Vancouver, BC., May 09, 2023 (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.

Key Financial and Operational Highlights for Q1 2023:

• Revenue for the first quarter of 2023 was $1,601,486, Product sales of $1,380,816 made up the bulk of the revenue with the remainder coming from drone services. This is compared to total Q1 Revenue in 2022 of $2,044,562 the reduction primarily coming due to new product cut-over and production capacity build out.
  
  
• Gross profit for Q1 2023 decreased $372,716 over the same period in 2022. Gross margin percentage for Q1 2023 was 27.7% compared to 39.9% in Q1 2022. Gross profit would have been $520,481 and gross margin would have been 32.5% not including a one-time write down of inventory of $77,047. The decrease is due to the sales mix of the products sold.
  
  
• The Company recorded a comprehensive loss of $7,096,995 in the first quarter of 2023 compared to a loss of $6,292,494 in the same period of 2022. The comprehensive loss for the period includes non-cash changes comprised of a positive change in fair value derivative of $57,314 and a write down of inventory of $77,047 and would otherwise have bee a loss of $7,077,262. The first quarter of 2022 comprehensive loss for the three months ended March 31, 2022, include a negative change in fair value of derivative liability of $1,230,860, an impairment recovery on notes receivable of $771,260, and would otherwise be a comprehensive loss of $5,832,735. Contributors to the year-over-year increase are office and miscellaneous, advertising, marketing and investor relations expenses, and wages that were partially offset by decreases in insurance expense.
  
  
• Cash balance on March 31, 2023 of $13,368,936 compared to $7,894,781 on December 31, 2022.
  
  
• Draganfly was selected by CODAN Communications, a leading international designer and manufacturer of premium communications solutions, to supply its UAV platform for integration with its industry-leading technology and communications solutions. CODAN Communications serves tactical, military, humanitarian, peacekeeping, public safety, security, and commercial markets in over 150 countries. CODAN designs and delivers solutions that help solve customers’ communications, safety, security, and productivity problems in some of the most challenging environments worldwide.
  
  
• Draganfly announced the closing of a firm commitment underwritten public offering with gross proceeds to the Company of US$8.0 million before deducting underwriting discounts and other estimated expenses payable by the Company. The Company intends to use the net proceeds from this offering for general corporate purposes, including to fund its capabilities to meet ‎demand for its new products ‎including growth initiatives and/or for working capital requirements ‎including the continuing ‎development and marketing of the Company’s core products, potential ‎acquisitions and research ‎and development‎.
  
  
• On January 31, 2023, the Draganfly entered into an equity distribution agreement (the “EDA”) with Maxim Group LLC (the ‎‎“ATM Agent”) ‎dated January 31, 2023, pursuant to which the Company could, from time to time, distribute in an ‎‎‎“at-the-market offering” (the “ATM Offering”) of up to US$15 million in common shares of the ‎Company (the ‎‎“ATM Shares”) in the United States only, on the Nasdaq Capital Market (the ‎‎“Nasdaq”).‎ The Offering was made pursuant to a prospectus supplement dated January 31, 2023 (the “Canadian Prospectus ‎Supplement”), ‎to the short form base shelf prospectus‎ dated July 14, 2021 (the “Canadian Base ‎Shelf Prospectus”) ‎qualifying the distribution of the Offered Shares in each of the provinces of ‎British Columbia, ‎Saskatchewan and Ontario, and a prospectus supplement (the “U.S. ‎Prospectus Supplement”) to the ‎registration statement on Form F-10, as amended, that became ‎effective on July 29, 2021 (File No. 3‎333-258074‎) ‎containing the Canadian Base Shelf Prospectus ‎under the Multi-jurisdictional Disclosure System, registering the offer and sale of the ATM Shares under the United States Securities Act of ‎‎1933, as amended.‎ From inception to the date of this press release, the Company distributed 650,729 ATM Shares under the ATM Offering at an average price of $2.62 per share for gross proceeds of $1,748,946, of which 650,729 ATM Shares were sold during the interim period.
• Draganfly launched the expansion of its production capabilities to meet the rapidly growing demand for its drone technology by bringing its facility in Burnaby, B.C., online. Draganfly has expanded its facility in Burnaby to enable the production and manufacturing of UAV systems and components, including those for the Draganfly Heavy Lift and Commander 3XL, increasing production capacity to meet demand based on client orders and for the company to serve its global customers. Draganfly’s production facility features automated machinery to support efficient fabrication, multiple in-line working stations to enable expansion of assembly, integration, and quality control, and has been designed to support efficient inventory management resulting in faster turnaround time on orders.
• Draganfly and Lufthansa Industry Solutions, an IT service provider and a subsidiary of Lufthansa Group, entered into a letter of intent to explore providing its drone solutions and Vital Intelligence (VI) technology into its existing infrastructure and customer solutions. Draganfly’s technology will assist Lufthansa Industry Solutions' objective of providing the maritime industry with the highest information technology and performance monitoring standards.
• Remote Sensing Instruments (“RSI”), a longstanding Geospatial Technology company in India working in the field of Remote Sensing and Geographic Information System (“GIS”), has entered into a strategic agreement with Draganfly for the development of manufacturing, distribution, and sales of Draganfly products in India. A core component of this agreement is manufacturing Draganfly drones in India under the AatmaNirbhar Bharat (Made in India) program.
  
