Draganfly Q2 2026 Earnings Report

Draganfly EPS Results

• Actual EPS: -$0.24
• Consensus EPS: -$0.11
• Beat/Miss: Missed by -$0.13
• One Year Ago EPS: N/A

Draganfly Revenue Results

• Actual Revenue: $3.75 million
• Expected Revenue: $2.56 million
• Beat/Miss: Beat by +$1.19 million
• YoY Revenue Growth: N/A

Draganfly Announcement Details

• Quarter: Q2 2026
• Date: 8/10/2026
• Time: After Market Closes
• Conference Call Date: Monday, August 10, 2026
• Conference Call Time: 5:30PM ET

Draganfly (NASDAQ:DPRO) (NASDAQ: DPRO) is a Canada-based developer and manufacturer of unmanned aerial systems (UAS) and related software solutions for commercial, government and academic applications. Headquartered in Saskatoon, Saskatchewan, the company specializes in designing lightweight, modular drones that integrate advanced sensor payloads—including high-resolution imaging, multispectral and thermal cameras—to gather aerial data across a range of industries.

The company’s core offerings include turnkey UAS platforms, data-capture payloads and proprietary analytics software that enable clients to perform precision agriculture monitoring, land surveying, infrastructure inspection and environmental assessment. Draganfly also delivers mission-critical solutions for public safety and emergency response, providing law enforcement and first-responder teams with rapid-deployment drones equipped for surveillance, search and rescue, and real-time situational awareness.

Draganfly serves a global customer base spanning North America, Europe and parts of Asia, working with agricultural producers, engineering firms, municipal governments and research institutions. In addition to system sales, the company provides pilot training, maintenance services and technical support to ensure compliance with local aviation regulations and seamless integration of UAS into existing workflows.

Founded in 1998, Draganfly was one of the first companies to commercialize quadcopter technology for civilian use and holds multiple regulatory approvals, including U.S. FAA exemptions for public safety operations. The management team brings expertise in aerospace engineering, software development and data analytics, positioning the company to expand its portfolio of autonomous inspection and mapping solutions as demand for aerial intelligence grows.

Draganfly Q2 2026 Earnings Call Transcript

Key Takeaways

• Positive Sentiment: Record Q2 revenue reached CAD 2.664 million, up 26% year over year, with product sales exceeding CAD 2.5 million and gross profit of approximately CAD 533,000.
• Negative Sentiment: The company’s comprehensive loss widened to CAD 11.8 million from CAD 4.7 million a year earlier, while adjusted gross margin declined to 21.7% from 24.3% amid higher operating, R&D, personnel, and professional costs.
• Positive Sentiment: Draganfly highlighted a pipeline of more than 50 campuses following its exclusive IACLEA agreement and said its Small and Rural Association partnership could address roughly 80% of U.S. police forces, although the rollout will be phased through pilot programs.
• Positive Sentiment: The DEVCOM counter-drone contract, new Special Forces selections for the Flex FPV, and the Skip Dynamix acquisition strengthen the company’s defense portfolio; management estimates the counter-UAS opportunity could represent hundreds of millions of Canadian dollars over several years.
• Positive Sentiment: Draganfly ended the quarter with CAD 131.9 million in cash and minimal debt, while management expects significant Canadian defense procurement and additional U.S. manufacturing capacity to support a future revenue ramp, though it acknowledged the company is several quarters behind some industry peers.

Presentation

[Rolly Bustos, Internal Investor Relations Representative at Draganfly]

Hi, everybody. Welcome to our Q2 2026 earnings call. We will just give this a minute. We just started it, but just letting people file in the room, and then we will get started. Thank you. All right. I think to be respectful of everyone's time, I think we will get started just as people are still starting to file in. As always, welcome and greetings to all the shareholders and stakeholders who always attempt to join us on this call. This time it is the Draganfly 2026 Q2 earnings call. My name is Rolly Bustos. I am the Internal Investor Relations Rep here at Draganfly. We appreciate you all joining us as always. We will start with our CEO and President, Cameron Chell. He will be talking about and recapping the second quarter. Next up will be a detailed financial review with our CFO, Paul Sun.

