Draganfly Inc (DPRO) 2023 Q1 法說會逐字稿

All right. So just to be respectful of everybody's time and to start on time, we will get started. So hello and welcome again to the Draganfly 2023 Q1 earnings call. As usual, my name is Rolly Bustos, internal Investor Relations here at Draganfly. I welcome each and every one of you today, shareholders, stakeholders, and analysts.

好的。因此，為了尊重每個人的時間並準時開始，我們將開始。歡迎再次​​參加 Draganfly 2023 年第一季度財報電話會議。和往常一樣，我的名字是 Rolly Bustos，Draganfly 的內部投資者關係部負責人。我歡迎今天在座的每一位股東、利益相關者和分析師。

The format will be the same as previous, and that will begin with our CEO and President, Cameron Chell, discussing the first-quarter operational highlights. From there, our CFO, Paul Sun, will jump in and discuss the financials as reported earlier. And as always, we'll conclude with our lead Director, Scott Larson, facilitating the Q&A portion. You're always welcome to reach out to me at investor.relations@draganfly.com after the call if your question did not get answered.

會議形式將與之前相同，首先由我們的首席執行官兼總裁 Cameron Chell 討論第一季度的運營亮點。接下來，我們的首席財務官 Paul Sun 將介入並討論之前報導的財務狀況。與往常一樣，我們將由我們的首席總監 Scott Larson 主持問答部分。如果您的問題沒有得到解答，歡迎您在通話結束後通過investor.relations@draganfly.com 與我聯繫。

Lastly, I wanted to remind everyone that this presentation may include forward-looking information and statements. These statements are not guarantees of future performance, and undue reliance should not be placed upon them. Any future events or financial results may differ from what might be discussed here. The full forward-looking disclaimer can be found on page 2 of this presentation, and I'd be happy to send that to anybody upon request.

最後，我想提醒大家，本演示文稿可能包含前瞻性信息和陳述。這些陳述不是對未來業績的保證，不應過分依賴它們。任何未來事件或財務結果可能與此處討論的有所不同。完整的前瞻性免責聲明可以在本演示文稿的第 2 頁上找到，我很樂意根據要求將其發送給任何人。

So Cam, Please go ahead.

那麼卡姆，請繼續。

Great. Thank you, Rolly. Thanks everybody for taking the time to be here today, it's an honor and a pleasure. Just pull up the screenshare. And so, welcome to our Q1 2023 shareholder earnings call. Thanks, Rolly, for reviewing the disclaimer with us.

偉大的。謝謝你，羅利。感謝大家今天抽出時間來到這裡，我很榮幸也很高興。只需拉出屏幕共享即可。因此，歡迎參加我們的 2023 年第一季度股東財報電話會議。感謝 Rolly 與我們一起審閱免責聲明。

To immediately, and right to the point, review our financial results for Q1, which given all of the circumstance around, we're very happy with and we think it set a great platform for the coming quarters going forward. So we had revenue of $1.6 million or just over that. About $1.38 million of that was product sales, with basically the remainder of that in service provision.

立即、開門見山地回顧一下我們第一季度的財務業績，考慮到周圍的所有情況，我們對此感到非常滿意，我們認為它為未來幾個季度的發展奠定了一個很好的平台。所以我們的收入為 160 萬美元或略高於這個數字。其中約 138 萬美元用於產品銷售，其餘基本上用於提供服務。

Our 2023 Q1 gross profit was $443,000 which represents 27.7% gross margin. But I think it's very important to note that that gross margin would have been $500,000 or comfortably over 30% have we not include a one-time inventory charge of $77,000. Again, taking conservative action at the advice of our finance team and auditors. Our March 31, 2023, cash balance is $13 million. So we're in a strong financial position still; we can continue to be on budget.

我們 2023 年第一季度的毛利潤為 443,000 美元，毛利率為 27.7%。但我認為值得注意的是，如果我們不包括 77,000 美元的一次性庫存費用，毛利率將達到 500,000 美元或輕鬆超過 30%。再次，根據我們的財務團隊和審計師的建議採取保守行動。截至 2023 年 3 月 31 日，我們的現金餘額為 1300 萬美元。因此，我們的財務狀況仍然強勁；我們可以繼續遵守預算。

This is a bit of a review for some but a level set for a number of new shareholders that we'd like to welcome to the company, and thank you for your trust and the opportunity to serve. Draganfly is recognized as a global commercial leader in the multi-rotor space, and we are a rapidly growing drone manufacturer and solution provider. We do have a strong emphasis on artificial intelligence and data analysis capabilities. We've been saying for quite some time now, that five years from now, Draganfly will be known as a drone company, but really, we're a data company.

這對某些人來說是一種回顧，但對我們歡迎的許多新股東來說是一個水平，並感謝您的信任和服務機會。 Draganfly 被公認為多旋翼領域的全球商業領導者，我們是一家快速發展的無人機製造商和解決方案提供商。我們確實非常重視人工智能和數據分析能力。我們已經說過很長一段時間了，五年後，Draganfly 將被稱為無人機公司，但實際上，我們是一家數據公司。

And at the end of the day, data is the only thing that will probably differentiate artificial intelligence. And so, we'll continue to place focus on data, data collection, data analysis, and really, being able to do things with that data, or provide our unique ways to collect that data. Because nothing collects data better than a drone for our customers, to give them a strategic advantage.

歸根結底，數據可能是唯一能讓人工智能脫穎而出的因素。因此，我們將繼續關注數據、數據收集、數據分析，以及真正能夠利用這些數據做事，或者提供我們獨特的方式來收集這些數據。因為沒有什麼比無人機能更好地為我們的客戶收集數據，從而為他們帶來戰略優勢。

We have a very strong IP portfolio. We have a culture of developing IP. We definitely have a tech-focused and engineering-focused culture as well. And I'd like to suggest that that will continue to the largest degree.

