Flyht Aerospace submits data package to Transport Canada for STC approval

FLYHT Aerospace Solutions provided the an open letter to shareholders including updates regarding commercialization of the Company’s 5G aviation and weather intelligence solutions, which read in part, “Tech Status Update: AFIRS Edge: 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 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…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…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 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%. 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…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.”