Draganfly Inc (DPRO) 2023 Q4 法說會逐字稿

Good afternoon and welcome to the Dragonfly 2023 Q4. (technical difficulty)

下午好，歡迎來到蜻蜓 2023 年第四季。（技術難度）

Yes, thanks, really appreciate everybody taking the time today to us it on the earnings call. We really appreciate your trust and consideration. So 2023 was a pivotal year for Dragonfly highlighted, in particular by the fact that we now shift our production to organic capability to produce well over CAD100 million internally of product with two production lines on our two main products, which I'll talk about here shortly. We still maintain our full custom and contract engineering capabilities as well as our work benches, which enable us to produce smaller batches as well.

是的，謝謝，非常感謝大家今天在財報電話會議上抽出時間來接受我們的訪問。我們非常感謝您的信任與考慮。因此，2023 年對Dragonfly 來說是關鍵的一年，特別是我們現在將生產轉向有機能力，在我們的兩種主要產品上有兩條生產線，內部生產超過1 億加元的產品，我將在這裡討論不久。我們仍然保持完整的客製化和合約工程能力以及工作台，這使我們能夠生產小批量的產品。

So in 2023, we had a little bit by design, especially in the last two quarters or three quarters, but two, in particular, with building out our new plants, understanding that we weren't going to grow the revenues because in fact, we couldn't grow the revenue because of capacity issues. So our revenue for the year was CAD6.5 million with product sales being CAD5.2 million in provision of services being CAD1.26 million. We did have a gross profit margin of CAD2 million on that so fairly healthy and which is about 31.5%. And as of the end of December, we had a cash balance of just over CAD3 million. So some operational highlights from Q4 in particular was us receiving special flight operations certificates for transport from Transport Canada, and we have received other certificates as well from the other jurisdictions.

因此，到 2023 年，我們有一些設計，特別是在過去的兩個季度或三個季度，但特別是在建造新工廠的兩個季度，我們明白我們不會增加收入，因為事實上，由於產能問題，我們無法增加收入。因此，我們今年的收入為 650 萬加元，其中產品銷售額為 520 萬加元，提供服務為 126 萬加元。我們確實有 200 萬加元的毛利率，相當健康，約 31.5%。截至 12 月底，我們的現金餘額剛超過 300 萬加元。因此，第四季度的一些營運亮點特別是我們從加拿大運輸部獲得了運輸特殊飛行營運證書，我們也從其他司法管轄區獲得了其他證書。

And these ones in particular were for the wildfire services that we are providing up to the Canadian government. This is an area that's going to grow significantly for us this coming year and we as highlighted by the capabilities of the particular drones that we have manufactured. We've also been working very, very closely with the United Nations on several initiatives that do relate to wildfires and in particular, climate change. And I've had spoken a number of times and consulted several times as well with the world meteorological association in conjunction with the international center of digital innovation, all part of the United Nations Convention to compact decertification And further to that.

這些特別是我們向加拿大政府提供的野火服務。這是我們明年將顯著成長的一個領域，我們製造的特定無人機的功能強調了這一點。我們也一直與聯合國就多項與野火、特別是氣候變遷有關的措施進行非常非常密切的合作。我曾多次與世界氣象協會和國際數位創新中心進行過交談和磋商，這些都是《聯合國緊湊取消認證公約》的一部分，除此之外。

And by far, the enormously fast-growing area of the entire drone market is the defense space and a couple of highlights from Q4, in particular, where our not just our display, but our demonstrations at Modern Warfare, we not just have the commander of three XL, but also of several payload partners that participated in Modern Warfare week with us on leading up to that. And out of that, we have done through Q4 and into this year. We have done multiple live test scenarios and exclusive demonstrations with multiple branches of the DoD. And I and Doug and those continue to push forward in support of the of the orders that we have coming forward in that regard.

到目前為止，整個無人機市場成長極快的領域是國防領域，特別是第四季度的一些亮點，我們不僅有我們的展示，還有我們在《現代戰爭》中的演示，我們不僅有指揮官三個 XL，還有幾個在這之前與我們一起參加現代戰爭週的有效載荷合作夥伴。由此，我們已經完成了第四季和今年的工作。我們已經與國防部的多個部門進行了多個現場測試場景和獨家演示。我和道格以及其他人繼續推動支持我們在這方面提出的命令。

So a couple of other things again to highlight was, was our no our new plant is now fully operational. It went it opened in Q three in Q4, it went operational. We have received several Best Practices certificates and participated in a number of audits from different defenses or militaries in order to certify that plant ready for production of which we're just now completing all of those certifications. So pretty exciting time for the entire team and the organization.

因此，再次強調的其他幾件事是，我們的新工廠現已全面投入運作。它於第四季第三季開業，並投入營運。我們已經獲得了多個最佳實踐證書，並參加了來自不同國防或軍隊的多次審核，以證明該工廠已準備好進行生產，我們剛剛完成了所有這些認證。對於整個團隊和組織來說，這是非常令人興奮的時刻。

I think Also of note, in Q4, we did unveil the Commander three XL hybrid. Now this is a hybrid that's really in demand in particular that not just from our commercial customers but from military customers. So this takes all of the capabilities of the Commander three XL, which is really the Swiss Army knife of drones and puts a hybrid engine on it, whereby we can run it by gas or electric, it takes the operational timeframe from about 50 minutes up to about 2.5 hours. So you can imagine the increased flight time to increase range and the entire engine on that only weighs about CAD9. So we're still have capability of well over 10 between 10 and CAD15 commercially and even greater than that for military operations or defense operations.

