DDC RELEASES 2023 FINANCIAL RESULTS AND PROVIDES GENERAL CORPORATE UPDATE

TORONTO, ONTARIO – April 24, 2023 – Drone Delivery Canada Corp. (TSXV: FLT; OTC QX: TAKOF; Frankfurt:  A3DP5Y or ABBA.F) (the “Company” or “DDC”) is pleased to announce its 2023 financial results, and to provide a general corporate update.

The Company is pleased to report that in 2023 it achieved its highest revenue to date, earning revenue of $1,239,356, which represents an increase of 50% in year over year growth. This was driven primarily by revenue from the contract with the Government of Canada related to testing of the Condor, which concluded in December 2023 and completion of the first milestone of the Canary testing contract with the Department of National Defence (“DND”). In addition, the Company reduced its net loss in 2023 by $3,450,067 or 26% from $13,414,231 to $9,964,164, largely due to a reduction in operating expenditures driven by personnel, and research and development expenditures. As such, the Company was able to reduce its cash used in operating activities from $11,943,111 to $7,676,569.

The fourth quarter of 2023 was focused on servicing the DND contract and the implementation of the new DroneCare route, which became operational subsequent to December 31, 2023.

DDC is also pleased to provide the following general corporate update on its activities:

Canary Development

During the year ended December 31, 2023, the Company completed the development of the Canary and deployed it to operate as part of the DND contract. As part of its continuous improvement plan, the Company concurrently began integrating a new autopilot which will enable plug and play capabilities with other integrated technologies such as C2 link and GPS systems and is expected to result in improved flight performance.

Detect and Avoid Technology

The Company is also working towards the further development of detect-and-avoid (“DAA”) systems, which are intended to facilitate beyond visual line of sight operations, which has the potential to significantly reduce operational costs, and provide a robust solution to meet the demands of the Company’s prospective customers. The Company previously announced the deployment of a ground-based DAA system acquired from Canadian UAVs Inc. at the location of its strategic partner DSV Air & Sea Inc. Canada in Milton, Ontario, which is intended to support the Sparrow and Canary drones.

During the year ended December 31, 2023, the Company was able to complete the radar performance assessment, following a repositioning of the system as the system performance was suboptimal in its original selected position and has improved the detection rate for the new DroneCare route. In December of 2023, DDC received SFOC approval for VO BLVOS on its DroneCare route, allowing the removal of several visual observers from the operation. Subsequent, to December 31, 2023, the Company submitted an SFOC for a complete BVLOS waiver for the current DroneCare route. This BVLOS waiver would permit the removal of all visual observers from the DroneCare route.

In addition, subsequent to December 31, 2023, the Company has begun evaluating an onboard DAA system for the Canary and is also concurrently evaluating a second ground based DAA system. The Company intends on evaluating all three systems and the implications of integrating such technologies into the Company’s proprietary FLYTE software.

“The DDC team has been focused on executing a key set of objectives to realize the full potential of our complete logistics solution. This includes the drones, required infrastructure, DAA systems as well as our FLYTE software which ties it all together. We have made solid progress to position us for projects at scale when the regulatory environment enables this.” said Steve Magirias, CEO of DDC.

 

About Drone Delivery Canada Corp.

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:

https://www.linkedin.com/company/drone-delivery-canada

https://www.youtube.com/dronedeliverycanada

https://www.facebook.com/dronedeliverycanada

https://www.instagram.com/dronedeliverycanada

https://twitter.com/DroneDeliveryCa

 

 

For further information:

Investor Relations: Mr. Steve Magirias, Chief Executive Officer, and Mr. Bill Mitoulas, Telephone: (416) 479-9547, Email: billm@dronedeliverycanada.com;

Media Relations: Mr. Steve Magirias, Chief Executive Officer, Email: steve.magirias@dronedeliverycanada.com

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.

 

Notice Regarding Forward Looking Information

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.