我們擁有非常強大的知識產權組合。我們擁有開發知識產權的文化。我們當然也擁有以技術和工程為中心的文化。我想建議這種情況將在最大程度上繼續下去。

And our -- we have always new product development, but it's always driven by customers. So we're not R&D-ing things that aren't brought forward by a customer. So what that provides us with is an advantage in today's market, is that we have a product line that has matured, that previously has matured, and as we've cut over to a new product line, has matured quickly. And I'll give some analysis and some observations from the AUVSI show that I'm currently attending, in terms of where we see the rest of the industry and where some of our specific advantages are.

我們一直在開發新產品，但總是由客戶驅動。因此，我們不會研發那些不是由客戶提出的東西。因此，這為我們提供了當今市場的一個優勢，那就是我們擁有一條已經成熟的產品線，以前已經成熟的產品線，並且當我們切換到新的產品線時，它已經迅速成熟。我將根據我目前參加的 AUVSI 展會提供一些分析和觀察，了解我們對行業其他公司的看法以及我們的一些具體優勢。

So the other global things that are happening right now is that the market has significantly expanded in the government, civil, and commercial sectors. And that's primarily because of security concerns, offshore concerns, data concerns, and we see that there's a domestication of product manufacturing in North America. There's a handful of manufacturers in North America, and even a smaller handful that can do the type of work that we're doing, which also speaks to the amount of time it takes to get products to market.

因此，目前正在發生的其他全球性事件是政府、民用和商業部門的市場顯著擴大。這主要是因為安全問題、離岸問題、數據問題，我們看到北美的產品製造正在本土化。北美有少數製造商，甚至少數製造商可以完成我們正在做的工作類型，這也說明了將產品推向市場所需的時間。

I mean, these are aircraft. And if we think about how long it takes an aircraft to get to market, that's how these things are being treated by the FDA and by our commercial and by our military partners. And so, I'm really pleased to see where we're at with that and how we're progressing through it and the advantage that gives us. And we're also now moving and have moved into a favorable regulatory environment where things like BVLOS, beyond visual line of sight, as an example, or pre-flight inspections done by video as opposed to humans, those are the types of things that are now unfolding and opening up the entire commercial market.

我的意思是，這些是飛機。如果我們考慮一架飛機需要多長時間才能進入市場，這就是 FDA、我們的商業夥伴和我們的軍事合作夥伴對待這些東西的方式。因此，我真的很高興看到我們在這方面的進展、我們如何取得進展以及它給我們帶來的優勢。我們現在也在採取行動，並且已經進入了一個有利的監管環境，例如超視距（BVLOS），超出視線，或者通過視頻而不是人類進行的飛行前檢查，這些都是可以進行的事情。現在正在展開並開放整個商業市場。

So in terms of industry outlook, 2022 is about a $30 billion industry. But it's really important to note that the vast majority, 97% plus, of this was in the military space and very large drone systems, not necessarily a small UAS space. And then, a couple percent of this was in the consumer space, but it's really only 1% or 2% of this is in the commercial space, but the vast majority of that growth through 2030 is going to be in the commercial space.

所以從行業前景來看，2022年大約是一個300億美元的行業。但值得注意的是，絕大多數（97% 以上）是在軍事空間和大型無人機系統中，而不一定是小型無人機空間。然後，其中百分之幾是在消費領域，但實際上只有 1% 或 2% 在商業領域，但到 2030 年，絕大多數增長將來自商業領域。

Now, the other outlier out there is Ukraine. Now, the Ukraine has completely expanded the military space into small UAS or for small UAS. So previously, 10,000 feet down -- well, previously, air dominance was all very large air systems, and now, 10,000 feet down, air dominance is all about small UAS.

現在，另一個異常情況是烏克蘭。現在，烏克蘭已經將軍事空間完全拓展到小型無人機或者小型無人機上。所以以前，在 10,000 英尺以下，制​​空權都是非常大的空中系統，而現在，在 10,000 英尺以下，制​​空權都是小型無人機系統。

So we've seen entirely new budgets either shifting or being created for small UAS, and it's taken this last year of unfortunate conflict in Ukraine for those budgets to start to move through. We now start to see requests and tasking orders, and procurement orders, and things like that flowing through to budget. And as we go into early next year, we'll see large military budgets starting to come into effect. And I think our product line is lined up quite nicely for that.

因此，我們已經看到了針對小型無人機的全新預算正在發生變化或正在製定，而這些預算是在去年烏克蘭發生的不幸衝突之後才開始實施的。我們現在開始看到請求、任務訂單、採購訂單以及類似的內容流向預算。當我們進入明年初時，我們將看到大量的軍事預算開始生效。我認為我們的產品線非常適合這一點。

In terms of our history, the bottom left here is toy drones, and the top right would be the most sophisticated AI-based predators, or reapers, or multi -- tens and tens of millions, if not $100 million systems. And the black dots represent the products that we have out in market. The blue dots represent systems that we've done contract engineering for with US military contractors. And the yellow would represent the types of systems that our personnel have worked on.

就我們的歷史而言，左下角是玩具無人機，右上角是最複雜的基於人工智能的捕食者，或收割者，或數以千萬計甚至數千萬美元的系統。黑點代表我們在市場上銷售的產品。藍點代表我們與美國軍事承包商進行合同工程的系統。黃色代表我們的人員所開發的系統類型。

So you can see, we skew heavily to a much more sophisticated drone system. And what's interesting about the military market is that's obviously where that needs to be. But when you think about the commercial market, now that it's maturing, they're looking at who has hardened systems, who has the most amount of flight times, who has systems that can operate in weather. And it's one thing to produce a drone, and this is a big thing that we're seeing at AUVSI, lots of new whiz-bangs out there, not as much vaporware. Still a lot of vaporware, but not as much, but lots of new whiz-bang features, great things like that, but not a lot of product that's ready to be sold into the market because it hasn't gone through extensive testing.