[Rolly Bustos, Internal Investor Relations Representative at Draganfly]

We will then conclude by addressing the pre-submitted questions we received. As always, you are welcome to reach out to me directly on investor.relations@draganfly.com if we did not get to your question today. I remind everyone this presentation may include forward-looking information and statements. These statements are not guarantees of future performance or financial results, and undue reliance should not be placed on them. Any future events or financial results may differ from what might be discussed here. The company results and statements are accurate as of today, August the 10th, 2026. We are under no obligation to update or renew these statements outside of material press release disclosure going forward. The full forward-looking disclaimer can be found on page two of this presentation and on the screen right now. Cam, if you are ready, please go ahead.

[Cameron Chell, CEO and President at Draganfly]

Sounds great. Thanks, Rolly. Sure appreciate it and appreciate everybody taking the time to afford us the opportunity to update our earnings call for this last quarter. The net-net here is that Draganfly, we had a record quarter in our second quarter and really very pleased with the progress that we are moving forward with. It is super pragmatic. I understand that it is a very pragmatic approach compared to maybe, say, a number of other comps out in the industry. But we are super pleased with where we have ended up and what the pipeline looks like going forward. Our revenue is at CAD 2.664 million. That is a year-over-year increase of 26%. We had gross profit of CAD 533,000+. We have a current cash balance of CAD 131 million, and we did just over CAD 2.5 million of product sales.

[Cameron Chell, CEO and President at Draganfly]

Some of the highlights from the last quarter included IACLEA, which is the International Association of Campus Law Enforcement [Administrators] or officials professionals. This is a 3,000-strong campus association, and they signed an exclusive deal with Draganfly to provide their association members, the 3,000 campuses that are a part of this, with the training for drones and counter-drones on their campuses. It also includes product, and they went through what I would call a pretty exhaustive series of tests and litmus tests and interviews and all the rest of it to determine who they were going to go with, who they were going to endorse, and what program they were going to put in place. I would say that this was 50% based on product and 50% based on subject matter expertise and the quality of the training program that was being put forward that campuses will go through.

[Cameron Chell, CEO and President at Draganfly]

It is a tremendous market win for us. We have an immediate pipeline of over 50 campuses that signed up. We are in typical fashion of what we do, which I know is frustrating at times, taking a very pragmatic approach to how we do this. We did some pilots previous to launching the whole program, which helped us establish what that training protocol would be, what were the use case scenarios and the concepts of operations that we were going to have to be planning for. We had to make some key hires in campus security, counter-drone, and a number of other tactical positions in order to really develop that right programming. We are rolling out the first three campuses that have signed up with us in the next quarter. We will assess those three campuses.

[Cameron Chell, CEO and President at Draganfly]

We will probably run them through a—we will sign up another three of the 50 that are indicative in the pipe. We will run them for a quarter, then run the next ones for a quarter and get all that operational expertise, make the adjustments necessary, and then we will open up the spigot to it in probably the second quarter of next year, which works well in terms of most of the budget timing and actually most of the decision timing that it takes for things to move forward. But we really want to make sure that we have got a great reference base in this regard because it is a bit of a captured market for us. Really a hats off to our public safety organization and how they organized this.

[Cameron Chell, CEO and President at Draganfly]

I will mention as a subsequent event, we also did sign the Small & Rural Association, a very, very important association for us to sign as well. Part of our whole strategy here is not necessarily to go after the urban centers. Those urban centers are really well serviced by organizations like Skydio, Axon, BRINC who are very, very targeted in those areas, have obviously very strong balance sheets, competent management teams, and we did not want to be going head-to-head with those folks. The campuses is a terrific set of organizations for us to go and work with, including the release of our drone-in-a-box solution to them. However, the rural, which makes up about 80% of police forces in the country, but they are smaller. They are a little bit more expensive to work with, but they are not quite as fussy.

[Cameron Chell, CEO and President at Draganfly]

You have kind of got a balance there to work with. There are a couple of other associations that we are close to signing. But again, we are trying to roll it out in a measured way. We also completed the acquisition of Skip Dynamix. This is a really strategic acquisition for us. Skip Dynamix, the two founders involved here are former Navy grads. They are actually the individuals that designed the original FPVs for the Marines and over 15 years ago, trained Marines and built protocol around FPVs. A lot of people do not know this, but FPVs weren't invented in Ukraine. They were introduced to Ukraine by the U.S. Marines as a bit of a Hail Mary to like, "You guys are in a tough spot. Try this." And lo and behold, it worked.

