TSX lower after index logs fresh record closing high
Volatus Aerospace Inc., with a market capitalization of $1.73 billion, reported a revenue decline in its Q1 2025 earnings call, with revenue falling to $5.7 million from $6.6 million in the same quarter last year. Despite this, the company’s stock rose by 7.41% to $0.58 in early trading. According to InvestingPro analysis, the stock is currently trading below its Fair Value, suggesting potential upside opportunity. The company posted an earnings per share (EPS) of -$0.01, which was a slight improvement over previous results. The market reacted positively, possibly due to strategic updates and future growth prospects.
Key Takeaways
- Volatus Aerospace’s Q1 2025 revenue decreased by 13.6% year-over-year.
- Stock price increased by 7.41% following the earnings call.
- The company is targeting EBITDA breakeven by mid-2025.
- New product innovations include nationwide BVLOS approvals and drone-in-a-box solutions.
- Strategic focus on expanding in Canada, the US, and Africa.
Company Performance
Volatus Aerospace faced a challenging Q1 2025, with revenue dropping to $5.7 million compared to $6.6 million in Q1 2024. The company managed to improve its pro forma loss from $4.4 million to $3.36 million, showing progress in cost management. InvestingPro data reveals the company operates with a moderate level of debt and maintains a healthy current ratio of 1.03, indicating sufficient liquidity to meet short-term obligations. Despite the revenue decline, the company maintained a stable gross margin of 32%. The product mix shifted slightly, with services accounting for 56% of the revenue.
Financial Highlights
- Revenue: $5.7 million, down from $6.6 million in Q1 2024
- Gross Margin: 32%, stable year-over-year
- Pro Forma Loss: Improved to $3.36 million from $4.4 million
- Cash from Operating Activities: $1.45 million
- Normalized EBITDA: 30% improvement year-over-year
Earnings vs. Forecast
Volatus Aerospace reported an EPS of -$0.01, which, while negative, shows a slight improvement over previous quarters. The company did not provide specific forecast figures for EPS or revenue, but the market’s positive reaction suggests that investors were encouraged by the company’s strategic direction and cost management improvements.
Market Reaction
The stock price of Volatus Aerospace rose by 7.41% to $0.58 following the earnings announcement, despite the revenue decline. This increase may reflect investor optimism about the company’s strategic initiatives and future growth potential. InvestingPro subscribers have access to 12+ additional exclusive insights about Volatus Aerospace, including detailed valuation metrics and growth forecasts. The stock’s P/E ratio stands at 24.48, suggesting investors are pricing in future growth expectations. The stock remains well below its 52-week high of $0.97, indicating room for further growth if the company achieves its targets.
Outlook & Guidance
Volatus Aerospace aims to achieve EBITDA breakeven by mid-2025, focusing on expanding revenue opportunities in key markets such as Canada, the US, and Africa. Analyst consensus data from InvestingPro shows a generally positive outlook, with price targets ranging from $8.56 to $13.72, suggesting potential upside from current levels. The company’s comprehensive Pro Research Report, available to InvestingPro subscribers, provides detailed analysis of growth prospects and market positioning. The company is scaling commercial deployments of its drone-in-a-box solutions, targeting sectors that prioritize security and autonomy. Future guidance projects EPS of $0.69 for FY2026 and $0.82 for FY2027, with revenue forecasts of $1.9 million and $2.02 million, respectively.
Executive Commentary
CEO Glenn Lynch emphasized the company’s strategic focus, stating, "We’re not just building solutions, we’re building infrastructure that supports our national interest." CFO Abhinav Singhvi added, "We expect to be EBITDA positive by mid this year," highlighting the company’s financial goals. Lynch also noted the company’s unique ability to rapidly deploy and operate new technologies.
Risks and Challenges
- Seasonal weather impacts could affect future performance.
- Geopolitical uncertainties, particularly concerning Chinese drone technologies, may pose operational challenges.
- Increased personal and travel costs could pressure margins.
- Dependence on regulatory approvals may impact growth timelines.
- Market saturation in key sectors could limit expansion opportunities.
