Calgary, Alberta – July 18, 2024 – FLYHT Aerospace Solutions Ltd. (“FLYHT” or the “Company”) (TSX-V: FLY) (OTCQX: FLYLF) today announced that its wholly owned subsidiary, CrossConsense GmbH & Co. KG (“CrossConsense”) has secured two new contracts, demonstrating the growing demand for its MRO services offering.
The first contract is an expansion of CrossConsense’s relationship with a leading management consultancy, first announced in September 2023, in which CrossConsense is managing an aircraft data migration project for one of the consultancy’s airline clients, a large flag carrier in Europe.
The second contract is with a global leader in the logistics industry, specializing in international shipping, courier services and transportation. CrossConsense has been chosen to collaborate on the design phase of a large data migration project for the company, which may evolve to future phases, implementation and other services.
“While we often focus on FLYHT’s large opportunities in 5G aviation and weather solutions, these recent contract wins by CrossConsense highlight that AMOS support and data migration are additional important growth levers for our company,” said Kent Jacobs, President and Interim CEO. “We are proud of CrossConsense’s accomplishments, which are a testament to the hard work and dedication of Axel and the entire CrossConsense team.”
Added Axel Christ, Managing Director of CrossConsense, “Handling complex data processes with precision and efficiency is at the heart of what we do and what sets us apart in the competitive aviation market. We are grateful that existing and new customers are increasingly recognizing our deep industry knowledge, innovative approach, and unparalleled customer support.”
CrossConsense supports the aviation industry with its expertise in the application and utilization of SWISS AviationSoftware’s comprehensive Aircraft Maintenance and Engineering Operating System (“AMOS”) software solution. With a profound understanding of airline maintenance operations and supporting Maintenance, Repair, and Overhaul (“MRO”) products, the company offers a range of solutions in this market including maintenance, engineering, and logistics solutions, as well as data migration, business intelligence, customization, and consulting services. Core offerings include: AMOS Support, AMOS Hosting & Operation, Aircraft Fleet View (app for real-time insights into an airline’s fleet status), Aircraft Condition and Status Information System (ACSIS), and Aviation Data Warehouse (Aviation DW).
The combination of these two contracts is valued at approximately €300,000, expected to be delivered by the end of 2024.
About FLYHT Aerospace Solutions Ltd.
FLYHT provides airlines with Actionable Intelligence to transform operational insight into immediate, quantifiable action, and delivers industry leading solutions to improve aviation safety, efficiency, and profitability. This unique capability is driven by a suite of patented aircraft certified hardware products, AFIRS™. Solutions include an aircraft satcom/interface device that enables cockpit voice communications, transmission of aircraft data both while inflight via satellite and post-flight via 5G, real-time aircraft state and fleet status analysis, and preventative maintenance solutions. FLYHT’s hardware products can also be interfaced with FLYHT’s proprietary relative humidity sensors to deliver airborne weather and humidity data in real-time.
FLYHT is headquartered in Calgary, Canada, and is an AS9100 Quality registered company. For more information, visit www.flyht.com.
Calgary, Alberta – June 24, 2024 – FLYHT Aerospace Solutions Ltd. (“FLYHT” or the “Company”) (TSX-V: FLY) (OTCQX: FLYLF) today announced that Lorne Sugarman has been elected to its Board of Directors. Mr. Sugarman brings a wealth of experience with technology companies as a C-level operating executive, investment banking professional, and principal investor, which adds further depth and expertise to the Company as it enters the next phase of growth.
“Lorne’s breadth of experience operating, advising and investing in leading Canadian technology companies will be a great asset to FLYHT as we bring our innovative 5G aviation and weather solutions to market and march toward profitable growth,” said Mary McMillan, Executive Chair of the Board. “With his proven track record of transforming corporate objectives to profitable growth and creating shareholder value, Lorne is an excellent addition to the FLYHT board.”
“FLYHT has distinguished itself for over two decades is an innovator in communications and data solutions for global commercial aviation customers, and I am thrilled to begin working with a board of directors and management team that lead such an important Canadian company,” said Sugarman. “I look forward to collaborating with the board and management team as we move briskly to capitalize on the large opportunities for profitable rapid growth that lie ahead of FLYHT.”
Mr. Sugarman has 30 years of experience as a tech entrepreneur, financial executive, board member, and advisor at leading Canadian technology companies. He is currently the founder and president of Adielle Group. He is a board member and CEO of EVP Capital Inc. and Iocaste Ventures Inc., both capital pool companies. Sugarman continues to serve as a board member of Tokens.com, an emerging robotics and AI business, where he was previously the president.
FLYHT also announces today that Michael Brown decided to retire and so did not put forward his name for re-election at the Company’s AGM on June 19, 2024. Mike has steadfastly provided his experience and unwavering commitment to FLYHT over many years, and we are deeply grateful for the guidance he has provided our organization during his time on the board. Mike was one of our longest serving board members having joined FLYHT in March of 2003. During his time on the board FLYHT progressed from a small company with big ideas to an organization that supplies the aviation industry with critical, real-time satellite communications and airline operational expertise. FLYHT’s recent success of completing the AFIRS Edge 5G product line represents a milestone worthy of his dedication to our organization and the airlines we serve. The Company wishes him well in his future endeavours.
About FLYHT Aerospace Solutions Ltd.
FLYHT provides airlines with Actionable Intelligence to transform operational insight into immediate, quantifiable action, and delivers industry leading solutions to improve aviation safety, efficiency, and profitability. This unique capability is driven by a suite of patented aircraft certified hardware products, AFIRS™. Solutions include an aircraft satcom/interface device that enables cockpit voice communications, transmission of aircraft data both while inflight via satellite and post-flight via 5G, real-time aircraft state and fleet status analysis, and preventative maintenance solutions. FLYHT’s hardware products can also be interfaced with FLYHT’s proprietary relative humidity sensors to deliver airborne weather and humidity data in real-time.
