Draganfly Inc. (DPRO) Earnings Call Transcript & Summary

Welcome back to the Cheddar's opening bell. As Russia's invasion on Ukraine continues, modern technology is proving to be a lifeline for those in need, drone company, Draganfly has teamed up with Coldchain Delivery Systems to deliver medical supplies, medicine and vaccines to hard hit and hard to reach areas in Ukraine. Now drones are going into the battlefield. Joining me with more on this is Cameron Chell, Chairman and CEO of Draganfly. So happy that you're joining us on the show because this sounds so cool and so futuristic.

So can you tell me a little bit more about your trip to Ukraine recently? I mean, you oversaw the arrival of drones to the nonprofit group, Revived Soldiers Ukraine. Walk us through what these drones can actually do and how they're helping rescue those people and help the people there?

Amazing. Thank you so much, and thanks for helping us get this story out. Draganfly is a publicly traded company on NASDAQ, and we're honored to be a part of the efforts in Ukraine and have you talk about us here. So recently we just got back from Ukraine, and we were there on a dual mission. One was actually a demining mission where our drones and sensors are being used to detect land mines. But the other primary reason we were there were to deliver our medical response drones, which are a medium lift drone that carries about 30 pounds of temperature-controlled requirements that go into hard-to-reach areas. And these requirements, unfortunately, are things like insulin and things like antibiotics and things like rape kits. And those are the 3 biggest requirements that are in the area. These drones have about a 20-kilometer radius. And so where you've got areas that might be occupied or might be under siege or might be hard to reach and ambulances can't get to. From about 20 kilometers away, you can get in and quickly deliver this product and equipment and get out and run multiple missions a day. It's a game changing. It's saving lives and making a big difference.

This is huge. Now have any of your drones been actually like shot down? Are you concerned about that at all?

Absolutely. We're concerned about that. But the reality is the cost of these drones going in there, the ROI, if I can call it that, in terms of saving lives is miniscule compared to the cost of not getting the equipment in there. I mean, the ordnance that's used to shoot these drones or to try to take them out of the sky is more expensive than the drone itself. So it's not that cost is inconsequential. But compared to the relief that's being delivered or the cost to bring these drones down, it's actually a net benefit.

And speaking of that, I wanted to talk more about the Draganfly's land mine detection technology and how that actually works. It sounds pretty cool. What's happening there with that technology to demine those areas?

Yes. So there's about estimates between 20 and 40 years of demining that's going to have to happen in the Ukraine now. For every day of war, there's 30 days of demining that has to occur. And so the system that we're working with our partners over there, [ DFC ] and the government, we actually have a series of about 7 drones that fly up in and over fields or into the affected areas. And they run multiple sensors. There might be everything from magnetometers to multispectral cameras to thermal imaging. And what happens is all of that data is then collated back and a map is produced that shows all the anomalies of either different types of mines, plastic, metal, ceramics, anti-personnel, unexploded ordnance. And it's really a very effective tool that we're developing with the organizations over there so that as the demining crews go in there on their standard operating procedures, they've got the best map possible and the quickest way possible to start to demine these particular areas, both for human safety, but also to get the land productive again.

That is so cool, how it creates that diagram for them to go in there safely. Now when they are demining them, do they just blow them up or they try to detonate them? What goes on there?

Yes. That's an operating procedure that the demining crews have to work through. And some are diffused, some are destroyed, some are removed. It really depends on the different type of ordnance or mines that are in play.

And what do you think are some of the advantages of using the drones to help combat violence that we're seeing there?

Well, I think the evidence speaks for itself. I don't think there's been -- other than the resolve of the incredible Ukrainian people, I don't think there's been another single factor that's had as much effect in this particular conflict than drones. This has really become the drone war. And the drones have become the great equalizer for the Ukrainian people, whether its surveillance or reconnaissance or targeting or humanitarian efforts, I mean, these are the things that are making a big, big difference. So I think this is a coming of the age of drones to be frank.

And speaking just to that point, we've seen drones become increasingly popular over the last few years even. And many organizations fully adapting their technologies such as tech giants like Amazon, Meta, even food delivery services are talking about using them. How do you foresee the future of drone technology adaption into the U.S. and overseas markets and sectors? Maybe what sectors do you see them also going into potentially in the future?

Yes. So I mean, Draganfly is the world's oldest commercial drone manufacturer. We've been in business for 24 years. So we've seen it all. And really the commercial drone aspect is now just coming at advent. The drone industry really has been either military or consumer. And now you see an organization like Draganfly really in a spot where it's taking off because we've got these Fortune 5000 companies that are coming to us, whether it's for delivery or whether it's for logistics or infrastructure mapping or data collection or forestry yields or whatever the case is. And these are all solutions that we can provide. Certainly, delivery is going to be a big, big area for drones. First of all, I do believe in the emergency medical response. So drones is first responders. So a 911 call will happen. And the first thing that will happen is a drone is deployed. It will get to on-site 12 to 15 minutes quicker than the trucks or the boots or the people that are getting there, and it will be able to provide situational awareness. Is it a false alarm? Is there a crowd gathering? Is there somebody in danger? Our drones today can actually get to that scene and can take the vital signs from the air of the survivors on the ground, heart rate, respiratory rate, blood pressure, oxygen levels. This is all proprietary technology that we bring to the table because of our wealth of experience. And so then it's going to migrate into consumer delivery, but certainly infrastructure mapping, environmental monitoring. We're doing a big project for the company right now where these drones are being used in STEM classes to teach engineering and AI, and we found that kids are actually using them as companions, right, and then creating those companions in their video game. So it's really becoming a mirror between the real and the digital world, and your imagination is the only limitation of what and where drones will touch the world.

Wow, that is some amazing and mind-blowing tech you're talking about there. And so I wish you another month's the best, especially for all the work you guys are doing in Ukraine. Please keep up the great work you guys are doing. Cameron Chell…

Thanks for the opportunity.

You got it. Thank you so much for you and Draganfly for joining us today. All right.