To be respectful of everybody's time, I think we will get started. Greetings and welcome to the Draganfly 2023 Q2 earnings call. My name is Rolly Bustos, I'm Internal Investor Relations here at Draganfly. We appreciate you all for joining us today. We will start, as usual, with our CEO and President, Cameron Chell, discussing the second quarter operational highlights. From there, our CFO, Paul Sun, will discuss the financials, and we will conclude with Lead Director, Scott Larson, facilitating the Q&A portion. As always, you're welcome to reach out to me at any time at investor.relations@draganfly.com. Lastly, I want to remind everyone that this presentation may include forward-looking information and statements. These statements are not guarantees of future performance, and undue reliance should not be placed on them. Any future events or financial results may differ from what might be discussed here.
The full forward-looking disclaimer can be found on page two of this presentation, and I'd be pleased to send that along to anybody upon request. Cam, please go ahead.
Great. Thanks, everybody. Appreciate everybody being here today and taking the time. First and foremost, I'd like to thank our employees and team members who have done an amazing job this last quarter taking Draganfly to the next level with all of our customers. Second of all, I'd really like to thank our customers and clients who have taken the time to believe in Draganfly and allow us to help them in their endeavors. Foremost, I'd like to thank our shareholders for your trust in what we're building here. I'm just gonna do a screen share here to run through... Oops, there we go. To run through our highlights for the last quarter.
A couple things noteworthy of mention is that our revenue for the quarter was $1.899 million, so just shy of $1.9 million. That's $1.5 million in product revenue and $317,000 in services revenue for the quarter. That's slightly down on the quarter on the services side, primarily due to resourcing as it relates to some additional build-outs that we were doing with our facilities. Certainly looking forward to our Q3 and Q4 results as our second plant comes on stream, or our, our new plant in Saskatoon comes on stream here at the end of August.
Thanks to all of our shareholders for your trust and belief and patience in allowing us to grow to this point where we're able to ramp up production to meet demand. We had a gross profit of $467,000, so that's down slightly as a %, again, because we did a little bit less services and solutions revenue this quarter, which we expect to see quite significantly different in the coming quarters. We have a cash balance at the end of the quarter of $6.7 million. We're on budget and feeling quite confident about our performance in terms of what we've done.
This is where we projected to be, and fortunately, we're seeing the market react in a manner in terms of demand, and us meeting that demand in a responsible manner, as we had expected. Just a quick overview in terms of the drone industry and some of the changes and, and evolutions that we are seeing in the market today. Let me just hide that. Okay. First of all, you know, what, a big, big driver in this industry is the regulatory shift or evolution, if you will. Again, we're seeing a stronger and stronger move towards North American manufacturing, North American security, and North American solutions for a number of reasons, not just security, but also quality, quality control, supply chain, et cetera, et cetera.
Where we're now at with Draganfly is that we have a manufacturer with two very well strategically positioned plants in North America. A brand-new plant coming online at the end of August to join our new facility that became available at June. What we did in the last quarter is basically we brought on our June, our facility in Burnaby, and then we're able to take down the Saskatoon facility, moving into our brand-new building, our brand-new facility, expanded capabilities, while our Burnaby facility was able to maintain where things are at.
As Saskatoon comes up on stream, basically, you know, significantly increasing well more than doubling or well beyond that, our capacity and capabilities, as well as our additional features that we can now build into our products, we should see some great scaling happening going forward. Really important that these are North American managed, controlled, all the way from cyber right through to the actual manufacturing capabilities and processes that we've got. Really, really important to the customer base that we have. We've also seen as a key industry driver in this last quarter accelerate, the FAA and Transport Canada streamlining regulatory environments for drone operations. It was about three years ago that the FAA, in particular, came out with new regulations around BVLOS.
Listen, there's a lot of regulations within the drone industry, but BVLOS or SFOC in Canada, which is Certificate of Advanced Operations, are really the key, key regulations that everything else kind of builds around. We saw significant streamlining, both from the FAA and Transport Canada in this regard. I think these are probably more significant than even the initial BVLOS type regulation that was that was introduced about three years ago, which really started the industry rolling it on total merit. So in that timeframe alone, we've already been authorized, or we've already been granted two SFOC for beyond visual line of sight and advanced air operations, which we'll talk a little bit more later on.