我認為還值得注意的是，在第四季度，我們確實推出了 Commander 3 XL 混合動力車。現在，這是一種真正需要的混合動力，特別是不僅來自我們的商業客戶，而且來自軍事客戶。因此，這需要 Commander 3 XL 的所有功能，這實際上是無人機中的瑞士軍刀，並在其上安裝了混合動力發動機，我們可以透過汽油或電力運行它，它需要大約 50 分鐘的操作時間至約2.5小時。因此，您可以想像增加飛行時間以增加航程，而整個引擎的重量僅為 9 CAD 左右。因此，我們仍然擁有遠遠超過 10 到 15 加元之間的商業能力，甚至比軍事行動或國防行動的能力還要強大。

It can be carrying payloads, whatever those payloads on maybe on interestingly enough, a lot of those payloads as we're now looking at our actually other drones that are dropping particular FPV. drones and with warming capabilities. Again, this is when we designed that Commander three XL, we designed it with the ultimate in flexibility that we didn't anticipate being able to or we didn't anticipate necessarily putting on a hybrid engine or being able to drop other drone systems or creates warming with it. But that's just an indication of the versatility of this drone.

它可以攜帶有效載荷，無論這些有效載荷是什麼，有趣的是，許多這樣的有效載荷，因為我們現在正在研究我們實際上正在投放特定 FPV 的其他無人機。無人機並具有升溫功能。再說一次，當我們設計 Commander 3 XL 時，我們設計了它具有終極的靈活性，這是我們沒有預料到的，或者我們沒有預料到一定要配備混合動力發動機或能夠放棄其他無人機系統或用它創造溫暖。但這只是這款無人機多功能性的體現。

We also hosted our first Dragon fire experience, which was a first responder User Conference at our joint air flight facility in Texas. We had at least a dozen different services there in attendance, training, testing, flying machines, trying pay loads, working through key use case scenarios, working through con ops, a number of different things. And so that whole facility for us has just turned out to be an incredible opportunity for us to demonstrate not just our capabilities, but actually provide flight training and testing for Conops or used potential use cases that maybe aren't necessarily available for some of our customers to do at their own facilities or if they have facilities at all.

我們也在德州的聯合空中飛行設施舉辦了第一次「龍火」體驗，即第一響應者用戶會議。我們在那裡提供了至少十幾種不同的服務，包括出席、培訓、測試、飛行器、嘗試有效負載、處理關鍵用例場景、處理操作等許多不同的事情。因此，整個設施對我們來說是一個令人難以置信的機會，不僅可以展示我們的能力，而且實際上可以為Conops 提供飛行訓練和測試，或者使用可能不一定適用於我們的某些人的潛在用例。客戶可以在自己的設施或有設施的情況下進行。

And so this facility itself has everything from sensor calibration to the mining to to tactical grounds to all sorts of different training as scenarios as well as conference centers and sites. And so we look forward to hosting more of our user conferences there as well as keeping extremely busy as it has been with our our customers. And the thing that's kind of interesting, especially in this Q2 and coming out of Q4 is that we've got a record pipeline and a number of customer demonstrations that are happening. And in fact, we've really had to temper that it simply because of the amount of orders that we're now preparing to fulfill and the resources that we have at hand in order to do both of that work and the work that we've got in terms of all the training and testing that's happening.

因此，該設施本身擁有從感測器校準到採礦、戰術場地、各種不同的訓練場景以及會議中心和場地的一切。因此，我們期待在那裡舉辦更多的用戶會議，並像與我們的客戶一樣保持非常忙碌的狀態。有趣的是，特別是在第二季和第四季之後，我們擁有創紀錄的管道和正在進行的大量客戶演示。事實上，我們確實不得不調整它，僅僅是因為我們現在準備好履行的訂單數量以及我們手頭上的資源，以便完成這項工作和我們的工作。我們已經了解了正在發生的所有培訓和測試。

So and it's interesting and positive challenge they have. But nonetheless, we can't, for technical reasons, call it, backlog as of the moment, I buy it, but we can call it some qualified pipeline and customer demonstrations. So we're at record numbers there. As everyone knows. I think the drone industry is is growing. But the military impact has really been absolutely incredible since the I think really all nations all defense departments, but in particular and at NATO departments are really focusing on the small UAV market and the Ukraine theater has demonstrated that small UAV is the tactical advantage now from anything from 5,000 feet down.

