DFTS Defense Technology (fka DFTS)

[prosmith]

Have you been buying lately?

[preship 1]

DFTS and AMBITAL
http://www.ambital.com/default.htm

[headnorthw]

new contracts are hard to come these days.

[wzebra33]

I only wish i had more shares to sell you at .11 and .10 so good luck,In december i was lead to and turnaround growing company and i waited and the shares will be cheap a year from now . Could be .01

[kaje22]

you are quite welcome.

Kaje22

[socalmd123]

excuse me

you guys realize that was an ammended 2004 report you
sold your shares so cheap for.

That was NOT the 2Q

thanks for the cheap shares

[wzebra33]

And lets not forget the report that came out today,

2005

Annual Report



ITEM 6 - MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
GENERAL
The following discussion should be read in conjunction with our consolidated financial statements and accompanying notes, included herein. Certain statements contained herein may constitute forward-looking statements, as discussed at the beginning of Part I of this Annual Report on Form 10-KSB. Our actual results could differ materially from the results anticipated in these statements as a result of a variety of factors, including those discussed in our filings with the Securities and Exchange Commission and as discussed in the section under the heading "Forward Looking Statements" in this Report.

RESULT OF OPERATIONS
Net sales decreased 27% from $950,656 in fiscal year 2003 to $695,389 in 2004. The decline in data sales due to economic factors and lack of working capital, was partially offset by $177,000 in sales by the Company's newly formed Security Division.

Gross profit amounted to $207,766 in fiscal 2004 versus $544,768 in 2003. Gross profit margin decreased to 30% in 2004 from 57% in 2003. The fiscal year 2004 gross profit margin was more representative of the Company's typical gross margin as the fiscal 2003 gross margin benefited from a the completion of a major, non-recurring contract that called for the Company to provide labor only, which resulted in a significantly higher gross margin. Additionally, the gross margin on sales of the Company's newly formed Security Division was only 3% as this represented the Company's first effort in this new market.

Selling, general and administrative expenses increased approximately 376% to $3,815,393 for the year ended June 30, 2004, from $801,127 for the year ended June 30, 2003. The increase is primarily related to $2,772,665 of non-cash charges for consulting expenses and officer's compensation related to the granting of common stock and options to certain individuals. Additionally, as a result of the Company's efforts to become current in its public reporting requirements, professional fees were $308,784 in fiscal 2004 versus $4,319 in fiscal 2003.

Interest expense amounted to $427,254 in 2004 versus $363,643 in 2003. Interest expensed increased in 2004 due to the beneficial conversion feature of $83,000 related to a note payable to a related party.

Depreciation and amortization included in selling, general and administrative expenses, was $5,360 in 2004 and $1,440 in 2003.

The Company had a net loss of $2,200,599 in 2004 compared to a net loss of $492,495 in 2003.

The net loss applicable to common shareholders was $2,326,072 in 2004 and $636,627 in 2003 primarily due to the dividends declared on convertible preferred stock.

LIQUIDITY AND FINANCIAL CONDITION AS OF JUNE 30, 2004
The Company has current assets of $93,165 (including $3,920 in cash) compared with current liabilities of $4,486,259, resulting in a working capital deficit of $4,393,094 as of June 30, 2004. This compares with current assets of $185,197 in 2003 and a working capital deficit of $6,366,781. Current liabilities decreased mainly due to the settlement of the Company's obligation with its asset-based lender. The Company's working capital is clearly not sufficient to meet the Company's current liquidity needs. The Company has relied upon cash flow generated from operations, loans from third party lenders, and private sales of equity securities to sustain itself during the year.

The Company's cash balance at June 30, 2003 decreased $7,968 from $11,888 to $3,920 as of June 30, 2004. The decrease was the result of a combination of cash used for repayment of loans totaling $327,572, investing activities totaling $28,721 and negative cash flows from operations totaling $489,140, offset by direct cash proceeds from shareholder loans and advances from the Company's asset-based lender totaling $477,465; indirect loan proceeds (paid directly to vendors and creditors) of $115,125 and proceeds from common stock sales totaling $360,000. Operating activities for the year ended June 30, 2004 exclusive of changes in current assets and liabilities required $1,080,651, offset by a decrease in receivables and other current assets of $84,064, and an increase in accounts payable and accrued liabilities of $507,447.

The Company's capital resources include private stock sales and loans and advances from principal shareholders. During the year ended June 30, 2004, the Company borrowed $264,000 under the terms of its convertible loan agreements with Augustine. In December 2003, Augustine converted $174,000 of loan principal, including $75,000 borrowed during fiscal 2003, into shares of common stock. These agreements provide for additional borrowings of $251,000, all of which may be converted to common stock. Additionally, during the year ended June 30, 2004, the Company borrowed approximately $125,000 from an existing shareholder, of which approximately $115,000 was paid directly to the Company's vendors and creditors.