Really great to be able to see these things be able to be granted inside of a quarter as opposed to, you know, at times where they can take, you know, six or nine months in the past. Advanced technologies are creating incredibly efficient business models, and we're starting to see more and more of this. The artificial intelligence and data analytics capabilities that we have, as well as our data solutions and storage facilities are really, really starting to pay off in terms of inbound and our ability to differentiate between what we do in terms of just, you know, producing airframes, but actually providing total solutions. Our Vital Intelligence product line has really been an example of this, in particular in terms of artificial intelligence and machine vision.
The adaptation of new markets by verticals, utilizing different drone types. You know, I think it's worthy to note that our medical supply delivery drones, our first responder drones, and a great partnership that we had that came to fruition over this last quarter after a year of hard work with PromoDrone in terms of outdoor advertising with drones, which has really been effective. Also a dual use for public safety and emergency management. Drone adoption in the defense industries. It's just staggering that basically now everything from 5,000 feet down in terms of air dominance is all drone. It's all small drone. It's not even large Predator or Reaper-type drone. It's all small UAS.
We're very well positioned there in terms of our product service lines and our experience. We've got active operations in Ukraine. We're doing demining work, surveillance work, and training as well, which is really putting us at the forefront on many, many areas in terms of, if you guys know how to train and fly in these areas, in these environments, you know, the experience that we get that then translates back into our product engineering and design and production, again, is really starting to bear fruit for us in our pipeline. I wanna talk a little bit about our products and capabilities, 'cause I do think this is a differentiator for us in the market in a very meaningful way. On the bottom left, you'll basically see toy drones, right?
Bottom left corner. Those are consumer, manually operated, fly-by-stick-type drones. You know, up at the far top right, those would be, you know, fully automated military, artificial intelligence-based, type drones. You can see that all of the work that we do tends to skew up into that area. You know, the drone industry, in many respects, is either about, you know, saving time, money, or lives, one of those three things. And in order to do that, you need industrial quality, automated, artificial intelligence capabilities. With the 25 years of experience and bench strength that we have, we're very well positioned to be able to, to, to evolve with this market.
This is the market that will really see the inflection point happening over the course of the next year to make this industry truly the multi-billion dollar industry that, that it has promised to be. What you'll see there is in yellow, those are the, the systems that Draganfly employees have worked on. The actual blue dots are systems that we've done contract engineering for with the primes, the defense contractors. Then the black dots, those are, those are actual drones that, and systems that we manufacture. You'll, you'll see more and more of, of those black dots showing up over in that top right corner.
We, we have the distinct opportunity and advantage to be able to be building our product lines, which I'm really excited about what's coming out next quarter, around customer demand, and that's, that's a big difference for us. We're, we're not building things on spec, and so we've been able to scale our operations, our production facilities, and our product market fit exactly where the market needs to needs to hit. It's why we've been in business for 25 years, and why previous to this, you know, this last 3 years, where there's been a number of new drone entrants come into the market, every other North American drone company's gone out of business. We've never tried to scale in the past, and this is the first time that we're actually scaling up because we have...
We've seen the demand, we've got the capabilities, and there's actually a real market that's developing here. It's, it's just an incredibly fruitful time to be in this space and positioned where we're at, so we're very grateful for that. Talking specifically about the highlights of some of the products right now, on the far left side, you've heard us talk probably quite a bit about the heavy-lift drone, which is a multirotor VTOL, capable of carrying 30 kg or over 70 lbs. Th-this has got unbelievable traction in the market right now. We have tooled up to be able to start to put this into production. We have been taking pre-orders on it.
Then in the bottom, left corner there, the Commander 3 XL, this has really become, you know, our signature drone. It's the Swiss Army knife of drones. It's got dozens and dozens and dozens of payloads that fit on it from different manufacturers that we've already integrated with it. I'll talk a little bit more about some of the applications on it in, in just a second here. I did wanna highlight our LiDAR system as well. Again, this is something that, you know, we don't just make airframes, we make total solutions. This is a LiDAR system that previously, given its weight and power, you know, needed to fly on, on a helicopter. So, this is now a system that can fly actually all the way down to our 3 XL drone.
