Calgary, Alberta – May 7, 2024 – FLYHT Aerospace Solutions Ltd. (“FLYHT” or the “Company”) (TSX-V: FLY) (OTCQX: FLYLF) today announced that it will participate in the Rivemont Investments MicroCap Technology Special taking place in Montreal on Tuesday, May 14, 2024. Kent Jacobs, President and Interim CEO is scheduled to host a presentation followed by a Q&A session. Details for the live public presentation are below.

DATE: Tuesday, May 14, 2024

TIME:  4:35 PM MT (6:35 PM ET)

LOCATION: L’Espace 914, 914 Notre-Dame Quest, Montreal, H3C 1J9

REGISTRATION: https://www.eventbrite.ca/e/billets-cocktail-5a7-rivemont-microcap-special-technologie-883787079947

All existing and prospective shareholders are invited to attend the conference to learn more about the Company. For more information, please email investors@flyht.com or flyht@fnkir.com.

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.

Contact Information:

FLYHT Aerospace Solutions Ltd.FNK IR LLC
Alana ForbesMatt Chesler, CFA
Chief Financial OfficerInvestor Relations
403.291.7437646.809.2183
investors@flyht.commchesler@flyht.com

 

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

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
 20232022Inc./ Dec. 20232022Inc./ Dec.
Revenue4,244,7877,241,758-41.4%20,144,57923,879,160-15.6%
  SaaS2,801,6612,253,61824.3%10,693,0988,157,88631.1%
  Hardware327,9411,217,860-73.1%4,273,4644,720,204-9.5%
  Licensing25,6493,030,368-99.2%1,962,2239,101,130-78.4%
  Technical Services1,089,536739,91247.3%3,215,7941,899,94069.3%
Gross Margin59.1%67.1%-800 bps58.7%63.7%-500 bps
EBITDA(1,226,783)1,170,183NM(2,833,517)251,453NM
Net Income (Loss)(1,494,795)718,689NM(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.

Conference Call Information

FLYHT will host a conference call to discuss the financial results for the fourth quarter and full year 2023 on Thursday, April 25, 2024, at 7:30 a.m. MT (9:30 a.m. ET). The conference call will include prepared remarks followed by a question-and-answer session with FLYHT’s President & Interim CEO Kent Jacobs and CFO Alana Forbes. To access the conference call by phone within Canada and the U.S., the toll-free number is 1-800-319-4610. Outside Canada and the U.S., dial 1-604-638-5340.

Management will accept questions by telephone and e-mail. Individuals wishing to ask a question during the call can do so by pressing *1. Questions can be emailed in advance or during the conference call to investors@flyht.com. An archive of the conference call will be posted on the Investor Communications section of FLYHT’s website following the meeting.

Additional Information

FLYHT’s Q4 2023 Report, which contains more detailed information including the CEO’s Letter to Shareholders, Management Discussion and Analysis and Financial Statements, can be accessed on the Company’s website. The MD&A and Financial Statements have also been filed with SEDAR and will be accessible at www.sedar.com.

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.

Cautionary Note Regarding Forward-Looking Statements

Except for statements of historical fact, this news release contains certain “forward-looking information” within the meaning of applicable securities law. Forward-looking information is frequently characterized by words such as “plan”, “expect”, “project”, “intend”, “believe”, “anticipate”, “estimate” and other similar words, or statements that certain events or conditions “may” or “will” occur. In particular, forward-looking information in this press release includes, but is not limited to, statements with respect to the anticipated/projected revenues and related matters. Although we believe that the expectations reflected in the forward-looking information are reasonable, there can be no assurance that such expectations will prove to be correct. We cannot guarantee future results, performance or achievements. Consequently, there is no representation that the actual results achieved will be the same, in whole or in part, as those set out in the forward-looking information.

Forward-looking information is based on the opinions and estimates of management at the date the statements are made and are founded on the basis of expectations, assumptions and hypotheses made by the Company, including, but not limited to projected revenues. Such forward-looking information is subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those anticipated in the forward-looking information. Some of the risks and other factors that could cause the results to differ materially from those expressed in the forward-looking information include, but are not limited to: general economic conditions in Canada, the United States and globally; industry conditions, and supply chain delays. Readers are cautioned that this list of risk factors should not be construed as exhaustive. 