Q&A
During the earnings call, analysts focused on the seasonal slowdown impacts and geopolitical challenges. Questions also addressed the monetization model for drone operations and the potential for border surveillance and emergency response applications. Executives clarified these points, emphasizing the company’s strategic initiatives and market opportunities.
Full transcript - Volatus Aerospace Inc (FLT) Q1 2025:
Danielle Gagne, Head of Marketing and Communications, Vlatis Aerospace: Welcome to the Vlatis Aerospace q one twenty twenty five earnings call. I am Danielle Gagne, Head of Marketing and Communications for Valadis Aerospace and the moderator for this call.
Before we get started, just a reminder that we welcome your questions and we’ll be having a Q and A session at the end of the presentation. You’re welcome to submit your questions at any time during the webinar by clicking on the Q and A box at the bottom of the webinar screen and typing in your questions. If we’re unable to answer your question today, we’ll be happy to connect with you after the program. This presentation will be recorded and made available on our investor website within twenty four hours. I would also like to take a moment to point out that certain information set forth in this presentation contains forward looking information, including future oriented financial information and financial outlook, and actual results may differ materially.
The risks, uncertainties and other factors that could influence actual results are described in the presentation, in the press release and in our MD and A filed with Canadian regulators. This presentation also contains non IFRS measures, which are also outlined in the presentation. There is a full disclosure on Page two of this presentation, which we encourage you to read and can be found on Valadis’ investor website at investor.valadisaerospace.com. The company considers the earning call part of its routine disclosure to educate investors on information contained in the quarterly results and related MD and A. If you have any questions, please feel free to contact the Vlattice Aerospace IR team at investorrelationsvlatticeaerospace dot com.
Now that is done, it’s my pleasure to introduce Glenn Lynch, CEO and Abhinav Sigve, CFO of Vlattice Aerospace.
Glenn Lynch, Chief Executive Officer, Vlatis Aerospace: Thanks very much, Danielle. And thank you everybody for joining us here this morning. My name is Glenn Lynch. I’m the Chief Executive Officer for the for Gladys, and I’m joined by Abhinav or Abhinav Singhvi, who’s our Chief Financial Officer. Because we’re only one month since our last investor briefing for our twenty twenty four year end, this will be a relatively short presentation.
Expect the presentation will last about fifteen to twenty minutes with a Q and A session of ten to fifteen minutes thereafter. Should be done in about thirty minutes. We’ll start out with a review of our Q1 numbers,
Abhinav Singhvi, Chief Financial Officer, Vlatis Aerospace: followed by a business update and then into the question period. So with that, I’ll pass the microphone over to Abhi so that he can start with our financial review. Abhi? Thanks, Glenn. So this screen provides an overview of our financial performance for the quarter.
In q one twenty twenty five, we generated $5,700,000 in revenue compared to 6,600,000.0 in q one twenty twenty four. While this represents a year over year decline, it’s important to understand the key drivers behind it. The primary factor was seasonal weather related impacts. As in typical during the winter conditions, inspection activities slowed significantly due to cold temperatures, snow covered grounds, and challenging wind conditions. In addition, geopolitical uncertainties, particularly tariff headwinds, also affected our operations.
These factors contributed to delay in certain sales, shifting revenue recognition into late periods. Looking ahead, we are encouraged by current revenue opportunities, particularly through our merger with Volaris. We are seeing strong sales pipeline within DDC. For context, DDC generated 103,000 in revenue in q one twenty twenty four, and we are actively working to expand this segment to drive both top line growth, not just in Canada, but US and Africa, and drive improved margin across group by enabling bVloss through our OCC operations command center. We remain optimistic and expect much smoother and stronger performance in q two.
The impact on sales also directly affected our gross profit. Despite the revenue decline, we continue to prioritize high margin long term contracts and approach the alliance with the strategy goals. As a result, we achieved a 5% year year over year improvement in our gross margin equipment gross margin compared to q one. Our services gross margin remained strong and stable at 42%. Overall, our blended gross margin for the quarter was 32%, in line with our expectation for a seasonally slow quarter.