FLYHT is headquartered in Calgary, Canada, and is an AS9100 Quality registered company. For more information, visit www.flyht.com.
Air North Served as the Certification Partner and Will Adopt FLYHT’s Solutions to Provide Enhanced Aircraft Communications and Maximum Operational Efficiency and Safety
CALGARY, AB / ACCESSWIRE / June 11, 2024 / FLYHT Aerospace Solutions Ltd. (“FLYHT” or the “Company”) (TSXV:FLY)(OTCQX:FLYLF) today announced that Transport Canada has issued FLYHT a Supplemental Type Certificate (“STC”) for the flange version of the AFIRS EdgeTM, the Company’s 5G wireless data communication device, for Boeing 737 NG aircraft. The achievement of this STC enables FLYHT to ship the Edge units to Canadian Boeing 737 NG customers while at the same time familiarizing the Canadian STC into other jurisdictions to enable worldwide distribution.
“Today marks another milestone achievement for FLYHT as we announce Transport Canada’s issuance of an STC for the Edge on a second aircraft type,” said Kent Jacobs, President and Interim CEO of FLYHT. “This represents the second STC approval for the flange version of the AFIRS Edge this year. I continue to be proud of our entire team and grateful to our airline partner, Air North, and Transport Canada for their efforts to complete a comprehensive and robust certification process.”
Jacobs added, “We are now in a leadership position to provide the aviation industry’s first wireless data and communications device with 5G capability on the two most popular aircraft types, the Airbus A320 and Boeing 737 NG.”
“We are excited to partner with FLYHT on the STC certification process using their innovative 5G wireless data on our Boeing 737 NG aircraft,” commented Joe Sparling, President and CEO of Air North. “We are an innovative airline and recognize the value proposition that the AFIRS Edge provides with its next generation technology.”
Per the agreement signed in October 2023, Air North has agreed to purchase FLYHT’s innovative hardware and software services as part of the Yukon airline’s fleet renewal plans. Specifically, FLYHT’s AFIRS 228 Iridium SatCom and AFIRS Edge solutions will be installed on Air North’s Boeing 737 NG aircraft as it renews its Boeing 737 Classic fleet.
The AFIRS Edge is an aircraft interface device (AID), connecting aircraft data with electronic flight bag (EFB) applications and provides airlines with Wireless Quick Access (WQAR) capabilities, all while serving as a gateway on the aircraft for critical real-time information and onboard data storage. The Edge also serves as a data port for FLYHT’s actionable intelligence services, such as fuel management, aircraft health monitoring, real-time engine data reporting and airport gate performance monitoring. Further, when coupled with a real-time IP satellite connection, the Edge enables weather data customers to work with airlines to implement FLYHT’s weather solutions for enabling enhanced weather forecasting capabilities, providing more accurate and timely warnings of extreme weather, and in the detection and avoidance of contrail generation.
About Air North, Yukon’s Airline Based out of Whitehorse, Yukon, Canada, Air North operates a fleet of Boeing 737 jets and ATR 42 turboprops on routes throughout the Yukon, Northwest Territories and to British Columbia, Alberta, and seasonally to Ontario. The airline was founded in 1977 and is 49% owned by the Vuntut Gwitchin First Nation, with one in 15 Yukoners having an equity or employment stake in the airline. In 2020, Air North received the Travellers’ Choice Award for Best Airline in Canada and Best Airline (Specialty and Leisure) in North America based upon passenger reviews.
About FLYHT Aerospace Solutions Ltd. FLYHT provides airlines with Actionable Intelligence to transform operational insight into immediate, quantifiable action, and delivers industry leading solutions to improve aviation safety, efficiency, and profitability. This unique capability is driven by a suite of patented aircraft certified hardware products, AFIRS™. Solutions include an aircraft satcom/interface device that enables cockpit voice communications, transmission of aircraft data both while inflight via satellite and post-flight via 5G, real-time aircraft state and fleet status analysis, and preventative maintenance solutions. FLYHT’s hardware products can also be interfaced with FLYHT’s proprietary relative humidity sensors to deliver airborne weather and humidity data in real-time.
FLYHT is headquartered in Calgary, Canada, and is an AS9100 Quality registered company. For more information, visit www.flyht.com.
Returns to Topline Growth, Completes Financing of $5,000,000
Calgary, Alberta – May 29, 2024 – FLYHT Aerospace Solutions Ltd. (TSX-V: FLY) (OTCQX: FLYLF) (the “Company” or “FLYHT”) today reported financial results for the first quarter ended March 31, 2024 (“Q1 2024”). All figures are Canadian dollars unless otherwise stated.
Financial Summary
Three Months Ended March 31
2024
2023
Variance
Revenue
4,790,594
4,757,230
1%
SaaS
2,763,716
2,413,200
15%
Hardware
663,532
1,771,445
-63%
Licensing
79,159
8,737
806%
Technical Services
1,284,187
563,848
128%
Gross Margin
64.0%
57.3%
+670 bps
EBITDA
(594,005)
(1,343,914)
NM
Net Income (Loss)
(794,382)
(1,657,114)
NM
EPS – Basic & Diluted
(0.02)
(0.04)
0.02
Management Commentary
“FLYHT is off to a good start in 2024 as we returned to growth in the first quarter,” said Kent Jacobs, President and Interim CEO. “Our SaaS revenues are continuing to increase at double-digit rates, representing over half of the company revenue, and earning attractive 60%+ gross margins. Additionally, growing traction by CrossConsense drove continued strength in Technical Services revenue, which increased 128% to $1.3 million making it our highest ever quarter for that revenue category. We significantly narrowed our EBITDA loss to $594,000 despite investing behind development and commercialization of our new products, demonstrating the operating leverage potential of our revenue model as we bring these products to market.” Jacobs added, “With the receipt of the Supplemental Type Certificate (“STC”) for the AFIRS Edge™ on Airbus A320 aircraft during the first quarter, the flange version Edge is now being installed on our customer’s fleet. Our expanded relationship with Once Stop Systems, Inc. (Nasdaq: OSS) to manufacture our 5G enabled AFIRS Edge solution, including the new AFIRS Edge+, ensures that FLYHT can meet the market demand for this solution.”
