Closed transformational merger of equals transaction with Drone Delivery Canada (OTC:)
Generated positive cash from operating activities in the quarter
Achieved blended gross margin of 34%
44% growth in services revenue
Subsequent to quarter end, closed institutionally led $15M financing with IQ and EDC and equity financing of $2.77M, strengthening balance sheet
Continued efforts to realize cost and operational synergies post-merger
Volatus will host webinar and live Q&A on Friday, Nov 29, 2024 at 8 am ET
TORONTO, ON / ACCESSWIRE / November 28, 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:
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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.
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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.
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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.
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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.
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The Company has realized annualized cost synergies of…
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