The cost savings in using this LiDAR system is incredible. The advantages it gives us over other organizations that are trying to fly LiDAR in terms of our services, is really distinct and important to us because it enables us to capture data and provide data analytics and storage back for our customers in a meaningful way. While we sell this particular product out into the market, the real differentiator for us here is this is a service differentiator, where we can do certain missions that other organizations just simply can't do. We're gonna continue to work on those types of solutions. We're very focused on what are the strategic differentiators for Draganfly. Being able to do what we do end-to-end gives us that capability.
At the end of the day, you know, the majority of the drone industry is about data, even though obviously things like delivery are incredibly important and a significant piece of it. The, the data in this industry really, you know, will probably account for about 80% of the value that's created. We're gonna continue to skew towards data. On the delivery side, I think it's important to note that we just introduced two new payloads that we have engineered for the Commander 3 XL. Actually, these will work on the, the heavy lift as, as well. One is the drop-down winch system. The drop-down winch system has some incredible engineering capabilities, 30 m of length, 5 kg of payload.
It does have a precision camera on it, so you can pinpoint exactly where you're dropping down to, account for wind, et cetera, et cetera. You can fly with this thing deployed as well. Then right below that, you'll see our quick-release box. The boxes that we have tended to focus on in the past, and we're seeing great demand are for have been in the medical delivery side of it. Our differentiator there is that they're thermal managed, and so we can deliver things like pharmaceuticals and vaccines and organs and blood, if and such. Incredibly important to our customer base, and the customer base that we're catering to. This particular box is actually can winch down.
It can also open on the front. It can also open on the bottom from an altitude. It has bay doors on it, and so it's got a whole range of different multiple options. If you get into weather conditions, or into tight spots where you can't get landed or, or emergency situations or just typical delivery, you've got multiple options with precision, surveillance and aiming camera, on the base of this actual unit. Coming right down to the middle there, the Starling X.2 drone. This is a collaboration between PromoDrone, and Jamar, the CEO, and his team over there have just done an incredible job with this product.
The 3 XL was, was made to be able to, you know, carry this payload, with the incredible battery capabilities and lift capabilities. You know, originally this was designed as an advertising platform, but there's been, you know, tremendous demand in emergency management and services, and I think that'll probably be their biggest market. It fits in really well with what we've done. It's been a great collaboration, and, and PromoDrone has been a fantastic customer for us. I know they're taking pre-orders on it already. They've got very strong demand, and of course, that translates very well to us selling, more and more of this equipment, not just the 3 XL. We're very grateful to PromoDrone and the work that they've allowed us to do with them.
Some operational highlights, DEF-C, who is a very strong partner of ours over in Ukraine. We've expanded our joint venture with our joint UAV operations, excuse me, with them. They are deeply involved in both the civil and the defense sectors. We now have capabilities for increased inventory and repair and logistics within the country, which is incredibly important. It's one thing to be able to deliver drones and, and some sort of drone capability into the country, but when you look at when larger orders are being adhered to or, or asked for, the, the, the logistics now are really important. You know, not just the logistics, but the training.
You know, the amount of drone activity that's happened over in theater there, has now started to lead to a maturing of standard operating procedures. Then in the command and control structure, you actually know what drones you have, what capabilities they have. Up until this point, it's been a hodgepodge of just whatever anybody can get into theater, which makes it very difficult to do plan, strategy and a number of tactics.
What we see now is a maturing of this, and that, and that maturing really is, is skewing the purchasing decisions and the tactical decisions to organizations that can provide a consistent, not just supply, but a consistent product that fits within a standard operating procedure that we now had the great fortune of being a part of, helping design, which we'll talk a little bit more about here shortly. At the World Police and Fire Games, we were able to unveil our precision delivery system, the winching system and the box.
We're a proud sponsor of the World Police and Fire Games, and we're able to carry the closing ceremony flag and turn that over to Birmingham, Alabama, which the next World Police and Fire Games will be at. We did receive a special flight operation for advanced operations and delivery over people in order to do that particular mission. It was a big success and really helped demonstrate to a number of our customers some of the additional capabilities that our winching system and delivery systems do have. So Transport Canada did also grant us another SFOC for beyond visual line of sight operations above 400 ft for wildfire suppression operations. We'll talk more about that in the coming quarter.
That has been a big area of growth for the drone industry in particular, and we're very proud to be a part of that, and that's all we'll say at that about that at this point. The other thing I did wanna mention that isn't in the operational highlight, but is in our press releases, is the deal that we have done with HEAL-Corp and the Ukrainian National Academy of Internal Affairs. The MOI is the organization that is much larger than the MOD, as a matter of fact, in the Ukraine. The MOI oversees everything from the National Guard, certain aspects of presidential guard, special forces, emergency services, police, border patrol, et cetera, et cetera.
