Welcome everybody to our call today. Just going to give it a minute here while people start to file in, and then we'll get started.

All right, then. Just to make sure we keep on schedule, I think we will get started with today's call.

As always, greetings and welcome to everybody, to the shareholders and stakeholders, to today's Draganfly 2025 Q4 and full-year earnings call. My name is Rolly Bustos, and I am the internal investor relations representative here at Draganfly.

We appreciate you all joining us today. We will start as usual with our CEO and President, Cameron Chell, recapping the fourth-quarter and full-year earnings highlights.

Next will be a more detailed financial review with our CFO, Paul Sun. We will then conclude by addressing the pre-submitted questions that we have received.

Though I know I talk to many of you often, as always you are welcome to reach out to me with questions directly at [email protected]. I remind everyone that this presentation may include forward-looking information and statements.

These statements are not guarantees of future performance or financial results, and undue reliance should not be placed on them. Any future event or financial results may differ from what might be discussed here.

The company's results and statements are accurate as of today, March the 24th, 2026. We are under no obligation to update or renew these statements outside material press release disclosure going forward.

The full forward-looking disclaimer can be found on page two of this presentation. Cam, if you're ready, please go ahead.

Great. Thanks, Rolly.

Appreciate that. Thank you, everybody, for taking the time and your consideration to be here.

We appreciate you as shareholders of the company, enthusiasts, and maybe even some fans, and certainly if there are any of our team members, employees, or customers here, we deeply appreciate you. First and foremost, we want to just throw out all our blessings and prayers to all of those who are fighting for our freedom today, and those who are in service and away from their families.

We wish them godspeed. Q4 and year-end highlights for 2025.

So, 2025 was a really solid year for us in terms of, in particular, building on top of our infrastructure and preparation for I'll call it the predetermined revenue ramp that we will be experiencing throughout this year and certainly into '26. We did have record revenues in '25.

We were up 17.8% and closed off the year with $7.7 million. We had gross profit of $1.3 million on that, which we're pretty pleased with given all the R&D and all the additional work that we've been doing into our systems and trying to do our best to overservice our customers.

We ended the year with a cash balance of about $90 million. Strong strong balance sheet for us to continue to build on as we move in to '26 and '27.

A few of the operational highlights for us this year, and there were many, but in particular, Draganfly unveiled a new product line or a new product within our product line called the Outrider. This was particularly built for the southern border multi-mission agenda or concept of operations.

The southern border sheriffs have a very very unique situation in terms of securing the border. Now, a lot of the border flow in terms of just the mass migration coming through has been stemmed.

However, the human trafficking, the firearms, the drugs has actually become more intense. The southern border commitment that our sheriffs have down there is actually even more imperative now than it was before.

From a special operations command, we were referred into the southern border sheriffs and in particular to Cochise County. Now, Cochise County is renowned as a southern border sheriff county.

They secure much of the entire Arizona border and the New Mexico border with covert cameras. An incredibly built from the ground up AI system and covert camera system that they built themselves.

Now, when they get a hit on these cameras, the challenge is they've got up to 2 hours to get to that location. Their AI system is really effective on identifying if it's human trafficking, if it's drugs.

They can even have a sense of what cartel it's coming from or if it's firearms or a combination of any of those. Then they've got to deploy resources into that area.

They've been experimenting for a couple of years with drones to be able to get to that area long before personnel can get to that area, whether that's by RZR, ATV, horse, or four-wheel drive. Often it takes up to a couple hours to get there.

By the time you get there, your situational awareness and the actual theater that you're operating in has changed dramatically. They wanted to get drones to that location.

However, the majority of drones that were available to them, especially in particular the multirotor drones, really only had 30 to 40 minutes of flight time, which is enough to kind of get you there maybe, doesn't leave any dwell time, and certainly doesn't give you enough time to get back. Also, the smaller drones really don't give you the ability to interdict, and really only provide ISR, intelligence, surveillance, and reconnaissance, which is still hugely valuable.

The concept of operations that they challenged us with was how do we have a drone system that can get as a responder there quickly? How can it stay on task for a long enough time?

How can it do multi-mission? Multi-mission might be not just doing ISR, but can it interdict, actually hold people in place?

Can it act as a communication hub? That particular area is famous for very challenging communications, dead spots, wild temperature swings, very large differentials in altitude, thin air, et cetera, et cetera.