While the loss from operation appeared to have increased, I would like to draw your attention to the pro form a loss, which has actually improved a decline from $4,400,000 in q one twenty twenty four to $3,360,000 in q one twenty twenty five. A key driver of this improvement is in the deduction of post merger cost, which were down by $1,780,000 in q one alone. On an annualized basis, we expect this number to increase further as we continue to realize operational efficiencies and synergies. Looking at our operating expense, we’ll notice meaningful improvement in our SG and A. Marketing expense reduced by, like, 54%.
IT and tech costs declined by 5%, driven by active vendor management. Office costs were down 25%. Further synergy is expected as we go forward. Personal costs increased by 11% as we continue to invest in key talent and capacity to support future growth. R and D spending remains focused on commercialization efforts going forward.
Sales and travel increased by 12%, aligned with our push to expand pipeline and customer engagement, and external partner costs remain consistent. Turning to our normalized EBITDA. When comparing q one twenty five to ’24, we achieved a 30% improvement, reflecting strong operational discipline and margin focus. On a pro form a basis, the improvement is even more significant, 70% year on year, demonstrating an impact of our efficiency initiatives and post merger integration efforts. In addition, we generated $1,450,000 in cash from operating activities during the quarter, a strong signal of our financial health and operational execution.
Moving on the next slide, our our highlights is our product mix and gross profit trend. Starting with the product mix on the left, q one twenty five, our mix was 44% equipment and 56% services. This is a meaningful shift compared to our previous quarter, especially q three and q four, where equipment contribution were lower. The rebound in equipment is largely as a result of improved financial flexibility. In q one last year, you’ll see consistent trend, which is 42% in equipment and 58% in services.
We expect a similar trend on a go forward basis as well as we ramp up our equipment segment of the business. On the right side, we see a gross profit trend. Our gross profit for q one was $1,830,000 with a 32% gross margin compared to 2,230,000.00 and 34 percent gross margin in q one twenty four. The modest dip is in line with the forecast for a slower seasonal quarter, but what’s encouraging is the underlying margin performance, especially given the product mix shift and improved gross margin execution. In summary, the diversification and normalization of the revenue mix supported by strong financial footing is positioning us for a higher margin expansion in the coming quarters.
With this, I will hand it back to Glenn.
Glenn Lynch, Chief Executive Officer, Vlatis Aerospace: Thanks, Abhi. So I’m going to focus specifically on some of our recent announcements. I’m pleased to share that Veladis has achieved a significant milestone with the expansion of our beyond visual line of sight or what we call BB loss operations right across Canada. We now hold general BB loss approvals nationwide for daytime operations in uncontrolled airspace based on international recognized methodology. These approvals apply to multiple aircraft types in a variety of mission scenarios giving us significant flexibility.
In addition to our previously announced authorization for nighttime beyond visual line of sight operations, this allows us to fly at altitudes up to 400 feet in uncontrolled airspace and outside of aerodrome environments. Of particular importance is our approval to operate in what’s typically considered or known as atypical airspace. This is described as within 100 feet vertically or above and 200 feet horizontally beside vertical structures like towers, buildings and power line, power line corridors. We also have approvals to fly in restricted airspace, actually dovetails into wildfire and in northern domestic airspace basically in the Arctic region, some of Canada’s most remote and underserved areas. These new BB loss authorities are a game changer for our operations control center.
With nationwide approvals for day and night beyond visual line of sight operations, including in complex and atypical airspace, we can now scale remote drone operations from a single centralized hub. This means fewer boots on the ground and faster deployment, lower operating costs for our customers and it unlocks commercial applications like infrastructure inspections, border surveillance, cargo delivery and environmental monitoring, all of them at scale. In short, the approvals allow us to commercialize our operations control center as a service offering fully remote compliant drone operations anywhere in Canada with safety and efficiency and regulatory backing required by our clients. One of the most exciting opportunities unlocked by our regulatory approvals is the deployment of nested drone in a box solution. These are fully automated systems that can launch, land, recharge and transmit data from a remote location with no human intervention on-site.
