Vancouver, BC., Aug. 09, 2023 (GLOBE NEWSWIRE) -- Draganfly Inc. (NASDAQ: DPRO) (CSE: DPRO) (FSE: 3U8A) (“Draganfly” or the “Company”), an award-winning, industry-leading drone solutions and systems developer, is pleased to announce its second quarter financial results.

Key Financial and Operational Highlights for Q2 2023:

• Revenue for the second quarter of 2023 was $1,899,039 with product sales of $1,581,358 and drone services of $317,681. This is compared to Q2 revenue in 2022 of $2,370,115 made up of $1,532,984 of product sales and $837,131 from drone services.
  
• Gross profit for Q2 2023 was $467,117 down from $1,013,589 for the same period last year primarily driven by less drone services. Gross margin percentage for Q2 2023 was 24.6% compared to 42.8% in Q2 2022. The decrease in gross margin was due to less drone service revenue which tends to have a higher gross margin compared to that of product sales. Gross profit would have been $589,717 and gross margin would have been 31.1% not including a one-time non-cash write down of inventory of $122,600.
  
• The Company recorded a comprehensive loss of $6,890,812 in the second quarter of 2023 compared to a comprehensive income of $640,324 in the same period of 2022. The comprehensive loss for the period includes a non-cash change comprised of a write down of inventory of $122,600 and would otherwise have been a loss of $6,768,212. The second quarter of 2022 comprehensive income for the three months ended June 30, 2022, include a gain in fair value of derivative liability of $6,094,438 and would otherwise be a comprehensive loss of $5,454,114. Contributors to the year-over-year increase in loss is decreased gross profit and higher Selling, General, and Administrative expenses.
  
• Cash balance on June 30, 2023 of $6,721,124 compared to $7,894,781 on December 31, 2022.
  
• Draganfly announced the expansion of its manufacturing capacity to meet anticipated growth in industry demand with a new facility in Saskatoon, Saskatchewan. The new facility in Saskatoon is designed to enable Draganfly to meet the market potential for its products and solutions. It will enable the expanded manufacturing and production of UAV systems and components, including those designed for the Draganfly Heavy Lift and Commander 3 XL drones. The facility enhances core manufacturing, assembly, integration, quality control processes and incorporates efficient design, testing, and inventory management systems that will result in increased capacity and new product production capabilities. This is an addition to the recent launch of Draganfly’s Burnaby facility and the operational commencement of its Texas AIR operations center which has enabled the company to now initiate the construction of our new facility and commence the scaling process.
  
• Draganfly entered into an agreement with HEAL-Corp, a Non-Government Organization (“NGO”), and the Ukrainian National Academy of Internal Affairs (the “National Academy”) regarding the development of a training program on the use of drones and their countermeasure systems. Working in conjunction with the National Academy, Draganfly will implement a designed curriculum to be used within the training program. Recently, HEAL-Corp delivered Trauma Resuscitation and Evacuation Casualty Care training to the Ministry of Internal Affairs, showcasing their commitment to assisting in the teaming effort. Drone training on Draganfly systems will be provided to new Ministry of Internal Affairs pilots each year, including but not limited to National Police, National Guard, State Border Guard, select Armed Forces, Special Forces Security, and Emergency Services.
  
• Draganfly successfully completed critical training and demonstrations in Ukraine. The training program trained personnel from the Main Department of the State of Emergency Services Cherkasy Region Ukraine, including the fire brigade and demining units. The training provided to DSNS state emergency services personnel included the fire brigade, demining units, and local Rotary officials. This comprehensive training approach aims to equip participants with the necessary expertise to leverage Draganfly's turnkey de-mining solution.
  
• Draganfly expanded its joint UAV operations with its partner DEF-C, a Ukrainian company involved in the civil and defense sectors, focused on flood mitigation and nationwide demining innovations. Kherson Civil Administration and Kherson DSNS Emergency Services, which operate under the Ministry of Interior to support evacuation and flood management in the affected regions, called for assistance. Draganfly completed the real-time situation awareness reconnaissance deployment, which was crucial in supporting safe evacuation efforts and effectively reducing response times. Fifteen flights were immediately conducted across 660 acres using RGB/Multispectral and thermal sensors, and the delegation successfully participated in the Kherson community evacuation of injured and vulnerable populations due to flooding.
  
• Draganfly’s drone service team successfully completed a challenging 24/7 monitoring mission for a major critical infrastructure construction project. For a continuous 24/7 period over 33 days, the team conducted live, real-time monitoring with specialized sensors on a high-risk section of underground pipeline drilling, which required the drone services team to be active on-site and operating at all times. Utilizing specialized thermal imaging sensors, the mission was to monitor and identify emerging ground disturbances, gather and analyze data in real time, and promptly report the size and precise location of any disturbances to the client's team, enabling them to respond and act quickly. As a result of the Draganfly service team’s innovative technology implementation, they identified and reported disturbances that were then successfully mitigated. The operations crew minimized incidental, legal, and reputational costs for our client while ensuring on-site safety for workers.
  
• Draganfly was granted the Transport Canada Special Flight Operations Certificate (SFOC) for Beyond Visual Line of Sight (BVLOS) and operations above 400 feet as part of its ongoing commitment to support wildfire suppression. This authorization grants the ability to cover extensive regions and rapidly deploy drones, crucial in providing essential data and facilitating early identification. These drones' real-time information will help firefighters identify and manage hotspots while ensuring communities remain safe.
  
• Draganfly introduced its new Precision Delivery System as the world's first drone to be the official flag bearer during its attendance at the World Police and Fire Games (WPFG) in Winnipeg, Manitoba. Draganfly's Precision Delivery System was granted a Special Flight Operations Certificate (SFOC) for a Remotely Piloted Aircraft System (RPAS). The SFOC-RPAS authorization signifies that Draganfly's technology has met stringent safety and operational standards, granting the Company permission to conduct drone flights beyond the confines of basic or advanced operations. Integrated with Draganfly's Commander 3 XL drone, the Precision Delivery System provides a drop-down winch system for safe and precise delivery, a quick-release delivery box for efficient unloading, and POV cameras for enhanced situational awareness. This advanced system combines cutting-edge technology and precision engineering, providing unmatched efficiency, speed, and reliability for delivering vital supplies and equipment to first responders on the front lines.
  
• Draganfly developed the Starling X.2 drone digital display messaging platform for partner Promo Drone, a San Diego-based digital display drone company. With its innovative features and capabilities, the Starling X.2 will offer versatile rapid-response messaging and aerial advertising to communicate and promote in various sectors, including public safety, emergency response, outdoor events, advertising, marketing, and fan-centric experiences.
  
• Draganfly’s drone technology was put on display during the Canada Day celebrations at the Canada Aviation and Space Museum in Ottawa, Ontario. Visitors to the Canadian Achievements Drone Zone exhibit were able to see Draganfly's latest cutting-edge drone technology, the Heavy Lift Drone and Commander 3 XL.
  

Draganfly will hold a shareholder update and earnings call on August 9, 2023, at 2:30 p.m. PDT / 5:30 p.m. EDT. Registration for the call can be done here: https://bit.ly/3OiOXjz

Selected financial information is outlined below and should be read with Draganfly’s consolidated financial statements for the quarter ended June 30, 2023 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.