Draganfly, Inc. Q1 FY2025 earnings call

• Signed an exclusive agreement with SafeLane for aerial surveys in demining. - Teamed with Autonomy Labs for demining blanket placement using Draganfly's heavy-lift drone. - Selected as Balko’s UAS provider to carry North American LIDAR systems. - Established a Public Safety Board of Advisors with prominent public safety individuals. - Closed a $3.6 million financing. - Opened a new Tampa facility with a testing area for drones and live ordnance. - Partnered with Volatus for high-value geospatial work with power utility customers. - Unveiled the Apex drone with payload capacity, multi-use capabilities, and AI performance. - Highlighted unique capabilities of Draganfly drones including common operating systems, payload compatibility, and ability to handle multiple missions.

Revenue for Q1 was $1.547 million, a 16% year-over-year increase. Gross profit was $310,000. The company had cash of just over $2 million at the end of the quarter. No specific breakdown by product segment in terms of revenue contribution % provided other than general mentions of product areas like demining, wildfire management, wash drone, etc.

• Needs about $35 million to $40 million in revenue to be profitable. - Not profitable this year. - Hopes to be profitable next year. - Expecting large orders this year and the rest of 2025 to be a strong year with breakout potential, with visibility on unfolding opportunities.

Q: How many more equity raises do you plan on doing before being profitable? Or, more specifically, when do you plan on being profitable?

A: Profitability is about $35M-$40M in revenue. Won't be profitable this year, but has a good shot next year.

Q: Are we still on track to get large, meaningful contracts?

A: Sales funnel is over $100M, focused on large contracts with nation-states, militaries, and public safety, hopeful of closing some in the next quarter.

Q: Do you think there will be consolidation in the drone industry?

A: Yes, consolidation will happen as the industry goes through a trough of doom, with only a few companies able to get through.

Q: Will you be producing drones at the new Florida location?

A: Will do sub-assembly work there, with large orders done via contract manufacturing in the US, and Canadian facilities serving other markets.

Q: Over the past several years, Draganfly has made significant capital investment to expand operations; however, revenues have seemed to be stagnant since 2023. When can investors expect this downtrend to cease?

A: Expect this to be the year, with scale able to be announceable over the next two quarters, seeing this year as an incredibly strong year potentially the breakout year.