因此，他們面臨著有趣且積極的挑戰。但儘管如此，由於技術原因，我們不能稱之為“積壓”，我買它，但我們可以稱之為一些合格的管道和客戶演示。所以我們的人數創歷史新高。眾所周知。我認為無人機產業正在成長。但軍事影響確實是絕對令人難以置信的，因為我認為所有國家的所有國防部門，特別是北約部門都真正關注小型無人機市場，烏克蘭戰區已經證明小型無人機現在是戰術優勢5,000 英尺以下的任何物體。

So if you want air dominance, you really need to deploy these types of drones. So whether that's a heavy lift drone, whether it's reconnaissance drones, whether it's FPV. being first person flyer draws, whether it be logistics drones, whether it be munitions, whatever the case is, it is now all about drones. And we think we're really well positioned with the product lineup that we have designed to be incredibly versatile on steel going into this last couple of years. I think it's worth noting again that our experience and background, while we're the oldest commercial manufacturer in the world, one of the reasons that we're the oldest commercial manufacturers in the world is that we've done contract engineering for the military primes, you know, for basically about the last 18 or 19 years.

因此，如果你想要製空權，你確實需要部署這些類型的無人機。無論是重型無人機、偵察無人機、或 FPV。作為第一人稱傳單，無論是物流無人機，無論是彈藥，無論是什麼情況，現在都是無人機。我們認為我們的產品系列確實處於有利位置，我們設計的產品系列在過去幾年中在鋼鐵上具有令人難以置信的多功能性。我認為再次值得注意的是，我們的經驗和背景，雖然我們是世界上最古老的商業製造商，但我們成為世界上最古老的商業製造商的原因之一是我們為軍方做過合約工程你知道，質數基本上是在過去18 或19 年出現的。

And that's in fact, what has been able to sustain the company while all the other North American companies didn't survive the last 20 years. So this slide here just shows an example of the types of products that we have out there type of products. We've worked on the types of products that we have worked on for other organizations and that top-right corner represents basically military and artificial intelligence where the bottom left corner would be, you know, a very consumer type of toys. So we'll continue to focus in this area and as Fortune would have it at some unfortunately geopolitically. But as Fortune would have it, it is the fastest growing area and I think we're well positioned to grow. It's becoming a major player in that.

事實上，這就是在過去 20 年裡所有其他北美公司都未能生存下來的情況下，公司得以維持下去的原因。因此，這張投影片僅顯示了我們現有產品類型的範例。我們已經開發了我們為其他組織開發的產品類型，右上角基本上代表軍事和人工智慧，而左下角將是一種非常消費性的玩具。因此，我們將繼續關注這一領域，不幸的是，《財星》雜誌將在地緣政治方面對此進行關注。但正如《財星》雜誌所說，它是成長最快的領域，我認為我們已經做好了成長的準備。它正在成為其中的主要參與者。

And just a quick product review and update. We've got our heavy lift drones. As mentioned, we've launched the Commander three XL. We have precision delivery systems we have quick release delivery boxes. We do have many payloads are integrated with dozens of different sensors from other manufacturers, whether those cameras, whether they're ordinance, whether their surveillance or whatever, the case may be. We've really, again designed this system so that all of those payloads can fit on this. And then we are approaching the market as partners. The majority of our pipeline work now really is coming in from our payload partners.

並且只是快速的產品審查和更新。我們有重型無人機。如前所述，我們推出了 Commander 3 XL。我們有精密的交付系統，我們有快速釋放的交付箱。我們確實有許多有效載荷與其他製造商的數十個不同感測器集成，無論是那些攝影機，無論它們是法令，無論是監視還是其他什麼，情況可能如此。我們真的再次設計了這個系統，以便所有這些有效負載都可以安裝在這個系統上。然後我們作為合作夥伴進入市場。我們現在的大部分管道工作確實來自我們的有效負載合作夥伴。

So the payload partners work with the customer, whether it's commercial or primary military right now on where they've got a specific capability on their sensor and then that sensor is in demand. And then what we've done is integrated with that center to be the best of breed for that sensor to be able to work. And a big part of that is the amount of battery life that we can deliver and the amount of range that we can deliver with our particular platforms. It should be noted that we will unexpectedly we will be having a number of products come out through the rest of the year. These are purpose driven products. These are products that have been specifically requested for us to build by customers at scale.

因此，有效載荷合作夥伴與客戶合作，無論是商業客戶還是初級軍事客戶，他們的感測器都具有特定的功能，然後該感測器是有需求的。然後我們所做的就是與該中心集成，成為該感測器能夠工作的最佳品種。其中很大一部分是我們可以提供的電池壽命以及我們可以透過我們的特定平台提供的範圍。應該指出的是，我們將出乎意料地在今年剩餘時間內推出許多產品。這些是目的驅動的產品。這些是客戶特別要求我們大規模生產的產品。

And so this has been the real kind of eye-opening and pleasurable surprise that we've had this year where we've standardized on our Commander three XL and our heavy lift drone as a platform, we will be having some new products come out this year that we will put into production lines by Q1 of next year on that, which is a lot quicker than we thought. But it's just based on the on the specifications and the types of customers are ordering and giving us demand signals at size. So on this note, I'm going to turn it over to Paul to run through our financials, and then I'll come back and go through some Q&A. Paul?