The forward-looking information contained in this news release is expressly qualified by this cautionary statement. We undertake no duty to update any of the forward-looking information to conform such information to actual results or to changes in our expectations except as otherwise required by applicable securities legislation. Readers are cautioned not to place undue reliance on forward-looking information.

Contact Information:

FLYHT Aerospace Solutions Ltd.FNK IR LLC
Alana ForbesMatt Chesler, CFA
Chief Financial OfficerInvestor Relations
403.291.7437646.809.2183
investors@flyht.commchesler@flyht.com

 

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Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

[1] EBITDA: defined as earnings before interest, income tax, depreciation and amortization (a non-GAAP financial measure). EBITDA is provided to aid in analysis and profitability comparisons among companies and industries, by segregating operating results from the effects of financing and capital expenditures.

[2] EBITDA: defined as earnings before interest, income tax, depreciation and amortization (a non-GAAP financial measure). EBITDA is provided to aid in analysis and profitability comparisons among companies and industries, by segregating operating results from the effects of financing and capital expenditures.

Calgary, Alberta – April 19, 2024 – FLYHT Aerospace Solutions Ltd. (TSX-V: FLY) (OTCQX: FLYLF) (the “Company” or “FLYHT”) today announced that it will host a conference call to discuss the results for its fourth quarter and full year 2023 ended December 31, 2023 on Thursday, April 25, 2024 at 7:30 a.m. MT (9:30 a.m. ET). The conference call will include prepared remarks followed by a question-and-answer session with Kent Jacobs, President & Interim CEO and Alana Forbes, CFO.

To access the conference call by phone within Canada and the U.S., the toll-free number is 1-800-319-4610. Outside Canada and the U.S., dial 1-604-638-5340. Callers should dial in five to ten minutes prior to the scheduled start time. Management will accept questions by telephone and e-mail. Individuals wishing to ask a question during the call can do so by pressing *1. Questions can be emailed in advance or during the conference call to investors@flyht.com.

An archive of the conference call will be posted on the Investor Relations section of FLYHT’s website as soon as it is available from the conference call provider.

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.

Contact Information:

FLYHT Aerospace Solutions Ltd.FNK IR LLC
Alana ForbesMatt Chesler, CFA
Chief Financial OfficerInvestor Relations
403.291.7437646.809.2183
investors@flyht.commchesler@flyht.com

 

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Calgary, Alberta – March 19, 2024 – FLYHT Aerospace Solutions Ltd. (“FLYHT” or the “Company”) (TSX-V: FLY) (OTCQX: FLYLF) 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.

Contact Information:

FLYHT Aerospace Solutions Ltd.FNK IR LLC
Alana ForbesMatt Chesler, CFA
Chief Financial OfficerInvestor Relations
403.291.7437646.809.2183
investors@flyht.commchesler@flyht.com

 

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Calgary, Alberta – March 5, 2024 – FLYHT Aerospace Solutions Ltd. (TSX-V: FLY) (OTCQX: FLYLF) (the “Company” or “FLYHT”) announced today that it will participate in the iAccess Alpha “Buyside Best Ideas Spring Conference 2024” taking place virtually on March 12-13, 2024. Kent Jacobs, President and Interim CEO, and Alana Forbes, CFO, are scheduled to host a presentation on Tuesday, March 12, 2024 at 9:00 AM MT (11:00 AM ET), followed by a Q&A session. Management will also host one-on-one meetings on Wednesday, March 13, 2024.

Details for the live public presentation are below:

DATE: Tuesday, March 12, 2024

TIME:  9:00 AM MT (11:00 AM ET)

LINK:   https://www.webcaster4.com/Webcast/Page/3024/50044

A live webcast and archive of the presentation will be available using the dedicated link above and in the Investors section of FLYHT’s website at www.flyht.com/investors.

All existing and prospective shareholders are invited to attend the conference to learn more about the Company. Registration can be found at https://www.iaccessalpha.com. For more information, please contact FLYHT’s IR team at investors@flyht.com or flyht@fnkir.com.

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.

