below lists the Selling Stockholders and other information regarding the beneficial ownership (as determined under Section 13(d) of the Exchange Act ~~and~~ and the rules and regulations thereunder) of the shares of Common Stock by ~~each of~~ the Selling Stockholders. The second column lists the number of shares of Common Stock beneficially owned by ~~each~~the Selling ~~Stockholder~~Stockholders, based on ~~its~~their ~~respective~~ ownership as of ~~January~~May 2629, 2026, assuming ~~the~~ ~~exercise~~ conversion of the ~~Warrant~~Series ~~held~~B byPreferred ~~the~~Stock ~~Selling Stockholder on that date. The third column lists the Shares being offered by this prospectus by the Selling Stockholders. The fourth~~ and ~~fifth~~exercise ~~columns assume the sale~~ of ~~all of~~ the ~~Shares~~Common ~~offered~~Warrants held by the Selling Stockholders ~~pursuant to~~on ~~this~~that ~~prospectus~~date.

~~Under the terms of outstanding warrants, Esousa Group Holdings LLC~~The ~~may~~third ~~not~~column ~~exercise~~lists ~~such warrants to~~ the ~~extent~~Shares ~~(but~~being ~~only~~offered toby ~~the~~this ~~extent)~~prospectus itby ~~or any of its affiliates would beneficially own in excess of 9.99% of~~ the ~~number~~Selling ofStockholders ~~shares~~and ofdoes ~~Common~~not ~~Stock~~give ~~outstanding after giving~~ effect to ~~the~~any ~~issuance of the shares of Common Stock issuable upon~~limitations ~~exercise~~on ofconversion ~~such warrants calculated in accordance with Section 13(d)~~ of the ~~Securities~~Series ~~Exchange~~B ~~Act.~~Preferred ~~The number of shares of Common~~ Stock in ~~the~~or ~~second,~~any ~~third~~limitations ~~and~~on ~~fourth columns and~~ the ~~percentage~~exercise inof the ~~fifth~~Common ~~column~~Warrants doset ~~not~~forth ~~reflect this limitation~~therein. ~~The Selling Stockholders may sell all, some or none of their Shares in this offering. See “Plan of Distribution.”~~

Name of Selling Stockholder	Common Stock Owned Prior to this Offering		Common Stock to be Sold in this Offering		Common Stock Owned After this Offering		Percent
Menachem Shalom(1)		8,260,370		7,010,370		1,250,000		4.3	%
Esousa Group Holdings LLC(2)		6,324,852		3,293,022		3,031,830		10.4	%
B.C. Omer Consulting Ltd.(3)		420,623		420,623		—		*
Bevilacqua PPLC(4)		1,051,556		1,051,556		—		*
Haytar LLC(5)		420,623		420,623		—		*
David Lubin(6)		420,623		420,623		—		*
Shalom Berkovitz(7)		595,882		595,882		—		*
Vered Itzhaki(8)		35,052		35,052		—		*
Boaz Gorodisky(9)		35,052		35,052		—		*
Amir Shalom(10)		701,037		701,037		—		*
Itamar Shalom(11)		701,037		701,037		—		*
Dorit Cohen(12)		701,037		701,037		—		*
Rachel Shalom(13)		701,037		701,037		—		*
Yechezkel Shalom(14)		701,037		701,037		—		*

In accordance with the terms of the Registration Rights Agreement with the Selling Stockholders, we are obligated to generally cover the resale of (i) 250% of the maximum number of Shares issuable upon conversion of the Series B Preferred Stock as of the date of the Securities Purchase Agreement based on the Initial Conversion Price and (ii) 250% of the maximum number of Shares issuable upon exercise of the Common Warrants as of the date of the Securities Purchase Agreement based upon the Initial Exercise Price, determined as if the outstanding shares of Series B Preferred Stock were converted in full and the outstanding Common Warrants were exercised in full, without giving effect to the cashless exchange of the Common Warrants, any limitations on the exercise of the Common Warrants or any limitations on the conversion of the Series B Preferred Stock. We have agreed with the Selling Stockholders to register in the registration statement of which this prospectus is a part less than the maximum number of Warrant Shares that may be issuable pursuant to the terms of the Common Warrants. The fourth column assumes the sale of all of the Shares offered by the Selling Stockholders pursuant to this prospectus.