You're starting at about 2,000 feet above sea level, and then you're going up from there. Your performance on your motors is quite a bit different.

There's a lot of variable factors in there. We spent actually a couple months working with them, embedding what we call our ITS team, our Integrated Tactical Solutions team.

They spent time on horseback, in RZRs, understanding the use cases, the concepts of operation, and then we went to work with the sheriffs designing a drone platform that would enable them to be able to execute on all the missions, which isn't just interdiction and law enforcement, it's often search and rescue or personnel support. What we designed with them was a drone system that could do everything a fixed-wing drone could do, meaning it could stay up for multiple hours, and it could do everything the multirotor could do, which means it could actually carry things into place.

Because a fixed-wing drone doesn't really have a lot of payload capacity, also takes up a lot more room to operate, and generally can't work in as adverse weather conditions which are quite variant in that particular area. What we designed for them was the Outrider drone.

Now, this is a drone that can stay aloft for 7 hours, and it can carry up to 100 pounds. It can be a communication hub, can be an interdiction device, can be a search and rescue device, it can be a resupply device, and certainly can act as a very sophisticated ISR device.

They've got the best of all worlds when they did this. Now, the reason that we were able to deploy this very quickly is because Draganfly is one of only a very few companies, maybe arguably two, that have an entire product line-up.

Everything from small FPV attributable, one-way drones, suicide drones as sometimes called, that can be as small as 5 inches, right up to something as big as the Outrider, which is 9 feet across. We took our heavy-lift drone, which was an all-electric drone, and we actually built on top of that platform two diesel engines, a number of other modifications that gave it the capability to stay up for that amount of time and have that payload capacity.

It also is interoperable with all the rest of our drone platforms. When the sheriffs are training on one platform, they have the capability to actually fly the other platforms as well.

Often you don't need a 9-foot drone that can carry 100 pounds if you've got a AI camera hit something that's closer, or if you've got a unit that just happens to be on the seat beside you in the truck, you just want to grab it, throw it, and get eyes on the situation. You might only need 40 minutes of flight time in that case.

All of these things are connected, they all provide multiple views to multiple different command centers. It might be search and rescue, it might be the sheriffs, it might be the local PD, and whoever the case may be.

It might be border management or border control, and they've all got eyes on this as well. This particular project has been extremely successful for us.

We're really really proud of the work that we did there, and we're very very grateful to the sheriffs for trusting us and doing this work with us. Now, the nice thing that's come out of this is we now have a border solution.

We have a very unique solution that's just not piece of equipment that's integrated into law enforcement, but it's also a piece of equipment that was designed with the concept of operations in mind. We've got the experience working with the sheriffs in order to understand what are those operational requirements.

That is expertise that we're now able to take into several border opportunities in multiple countries, multiple jurisdictions around the world, and it's really become an area of expertise for us. The next thing that I wanted to mention is that we continue to resource up the company.

We were very very fortunate to bring on Victor Myers and Keith Kimmel. Victor's a former Navy SEAL.

Keith is a former TOPGUN, both with incredible careers, highly educated, also very strong capital markets and sales backgrounds. They are leading our military board of advisors, which effectively is they're leading our sales efforts within the military right now.

What we have seen is them bringing an incredible amount of expertise. Again, not that they didn't have great drone expertise, but what they really had was operational expertise and contacts that trusted them.

We're learning so much from them and the organization that they're building within Draganfly that allows us to deliver solutions as opposed to just hardware or software. A really hot topic is, many of over the last maybe week or two, has been swarming.

Now, swarming is a really important part of the drone ecosystem. In particular, it's had some attention over the last couple of weeks.

We've been doing swarming work, in fact, we've been building FPVs within our company for over 15 years. An important story that a lot of people don't really know is that it was the US Marines that developed FPVs, and they introduced them into Ukraine in 2022.

Of course, the Ukrainians have taken it to an entire new level. It was the US Marines that designed FPVs into battle plans.

In fact, two of the folks that did all that original training work and much of the initial design work are now part of Draganfly. The swarming has always been an important component of what's going on.

We're very fortunate to partner with multiple different swarming technologies, but in particular, we're really excited about what Paladin is doing. They've got a very sophisticated swarming system.

They've won some recent contracts, which we also made some more recent announcements with just in the last week, talking about who we're servicing with those contracts, their military contracts, and how those are being integrated into the Draganfly line. Now, our view of swarming and some AI software is we view it very much like a payload.