Contact Information:

FLYHT Aerospace Solutions Ltd.FNK IR LLC
Alana ForbesMatt Chesler, CFA
Chief Financial OfficerInvestor Relations
403.291.7437646.809.2183
investors@flyht.commchesler@flyht.com

 

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

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.

Cautionary Note Regarding Forward-Looking Statements

Except for statements of historical fact, this news release contains certain “forward-looking information” within the meaning of applicable securities law. Forward-looking information is frequently characterized by words such as “plan”, “expect”, “project”, “intend”, “believe”, “anticipate”, “estimate” and other similar words, or statements that certain events or conditions “may” or “will” occur. In particular, forward-looking information in this press release includes, but is not limited to, statements with respect to projected revenues and related matters. Although FLYHT believes that the expectations reflected in the forward-looking information are reasonable, there can be no assurance that such expectations will prove to be correct. FLYHT cannot guarantee future results, performance, or achievements. Consequently, there is no representation that the actual results achieved will be the same, in whole or in part, as those set out in the forward-looking information.

Forward-looking information is based on the opinions and estimates of management at the date the statements are made and are founded on the basis of expectations, assumptions and hypotheses made by the Company, including, but not limited to projected revenues. Such forward-looking information is subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those anticipated in the forward-looking information. Some of the risks and other factors that could cause the results to differ materially from those expressed in the forward-looking information include but are not limited to global economic conditions; industry conditions, and supply chain delays. Readers are cautioned that this list of risk factors should not be construed as exhaustive.

The forward-looking information contained in this news release is expressly qualified by this cautionary statement. FLYHT undertakes no duty to update any of the forward-looking information to conform such information to actual results or to changes in our expectations except as otherwise required by applicable securities legislation. Readers are cautioned not to place undue reliance on forward-looking information.

Contact Information:

FLYHT Aerospace Solutions Ltd.FNK IR LLC
Alana ForbesMatt Chesler, CFA
Chief Financial OfficerInvestor Relations
403.291.7437646.809.2183
investors@flyht.comflyht@fnkir.com

 

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

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.

Rendering of AFIRS Edge+

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 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. You can also follow OSS on Twitter, YouTube, and LinkedIn.

Forward-Looking Statements

Except for statements of historical fact, this news release contains certain “forward-looking information” within the meaning of applicable securities law. Forward-looking information is frequently characterized by words such as “plan”, “expect”, “project”, “intend”, “believe”, “anticipate”, “estimate” and other similar words, or statements that certain events or conditions “may” or “will” occur. In particular, forward-looking information in this press release includes, but is not limited to, statements with respect to projected revenues and related matters. Although management of the companies believe that the expectations reflected in the forward-looking information are reasonable, there can be no assurance that such expectations will prove to be correct. The companies cannot guarantee future results, performance, or achievements. Consequently, there is no representation that the actual results achieved will be the same, in whole or in part, as those set out in the forward-looking information.

Forward-looking information is based on the opinions and estimates of management at the date the statements are made and are founded on the basis of expectations, assumptions and hypotheses made by the companies, including, but not limited to projected revenues. Such forward-looking information is subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those anticipated in the forward-looking information. Some of the risks and other factors that could cause the results to differ materially from those expressed in the forward-looking information include but are not limited to global economic conditions, industry conditions, and supply chain delays. Readers are cautioned that this list of risk factors should not be construed as exhaustive. In addition the foregoing, risks relevant to One Stop Systems also include those risks described in its filings with the Securities and Exchange Commission (SEC), including under the heading “Risk Factors” in its latest Annual Report on Form 10-K and any subsequent filings with the SEC.

The forward-looking information contained in this news release is expressly qualified by this cautionary statement. The companies undertake no duty to update any of the forward-looking information to conform such information to actual results or to changes in our expectations except as otherwise required by applicable securities legislation. Readers are cautioned not to place undue reliance on forward-looking information.

Media Contacts for OSS:
Katie Rivera
One Stop Systems, Inc.
Tel (760) 745-9883

Email contact

 

Tim Randall

CMA Media Relations

Tel (949) 432-7572

Email contact

 

Investor Relations for OSS:

Ronald Both or Grant Stude

CMA Investor Relations

Tel (949) 432-7557

Email contact

Company Contact for FLYHT:

Alana Forbes

FLYHT Aerospace Solutions Ltd.

