Deveron Reports Continued Revenue Growth in Q2

Deveron UAS Corp. (CSE: DVR) (

“Deveron”

or the 

“Company”

) a leading agriculture digital services and insights provider in North America, is pleased to announce revenue growth of 54% year over year to $1,123,867 in Q2 2020.  This marks a major milestone for the Company, as it has successfully sold over $1 million in products and services for the first time in one quarter since the Company’s founding.

Second Quarter 2020 Financial and Operational Highlights

The Company’s financial performance improved over the previous year’s quarter, driven by higher margin data insight solutions, led by the Company’s acquisition of Texas based Better Harvest, and the doubling of farm acres serviced from its data collection division.  For the three-month financial results ended June 30, 2020 (and comparable period ended June 30, 2019):

• Revenue grew 54% year over year to $1,123,867 in Q2 2020, from $727,973 in Q2 2019  
• Revenue from US operations grew 361% to $595,696 in Q2 2020 
• Total comprehensive income for the period was $76,223

“Our second quarter results illustrate the success of our growth strategy which is underpinned by three key focus areas: organic growth, productization of our offerings and acquisitions,” commented David MacMillan, Deveron’s President and CEO.  “In the quarter, we were able to successfully integrate our Texas acquisition, Better Harvest, which doubled the acres we influence in the US and increased our US revenue by 361%.  This year we have made investments in our sales team and marketing efforts which significantly impacted our sales funnel and activity ahead.  Additionally, investment in our data collection network earlier this year has help secure nearly double the volume in both drone and soil sampling orders compared to this time last year.  Looking forward to the next 6 months, our goal is to continue accelerating the success of this strategy while also focusing on some new digital tools and offerings that we believe will continue to leverage our ability to scale and service more and more customers throughout North America’s farm sector.”

Summary of Financial Results

Results of Operations	For the three months ended						For the six months ended
	June 30, 2020			June 30, 2019			June 30, 2020			June 30, 2019
Total Revenue	$	1,123,867		$	727,973		$	1,407,287		$	828,537
Gross Profit	$	925,631		$	508,058		$	1,105,287		$	577,891
Gross Profit Margin %		82	%		69	%		79	%		70	%
Operating Expenses	$	849,408		$	609,725		$	1,598,403		$	1,562,477
Total Comprehensive Income (Loss)	$	76,223		$	(101,667	)	$	(492,560	)	$	(984,586	)
Weighted Average Common Shares Outstanding		49.8	M		37.9	M		44.1	M		37.9	M
Per Share:
Comprehensive Net Gain (Loss)	$	0.00		$	(0.00	)	$	(0.01	)	$	(0.03	)

Operational Highlights for Q2:

In the second quarter, Deveron was able to achieve key objectives and successes that had a positive impact on the Company’s trajectory:

• On April 7, Deveron closed a private placement for $655,000 by a group of strategic investors led by Bill Linton.  Mr. Linton was appointed as a Director and non-executive Chairman of the Board.  Mr. Linton is an experienced director and private investor and currently serves on the Boards of TMX Group (TSE: X), Empire Company (TSE: EMP.A) and CSL Group.  He has invested in several successful private companies and retired in 2012 as the CFO of Rogers Communications. 
• On April 17, Deveron closed the 2nd tranche of a private placement for $700,000, which combined with the first tranche, Deveron issued 13,550,000 Units for aggregate gross proceeds of $1,355,000. 
• On May 11, Deveron acquired Better Harvest, a Texas based agronomy solutions firm further expanding its US footprint by over 100,000 customer acres.  Better Harvest had unaudited reported revenue of $471,769 USD in 2019. 
• On June 18, Deveron announced the national launch of a plant tissue testing service in collaboration with A & L Canada Laboratories to continue to build on the Company’s turn-key data collection offering.  Tissue sampling complements other progressive precision agriculture programs and is a value-add to traditional soil sampling.

Subsequent to Q2

• On July 7, Deveron announced that it is providing a turnkey data service program to Terramera, a global ag-tech leader fusing science, nature and artificial intelligence to transform how food is grown.  The collaboration allows Terramerra access to Deveron’s drone data network to provide high fidelity insight on numerous sites across Canada and the United States.

Business Outlook

“The second quarter affirmed our beliefs about the value that our products and services provide our customers,” commented David MacMillan, Deveron’s President and CEO.  “As engagement within our sales pipeline continues to grow and our team continues to push efficient turn around from the field to the creation of tangible data that helps leaders in agriculture make better decisions, we only see our success accelerating.  With a quarter under our belt of our integration of Better Harvest and increased activity in the United States, we see a lot of opportunities to consolidate a fragmented service market and align great businesses toward a common goal of providing better, unbiased information to improve efficiencies on farms.  We are looking forward to a busy fall and have already seen increased demand as the soil sampling season gets underway following wheat harvest across a number of our operating nodes.  Finally, although COVID-19 has challenged our ability as a company to deliver our services, to date we have not experienced any major impact on our business activity.”

The Management’s Discussion and Analysis for the period and the accompanying Financial Statements and notes are available under the Company’s profile on SEDAR at www.sedar.com.  This news release is not in any way a substitute for reading those financial statements, including the notes to the financial statements.

About Deveron UAS: Deveron is a leading agriculture technology company focused on providing data acquisition services and data insights in North America.  Through its on-demand network of drone pilots and soil sampling technicians, the Company is providing scalable data acquisition solutions in the imagery and soil space.  Additionally, through its wholly owned subsidiary Veritas Farm Management, the company provides growers in North America with independent data analytics and insights on the massive amount of data being generated on farms today.

For more information and to join our community, please visit www.deveronuas.com/register or reach us on Twitter @DeveronUAS or @MyVeritas_HQ

David MacMillanPresident & CEO Deveron UAS Corp.416-367-4571 ext. [e-mail]

This news release includes certain “forward-looking statements” within the meaning of that phrase under Canadian securities laws. Without limitation, statements regarding future plans and objectives of the Company are forward looking statements that involve various degrees of risk. Forward-looking statements reflect management's current views with respect to possible future events and conditions and, by their nature, are based on management's beliefs and assumptions and subject to known and unknown risks and uncertainties, both general and specific to the Company. Although the Company believes the expectations expressed in such forward-looking statements are reasonable, such statements are not guarantees of future performance and actual results or developments may differ materially from those in our forward-looking statements. The following are important factors that could cause the Company’s actual results to differ materially from those expressed or implied by such forward looking statements: changes in the world-wide price of agricultural commodities, general market conditions, risks inherent in agriculture, the uncertainty of future profitability and the uncertainty of access to additional capital. Additional information regarding the material factors and assumptions that were applied in making these forward looking statements as well as the various risks and uncertainties we face are described in greater detail in the "Risk Factors" section of our annual and interim Management's Discussion and Analysis of our financial results and other continuous disclosure documents and financial statements we file with the Canadian securities regulatory authorities which are available at www.sedar.com. The Company undertakes no obligation to update this forward-looking information except as required by applicable law. The Company relies on litigation protection for forward looking statements.