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
Neither the TSX Venture Exchange nor its Regulation Services 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.
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