所以你可以看到，我們嚴重偏向於更複雜的無人機系統。軍事市場的有趣之處在於，這顯然正是需要的地方。但當你想到商業市場時，現在它已經成熟了，他們正在考慮誰擁有加固的系統，誰擁有最多的飛行時間，誰擁有可以在天氣條件下運行的系統。生產無人機是一回事，這是我們在 AUVSI 上看到的一件大事，那裡有很多新的高手，而不是那麼多蒸汽軟件。仍然有很多蒸汽軟件，但沒有那麼多，但有很多新的令人驚嘆的功能，諸如此類的偉大事物，但沒有很多產品準備銷往市場，因為它還沒有經過廣泛的測試。

And the product that is ready to go to market hasn't gone through the production cycle, for the most part 90% of it out there, where it can be done at scale. So what we're seeing in the marketplace going forward here is winning companies are the ones that can actually produce product and get it out into the market. And whiz-bang features are going to become a little bit less and less over the next 18 to 24 months. And so again, I think in this last quarter, we've got a new production facility coming online, actually, at the end of this month.

準備上市的產品還沒有經過生產週期，其中 90% 的大部分都已經完成，可以大規模生產。因此，我們在未來的市場中看到的是，獲勝的公司是那些能夠實際生產產品並將其推向市場的公司。在接下來的 18 到 24 個月內，出色的功能將會變得越來越少。再說一次，我認為在最後一個季度，我們實際上在本月底就有了一個新的生產設施上線。

And we've tried to time that as best as possible, when we see our sales ramping, which they're now doing, and we've got a backlog. And so, that production capacity is really, really important to us, and that I really want to throw it out to our team for the work that they've done in timing that, not overspending, building our infrastructure, not pre scaling, but at the same time, having a product that's ready to be sold into the market.

當我們看到我們的銷售量不斷增加（他們現在正在這樣做）並且我們有積壓的訂單時，我們會盡力安排最佳時間。因此，生產能力對我們來說真的非常重要，我真的很想把它交給我們的團隊，因為他們在時機上所做的工作，不是超支，是建設我們的基礎設施，不是預擴展，而是同時，擁有可以銷往市場的產品。

So just in terms of some operational highlights, Draganfly Heavy Lift drones, our Commander 3 XL, and our Draganfly LiDAR system. So the 3 XL is now -- we are now starting to carry inventory of it. It's all sold out and we're building up that inventory absolutely as fast as we can. The Heavy Lift drone, we've got multiple customers, either putting deposits or wanting to put deposits on it. It will be available Q4, really for full delivery into Q1. And our LiDAR system, we have systems sold, and again, it's probably about a Q3 before the production comes off there.

就一些操作亮點而言，Draganfly Heavy Lift 無人機、我們的 Commander 3 XL 和我們的 Draganfly LiDAR 系統。所以 3 XL 現在 - 我們現在開始庫存它。全部都賣完了，我們正在盡快建立庫存。重型無人機，我們有多個客戶，要么存了押金，要么想存押金。它將在第四季度上市，真正全面交付到第一季度。我們的激光雷達系統，我們已經出售了系統，而且，可能要到第三季度才能開始生產。

So a combination of getting the products ready, a combination -- and again, this is a new product cutover. So we've had several successful product lines in the past, and basically doing a cutover from last generation into this new generation, also taking into account the new rules and regulations that are available to us, and taking into account the new customer requirements.

因此，準備產品的組合，組合 - 再說一次，這是一個新產品的轉換。因此，我們過去擁有幾條成功的產品線，基本上是從上一代過渡到新一代，同時考慮到我們可用的新規則和規定，並考慮新的客戶要求。

So what you don't see here at this point are small UASes. Like that middle drone there, the Commander 3 XL, that's about the size of a coffee table. And just to give you a sense of the scale of it, that particular drone will lift 23 pounds. It's only about a 24-pound drone, so it's under the 55-pound regulatory limits that changes the scope of what the drone can do, that is allowed to do. It's probably the most efficient drone, and certainly, in terms of demand, we're going to have a tough time keeping up on this thing for quite some time.

所以你現在在這裡看不到的是小型無人機。就像那裡的中間無人機 Commander 3 XL 一樣，它的大小與咖啡桌差不多。為了讓您了解它的規模，這架特殊的無人機可以舉起 23 磅的重物。它僅重 24 磅的無人機，因此它處於 55 磅的監管限制之下，這改變了無人機可以做的事情的範圍，也就是允許做的事情。它可能是最高效的無人機，當然，就需求而言，我們將在相當長的一段時間內很難跟上這件事。

So as mentioned, we now have product waitlist. So again, the sales teams which have matured, our new ERP system has got put into place last year, our sales processes are hardened, and we've got experienced sales staff on now. And we've also have brought on new business development staff. So we didn't want to overscale or free scale on the biz dev side, and so we knew we could meet demand on the sales side.

如前所述，我們現在有產品候補名單。再說一次，銷售團隊已經成熟，我們的新 ERP 系統去年已經投入使用，我們的銷售流程得到了強化，我們現在擁有經驗豐富的銷售人員。我們還聘請了新的業務開發人員。因此，我們不想在業務開發方面過度擴展或自由擴展，因此我們知道我們可以滿足銷售方面的需求。

And so now, not only do we have a waitlist that's growing for both these product lines, but we now have business development that's adding into, okay, how are we actually going to be utilizing these with partners. And so, as evidence of that, in this last quarter -- actually, I'll come back to this slide in one second.

