DDC ANNOUNCES Q3 2023 RESULTS ALONG WITH AN UPDATE ON THE CANARY AND CONDOR DRONES
TORONTO, Nov. 13, 2023 /CNW/ - Drone Delivery Canada Corp. (TSXV: FLT) (OTC QX: TAKOF) (Frankfurt: A3DP5Y or ABBA.F) (the "Company" or "DDC") is pleased to report the financial results for the third quarter of 2023, with continued revenue growth through the first nine months combined with a continued reduction in cash burn.
The Company recorded revenues of $216,090 for the three months ending September 30, 2023, representing a 13% 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 September 30, 2022, partially offset by revenue from the contract announced on March 23, 2023, with the Government of Canada, and the previously announced Care by Air project. Year to date through the first nine months of the year the Company recorded revenues of $967,450 representing a 64% 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 approximately $1.8M or 43% year-over-year in the third quarter as a result of operational efficiencies that the Company continues to implement. Year to date, operating expenses have been reduced by over $3.0M or 26%, which combined with the increase in revenue resulted in a reduction in operating loss of approximately $3.4M or 31% compared to the same period last year.
Furthermore, for the nine months ended September 30, 2023, the Company realized a reduction in its cash used in operating activities by $3.0M or 33% year-over-year as a result of the operational efficiencies that the Company has been implementing.
DDC is also pleased to provide the following update on the Canary and Condor remotely piloted aircrafts ("RPAs") in the third quarter of 2023:
Canary Development
The Company has completed the development of the Canary RPA and is ready for commercial operations.
The Company is currently operating the Canary as part of the Canadian Department of National Defence evaluation contract announced on September 7, 2023. The Company anticipates completing the first milestone of the project during the fourth quarter.
The Company also plans to deploy the Canary drone on the DroneCare project with Halton Healthcare announced on October 12, 2023. This project will provide delivery of critical medical supplies between Oakville Trafalgar Memorial Hospital and Milton District Hospital. The Company anticipates the route to be operational during the fourth quarter.
Condor Development
On September 29, 2023, during development trials, the second Condor RPA provided to the Government of Canada in connection with the contract announced on March 23, 2023 experienced a hard landing, damaging the RPA. The subsequent investigation of the incident and review of the airframe identified certain issues with third-party OEM components impacting the quality and reliability of the RPA. These findings, coupled with the lack of regulatory progress for RPAs greater than 25kg, have led to the decision to suspend the development of the Condor RPA. Though development has been suspended, DDC intends for its technology roadmap to continue to include intellectual property that supports various RPA classes.
While the market has demonstrated demand for the Condor RPA due to its operational capabilities, the regulatory environment is still not conducive to the commercially viable operation of larger RPAs such as the Condor. The Company has gained a significant amount of intellectual property during the development of the Condor, applicable to all DDC's RPA models, and will look to utilize it in the future, once market, regulatory and technological advancements have occurred to support the development of larger RPAs at scale.
Consequently, the Company will focus resources towards enhancing the smaller drone offerings such as the Canary RPA and continuing to build out a robust ecosystem including FLYTE, the DroneSpots™, ground based DAA as well as investigating onboard DAA applications for the Canary.
"We continue to see improved business results to date, through the revenue achieved combined with a focus on reducing our operating expenses," said Steve Magirias, CEO of Drone Delivery Canada. "We have had to make difficult decisions to ensure we are focused on investing in the key initiatives that will deliver results to all of our stakeholders, including advancing our technological capabilities and securing commercial agreements in the key verticals we are targeting."
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:
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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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