During the fiscal year ended June 30, 2002, the Company decided to self-insure against its liability risks. There have been no claims against the Company with respect to any insurable risks. In February 2004, the Company purchased property and general liability insurance.

The Company is currently implementing a business plan that it believes will strengthen the balance sheet, increase revenue and return it to profitability. The plan involves a series of initiatives. The Company is seeking to restructure its liabilities by negotiating with secured and unsecured creditors and vendors for forgiveness of certain outstanding debt, or to exchange debt for equity. Through the end of fiscal 2004, the Company has settled a total of approximately $2 million in exchange for cash payments of approximately $37,000 and new equity issuances valued at $472,000, resulting in a gain of approximately $1.5 million. The Company continues to seek settlements of outstanding debt.

In the fourth quarter of fiscal 2004, the Company received an opinion from its counsel that pursuant to applicable commercial law, certain of its trade obligations are statutorily unenforceable after periods of four or six years, as applicable, from the date of their incurrence. Based on this representation, the Company believes that it is remote that creditors would prevail in any collection action and accordingly, has written off $230,597 of accounts payable which amount is shown as a gain on write-off of statutorily unenforceable liabilities for the year ended June 30, 2004. For subsequent periods, the Company will record any additional write-offs during the quarter in which the statutory period is exceeded.

The Company is actively engaged in raising capital through private investors. This will provide additional working capital and allow it to increase revenue and pursue more profitable projects. In order to facilitate this process, in April 2004 the Company's CEO, a major shareholder, contributed six million shares of the Company's common stock to its treasury for no consideration. During fiscal 2004, the Company raised $360,000 through sales of common stock. The Company has expanded into the security business which it believes will complement and enhance its current product offerings and greatly expand its customer base. The Company may also pursue strategic acquisitions that provide it with growth and vertical integration within this new area. The Company may benefit from additional liabilities becoming statutorily barred from collection.

If management is not successful in implementing the initiatives discussed in the preceding paragraphs, it could result in the severe curtailment of the Company's operations and/or the seizure of its assets and/or its being forced into bankruptcy. There is no assurance that the Company will be successful in accomplishing its objectives. The accompanying financial statements do not include any adjustments that might result from the outcome of this uncertainty.

[wzebra33]

I sold at a 50% loss a month ago and the company would have to come up with a lot of contracts to offset the comming dilution.I held the stock for 8 months waiting for a upturn and when they issue more stock and don`t have new meaty contracts,it could be .01 a year from now.I hope i`m wrong abought this but you have to go with your gut sometimes.
Sorry for your loss.

[kaje22]

As on the NMKT board
Dead Money
Selling all my shares of DFTS and NMKT! Going to take whatever I have left out.
Kaje22

[wzebra33]

Lower highs and lower lows and more shares to newmarket shareholders to be distributed , the downward pressure will pickup when newmarket shareholders can sell there dividend shares.This company needs contracts more contracts or the shareprice is in real poop.

[headnorthw]

The sudden releases of frequent PRS in May and early June, then it's so quiet ever since. That's not the way you treat your shareholders. Damn, maybe I'm holding another loser.

[headnorthw]

The question remains "Can it?, will they?".

[new5005]

I'll be glad to dump at .15

[headnorthw]

I have been watching NMKT trading and it's a good stock to trade so far. I just watched and didn't take a bite at all. Shame on me! As far as dfts concerned, no PRs for 13 days now. Maybe you're right. Do you think it can reach .20 again? Unless we see strong volumes, I don't think it's going a lot higher.

[cathyd]

Looks to me like they are holding up on news ...to their
advantage.

[cathyd]

Hope they can get it moving like nmkt.

[headnorthw]

Penny stocks are on the move recently, both on volumes and price. Let's hope this sleeper will join the action.

[headnorthw]

I talked with IR before and they told me the shares won't be distributed to NMKT shareholders on July 1. Actually, it takes a few more months to do so. I hope they can issue out some significant contracts they've hoped while back in early May. Instead of putting fluff PRs, they should issue out material ones. Ever since they decided to release those useless ones very frequently, 8 days of silence makes you feel ignored again. This stock need volumes.

[wzebra33]

We will see some price movement soon,the record date for the newmarket dividend is july 1st so the vollume will pickup soon,Where the price will be on the end of trading july 2nd is unclear, It is giving out more shares so more float!
The boring days are soon to be over with newmarket involved in the company.

