Vancouver, BC., Aug. 13, 2024 (GLOBE NEWSWIRE) -- Draganfly Inc. (NASDAQ: DPRO) (CSE: DPRO) (FSE: 3U8) (“Draganfly” or the “Company”), an award-winning, industry-leading drone solutions and systems developer, is pleased to announce its second quarter financial results.
Key Financial and Operational Highlights for Q2 2024:
- Revenue for the first quarter of 2024 was $1,732,990 which represents a 30.3% quarter over quarter increase. Product sales of $1,387,350 made up the bulk of the revenue with the remainder coming from drone services. This is compared to total Q2 revenue in 2023 of $1,899,039.
- Gross profit for Q2 2024 was $461,673 which represents a 64.9% increase quarter over quarter and was down 1.2% over the same period in 2023. Gross margin percentage for Q2 2024 was 26.6% up from 24.6% in Q2 2023. Gross profit would have been $596,083 and gross margin would have been 34.4%, not including a one-time write down of inventory of $134,410. The increase is due to the sales mix of the products sold.
- The Company recorded a comprehensive loss of $7,097,638 in the second quarter of 2024 compared to a comprehensive loss of $6,890,812 in the second quarter of 2023. The comprehensive loss for the period includes non-cash changes comprised of a positive change in fair value derivative of $2,604,394, a write down of inventory of $134,410, and an impairment gain on notes receivable of $4,110 and would otherwise be a comprehensive loss of $4,362,944. Contributors to the year-over-year decrease are lower office and miscellaneous, professional fees, research and development, and wages.
- Cash balance on June 30, 2024 of $5,290,547 compared to $3,093,612 on December 31, 2023.
- Draganfly Inc. launched its FlexModular FPV UAV System, designed for Government and Military use in aerial reconnaissance and surveillance. The NDAA-compliant system features quick-exchange assemblies, offering flexibility in mission requirements with payload capacities up to 6.5 lbs and a maximum speed of 93 mph. It includes various flight modes, GPS-denied position hold, and an ultra-low latency video feed. The system was demonstrated and used for training to over 200 military personnel during a March 2024 event at Fort Liberty, North Carolina. Shipments to early adopters began in Q2 2024, with the system showcased at Special Operations Forces (SOF) Week 2024. CEO Cameron Chell emphasized the importance of FPV drones in defense, citing the company’s experience in Ukraine and the Drone Racing League.
- First Atlantic Nickel Corp. partnered with Draganfly Inc., a leading drone solutions company, to utilize advanced drone survey technology for exploring a potential large-scale nickel deposit in Atlantic Canada. The project aimed to identify zones rich in awaruite, a highly magnetic nickel-iron alloy, within a 30km nickel-bearing system. This collaboration was part of First Atlantic Nickel's strategy to secure North America's critical mineral supply chains. Draganfly's drones, equipped with specialized sensors, provided high-resolution data essential for the 2024 summer exploration and drilling programs. Both companies emphasized the importance of drone technology in reducing costs, speeding up data collection, and enhancing strategic insights in mineral exploration.
- Draganfly deployed a record number of drones crews and equipment in support of Wildfire Crews as part of its Government Wildfire Contract.
- Draganfly appointed Kim G C Moody as a new Director, bringing extensive expertise in tax law and governance. Scott Larson has been named Interim Chair of the Board, while Olen Aasen takes on the role of Lead Independent Director.
- Draganfly Inc. announced the closing of its offering of 13.5 million units, each consisting of one common share and one warrant, at a price of $0.259 per unit, raising approximately $3.5 million in gross proceeds. The warrants are immediately exercisable at $0.259 per share and will expire in five years. Maxim Group LLC acted as the sole placement agent. Draganfly plans to use the net proceeds for general corporate purposes, including growth initiatives, product development, and potential acquisitions. Additionally, the company amended the terms of previously issued warrants, reducing the exercise price and changing the functional currency to Canadian dollars. The offering was made under a U.S. shelf registration statement and a Canadian base shelf prospectus, with securities sold exclusively in the United States.
