Defense Solutions Holding, Inc. (DFSH.OB) supplies, refurbishes, modernizes and maintains military vehicles and equipment worldwide. In May the company announced that it signed two distribution agreements. One of them was with Dynamic Defense Materials and another with iRobot. However, these were only the press releases and are still not justified by reporting the events to the SEC. For this reason, I have suspicions that the distribution agreements might be coming out of the blue sky. The company still has some time to file 8-K forms, so let’s wait and see what happens.
Another bunch of important news on the company is that DFSH has paid 50,000 free trading shares to Shazam Stocks for promoting its stock. With the current price of $0.46, that would be $23,000. In addition, the company released its annual report though it was late to do that. Unfortunately, this report does not show any improvement of the financial situation of Defense Solutions.
From 2007 to 2008, the current assets of the company sank drastically from $1,055,744 till $306,119. In the meantime, liabilities ballooned twice: in 2007 it constituted over 2 million dollars, while a year later it was over 4 million. Besides, major reverse is seen in operating loss. In a single year it has increased by 73%.
All the indicators mentioned above signify that the Defense Solutions Holdings is currently having serious difficulties. It looks like the economical crisis has affected the company noticeably.