TORONTO, ON / ACCESSWIRE / November 29, 2024 / Volatus Aerospace Corp. (TSXV:FLT)(OTCQB:TAKOF) (Frankfurt:A3DP5Y/ABBA.F)(“Volatus” or “the Company”), a leader in aerial solutions, is pleased to announce its financial results for the third quarter ended Sept 30, 2024. All dollar figures are stated in Canadian dollars, unless otherwise indicated.

The Company generated revenues of $20,364,238 for nine months period ended Sept 30, 2024, and $6,618,504 for the three months ended Sept 30, 2024. For the three-month period, the Company’s blended gross margin was 34%, and the Company generated cash flow from operating activities of $79,634.

Q3 2024 Performance Highlights:

• Service revenue increased by 44% from $3.90M in Q1 2024 to $5.5M in Q3 2024. Services revenue increased by 17% from Q2 2024.
• Gross profit was $2.25M. In Q3 2024, the Company successfully maintained its gross margin percentage of 34%, which was a direct result of our strategic shift toward higher efficiency operations and an optimized allocation of capital that led to 84% of revenue driven by long-term services.
• Available cash on hand on Sept 30, 2024, was $679,437. Subsequently to quarter end, the Company completed the closing of $15M financing backed by Investissement Québec and Export Development Canada, and in early November the Company closed additional $2.77M equity financing. The temporary limitation in growth working capital led to a continued impact in equipment revenue in the current quarter. The Company expects to regain equipment sales starting Q424.
• The comprehensive loss of ($5,491,822) in Q3 2024 compared to ($1,920,403) Q3 2023 was due to higher depreciation expenses, interest charges, and $1.5M one-time merger transaction related advisory fees. Excluding external partner cost and depreciation, the SG&A expenses reduced by $592K. This showcases our efforts to reduce overhead cost and achieve near-term profitability.
• The Company has realized annualized cost synergies of approximately $2.1M within 60 days of the merger with Volatus Aerospace Corp. . This Company expects the synergies to be over $3M within the next 2 quarters.
• Launched operations in Europe to scale BVLOS operations and enhance the capabilities of our OCC (Operations Control Centre).
• Received Transport Canada approval for BVLOS Flights Without Visual Observers for Its DroneCare Commercial Project.
• Achieved historic Milestone with its Edmonton project by launching phase 2 of the project and expanding cargo services from YEG to Leduc.
• Continued expansion in oil and gas sector in the U.S. by leveraging advanced technological applications such as optical gas inspections and magnetometry.
• Continued expansion in the UK with the strategic acquisition of UAV Hub and Drone Mentor.
• Executed on work for the inspection of 11,000 structures in the US utility sector.
• Expanded LiDAR services in Canada and the U.S.
• Successfully closed merger of equals with Volatus Aerospace Corp. and completed operational integration to unleash meaningful cost synergies.
• Ranked second fastest growth companies in Canada by the Globe and Mail.
• Secured $15M financing from two major Canadian institutional investors – Investissement Québec and Export Development Canada to expand its operations and accelerate the development of its aerial solutions across key core industries such as oil and gas, energy utilities, public safety, and infrastructure
• Successfully completed 2.250 acres solar farm inspection, covering over 400MW of solar power capacity and 762,750 solar panels across 16 solar fields and 1 large substation .
• Announced a new collaboration to enhance Beyond Visual Line of Sight (BVLOS) capabilities for Remotely Piloted Aircraft Systems (RPAS) through the integration of Kongsberg’s IRIS Terminal into Volatus’ state-of-the-art Operations Control Center (OCC)
• Closed its previously announced commercially reasonable best efforts private placement and secured $2.77M in financing

Q3 2024 Operational Highlights

Subsequent to Q3 2024 Operational Highlights

“During Q3 2024, Volatus has been focused on closing the transaction between Drone Delivery Canada and Volatus Aerospace Corp., positioning the Company for growth, and for the future of BVLOS” said Glen Lynch, CEO of Volatus Aerospace. “As we integrate our organization, we look forward to expanding this further, adding remote operational capabilities and cargo delivery to our ever-expanding portfolio.”

Outlook for Q4 2024 and 2025

The Company expects Q424 to be a strong quarter backed by growth and working capital. We expect better Gross Margin performance and fulfillment of larger contracts with material improvement in our Adj EBITDA margins.

The drone services and technology sector are experiencing explosive growth as organizations in oil and gas, utility, public safety, and hospitals realize significant cost and time savings. This shift presents a significant opportunity for Volatus, as demand for its high-margin services and solutions continues to grow. Volatus remains a clear leader in this field, with expertise in delivering comprehensive, high-value services, Volatus is well-positioned to capitalize well into 2025.Volatus has a proven track record of delivering strong results in the fourth quarter of the fiscal year, and this trend is expected to continue as we have closed our financings and capitalized the balance sheet. With the closing of the merger of equals behind us, integration well under way, and long-term institutional partners secured, Volatus is now positioned to offer its customers a wide array of products and services across the globe.

Additional Corporate Update

Volatus is pleased to announce that it has acquired additional shares in Synergy Aviation Ltd, increasing its holdings to 58.47% of outstanding shares Under the terms of the agreement with one minority shareholder, the purchase price of minority shares representing 7.47% of outstanding shares is C$297,977.00.  This amount will be paid in the form of newly issued common shares of Volatus Aerospace Inc. The shares will be issued at a value based on the 30-day volume-weighted average price (VWAP) of Volatus’ shares as of the date prior to closing, with a minimum floor price of $0.115 per share. The maximum total number of shares to be issued will be 2,591,104.

The transaction is expected to close on or before 30th, November 2024 and is subject to final approval by the TSX Venture Exchange. 

About Volatus Aerospace:

Volatus Aerospace is a leader in innovative global aerial solutions for intelligence and cargo. With a strong foundation of over 100 years of combined institutional knowledge in aviation, Volatus provides comprehensive solutions using both piloted and remotely piloted aircraft systems (RPAS). We serve industries such as oil and gas, utilities, healthcare, and public safety. Our mission is to enhance operational efficiency, safety, and sustainability through cutting-edge, real-world solutions.