  
• Draganfly was pleased to announce that its Field Operations Team completed site assessments in Ukraine as part of the first phase of its landmine detection technology integration. Draganfly personnel has completed operations and site assessments to integrate personnel and technology into upcoming landmine detection operations. These missions were critical in determining the array of complex sensors and equipment required to be deployed to help to advance mine clearance strategies and assist in field resource allocation. The information obtained during these field operations will be used to develop further protocols for deployment for integrating drone technology to improve the safety and efficiency of landmine detection activity. Draganfly has been working with organizations in Ukraine to integrate technological innovations and solutions to support and enhance humanitarian efforts and strategies to prevent suffering and loss of life.
  
  
• Draganfly successfully delivered the first of three Situational Assessment Drones to DSNS Emergency Services Department in Kyiv, Ukraine. Draganfly will also complete the delivery of two Situational Assessment Drones to DSNS in other regions of Ukraine to provide situational awareness intel, infrastructure assessments, and aid in search and rescue operations throughout the country.
  
  
• President and CEO of Draganfly, Cameron Chell, was chosen to present at Abundance360’s annual conference in Los Angeles. Each year at the A360 Summit, three presenters are selected to present their “Moonshot” to the audience of thought leaders, financiers, technologists, and futurists. Chell will present his Moonshot: “Creating the Internet of Drones to Serve Global Humanitarian Needs. Abundance360 (A360) is an entrepreneurial community that brings together a curated global community of entrepreneurs, executives, and investors committed to understanding and leveraging exponential technologies to transform their businesses. The A360 Summit aims to provide entrepreneurs with the approach of what happens when you shoot for 10x vs. 10% growth.
  
  
• Draganfly announced that AgileMesh, Inc. will add its UAV Platform to its wireless surveillance product line, resulting in meaningful enhancements to communication capabilities for emergency personnel. Draganfly’s UAV Platform and AgileMesh's wireless surveillance solutions will combine to equip emergency responders with an advanced tool for improved situational awareness and swift deployment during critical incidents. This agreement will facilitate improved public safety by enabling emergency personnel to respond quickly and effectively to critical incidents, ultimately saving time and lives.
  
  
• Draganfly announced SkyeBrowse will integrate its world-class reality capture platform with Draganfly public safety drones. This new integration with Draganfly drones by SkyeBrowse will provide emergency responders with enhanced situational awareness and rapid deployment capabilities during critical incidents. Combining SkyeBrowse's industry-leading software and Draganfly's UAV hardware will provide customers with an exceptional solution for public safety. With this new AI technology, emergency personnel will be able to respond to critical incidents quickly and efficiently, with the aim of saving time and lives.
  
  
• Draganfly announced that Vermeer will integrate its VPS (visual positioning system) Payload with Draganfly’s Commander 3XL. This partnership will enable Draganfly to collaborate with Vermeer's military and government clients and create solutions using the Company’s innovative drone technology. Vermeer enhances military and government mission capabilities by supplying the United States Department of Defense (DoD) with its mixed reality & AI-enabled tool.
  
  

"We are extremely excited about this quarter and its impact over the coming year. Draganfly's latest collaborations and expansions are a testament to the growing demand for drone technology and the important role Draganfly is playing," said Cameron Chell, President and CEO of Draganfly. "Our team's relentless pursuit of technological innovation and recent expansion of production capabilities will help drive growth in the drone industry across multiple sectors, positively impacting countless lives along the way."