One of the things about the Draganfly line is that it has dozens and dozens of integrations. Often what happens is a customer shows up and they're like, "Hey, we need this particular surveillance camera," or "We need this particular AI system for whatever concept of operations that they're working on."

What works really well with the Draganfly system is that as we have all these different integrations, we have a platform that's multi-mission that can service that particular customer with their exact requirement. Paladin's a very important part of that.

We're really enthusiastic about the software and the work that they do and the contracts that they're winning and that we are winning together. We did showcase the advanced drone system at AUSA.

That was a really big show for us. We did have a large Ukrainian contingent of military folks come over, participate, speak, workshop, and we had a number of dignitaries from the DOW there as well.

We performed a meaningful strategic planning session there, and we've seen a tremendous amount of things unfold since that show. Draganfly announced a strategic partnership with Defense Prime Global Ordnance.

Now, Global Ordnance is one of the largest DLA defense primes out there. Now, they're really well known for their ordnance work.

They provide about 80% plus of the ordnance into Ukraine. They have an incredibly strong push into drones.

They understand that in many many cases the drone is the ordnance, not just in small FPV, but in larger formats, in swarming formats, in fixed-wing formats. I believe that they are going to be one of the dominant DLAs in the drone space.

We have a very strong partnership with them. We're integrating deeply with them and are working hard to ensure that collectively that they are a DLA featuring Draganfly product, capabilities, Draganfly technology into their ecosystem as one of, if not, the largest ordnance provider in the market today.

We also deployed with Autonomy a landmine clearing mechanism. They have a carpet that lays out, and then has a number of explosives on it, and very very quickly clears landmines and creates a path or a road.

We integrated with them on our heavy-lift drone where the heavy-lift drone actually takes the carpet, lays it down, rolls it out, right, backs off, carpet explodes, takes out all the landmines, and then we lay the next one on top of it, and so on and so forth, and then it collects all the actual Autonomy landmine carpets. We've had some great great success with it.

They're getting some significant traction in many areas of the world, and that's an exclusive integration that they did with the heavy lift. Look, one of the differentiators that Draganfly has, because of our 27 years of experience, we really focus on those integrations.

Again, whether it's camera systems, whether it's radio systems, whether it's having partners like Autonomy Labs or Paladin work with them, they're all looking for ways to deploy their technology. I would say that we are certainly really strong in our ability to integrate those technologies so that the Draganfly product line has as many options as possible.

In addition, those partners of ours become a channel reseller for the Draganfly line. You'll continue to see from us lots of integrations, primarily in the public safety and in the military space, but also in the commercial space.

We have multiple energy projects on the go right now where we're integrating very very specialized either sensors or tools in the energy space on that Draganfly line. Again, the reason that we typically are winning those types of integrations is because we've got a product line-up that, one, can carry those types of tools, that it's big enough drones, it's not all just these small ISR drones, but there's also multiple sizes of them.

Sometimes you need two types of tools, but you don't need a 9-foot drone carrying a smaller tool, you might need our Commander 3XL, which can carry 22 pounds, to go up and do some of the tooling for the equipment that's on a power line, or a windmill, or on a pipeline. To that measure, we had a Fortune 50 company, which happened to be a telecom company, purchase our heavy-lift drones, in fact, standardize on our heavy-lift drones, in particular for standing up cell towers post-disaster.

This particular company, which is a household name, is now standardized on Draganfly. We're deploying drones with them on our heavy lift and on our Outrider, both tethered and untethered, in order to stand up cell phone towers, and now there's multiple other applications that they're looking at doing as well.

Once we got the initial orders from the southern border sheriffs, we actually launched a significant demonstration for multiple agencies down on the Cochise border. We demonstrated the concept of operations.

We actually demonstrated three or four different concepts of operations, and it was that particular event that's now led to multiple jurisdictions, both national and international, that are looking at and/or engaging with the Outrider drone as their border protection standard. Again, it's a brand-new greenfield opportunity that we created with our partners because we're willing to take the time and we're really strong at being able to go out and do that integration-type work, but first of all understanding what the customer is looking for.

We have secured a number of military orders as well from the Department of War. This strategic international military order for Commander 3XL would commensurate with that as well.

We're seeing uptake not just from the DOW, and also from the DND or the Canadian Armed Forces, CAF, but multiple military forces around the world. They look to, in particular, as you would expect, what is the US doing?