Continued Jacobs, “FLYHT moves into the commercialization phase of our newest product set with a large pipeline of opportunity, and, per the loan agreement announced today, expanded financial resources to support our growth plans. Both Captain Mary Millian, who has been working by my side on optimizing our go to market strategy and execution path since assuming the Executive Chairman position last fall, and myself are confident in our strategy and our ability to bring our innovative aviation and weather solutions to market – so that we can generate value for our customers, our team and our loyal shareholders.”
Operating Results
Revenue increased by 1% to $4,790,594 in Q1 2024 compared to Q1 2023, driven by growth in SaaS, Licensing and Technical Services. Excluding hardware, revenue would have increased 38% during the quarter. SaaS revenue increased by 15% to $2,763,716 in Q1 2024, driven by an increase in key customers’ fleet size, as well as growth in weather related software services. Licensing revenue increased by 806% to $79,159 due to the differences in the associated license fees realized in comparative periods. Hardware revenue decreased by 63% to $663,532, with a total of 6 installation kits shipped in Q1 2024 compared to 32 kits shipped in Q1 2023. Technical Services revenue increased by 128% to $1,284,187 as a result of AMOS data migration work delivered and an increase in customer requests for certification services. Gross margin was 64% of revenue in Q1 2024 compared to 57.3% in Q1 2023. The increase in gross margin was due primarily to changes in the mix of revenue sources during the quarter.
Operating expenses decreased by 10% from Q1 2023, driven by a 15% decrease in Research and Development and Certification Engineering expenses, an 11% decrease in Distribution expenses and a 1% decrease in Administration expenses. The decreases were largely driven by lower staffing costs across all three expense categories.
EBITDA loss totaled $594,005 in Q1 2024 compared to an EBITDA loss of $1,343,914 in Q1 2023, due to lower operating expenses in Q1 2024 as compared to Q1 2023. Net loss was $794,382 in Q1 2024 compared to a Net loss of $1,657,114 in Q1 2023.
Balance Sheet and Liquidity
Cash and short-term investments were $1,482,457 at March 31, 2024, compared to $2,042,203 at December 31, 2023.
Trade and other receivables increased by 5% to $3,050,224 compared to YE 2023. Trade payables and accrued liabilities decreased by 3% to $2,994,744 compared to YE 2023. During the quarter, the Company used $1,175,000 of its credit facility for working capital purposes.
About FLYHT Aerospace Solutions Ltd.
FLYHT provides airlines with Actionable Intelligence to transform operational insight into immediate, quantifiable action, and delivers industry leading solutions to improve aviation safety, efficiency, and profitability. This unique capability is driven by a suite of patented aircraft certified hardware products, AFIRS™. Solutions include an aircraft satcom/interface device that enables cockpit voice communications, transmission of aircraft data both while inflight via satellite and post-flight via 5G, real-time aircraft state and fleet status analysis, and preventative maintenance solutions. FLYHT’s hardware products can also be interfaced with FLYHT’s proprietary relative humidity sensors to deliver airborne weather and humidity data in real-time.
FLYHT is headquartered in Calgary, Canada, and is an AS9100 Quality registered company. For more information, visit www.flyht.com.
Quarterly results highlighted by sequential increases in SaaS revenues and receipt of favorable amendment to debt terms
Calgary, Alberta – April 24, 2024 – FLYHT Aerospace Solutions Ltd. (TSX-V: FLY) (OTCQX: FLYLF) (the “Company” or “FLYHT”) today reported financial results for the fourth quarter and full year ended December 31, 2023 (“Q4 2023”). All figures are Canadian dollars unless otherwise stated.
Financial Summary
Three Months Ended December 31
Twelve Months Ended December 31
2023
2022
Inc./ Dec.
2023
2022
Inc./ Dec.
Revenue
4,244,787
7,241,758
-41.4%
20,144,579
23,879,160
-15.6%
SaaS
2,801,661
2,253,618
24.3%
10,693,098
8,157,886
31.1%
Hardware
327,941
1,217,860
-73.1%
4,273,464
4,720,204
-9.5%
Licensing
25,649
3,030,368
-99.2%
1,962,223
9,101,130
-78.4%
Technical Services
1,089,536
739,912
47.3%
3,215,794
1,899,940
69.3%
Gross Margin
59.1%
67.1%
-800 bps
58.7%
63.7%
-500 bps
EBITDA
(1,226,783)
1,170,183
NM
(2,833,517)
251,453
NM
Net Income (Loss)
(1,494,795)
718,689
NM
(4,049,371)
(1,003,033)
NM
EPS – Basic & Diluted
(0.04)
0.01
(0.05)
(0.10)
(0.03)
(0.07)
Management Commentary
“FLYHT finished 2023 with performance in-line with our expectations. We reported over $20 million in revenue for the full year driven by record SaaS revenue of nearly $10.7 million, a 31% increase compared to 2022. This included an all-time quarterly high of over $2.8 million in SaaS revenue for the fourth quarter of 2023. As expected, we did not report positive EBITDA in 2023 due to a large high margin OEM licensing order that did not repeat this year, but also because we are reinvesting our positive cash flow to fund R&D and commercialization of our emerging 5G solutions and weather businesses,” said Kent Jacobs, President and Interim CEO of FLYHT.