所以現在，我們不僅有一個不斷增長的這兩個產品線的候補名單，而且我們現在的業務發展也在增加，好吧，我們實際上將如何與合作夥伴一起利用這些產品。因此，作為證據，在最後一個季度，實際上，我將在一秒鐘內回到這張幻燈片。

In this last quarter, we announced four key partnerships. So we are direct-sales model; we do not sell through a reseller type of program. And as such -- and we're doing that for a number of reasons. One, it really helps ensure that the product that we're getting to the market, we have direct contact with the customer. So our customer is that end user, our customer is somebody who we want to create advantage for for their business, that's always been our ethos.

在最後一個季度，我們宣布了四個重要的合作夥伴關係。所以我們是直銷模式；我們不通過經銷商類型的計劃進行銷售。因此，我們這樣做有很多原因。第一，它確實有助於確保我們將產品推向市場時與客戶直接聯繫。因此，我們的客戶就是最終用戶，我們的客戶是我們希望為其業務創造優勢的人，這一直是我們的精神。

So as we go to market, how do we amplify our particular sales capabilities? Well, we do it through partnerships. Now, the Draganfly 3 XL drone is really designed to be a utility drone, kind of like the Jeep or the Humvee of the military in their day, where you could bolt on all types of systems to it. So what that means is that as we go to market, whether it's software or different payloads, that the -- actually, one of the biggest sales challenge that these partners have is that as they go out to market, they may have a particular customer that wants to use their particular software or their particular payload, but it's hard to match it with the drone that actually is integrated or can be used for that particular mission. Because it's too small, it doesn't fly long enough, the battery life, any number of reasons.

那麼當我們進入市場時，我們如何增強我們特定的銷售能力？嗯，我們通過合作夥伴關係來做到這一點。現在，Draganfly 3 XL 無人機實際上被設計為一款實用無人機，有點像當時軍用的吉普車或悍馬車，您可以在上面安裝所有類型的系統。因此，這意味著，當我們進入市場時，無論是軟件還是不同的有效負載，實際上，這些合作夥伴面臨的最大銷售挑戰之一是，當他們進入市場時，他們可能擁有特定的客戶想要使用他們的特定軟件或特定有效載荷，但很難將其與實際集成或可用於該特定任務的無人機相匹配。因為它太小，飛行時間不夠長，電池壽命，等等原因。

And so, what we've done in building the 3 XL in particular is a drone that already has dozens of payloads that fit onto it, it's integrated into several systems. And DJI had a very popular drone called the M600 that they took off life, and that this is now replaced into the market. So that the thousands and thousands of payloads that were designed for that actually clip right into this particular drone.

因此，我們在構建 3 XL 時所做的特別是一架無人機，它已經安裝了數十個有效載荷，並集成到多個系統中。 DJI 有一款非常受歡迎的無人機，名為 M600，他們下線了，現在已經更換到市場上。因此，為此設計的成千上萬的有效載荷實際上直接夾在這架特定的無人機中。

Now these partners here that we're listing are all strategically chosen and we're completely honored to be working with them. AgileMesh basically builds -- will add its technology to our UAV platform for wireless surveillance products. So these folks really are really strong in the public service and the public safety market, and so we're referring business back and forth with each other. They have a very specific market that they go after and our drone fits that very specific market within their vertical that they're doing, so we're honored to be working with them.

現在，我們列出的這些合作夥伴都是經過戰略選擇的，我們非常榮幸能夠與他們合作。 AgileMesh 基本上構建 - 將其技術添加到我們的無線監控產品無人機平台中。所以這些人在公共服務和公共安全市場上確實非常強大，所以我們互相推薦業務。他們有一個非常特定的市場，而我們的無人機適合他們正在做的垂直領域內的特定市場，因此我們很榮幸與他們合作。

SkyeBrowse integrates world-class reality capture platform with Draganfly software. Now, in theory, you can integrate this with any drone system, but as you optimize it with ours, there are a whole bunch of advantages. Everything from speed and accuracy and such, in terms of how it works with the Draganfly drone. And we have got a similar customer set that we can go and talk to.

SkyeBrowse 將世界一流的現實捕捉平台與 Draganfly 軟件集成在一起。現在，理論上，您可以將其與任何無人機系統集成，但是當您使用我們的系統對其進行優化時，會發現有很多優勢。從速度和準確性等一切方面，都涉及它如何與 Draganfly 無人機配合使用。我們有類似的客戶群，我們可以去交談。

Vermeer, this is primarily military, but it's got lots of commercial application as well. They provide virtualization environments in GPS-denied areas. So if you're flying in tether and you don't have GPS, but you need to fly either on screen or first person, they can actually provide an environment even if you don't have GPS in there.

維米爾，這主要是軍事用途，但也有很多商業應用。它們在 GPS 無法訪問的區域提供虛擬化環境。因此，如果您繫繩飛行並且沒有 GPS，但您需要在屏幕上或第一人稱飛行，那麼即使您沒有 GPS，它們實際上也可以提供環境。

And so, this is an organization, as all these organizations are, Vermeer and CODAN in particular, that are at SOFIC this week, which is the special operations conference down in Miami. And we certainly have representatives down there but both these organizations are carrying our product and our drones in their booth because we are co-selling into that market. And these are very established companies in that market.