What is the US adopting? The credibility that we've been very fortunate enough to build within highly specialized special operations units, which you've seen by some of our press releases in this last quarter, are really lending to our credibility to be able to sell internationally as well, which has actually been a really pleasant surprise for us.

To that note, we do have some significant partnerships in the Asia-Pacific region. As we look at the different areas in the world where drone adoption is either in place or where the next places that they are really going to be adopted quickly, we have been pulled into many opportunities in Asia and Southeast Asia, probably with countries that you would expect, but also many other adjacent countries who are looking at the asymmetric situation in terms of combat theater of warfare, and understanding quickly that they've got to try to catch up with this curve that's happening of every military in the world right now is rearming, and they're rearming with asymmetric capabilities in mind.

Asymmetric in terms of cost to build, cost to deploy, and maximum effect for dollar spent. Not only that, but the actual strategy and tactics that these new asymmetric tools en masse are bringing to the table are actually providing them with an advantage.

Now, just because everybody else is doing it, it's kind of like everybody else has to be doing it as well. Which I'll talk a little bit about in a minute as we talked about the Middle East.

We also did receive another meaningful, very significant order win for us FPV drones from the US Army. We'll continue to see many of these from individual units and brigades and special operations commands as they get more and more exposure to the Draganfly product, the Draganfly team, and the work that we get to do with them in order to purpose-build en masse equipment that is very specific for their needs.

Then, of course, a subsequent event that happened which we're very grateful for is we closed a $50 million registered direct offering, which was a no-warrant straight common deal. Just for a super-quick review, our product line-up does not have the Outrider on here.

Just haven't updated the deck, my apologies, but it goes everything from the FLEX FPV, which is a very very unique FPV that was designed in Ukraine from our experience over there. We've been boots on the ground since 2022 in Ukraine, and this particular drone is winning a ton of business with folks that get time on the stick because they understand the different capabilities that it has as opposed to just a typical drone.

It does work extremely well as an ISR drone as well. It's got multiple capabilities in terms of you can change the blade and arm sizes on it.

This particular drone can carry anything from 1 pound up to 6 kilograms anywhere from 1 kilometer up to 10 kilometers, and of course you put fiber on it we could go further. The APX drone is a drone that would be a replacement for any drone nerds out there of the M30 drone.

The M30 is the DJI drone that's the second-best seller that they've got, or the M30 or the M350 series. The Mavic, the small ISRs, their best one, and you will see an announcement from us on that very shortly.

That is public news, I'm not telling anybody that that isn't out there already. We're not displaying it here yet, there will be a product announcement on that coming, which we're really excited about.

This particular drone here can carry 6 kilograms, can fly for about 40 minutes, can carry multiple payloads, and again, fits into that multi-mission mode. What we learned from 27 years of experience is it's great to have a single-purpose drone, which could potentially be something like the FLEX, but even that does ISR, or something like a DJI Mavic, or, some of the other great ones out there like the Teal or the X10.

Again, even with the one that we have coming out, it does multi-mission. The more experience that drone teams get with these, the more that they want to have them be able to do more than just one thing.

It's extra weight they're carrying, it's extra things they have to worry about, it's cognitive load, and so they want to have one platform. Typically, the more experience they get, they can do more than one thing.

The Commander 3XL is a 22-pound drone. It can carry about 22 pounds.

Actually, it can do a bunch more than that, but we keep it under the 55 pound weight limit so that it's easier to qualify on a 107 license. This is a drone that's the workhorse of the unit.

There's really not much it can't do in terms of missions. It's great for dropping FPVs from it, it's great for dropping ordnance, it's fantastic for doing logistics, it's just a big flying battery, it's got terrific sensor capability, unbelievable ISR capabilities, and we're just seeing a ton of success with it.

The heavy-lift drone, this is a 9-foot drone, flies for about 40 minutes, can carry 67 pounds. It's variant with two diesel engines on it.

Actually, the Commander 3XL can come with a diesel engine variant as well, it can stay aloft for up to 3 hours. The heavy-lift drone with a diesel engine variant on it can stay up for 7 hours and carry up to 100 pounds.

Some really great capabilities. When a particular unit, whether it's public safety or whether it's military, looks at the drone line-up, they come to realize, "Hey, wait a minute, we can solve all of our concepts of operations that we need, and we can come up with other ones as well because we've got variability in what we do."