- Draganfly Inc. announced a strategic collaboration with ParaZero Technologies Ltd. To enhance UAV safety in medical and emergency response operations. This partnership integrates ParaZero’s advanced safety systems into Draganfly’s UAVs, improving safety for projects like Mass General Brigham’s Home Hospital UAV Delivery Pilot and Squamish Search and Rescue. The collaboration enables safer operations over people and beyond visual line of sight (BVLOS) by incorporating parachute systems that mitigate accident risks, boosting the effectiveness of UAVs in challenging missions. Both companies emphasize the importance of advancing UAV safety standards to support critical missions, with Draganfly CEO Cameron Chell highlighting the partnership’s role in providing safer aerial support tools for emergency responders. ParaZero CEO Boaz Shetzer echoed this sentiment, stating that the collaboration will lead to better outcomes in time-sensitive and safety-critical situations.
- Draganfly Inc. announced a memorandum of understanding with Squamish Search and Rescue (SSAR), appointing Draganfly as SSAR’s UAV solutions partner. SSAR, one of Canada's busiest search and rescue organizations, will collaborate with Draganfly through joint proof-of-concept and field training exercises beginning in Spring 2024. The partnership aims to enhance SSAR's capabilities by integrating UAV technology, providing expert training, cutting-edge equipment, and specialized solutions tailored to SSAR’s needs. This collaboration is designed to validate and operationalize UAV use in search and rescue missions, ensuring swift and efficient aid delivery in challenging terrains. SSAR’s Director of Technology, Lianne Girard, expressed eagerness to explore how Draganfly's solutions could improve their operations. Draganfly CEO Cameron Chell highlighted the partnership as a testament to the company's commitment to using advanced technology for humanitarian causes, aligning with their mission to save time, money, and lives.
- Draganfly Inc. announced a collaboration with Doodle Labs and UXV Technologies to enhance UAV operations for law enforcement, first responders, and military applications. This partnership integrates Draganfly’s Commander 3XL UAV, Doodle Labs’ Helix Mesh Rider®️ Radio, and UXV Technologies’ Soldier Robotic Controller (SRoC) ground control station, creating a secure and adaptable platform for demanding missions. The combined technologies offer dynamic interference-avoidance, anti-jamming capabilities, and a rugged, user-friendly control interface. This collaboration underscores a commitment to innovation, aiming to set new standards for operational excellence, security, and reliability in challenging environments. Leaders from all three companies highlighted the significance of this partnership in advancing UAV capabilities to meet the critical demands of their clients.
Draganfly will hold a shareholder update and earnings call on August 13, 2024 at 2:30 p.m. PDT / 5:30 p.m. EDT.
Registration for the call can be done Here
Selected financial information is outlined below and should be read with Draganfly’s consolidated financial statements for the quarter ended June 30, 2024, and associated management discussion and analysis, which will be available under the Company's profile on SEDAR at www.sedar.com and filed on EDGAR at www.sec.gov.
| Three months ended June 30, | Six months ended June 30, | |||||||||||
| 2024 | 2023 | 2024 | 2023 | |||||||||
| Total revenues | $ | 1,732,990 | $ | 1,899,039 | $ | 3,062,571 | $ | 3,500,525 | ||||
| Gross Margin (as a % of revenues) (1) | 26.6 | % | 24.6 | % | 24.2 | % | 26.0 | % | ||||
| Net income (loss) | (7,091,549 | ) | (6,908,964 | ) | (8,955,537 | ) | (13,976,590 | ) | ||||
| Net income (loss) per share ($) | ||||||||||||
| (0.10 | ) | (0.16 | ) | (0.14 | ) | (0.36 | ) | ||||
| (0.10 | ) | (0.16 | ) | (0.14 | ) | (0.36 | ) | ||||
| Comprehensive income (loss) | (7,097,638 | ) | (6,890,812 | ) | (8,982,054 | ) | (13,987,807 | ) | ||||
| Comprehensive income (loss) per share ($) | ||||||||||||
| (0.10 | ) | (0.20 | ) | (0.14 | ) | (0.40 | ) | ||||
| (0.10 | ) | (0.20 | ) | (0.14 | ) | (0.40 | ) | ||||
| Change in cash and cash equivalents | $ | 950,811 | (6,647,812 | ) | $ | 2,196,935 | $ | 1,173,657 | ||||