因此，這是我們今年真正令人大開眼界和令人愉快的驚喜，我們已經標準化了 Commander 3 XL 和重型無人機作為平台，我們將推出一些新產品今年我們將在明年第一季投入生產線，這比我們想像的要快得多。但這只是基於客戶訂購的規格和類型並向我們提供尺寸的需求訊號。因此，在這一點上，我將把它交給保羅來瀏覽我們的財務狀況，然後我會回來進行一些問答。保羅？

Thanks, Cameron, and thanks, everybody, for joining. As usual. At the beginning of the presentation. Kim went through the revenue for the year. Just to reiterate CAD6.6 million versus 7.6 year over year is down about 13%. And I think Kim explained the reason why that happened. Again, the split on revenue, CAD5.3 million from product sales, 1.3 coming from drone services. Gross profit side, CAD2.1 million for the year compared to 791,000 from last year of this year's gross profit included a onetime noncash write-down of inventory of about 331,000, while last year's included a non cash adjustment of 1.9. So to do an apples to apples, if we ex of these adjustments, gross profit decreased by about 370,000 year over year. And as a percentage of sales adjusted margin increased from 36.4% last year to 36.5, so pretty much the same year over year.

謝謝卡梅倫，也謝謝大家的加入。照常。在演示開始時。Kim 回顧了這一年的收入。重申一下，660 萬加元與去年同期的 7.6 加元相比下降了約 13%。我認為金解釋了發生這種情況的原因。同樣是收入分配，530 萬加元來自產品銷售，1.3 加元來自無人機服務。毛利方面，今年毛利為 210 萬加元，去年為 791,000 加元。今年的毛利為 331,000 的一次性非現金庫存減記，而去年則包括 1.9 的非現金調整。因此，如果剔除這些調整，毛利年減約37萬。調整後利潤率佔銷售額的百分比從去年的 36.4% 增至 36.5%，與去年同期基本持平。

On a gross margin perspective, our total comprehensive loss for the year, including all noncash items, was CAD23.7 million compared to a loss of 27.3 last year. Again, there was the non-cash changes comprised of a gain in fair value of derivative liability of 211,000 in expense impairment on some notes receivable of one or 1,000 and a write-down of inventory of three 31 have an expense of goodwill and intangible impairment of about 87,000. So otherwise comprehensive net of all that I actually want to change too much, CAD23.4 million versus last year's CAD24 million, again, on an apples to apples adjusted basis. So slightly better year over year. And then following that, the adjusted loss per share this year would still pretty much be the same at CAD0.56 compared to the adjusted loss from last year of about 71 versus the CAD0.81 shown here on the next slide, please.

從毛利率角度來看，我們今年的綜合虧損總額（包括所有非現金項目）為 2,370 萬加元，而去年為虧損 27.3 加元。同樣，非現金變動包括衍生性負債公允價值收益 211,000 部分應收票據費用減損 1 或 1,000 以及存貨減記 31 31 包括商譽費用及無形減損約87,000。因此，綜合考慮我實際上想要改變太多的因素，2340 萬加元與去年的 2400 萬加元相比，同樣是在同類調整的基礎上進行的。所以比去年同期稍微好一點。接下來，今年調整後每股虧損仍為 0.56 加元，而去年調整後每股虧損約為 71 加元，請在下一張幻燈片中顯示 0.81 加元。

In the SCOOP. Yes, just kind of looked at the quarters now. So we just went year over year, so we'll now look at Q4, doing a year-over-year comparison of revenue. For the fourth quarter, it was down about 30% to 916,000 from CAD1.3 million in the fourth quarter of 2022. Our fourth quarter revenue comprised of about 671,000 from product sales with the balance of to 44,000 coming from drone services gross profit was 258,000 compared to negative CAD1.6 million in Q4 of last year due to a onetime noncash write-down of inventory and otherwise would have been 310,000 for the same quarter last year. So gross profit for Q4 of this year would have been three, two.

在獨家新聞中。是的，現在只是看看宿舍。所以我們只是逐年比較，所以我們現在看看第四季度，將收入同比比較。第四季的銷量較 2022 年第四季的 130 萬加元下降約 30% 至 91.6 萬加元。我們第四季的收入約為671,000 加元，來自產品銷售，其餘44,000 加元來自無人機服務。毛利為258,000 加元，而去年第四季為負160 萬加元，原因是一次性非現金減記庫存，否則去年同期為 31 萬人。因此，今年第四季的毛利將為三、二。

If we took away the one-time inventory write-down of 123,000, while Q4 last year would have been three 10 due to the one-time write-down that I mentioned earlier. Hence, gross profit for the quarter, it was up 23.1% year over year, while the adjusted margin as a percentage of revenue was 41.7 versus last year's 23.6. So they jumped on the quarters on a gross margin basis. And that's as a result of more sales coming from higher margin products in this quarter versus same quarter last year on the comprehensive loss for the quarter, CAD4.2 million compared to a loss of CAD16.7 million in the same quarter last year.