因此，這是一個組織，就像所有這些組織一樣，特別是威猛 (Vermeer) 和 CODAN，它們本週在 SOFIC（邁阿密舉行的特別行動會議）上舉行。我們當然有代表在那裡，但這兩個組織都在他們的展位上展示了我們的產品和無人機，因為我們正在向該市場共同銷售。這些都是該市場上非常成熟的公司。

Really, really excited about our relationship with CODAN Communications, they provide a [CATM Radio]. We do work with other radio systems as well that are requested by our customers. There's incredible, great competitors in this market, the Silvus radio was one of them. In particular, we have built a really strong relationship with CODAN as they look at those particular markets.

我們對與 CODAN Communications 的關係感到非常非常興奮，他們提供了 [CATM 無線電]。我們還根據客戶的要求與其他無線電系統合作。這個市場上有令人難以置信的強大競爭對手，Silvus 收音機就是​​其中之一。特別是，我們與 CODAN 建立了非常牢固的關係，因為他們著眼於這些特定市場。

And we are co-developing products together, we're working in those particular markets. They've been very gracious in representing us at their shows. We have customer engagements that are happening with them at multiple places around the world, as we do with our other partners. And this is the type of work that will actually propel Draganfly forward, and these are the types of customers that help us do that.

我們正在共同開發產品，我們正在這些特定的市場上開展工作。他們非常慷慨地代表我們參加他們的演出。正如我們與其他合作夥伴所做的那樣，我們在世界各地的多個地方與他們進行客戶互動。這種類型的工作將真正推動 Draganfly 前進，而這些類型的客戶可以幫助我們做到這一點。

What I'd like to do now at this point is turn it over to Paul Sun to talk about our financial results for Q1. Paul.

現在我想做的是把它交給 Paul Sun 來談談我們第一季度的財務業績。保羅.

Thanks, Cam. And thanks, everybody, for joining. So looking at this table here, we'll go over the year-over-year comparisons for Q1 of this year versus Q1 of last year.

謝謝，卡姆。感謝大家的加入。因此，查看此表，我們將回顧今年第一季度與去年第一季度的同比比較。

So revenue for the first quarter was down 21% to $1.6 million from $2 million in the first quarter of 2022. As Cam mentioned at the outset, revenue comprised mainly of product sales, $1.38 million, with the balance coming from drone services. And as mentioned earlier, some of the reduction in revenue is due to new products, cutover, and production capacity build out. Gross profit was $443,000 due to a one-time write down of inventory and otherwise would have been $520,000 for the quarter, and as a percentage of revenues, would have been 32.5% this quarter, which is down 7.4% from the same quarter of last year.

因此，第一季度的收入從 2022 年第一季度的 200 萬美元下降了 21% 至 160 萬美元。正如 Cam 在開頭提到的，收入主要包括產品銷售，138 萬美元，其餘來自無人機服務。如前所述，收入減少的部分原因是新產品、割接和產能建設。由於一次性減記庫存，本季度毛利潤為 443,000 美元，否則本季度毛利潤為 520,000 美元，本季度佔收入的百分比為 32.5%，比上一季度下降 7.4%年。

Again, this is a result of more sales coming from lower margin products versus those sold in Q1 of last year, but the product mix just changes from quarter to quarter. Total comprehensive loss for the quarter was $7 million compared to a loss of $6.3 million in the same quarter of last year. This quarter, as mentioned, includes a non-cash change comprised of derivative liability of $57,000 and a write-down of $77,000 of inventory, and would otherwise be a comprehensive loss of $7 million, so no real big change there, versus an adjusted loss of $5 million a year ago. So the increase is due to higher office and miscellaneous, advertising, marketing, IR, wages, partially offset by lower insurance costs.

同樣，這是由於與去年第一季度銷售的產品相比，利潤率較低的產品銷量增加的結果，但產品組合只是隨季度而變化。本季度綜合虧損總額為 700 萬美元，而去年同期虧損為 630 萬美元。如前所述，本季度包括非現金變化，其中包括 57,000 美元的衍生負債和 77,000 美元的庫存減記，否則將產生 700 萬美元的綜合損失，因此與調整後的損失相比，沒有真正的重大變化一年前為 500 萬美元。因此，增加的原因是辦公室和雜項、廣告、營銷、IR、工資的增加，部分被保險費用的降低所抵消。

So continuing to focus on the quarter, if we now look at the table on the right, since I just went over year-over-year changes, we'll look at quarter-over-quarter changes, comparing this quarter to Q4 of last year. So in this case, revenue actually increased 22% to $1.6 million compared to $1.3 million in Q4 of last year due to higher product sales. Gross margin, as just mentioned, would have been 32.5%, the actual posted value was 28%, and that compares to a negative gross margin in Q4 due to an inventory write-down, et cetera.

因此，繼續關注本季度，如果我們現在查看右側的表格，因為我剛剛回顧了同比變化，我們將查看季度環比變化，將本季度與去年第四季度進行比較年。因此，在這種情況下，由於產品銷量增加，收入實際上比去年第四季度的 130 萬美元增長了 22%，達到 160 萬美元。正如剛才提到的，毛利率將為 32.5%，實際過賬價值為 28%，而第四季度由於庫存減記等原因，毛利率為負。

The gross margin actually would have been 24%, so we're still seeing an increase in gross margin of 8.5% quarter over quarter, again, due to the sales mix of the products sold. Total comprehensive loss, we talked about this, $7 million compared to a comprehensive loss of $16.7 million in Q4 of last year. And for those that were with us on the call then, we had a number of non-cash items last quarter, so if you excluded those, the comprehensive loss would have been $7.4 million in Q4. So our loss this quarter was a bit better primarily due to higher revenues.