When combined with our operations control center, these systems become a powerful force multiplier. We’re now able to deploy and manage entire fleets of drones across the country remotely from our single hub with full compliance for beyond visual line of sight operations both day and night and challenging airspace near vertical structures and corridors and in Canada’s Far North. This makes a drone in the box ideal for applications like infrastructure inspections, industrial site monitoring, emergency response support and things like persistent surveillance for utilities, border zones and more. The list of applications even in oil and gas goes on. Our focus moving forward is to scale these deployments commercially, offering our customers turnkey services for remote operations that’s safe, efficient and backed by our national authority and control infrastructure.
This is where automation meets scale and where the OCC and drone in a box converge to drive real world revenues. Our commercialization strategy is tightly aligned with both current government priorities and the evolving geopolitical landscape. Today, we’re focused on serving sectors where security, resilience and autonomy are top of mind. Some areas, of for example, are critical infrastructure where we’re supporting utilities, energy and transportation with remote monitoring and inspections at scale. Mining is another one, where we’re enhancing safety, operational efficiency or environmental compliance.
These are especially important in remote and hard to access locations. Public safety and emergency response where we enable faster situational awareness through drone as a first responder and overwatch capabilities. Remote cargo delivery where we improve healthcare and remote supply logistics in rural and indigenous communities and of course, and environmental surveillance, where we’re addressing national security and sovereignty concerns along our borders. As our government looks to strengthen domestic capabilities, our Canadian owned services, technology and regulatory leadership uniquely position us as a trusted partner. We’re not just building solutions, we’re building infrastructure that supports our national interest.
With that, I’m happy to open it up and take some questions. Danielle?
Danielle Gagne, Head of Marketing and Communications, Vlatis Aerospace: We have a number of questions already in our inbox, but if anyone wants to continue to ask those questions, just a reminder, the Q and A box is at the bottom of the screen. So we have a lot of questions and kind of asking the same thing. Can you discuss your progress towards positive EBITDA? And what is it required to take the company towards a profitable position?
Glenn Lynch, Chief Executive Officer, Vlatis Aerospace: Abi, do you wanna take that one?
Abhinav Singhvi, Chief Financial Officer, Vlatis Aerospace: Yes, sir. I can take that one. So as we committed that, we in the last call as well, we made a commitment that, you know, we when we did the merger that q four will be the period where we’d be close to breakeven. We did negative $200,000 in EBITDA range. Q one has always been a seasonal quarter, and and the seasonality the impact of seasonality always differs in q one, so the EBITDA dips.
But q two and going forward, the focus is to breakeven as early as q two itself and moving forward to be positive. We have line on-site on our revenues opportunities, not just pipeline, but the contracts that we are confident that by mid this year itself will be EBITDA positive.
Danielle Gagne, Head of Marketing and Communications, Vlatis Aerospace: Alright. Good. So Scott here says congratulations on your accomplishments. What is not clear to me is how typical seasonal slowdowns could explain a difference in sales between q one twenty twenty five and 2024. Can can you speak a little bit more to that?
Abhinav Singhvi, Chief Financial Officer, Vlatis Aerospace: Sure. Yes. Go ahead, Ken.
Glenn Lynch, Chief Executive Officer, Vlatis Aerospace: So what I’d say, Scott, is a couple of things there. There’s it was obviously a very interesting Q1. The entire world was upside down. And we found, for example, during Q1 and early Q2 is typically our RFQ or RFP season where a lot of the power utilities energy companies are putting out their request for quotes for the current season. And a lot of that has been delayed this year just because people were busy figuring out how the current tariffs and geopolitical situation was going to affect us.
The other thing that happens is it’s based on numbers of days that are flyable. So when we get extreme cold, I’ll use the example of extreme cold days, where operating temperatures in areas like Western Canada, for example, go below the operating temperatures of a helicopter. Those helicopter missions for pipeline surveillance, they don’t go away, but they do get slid to the right until the weather and temperatures become more favorable. The other thing that happens is it’s just a little bit the business mix. If we’re doing specific types of inspections where ground contour is necessary, the challenge is when everything is snow covered, it’s harder to deal with a lot of the various sensor data that’s accumulated.
