6-K
Draganfly Inc. (DPRO)
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 6-K
REPORT OF FOREIGN PRIVATE ISSUER PURSUANT TORULE 13a-16 OR 15d-16
UNDER THE SECURITIES EXCHANGE ACT OF 1934
For the month of August 2021
Commission File Number: 001-40688
DRAGANFLY INC.
(Name of registrant)
2108 St. George Avenue
Saskatoon, Saskatchewan S7M OK7
Canada
(Address of principal executive office)
Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.
| ¨ Form<br> 20-F | x Form<br> 40-F |
|---|
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): ¨
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): ¨
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
| Draganfly Inc. | |||
|---|---|---|---|
| (Registrant) | |||
| Date: August 10, 2021 | By: | /s/ Paul Sun | |
| Name: | Paul Sun | ||
| Title: | Chief Financial Officer |
Form 6-K Exhibit Index
Exhibit 99.1
Draganfly****Commences Training for Texas EMS Drone Delivery Services
Los Angeles, CA. August 4, 2021 -- Draganfly Inc. (NASDAQ: DPRO) (CSE: DPRO) (FSE: 3U8) (“Draganfly” or the “Company”), an award-winning, industry-leading drone solution, and systems developer, is pleased to announce EMS pilot training is underway in Spring Branch, Texas to develop pilot skills for the Company’s EMS drone delivery services.
Draganfly is currently in Phase 1 as part of its ColdChain Delivery Systems contract training EMS drone delivery support personnel, which when rolled out will see operators assisting first responders including firefighters, search and rescue and medical personnel, transporting critical equipment, medical supplies and critical data to active emergency and disaster relief operations. This training builds in the skill sets needed for operators to be able to navigate the challenges these engagements bring.
Pilots will gain hands-on experience of piloting drones in a variety of different scenarios, and learn the techniques required to meet the high standards set by the Company and expected by clients. The intake is made up of professional drone operators, including former US Air Force (USAF) personnel who have previous experience with the likes of the MQ-9 Reaper RPA.
The Company has a strong history of supporting EMS services globally, predominantly in the area of search and rescue, but with advances in our engineering capabilities we can now actively support those on the ground during live deployment.
The pilot programme, which is being run by a team of seasoned UAV professional pilots, has a strong focus on the delivery capabilities of the Draganfly fleet, and during the coaching period operators will familiarise themselves with the equipment, operations and safety protocols.
Commenting ahead of the training programme, Draganfly CEO Cameron Chell said: “At Draganfly, we pride ourselves in providing world class leading services, and having the best pilots has played a major part in that. The demands on UAV technology are evolving constantly, and we have to make sure operators are trained to meet new applications for the hardware. We have former USAF staff among these operators which highlights the calibre of pilot Draganfly, and this program attracts.”
About Draganfly
Draganfly Inc. (NASDAQ: DPRO; CSE: DPRO; OTCQB: DFLYF; FSE: 3U8) is the creator of quality, cutting-edge drone solutions, software and AI systems that revolutionize the way organizations can do business and service their stakeholders. Recognized as being at the forefront of technology for over 22 years, Draganfly is an award-winning, industry-leader serving the public safety, agriculture, industrial inspections, security, mapping, and surveying markets. Draganfly is a company driven by passion, ingenuity, and the need to provide efficient solutions and first-class services to its customers around the world with the goal of saving time, money, and lives.
For more information on Draganfly, please visit us at www.draganfly.com.
For additional investor information visit https://www.thecse.com/en/listings/technology/draganfly-inc, https://www.nasdaq.com/market-activity/stocks/dpro or https://www.boerse-frankfurt.de/aktie/draganfly-inc.
Media Contact
Arian Hopkins
email: media@draganfly.com
Company Contact
Email: info@draganfly.com
Forward-Looking Statements
Cautionary Note Regarding Forward-Looking Statements
Certain statements contained in this news release may constitute “forward-looking statements” within the meaning of applicable securities laws. Such statements, based as they are on the current expectations of management, inherently involve numerous important risks, uncertainties and assumptions, known and unknown. In this news release, such forward-looking statements include, but are not limited to, statements regarding the Phase 1 EMS drone pilot training. Forward-looking statements and information are subject to numerous factors, many of which are beyond Draganfly’s control, including but not limited to, market conditions, the failure of Draganfly to satisfy certain Nasdaq listing requirements and other important factors disclosed previously and from time to time in Draganfly’s filings with the securities regulatory authorities in each of the provinces and territories of Canada and the SEC. Actual future events may differ from the anticipated events expressed in such forward-looking statements. Draganfly believes that expectations represented by forward-looking statements are reasonable, yet there can be no assurance that such expectations will prove to be correct. The reader should not place undue reliance, if any, on any forward-looking statements included in this news release. These forward-looking statements speak only as of the date made, and Draganfly is under no obligation and disavows any intention to update publicly or revise such statements as a result of any new information, future event, circumstances or otherwise, unless required by applicable securities laws.
