TORONTO, May 16, 2023
/CNW/ - Drone Delivery Canada Corp. (TSXV: FLT) (OTC QX: TAKOF)
(Frankfurt: A3DP5Y) (Frankfurt:
ABBA.F) (the "Company" or "DDC") is pleased to report strong
financial results for the first quarter of 2023, with significant
revenue growth and decreased cash burn.
The Company is pleased to report record revenue of $575,385 for the three months ending March 31, 2023, representing an increase of over
300% year over year. This growth was driven by the Condor contract
with Transport Canada announced in first quarter as well as the
Edmonton International Airport and
Care by Air contracts.
In addition, the Company realized a decrease in operating
expenses of over $0.5M or
approximately 15% year over year as a result of operational
efficiencies that the Company has been putting into place over the
last several months. The increase in revenue combined with the
decrease in operating expenses resulted in a reduction in operating
loss of approximately $1M or 27% year
over year. Furthermore, the Company realized a reduction in its
cash burn by over $0.85 million or
26% year over year.
"We are excited to report a strong first quarter for DDC, with
significant revenue growth combined with reduced operating expenses
to the business," said Steve
Magirias, CEO of Drone Delivery Canada. "These results
demonstrate our ability to continue to advance our technology in a
financially prudent manor, which allows us to be laser focused on
the key priorities required to propel our company forward, which we
expect to ultimately continue to drive revenue growth and deliver
value to our shareholders."
DDC is also pleased to provide the following general corporate
update on its activities in the first quarter of 2023:
Canary Development
The Company completed multiple endurance flights at its test
facility to ensure the reliability and commercialization readiness
of the Canary RPA. Subsequent to March 31,
2023, the Company completed all the requirements for the
validation of the Parachute Recovery System ("PRS"). As a result,
the Company has now completed all development work related to the
Canary RPA.
"It is a major milestone and accomplishment for the DDC team to
complete the development and testing for the Canary RPA. We are
excited to launch this new RPA in the under 25kg category within
the verticals we have targeted as part of our go to market
strategy," said Steve Magirias, CEO
of Drone Delivery Canada.
Condor Development
The Company continues work on the execution of the contract
previously announced with the Government of Canada in the first quarter through the
Innovation Solutions Canada program. The Company is continuing the
execution of the contract using an aircraft owned by the Company,
and the Company has also placed deposits for two additional
airframes from its supplier.
FLYTE
The Company is in the final stages of the testing of the Canary
integration into the Company's proprietary FLYTE software and
expects the testing to be completed in Q2 2023. The Company also
integrated the ground based Detect and Avoid system from Canadian
UAV into its FLYTE software during the first quarter. Additionally,
the Company has begun work to improve the functionality of its
FLYTE software to allow for simultaneous flights to be monitored by
its Operations Control Center (OCC).
Detect and Avoid Technology
The Company continues working towards the further development of
detect-and-avoid ("DAA") systems, which are intended to facilitate
beyond visual line of sight operations, which accordingly has the
potential to significantly reduce operational costs and provide a
robust solution to meet the demands of the Company's prospective
customers.
The Company previously announced the deployment of a ground
based DAA system acquired from Canadian UAVs Inc. at the location
of its strategic partner DSV Air & Sea Inc. Canada in Milton,
Ontario, which is intended to support the Sparrow and Canary
drones, both of which are drones that fall in the under 25kg
category. Integration and testing of the system continued during
the first quarter.
The Company also previously announced an MOU with Pegasus
Imagery Ltd. for the development of an onboard DAA system for its
Condor heavy lift drone. The Company anticipates work on this
development to begin in 2023.
Operational Improvements
The Company continues to focus on and continually improve the
overall logistics system with a specific focus on the number of
flights that can be flown as part of a regularly scheduled delivery
service. In the first quarter of 2023, the Company realized a 265%
increase in the number of flights completed compared to the same
period of the prior year with almost 800 flights completed and a
266% increase in the distance flown compared to the same period of
the prior year with over 1,800km flown by DDC drones. These results
are a combination of flights completed as part of the Company's
commercial operations as well as development flights.
"We continue to focus on creating an agile organization focused
on developing the most robust and efficient drone delivery
logistics system possible. The increase in flight completion and
distance goes a long way in supporting these goals" said
Steve Magirias, CEO of DDC.
About Drone Delivery Canada
Corp.
Drone Delivery Canada Corp. is an award-winning drone technology
company focused on the design, development, and implementation of
its proprietary logistics software platform, using drones. The
Company's platform is intended to be used as a Software as a
Service (SaaS) model for government and corporate organizations
globally.
Drone Delivery Canada Corp. is a publicly listed company trading
on the TSX Venture Exchange under the symbol FLT, on the U.S. OTC
QX market under the symbol TAKOF and on the Frankfurt exchange in Germany under the symbol A2AMGZ or ABB.F.
Read more at: www.DroneDeliveryCanada.com or on DDC's
social media:
https://www.linkedin.com/company/drone-delivery-canada
https://www.youtube.com/dronedeliverycanada
https://www.facebook.com/dronedeliverycanada
https://www.instagram.com/dronedeliverycanada
https://twitter.com/DroneDeliveryCa
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Provider (as that term is defined in policies of the TSX Venture
Exchange) accepts responsibility for the adequacy or accuracy of
this release.
Notice Regarding Forward Looking Information
Certain
information set forth in this news release may contain
forward-looking information that involves substantial known and
unknown risks and uncertainties. Such statements often address
expected future business and financial performance, financial
condition, and other matters, and often contain words or phrases
such as "expect," "may," "can," "believe," "forecast," "estimate,"
"goal," "target," "will," and other similar expressions, and
variations or negatives of these words or phrases. This
forward-looking information is subject to numerous risks and
uncertainties, certain of which are beyond the control of the
Company, including, but not limited to, the impact of general
economic conditions, industry conditions, market acceptance, and
dependence upon regulatory approvals (both in Canada and internationally). Readers are
cautioned that the assumptions used in the preparation of such
information, although considered reasonable at the time of
preparation, may prove to be imprecise and, as such, undue reliance
should not be placed on forward looking information. Except as may
be required by applicable securities law, the parties undertake no
obligation to update forward-looking information, whether as a
result of new information, future events or otherwise.
SOURCE Drone Delivery Canada Corp.