[headnorthw]

Now, they keep shut up for 8 days now, surprise! Back to under .10 again. Just wonder how long this sideway trading stop. All the massive PRs over the last couple months went wasted. I noticed some penny stocks are getting volumes lately. Ours are still sucks here with very light volume. Bored.

[headnorthw]

Another insignificant PR occurred in the last hour of trading! The company better issue out something significant -- people like real stuff.

[headnorthw]

But the stock still lagging behind, actually stay about the same for months. By your words, would you like them to shut up? Hope not, but would like them to announce something significant, not these.

[wzebra33]

First you don`t here anything for months and now they won`t shut up.
A 180() turn.

[headnorthw]

Too many fluff PRs without substance and real stuffs. The intention is very clear, but the company can't get the stock price going up as buyers aren't rush into it. The company needs significant PRs instead of these, what, empty(stuff) news. If you can announce a couple of $$$ contracts and some important partnerships with big fishes, the stock will jump and people will rush to buy. Anyway, the company is trying to making awareness, hopefully it will hit when it's making some noise.

[kaje22]

Does anybody know why DFTS and NMKT are not involved with this conference!!!!!!!!!!!!!!!!!!!!!!!1


Kaje22



Rodman & Renshaw Techvest 2nd Annual Security & Connectivity Conference June 15th; Join Us for One of the Premier Events on the Technology Calendar!

June 09, 2005 08:01:02 (ET)


NEW YORK, Jun 09, 2005 (BUSINESS WIRE) -- Rodman & Renshaw is pleased to announce that its 2nd Annual Rodman & Renshaw Techvest Security & Connectivity Investor Conference will take place at the St. Regis Hotel in New York City on June 15th, 2005.

The Conference, which brings together over 40 emerging growth security and connectivity companies, is a unique opportunity for companies to showcase their technologies and for the investment community to access some of the most exciting opportunities in the security and connectivity space. This is a great opportunity to witness companies evolving from cutting edge, innovative research platforms to companies with products paramount to today's needs.

The 2nd Annual Rodman & Renshaw Techvest Security & Connectivity Conference follows on from the success of last year's event held in New York on June 7th, 2004. More than 500 delegates, including institutional investors, venture capitalists, and senior corporate executives as well as experts from the scientific and government communities, attended the event.

The chosen companies will present their strategies, product portfolios and financial outlook in an array of security markets including biometrics, digital network protection and physical & perimeter security.

The format of the Conference will include company presentations, breakout sessions, and one-on-one meetings with presenting companies. The Conference also features Tom Ridge, the Former Secretary of Homeland Security, as a keynote speaker.

For Registration and Further Information, please contact Lily Khaykina at 212-356-0529 or email: [e-mail]. You may also visit: www.rodmanandrenshaw.com/security, or register at the door.

Conference attendees may qualify to attend a premier conference dinner.

Note to editors:

Rodman & Renshaw, LLC is a privately-held, full-service investment bank committed to fostering the long-term success of emerging growth companies through capital raising, strategic advice, insightful research, and the development of institutional support. During the last two years, Rodman & Renshaw completed over 60 financing transactions, totaling over $1 billion. Rodman & Renshaw concentrates on emerging growth companies in the life science and technology sectors.

Registered presenting companies:

Aliroo Ltd., Astrata Group Incorporated (ATTG, Trade), AVI BioPharma, Inc. (AVII, Trade), AXCESS International Inc. (AXSI, Trade), AXS-One Inc. (AXO, Trade), Biosensor Applications Sweden AB, Cenuco, Inc. (ICU, Trade), deltathree, Inc. (DDDC, Trade), Digital Angel Corporation (DOC, Trade), EasyLink Services Corp. (EASY, Trade), ECSI International, Inc. (EKCS, Trade), Electro Energy, Inc. (EEEI, Trade), E-Z-EM, Inc. (EZEM, Trade), ForeScout Technologies, Inc., GoRemote Internet Communications, Inc. (GRIC, Trade), hi/fn, inc., (HIFN, Trade), Hollis-Eden Pharmaceuticals, Inc. (HEPH, Trade), I.D. Systems, Inc. (IDSY, Trade), ImageWare Systems, Inc. (IW, Trade), Integrated Security Systems, Inc. (IZZI, Trade), Intellisync Corporation (SYNC, Trade), Interactive Intelligence, Inc. (ININ, Trade), j2 Global Communications, Inc. (JCOM, Trade), Laser Detect Systems Ltd., NAPCO Security Systems, Inc. (NSSC, Trade), Onset Technology, Peregrine Pharmaceuticals, Inc. (PPHM, Trade), Prismedical Corporation, SafeNet, Inc. (SFNT, Trade), SAFLINK Corporation (SFLK, Trade), Secured Services, Inc. (SSVC, Trade), Smith & Wesson Holding Corporation (SWB, Trade), Smith Micro Software, Inc. (SMSI, Trade), Stratos International, Inc. (STLW, Trade), Supercom Ltd. (SPCB.F, Trade), TeleCommunication Systems, Inc. (TSYS, Trade), Telkonet, Inc. (TKO, Trade), Trintech Group PLC (TTPA, Trade), VASCO Data Security International, Inc. (VDSI, Trade), WindsorTech, Inc. (WSRT, Trade), Yak Communications, Inc. (NASDAQ: YAKCE), Zix Corporation (ZIXI, Trade).