[Cameron Chell, CEO and President at Draganfly]

The amount of experience that these two individuals brought to the organization, not just in terms of their engineering prowess, capability, operational prowess, but also their contacts and the existing work that they do within the government, it was really important. This particular product that you see in the picture there, that is initially designed as a one-way attributable fixed-wing drone. The part of the strategy here is twofold, and we see it unfolding exactly as these guys had predicted. There are two reasons that fixed wings will become much, much more prevalent over the coming couple of years. First of all, if there is engagement in Taiwan or the South Pacific, you are dealing with a surface area, an ocean that is five times the size of the Atlantic. Distance matters, and you are not going to be using quadcopters in those types of engagements.

[Cameron Chell, CEO and President at Draganfly]

It will basically be a naval or a Marine or a beachfront type of engagement. You need a different type of piece of equipment, and this is positioning us for that spend that is coming up, in that regard. It is our estimation that the 100 nautical mile LUCAS program, this is exactly what this is targeted toward. We are down to the final few contestants or selections for that. We feel pretty good about it. Interestingly enough, this particular plane is also an excellent ISR. It could be hand thrown. It could be from a ship or from the shore. It is kind of like an anywhere, anytime, very easily man packable. An interesting piece of the construction around this product is the fact that it is not composite. It is actually a thermal form. We can mass produce this thing today.

[Cameron Chell, CEO and President at Draganfly]

Today, we can push out tens of thousands of these things in a month and at very, very low cost, like four-figure costs. That is really important. They are completely customizable inside. Depending on the type of radio that you want to run, or the type of payload that you want to have or ordinance or such. It is very, very modular as well. It really fits our philosophy of modular drones. Draganfly was very proud to be awarded by DEVCOM for development of a counter-drone system. This is an ultra-light, ultra-mobile counter-drone system, has all kinds of different use cases. The primary use case was forward operating bases or even squads that have to go out and maybe spend time overnight and need to protect personnel. It does include a tethered drone.

[Cameron Chell, CEO and President at Draganfly]

It includes an effector that can be either kinetic or RF, and some pretty sophisticated software on the tracking side. We are really excited about what is happening there and how that is. I mean, we have got strong experience in the counter-drone space. But winning this DEVCOM contract is significant and I believe translates into hundreds of millions of dollars of revenue, not just within the U.S. DoW, but in the international markets as well over the coming years. We launched a brand-new line of cameras in a partnership with a company called Blitz. You can see by the picture of that camera there, this is not a typical consumer dual-use type camera. It is a hybrid of a military camera and a dual-use commercial camera. But packed in a case and container that is much more durable.

[Cameron Chell, CEO and President at Draganfly]

The optics on it are incredible compared to what you would get in a prosumer or in a dual-use type drone. This is a bit of a trend that we see in the defense side of the business, where you see the quality of the product, even if it's dual use, moving up the food chain. I would suggest this is also a reason that we continue to see a slight and meaningful delay in our revenue ramp because the specifications and qualifications that are being asked for are being refined on the fly. We may have a large order, then as the order gets there, like, "Hey, can you make this tweak?" Then you've got to redesign some cameras and candidly, this is why we worked in partnership to develop this entire camera system. It's very unique to Draganfly.

[Cameron Chell, CEO and President at Draganfly]

It'll fit on any of our models. It'll also fit onto other drone models as well, and really launches us into the optics business. Draganfly, the Flex FPV drone, was selected by two additional U.S. Department of War units. I can tell you that these are all Special Forces units, and we're really proud of the fact, and pleased with the fact that these particular Special Forces units are selecting the Flex drone. There's a couple of primary reasons. A couple we can't really talk about, but a couple of them that are disposable is, in particular, that you've got arms and blades that you can switch out. What that means is that you've got variability in your mission profile without having to carry a whole bunch more equipment.