We're training up to 1,000 new pilots per year with them on Draganfly equipment and Draganfly payloads. The big- so obviously, great exposure for Draganfly and the whole procurement process. But really, what's important there is, listen, they're the best drone pilots in the world right now are in Ukraine. We're not gonna be teaching anybody how to fly better stick or operations over there. But what is important about this is, it's a formalized system to develop curriculum around standard operating procedures, which gives us incredible insight into how to design our product for that particular theater and/or other theaters that are similar to it. We've already seen this type of experience bode very well for us in our pipeline as it relates to incoming sales.
Nobody, again, wants to be putting equipment on scale into any type of theater unless they know the capabilities, and there's a standard operating procedure for all of the assets they've got in that particular environment, and they know how they can deploy them, repair them, and what operational capabilities they have. These are a lot of the things that, you know, when you think about the drone industry, you think, "Oh, who can lift more? Who can have longer battery life?" Or those types of things. It's really more about how do you integrate operationally so that you can have successful data collection or delivery. Again, super, super proud of our, our teams, in particular in Ukraine, who have been going above and beyond in order to serve their cause.
I touched on this slightly already, but, obviously, our production capacity, which has been next to sales... well, in fact, in front of sales, this has been our focus. As mentioned before, we brought Burnaby on in June. We slowed down Saskatoon. We have a brand-new facility that's very close to being operational. As that becomes operational, we're gonna be able to meet demand, and I think we're looking for some, some pretty nice results in the coming quarters due to that.
Like I said, we do have very good revenue visibility, at this point, and so, you know, tough strategic decision not to push the numbers, harder sooner, but very, very, pleased what that means in terms of, how we'll be able to scale. What I'd like to do now is, turn it over to Paul Sun, our CFO, to review the financial results. Paul?
Yeah. Thanks, Cam. Thanks, everyone, for joining. We'll look at Q2 here as a year-over-year comparison on slide nine here. Revenue for the second quarter was down 19.8% to $1.9 million, from the $2.37 million in the second quarter of last year. Second quarter revenue, as Cam mentioned at the outset, comprised of $1.58 million from product sales, with the balance coming from drone services. The reduction is due primarily to lower provision of services this quarter versus a year ago. Also, we touched on gross profit, $467,000. It would've otherwise been $590,000, excluding a one-time non-cash write-down of inventory. Gross margin, as a percentage of revenue, would have been 31.1%, down 11.7% from Q2 of last year.
Again, this was a result of more sales coming from products that generally tend to have a lower margin than that of services. Total comprehensive loss for the quarter, $6.9 million, compared to a comprehensive income of $640,000 in the same quarter of last year. This quarter includes, as mentioned, a non-cash charge of a write-down of inventory of about $122,000, and otherwise would be comprehensive loss of $6.76 million. However, in the same quarter of last year, the income had a gain in fair value of derivative liability of $6.1 million, so it would otherwise have been a comprehensive loss of $5.45 million.
The year-over-year increase in loss is primarily due to the decreased gross profit that we talked about and slightly higher SG&A. On slide 10, we look at the quarter again, but since we just went through the year-over-year changes for the quarter, here, we'll focus on the quarter-over-quarter changes between this quarter, meaning Q2, and that of Q1 of 2023. Revenue for Q2 increased by 19% to $1.9 million, compared to the $1.6 million that was done in Q1 of this year, due to both higher product and sales and services. Our gross margin percentage for Q2, again, was 24.6%, due to that inventory write-down that we talked about, and otherwise would have been 31.1% compared to 27.7% in Q1 of this year.
Heads on an adjusted basis, gross margin would have been up 3.4% quarter-over-quarter, and this increase is due to the sales mix of the products sold. Total comprehensive loss for Q2, again, was $6.9 million. This compares to a comprehensive loss of $7.1 million in Q1 of this year. Again, recall that we had the non-cash write-down of the inventory. If that was X'd out, it would be $6.76 million, while in Q1, there was a small non-cash gain of a fair value of derivative liability of $57,000 and a non-cash write-down of inventory of $77,000. Excluding that, Q1's 2023 loss would have been pretty much unchanged at $7.1 million.