Exhibit 99.2
Draganfly To Attend AUVSI XPONENTIAL 2021 Event
Los Angeles, CA. August 5, 2021 -- Draganfly Inc. (NASDAQ: DPRO) (CSE: DPRO) (FSE: 3U8) (“Draganfly” or the “Company”), an award-winning, industry-leading drone solutions and systems developer, today announced that it will be attending the AUVSI XPONENTIAL 2021 in Atlanta.
Taking place August 16 -19, 2021, at the Georgia World Congress, the AUVSI XPONENTIAL is the world’s largest trade show for unmanned aerial vehicles, bringing together thousands of commercial and military delegates all with a vested interest in drone technology.
Draganfly will be showcasing its Commander II and Tango2 sUAS platforms, as well as the AeroVironment Quantix Mapper, of which Draganfly is the exclusive partner and reseller. Draganfly will also be showcasing its Drone-Powered Stadium and Event Disinfecting Service which operates in partnership with Varigard – a leader in natural and organic disinfectants. This technology enables the sanitization and disinfecting of stadiums and other large venues by administering a surface spray via Draganfly drones across the entire venue in a fraction of the time required using conventional methods. The Draganfly team will be available to discuss these and other products and services including their artificial intelligence capabilities and contract engineering services at booth #2150. Click to learn more about our presence at AUVSI.
The event is the global stage for all things unmanned — from modeling and simulation, sensors, energy storage and UAS mitigation solutions to what is coming over the horizon in AI/ML, 5G, edge computing and more.
Speaking ahead of this year’s AUVSI Xponential, Draganfly CEO Cameron Chell said: “AUVSI is always an important date in Draganfly’s calendar. It gives us the platform to showcase to the global drone industry our latest technology”.
About Draganfly
Draganfly Inc. (NASDAQ: DPRO; CSE: DPRO; FSE: 3U8) is the creator of quality, cutting-edge drone solutions, software and AI systems that revolutionize the way organizations can do business and service their stakeholders. Recognized as being at the forefront of technology for over 22 years, Draganfly is an award-winning, industry-leader serving the public safety, agriculture, industrial inspections, security, mapping and surveying markets. Draganfly is a company driven by passion, ingenuity, and the need to provide efficient solutions and first-class services to its customers around the world with the goal of saving time, money, and lives.
For more information on Draganfly, please visit us at www.draganfly.com.
For additional investor information visit https://www.thecse.com/en/listings/technology/draganfly-inc, https://www.nasdaq.com/market-activity/stocks/dpro or https://www.boerse-frankfurt.de/aktie/draganfly-inc.
Media Contact
Arian Hopkins
email: media@draganfly.com
Company Contact
Email: info@draganfly.com
Cautionary Note Regarding Forward-Looking Statements
Certain statements contained in this news release may constitute “forward-looking statements” within the meaning of applicable securities laws. Such statements, based as they are on the current expectations of management, inherently involve numerous important risks, uncertainties and assumptions, known and unknown. In this news release, such forward-looking statements include, but are not limited to, statements regarding the Company’s attendance at AUVSI XPONENTIAL 2021. Actual future events may differ from the anticipated events expressed in such forward-looking statements. Draganfly believes that expectations represented by forward-looking statements are reasonable, yet there can be no assurance that such expectations will prove to be correct. The reader should not place undue reliance, if any, on any forward-looking statements included in this news release. These forward-looking statements speak only as of the date made, and Draganfly is under no obligation and disavows any intention to update publicly or revise such statements as a result of any new information, future event, circumstances or otherwise, unless required by applicable securities laws.
No regulatory authority has either approvedor disapproved the contents of this news release. This news release shall not constitute an offer to sell or the solicitationof an offer to buy, nor shall there be any sale of these securities in any province, state or jurisdiction in which such offer,solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of any such province,state or jurisdiction.