[Cameron Chell, CEO and President at Draganfly]

The unintended consequence of that design was that you can fit between three and four times as many drones in the same space, whether that's a backpack or the back of a truck, than you can because of the way they pull apart, and it takes seconds to pull apart or put together. But the way they do, they just pack nicely into very contained spaces. Again, that wasn't part of the original design concept in terms of what the benefit was, but it's actually turning out to be an incredible benefit. The performance of it will match. The difference between FPVs out there in terms of speed and maneuverability is marginal between any of them. But because you can put some bigger blades on this, even with shorter arms, you actually could do some bigger payloads, some more sophisticated radios.

[Cameron Chell, CEO and President at Draganfly]

Some of these are actually being used in live situations right now, even as ISR drones. Some great lessons that have come out of that. We see a great future for this particular one. ACSL and Draganfly have partnered to bring NDAA-compliant Japanese drones into the Canadian and actually into the U.S. market as well. But into the Canadian market, it's exclusive. But into both of these markets, it's important to note that these are not just typical ACSL Japanese-made drones. This is a drone that was originally designed by Hitachi. But the ACSL drones that are in our lineup are in our lineup because we've integrated them with our other drones.

[Cameron Chell, CEO and President at Draganfly]

You'll see on the front of the ACSL drone a camera system that pops off and another camera that can pop on, whether it be a thermal or a higher res or a hyperspectral or whatever the case may be. There's four different cameras. But those cameras now also pop off and are being fitted onto the APEX drone and eventually onto all of the drones. So we'll have an interchangeable camera system that will be included in the ACSL line. Now, only Draganfly will have that interchangeable capability with the ACSL. So we're building strategic differentiators into this particular product line. The reason that we didn't build this product ourself is that everybody builds this product, and it's typically a low-margin product. But it's kind of something that you've got to have in your product mix because it's a very convenient and popular size drone.

[Cameron Chell, CEO and President at Draganfly]

It works great for ISR, whether that be in military, public safety, or industrial. But that particular drone model, in our opinion, is a race to the bottom. So we wanted to come up with a strategy that would still allow us to scale, still build some unique capabilities within our product line, but also not have us utilize valuable resources to develop a me-too type product. I'm not suggesting ACSL is a me too or that company's a me too. They've done some really, really cool things here, but this is all they do. You really have to just be focused on that particular product line if you're going to be even somewhat successful. Of course, our product line tends to be one, first of all, interchangeable, modular. Arguably, we're still the only folks out there that have a fully integrated product line across six different drone types.

[Cameron Chell, CEO and President at Draganfly]

If you're a squad, a company, a battalion, a brigade, you've got all the different drone sections that you can pick from one supplier. We supply everybody from a squad right up to brigade. We don't go up to command level because those are typically drones that are Category 3 drones. But interestingly enough, the biggest demand signal that we see over the next couple of years is going to be medium and long-range strike drones. Hence, that's exactly why we bought the expertise and technology behind Skip Dynamix. So you will see us entering into at least the medium strike and likely the long strike area over the next number of years as well. I had the great pleasure of—man, that picture's I got to talk to our PR department. That was a long time ago.

[Cameron Chell, CEO and President at Draganfly]

At any rate, I had the great pleasure of providing testimony to the Canadian Senate, specifically talking about how to speed up the procurement cycles. One, to help industrialize the military complex in Canada, but two, to help ensure that they are able to get the equipment they need in the time frame they need because everything is sped up. Now, it's interesting because Canada has also, in many respects, become a leading voice and a leading industrial nation even within the European pack. So much of that testimony was applied over into NATO. I was invited also by the Prime Minister's office to attend the NATO summit in Turkey along with six other Canadian defense executives.

[Cameron Chell, CEO and President at Draganfly]

It was probably one of the most productive and insightful trips that I've ever had the pleasure of being on with direct contact with multiple world leaders talking specifically about procurement cycles, where we're at in the drone space, what are the things that we need to do to be effective long term. Not next quarter, but what do we need to do to build a successful long-term industrial base? It's premature to say right now, but you will see massive procurement coming out of the Canadian market, even by the end of this year, which is another reason that our procurement and revenue cycle will see a significant bulge in it, because we've had to remain measured in order to meet that demand on a timeline that's going to be required of us.

