DEFSEC Technologies Inc.

Notes:

(1) Prototype Version 1 (V1) and Version 2 (V2), integration, and testing have been completed. Next Generation BLISS™ prototyping is ongoing with units available for qualification and customer trials.

(2) Includes field testing, prototype V2, Next Generation [Soldier Proof of Concept 8 ("SPOC8")] and BLISS™ Prototype.

(3) Low-Rate Initial Production ("LRIP"). Includes final product development, LRIP, and sales demonstration units. A product is not ready for pre-production until it reaches Technology Readiness Level ("TRL") of 5 to 6. Version 2 has been delivered to the customer for integration under this phase, SPOC 4 prototypes have been delivered to a North American customer for range-trials, Next Generation (SPOC 8) prototypes have been integrated and are undergoing testing and demonstration at DEFSEC, BLISS™ prototypes have been delivered for customer testing at U.S. Army Test Center.

(4) Awaiting customer validation and follow-on orders.

(5) Includes the cartridges for the devices. Low-rate initial production timeline extended by one to two quarters in order to include product refinements. Higher volume production anticipated timelines could be longer if modifications are required as a result of the ATF confirmation of classification to reduce barriers to sales to the civilian personal safety market.

We consider a product to have reached the commercialization phase when we have begun LRIP and we have a sales, marketing, and distribution plan for the product. Commercialization may precede a first sale of the product.

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DEFSEC TECHNOLOGIES INC.MANAGEMENT’S DISCUSSION AND ANALYSISTHREE AND NINE MONTHS ENDED JUNE 30, 2026