毛利率實際上為 24%，因此，由於所售產品的銷售組合，我們仍然看到毛利率環比增長 8.5%。綜合虧損總額，我們談到了這一點，為 700 萬美元，而去年第四季度的綜合虧損為 1670 萬美元。對於當時與我們一起參加電話會議的人來說，上個季度我們有許多非現金項目，因此如果排除這些項目，第四季度的綜合損失將為 740 萬美元。因此，我們本季度的虧損有所好轉，主要是由於收入增加。

If we go to the next page, Cam, if we just look at on a high-level balance sheet, you can see that our total assets increased from $14.6 million to $19.6 million from the year end, which is largely due to the recent financing the company did. We have a strong working capital surplus. At the end of the quarter, we're at $14.7 million versus $10.2 million, and you can see that the company continues to have minimal debt. As mentioned, the company cash balance is $13.3 million compared to $7.8 million at the end of fiscal '22.

如果我們翻到下一頁，Cam，如果我們只看高級資產負債表，您可以看到我們的總資產從年底開始從 1460 萬美元增加到 1960 萬美元，這主要歸功於最近的融資公司做到了。我們擁有強勁的營運資金盈餘。本季度末，我們的債務水平為 1,470 萬美元，而同期為 1,020 萬美元，您可以看到該公司的債務仍然很少。如前所述，公司現金餘額為 1,330 萬美元，而 2022 財年末的現金餘額為 780 萬美元。

And with that, Cam, I'll pass it back to you.

卡姆，我會把它傳回給你。

Great. Thank you very much, Paul. That concludes the formal presentation. I think we're lucky enough to have some Q&A at this point, so I think I'll be turning it over to Scott.

偉大的。非常感謝你，保羅。正式演講到此結束。我想我們現在很幸運能夠進行一些問答，所以我想我會把它交給斯科特。

Yeah. Thanks, Cam. We have a number of questions that came in before the call, and of course, feel free to send the questions too during the call as well of course. There's some coming in right now. But I'm just going to go through some of these questions and I'll be screening them and send them back and forth to, either Paul or Cam as they come in.

是的。謝謝，卡姆。我們在通話之前提出了許多問題，當然，也可以在通話期間隨意發送問題。現在有一些進來了。但我只是要回答其中一些問題，然後我會對它們進行篩選，然後將它們來回發送給保羅或卡姆。

First question here, Cam. Talk a little more about Ukraine. Is this an area that we still want to be putting time and effort into it? What does it look like over the next six, 12 months? We haven't talked too much about customers, but what do you think the Ukrainian efforts that we're going to do is -- will impact Draganfly in the future?

第一個問題，卡姆。多談談烏克蘭。這是我們仍想投入時間和精力的領域嗎？未來 6、12 個月會是什麼樣子？我們沒有過多談論客戶，但您認為我們將在烏克蘭所做的努力會在未來對 Draganfly 產生什麼影響？

Yeah, great. I'm really glad somebody asked this question because I didn't focus on it purposely during this particular call because we wanted to get through and really talk more about where we're at on the product side, which has been a big focus of ours this last couple of quarters. Obviously, Ukraine remains strategically imperative to us, it's very, very important. It will -- in the future, if you are a player in Ukraine, you will be a credible player going forward in the UAS market. Obviously, not just in the commercial market, but on the defense side.

很好。我真的很高興有人問這個問題，因為在這次特定的電話會議中我沒有刻意關注這個問題，因為我們想打通並真正更多地討論我們在產品方面的進展，這一直是我們關注的重點我們最近幾個季度的情況。顯然，烏克蘭對我們來說仍然具有戰略重要性，它非常非常重要。將來，如果您是烏克蘭的參與者，您將成為無人機市場中值得信賴的參與者。顯然，不僅在商業市場，而且在國防方面。

The numbers that we talked about at the beginning, those industry numbers really don't account for what has happened in Ukraine and what this means in terms of what I refer to as air dominance and how budgets are now shifting toward that. I would say that the primary reason that we have so much activity in our military business right now is, quite frankly, because of the credibility that we've built up in tether in the Ukraine.

我們一開始談到的數字，這些行業數據確實沒有考慮到烏克蘭發生的事情，也沒有考慮到這對我所說的空中優勢意味著什麼，以及預算現在如何轉向這一點。我想說，坦率地說，我們現在在軍事業務上開展如此多活動的主要原因是我們在烏克蘭建立的信譽。

So we're there with pilots, we're there with people on the ground, we're doing demining, we understand the search-and-rescue, we understand reconnaissance, and basically the skill of what it takes for pilots to work. We have product that is hardened in those areas, and so that's a whole bunch of credibility as we are moving forward with our military prospects here. So just from that pure prospect, it's really important for us to be there.

所以我們和飛行員在一起，我們和地面人員在一起，我們在排雷，我們了解搜索和救援，我們了解偵察，以及飛行員工作所需的基本技能。我們擁有在這些領域得到強化的產品，因此當我們在這裡推進我們的軍事前景時，這是一個很大的可信度。因此，僅從這個純粹的前景來看，我們到達那裡真的很重要。

Now in terms of revenue generation out of Ukraine, we have been very focused on the demining market because it also has a much -- it has a very large global footprint. And it's not something that's been comprehensively tackled by somebody in the past because, one, it's tough work; but two, there's not really ever been this active of a tether deal in order to be able to do it. So we do have expectation of some significant announcements that will be coming from that particular business.

現在，就烏克蘭的創收而言，我們一直非常關注排雷市場，因為它在全球範圍內也有很大的影響力。過去沒有人全面解決過這個問題，因為，第一，這是一項艱鉅的工作；第二，這是一項艱鉅的工作。但第二，實際上還沒有如此活躍的系鏈交易能夠做到這一點。因此，我們確實預計該特定業務將發布一些重大公告。

But in terms of other drone sales and training, we are active in the region, and we had to be a little bit careful with announcements and such. But we expect Ukraine in particular to be a large revenue source for us and really a stepping stone for defense budgets over the next seven to 10 years, which will be at absolute record levels, in particular for drones and things like AI.