Continued Jacobs, “We continue to make significant progress on our two main strategic growth initiatives, 5G aviation solutions and weather. Less than two months after being issued the Supplemental Type Certificate (“STC”) for the AFIRS EdgeTM on Airbus A320 aircraft, the flange version Edge is now being installed on our first customer’s fleet, where we will operate WQAR functions through the 5G network. We are underway with efforts to familiarize this STC into other jurisdictions, starting with the U.S. and Europe. We are also on track to deploy the FLYHT-WVSS-II sensor, Edge, and Certus-100 satcom solution with a North American airline as part of NOAA’s FY2023 budget. As expected, NOAA was allocated FY2024 budget to purchase additional FLYHT-WVSS-II, Edge and satcom systems.”
Concluded Jacobs, “As we enter 2024, we have a higher cash and investments balance at December 31, 2023 as compared to the ending cash balance at Q3 2023, reflecting our disciplined allocation of resources. We are focused on the multiple opportunities for growth across our 5G solutions and weather businesses. We expect 2024 to be a milestone year as we commercialize these business opportunities.”
Fourth Quarter 2023 Results
Revenue decreased by 41% to $4,244,787 in Q4 2023 compared to Q4 2022. Excluding Licensing, revenue would have increased by 0.2% during the quarter.
SaaS revenue increased by 24% to $2,801,661, driven by the recovery of the Company’s customer base, as well as growth in weather-related software services. Licensing revenue decreased by 99% to $25,649 due to a large 2022 order from a long-term OEM customer that was not replicated in Q4 2023. Hardware revenue decreased by 73% to $327,941, with a total of 4 installation kits shipped in Q4 2023 compared to 16 kits shipped in Q4 2022. Technical Services revenue increased by 47% to $1,089,536 as a result of data migration work delivered and an increase in customer requests for certification services.
Gross margin was 59.1% of revenue in Q4 2023 compared to 67.1% in Q4 2022. The decrease in gross margin was due primarily to changes in the mix of revenue sources during the quarter.
Operating expenses increased by 1.2% from Q4 2022, driven by a 24% increase in Research and Development and certification engineering expenses, specifically an increase in Contract Labour. This was offset by a 15% decrease in Administration expenses and an 8% decrease in Distribution expenses.
EBITDA[1] loss totaled $1,226,783 in Q4 2023 compared to positive EBITDA of $1,170,183 in Q4 2022.
Net loss was $1,494,795 in Q4 2023 compared to a Net Income of $718,689 in Q4 2022.
Full Year 2023 Results
Revenue decreased by 16% to $20,144,579 in 2023 compared to 2022. Excluding Licensing, revenue would have increased by 23% compared to 2022.
SaaS revenue increased by 31% to $10,693,098, driven by an increase in customers’ flights and flight hours as well as growth in weather-related software services. Licensing revenue decreased by 78% to $1,962,223 due to a large 2022 order from a long-term OEM customer that was not replicated in 2023. Hardware revenue decreased by 9% to $4,372,464, with a total of 69 installation kits shipped in 2023 matching the 69 installation kits shipped in 2022. Technical Services revenue increased by 69% to $3,215,794 as a result of data migration work delivered and an increase in customer requests for certification services. CrossConsense revenues were also a significant factor in this YTD increase.
Gross margin was 58.7% of revenue in 2023 compared to 63.7% in 2022. The decrease in gross margin was due primarily to changes in the mix of revenue sources during the year.
Operating expenses decreased by 2% from 2022, driven by a 20% decrease in Administrative expenses offset by a 9% increase in Distribution expenses and a 5% increase in Research and Development and certification engineering expenses.
EBITDA[2] loss totaled $2,833,517 in 2023 compared to positive EBITDA of $251,453 in 2022.
Net loss was $4,049,371 in 2023 compared to a Net loss of $1,003,033 in 2022.
Balance Sheet and Liquidity
Cash and equivalents plus GICs totalled $2,042,203 at December 31, 2023, compared to $2,647,650 at December 31, 2022. When compared to Q3 2023 balances of $1,939,959, our cash position increased by $102,244 quarter-over-quarter.
Trade and other receivables decreased by 44% to $2,896,200 compared to YE 2022, and Trade payables and accrued liabilities increased by 13% to $3,097,494 compared to YE 2022.
During the quarter, Western Economic Diversification Canada granted FLYHT an amendment to the contribution agreements for the two government loans that are in the repayment phase. The amendment reduces payments required from April 2024 to March 2025, with the resulting difference of $750,204 added to the scheduled monthly payments remaining on the loans from April 2025 to October 2028. There were no costs, nor other changes to terms associated with this favorable amendment.
About FLYHT Aerospace Solutions Ltd.
FLYHT provides airlines with Actionable Intelligence to transform operational insight into immediate, quantifiable action, and delivers industry leading solutions to improve aviation safety, efficiency, and profitability. This unique capability is driven by a suite of patented aircraft certified hardware products, AFIRS™. Solutions include an aircraft satcom/interface device that enables cockpit voice communications, the transmission of aircraft data both inflight via satellite and post-flight via 5G, real-time aircraft state and fleet status analysis, and preventative maintenance solutions. FLYHT’s hardware products can also be interfaced with FLYHT’s proprietary relative humidity sensors to deliver airborne weather and humidity data in real-time.
FLYHT is headquartered in Calgary, Canada, and is an AS9100 Quality registered company. For more information, visit www.flyht.com.