Now, why this is really unique is that it takes a couple of years at least to actually field a new drone system. While some other fantastic companies out there have been able to field a great small ISR drone and they've stayed focused in that area for the most part, for them to build an entire line-up of drones, regardless of the amount of money that you've got, it just takes time.

Because we've been around for 27 years, that's why we've got the full line-up. This is nothing new that anybody hasn't heard before, but certainly there's been some events recently that have probably significantly grown the global market.

The amount of inbounds, and I'm sure you've heard this from other drone companies as well, the amount of inbounds that are now coming in from the Middle Eastern area because of obviously the unfortunate war in the region is enormous. What's really unique about this is that each of these jurisdictions over there, they want their own capabilities.

Much like the allied forces, the US in particular, has taken a posture of we need to manage our own supply chain, we can't be at risk from global supply chains, we have to have our own technology, all these other jurisdictions are adopting that same posture. Now, previously, for most defensive type of equipment, most jurisdictions cannot adopt that posture because they can't afford to build it themselves.

They can't afford to research it, they can't afford to test it, they can't afford to build the expensive facilities required for these very elegant precision weapons or equipment out there. What we've done now is we've entered into a realm of mass precision, and that mass can be built very inexpensively.

You've got all of these jurisdictions out there now saying, "Well, we want to build them ourselves so that we can afford ourselves that same protection through the supply chain, but also maybe have our own unique capabilities as well, which might be regionalized or might be nationalized for their own particular reasons." For that, I think what you've seen is, in particular, the North American drone companies had seen a swell of demand from that region over there in terms of, "Hey, how can you bring not just your device technology to the table, but your manufacturing technology, your experience in the field, et cetera, et cetera?"

Again, this drone market continues to shock me in terms of how big it is, and every time it gets a little bit bigger, It's like the internet. Once you've got one use for it, then you realize there's two or three other uses.

The more it propagates, the less expensive it gets for other people to propagate. We're in a 10-year supercycle around drones, which is, in my opinion, a subset of autonomy, and it's really being driven by policy by every national government and every military in the world right now.

Unprecedented. At this point, what I'd like to do is I'd like to turn it over to our CFO, Paul Sun, to run through our financial highlights.

Paul?

Sounds good. Thanks, Cam, and thanks, everyone, for joining the call.

Appreciate it. Just looking at this brief income statement here, I'll take you through year-over-year changes.

As Cam mentioned at the outset, revenue for the year was up 17.8% from 2024. Full-year revenue comprised of the $6.86 million from product sales, with $861,000 coming from drone services.

Gross profit was $1.32 million for the year compared to $1.39 million from last year. This year's gross profit included a one-time non-cash writedown of inventory of $259,000, while last year's gross profit included a non-cash adjustment of $627,000 related to inventory.

Exing out these adjustments, gross profit decreased by $444,000 year-over-year. As a percentage of sales, adjusted gross margin decreased from the 30.9% in 2024 to 20.4% this year, and sales mix was the main driver here.

Total comprehensive loss for the year including all non-cash items was $22.9 million compared to a loss of $14.06 million last year. The comprehensive loss for the year ended December 31, '25 included non-cash changes comprised of a loss in fair value of derivative liability of $2.64 million.

As a quick reminder, that's legacy back to a financing we did that is in a different currency than our reporting currency, we have to report it as a liability. Now, we had a recovery of an impairment of notes receivable of $69,000, and that writedown of inventory of $259,000.

Otherwise would have had a comprehensive loss of $20.1 million versus last year's $15.3 million excluding that year's non-cash items. The largest contributor to the year-over-year change was an increase in office and miscellaneous, wages, and travel as we scale up the business.

Following that, adjusted comprehensive loss per share this year would be $1.28 versus the $1.46 that you see here, compared to the adjusted loss per share of $4.85 versus $4.45 last year, respectively, again, as shown here. Cam, if we could just move to the next slide, please.

I'll do a quick snapshot of Q4 '25 doing a year-over-year comparison to Q4 of last year. Here revenue for the fourth quarter was up 18.5% to the $1.91 million, up from the $1.61 million in the fourth quarter of '24.

Fourth-quarter revenue comprised of $1.8 million from product sales, with $108,000 coming from drone services. Gross profit was $85.7 thousand compared to $215.7 thousand in Q4 of last year.