但就其他無人機銷售和培訓而言，我們在該地區很活躍，因此我們必須對公告等保持謹慎。但我們預計烏克蘭將成為我們的一個巨大收入來源，並且實際上是未來七到十年國防預算的墊腳石，這將達到絕對創紀錄的水平，特別是在無人機和人工智能等方面。

Thanks, Cam. Can you talk a little more about the production capacity? What does that look like? How is that scaling up? We've talked about it at the last call. Maybe give a little more color there if you can.

謝謝，卡姆。您能多談談生產能力嗎？那看起來像什麼？規模如何擴大？我們在上次通話中已經討論過這個問題。如果可以的話，也許可以多加一點顏色。

Yeah. So without saying things that probably might be a little closer to the edge, we -- on the new product lines, we were at a spot where we could produce tens at a time. Now, keep in mind that that was also because we're making product adjustments based on customer feedback and tests, and all the rest of it. Now, that the product, the 3 XL in particular, has hardened, we'd move to be able to be producing hundreds in a short timeframe.

是的。因此，不用說可能更接近邊緣的事情，我們 - 在新的產品線上，我們處於一次可以生產數十個的位置。現在，請記住，這也是因為我們正在根據客戶反饋和測試以及其他所有內容進行產品調整。現在，該產品（尤其是 3 XL）已經變得更加堅固，我們希望能夠在短時間內生產數百件。

And then, by Q2 of next year, we'll be in a spot where those kinds of scales are in thousands of a short timeframe. So that's a combination of the new plant opening up, it's a combination of new processes being implemented, it's a combination of some continual redesign of those products so that our production capacity is optimized, and we have less supply chain risks. These are all the things that when you're in manufacturing, especially in an industry that's so new and doesn't have set requirements coming out or even government regulations in some cases that would provide oversight on how certain things have to be done, you're in this kind of continual flux of like, okay, what does the customer need? What can the actual customer do? What did it -- and such.

然後，到明年第二季度，我們將在短時間內達到數千個此類規模。因此，這是新工廠開業的結合，是正在實施的新流程的結合，是對這些產品的不斷重新設計的結合，以便我們的生產能力得到優化，並且我們的供應鏈風險更少。這些都是當你從事製造業時，特別是在一個如此新的行業，沒有既定的要求，甚至在某些情況下沒有政府法規來監督某些事情必須如何完成時，你我們處於這種不斷變化的狀態，比如，好吧，客戶需要什麼？實際客戶可以做什麼？這是做什麼的——諸如此類。

So it's a very, very tough business and very tough time to build scale, unless you're in a consumer space where those things don't come into effect. So anyway, I think we're there now and we look forward to filling the backlog and having some financial results that demonstrate that.

因此，這是一個非常非常艱難的業務，也是非常艱難的時期來擴大規模，除非你處於這些事情不會生效的消費領域。所以無論如何，我認為我們現在已經做到了這一點，我們期待著填補積壓，並獲得一些財務業績來證明這一點。

Yeah, okay, good. Any progress here with Windfall Geotek in regards to land mine detection or some of the downstream stuff that we talked about with them before?

是啊，好吧，很好。 Windfall Geotek 在地雷探測或我們之前與他們討論過的一些下游問題方面有什麼進展嗎？

Yes, so they're active with us in our work that we're doing in the Ukraine. And certainly, the AI system that continues to develop out as we gain data, we think, will be game-changing in this space. So we're thrilled to be working with them, we have a strategic imperative to develop this out with them, and this is now moving over actually into our mining business as well more and more.

是的，所以他們積極參與我們在烏克蘭所做的工作。當然，我們認為，隨著我們獲取數據而不斷發展的人工智能係統將改變這個領域的遊戲規則。因此，我們很高興與他們合作，我們有與他們一起開發這一產品的戰略必要性，現在這實際上越來越多地轉移到我們的採礦業務中。

So I'm pretty excited about what's going on in the mining industry in terms of the size and type of drone that they are moving to which fits very, very well with our 3 XL. And then, obviously a number of the other players in the industry other than a couple of [launches] that we're dealing with moving to this AI software for prospecting. So I think our mining offering will be second to -- well, probably already is second to none, but we'll start to see some scale around that the next Q, maybe 2Qs.

因此，我對採礦業正在使用的無人機尺寸和類型感到非常興奮，這些無人機非常非常適合我們的 3 XL。然後，顯然，除了我們正在處理的幾個[發布]之外，該行業的許多其他參與者都在轉向這種人工智能軟件進行勘探。因此，我認為我們的挖礦產品將是首屈一指的——嗯，可能已經是首屈一指的了，但我們將在下一個季度（也許是兩個季度）開始看到一定的規模。

Paul Sun, maybe I'll throw this back to you. Can you talk a little more about the cash position, current cash burn, maybe a little more color just on the financial statements that we just released talked about? We did the financing, of course. We don't give guidance, we never have. But what runway does this look at? How we, in terms of expenses, things like that, without giving too much detail, but maybe a little color and commentary on that if you can.

Paul Sun，也許我會把這個還給你。您能否多談談現金狀況、當前的現金消耗，或者對我們剛剛發布的財務報表進行更多說明？當然，我們進行了融資。我們不提供指導，我們從來沒有提供指導。但這看起來是什麼跑道？我們如何，在費用方面，諸如此類的事情，沒有提供太多細節，但如果可以的話，也許可以提供一些顏色和評論。

Sure, yes. So we announced an $8 million financing right at the end of Q1. We also announced an at-the-market transaction which gives us, I think, flexibility to pull that (technical difficulty) we need it. As we've always said, we do balance cost versus scaling.