Chief Financial Officer

Tel (403) 291-7437
Email contact

Investor Relations for FLYHT:

Matt Chesler, CFA

FNK IR

Tel (646) 809-2183
Email contact

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.

Cautionary Note Regarding Forward-Looking Statements

Except for statements of historical fact, this news release contains certain “forward-looking information” within the meaning of applicable securities law. Forward-looking information is frequently characterized by words such as “plan”, “expect”, “project”, “intend”, “believe”, “anticipate”, “estimate” and other similar words, or statements that certain events or conditions “may” or “will” occur. In particular, forward-looking information in this press release includes, but is not limited to, statements with respect to projected revenues and related matters. Although FLYHT believes that the expectations reflected in the forward-looking information are reasonable, there can be no assurance that such expectations will prove to be correct. FLYHT cannot guarantee future results, performance, or achievements. Consequently, there is no representation that the actual results achieved will be the same, in whole or in part, as those set out in the forward-looking information.

Forward-looking information is based on the opinions and estimates of management at the date the statements are made and are founded on the basis of expectations, assumptions and hypotheses made by the Company, including, but not limited to projected revenues. Such forward-looking information is subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those anticipated in the forward-looking information. Some of the risks and other factors that could cause the results to differ materially from those expressed in the forward-looking information include but are not limited to global economic conditions, industry conditions, and supply chain delays. Readers are cautioned that this list of risk factors should not be construed as exhaustive.

The forward-looking information contained in this news release is expressly qualified by this cautionary statement. FLYHT undertakes no duty to update any of the forward-looking information to conform such information to actual results or to changes in our expectations except as otherwise required by applicable securities legislation. Readers are cautioned not to place undue reliance on forward-looking information.

Contact Information:

FLYHT Aerospace Solutions Ltd.FNK IR LLC
Alana ForbesMatt Chesler, CFA
Chief Financial OfficerInvestor Relations
403.291.7437646.809.2183
investors@flyht.comflyht@fnkir.com

 

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Kent Jacobs Continues to Serve as President & Interim CEO

Calgary, Alberta – November 20, 2023 – FLYHT Aerospace Solutions Ltd. (TSX-V: FLY) (OTCQX: FLYLF) (the “Company” or “FLYHT”) today announced that its Board of Directors has named Captain Mary I. McMillan to the new position of Executive Chair, effective immediately. McMillan, who joined the FLYHT board as an independent director in 2019 and was elevated to Non-Executive Chair in April 2023, will support President and Interim CEO Kent Jacobs on the planning and implementation of FLYHT’s strategy.

“Mary has quickly become far more than an advisor and Chair,” said Kent Jacobs, President and Interim CEO of FLYHT. “She has a deep understanding of aviation industry needs and international regulatory frameworks, and extensive relationships amassed from a 40+ year career. This expertise has been incredibly valuable to me and the rest of the FLYHT team as we execute on our AFIRS Edge™ and weather strategies – two of the largest opportunities in our 25-year history. I am confident that Mary will provide even greater insights and guidance in her new role.”

Captain McMillan is a highly respected subject matter expert in areas of aviation operations, safety and environmental issues, as well as a commercial pilot with more than 12,000 hours flight time. She is the President of Cashel Aviation, a consultancy dedicated to the development and implementation of aviation safety and environmental strategies. She retired as the Vice President of Aviation Safety and Operational Services for Inmarsat Plc in 2018 following the successful launch of the division within the Inmarsat Aviation Business Unit. Prior to joining Inmarsat, she led the aviation safety and environmental divisions for Washington D.C. based TetraTechAMT and CSSI Inc., respectively. She served as the independent safety advisor to the Airservices Australia Board of Directors in Canberra, Australia. Earlier in her career, Captain McMillan held several operational and managerial roles with United Airlines including pilot, standards captain, Director of Flight Safety (A) and Flight Operations Duty Manager. Captain McMillan began flying in 1982, holds an Airline Transport Pilot’s license and is type rated on multiple aircraft including the DC-10, B747, B737, B757/B767 and Airbus 319/320.