In Q4 this year had a one-time non-cash writedown of inventory of $244,000, and otherwise would have been a gross profit of $329.7 thousand compared to a same period last year where there's a one-time inventory writedown of $167,000, making the adjusted gross profit there $383.2 thousand. Adjusted gross margin for Q4 was 17.2% compared to last year's 23.7%.

This was a result of products and services mix comparing the two quarters. Total comprehensive loss for the quarter, $9.3 million compared to a loss of $4.7 million in the same period last year.

This quarter includes non-cash changes comprised of a fair value of derivative liability for the quarter of $788,000 and a one-time inventory writedown of $244,000, and would otherwise be a comprehensive loss for the quarter of $8.3 million versus an adjusted loss of $3.6 million in the same quarter for last year. The increase in loss primarily due to the higher office and miscellaneous costs and wages.

We'll stay on this page, and we'll this time do, since we just did a year-over-year comparison for Q4, we'll now do a quarter-over-quarter look at Q4 this year versus Q3 of this year. Revenue for Q4 decreased 11.3% to $1.9 million compared to $2.15 for Q3 of this year, mainly due to lower product sales.

Gross margin for Q4 was 4.5% compared to 19.5% in Q3. However, if we back out that one-time inventory writedown that we mentioned earlier, gross margin again for Q4 this year, 17.2% compared to 21.5%, adjusting for non-cash items in the previous quarter.

Total comprehensive loss Q4 again $9.3 million compared to a comprehensive loss of $5.43 million in Q3 of '25. Again, please recall we had that fair value of derivative of $788, the writedown of inventory, Q4 '25 comprehensive loss would have been the $8.3 million versus a loss of $3.54 million excluding non-cash adjustments in Q3 of '25.

Again, increase in loss is primarily due to higher office miscellaneous costs and wage costs as we continue to scale the business. I think last slide here, Cam, is going to be a quick shot of some items on the balance sheet.

Great. You can see total assets here increased from $10.2 million to $101.3 million year-over-year, which is largely due to the increase in cash.

Working capital surplus at December 31, '25 is $95.2 million versus $3.8 million from 2024. Quite strong.

However, working capital would have been a surplus of $95.7 and shareholders' equity would have been $97.18 versus the $96.5 million shown here, if we exed out the non-cash fair value of derivative liability of $492,000. Last year's adjusted working capital would have been $6.04 million and shareholders' equity would have been $6.81 million.

Again, up strong year-over-year. You can see we continue to have minimal debt.

As Cam mentioned at the outset, cash at the end of the year was $90.1 million compared to $6.2 million at the end of last year, '24. Of course, our current cash balance is higher even still following the US $50 million raise that Cam spoke about earlier.

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

Great. Thanks, Paul.

Great job, as always. What I'm going to do is I'm going to go next into a bunch of questions.

I'll stop sharing there if that's okay with you guys. Let me jump into a bunch of questions that have come in.

The first question that came in is, "You've had a lot of meetings with the government and military of Canada. Do you see meaningful contracts coming from that?"

We're sure hopeful. The Canadian Defence Industrial Strategy is a paramount and monumental document put out by the Canadian government that outlines the Defence Industrial Strategy and the 78, I believe, maybe it's even higher than that, billion-dollar spend over the next 5 years that the Canadian government is doing as it relates to defence.

A very large portion of that is scheduled to go into drones, in particular into class 1 and class 2 drones. There's two manufacturers of drones in Canada in that category, and neither of our product lines cross over with each other.

We have been very very active with the Canadian government over the last year, and in fact 2 weeks ago we completed an exclusive Draganfly-only capabilities day organized by the Canadian or helped to be organized by the Canadian Armed Forces, which demonstrated the five vignettes, or concepts of operation, that they plan to put into immediate use, immediate being over the course of the next 18 months, using category 1 and category 2 drones. Within 2 weeks of that announcement, we were able to display successfully all five of those vignettes, or concepts of operation, I would say flawlessly, and in an ice storm.

There was four concepts of operation that we planned on displaying. The fifth was an Arctic one, which we did not plan on displaying, but weather wasn't our friend that day, or maybe actually it was our friend, because we did move ahead with the capabilities day regardless of the ice storm, and it went off very well.

There's a lot of activity happening there. I'm meeting with government at all levels, including Senate hearings, and I think we're well positioned up there.

We'll continue to pragmatically move forward with the Canadian government. We are going to have to earn the business.