SOURCE: Rodman & Renshaw


Rodman & Renshaw
Lily Khaykina, 212-356-0529
[e-mail]

[wzebra33]

Check this post i copied,are the numbers right?

Going into the outstanding shares i come up with a 21% dilution when newmarket gets there dfts dividend, .02 at todays price.
Newmarket outstanding shares 84.40 mil One dfts share for every 10 of newmarket = 8.44 mil shares will be given out.
Dfts outstanding shares = 39.79 mil now ,after the newmarket dividend Dfts outstanding shares will be 48.23 mil or a 21% dilution.
I beleave the shock price will go down buy this amount the day of the distribution on heavy vollume.

[headnorthw]

The company is trying hard, but still lacking interests from the street. Homeland security stocks are calming down, I guess. Keep wondering what will move this stock. More patience, I hope.

[new5005]

I'll b ebusy with NWAU for the time being.

[headnorthw]

All we can do is hope! Penny players are not looking on this stock despite a flurry of PRs came out in this month. Maybe we need contracts in the millions to attract attention. Not feeling good at the moment. What happen to the volumes back in December when it announced the acquistion plan? If this stock is going to bounce upward, it needs volumes. Just praying.

[new5005]

hoping for .15 to break even myself

[wzebra33]

Not yet ,it sounds like they need to sell more stock,
(not good)

[headnorthw]

Are you guys already out of this pos? eom.

[headnorthw]

This stock is like craps. A good contract came out today and we were on our way down again. Maybe we should give it up and move on. Very low volumes everyday. Bad volume today even after such good contract. Patience may be paid with more pains in the future. Sorry for the turn, but it really sucks.

[new5005]

He'll remain on the board. He admitted someone with experience
is better off. Kind of like asking for a demotion

[wzebra33]

The news today;does it mean the outgoing ceo will be unloading massive amounts of stock soon?
It could drive down the price a lot.

[new5005]

That was good news, now hopefully we'll move up.

Defense Technology Systems Discusses Homeland Security Focus and Corporate Strategy With PRBroadcast.com in Online Interview


PALM BEACH, FL--(MARKET WIRE)--May 11, 2005 -- Defense Technology Systems, Inc. (OTCBB:DFTS) today announced that the Company is presently featured in an online interview at www.PRBroadcast.com. Defense Technology Systems Boardmember Phillip Verges discusses the Company's focus on Homeland Security and financial forecasts for 2005.
The Defense Technology Systems interview is available at http://www.PRBroadcast.com .To access the interview, click on "Join Now/Log In" in the upper right corner. After providing your name, e-mail address, and creating a password, click on the "send" button at the top of the page. This will register you and send you back to the PRBroadcast.com home page. You may access any CEO Interview or Company name by "trading symbol" (DFTS) or Company name located in the upper left portion of the PRBroadcast.com web page.


About Defense Technology Systems, Inc.

Defense Technology Systems, Inc. is an international provider of data and security solutions with three operating divisions.

The Company's DWS Defense Systems division was created in response to growing international security concerns. DWS offers a broad portfolio of security-related products, including ballistic glass, video surveillance, infrastructure security and associated security systems. The highly skilled DWS Defense Systems team, working in collaboration with its partners, will design, develop, manufacture, install and market specialty products, equipment, and systems for the safety and security needs of all sectors of the domestic and international marketplace. DFTS recently acquired a majority interest in DCI Corporation, a leading edge technology company with over 15 years of experience in engineering specialized hardware and software solutions when commercial-off-the-shelf (COTS) products do not fulfill the critical requirements of enterprise, military or government organizations. DCI's experience has earned them the reputation as a respected Homeland Security solution provider with a host of innovative proprietary technologies.

