Drone Company on the Rise

DroneShield Ltd. (DRO:ASX; DRSHF: OTC) has announced new software that will improve its drone tracking capabilities.

Remote ID technology has become a must for drone companies as legislation regarding drones becomes more sophisticated.

Launching DroneLocator

DroneShield has announced that it has released a major firmware update, which it has applied to its global fleet of counterdrone (C-UAS) devices. This development has come about as a result of the introduction of Remote ID legislation around the world, which has motivated drone manufacturers to develop proprietary technology.

Remote ID technology is designed to broadcast critical information about the aircraft, location data, flight information, and pilot details. This technology is critical to the safe management of low-altitude airspace.

According to Angus Bean, the CTO of DroneShield, "The addition of DroneLocator to our detection technology suite is the continuation of our long-term strategy to offer major enhancements to the existing product range via our software subscription model. We are pleased the technology is available immediately for all our existing end-user communities. This technology has been heavily requested by the C-UAS and adjacent industries.”

DroneShield devices are capable of detecting a variety of Remote ID signals through the company's DroneLocator technology. These enhancements apply to its man-portable vehicle or ship and fixed site products. DroneLocator can display DJI Remote ID signals previously only available via the DJI AeroScope product. DroneLocator can provide critical information such as drone location, pilot location, drone home location, drone serial number, and drone speed. Enrolled devices also receive a quarterly update to the proprietary DroneShield RFAI Artificial Intelligence engine.

DroneLocator provides information for detecting and tracking legal and compliant aircraft, but DroneShield RFAI technology also provides a solution for unlawful, unregistered, or hostile drones.

These programs can run simultaneously on a single DroneShield device. The programs can operate in a completely air-gapped configuration. This technology greatly expands the use case from DroneShield products, including an expansion of C-UAS, Unmanned Aircraft System Traffic Management (UTM), Low Altitude Airspace Monitoring, Drone Security, and Drone Fleet Management. There are also three major updates: Greater Performance in High Noise Environments, Maps Available on Embedded Devices, and Improved Graphic User Interface.

A Steady Market and Co.

DroneShield has received some attention from the US government and global defense contractors, which is no surprise given recent spending decisions. The US military budget for 2023 has increased by US$69.3 billion since last year. 

The US government and various state and local bodies have purchased so many drones from overseas, particularly China, that it has drawn criticism from some US lawmakers. These concerns seem specific to China as tensions between the Chinese and American governments has been on the rise. However, the need for drones has remained, driving demand up.

Attractive to Investors

DroneShield Ltd. has received very positive reviews from analysts this year. In March of 2023, analyst Darren Odell reported that the company would be cash flow positive by the end of the year. There are a number of factors that make it attractive to investors: it has investors that are unmanned aerial vehicle firms, it is backed by private equity, it has been recommended by the U.S. government, and global defense contractors have taken note of the company.

Analyst Daniel Laing reported that there has been a high demand for the company's stock: "It is positive to see the high level of demand for the stock from existing shareholders."

He has continued to rate the company as a Buy for investors.

Ownership and Share Structure

Carla Balanco owns 1.44% of the company with 8.45 million shares, Oleg Vornik owns 1.43% with 8.43 million shares, Angus Bean owns 1.26% with 7.39 million shares, and Peter James owns 1.11% with 6.53 million shares, and Paul Jonathan Shaw owns 0.95% with 5.58 million shares.

Epirus Inc. owns 3.15% with 18.50 million shares, Beta Gamma Pty. Ltd. owns 2.30% with 13.50 million shares, Ravenscourt Pty. Ltd. owns 1.36$ with 8.00 million shares, SR Bennett Pty. Ltd. owns 0.91% with 5.35 million shares, and P&B Shaw FT CB Pty. Ltd. owns 0.58% with 3.43 million shares.

There are 587.93 million shares outstanding and 490.94 million free-float traded shares. The company has a market cap of CA$85.35 million. It trades in the 52-week period between CA$0.16 and CA$0.42.

Important Disclosures:

1.  DroneShield Ltd. has a consulting relationship with Street Smart and pays a monthly consulting fee between US$8,000 and US$20,000. 
2. As of the date of this article, officers and/or employees of Streetwise Reports LLC (including members of their household) own securities of DroneSheild Ltd. 
3. Amanda Duvall rote this article for Streetwise Reports LLC and provides services to Streetwise Reports as an employee.
4. The article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional. By opening this page, each reader accepts and agrees to Streetwise Reports' terms of use and full legal disclaimer. This article is not a solicitation for investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company mentioned on Streetwise Reports.

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