Calgary, Alberta – March 19, 2024 – FLYHT Aerospace Solutions Ltd. today announced that its long-term OEM partner has engaged the Company to undertake engineering and design work on the technology that it licenses from FLYHT as part of its Airbus line fit satcom program. The refresh of the technology positions the two partners to extend the longevity of this successful program with Airbus.
As part of this long-standing program, FLYHT supports its OEM partner in delivering a customized version of the AFIRSTM 228S to support voice and data communications used in the cockpit of Airbus aircraft anywhere in the world through the Iridium® satellite network.
“The request by our long-term OEM partner to refresh the modem design is the surest indication that the AFIRS 228S line fit program with Airbus remains strong,” commented Gurjot Bhullar, VP of Operations at FLYHT. “It is a reflection of the high quality of FLYHT’s product and their acceptance and reliance upon it. We have increased confidence that this revenue stream will continue well into the future.”
This technical services contract is valued at approximately $360,000 USD with work expected to be completed over the coming months. It builds upon a relationship previously discussed in press releases dated July 2014, August 2019, February 2020, July 2021, October 2021, May 2022, and June 2023. This program has resulted in the shipment of over 3,200 units to Airbus to date.
About FLYHT Aerospace Solutions Ltd.
FLYHT provides airlines with Actionable Intelligence to transform operational insight into immediate, quantifiable action, and delivers industry leading solutions to improve aviation safety, efficiency, and profitability. This unique capability is driven by a suite of patented aircraft certified hardware products, AFIRS™. Solutions include an aircraft satcom/interface device that enables cockpit voice communications, transmission of aircraft data both while inflight via satellite and post-flight via 5G, real-time aircraft state and fleet status analysis, and preventative maintenance solutions. FLYHT’s hardware products can also be interfaced with FLYHT’s proprietary relative humidity sensors to deliver airborne weather and humidity data in real-time.
FLYHT is headquartered in Calgary, Canada, and is an AS9100 Quality registered company. For more information, visit www.flyht.com.
Calgary, Alberta – February 16, 2024 – FLYHT Aerospace Solutions Ltd. (TSX-V: FLY) (OTCQX: FLYLF) (the “Company” or “FLYHT”) today announced that Transport Canada has issued FLYHT a Supplemental Type Certificate (“STC”) for the flange version of the AFIRS EdgeTM, the Company’s 5G wireless data communication device, for Airbus A320 aircraft. The achievement of this STC enables FLYHT to ship the Edge units to Canadian A320 customers while at the same time familiarizing the Canadian STC into other jurisdictions to enable worldwide distribution.
“Today marks a milestone achievement for FLYHT as we announce Transport Canada’s issuance of an STC for the Edge,” said Kent Jacobs, President and Interim CEO of FLYHT. “This represents the culmination of our collective vision, hard work, and perseverance over a number of years. I am proud of our entire team and grateful to our airline partner and Transport Canada for their tireless effort to complete a comprehensive and robust certification process.”
Jacobs added, “This achievement not only establishes FLYHT as having the aviation industry’s first wireless data and communications device with 5G capability, but it also puts us in a leadership position to provide this advanced technology to airlines operating Airbus A320 aircraft. The value proposition of the Edge is clear. With legacy 2G/3G connectivity sunsetting soon, airlines with the Edge will be able to ensure network availability long into the future and also be able to leverage the powerful onboard analytics capability of the Edge computing to enable predictive and proactive operations in real-time.”
The AFIRS Edge is an aircraft interface device (AID), connecting aircraft data with electronic flight bag (EFB) applications and providing airlines with Wireless Quick Access (WQAR) capabilities, all while serving as a gateway on the aircraft for critical real-time information and onboard data storage. The Edge also serves as a data port for FLYHT’s actionable intelligence services, such as fuel management, aircraft health monitoring, real-time engine data reporting and airport gate performance monitoring. Further, when coupled with a real-time IP satellite connection, the Edge enables weather data customers to work with airlines to implement FLYHT’s weather solutions for enabling enhanced weather forecasting capabilities, providing more accurate and timely warnings of extreme weather, and in the detection and avoidance of contrail generation.
About FLYHT Aerospace Solutions Ltd. FLYHT provides airlines with Actionable Intelligence to transform operational insight into immediate, quantifiable action, and delivers industry leading solutions to improve aviation safety, efficiency, and profitability. This unique capability is driven by a suite of patented aircraft certified hardware products, AFIRS™. Solutions include an aircraft satcom/interface device that enables cockpit voice communications, transmission of aircraft data both while inflight via satellite and post-flight via 5G, real-time aircraft state and fleet status analysis, and preventative maintenance solutions. FLYHT’s hardware products can also be interfaced with FLYHT’s proprietary relative humidity sensors to deliver airborne weather and humidity data in real-time.
FLYHT is headquartered in Calgary, Canada, and is an AS9100 Quality registered company. For more information, visit www.flyht.com.
Calgary, Alberta – February 13, 2024 – FLYHT Aerospace Solutions Ltd. (“FLYHT” or the “Company”) (TSX-V: FLY) (OTCQX: FLYLF) today provided the following open letter to shareholders including updates regarding commercialization of the Company’s 5G aviation and weather intelligence solutions. The Company expects to report financial results for the fourth quarter and full year 2023 and to conduct an earnings conference call in April 2024.
Dear Fellow Shareholders, I want to take this opportunity to relate the achievement of significant milestones across our Company and to update you on the progress we are making toward our strategic growth initiatives.