Our loss this quarter was actually a bit better, primarily due to higher revenues quarter-over-quarter. On the next slide, slide 11, you can see our total assets decreased from $14.6 million at the end of last year to $12.7 million, which is just largely due to the use of cash. Working capital surplus at the end of this quarter was $7.5 million versus $10.1 million at the end of 2022, again, primarily for the same reason. We do continue to have minimal debt, and our balance sheet shows cash at the end of June at $6.7 million, and we compare that to $7.8 million at the end of last year, December 31, 2022.
With that, I'll pass it back to you, Cam.
Thanks so much, Paul. Appreciate it. I think we've got a number of questions that, that either came in ahead of time or have been popping up. Maybe, Scott, I will, turn it over to you.
Yeah, thanks. We do have a number of questions that keep coming in. I have had a few questions and emails, just kind of come in over the course of the last few minutes as well. I'll, I'll kind of organize these as best as I can, and as more questions come in, feel free to send them through. Cam, talk a little bit about incremental sales demand, where that's coming from with regards to geography as well as sector? Are there new sectors opening up? You talked a little about, you know, high-level product versus services, but maybe get a little more granular, if you can, with regards to geography and overall sectors.
Yeah. Geography is still a bit surprising, at least to me. And it shouldn't be because it's been, you know, a, a solid year, year and a half of, of seeing this trend. International is, is much more strong than, than what I anticipated it to be. Interestingly enough, it's still the demand for North American products. It's almost as if the foreign national manufacturing concerns that are in North America are even heightened in other areas of the world, and there tends to be less regulation in those in those areas. So the markets are moving quite fast in that regard. That's, that's surprising to me. In particular, you know, the Ukraine theater is, is an incredible market.
You, you, you need to be very, very smart or experienced, excuse me, in order to participate there and understand how that will scale. You know, I think we've, we've paid some dues there to do that, and I think we're in a good position for what's about to unfold. That said, also, it provides us incredible credibility back in the North American front, in particular on the defense market, knowing that we've got that experience and we've got equipment in theater over there doing that type of work, and we're able to bring back expertise, you know, and share it around our equipment and solutions that's being garnered by our customers here in North America.
The India market is, probably the, the one that has surprised me the most, other than, you know, Ukraine kind of, you know, came out of the blue, if you will, for everybody. The India market is something where, you know, the foreign national drones are just completely off limit. The demand for a North American technology manufactured in that environment, is massive. It's I would hazard to say it's likely the biggest drone market in the world and opportunity in the world, which I, I wouldn't have concurred with, you know, based on experience, you know, two years ago. We just recently, you know, came back from another trade show over there. We, we've got some great partners, we've got some very deep inroads with the government.
We've had first product land over there, and, you know, a number of members of the team have done significant learnings around how to set up our operations, and I look forward to that in the coming quarters. You know, India's big, defense is very big, and we see, you know, the public safety market here in North America leading the way in terms of regulatory approvals. While there are other markets that may be bigger than public safety on the industrial side, there aren't other markets that will get regulatory approval or adoption quicker than public safety.
Things like, Drone as a First Responder, drone in a box for first responders and public safety, those are the areas that we're focused in because we know those are the areas that will get approvals and waivers, et cetera, and, and budgets. There's ROI on it, so there's budgets that are being allocated for those now. The other industrial applications, you, you know, for sure are coming along, and we've got great sales pipeline into those. You know, where we're not-- where we remain not overly focused for us, is, are things like consumer delivery. We just... They're, they're a long way out, and, and, you know, we'll see where they end up. I mean, they're, they're a reality. They'll happen, but they're, they're not, they're not a short-term focus for us at all.
Hopefully, that provides some insight.
... Talk a little about, about the supply chain issues. We've talked about them at the last quarters. There've been obviously supply chain issues that have, have, affected, you know, this industry among, among lots of others. What, what are your thoughts on that moving forward?
Yeah. I, I think, you know, supply chain's been an issue for, for most people. You know, COVID was a part of that for sure. Coming, then coming into a market where you've got a complete vacuum of drones from foreign nationals being taken out of the North American market and many of the other markets, then competition for-- You know, competition to get product in and specifications being designed and built for an entire new product evolution or an entire new generation of drones and capabilities. You know, we've been dealing not just with supply chain, but we've been dealing with specification, yeah, you know, kind of, freeze. It's like, oh, my gosh, what it...