“With over 100 customers globally, growing SaaS revenue, and solid beachheads in two attractive markets that leverage our new 5G capabilities, FLYHT is at an important inflection point as we work to meet the aviation industry’s need for improved efficiency, profitability and a more sustainable environment,” said Captain McMillan. “I am excited to work even closer with Kent and the FLYHT team to deliver our Actionable Intelligence and Weather solutions to our customers.”

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, which 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.

Contact Information:

FLYHT Aerospace Solutions Ltd.FNK IR LLC
Alana ForbesMatt Chesler, CFA
Chief Financial OfficerInvestor Relations
403.291.7437646.809.2183
investors@flyht.comflyht@fnkir.com

 

Join us on social media!

www.twitter.com/flyhtcorp

https://www.linkedin.com/company/flyht/

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Calgary, Alberta – November 9, 2023 – FLYHT Aerospace Solutions Ltd. (TSX-V: FLY) (OTCQX: FLYLF) (the “Company” or “FLYHT”) today reported financial results for the third quarter ended September 30, 2023 (“Q3 2023”). All figures are Canadian dollars unless otherwise stated.

Financial Summary

 Three Months Ended September 30Nine Months Ended September 30
 2023  2022   Inc./ Dec. 2023  2022  Inc./ Dec.
Revenue5,099,0196,725,373-24.2%15,899,79216,637,402-4.4%
  SaaS2,787,6642,073,28434.5%7,891,4375,904,26833.7%
  Hardware1,001,817480,064108.7%3,945,5233,502,34512.6%
  Licensing494,5733,536,153-86.0%1,936,5746,070,761-68.1%
  Technical Services814,965635,87228.2%2,126,2581,160,02883.3%
Gross Margin58.7%72.4%-1370 bps58.6%62.2%-360 bps
EBITDA(430,865)924,680NM(1,606,734)(912,562)NM
Net Income (Loss)(728,655)703,765NM(2,554,576)(1,715,554)NM
EPS – Basic & Diluted(0.02)0.02(0.04)(0.07)(0.05)(0.02)

 

Management Commentary

“FLYHT delivered solid results in Q3 2023, as demonstrated by our double-digit growth in SaaS and Technical Services and triple-digit growth in Hardware,” said Kent Jacobs, President and Interim CEO of FLYHT. “The reported licensing revenue decline is due to last year’s large OEM order not being repeated. These results affirm that our solutions are in demand as the aviation industry recognizes the need for improved efficiency, profitability and a more sustainable environment.”

Continued Jacobs, “We continue to make significant progress on our two main strategic growth initiatives, the AFIRS EdgeTM and weather. As announced in the quarter, we have signed up airline partners to help launch the AFIRS Edge on both the Boeing 737 and A320 aircraft types, and just last week completed the installation and engineering tests on the A320. We are now working through certification testing before we submit our final package to Transport Canada as we seek the Supplemental Type Certificate (“STC”). In our weather business, during the quarter we signed agreements with the world’s two largest meteorological agencies, the UK Met Office and NOAA, to collaborate and improve weather forecasting, which leverages the FLYHT-WVSS-II water vapor sensor system in conjunction with the AFIRS Edge.”

“At the same time, we are realizing the contributions of our MRO systems business CrossConsense, which landed a significant data management migration for a large flag carrier in Europe. This is the largest win for CrossConsense since we acquired the business last year.”

Concluded Jacobs, “The entire FLYHT organization is laser focused on delivering on the AFIRS Edge and Weather opportunities ahead of what we expect to be an exciting 2024. We are making great progress and will continue to source opportunities for growth to further scale the business.”

Operating Results

Revenue decreased by 24% to $5,099,019 in Q3 2023 compared to Q3 2022. Excluding licensing, revenue would have increased 44% year-over-year driven by growth in SaaS, Hardware and Technical Services.

SaaS revenue increased by 34% to $2,787,664, driven by an increase in customers’ flights and flight hours, as well as growth in weather-related software services. Licensing revenue decreased by 86% to $494,573 due to a large order from a long-term OEM customer that was not replicated in Q3 2023. Hardware revenue increased by 109% to $1,001,817, with a total of 18 installation kits shipped in Q3 2023. Technical Services revenue increased by 28% to $814,965 as a result of data migration work delivered and an increase in customer requests for certification services.

