Los Angeles, CA. , May 10, 2022 (GLOBE NEWSWIRE) -- Draganfly Inc. (NASDAQ: DPRO) (CSE: DPRO) (FSE: 3U8) (“Draganfly” or the “Company”), an award-winning, industry-leading drone solutions and systems developer, is pleased to announce its first quarter financial results. Revenue growth for the first quarter was driven by strong product sales.

Key Financial and Operational Highlights for Q1 2022:

• Revenue for the first quarter of 2022 was $2,044,562, an increase of 32.8% year-over-year from the first quarter of 2021 with all sales coming from organic growth. The bulk of the revenue came from product sales, with drone services sales being $406,846 and the balance of the revenues coming from engineering services.
  
  
• Gross Profit for Q1 2022 increased $301,143 over the same period in 2021 representing an increase of 58.5% year over year. Gross margin percentage for Q1 2022 was 39.9% compared to 33.4% in Q1 2021. The increase is due to the sales mix of the products sold.
  
  
• The Company recorded a comprehensive loss of $6.29 million in the first quarter of 2022 compared to a loss of $44.9 million in the same period of 2021. The comprehensive loss for the period includes a non-cash loss in fair value of derivative liability of $1,230,860 and a recovery of a $771,260 receivable and would otherwise be a loss of $5,832,894. The first quarter of 2021 included a non-cash loss in fair value derivative of $41,019,172 and would otherwise be a loss of $3,895,475. Contributors to the year-over-year change included increased insurance and wage costs partially offset by increased revenues.
  
  
• Cash balance on March 31, 2022 of $19.6 million compared to 23.1 million on December 31, 2021.
  
  
• Draganfly received an order for its Medical Response and Search and Rescue Drones from Coldchain Delivery Systems, LLC (“Coldchain Delivery Systems”) for deployment with Revived Soldiers Ukraine (“RSU”). The Company will provide an initial combined total of 10 North American-made Medical Response and Search and Rescue Drones. The total initial order size (subject to conditions) is up to 200 units. Draganfly’s Medical Response and Search and Rescue Drones are manufactured in North America to help ensure the integrity of the Company’s hardware and the security of a user’s data. The Medical Response Drones will be equipped with Draganfly’s temperature-managed Medical Response Payload Box, which can transport up to 35 pounds of medical supplies, including blood, pharmaceuticals, insulin/medicines, vaccines, water, and wound care kits. The innovative payload system on this type of drone ensures ease of access when top mounted and effective quick-release operations when bottom mounted.
  
  
• Draganfly launched its Access & Healthcare Solutions with Fobi AI Inc. (“Fobi'’) to help industry leaders and communities host safe in-person events. An integral part of the joint solution is the deployment of the Company’s Vital Intelligence Smart Vital Kiosks. With voluntary consent, the kiosks can measure temperature, blood pressure, heart rate, respiratory rate, and oxygen saturation (“SpO2”) in seconds. Draganfly’s Smart Vital system enhances privacy and always registers anonymous data of the individual being screened. Integrations such as the Company’s Smart Vital system enable Fobi’s PassPro Wallet pass platform to help industry leaders solve multiple pain points. The platform is now able to automatically deliver verified credentials including vital signs and access privileges to a Fobi PassPro Wallet pass as well as a back-end portal

• Draganfly celebrated a significant drone spraying milestone at Alabama State University (“ASU”). The Company sprayed its 500,000^th seat at ASU’s Dunn-Oliver Acadome in February 2022. In addition to ASU, Draganfly’s drone spraying services have been used to add another layer of health security at a number of high-profile events including NASCAR’s June 2021 tripleheader weekend at the Nashville Superspeedway and Barrett-Jackson’s March 2021 collector car auction in Scottsdale, Arizona.

• Draganfly by invite only showcased its drone based AI Vital Intelligence platform to Government accounts at EDGE22: Common Missions in Today's Digital World at the Park MGM Hotel in Las Vegas, Nevada. The Company’s onsite demonstration to government representatives consisted of a live drone flight equipped with its Smart Vital system. Cameron Chell, Chairman and CEO of Draganfly, and Paul Mullen, Vice President of Vital Intelligence, discussed the versatility and real-world use cases of the Company’s Vital Intelligence platform with retired U.S. Air Force Colonel Dawn Zoldi. Draganfly’s drone spraying services were also implemented ahead of the EDGE22 plenary sessions to add another layer of health security.
  
  
• Draganfly announced a partnership with Women And Drones, the premier global platform for women who are disrupting, innovating, and shaping the future of STEM and aviation. From 2018 to 2021, the organization has been named one of the top companies to watch in the uncrewed aircraft systems (“UAS”) industry. Women And Drones’ educational programs range from kindergarten to career in an effort to balance the gender equation in the industry currently, as well as for the future of flight. The organization offers Drone Flight Services including aerial imagery and drone product beta testing.
  
  
• Draganfly unveiled its new Vital Intelligence Smart Vital Kiosk during CES ^® 2022. The kiosk’s 22” LCD screen is compliant with the Americans with Disabilities Act (“ADA”) and its Forward Looking InfraRed (“FLIR”) thermal camera adheres to the guidelines set by the Food and Drug Administration (“FDA”). Designed to be versatile, the Company’s new Smart Vital Kiosks can be secured in a certain area or safely wheeled to a new location.
  
  
• Draganfly’s Vital Intelligence Platform was utilized during the Drone Racing League’s (“DRL”) Vegas Championship Race Presented by T-Mobile outside T-Mobile Arena in Las Vegas, Nevada. The race, which took place during CES 2022, marked the finale of the 2021-22 DRL Algorand World Championship Season. The Company’s VI Platform screened the core vitals of DRL pilots before and after the event. Draganfly’s drone spraying services were also implemented ahead of the race to add another layer of health security. The insights gained during the Company’s first season participating with DRL will support the scaling of DRL Labs, which is the league’s innovation hub set up in collaboration with Draganfly. Through DRL Labs, both companies will research and develop next generation drone technology that will advance the sport of drone racing and other industries undergoing significant transformations through drones, including humanitarian aid and mobility.

Cameron Chell, President and CEO of Draganfly, said: “It has been a strong start to the year. Draganfly continues to reach key objectives. The entire team is fully committed to providing our customers and partners with cutting-edge drone solutions, software and AI systems. As our capacity to meet customer demand continues to increase, we believe we are making significant progress towards becoming an important leader in the expanding drone manufacturing and solutions space.”

Draganfly will hold a shareholder update and earnings call on May 10, 2022 at 2:30 p.m. PDT / 5:30 p.m. EDT.

Registration for the call can be done here: https://bit.ly/DPROshareholdercall

Selected financial information is outlined below and should be read with Draganfly’s consolidated financial statements for the quarter ended March 31, 2022, and associated management discussion and analysis, which will be available under the Company's profile on SEDAR at  www.sedar.com and filed on EDGAR at www.sec.gov.