Just because we're Canadian doesn't mean anybody gets it automatically, but it sure is a big advantage, and certainly I think we have the capabilities and we're building that trust. The other question is, "Why do we think we didn't make it past Gauntlet 1 in drone dominance, and do you think we'll reapply for Gauntlet 2?"

Gauntlet 1 was an incredible experience for us. We actually didn't get notice that we were in Gauntlet 1 until 36 hours before, where most other companies had a couple of weeks to prepare for it.

We did show up, we did perform quite well. There was one mission set that did involve live ordnance that because of the time frame we couldn't perform.

We think that's primarily the reason why we just didn't score on those particular points. We did score well on the other two categories, and we think primarily that's why we didn't.

We did learn a lot. There's some definitely some things we could have done better.

We're very aggressive about Gauntlet 2. We've seen the other capabilities out there.

They're great companies, there's fantastic industrial capacity that's being built in the United States because of this incredible, unique, and brilliant format that they've put together. We can more than compete with anybody there, and you'll see us in Gauntlet 2, and we expect to be doing very very well in it.

So, "Canada says they're really focusing on drones. Do you think that Draganfly is in a good position there?"

I think I addressed that already, I'll just move on. The answer is yeah, I think we're in a really good position there, but we're not taking anything for granted, and we'll continue to understand that we've got to earn that business, and it's a very discerning customer.

"So there seems to be a lot more drone companies now than before. What are our competitive advantages to them?"

For sure, there's a lot more drone companies, and a lot more drone companies are going to figure out that it takes a lot more than ordering parts off Amazon and putting a toy up in the air to actually be able to service a public safety, commercial, or a military client. We're fielding aircrafts here, highly regulated, incredible demands in terms of the expectation and the performance requirements to actually be a commercial, public safety, or military unit or a military device.

As mentioned earlier in the presentation, it takes up to 2 years to actually put a real commercial, military, or public safety unit up in the air. I kind of feel is like snowboarding.

You can get really good the first day, but then you're going to spend 2 years being able to actually become a decent snowboarder, if you will. I think and there's lots of great innovation out there.

I do think that the more successful startups are probably likely the acquisition targets for some of the more established public players out there. Our primary competitive advantage is the amount of time that we've been doing this and that we have a full product line-up that is completely integrated.

I would hazard to say that there's really only two companies in the world that have that, and that would be DJI and the other would be Draganfly. We've been working on other product lines that come in and fill out that product line even more that you'll see come out this year.

When we come out with a product line, it's gone through the testing, it's been in customers' hands, and it's designed specifically for concepts of operations and missions that we were asked to build for. Because of that long-standing reputation, that capability, our infrastructure is built out.

The other thing a lot of these newer startups are going to find out that it doesn't matter if you have the greatest whiz-bang, if you can't build 10,000 of them in a month, or 100,000 of them, or have like some ridiculous demands that you can scale on, and scaling a drone is a whole bunch different than building 10 that work really well. You build 10,000 that work really well and have to have all the variants for the changes in potential operations, that in itself is an entire manufacturing process, an entire workflow that goes so far beyond the understanding of how to put one or two or 10 elegant machines together at a low cost.

I think access to capital right now seems quite liberal. However, that is not going to be the case necessarily going forward as more and more winners are picked and customers become more and more discerning around knowing that they need to get a device and a company that they can rely on.

I think we have a lot of competitive advantages. It doesn't mean that there's not going to be great competitors out there.

I've been watching these cycles for 25 years. Up until 7 years ago, every North American drone company has gone out of business except for Draganfly.

More competition doesn't scare us. I think all boats rise right now, and the more innovation, the better.

The fact of the matter is that there could be 10 Draganflys or Red Cats or Ondases or whoever out there, that it still isn't going to meet the demand that's coming down the pipe. Kind of the last thing we're worried about right now is competition.

We kind revel in it because we like to see the innovation, and it gives us a great insight into what might be coming as we're focused on other parts of scaling. Fifth question is, "Do you see yourself doing any acquisitions?

Seems like lots of the other drone companies are." For sure.

We do. I think we are somewhat fundamentally different, though.

We are pretty organically focused. We have great capability internally.

I think that we spend a lot of time refining our product with our customers. Not that others don't, but I do think the operational history pushes us that way a bit more.

We're very focused in our acquisition strategy. We do have a number of acquisitions that are in the pipeline.