Gross margin was 59% of revenue in Q3 2023 compared to 72% in Q3 2022. The decrease in gross margin was due primarily to changes in the mix of revenue sources during the quarter.

Operating expenses decreased by 11% from Q3 2022, driven by a 25% decrease in Administration expenses, a 14% decrease in Research and Development and certification engineering expenses and a 1% increase in Distribution expenses.

EBITDA[1] loss totaled $430,865 in Q3 2023 compared to positive EBITDA of $924,680 in Q3 2022.

Net loss was $728,655 in Q3 2023 compared to a Net Income of $703,765 in Q3 2022.

Balance Sheet and Liquidity

Cash and short-term investments totalled $1,939,959 at September 30, 2023, compared to $2,647,650 at December 31, 2022. When compared to Q2 2023, cash and short-term investments of $1,719,904, our cash position increased by $220,055 quarter-over-quarter.

Trade and other receivables decreased by 26% to $3,751,129 compared to YE 2022, and Trade payables and accrued liabilities increased by 0.9% to $2,759,864 compared to YE 2022.

Conference Call Information

FLYHT will host a conference call to discuss its financial results for Q3 2023 on Friday, November 10, 2023, at 7:30 a.m. MT (9:30 a.m. ET). The conference call will include prepared remarks followed by a question-and-answer session with FLYHT’s President & Interim CEO Kent Jacobs and CFO Alana Forbes. To access the conference call by phone within Canada and the U.S., the toll-free number is 1-800-319-4610. Outside Canada and the U.S., dial 1-604-638-5340.

Management will accept questions by telephone and e-mail. Individuals wishing to ask a question during the call can do so by pressing *1. Questions can be emailed in advance or during the conference call to investors@flyht.com. An archive of the conference call will be posted on the Investor Communications section of FLYHT’s website following the meeting.

Additional Information

FLYHT’s Q3 2023 Report, which contains more detailed information including the CEO’s Letter to Shareholders, Management Discussion and Analysis and Financial Statements, can be accessed on the Company’s website. The MD&A and Financial Statements have also been filed with SEDAR and will be accessible at www.sedar.com.

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, which 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.

Cautionary Note Regarding Forward-Looking Statements

Except for statements of historical fact, this news release contains certain “forward-looking information” within the meaning of applicable securities law. Forward-looking information is frequently characterized by words such as “plan”, “expect”, “project”, “intend”, “believe”, “anticipate”, “estimate” and other similar words, or statements that certain events or conditions “may” or “will” occur. In particular, forward-looking information in this press release includes, but is not limited to, statements with respect to the anticipated/projected revenues and related matters. Although we believe that the expectations reflected in the forward-looking information are reasonable, there can be no assurance that such expectations will prove to be correct. We cannot guarantee future results, performance or achievements. Consequently, there is no representation that the actual results achieved will be the same, in whole or in part, as those set out in the forward-looking information.

Forward-looking information is based on the opinions and estimates of management at the date the statements are made and are founded on the basis of expectations, assumptions and hypotheses made by the Company, including, but not limited to projected revenues. Such forward-looking information is subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those anticipated in the forward-looking information. Some of the risks and other factors that could cause the results to differ materially from those expressed in the forward-looking information include, but are not limited to: general economic conditions in Canada, the United States and globally; industry conditions, and supply chain delays. Readers are cautioned that this list of risk factors should not be construed as exhaustive. 

The forward-looking information contained in this news release is expressly qualified by this cautionary statement. We undertake no duty to update any of the forward-looking information to conform such information to actual results or to changes in our expectations except as otherwise required by applicable securities legislation. Readers are cautioned not to place undue reliance on forward-looking information.

Contact Information:

FLYHT Aerospace Solutions Ltd.FNK IR LLC
Alana ForbesMatt Chesler, CFA
Chief Financial OfficerInvestor Relations
403.291.7437646.809.2183
investors@flyht.comflyht@fnkir.com

 

Join us on social media!

www.twitter.com/flyhtcorp

https://www.linkedin.com/company/flyht/

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

[1] EBITDA: defined as earnings before interest, income tax, depreciation and amortization (a non-GAAP financial measure). EBITDA is provided to aid in analysis and profitability comparisons among companies and industries, by segregating operating results from the effects of financing and capital expenditures.