Everything from thermal inspections and whatnot. Well, inspections for buildings can be very good during this period. A lot of other applications are more challenging just because they’re snow covered. So as the snow starts to clear, as the temperatures warm up, all of those things start to accelerate. Plus, again, there’s been delays where we would have expected to have awards of some of our seasonal business.
And when I say awards, oftentimes that’s the work scopes. People have simply been busy figuring out how current geopolitical changes are actually affecting their own business. Everybody’s workloads gone up. So it’s just moved things a little bit to the right. That being said, we’re still quite excited about the pipeline.
I think it’s been more sliding to the right than it has been anything else.
Danielle Gagne, Head of Marketing and Communications, Vlatis Aerospace: Can you update us on how you are progressing with your new partnerships that you’ve updated us on in the previous webinars?
Glenn Lynch, Chief Executive Officer, Vlatis Aerospace: So those are progressing quite well. I mean, the reality is, I mean, we just attended the Cansack event in Ottawa, one of the larger security, defense and security shows with our partners at Konzberg. So we’re starting to do an awful lot of work now where we’re collaborating on opportunities and marketing events and so on. To be frank, some of the real commercialization benefits, bless you, some of the real commercialization benefits actually come with the regulatory approvals, which have just recently been announced. So I think, seeing the revenue generating opportunities from those, we’ll see those in subsequent quarters looking forward.
Danielle Gagne, Head of Marketing and Communications, Vlatis Aerospace: We have an attendee asking, what is the range that each nesting station could potentially cover?
Glenn Lynch, Chief Executive Officer, Vlatis Aerospace: So that’s a very good question. It’s one of the reasons that we have multiple products. We have one of our nesting stations is our own design. It has a specific capability. It’s been designed to operate off grid in a specific area.
But we also are technology agnostic. So we have a number of other solutions. For example, we have a large nesting station with our partners at Ondus and then that nesting station is capable of operating almost continuously around the clock. It does robotic battery changes, it does robotic payload changes, can have as many as 11 batteries and nine payloads in its library that can be swapped out from a distance. Now it’s all based on cost and and specific mission requirements, But they would range anywhere from, I would say, 20 kilometers across, so 10 kilometers either side of the nesting station out to we have one system that ’s capable of flying closer to 30 kilometers on either side of the nesting station.
So it really depends on what the requirements are for that specific opportunity and which system we’re deploying.
Danielle Gagne, Head of Marketing and Communications, Vlatis Aerospace: Can you discuss the near term headwinds around Chinese drones in The U. S? And where and under what conditions does this become a tailwind?
Glenn Lynch, Chief Executive Officer, Vlatis Aerospace: Well, actually, it’s very interesting. The entire geopolitical situation creates a bit of both. So in The United States, it’s been, you know, it’s obviously had a very severe impact on the Chinese drone technologies. They’ve effectively been banned from The United States or most parts of U. S.
Contracting and the tariffs have made it almost impossible now to look at those technologies in The U. S. That’s created a short term problem because the supply chain is underdeveloped in The United States. That being said, American ingenuity, I suspect that will be resolved very quickly. So in The U.
S, we’re very much focused in the use of U. S. Technologies flown by our U. S. Workers in support of U.
S. Based contracts. In places like Canada and other parts of the world, it’s less of a concern. I think that Chinese technologies start to be a concern when we’re aligning with U. S.
Interests. But basically, you look at most of our partnerships are non Chinese partnerships. So the Chinese technologies are still being deployed. They’re very effective. They’re super cost effective in the fields where they are being deployed in other parts of the world and we continue to do that.
Now the geopolitical situation is actually creating some tailwinds now. Canada, I guess I probably should have added this to my comments on Q1. Canada was also somewhat impaired by our focus on border surveillance and a lot of the things that were affected by the government being parod. Now that our government is in place and functional after the twenty seventh of last month, we expect that we’ll start seeing an acceleration in spending and in the programs such as border surveillance, the development of mining and critical minerals and energy or trade corridors and energy infrastructure. All of those create significant tailwinds or the potential for significant tailwinds, as does the drive towards more domestic capacity and capability.
