DDC ANNOUNCES Q2 2023 RESULTS ALONG WITH A GENERAL CORPORATE UPDATE
TORONTO, Aug. 17, 2023 /CNW/ - Drone Delivery Canada Corp. (TSXV: FLT) (OTCQX: TAKOF) (Frankfurt: A3DP5Y or ABBA.F) (the "Company" or "DDC") is pleased to report the financial results for the second quarter of 2023, with significant revenue growth through the first six months, and a continued decrease in cash burn.
The Company recorded revenues of $175,975 for the three months ending June 30, 2023, representing a 12% decrease year-over-year. This was driven primarily by the conclusion of contracts with each of the University of British Columbia, DSV Air & Sea Inc.Canada, and Bell Mobility Inc. that concluded subsequent to June 30, 2022, partially offset by the contract announced on March 23, 2023 with the Government of Canada to operate and evaluate the Company's Condor drone. Year to date through the first six months of the year the Company recorded revenues of $751,360, representing a 120% increase year-over-year, which is largely due to the sale of a Condor drone to the Canadian Government.
In addition, the Company realized a decrease in operating expenses of over $0.7M or approximately 19% year-over-year in the second quarter as a result of operational efficiencies that the Company continues to implement. Year to date, operating expenses have been reduced by over $1.3M or 17%, which combined with the increase in revenue resulted in a reduction in operating loss of approximately $1.7M or 23% compared to the same period last year.
Furthermore, for the six months ended June 30, 2023, the Company realized a reduction in its cash used in operating activities by over $2.0M or 31% year-over-year as a result of the operational efficiencies that the Company has been putting into place.
"We are pleased with our progress and results to date, achieving strong 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 and make inroads in the commercial markets that we are focused on."
DDC is also pleased to provide the following general corporate update on its activities in the second quarter of 2023:
Canary Development
The Company has completed the development of the Canary RPA with the final milestone being the approval to fly over people, which was obtained in the three months ending June 30, 2023. The Canary is ready for commercial operations with the Company proving out the Canary's improved flight performance during three flights on the Company's Care by Air route where the Canary RPA, compared to its predecessor, the Sparrow RPA, showcased improved performance in several flight measures including a 9% reduction in flight duration, 42% less battery power consumption along with a noise level reduction of 46%.
Condor Development
The Company continues work on preparing the next Condor in its fleet to continue with the execution of the contract previously announced with the Government of Canada in the first quarter through the Innovation Solutions Canada program. The Company plans to restart the execution of the contract later this year.
FLYTE
The Company is nearing completion of the FLYTE logistics network testing where multiple DroneSpots® are interconnected to support a multi-DroneSpot® operation. Additionally, the Company continues to improve the functionality of its FLYTE software to allow for simultaneous flights to be monitored by its Operations Control Center.
The Company continues to test and integrate the ground based detect-and-avoid ("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. The DAA system is 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.
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 six months of 2023, the Company realized a 17% increase in the number of flights completed compared to the same period of the prior year along with a 26% increase in the distance flown compared to the same period of the prior year with over 3,600km 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.
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
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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.
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.
Investor Relations: Mr. Steve Magirias, Chief Executive Officer, and Mr. Bill Mitoulas, Telephone: (416) 479-9547, Email: [email protected]; Media Relations: Mr. Steve Magirias, Chief Executive Officer, Email: [email protected]
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