However, not that they don't come with significant revenue, that's not the driving force for us. Fitting particular technologies that actually have a maturity of manufacturing in them or the design theory that's on them has a particular amount of experience that's been put into it that can allow it to be mass-produced and fit within all of our partners, multi-mission focused, et cetera.

Those are things that are really important to us. You'll see us do some acquisitions.

They will not come across, in my opinion, as haphazard at all. They'll be very very strategic.

Again, we're playing for the next 25 years. We believe that Draganfly, in 10 years from now, for sure, will be a drone company, but really drone companies will be superintelligence companies.

Nothing collects data better than a drone, nothing delivers anything better than a drone, and when you combine those two things in an autonomous world, the possibilities of drones are far beyond what the device is. We keep that end in mind when we're thinking about what Draganfly will become and where our real leverage is.

"We tend to announce many partnerships and pilot projects. Are they translating into meaningful orders as your competitors?"

The answer is yeah, they are, but again, I believe that our approach is somewhat much more organic and blue ocean. If we think about the example I gave earlier around Cochise County, that's been now a year-long project that's turning into revenue and has created a blue ocean opportunity for us around border management.

We don't see anybody approaching drones as border management. Now, do we see people putting drones on borders?

Yes. Do people have border management experience in terms of running, managing operations, designing, building, integrating information, superintelligence, autonomy, AI around a total solution that we can work with on our partners?

That's really the difference, and that's why I think maybe our partnerships are perceived to take a little bit longer. We could go buy revenue, but then we've got to integrate revenue, and then you've got to write down all the costs around it, and I believe anyway, at least where our skill set lies, our customer deserves better than us just jamming a bunch of stuff on the top line.

We are very capital markets focused, please don't misunderstand me, but we are a employee-first, customer-second, shareholder-third organization. If our employees are really satisfied with what they're doing, they'll win customers.

If we're winning customers, we'll win shareholders. That's a philosophy that has allowed us to survive.

We've stayed small, but we've survived for 27 years. Now we're really moving into a thrive mode, but I don't think we'll be at any time soon be moving away from the core principles that have established us with some great product line and some fantastic people in the organization.

"Can you expand on your integration with Palantir AI software stack and how it expands your total addressable market and potential new revenue?" I think I addressed this a bit earlier, but the reality is Palantir's got a fantastic system, and their swarming technology is very advanced compared to many others that are new and coming out and, et cetera, out there.

We ourselves do have some of our own proprietary swarming capabilities. However, we do not want to compete with what the customer wants.

We don't want to tell the customer or have to convince the customer what they're looking for. Palantir has got an incredible capability and a customer set that is really looking for their very specific capability.

What we provide is a unique and really professional integration onto a not just a drone, but a platform of drones that can now be utilized for all of that swarming technology. Imagine if you will, you build a swarming technology for an FPV drone.

That's a pretty cool capability. Now imagine if you can build a swarming technology for a set of fixed wings, a heavy lift, a Commander 3XL that can drop FPVs, you can have an APX drone coming in doing targeting acquisition.

Your capabilities now are much more different than somebody who has a cool swarming technology on FPVs. Not that that's not important and impressive and all the rest of it, but again, it's really trying to hone in on what is it that the customer needs now and is going to need, and what are they learning that they actually need out there.

I think that's what we're trying to address. While Palantir is a really important customer and an exquisite builder of swarming technology, there are other swarming and AI-type technologies that will be incorporated into the platform.

We want to be known as that platform that can do multi-mission, right, and addresses many concepts of operation with as little cognitive load as possible. You don't want to have to relearn a drone system, have a different parts, have different supply chain, all the rest of it.

If we can incorporate all that complexity of logistics to the battlefield, right, people don't have to buy different drones to get different swarming capabilities as an example, or buy different drones to get different ISR capabilities, they can buy one system that can provide them likely the most fundamentally important thing, which is capacity, logistics, and supply where it's needed, when it's needed, then that's what we believe, and that's what our customers have told us that they believe is going to be a winning combination. So.

That was the end of the questions that Rolly forwarded off to me. In closing, first and foremost, again, just blessings out to all the folks and the men and women who are fighting for our freedom today.

Second of all, thank you very much to our shareholders. We absolutely wouldn't be here without you.

Our customers, we appreciate the opportunity to be of service, and in particular our employees, thanks for your belief in what we're all doing together. On that note, I hope you all have a blessed day.