[Cameron Chell, CEO and President at Draganfly]

Again, we've worked ourselves into a very privileged situation to be able to serve the people that serve, and we're hopefully going to be able to do the job that's being asked of us. At this point, I'm going to turn it over to our CFO, Paul Sun, to run through the financial highlights. Paul?

[Paul Sun, CFO at Draganfly]

Yeah. Thanks, Cam. Thanks everyone for joining. So yeah, this first slide here, we'll look at a snapshot of second quarter, comparing it to the year-over-year quarter last year. Revenue, as Cam mentioned, 26% up to CAD 2.7 million from CAD 2.1 million in the second quarter of 2025. Second quarter revenue comprised of CAD 2.6 million in product sales with CAD 100,000, with the balance coming from drone services. Gross profit, [CAD 533,149] compared to [CAD 504,592] in Q2 of last year.

[Paul Sun, CFO at Draganfly]

We did have a one-time non-cash write down of inventory of [CAD 43,662], and otherwise would have been [CAD 576,811] compared to the same period last year, where there was a one-time inventory write down of [CAD 10,421], making the adjusted gross profit of [CAD 515,013] last year. Adjusted gross margin for Q2 was 21.7%, compared to last year's adjusted number of 24.3%. This was a result of products and services mix comparing the two quarters as some products have different margin profiles than others. Total comprehensive loss for the quarter was CAD 11.8 million, compared to a loss of CAD 4.7 million in the same period last year.

[Paul Sun, CFO at Draganfly]

This quarter does include that non-cash write down of inventory of the [CAD 43,662] and a small fair value of derivative liability loss of [CAD 8,931]. You recall that is from a February 2024 financing that we did, where it is just the way we report functionally in Canadian, so we have to account for that as a derivative. The loss otherwise would have been a comprehensive loss of CAD 11.7 million versus an adjusted loss of CAD 4.6 million in the same quarter of 2025. Increase is primarily due to higher office and admin costs, R&D, share-based comp, professional fees, travel, and wages. If we could go to the next slide, please, to do a quarter-over-quarter change. Looks good.

[Paul Sun, CFO at Draganfly]

Revenue for Q2 was up 15.2% to CAD 2.7 million, again, compared to the CAD 2.3 million for Q1 of this year in 2026, mainly due to higher product sales. Gross margin for Q2 was 20% compared to 15% in Q1 of 2026. However, if we back out that one-time inventory write down that I mentioned before, gross margin for Q2 would have been 21.7% compared to 19.6%, adjusting for non-cash items in the previous quarter. Total comprehensive loss for Q2, again, CAD 11.8 million, compared to a comprehensive loss of CAD 5.7 million for Q1 of 2026. Of course, you recall we had that loss in fair value of derivative liability of [CAD 8,931] and the write down of inventory of [CAD 43,662].

[Paul Sun, CFO at Draganfly]

Q2 would have been CAD 11.7 million compared to a loss of CAD 6.6 million, excluding non-cash adjustments in Q1 of this year. Again, increase in quarter-over-quarter was primarily due to the same factors, being high office and admin costs, R&D, share issuance costs, professional fees, travel, and wages as the company continues to scale as per Cam's earlier comments. Moving to the last financial slide here, I think we got a snapshot of the balance sheet. You can see total assets increased from CAD 101.3 million to CAD 154 million from the end of the year, largely due to the increase in cash. You recall we did do a relatively large financing in February of this year.

[Paul Sun, CFO at Draganfly]

The working capital surplus, as at June 30th, was CAD 144 million versus CAD 95.2 million from the end of 2025. Shareholder equity was CAD 148.9 million at quarter end, compared to CAD 96.6 million at the end of last year. However, both working capital and shareholders' equity would have been a little bit higher if we excluded those non-cash fair value of derivative liability that I mentioned earlier for the quarter as well as at year-end. You can see we continue to have minimal debt, and our cash balance at the end of this quarter was CAD 131.9 million, compared to CAD 90.2 million at the end of 2025. As again, we did have February financing. With that, I will pass it back to you, Cam.