Danielle Gagne, Head of Marketing and Communications, Vlatis Aerospace: How is the active fire seasoning in Western Canada impacting the business? Have you seen any impact there yet?
Glenn Lynch, Chief Executive Officer, Vlatis Aerospace: In the immediate past, we have not. I would expect that would happen going forward. Of course, right now they’re dealing with severe fire situation. A lot of what Vlatis does is part of that cleanup effort after the fact. So our services are targeted to hotspot detection, where basically we go out after an area is somewhat extinguished or extinguished looking for areas or hotspots that may need a cleanup action after the fact.
So we would expect to see some activity from that going forward.
Danielle Gagne, Head of Marketing and Communications, Vlatis Aerospace: So we talked a lot about our operations control center. Can you talk a little bit about that model and how is it scalable and can it support support international expansion?
Glenn Lynch, Chief Executive Officer, Vlatis Aerospace: For sure. So if you think about if you think about the challenge when you deploy a drone today. So we have people, for example, in the field that started our contract in Connecticut doing inspections of power lines. They started, I think, at the February or early March. And basically for those applications, we actually deploy a truck with a couple of people and a drone on board or a couple of drones on board to go out and fly these aircraft on a local basis.
So that means that for every drone that’s flying, we end up needing one or two people in the field and the support infrastructure. The advantage to having a remote operation center and the approval to use it in areas like power lines. Remember that the power structures create that atypical airspace that allows us to fly. From so from a practical standpoint, we’re now able to change our methodology and operate numerous drones with a with a single operator in the field and and our operators out of the remote operations control center. So it allows us to fly longer range, more drones with less people out in the field that significantly improves our margins and our scalability.
Danielle Gagne, Head of Marketing and Communications, Vlatis Aerospace: How differentiated are your drone in a box solutions versus others in the market that you’re seeing?
Glenn Lynch, Chief Executive Officer, Vlatis Aerospace: That’s a great question. What really differentiates us remember we’re drone agnostic or technology agnostic company. So truthfully, there are other people that can sell the same technologies that we can. What makes us a little bit unique is that we can deploy these technologies and operate them very, very quickly, in some cases right out of the box. If we’re talking in areas that are remote and outside controlled airspace and away from airports like mines for example, we can drop a nesting station in position and be operational the same day.
So that’s where our real competitive advantage comes from. And again, back to the remote operation center for the operators that are in that station, we can operate many drones with a single operator that are already in existence in that station. So it becomes very, very scalable. We don’t need to set up infrastructure at each location.
Danielle Gagne, Head of Marketing and Communications, Vlatis Aerospace: And that’s because the operations control center. Is that correct?
Glenn Lynch, Chief Executive Officer, Vlatis Aerospace: Correct.
Danielle Gagne, Head of Marketing and Communications, Vlatis Aerospace: Okay. You explain how the Lattice supports fully autonomous beyond visual line of sight without visual observers?
Glenn Lynch, Chief Executive Officer, Vlatis Aerospace: So in some areas, they’re not required. And in other areas, use ground based, detect and avoid. And in some cases, in flight detect and avoid, which will, we actually have, some active testing going on in our in our test site North Of Toronto right now. But for example, if I just use one example of the the beyond visual line of sight operation we have over the Milton Oakville area, we use a ground based radar for to detect uncooperative or unknown aircraft that may be flying through that area.
Danielle Gagne, Head of Marketing and Communications, Vlatis Aerospace: And what’s your monetization model for OCC and Jonah in a Box? What’s the CapEx subscription or managed service? Abi, I think this one’s for you.
Abhinav Singhvi, Chief Financial Officer, Vlatis Aerospace: So it’s a good question. So there so I would what we have done is premerger, DDC’s entire business model was company owned, company operated. What it meant was, the doors will be operated by the organization, and and it’s basically purchased a service contract. It was CapEx heavy. It was working capital heavy.