About PRBroadcast.com

PRBroadcast.com presents detailed interviews with CEOs, Company CFOs and Analysts which provides publicly traded companies with production services and distribution of their corporate messages in streaming video/audio format. Your corporate message is delivered firsthand to all major newswires, institutional and private investors, venture capitalists and buy and sell analysts, all at the click of a mouse. Using our state of the art webcasting services, PRBroadcast.com can feature and host CEO interviews, business updates, earning conference calls, analyst presentations, product launches and other special announcements directly to your audience's desktop, at minimal cost compared to video or telephone conferencing. PRBroadcast.com will provide public companies with the means and ability to reach far into the investment community with a direct message to shareholders and potential investors, through our streaming media technology, active databases of institutional and individual investors, analysts, brokerage firms and large affiliate network while providing the most impact for the communications dollar.

Statements contained herein, other than historical data, may constitute forward-looking statements. When used in this document, the words "estimate," "project," "intends," "expects," "believes" and similar expressions are intended to identify forward-looking statements regarding events and financial trends, which may affect the Company's future operating results and financial position. Such statements are not guarantees of future performance and are subject to risks and uncertainties that could cause the Company's actual results and financial position to differ materially from those included within the forward-looking statements. A complete disclosure of all fees paid to PRBroadcast.com is available on the Company's disclaimer page as required by Section 17B of the SEC. The Private Securities Reform Act of 1995 provides a "safe harbor" for forward-looking statements. Certain information included in this press release (as well as information included in written statements to be made) contain statements that are forward-looking, such as those relating to consummation of the transaction, anticipated future revenue of the Company's and success of current public offerings. Such forward-looking information involves important risks and uncertainties that could significantly affect anticipated results in the future and, accordingly, such results may differ materially from those expressed in any forward-looking statements.



Contact:
For a complete corporate profile on Defense Technology Systems,
please visit http://www.PRBroadcast.com
or contact the Company directly at: 404-261-1196

[wzebra33]

More news today it looks better than in the past ,more comming PRS no silence any more.
http://biz.yahoo.com/iw/050511/086479.html

[new5005]

finally something to look forward to

[wzebra33]

Good news today
http://biz.yahoo.com/bw/050510/105719.html?.v=1

[new5005]

We'll see when the shorts vacation in the summer....along
with the investors. NWAU is the only thing in my portfolio
doing very well.

[headnorthw]

What's your thought on dfts, regards its trend? Trending down? Can we hold above 9 cents? SBSH has been putting a cap on the stock price lately, but he left today and move up to .20. Then there're 5 MMs at .11, of which I think it's the 50day moving average, so no surprise. 4 MMs stand at .09 -- don't know how strong they are. I wish we have a good chart reader here so that he can share his view. Again, volume sucks! Do we anything good coming again shortly? If not, are we flirting with perhaps new lows or we can still hold above 9 cents? Investing in this stock is not fun so far. I would rather play momentum stocks. Anyway, whatever happens happen. STill can't figure out how this stock will unfold. GLTA! Shorts certainly made a kill when they shorted at above .20s, are they cover yet or still holding? Maybe we'll see next two weeks.

[new5005]

Newmarket is making aquisitions, and many of them ,there's
a reason why they wanted to dump dfts.

[headnorthw]

You want 10day moving average to go over 30day and 50day moving averages. We're just so close in doing so, but it keep from doing so. Maybe if we can have some good contracts coming together in series of several days, we should have a good run. Just hope it can stay above .09. By the way, short-covering helps if we can get them in doing so.

[wzebra33]

I have been holding this from december and even and co bash it ,but phil is on the board now and i will wait for a better price to get out.It is shorted so it stays down but no bad news so i will hold.Phil will bring it more contract opportunities.

[headnorthw]

Will this stock ever go up since the last spike to .26? I think I should give up on watching it for some time! It just keep lagging behind. See you guys maybe in a year! Sleepy.

[new5005]

around 546.oo$ profit.....maybe

[wzebra33]

A new contract (yes it is true)
http://biz.yahoo.com/bw/050502/25794.html?.v=1

[headnorthw]

I guess he really want this to go up, though his stupid action is really a wasted effort. Any way, he gave us an up day when the market fair very badly today. The only way for this stock to go up is when the company starts to issue contract announcements or significant partnerships. Sideline buyers are hesitated to get in and our volumes are sucks. I wonder if it's the company holding contract announcements for whatever purposes they have.

[wzebra33]

I cannot beleave someone make a 100 share trade___$10.50 (LOL)+trade fee(LOL)

[new5005]

Zzzzzzzzzzzzzzzzz....