[Cameron Chell, CEO and President at Draganfly]

Great. Thank you, Paul. Appreciate it. Just a super quick review. This is our core line here, along with two additional, actually three additional products. We have the Flex FPV, the APEX, the Commander, the Heavy Lift Drone. That Heavy Lift also comes in a hybrid called the Outrider, which is up to 7-hour flight time, with a 67 kg payload capacity. The Orca, the beginning of our fixed-wing line, our medium and long-range strike. This is a currently short-range strike. Short range, we are calling 100 nautical miles. Depending on the area that you are working in, 100 nautical miles would actually be about a medium-range strike drone in the Ukrainian theater. But in the Pacific theater, that is a short range. Then, of course, we have the SOTEN, which is a unique.

[Cameron Chell, CEO and President at Draganfly]

With the modifications that we have made and the integrations we have done, that is a unique product for us. You will continue to see product rollout from us over the coming quarters. I should not say more than that, but pretty excited about the things that are being driven by customer demand and where we are positioning those things from both our military and, in particular, public safety customers.

[Cameron Chell, CEO and President at Draganfly]

There are a number of questions that came in that Rolly provided to me. I am just going to read them here if that is okay, and do my best to answer them. Could you discuss Draganfly's strategy in the current UAS, counter-UAS market? Is Draganfly developing its own counter-UAS system, or do you expect these capabilities to be delivered primarily through strategic partnerships and integrations?

[Cameron Chell, CEO and President at Draganfly]

Great question, and I think as one of the advantages that we have or one of the strengths that we have is the fact that we have been building drones for 27 years. We understand the vulnerabilities of them extremely well. We were doing counter-drone work 15 years ago. Well, it was 12 years ago. We built a drone that shot nets out using airbag explosives under contract for AeroVironment, who was a big customer of ours at that time. We have seen many, many progressions of one-offs that we have built for different programs out there. We are developing our counter-drone capabilities. We have purposely not been trying to be first to market in this regard because it is, like the UAS space, a very fast-moving, continually changing space. More because tactics from aggressors can change so quickly and because it is such a nascent industry.

[Cameron Chell, CEO and President at Draganfly]

The concepts of operations and the use cases all change super quickly. We are definitely an innovative company. We do not try to be first movers, but we definitely take the time to do the research and be very innovative so that when we are coming out with stuff, it works and can be really well deployed. Our counter-drone strategy is being able to have certain specific capabilities that are unique, but that can also be applied into existing product out there, so that we want to be able to use the existing well-established counter-drone companies to be able to be channel partners of ours. We have been very fortunate and won the DEVCOM contract in order to build an ultra-light, ultra-mobile counter-drone system for the Department of War, which is a massive opportunity for us.

[Cameron Chell, CEO and President at Draganfly]

As I mentioned before, hundreds of millions of dollars over the coming years is the potential, and it is certainly on track. There are a couple of partners in there. There is a tether company that is in there that we have partnered with in order to provide some of the unique capabilities of the system that we did propose. But for the most part, the hardcore IP underneath, the tracking system, how everything integrates together, the fact that it is modular, it can use multiple types of effectors, whether that be kinetic, soft kinetic, low collateral RF, whatever the case is. It is entirely unique to us. The short answer is we are developing our counter-drone capabilities. It will have proprietary aspects to it, but we are certainly not afraid of partnering or purchasing or joint venturing.

[Cameron Chell, CEO and President at Draganfly]

What we really care about is providing the greatest amount of safety to the people that we serve. And that is the approach that we will continue to take on that. Do we think anything will come of our attending the NATO summit? The NATO summit was one of the most fascinating experiences. I have been to NATO summits before, not invited in at this level, for sure, and certainly not maybe in times that are as unpredictable as they are right now with the types of budgets that are going into NATO-type countries. We will undoubtedly see more than significant results from this NATO summit and the ongoing NATO participation that we will have, and the unique position that Canada presents within NATO as being a North American company, but a part of the European Defense Pact, and really having a leadership position there.

[Cameron Chell, CEO and President at Draganfly]

Our international business, yeah, we are very, very fortunate that we have manufacturing in Canada and the United States and representation in both countries all the way up to a board level. About 85%+ of our shareholders are U.S. citizens. However, because of the domicile of Canada and what that affords us is the ability to have some really nice open doors, not just within NATO, but also within many Latin American, many Asian, many Eastern Bloc countries. We see a tremendous amount of opportunity in those markets, and we see very strong support from the Canadian government in order to supply both for geopolitical but also for economic reasons. We are getting some great support in that regard. We will really start ramping up our capabilities within that regard. It was a fantastic trip and incredible learning for all of us.