Tech Status Update: AFIRS EdgeTM I am excited to announce that we have formally completed our data package and have submitted this to Transport Canada delegates for a Supplemental Type Certificate (“STC”) approval for the activation of the flange version of our industry leading 5G wireless data communication device, the AFIRS Edge. This STC is for installation on Airbus A320 aircraft. The submission of the formal STC application for the Edge represents the culmination of our vision, hard work, and perseverance across the FLYHT organization as we built the Edge over the past three years, and in particular in recent months, as we completed certification testing in collaboration with our partner, Canada Jetlines. In our experience obtaining more than 100 STCs over the past 20 years, from this stage it can take up to 60 days for Transport Canada to process and approve STC applications, and we expect this to be the case as well for the Edge. Upon receipt of the STC, we will be able to ship Edge units to our Canadian A320 customers while at the same time we will familiarize the Canadian STC into other jurisdictions to enable worldwide shipments. While the A320 is expected to be the first STC, we are pushing forward with additional STC applications on two other popular aircraft types, the Embraer 145 and Boeing 737, and we expect to receive STCs for these aircraft in 2024 as well.
Meanwhile, we are on schedule with development of the plug-in compatible version of the Edge called the Edge+, designed to be installed overnight in customer aircraft in the same avionics bay slot as existing legacy products and utilizing existing aircraft wiring. We expect to be conducting STC certification testing on an A320 aircraft and receiving our first approval in Q3 of 2024. The Edge+ is creating exciting discussions within tier one airlines as the ease of installation in their legacy fleets allows them to effortlessly upgrade their capability. Both Edge versions are very much of interest to airlines as they look to move to a 5G compatible product over the older 2G, 3G, and LTE products which are sunsetting.
As announced on January 23, 2024, we have expanded our relationship with One Stop Systems, Inc. (Nasdaq: OSS) to ensure that we are able to scale manufacturing to meet anticipated demand for the Edge and Edge+ over the coming years. OSS, who has been supporting FLYHT on the design of our Edge products, will now also support our manufacturing of both the Edge and the Edge+ product lines. OSS expects to begin their production support and shipments of AFIRS Edge+ in Q2 2024.
Leveraging the Edge: Our Weather and Climate Business In our weather business, we believe that FLYHT’s technology greatly enhances the accuracy of short- and long-term weather predictions and is a key tool in providing more accurate and earlier extreme weather warnings, and in the detection and avoidance of contrail generation. I’m pleased to report that we are advancing with our two major programs with the UK Met and NOAA.
In the UK, we have completed the initial engineering surveys to install the FLYHT-WVSS-II atmospheric water vapour sensor on Embraer 145 aircraft with our airline partner Loganair. The focus now turns toward building the first sensors at our production line in Calgary, and to obtaining STCs on the Embraer 145 from the UK Civil Aviation Authority for the Edge, the Certus-100 modem, and the sensor itself. We are targeting installations on Loganair’s fleet of Embraer aircraft to commence during Q4 2024.
In the U.S., we are under contract with NOAA to deliver FLYHT-WVSS-II, Edge and satcom sensor packages under NOAA’s FY2023 budget for the collection of atmospheric data on U.S. Pacific routes looking predominantly at atmospheric river formations. FLYHT and NOAA are in advanced stages of securing the airline partner for this program to position for installations on the Boeing 737 in Q4 2024. Next month we expect to be allocated NOAA FY2024 budget per the contract for further FLYHT-WVSS-II sensor deployment to help fill data gaps that currently exist over key areas of the U.S. and surrounding oceanic areas. As an organisation, we are actively lobbying the U.S. Congress to ensure that the pending U.S. Weather Act re-authorization which is due to become law this year has sufficient funding to continue the expansion of this vital sensor.
Additionally, as the FLYHT-WVSS-II production line gets underway in Calgary, FLYHT is well placed to support, upgrade, calibrate and/or replace the 148 legacy sensors which are now nearing end of life. These sensors provide millions of valuable data points every month to NOAA and meteorological agencies around the world by feeding predictive weather systems and improving weather forecasting and it is vital that this key data stream is maintained for the foreseeable future.
Europe Update: CrossConsense I am equally enthusiastic about the innovation and opportunities at CrossConsense (wholly owned subsidiary of FLYHT). In December, I spent a week in Germany with the team, helping to architect a more integrated offering with our North American operations as well as to contribute to some of the largest new business initiatives in CrossConsense history. Their work and reputation create their own pipeline of opportunities as well as gratifying industry recognition (see here).
Looking ahead, CrossConsense plans to roll-out several exciting new extensions to their app offerings this year. Many all-new features will make it into their popular solution Aircraft Fleet View, which is already in use with more than 3000 users. These customer-driven developments focus on communication and collaboration within the aviation space. The goal is to replace the need for unofficial communication channels like WhatsApp. The team already has multiple new customers lined-up, who are actively participating in feature development.
Driving Hardware and Software Sales in Both 5G Aviation Solutions and Weather Intelligence We are laser focused on deploying our innovative hardware into a growing number of different aircraft types to drive our recurring SaaS revenue strategy. In both our 5G aviation solutions and weather intelligence businesses, it is the integration of our SatCom and Edge hardware that allows data to be gathered throughout the aircraft, and in turn, to power real-time intelligence and data transmission.
We are already seeing this play out in Weather, which is increasingly looking to be an even greater opportunity than we had originally envisioned. Each aircraft installation will include a FLYHT-WVSS-II humidity sensor, and, in order to transmit the data off the aircraft in real-time, will be fully integrated with a Certus-100 SatCom terminal and Edge device. We will then generate recurring SaaS revenue as we capture aircraft-based observations on an ongoing basis. The model is no different in 5G aviation solutions where there is upfront hardware sales and a long tail of recurring SaaS revenue.
Based on conversations we are having, we believe the work we are doing with the UK Met and NOAA may ultimately pave the way for us to also work directly with the OEMs and airlines. We envision a world in the not-too-distant future where there is a line fit sensor, which would become another source of opportunity which leverages our integrated hardware and software solutions.