Like, there's so many new things that need to be put in to this next generation of drones, which, which are, which are now there. Real-time delivery is something that, you know, through our ERP that we put in place a little over a year ago, is something that we're capable of. However, we are skewing a bit more out of necessity to some bigger inventories just because we, we, we have that demand there, and we don't wanna necessarily be risking the supply chain. Some of that has had some effect on us as well, but what it will do is hopefully prevent us from having things move out to the right on a continual basis, which, which has been, you know, the, the entire industry's been plagued by that.
The new facilities we put in place are addressing that. You know, believe it or not, things like storage and how you set up your production lines and et cetera, are all really important to be able to carry inventory, but not too much inventory, but still be able to adjust quickly to just-in-time inventory when it's applicable. It's all kind of a maturing process right now, in an industry that's been around for a while, but it's, you know, frankly, brand new.
Do the regulations around drones from China affect what we're doing here at Draganfly?
100%, they, they do. Yeah. I mean, it's, you know... Our, our position at Draganfly is that we provide solutions for customers. There is a significant market for foreign national drones in North America, and there will be, and there will continue to be, and they're fantastic equipment. You know, we're not being naive to think that, you know, we're gonna go into the small drone market, and you know, that, that... The opportunity here, there is significant vacuum created and market demand by that reality of, and, and I think some valid concerns around those foreign national drones. The market that we're catering to and building towards, right, given total solutions and operating procedure capabilities, is not about...
We, we're not trying to the opportunity is, is, is massive, maybe because of that foreign national conundrum, but that's not going to be a sustainable story. What you need to do is build better drones with better capabilities, fit for specific operations. That's why you see our drones skewing to very specific operations and/or to a heavier lift type of category. This is stuff that's really, you know, we're focusing on where the market is, and not necessarily just because the opportunity is here 'cause of regulation, 'cause those could change in 10 years from now, as well. Yeah, so it, it has a, it has a huge effect on us. That's not what we're counting on.
I'm not sure if that was the question you're answering, asking, but we're not counting on regulation, to build a sustainable business.
Yeah, I think I, I think that does answer the question. Been other questions that have come in about production capacity, which I think we've answered. Ongoing things in in Ukraine. We've talked a little bit about Windfall Geotek in the past. Any update on that relationship? What does that look like? How does that affect some of the stuff we're doing in Ukraine as well?
Yeah. The relationship there, you know, very solid going forward. Love the technology bench that we've been able to collaborate with there on the demining side, as well as the earth mining, rare earth mining side with them. An important partner as we move forward, relating to our total solutions business or our data business, in particular on the earth mining side, the rare mineral side, if you will. Then, you know, the technical collaboration for demining going forward. You know, we've taken a very pragmatic approach in particular in Ukraine, to demining. There's been a number of companies that went in there, made wild claims about what they could do, how they could do it, what their technology was about, how AI was gonna...
You know, it kind of reminded me of the last 2 drone cycles, where it was like, all these companies that, you know, just made wild claims that you knew they just couldn't meet. Sure enough, to my knowledge, pretty much all of those, not all, but most of those demining claims have now been debunked in the pragmatic approach that we've taken with building our algorithms. You know, working with multiple sensors, not one magic sensor that does everything or, you know, can provide immediate real-time results and solve every solution and demine a field in 10 min- like, just those types of things.
Now we, we see the, the inbound pipeline on demining, not just in Ukraine, but around the world, going up significantly because we've established ourselves as a, as a credible player in that market. Yeah. Anyway, that all relates to, to, to Windfall, and we're glad to be working with them.
Talked in the past recently about acquisitions and opportunities and some of the consolidation that's going on in the industry. Do we still see that happening? Anything that are coming out with-
There's, there, there's, there's significant consolidation opportunities now, in the industry, more than we've ever, as you would know, Scott, more than we've ever seen, at better pricing than we've ever seen, before. You know, kind of the, the reality for us is, it, it has to be pretty special now for us to take it on, especially given where we're at with our production capability, about to uncork here at the end of August. You know, we, we've looked at lots. There are a couple that are still pretty interesting, and so we're going down that path, those paths. For the most part, we can build a lot less expensively than we can buy even at the discounted prices, now.