如果我們去掉123,000的一次性庫存減記，那麼去年第四季由於我之前提到的一次性減記，就已經是三個10了。因此，本季毛利年增 23.1%，調整後利潤率佔營收的百分比為 41.7，而去年為 23.6。因此，他們在毛利率的基礎上躍升了季度。這是由於本季利潤率較高的產品的銷售額高於去年同期，該季度的綜合虧損為 420 萬加元，而去年同期的虧損為 1,670 萬加元。

And as mentioned, the quarter included no change comprised of a fair value of derivative liability of CAD154,123 inventory write-down and would otherwise be a comprehensive loss of CAD4.2 million comparing to an adjusted loss of CAD7.5 million, actually, no, that quarter's one-time items. So again, loss a quarter for the year for Q4, quite a bit better decrease is primarily due to lower professional fees, wage costs and share-based compensation. We just went through the year over year outlook for the quarter now looked at the quarter-over-quarter changes, meaning Q4 to Q3. So basically, so just the previous cell, the same slide.

如前所述，該季度沒有包含衍生負債公允價值 154,123 加元庫存減記的變化，否則將產生 420 萬加元的綜合損失，而調整後的損失為 750 萬加元，實際上，不，那一季的一次性物品。因此，第四季全年虧損一個季度，降幅明顯好一些，主要是因為專業費用、薪資成本和股權激勵的降低。我們剛剛瀏覽了本季的年比展望，現在查看了季度環比變化，即第四季度到第三季度。基本上，就是前一個單元格，同一張投影片。

Yes, that's right. So so basically, revenue for Q4 was down 57% compared to Q. three just mainly due to some lower product sales. Gross margin as a percentage for Q4 was 28.3% compared to 41% in the previous quarter. However, if we back out the one-time inventory write-down, gross margin for Q4, as mentioned was effectively 41.7%. So pretty much in line with the previous quarter. Our total comprehensive loss for Q4 CAD4.2 million. Again, at this time, we compare to a loss of CAD5.5 million in the previous quarter. Again, we ex out the one-time gain in fair value of derivative liability and the write-down of the inventory. So that loss would have been 4.2 and we compare that to CAD5.4 million for the previous quarter. So again, over quarter, the loss is better. And again, the decrease is primarily due to professional fees and wage costs.

恩，那就對了。所以基本上，第四季的營收比第三季下降了 57%，主要是因為產品銷售下降。第四季毛利率為 28.3%，而上一季為 41%。然而，如果我們取消一次性庫存減記，則如上所述，第四季度的毛利率實際上為 41.7%。與上一季基本一致。第四季我們的綜合虧損總額為 420 萬加幣。此時，我們再次將上一季的虧損 550 萬加元進行比較。我們再次剔除衍生負債公允價值的一次性收益和存貨減記。因此，損失將為 4.2，我們將其與上一季的 540 萬加元進行比較。再次強調，在季度中，虧損情況有所改善。同樣，下降的主要原因是專業費用和工資成本。

Now on the final slide, you just move it forward, but tibia and scrape. However, you can see total assets decreased from CAD14.6 million to CAD8.3 million year over year, which is largely due to the deployment of cash and reduction of receivables and prepaids working capital deficit at the end of the year of seven 17 actually would have been a surplus of CAD3.5 million and shareholders' equity would have been CAD4.6 million versus the 408,000 shown here. If we ex out the non-cash fair value of the derivative liability of CAD4.2 million. So just to remind everyone, the derivative liability comes from the fact that our functional currency is in is in Canadian and we have some US-dollar denominated warrants, which the treatment is that it's a liability and which is why we're actually going out just to kind of help you see that the actual results and you can see we continue to have minimal debt. And as Ken stated at the outset, cash balance at the end of the year was CAD3.1 million compared to CAD7.9 million a year ago. And with that, I'll pass it back to Cameron.

現在在最後一張投影片上，您只需將其向前移動，但脛骨和刮擦。然而，您可以看到總資產同比從1,460萬加元下降至830萬加元，這主要是由於7 17年末現金的部署以及應收賬款和預付流動資金赤字的減少。盈餘將為350 萬加元，股東權益將為460 萬加元，而此處所示為408,000 加元。如果我們剔除衍生負債的非現金公允價值 420 萬加元。因此，提醒大家，衍生性商品負債來自這樣一個事實：我們的功能貨幣是加拿大元，並且我們有一些以美元計價的認股權證，其處理方法是它是一種負債，這就是我們實際上要出去的原因只是為了幫助您了解實際結果，您可以看到我們的債務仍然很少。正如 Ken 在開頭所說，年末現金餘額為 310 萬加元，而一年前為 790 萬加元。然後我會把它傳回給卡梅倫。

Thanks, Paul. Appreciate it. And what I'll do now is I'm going to just go to the questions that came in and were forwarded to me. And but as Of note, if there is any questions, don't I don't feel be afraid at all to reach out to me or to Raleigh, I do my best to get back to everybody. It's it's overwhedssdfsdlming at times, sometimes it's tough. And if I missed it, I apologize. But between rolling and I think we come close to hitting about 100% of anybody that right tenant, we certainly tried to anyway.