What we did is we had diversified the model, and the focus now is on customer owned company operated. So, basically, we get a sale on day one where we actually sell the high asset to the customer, and then we start driving revenue by recurring contracts, which is our ARR and MRR, and then additional revenue that comes in with maintenance and operations. So it is not CapEx heavy because they pass on the CapEx on the customer. But and that’s how and then we start driving the margins just by managing the contracts and operating for the customer.
Danielle Gagne, Head of Marketing and Communications, Vlatis Aerospace: And to follow-up on that, how capital intensive is scaling the door in the box OCC model?
Abhinav Singhvi, Chief Financial Officer, Vlatis Aerospace: It is not because the CapEx noise with the customer and not with the company.
Glenn Lynch, Chief Executive Officer, Vlatis Aerospace: I would add something to that Danielle. Basically, my background for the last forty years has been managing aircraft for corporations and high net worth individuals. It’s very much the same opportunity. In some cases, we may deploy assets that are owned by us on a subscription model basis. In other cases, especially larger scale deployments, we would sell the equipment to the third party and then ultimately manage it and provide the managed services on their behalf.
Danielle Gagne, Head of Marketing and Communications, Vlatis Aerospace: I have an attendee asking specifically about the drone up partnership and how it may unlock potential urban deliveries. Can you speak to that?
Glenn Lynch, Chief Executive Officer, Vlatis Aerospace: It definitely. So drone up, there’s two parts to the DroneUp relationship. First of all, their technologies. They’ve got some extraordinary technologies that have been tested and true and really are in that somewhat B2C also B2B environment. And again, we think there’ll be some opportunities that come from that with given our current beyond visual line of sight authority.
The other thing that it does is it allows us to leverage the relationship with their regulatory approvals. When you start operating large scale commercial deliveries in a different country, you need domestic partners to meet the commercial requirements in Canada to meet the requirements of Canadian Transportation Agency. In The U. S, it’s the Department of Transport, which is part of the, IRS of requirements for having domestic controlled services. So that’s where those services will benefit.
Obviously, that announcement with the drone up was extremely important to us, but it also got set back a little bit in timing with just because the geopolitical changes that have happened and everybody figuring out where the dust was gonna settle.
Danielle Gagne, Head of Marketing and Communications, Vlatis Aerospace: So are there any key regulatory milestones or hurdles ahead for border deployment?
Glenn Lynch, Chief Executive Officer, Vlatis Aerospace: It’s too early to tell. Obviously, there’s a real challenge on the border surveillance side. One of the concerns obviously with US deportations is that we now have illegal immigration or I’ll call it irregular immigration. It’s not to us to determine whether it’s illegal or not. But with people crossing the border northbound and and of course that makes the that makes border security or at least the intelligence along those borders to be particularly important.
We’ve got key ministers in place and we’re very, very well connected particularly through our lobbyist in Ottawa right now. But it’s too early to say how quickly this could move because the government literally is kind of a week in its chair and obviously a lot of things while they’re getting organized.
Danielle Gagne, Head of Marketing and Communications, Vlatis Aerospace: This is our last question because we’re at the top of the hour. Are there any near term catalysts, contracts, certifications, partnerships that could materially shift the outlook that you’ve given for 2025?
Glenn Lynch, Chief Executive Officer, Vlatis Aerospace: So that’d be that trick question like a bear trap step into. The truth of the matter is we obviously can’t comment too much on that other than to say that we’ve disclosed a very, very substantial pipeline and we are working our tails off to secure as much of that as possible. So we’re excited about the year ahead is about all I can say on that note.
Danielle Gagne, Head of Marketing and Communications, Vlatis Aerospace: Excellent. I want to thank everyone for joining us today. As we are at the end of our session, I just want to remind everyone that the presentation recording will be available on our investor site within twenty four hours at investor.latticeaerospace.com. And if you have any additional questions, please reach out to us at investorrelations@vladysaerospace.com. Thank you again, and have a great
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.