當然，是的。因此，我們在第一季度末宣布了 800 萬美元的融資。我們還宣布了一項市場交易，我認為這給了我們靈活性來解決我們需要的（技術難度）。正如我們一直所說的，我們確實在成本與擴展之間​​取得了平衡。

Cam just spoke a lot about how we're building capacity expansion, positioning ourselves. We have a lot of great initiatives, so I think it's really on us to decide how we deploy. If you look historically at our cash burn, it's anywhere, I guess, between $1 million and $1.5 million [on a single] month. So that's not necessarily to say that that's going to be, as Scott said, we don't give guidance, but kind of give you a sense of the range.

卡姆剛剛談到了我們如何進行產能擴張、如何定位自己。我們有很多偉大的舉措，所以我認為我們應該決定如何部署。如果你從歷史上看我們的現金消耗情況，我猜，每月的現金消耗量在 100 萬美元到 150 萬美元之間。因此，這並不一定意味著，正如斯科特所說，我們不會提供指導，而是讓您了解範圍。

If you look back at our quarters, we are cash flow negative right now. Our losses do fluctuate though. This loss, this time was better than last quarter, and sometimes, it flips back and forth. So we are cognizant. We have a healthy cash balance right now, so I think that gives us a lot of flexibility. And that can give us quite a bit of runway to do the things that we have in our business plan. So hopefully, that's -- again, be careful to not give too much detail, but hopefully that helps a little bit on the context.

如果你回顧我們的季度，我們現在的現金流為負。不過，我們的損失確實有所波動。這個虧損，這次比上季度要好一些，有時候，還會來回翻轉。所以我們是有認識的。我們現在擁有健康的現金餘額，所以我認為這給了我們很大的靈活性。這可以為我們提供相當多的跑道來完成我們商業計劃中的事情。因此，希望再次強調，請注意不要提供太多細節，但希望這對上下文有所幫助。

Yeah, good, thanks. With regards to the questions that came in advance, I think that's all of them actually. There's been a couple that have come through during -- a few that have come through during the call right now, and those are in the process of being answered. Maybe just a real quick one here, a technical one. How many shares do we have outstanding, Paul?

是的，很好，謝謝。至於之前提出的問題，我想其實就這些了。有一些人在通話期間接通了，有一些人現在在通話期間接通了，這些正在得到答复。也許這裡只是一個真正快速的、技術性的。保羅，我們還有多少流通股？

Yes, we are at 43 million-ish.

是的，我們有 4300 萬左右。

Okay. So that is all the questions. That's all the questions that have come in and all the questions that we've answered or that were e-mailed in before. And then, there are still one or two that are still being answered right now, just ones that are answered in the chat for those of you who have sent those in, so we'll continue to do that. So I think with that said and done, Cam, unless there's anything else, I think we can probably sign off. I'll let you go ahead.

好的。這就是所有的問題。這是所有收到的問題以及我們已經回答或之前通過電子郵件發送的所有問題。然後，現在仍有一兩個問題仍在得到答复，只是在聊天中為那些已發送這些問題的人得到答复，所以我們將繼續這樣做。所以我認為，既然如此，卡姆，除非還有其他事情，我想我們可能可以結束了。我會讓你繼續前進。

Yeah, you're on mute, Cam.

是的，你處於靜音狀態，卡姆。

Probably, everybody was relieved at that. So I was just trying to get through a couple of questions in the chat before we signed off.

想必大家都鬆了口氣。所以在我們結束之前，我只是想在聊天中解決幾個問題。

So thanks, everybody, for your time and consideration. I have an opportunity to talk with a lot of shareholders and really appreciate the faith and trust, and we'll continue to work to be of service. The AUVSI show right now, and the SOFIC show are really indicative of what's going on in the industry. And to say the interest is overwhelming is probably accurate, and it's really because we have products that's ready for the market now and the majority of the rest of the market doesn't.

謝謝大家的時間和考慮。我有機會與很多股東交談，非常感謝他們的信任和信任，我們將繼續努力提供服務。目前的 AUVSI 展會和 SOFIC 展會確實表明了該行業正在發生的事情。說人們的興趣是壓倒性的可能是準確的，這實際上是因為我們的產品現在已經準備好投入市場，而市場上的其他大多數產品還沒有準備好。

They have product that's either going through testing or it looks good or -- and not that there isn't other product out there that's available, but there's a real surge and a real opportunity. So it's been a long haul, it's been a struggle, but we'll continue to work this through. And -- but it's difficult, as it is for us, as it is for everybody out there.

他們的產品要么正在接受測試，要么看起來不錯，或者——並不是說沒有其他產品可用，而是存在真正的激增和真正的機會。所以這是一個漫長的過程，這是一場鬥爭，但我們將繼續努力解決這個問題。而且——但這很困難，對我們來說，對每個人來說都是如此。

But I think we're there, and it's fun to be on the road selling. Not that -- I love product building, as does our team, but it's fun to be on the road selling now that we can start to deliver. So thanks, everybody, for your time and consideration, and please follow up with any questions that we didn't get to with Rolly, and he and I will do our best to get back to you as soon as we can.

但我認為我們已經做到了，而且在路上銷售很有趣。並不是這樣——我和我們的團隊一樣喜歡產品構建，但現在我們可以開始交付，在路上銷售很有趣。因此，感謝大家的時間和考慮，如果有任何我們沒有與 Rolly 聯繫的問題，請跟進，他和我將盡最大努力盡快回复您。

The recording has stopped.

錄音已停止。