Vancouver, BC, May 27, 2021 (GLOBE NEWSWIRE) -- Draganfly Inc. (OTCQB: DFLYF) (CSE: DFLY) (FSE: 3U8) (“
Draganfly” or the “
Company”), an award-winning, industry-leading drone solution developer and operator is pleased to announce its first quarter financial results. Revenue growth for the first quarter was driven by a combination of organic growth, the acquisition of Dronelogics Systems Inc. (“
Dronelogics”), and sales from COVID-19 screening products.
Key Financial and Operational Highlights for Q1 2021:
- Revenue growth for the first quarter year over year increased 209.8% or $1,042,679 from $497,057 in the first quarter of 2020 to $1,539,736 with the bulk of this revenue coming from product sales. Engineering services revenue was down substantially year over year in the first quarter of 2021 due to the continued impact from one of the Company’s Engineering Services customers that has been effected by the pandemic. Drone services sales of $409,963 made up most of the balance of the revenues.
- Gross margin percentage for Q1 2021 was 33.4% compared to 22.2% in Q4 2020. The increase is due to the sales mix of the products sold. Gross margin was down 62.0% year over year in the first quarter as product sales tend to have a much lower margin than those of the the companies traditional custom engineering services which decreased in volume largey due to COVID-19.
- Cash balance on March 31, 2021 of $21.1 million compared to 2.0 million on December 31, 2020.
- Raised US$16,450,000 million through the issuance of securities under the Company’s Regulation A offering filed with the U.S. Securities and Exchange Commission.
- The accounting treatment of a $41.8 million non-cash liability from USD warrants that were issued during the Company’s Regulation A Offering contributed to the comprehensive loss for the Q1 2021 $44.9 million compared to $3.7 million in Q4 2020. The year over year comprehensive loss increased 4,020.4% as Q1 2020 did not have the treatment of the USD warrants from the Company’s Reg A financing. Q1 2020 also had less office and miscellaneous expenses. The Company’s working capital deficit of $20,834,520, as at March 31, 2021, would be a working capital surplus of $20,184,652, if the non-cash liability for outstanding USD warrants were excluded. The Company’s working capital as at December 31, 2020 was $1,214,371.
- Secured $1 million flight services contract to deploy EagleEye™ AI flight services with Windfall Geotek Inc. Windfall Geotek flies mining prospect with magnetometers with data placed into EagleEye™ and provides recommended targets for mining companies to drill.
- Closed an acquisition of assets from Vital Intelligence Inc. on March 25, 2021, in consideration for (a) a cash payment of $500,000 with $250,000 paid at closing and $250,000 to be paid on the six-month anniversary date of closing; and (b) 6,000,000 units of the Company with each unit being comprised of one common share of the Company and one common share purchase warrant. The units are subject to escrow with 1,500,000 units released at closing and the remainder to be released upon the Company reaching certain revenue milestones received from the purchased assets. Each warrant entitles the holder to acquire one common share for a period of 24 months at an exercise price of $2.67 per common share and the Company can accelerate the expiry date of the warrants after one year in the event the underlying common shares have a value of at least 30% greater than the exercise price of the warrants.
Cameron Chell, CEO of Draganfly, said: “Another quarter of 200% plus year over year growth and a $20 million plus working capital surplus, not including non-cash liabilities positions Draganfly to continue our mission to be the leading commercial drone manufacturer and solutions provider in North America within the next few years.”
|For the three months ended March 31,||2021||2020|
|Gross Profit (as a % of revenues)||33.4||%||88.0||%|
|Net loss||(44,923,934) (1)||(1,104,108||)|
|Net loss per share ($)|
|Comprehensive loss||(44,914,647) (1)||(1,090,294||)|
|Comprehensive loss per share ($)|
|Change in cash and cash equivalents||$||19,076,220||$||(531,890||)|