Already, we have a solid growing base of recurring SaaS revenue which we expect to further expand as we roll out our new offerings. The growth of this high margin revenue stream, which now represents over half of the total compared to a third just six years ago, is the result of our strategic focus on offering cloud-based software applications and services that integrate with and leverage an expanding portfolio of hardware products. Over the past five years our SaaS revenue sources have been diversified, no longer simply tied to the number of flights or number of flight hours. We generate SaaS revenue from across the business including from satcom, weather and maintenance, and soon with the introduction of the Edge, new Actionable Intelligence opportunities. Having software integrated with hardware is so powerful that customers with early access to the Edge are increasingly requesting our whole software suite.
Fiscal Responsibility Sets Up for a Stronger 2024 We continue to reinvest the positive cashflow generated from our previous, still active, generations of hardware, to fund the R&D and commercialization of our emerging opportunities. A contributor to that positive cashflow is our SaaS revenues with an annual run rate of over $11 million based on the third quarter of 2023. This demonstrates a comparative, annualized growth of over 30% (see our Q3 2023 report here and press release here). As we invest for the near-term future, we are dedicated to living within our means by investing mainly from our internally generated cashflow, and investing in our highest strategic priorities. This strategic prioritization of development efforts has been key to our success in recent years and will remain that way long after we begin to generate revenues from our investments.
Thank You for Your Ongoing Support In my 22-plus years at FLYHT, I have never felt more confident in FLYHT’s future. Addressing today’s aviation industry and weather community needs, we are building upon our legacy business of aviation safety services, with the right solutions and a clear route to market. We have a significant addressable market waiting for us.
I express my confidence to you while recognizing that our share price has come under pressure as STC timelines and commercialization has taken longer than expected. Both the pace of our progress and the performance of FLY shares are unacceptable to all of us and especially to me. We are working tirelessly to speed our initiatives so that we can deliver to our customers and fulfill our promise to you, our shareholders.
Finally, I would like to extend my sincere gratitude to all our shareholders who continue to support FLYHT as we advance technology that has the potential to become the global standard for the aviation and weather communities. We believe we are on the cusp of generating revenue and cashflow from our 5G aviation and weather solutions which will drive growth for years to come and ultimately shareholder value. We look forward to several exciting developments in the months and years ahead as we execute our 2024 business plan.
Yours truly, Kent Jacobs President & Interim CEO
About FLYHT Aerospace Solutions Ltd. FLYHT provides airlines with Actionable Intelligence to transform operational insight into immediate, quantifiable action, and delivers industry leading solutions to improve aviation safety, efficiency, and profitability. This unique capability is driven by a suite of patented aircraft certified hardware products, AFIRS™. Solutions include an aircraft satcom/interface device that enables cockpit voice communications, transmission of aircraft data both while inflight via satellite and post-flight via 5G, real-time aircraft state and fleet status analysis, and preventative maintenance solutions. FLYHT’s hardware products can also be interfaced with FLYHT’s proprietary relative humidity sensors to deliver airborne weather and humidity data in real-time. FLYHT is headquartered in Calgary, Canada, and is an AS9100 Quality registered company. For more information, visit www.flyht.com.
OSS to Lead Hardware Design and Manufacture of FLYHT Aerospace Solutions’ New Aircraft Interface Device and Health Monitoring System — World’s First Wireless Quick Access Recorder with 5G Mobile Wireless for Real-time Remote Access
ESCONDIDO, Calif. & CALGARY, Canada – January 23, 2024 – One Stop Systems, Inc. (Nasdaq: OSS) and FLYHT Aerospace Solutions Ltd. (OTCQX: FLYLF) (TSX-V: FLY) today announced the commencement of a multi-year design and manufacturing collaboration for FLYHT’s automated flight information reporting systems (AFIRS™) Edge family, including its new AFIRS Edge+. The expanded relationship ensures that FLYHT has access to OSS’s scaled capabilities as it launches the aviation industry’s first-to-market 5G-enabled avionics solutions.
The AFIRS Edge is an aircraft interface device (AID), connecting aircraft data with EFB applications and providing airlines with Wireless Quick Access (WQAR) capabilities, all while serving as a gateway on the aircraft for critical real-time information and onboard data storage. The Edge also serves as a data port for FLYHT’s actionable intelligence services, such as fuel management, aircraft health monitoring, real-time engine data reporting and airport gate performance monitoring.
Rendering of AFIRS Edge+
Further, when coupled with a real-time IP satellite connection, the Edge enables weather data customers to work with airlines to implement FLYHT’s Aircraft Based Observations (ABO) weather systems and solutions. ABO can include water vapor humidity data for enabling enhanced weather forecasting capabilities.
“We chose OSS as our manufacturing partner for our AFIRS Edge systems because of their proven capabilities in ruggedizing commercial aerospace devices and expertise in rugged edge solutions for AI, sensor processing and sensor fusion,” stated FLYHT President and Interim CEO, Kent Jacobs. “We also want to leverage OSS’s expertise in the design, development, integration, testing and manufacturing of new products like our AFIRS Edge+ which can enable faster time-to-market.”
For OSS, the design and manufacturing engagement with FLYHT is valued at a minimum of US$6 million over the initial five-year term. OSS expects to begin production and shipments of AFIRS Edge+ in the second quarter of 2024.
“This major win builds upon OSS being a long-time provider of embedded compute and storage technology for FLYHT’s flight safety equipment and networking prototypes,” noted OSS VP of Sales, Robert Kalebaugh. “Our selection by an industry leader like FLYHT represents a strong validation of our design, engineering and manufacturing capabilities, as well as the comprehensive customer service that we have delivered to FLYHT over the years.”
OSS CEO Mike Knowles commented: “This multi-year engagement expands our position in commercial aerospace, and further strengthens our technology development and manufacturing platform. Furthering our relationship with FLYHT as a long-standing valued partner underscores our commitment to aviation safety and delivering mission-critical performance without compromise for this important industry.”