謝謝，保羅。欣賞它。我現在要做的就是回答收到並轉發給我的問題。但值得注意的是，如果有任何問題，我一點也不害怕與我或羅利聯繫，我會盡力回覆每個人。有時它是令人難以承受的，有時又是艱難的。如果我錯過了，我深表歉意。但在滾動期間，我認為我們接近 100% 找到合適的租戶，無論如何我們確實嘗試過。

So my first question is what percent of the Company's revenue is commercial versus defense. And right now it is there and it was it would be I guess I'll give an approximation right now. Would probably be based on the numbers that we just went through here and probably be about 85% commercial and 50% defense as I kind of like I'm that's very very broad by rule on. However, you can expect an answer for I qualify this by saying in my opinion is that in the coming this year, you'll basically you'll end up seeing this being 99% defense, then maybe that's a bit of an overstatement, but let's call it 90% defense and the rest on the commercial and ad buy by way of example, one order that comes out of the customer base that we're working with right now in the defense market, it would be multiple times the size of our revenue for the past number of years.

所以我的第一個問題是公司收入中商業收入和國防收入的百分比是多少。現在它就在那裡，我想我現在就會給出一個近似值。可能會基於我們剛剛在這裡查看的數字，大約 85% 是商業性的，50% 是防禦性的，因為我有點喜歡我的規則，這非常非常廣泛。然而，你可以期待一個答案，我對此進行了限定，在我看來，在即將到來的今年，你基本上最終會看到這是 99% 的防禦，那麼也許這有點誇張，但是我們稱其為90% 的國防，其餘的則用於商業和廣告購買，例如，來自我們目前在國防市場上合作的客戶群的一份訂單，其規模將是我們過去幾年的收入。

So it would just absolutely dwarf the commercial numbers. And that's where we've been putting our focus because that's where the big win is for the shareholders. That's where the big scale is. So it's been a bit of a bold decision to do that because we've not been scaling the commercial business, even though there's really good demand there. And we've been focusing on getting the certifications in and meeting the demand requirements on the military side. So while it seems skewed right now in the commercial side, the reality is it's incredible. It skewed on the military side. So hopefully that provides some clarity to that question on the second question that I've got here is that you mentioned that you have all this demand and an increased capacity yet we haven't seen the new contracts and why.

所以它絕對會讓商業數字相形見絀。這就是我們一直關注的地方，因為這就是股東的巨大勝利。這就是規模大的地方。因此，這樣做是一個有點大膽的決定，因為我們還沒有擴大商業業務，儘管那裡的需求確實很大。我們一直專注於獲得認證並滿足軍事方面的需求。因此，雖然現在在商業方面似乎有所偏差，但現實是它令人難以置信。它偏向軍事方面。因此，希望這可以澄清我在這裡提出的第二個問題，即您提到您有所有這些需求和增加的產能，但我們還沒有看到新合約以及原因。

And so we've got the new plant built. We're going through the I'll call it the program of record certifications, all the rest of the clearances, everything that has to happen in order for the orders to start flowing. And I know there's very big moats around these orders. They're getting incredible amount of testing. And there's it's been a year and a half, almost two years of really intense work with multiple areas of it of DODI. in order to to put these products through and done, it's and that's why it's just taken that much time. We're not seeing anybody else scale at this point either. But we every I think it's pretty well known that there are a few of other players out there.

我們已經建造了新工廠。我們正在經歷我稱之為記錄認證計劃，所有其餘的許可，以及為了訂單開始流動而必須發生的一切。我知道這些訂單周圍有很大的護城河。他們正在接受大量的測試。DODI 在多個領域進行了一年半、近兩年的緊張工作。為了完成這些產品，這就是為什麼它花了這麼多時間。目前我們也沒有看到其他人擴大規模。但我認為眾所周知，還有其他一些球員。

Accrue have well known names, a couple of which one in particular are public. They're on the verge of scaling as well, and we're just starting to see the beginnings of that. So I think we're on track with just the fact where the purchasing cycle is on for this right now and so on. What and again, we couldn't be I mean, I still kind of scratch my head every day that not just the size, but at the capability and the requirements and the trust and the amount of exposure and the depth at which we're able to, we're being trusted and on and on every morning,

Accrue 擁有眾所周知的名字，其中有幾個特別是公開的。它們也處於擴展的邊緣，而我們才剛開始看到它的開始。因此，我認為我們正在步入正軌，因為採購週期現在已經開始，等等。再說一遍，我們不可能，我的意思是，我仍然每天都在撓頭，不僅是規模，還有我們的能力、要求、信任、曝光量和深度。能夠，我們每天早上都被信任，

I wake up incredibly proud of the team and the work that you do, the demonstrations and the tests that I'm not at the feedback that I get. And you know, it's I have a great story today. I can't be too specific, but I had a payload partner call up and I mentioned a new opportunity with a new branch for their particular payload. And I said that. But what was interesting is the first one has happened is that they wanted that payload, but they wanted to make sure that it was integrated with the Commander because they they want to make sure it's the Commander that is flying out and not to me was just that it was an incredible moment. And I think it's indicative of what's going to continue to unfold so on.