Exhibit 99.3
Draganfly To Host Shareholder Update and Earnings Call
Los Angeles, CA. August 6, 2021 -- Draganfly Inc. (NASDAQ: DPRO) (CSE: DPRO) (FSE: 3U8) (“Draganfly” or the “Company”), an award-winning, industry-leading drone solutions and systems developer, announced today that it will host a virtual-only shareholder update call on August 12, 2021 at 2PM MST / 4PM EST.
The shareholder update call will be facilitated by Draganfly CEO, Cameron Chell, who will review the Company’s milestones; and CFO Paul Sun, who will review the Company’s financial results for Q2 2021, which are planned to be filed after market on August 9^th^, 2021. Draganfly President, Scott Larson will be facilitating pre-submitted and live chat questions and answers.
Registration for the call can be done here.
The Company will answer pre-submitted questions at the conclusion of prepared remarks. Investors are asked to submit their questions to investor.relations@draganfly.com.
About Draganfly
Draganfly Inc. (NASDAQ: DPRO; CSE: DPRO; FSE: 3U8) is the creator of quality, cutting-edge drone solutions, software and AI systems that revolutionize the way organizations can do business and service their stakeholders. Recognized as being at the forefront of technology for over 22 years, Draganfly is an award-winning, industry-leader serving the public safety, agriculture, industrial inspections, security, mapping and surveying markets. Draganfly is a company driven by passion, ingenuity, and the need to provide efficient solutions and first-class services to its customers around the world with the goal of saving time, money, and lives.
For more information on Draganfly, please visit us at www.draganfly.com.
For additional investor information, visit https://www.thecse.com/en/listings/technology/draganfly-inc, https://www.nasdaq.com/market-activity/stocks/dpro or https://www.boerse-frankfurt.de/aktie/draganfly-inc.
Media Contact
Arian Hopkins
email: media@draganfly.com
Company Contact
Email: info@draganfly.com
Exhibit 99.4
Draganfly Announces Record Revenue Again in Second Quarter of 2021
Los Angeles, CA., August 9, 2021 -- Draganfly Inc. (NASDAQ: DPRO) (CSE: DPRO) (FSE: 3U8) (“Draganfly” or the “Company”), an award-winning, industry-leading drone solution developer and operator, is pleased to announce its second quarter financial results.
Key Financial and Operational Highlights for Q2 2021:
| ● | Revenue for the second quarter increased 113.9% to $1,981,872 up from $926,540<br>in the second quarter of 2020. The majority of the $1,981,872 in revenue came from product sales with engineering services and<br>drone services revenue almost equally making up the balance of the revenue in the second quarter. |
|---|---|
| ● | Gross profit increased by $297,246 or 68.9% for the second quarter<br>over the same period last year. Gross margin percentage for Q2 2021 was 36.8% compared to 46.6% in Q2 2020. This was attributed to the<br>sales mix of the products and services in the second quarter of this year versus that of the same period last year. |
| --- | --- |
| ● | Total comprehensive loss for the Q2 2021 was $8.1 million compared<br>to $1.0 million in Q2 2020. The large increase is from the accounting treatment of a $46.6 million non-cash liability from USD warrants<br>that were issued during the Company’s Reg A offering. The year over year comprehensive loss increased as Q2 2020 did not have the<br>treatment of the USD warrants from the Company’s Reg A offering. Q2 2020 also had less office and miscellaneous expenses and professional<br>expenses. |
| --- | --- |
| ● | Cash balance on June 30, 2021 of $17.3 million compared to $2.0<br>million on December 31, 2020. |
| --- | --- |
| ● | Integrated Launcher Solutuions finalized their definitive agreement<br>to have Draganfly develop a drone-based non-lethal air support system. Contract provides for the development, prototyping, and eventual<br>production of non-lethal 40mm multi-launching systems that can be mounted and deployed from drones, drone systems, robots, robotic systems,<br>and other stationary platforms or similar systems. The main use case of the launch system is public disturbance management for military<br>and public safety organizations. Draganfly will provide ILS with its development and engineering expertise in connection with the project. |
| --- | --- |
| ● | Draganfly implemented its health security and public safety<br>services for its NASCAR tripleheader weekend at Nashville Superspeedway. |
| --- | --- |
| ● | Coldchain Delivery Systems finalized a US$750,000 definitive<br>agreement with Draganfly to develop, deploy and operate solutions for the delivery of medical supplies, medicine, and vaccines. The definitive<br>agreement provides for phase one of a planned five-phase roll-out for the comprehensive development, deployment, and operation of a medical<br>drone delivery service as well as the development of a solution for the timely delivery of medical supplies, medicine, and vaccines.<br>Phase one has a value of US$125,000, to be executed over a maximum of ten months and the parties have agreed to negotiate an extension<br>to the definitive agreement for phase two prior to the expiry of phase one. Under phase two, Coldchain Delivery Systems will commit to<br>purchasing no less than US$625,000 in equipment and services from Draganfly. |
| --- | --- |
Cameron Chell, CEO of Draganfly, said: “Our strong Q2 revenues reflects the entire team’s on-going focus to drive our product sales and engineering and drone services revenue. We delivered better-than-expected results and maintained positive momentum in the second quarter with strong progress across our portfolio. As we move into the second half of 2021, we will continue working with our customers to meet the demands of the rapidly growing drone space across multiple industries.”