At the end of the day, you've also got to, you know, you've got to integrate, you know, different cultures, and it, it's, it's a very, very difficult game if you want to build a, a scale business, as most, as most people know. There's a couple of interesting things out there, then, and I don't want to discount those because they are pretty interesting. For the most part, acquisitions at this point just don't. Like, organic growth is what's going to be the ticket for us.
Without getting too far ahead of ourselves, Draganfly's announced a couple of new products in the last six to eight months, of course, LiDAR, heavy lift, and so forth. Anything else coming down the pipeline? How much effort is Draganfly putting into new product development?
Well, we're really excited for September. The product teams, led by our COO, Paul Mullen, I think have knocked it out of the park, and in September, there will be a new significant-- two new significant product announcements. In terms of our drones, what they'll do, capabilities, lift capability, duration, an entire new category, and it completely driven by demand. These are drones that are building on the industrial strength type of drones that we have today.
Where our customers, that are now, you know, lining up in size are saying, "Hey, if, if you did this, this is the size of order we'll make." So we've done that, and it's just killing me not to say what it is, but there's some really great stuff coming, and I'm really just incredibly impressed and proud of the team. Also, in terms of payloads of our existing platforms, which is really what the Draganfly product line is becoming, is expanding greatly as well.
We have done as, as mentioned, our winching system, with a precision camera on it, which is really important, with some incredible engineering behind it in terms of capacity to fly, half winched, you know, length, payload capacity, the boxes with multiple remote opening doors in different directions. Also our partners, who are now building product to fit onto the Draganfly. You know, probably our most significant, or some of our most significant pipeline opportunities now are brought in by our, by our partners from previous announcements, where they're all selling either their software, their or their payloads, and they're going... They're like the 3 XL, in particular, right now, is the best platform for it. We've done, you know, very, very concise work integrating with those payloads.
PromoDrone is, is, is one of, you know, multiple examples. We'll see those, those things coming down the pipe in this coming Q as well. CUAV, which is a significant drone show in September, will be, will be, you know, a pretty monumental event for us. We also have a very large customer event for us happening in September at our air facility in Texas, where we've got a couple dozen customers that are coming out and flying for a few days and taking delivery of equipment and starting training and also seeing some of the new product lines that they've asked for coming down the pipe as well. There's just a whole maturing of how we're able to bring product to market.
Okay. I think there's been a couple of other questions that have come in that probably kind of put, you know, touch on, on a guidance, which, of course, we don't, which we don't give. We don't want to talk about, you know, revenue numbers for the next three to six months. We'll probably stay away from those other than what you've already talked about. I think that that kind of wraps up the questions that have come in, either answered with regards to the presentation that Paul gave, some of the stuff that you've talked about. With regards to questions, that's, that's, there's been one or two that have come in over the chat. We've answered those emails as well.
I think with that said and done, I'll be happy to pass it back to you, Cam, and, and, we can wrap it up here.
Sounds great. This is, I'll just wrap up quickly. First of all, again, saying thank you to the team members, everybody, the culture that you've created, the work that we're doing around the world, the commitment, the passion, the weekends, the late nights. It's just, it's incredible, and, and thank you for for that work as a shareholder and as part of management, to get to be a part of it. You know, certainly to our customers, who, and, and our partners who are building payloads and, and entrusting us to work with their customers, you know, please continue to give us that feedback, and let us be of service to you and to our shareholders. You know, this is, this is an industry story.
You know, and, you know, I, I kind of liken it to playing golf. You, you can go out, and you can do your best to shoot a good round and you know, get whatever score you can, but the, the reality is, you, you can also go out and, and, and shoot around and become a better golfer. For the last 2 years, yeah, you know, previous to us going public on Nasdaq, it, it was all about how to, how to learn the industry and sustain within the industry and just survive in the industry because it, it just never really came to fruition. Since those BVLOS regulations have started to become a reality, the industry has now started to mature to a point.
If you want to be that number one or two player in the space, at least our strategy is, you don't go out to play a better golf game. You go out to be, you be a better player until that market has matured, and we're starting to see that happen. We really appreciate your patience in terms of being able to see a real market mature and the next generation of drones come to fruition, which, you know, I think the 3 XL is the leading edge of that, and then some of the things that we'll see at CUAV this year, which are, you know, put out there because of customer demand. We appreciate your trust, and, and hopefully you'll see the commitment that we're all making to you.
Thank you very much, and we look forward to a fantastic Q3.