我醒來時對團隊和你們所做的工作、演示和測試感到非常自豪，但我沒有得到回饋。你知道，我今天有一個很棒的故事。我不能太具體，但我接到了一個有效負載合作夥伴的電話，我提到了一個新的機會，為他們的特定有效負載建立了一個新分支。我就是這麼說的。但有趣的是，第一個發生的事情是他們想要那個有效載荷，但他們想確保它與指揮官集成，因為他們想確保飛出的是指揮官，而不是對我來說只是那是一個令人難以置信的時刻。我認為這預示著接下來會發生什麼。

And the third question here is once again, we did a lowball equity raise. Is this finally the last time and gosh, I hope so. I hope so there are we have multiple financing opportunities or options excuse me, in front of us. I wish the markets weren't the way they were. I wish that we were getting the valuations that we were getting when we were the company. We were a number of years ago compared to our capabilities and demand signals right now and having a CAD300 million valuation as opposed to at a CAD15 million or CAD20 million or less valuation right now. And so it's been really painful for all of us and Doug and I I feel for the shareholders, I feel for our management, I feel for our Board, but I'm feeling that painting going through it as much as anybody else the financing opportunities that we do have in front of us, of course, include equity, but they also include more traditional financing as these Tier one customers come on board. So we elected to do a small raise.

第三個問題是，我們進行了低價的股權融資。這終於是最後一次了嗎，天哪，我希望如此。我希望我們有多種融資機會或選擇，對不起，擺在我們面前。我希望市場不是現在這樣。我希望我們能得到我們公司成立時的估值。幾年前，與我們現在的能力和需求訊號相比，我們的估值為 3 億加元，而現在的估值為 1500 萬加元或 2000 萬加元或更少。因此，這對我們所有人以及道格和我來說都是非常痛苦的，我對股東、我對我們的管理層、我對我們的董事會有同樣的感受，但我覺得與其他人一樣，在經歷這一切之後，融資機會也得到了改善。當然，我們面前確實包括股權，但隨著這些一級客戶的加入，它們也包括更傳統的融資。所以我們選擇小額加薪。

Any future raises will continue to do small raises as well until the valuation or if needed. And at that point, the valuation is such that we would do a large raise. But right now, we're really focused on trying to keep the dilution minimal, trying to run things on as close to reasonably to the edge as possible so that we are trying to keep our costs in line relative to the size of the market that we're trying to address and not trying to take in too much money. So and you know, by B by some small business standards, you may look at some of the numbers and go, wow, you're burning a lot of cash, but if you look at our are our competitors out there. In particular, the private competitors who have multibillion dollar valuations aren't doing more revenue.

任何未來的加薪將繼續進行小額加薪，直到估值或需要時。到那時，估值就足以讓我們大幅提高。但現在，我們真正專注於盡量將稀釋程度保持在最低限度，嘗試盡可能接近合理的邊緣運行，以便我們努力使我們的成本與市場規模保持一致。我們正在努力解決這個問題，而不是試圖吸收太多資金。所以你知道，按照一些小型企業的標準，你可能會看到一些數字，然後說，哇，你燒了很多現金，但如果你看看我們的競爭對手。特別是，估值數十億美元的私人競爭對手並沒有獲得更多收入。

In fact, they don't disclose their revenue, but I'm confident they're not doing more revenue than we are not or much more revenue than we are. And they break hundreds and hundreds and hundreds of millions of dollars and lose multiple times per month, but there, but they've got that big opportunity in front of in front of them. And I do believe that they will be very successful. And so I think when you when you compare it on that basis of the size of the opportunity and where we're positioned in that opportunity. I mean, we're in it. We're totally within a reasonable range at this moment.

事實上，他們沒有透露他們的收入，但我相信他們的收入不會比我們多，也不會比我們多得多。他們的損失高達數百億美元，每個月都會多次虧損，但他們面前有一個巨大的機會。我相信他們會非常成功。因此，我認為當你根據機會的大小以及我們在該機會中的定位進行比較時。我的意思是，我們就在其中。目前我們完全處於合理範圍內。

So on there's been nothing mentioned for question. There's been nothing mentioned about Ukraine lately. Is that not the focus anymore?

所以沒有提到任何問題。最近沒有人提到烏克蘭。這已經不是重點了嗎？

No. The Ukraine has been incredibly important to us. It's it continues to be very important to us on. We're more quiet about it than we have been for many important reasons. And but it's but it's a focus and we're big supporters of it, and it's been incredibly at that point in time for us to be able to look at our experience in Ukraine and relate it back to the experience that we're bringing to our products into the client ops of the the domestic militaries that we're working with right now. So Ukraine will continue to be a focus for us and at the appropriate time, you'll hear a lot more about the work that we're doing there. It's just that it's just not appropriate at this time for us to talk of you'll notice overall that our PR has dropped off quite a bit. And that's that's that's just a requirement of where we're at right now with a number of things and the customers that we're working with.

不。烏克蘭對我們來說非常重要。它對我們來說仍然非常重要。由於許多重要原因，我們對此比以往更加沉默。但它是一個焦點，我們是它的大力支持者，在那個時候，我們能夠回顧我們在烏克蘭的經歷，並將其與我們帶來的經驗聯繫起來，這真是令人難以置信。我們的產品已進入我們目前合作的國內軍隊的客戶運作。因此，烏克蘭將繼續成為我們的關注重點，在適當的時候，您會聽到更多有關我們在那裡所做的工作的信息。只是現在不適合我們談論，您會發現我們的 PR 整體下降了很多。這就是我們目前在許多事情以及與我們合作的客戶方面的要求。

So on the fifth question is on our stocks at an all-time low, what's the plan to turn that around sales sales, Tier one customers and on and at the time that we can be a bit more vocal, we will be very vocal and just because we're really proud of the work that our people are doing and the trust that the shareholders have given us. And I think on I've been fortunate enough to be in the game long enough to know when that swing is going to happen and this feels like it's going to be a really, really significant swing. When it happens. We'll be appropriately allowed when we can be at that point and it will be very meaningful and it will have some great numbers to back it up as well. So sixth, I think it's six year, one to July suggest. So has there been any interest from third parties to bias?