(1)	Includes (i) 1,992,010 Common Shares and (ii) 5,018,360 Warrant Shares.
(2)	Includes (i) 935,719 Common Shares and (ii) 2,357,303 Warrant Shares. Michael Wachs serves as the sole Managing Member of Esousa Group Holdings LLC and has voting and dispositive control over the securities held by Esousa Group Holdings LLC. The address for Esousa Group Holdings LLC and Michael Wachs is 211 E 43rd St, Suite 402, New York, NY 10017.
(3)	Includes (i) 119,521 Common Shares and (ii) 301,102 Warrant Shares.
(4)	Includes (i) 298,802 Common Shares and (ii) 752,754 Warrant Shares.
(5)	Includes (i) 119,521 Common Shares and (ii) 301,102 Warrant Shares.
(6)	Includes (i) 119,521 Common Shares and (ii) 301,102 Warrant Shares.
(7)	Includes (i) 169,321 Common Shares and (ii) 426,561 Warrant Shares.
(8)	Includes (i) 9,960 Common Shares and (ii) 25,092 Warrant Shares.
(9)	Includes (i) 9,960 Common Shares and (ii) 25,092 Warrant Shares.
(10)	Includes (i) 199,201 Common Shares and (ii) 501,836 Warrant Shares.
(11)	Includes (i) 199,201 Common Shares and (ii) 501,836 Warrant Shares.
(12)	Includes (i) 199,201 Common Shares and (ii) 501,836 Warrant Shares.
(13)	Includes (i) 199,201 Common Shares and (ii) 501,836 Warrant Shares.
(14)	Includes (i) 199,201 Common Shares and (ii) 501,836 Warrant Shares.

Under the terms of the shares of Series B Preferred Stock and the Common Warrants, the Selling Stockholders may not convert the shares of Series B Preferred Stock or exercise the Common Warrants to the extent (but only to the extent) such Selling Stockholders, together with its affiliates and any other person whose beneficial ownership of Common Stock would be aggregated with the Selling Stockholder’s for purposes of Section 13(d) of the Exchange Act, would beneficially own in excess of 9.9% or 9.99%, respectively, of our then issued and outstanding shares of Common Stock following such conversion or exercise. The number of shares of Common Stock in the second, third and fourth columns do not reflect these limitations. The Selling Stockholders may sell all, some or none of its Shares in this offering. See “Plan of Distribution.”

Name of Selling Stockholder	Common Stock Owned Prior to this Offering		Common Stock to be Sold in this Offering		Common Stock Owned After this Offering		Percent
Esousa Group Holdings LLC ⁽¹⁾		11,615,098		28,500,000		3,988,338		4.97	%
Sixth Borough Capital Fund LP ⁽²⁾		298,356		750,000		97,653		*
Robert D. Keyser, Jr. ⁽³⁾		487,088		750,000		286,385		*

(1)

Includes (i) 4,460,095 shares of our Common Stock issuable upon the conversion of Series B Preferred Stock based upon an assumed conversion price of $2.13 per share, (ii) 6,690,142 shares of our Common Stock issuable upon the exercise of Common Warrants based upon the exercise price as of the date of the Securities Purchase Agreement, (iii) 719 held shares of our Common Stock, and (iv) 464,142 shares of our Common Stock issuable upon the exercise of additional Common Warrants at an exercise price of $5.405 per share. Excludes the number of ELOC Common Shares that Esousa may be required to purchase under the ELOC Purchase Agreement, because the issuance of such shares is solely at our discretion and is subject to conditions contained in the ELOC Purchase Agreement, the satisfaction of which are entirely outside of Esousa’s control. The purchases made by Esousa pursuant to the ELOC Purchase Agreement are also subject to a 9.99% beneficial ownership limitation. Michael Wachs serves as the sole Managing Member of Esousa Group Holdings LLC and has voting and dispositive control over the securities held by Esousa Group Holdings LLC. The address for Esousa Group Holdings LLC and Michael Wachs is 211 E 43rd St, Suite 402, New York, NY 10017.

(2)

Includes (i) 117,370 shares of our Common Stock issuable upon the conversion of Series B Preferred Stock based upon an assumed conversion price of $2.13 per share, (ii) 176,055 shares of our Common Stock issuable upon the exercise of Common Warrants based upon the exercise price as of the date of the Securities Purchase Agreement, and (iii) 4,931 shares of our Com

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