Draganfly will hold a shareholder update and earnings call on August 12, 2021 at 2PM MST / 4PM EST.
Registration for the call can be done here.
| Six months ended June 30, | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| 2020 | 2021 | 2020 | |||||||||
| Total revenues | 1,981,872 | $ | 926,540 | $ | 3,521,608 | $ | 1,423,597 | ||||
| Gross Profit (as a % of revenues) | 36.8 | % | 46.6 | % | 35.3 | % | 61.0 | % | |||
| Net loss | (8,022,220 | )^(1)^ | (968,519 | ) | (52,946,154 | )^(1)^ | (2,072,627 | ) | |||
| Net loss per share () | |||||||||||
| - Basic | (0.06 | ) | (0.01 | ) | (0.44 | ) | (0.03 | ) | |||
| - Diluted | (0.06 | ) | (0.01 | ) | (0.44 | ) | (0.03 | ) | |||
| Comprehensive loss | (8,095,356 | )^(1)^ | (982,232 | ) | (53,010,003 | )^(1)^ | (2,072,526 | ) | |||
| Comprehensive loss per share () | |||||||||||
| - Basic | (0.06 | ) | (0.01 | ) | (0.44 | ) | (0.03 | ) | |||
| - Diluted | (0.06 | ) | (0.01 | ) | (0.44 | ) | (0.03 | ) | |||
| Change in cash and cash equivalents | (3,301,505 | ) | $ | (402,257 | ) | $ | 15,284,189 | $ | (934,046 | ) |
All values are in US Dollars.
| As at | June 30,<br> <br>2021 | December 31,<br><br> 2020 | |||
|---|---|---|---|---|---|
| Total assets | $ | 42,424,721 | $ | 7,100,567 | |
| Working capital (deficit) | (27,200,553 | )^(2)^ | 1,214,371 | ||
| Total non-current liabilities | 277,583 | 104,885 | |||
| Shareholders’ equity | $ | (6,433,224 | ) | $ | 3,848,205 |
| Number of shares outstanding | 135,166,934 | 72,781,413 |
Notes:
| (1) | The net loss and comprehensive loss for the three and six months ended June 30,<br>2021 include a change in fair value of derivative liability for USD warrants relating to the Company’s Regulation A offering of<br>$4,821,177 and $45,840,349, respectively, and would otherwise be $3,201,043 and $3,274,179, respectively, and $7,105,805 and $7,169,654,<br>respectively. | ||||||||
|---|---|---|---|---|---|---|---|---|---|
| (2) | Shareholders’ equity and working capital deficit as at June 30, 2021 includes<br>a fair value of derivative liability for USD warrants of $46,588,983 and would otherwise be shareholders’ equity of $40,155,759<br>and working capital of $19,388,430. | ||||||||
| --- | --- | ||||||||
| 2021 Q2 | 2021 Q1 | 2020 Q2 | |||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Revenue | $ | 1,981,872 | $ | 1,539,736 | $ | 926,540 | |||
| Cost of goods sold | $ | (1,253,279 | ) | $ | (1,024,729 | ) | $ | (495,193 | ) |
| Gross profit | $ | 728,593 | $ | 515,007 | $ | 431,347 | |||
| Gross margin – percentage | 36.8 | % | 33.4 | % | 46.6 | % | |||
| Operating expenses | $ | (3,340,952 | ) | $ | (4,839,600 | ) | $ | (2,387,738 | ) |
| Operating loss | $ | (2,612,359 | ) | $ | (4,324,593 | ) | $ | (1,956,391 | ) |
| Operating loss per share (basic and diluted) | $ | (0.02 | ) | $ | (0.05 | ) | $ | (0.03 | ) |
| Other income (expense) | $ | (5,409,861 | )^(3)^ | $ | (40,599,341 | )^(3)^ | $ | 987,872 | |
| Other comprehensive income | $ | 9,684 | $ | 9,287 | $ | (13,713 | ) | ||
| Comprehensive loss | $ | (8,095,356 | ) | $ | (44,914,647 | ) | $ | (982,232 | ) |
| Comprehensive loss per share (basic and diluted) | $ | (0.06 | ) | $ | (0.48 | ) | $ | (0.01 | ) |
Note:
| (3) | The other expense and comprehensive loss for the second quarter and first quarter<br>of 2021 include a change in fair value of derivative liability for USD warrants of $4,821,177 and $41,019,172, respectively and would<br>otherwise be a loss of $588,684 and income of $419,831, respectively. |
|---|
All financial information in this press release is prepared in accordance with International Financial Reporting Standards as issued by the International Accounting Standards Board. The Company will file its consolidated financial statements for the quarter ended June 30, 2021, and associated management discussion and analysis under the Company's profile on SEDAR at www.sedar.com.