因此，第五個問題是關於我們的庫存處於歷史低點，有什麼計劃來扭轉銷售、一級客戶等方面的情況，在我們可以更加直言不諱的時候，我們將非常直言不諱，只是因為我們對員工所做的工作以及股東給予我們的信任感到非常自豪。我認為我很幸運能夠在比賽中待得足夠長，知道這種轉變何時會發生，而且感覺這將是一個非常非常重要的轉變。當它發生時。當我們能夠做到這一點時，我們將得到適當的允許，這將是非常有意義的，並且也會有一些巨大的數字來支持它。所以第六，我認為是六年，建議一到七月。那麼第三方對偏見有興趣嗎？

Yes, I'll just leave it there. That tends to be happening more and more of there's very interesting inquiries coming in now. And yes, at this and we want to build a fantastic company. We think we've got a multibillion-dollar potential here there, certainly the market in front of us for us. We've got a product that's proving out to be worthy of that. We've got a team that's able to integrate with the types of customers that we want to have, and we have facilities and capabilities to scale to that now. So those all become interesting things for people that are potentially looking to acquire us on. But at this point, we're looking to drive shareholder value through the market. So and then the final question that I've got is what is the greatest near-term threat to the Company?

是的，我就把它留在那裡。這種情況往往會越來越多地發生，現在有非常有趣的詢問出現。是的，我們希望建立一家出色的公司。我們認為我們這裡有數十億美元的潛力，當然還有我們面前的市場。我們的產品被證明是值得的。我們擁有一支能夠與我們想要的客戶類型整合的團隊，我們現在擁有可以擴展的設施和能力。因此，對於那些可能想要收購我們的人來說，這些都變得有趣。但目前，我們希望透過市場來推動股東價值。那麼，我的最後一個問題是，公司近期面臨的最大威脅是什麼？

And I think it's balancing where we're at it at this time in the market with having made the strategic decision to focus on on a very few customers and get them over the line with our particular products and the categories that they're in and balancing that with and, you know, managing the cash flows and managing the financing since such between those two. So it's a for us, it becomes a bit of a timing issue or within a quarter or two of that all happening. And coming together, we feel confident with where we're at with the plan. It's been painful for everybody and in particular, our shareholders but and that would be the greatest threat to us where we think we've got it in hand. We've been here before on other projects and but nothing with the upside of what's happening here.

我認為，這是在平衡我們目前在市場上所處的位置，並做出戰略決策，專注於極少數客戶，並讓他們超越我們的特定產品及其所屬類別，平衡兩者之間的關係，以及管理現金流和管理融資。所以這對我們來說是一個時間問題，或者是在所有事情發生的四分之一或兩個時間內。我們齊心協力，對計劃的進展充滿信心。這對每個人，特別是我們的股東來說都是痛苦的，但如果我們認為我們已經掌握了它，那麼這將是對我們最大的威脅。我們以前也曾參與過其他項目，但與這裡發生的事情沒有任何好處。

So I would have said previously, our our biggest threat would have been finding the specific focus that has the scale that we would really want to drive down and we've found that now and now we just kind of got to thread that needle a little bit over this next couple of quarters. So that's the questions that we've had that have come the end. There might have been some others that I'm not entirely aware of, but I don't again be afraid to reach out to myself or to Rowley and we'll certainly do our best to get back to you as soon as possible.

所以我之前說過，我們最大的威脅是找到我們真正想要縮小規模的具體焦點，我們發現現在我們只需稍微穿針引線接下來的幾季。這就是我們最後提出的問題。可能還有其他一些我不完全了解的情況，但我不再害怕與自己或羅利聯繫，我們一定會盡力盡快回覆您。

Again, we deeply appreciate your trust and consideration by the management team is incredibly committed and dedicated in fact, not just the management team, the executive management team, all the people here. We really believe in our mission. We think we we think we've had we've got now incredibly strong indication that we've got the right right product line at the right service line. And on its side, it's just a matter of time, hopefully before you're able to share the enthusiasm that we have internally here. So on that note, I thank you from all of us, and we look forward to speaking with you shortly.

再次，我們深深感謝您的信任和考慮，管理團隊不僅是管理團隊、執行管理團隊，還有這裡的所有人，他們都非常忠誠和奉獻。我們堅信我們的使命。我們認為，我們認為我們現在已經得到了令人難以置信的強烈跡象，表明我們在正確的服務線上擁有正確的產品線。從側面來看，這只是時間問題，希望您能夠分享我們內部的熱情。因此，在此，我感謝我們所有人，我們期待很快與您交談。