About FLYHT Aerospace Solutions Ltd.
FLYHT provides airlines with Actionable Intelligence to transform operational insight into immediate, quantifiable action, and delivers industry leading solutions to improve aviation safety, efficiency, and profitability. This unique capability is driven by a suite of patented aircraft certified hardware products. These include AFIRS™, an aircraft satcom/interface device that enables cockpit voice communications, real-time aircraft state analysis, and the transmission of aircraft data while inflight. The AFIRS Edge is a state-of-the-art 5G Wireless Quick Access Recorder (WQAR), Aircraft Interface Device (AID), and Aircraft Condition and Monitoring System (ACMS). The Edge can be interfaced with FLYHT’s TAMDAR probe or the FLYHT-WVSS-II relative humidity sensor to deliver airborne weather and humidity data in real-time.
CrossConsense, FLYHT’s wholly owned subsidiary, offers highly skilled services to the commercial aviation industry and provides preventative maintenance solutions. These include Aircraft Fleet View, a native application that gives a real-time view of airline fleet status; AviationDW, a managed data warehouse for enhanced business intelligence; and ACSIS, a visualization and predictive maintenance alerting tool. FLYHT is headquartered in Calgary, Canada, and is an AS9100 Quality registered company. CrossConsense, located in Frankfurt, Germany, is an ISO9001 certified operation.
For more information, visit www.flyht.com.
About One Stop Systems
One Stop Systems, Inc. (Nasdaq: OSS) is a leader in AI Transportable solutions for the demanding ‘edge.’ OSS designs and manufactures the highest performance compute and storage products that enable rugged AI, sensor fusion and autonomous capabilities without compromise. These hardware and software platforms bring the latest data center performance to the harsh and challenging applications, whether they are on land, sea or in the air.
OSS products include ruggedized servers, compute accelerators, flash storage arrays, and storage acceleration software. These specialized compact products are used across multiple industries and applications, including autonomous trucking and farming, as well as aircraft, drones, ships and vehicles within the defense industry.
OSS solutions address the entire AI workflow, from high-speed data acquisition to deep learning, training and large-scale inference, and have delivered many industry firsts for industrial OEM and government customers.
As the fastest growing segment of the multi-billion-dollar edge computing market, AI Transportables require—and OSS delivers—the highest level of performance in the most challenging environments without compromise.
OSS products are available directly or through global distributors. For more information, go to www.onestopsystems.com.
Calgary, Alberta – December 13, 2023 – FLYHT Aerospace Solutions Ltd. (“FLYHT”) (TSX-V: FLY) (OTCQX: FLYLF) today announced that it has signed a multi-year contract renewal with Jordan Aviation PSC (“JAV”), to provide its fleet of Boeing 767, 737’s and Airbus A320’s with FLYHT’s software solutions. The renewed agreement will help continue to improve JAV’s flight operations and maximize its efficiency.
This renewal extends the relationship between FLYHT and JAV that began in 2009 and currently includes a suite of software services that includes Satcom, FLYHTLog, FleetWatch, FLYHTHealth and FLYHTQAR on five aircraft.
“We are honored to be part of the continued success story at Jordan Aviation with the renewal of our software solutions agreement,” commented Kent Jacobs, President and Interim CEO at FLYHT. “We are thrilled that one of FLYHT’s long-standing customers sees the competitive advantage of our innovative AFIRS solutions.”
Added Mike Hawkins, Chief Operating Officer and Accountable Manager at Jordan Aviation, “As an airline that prides itself on not only meeting but surpassing international standards and client expectations as we solve our client’s often complex and difficult logistics issues in an ever-demanding market, it was an obvious decision to extend our relationship with FLYHT. FLYHT’s solutions have been part of our success over the past ten years and have supported our Worldwide AOC with operations for both our IGO and Commercial clients.” This contract renewal is valued at approximately US$583,000, provided that all services are delivered over the five-year term of the agreement.
About Jordan Aviation PSC Jordan Aviation Company (JAV) is proud to be the first privately owned airline in Jordan. It was first launched in 1998 by Captain Muhammad Khashman who served in the Royal Jordanian Air Force for 16 years. After extensive experience in the field of aviation, JAV commenced its air operations in October 2000. JAV offers short and long haul flights with warm hospitality and an unforgettable experience.
About FLYHT Aerospace Solutions Ltd. FLYHT provides airlines with Actionable Intelligence to transform operational insight into immediate, quantifiable action, and delivers industry leading solutions to improve aviation safety, efficiency, and profitability. This unique capability is driven by a suite of patented aircraft certified hardware products. These include AFIRS™, an aircraft satcom/interface device that enables cockpit voice communications, real-time aircraft state analysis, and the transmission of aircraft data while inflight. The AFIRS Edge is a state-of-the-art 5G Wireless Quick Access Recorder (WQAR), Aircraft Interface Device (AID), and Aircraft Condition and Monitoring System (ACMS). The Edge can be interfaced with FLYHT’s TAMDAR probe or the FLYHT-WVSS-II relative humidity sensor to deliver airborne weather and humidity data in real-time.
CrossConsense, FLYHT’s wholly owned subsidiary, offers highly skilled services to the commercial aviation industry and provides preventative maintenance solutions. These include Aircraft Fleet View, a native application that gives a real-time view of airline fleet status; AviationDW, a managed data warehouse for enhanced business intelligence; and ACSIS, a visualization and predictive maintenance alerting tool.
FLYHT is headquartered in Calgary, Canada, and is an AS9100 Quality registered company. CrossConsense, located in Frankfurt, Germany, is an ISO9001 certified operation. For more information, visit www.flyht.com.