Note: this press release refers to "gross margin" which does not have any standardized meaning prescribed by generally accepted accounting principles in Canada ("GAAP"). Gross margin is defined as gross profit divided by revenue and is often presented as a percent. Draganfly’s management believes that gross margin and other non-GAAP measures provide useful information to investors as it provides them with supplemental measures of the Company's operating performance and liquidity and thus highlights trends in the Company's business that may not otherwise be apparent when relying solely on GAAP measures. Management also uses non-GAAP measures and metrics in order to facilitate operating performance comparisons from period to period, to prepare annual operating budgets and forecasts and to determine components of executive compensation. For more information with respect to financial measures which have not been defined by GAAP, including reconciliations to the closest comparable GAAP measure, see the "Non-GAAP Measures and Additional GAAP Measures" section of the Company’s most recent MD&A which is available on SEDAR.
About Draganfly
Draganfly Inc. (NASDAQ: DPRO; CSE: DPRO; FSE: 3U8) is the creator of quality, cutting-edge software, and systems that revolutionize the way organizations can do business and service their stakeholders. Recognized as being at the forefront of technology for over 22 years, Draganfly is an award-winning, industry-leading manufacturer and technology developer serving the public safety, agriculture, industrial inspections, security, and mapping and surveying markets. Draganfly is a company driven by passion, ingenuity, and the need to provide efficient solutions and first-class services to its customers around the world with the goal of saving time, money, and lives.
For more information on Draganfly, please visit us at www.draganfly.com.
For additional investor information, visit https://www.thecse.com/en/listings/technology/draganfly-inc, https://www.nasdaq.com/market-activity/stocks/dpro or https://www.boerse-frankfurt.de/aktie/draganfly-inc.
Media Contact
Arian Hopkins
Email: media@draganfly.com
Company Contact
Cameron Chell, CEO
PH: 310-658-4413
Email: info@draganfly.com
Forward-Looking Statements
This release contains certain “forward looking statements” and certain “forward-looking information” as defined under applicable Canadian securities laws. Forward-looking statements and information can generally be identified by the use of forward-looking terminology such as “may”, “will”, “expect”, “intend”, “estimate”, “anticipate”, “believe”, “continue”, “plans” or similar terminology. Forward-looking statements and information are based on forecasts of future results, estimates of amounts not yet determinable and assumptions that, while believed by management to be reasonable, are inherently subject to significant business, economic and competitive uncertainties and contingencies. Forward-looking statements and information are subject to various known and unknown risks and uncertainties, many of which are beyond the ability of the Company to control or predict, that may cause the Company’s actual results, performance or achievements to be materially different from those expressed or implied thereby, and are developed based on assumptions about such risks, uncertainties and other factors set out here in, including but not limited to: the potential impact of epidemics, pandemics or other public health crises, including the current outbreak of the novel coronavirus known as COVID-19 on the Company’s business, operations and financial condition, the successful integration of technology, the inherent risks involved in the general securities markets; uncertainties relating to the availability and costs of financing needed in the future; the inherent uncertainty of cost estimates and the potential for unexpected costs and expenses, currency fluctuations; regulatory restrictions, liability, competition, loss of key employees and other related risks and uncertainties disclosed under the heading “Risk Factors“ in the Company’s most recent filings filed with securities regulators in Canada on the SEDAR website at www.sedar.com. The Company undertakes no obligation to update forward-looking information except as required by applicable law. Such forward-looking information represents managements’ best judgment based on information currently available. No forward-looking statement can be guaranteed and actual future results may vary materially. Accordingly, readers are advised not to place undue reliance on forward-looking statements or information.