[Cameron Chell, CEO and President at Draganfly]

Is Canada going to be an important revenue source for us? Can we expect contracts to be announced? The answer to both of those is yes. We never planned in our original business plan that Canada would be an overwhelming, almost even material, revenue source for us. It is really turning out to be quite the opposite. One, the budgets are very significant. It is the 10th or 11th largest economy in the world that is literally deploying tens and tens of billions of dollars over very short periods of time, with the best talent that they have got in order to have these capabilities. Some very unique things about Canada is a massive coastline, so marine is becoming a specialty for us. Arctic, without question, is becoming a specialty for us, and Canada really wants to position itself as an Arctic expertise.

[Cameron Chell, CEO and President at Draganfly]

And it is geographically a big part of their responsibility, whether it be NORAD or their own sovereignty. Yeah. Pleasantly, it is. That said, I do not want to take away for one second our commitment to the United States. We have facilities in Florida. We have additional facilities that will be very large facilities that will be stood up before the end of the year, this year, along with personnel, to meet the demand that is there. I know there is that question as well, if the demand is there, why do not the numbers show it? It is intricate. The reality is we have just got to have that capacity for when the ball drops. The ball has dropped, and it is dropping. We are probably maybe three or four quarters behind some of the other clubs out there in terms of the ramp that they saw.

[Cameron Chell, CEO and President at Draganfly]

However, I think because of some of the international opportunities, we have certainly got as large, if not larger, total TAM to be able to provide. Also because we have got a full product suite. We spent a lot of time building out. Again, being that first mover is not the most important thing to us. Being a complete mover is the most important thing to us. Buyers are becoming much more discerning very quickly. Over the last number of years of education, something that flew could be sold. However, that is not the case anymore. They want to have these integrated systems to provide and execute on integrated missions, whether that is public safety, military, or frankly, even industrial. We have seen an impact from Skip Dynamix—have we seen an impact from the Skip Dynamix acquisition? Yeah.

[Cameron Chell, CEO and President at Draganfly]

The impact certainly is not on the revenue side, but that was not the objective. The objective here was the talent, both from a pure intellect standpoint, also from an integrity standpoint, and also from a contact standpoint. It was the technology itself. We are thrilled around the thermoplastic technology, which reduces the weight and the cost and the scalability of these things. It is like nothing else I have seen out there. That is a really, really important aspect of why we—we have seen a big impact and we are going to see very sizable orders because of it. Orders not just in the particular Orca or Dolphin product lines, but also the learnings that have been applied, are being applied, excuse me, into the other areas of our product line. What has been the feedback and initial interest in the drone programs from IACLEA?

[Cameron Chell, CEO and President at Draganfly]

Do we have an idea of what kind of revenue that these partnerships will bring? Also the Small & Rural Association. Listen, that represents 80% of the police forces in the United States. It is just that simple. It is just not something. We are just trying to be where other people are not, number one, and are not thinking are important. The use cases in some of those areas are different than pure urban areas, but they lend themselves to the type of work that we have traditionally done. Traditionally, our drones have been a bit bigger, longer distances, heavier payloads, and when you are in those rural areas, that is exactly what you have got to do. You are going to be looking at situations where a small little Mavic 3 or ISR drone just does not like. It flies for 15-minutes.

[Cameron Chell, CEO and President at Draganfly]

That's not going to get you across a farmer's field, much less across the county. Those are the types of things that we're looking at, and we think it's going to have a very big impact. Like I say, it's 80% of the police forces out there fit into that category that I wouldn't say we've got locked up, but we got a stranglehold on, and hopefully, we'll be able to provide the right type of service to continue to earn that position. As Rolly mentioned, we are available as much as possible and reasonable to answer any questions. We appreciate everybody's time and thank you for the consideration that you've given us today.

Participants

Executives

• Rolly Bustos, Internal Investor Relations Representative
• Cameron Chell, CEO and President
• Paul Sun, CFO