Draganfly (DPRO) Risk Analysis
Risk Overview Q4, 2021
Risk Change Over Time
No filing history is available.
Risk Highlights Q4, 2021
Risk Word Cloud
Risk Factors Full Breakdown - Total Risks 50
- Share Price & Shareholder Rights - Risk 1We are an emerging growth company and intend to take advantage of reduced disclosure requirements ?applicable to emerging growth companies, which could make our Common Shares less attractive to ?investors.?
We are an "emerging growth company" as defined in the JOBS Act. We will remain an emerging growth ?company until the earliest to occur of (i) the last day of the fiscal year in which we have total annual gross ?revenue of $1.07 billion or more; (ii) December 31, 2026 (the last day of the fiscal year ending after the fifth ?anniversary of the date of the completion of the first sales of its common equity pursuant to an effective ?registration statement under the United States Securities Act of 1933, as amended (the "Securities Act")); (iii) ?the date on which we have issued more than $1.0 billion in non-convertible debt securities during the prior three-?year period; or (iv) the date we qualify as a "large accelerated filer" under the rules of the SEC, which means the ?market value of our Common Shares held by non-affiliates exceeds $700 million as of the last business day of ?its most recently completed second fiscal quarter after we have been a reporting company in the United States ?for at least 12 months. For so long as we remain an emerging growth company, we are permitted to and intend to ?rely upon exemptions from certain disclosure requirements that are applicable to other public companies that ?are not emerging growth companies. These exemptions include not being required to comply with the auditor ?attestation requirements of Section 404 ("Section 404") of the Sarbanes-Oxley Act (2002), as amended (the "Sarbanes-Oxley Act").? We may take advantage of some, but not all, of the available exemptions available to emerging growth ?companies. We cannot predict whether investors will find our Common Shares less attractive if we rely on these ?exemptions. If some investors find our Common Shares less attractive as a result, there may be a less active ?trading market for our Common Shares and the price of our Common Shares may be more volatile.
- Share Price & Shareholder Rights - Risk 2United States investors may not be able to obtain enforcement of civil liabilities against us.
? The Company is incorporated under the laws of British Columbia, Canada, and its principal executive offices are located in Canada. Most of the Company's directors and officers and most of the experts named in this Annual Report reside outside of the United States and all or a substantial portion of the Company's assets and the assets of these persons are located outside the United States. Consequently, it may not be possible for an investor to effect service of process within the United States on the Company or those persons. Furthermore, it may not be possible for an investor to enforce judgments obtained in United States courts based upon the civil liability provisions of United States federal securities laws or other laws of the United States against those persons or the Company. There is doubt as to the enforceability, in original actions in Canadian courts, of liabilities based upon United States federal securities laws and as to the enforceability in Canadian courts of judgments of United States courts obtained in actions based upon the civil liability provisions of the United States federal securities laws. Therefore, it may not be possible to enforce those actions against the Company, certain of the Company's directors and officers or the experts named in this Annual Report.
- Share Price & Shareholder Rights - Risk 3Future issuances of equity securities by us or sales by our existing shareholders may cause the price ?of our Common Shares to fall.?
The market price of our Common Shares could decline as a result of issuances of securities or sales by our ?existing shareholders in the market, including by our directors, executive officers and significant shareholders, or ?the perception that these sales could occur. Sales of our Common Shares by shareholders might also make it ?more difficult for us to sell Common Shares at a time and price that we deem appropriate. We also expect to ?issue Common Shares in the future. Future issuances of Common Shares, or the perception that such issuances ?are likely to occur, could affect the prevailing trading prices of the Common Shares.?
- Share Price & Shareholder Rights - Risk 4There is no guarantee that an active trading market for our Common Shares will be maintained on ?the CSE and/or the Nasdaq. Investors may not be able to sell their Common Shares quickly or at the ?latest market price if the trading in our Common Shares is not active.?
Our Common Shares are currently listed on the CSE, Nasdaq, and the Frankfurt Stock Exchange, however, our shareholders may be unable to sell significant quantities of Common Shares into the public ?trading markets without a significant reduction in the price of their Common Shares, or at all and there can be no guarantee that an active trading market for the Common Shares ?may be maintained. There can be no assurance that ?there will be sufficient liquidity of our Common Shares on the trading market, and that we will continue to meet ?the listing requirements of the CSE, the Nasdaq or any other public listing exchange.
- Share Price & Shareholder Rights - Risk 5The market price of the Common Shares may be highly volatile.?
The market price of the Common Shares may be highly volatile and could be subject to wide fluctuations ?in response to a number of factors that are beyond our control, including but not limited ?to?- revenue or results of operations in any quarter failing to meet the expectations, published or otherwise, of ?the investment community;? - actual or anticipated changes or fluctuations in our results of operations;? - announcements by us or our competitors of new products or new or terminated significant contracts, ?commercial relationships or capital commitments;? - rumors and market speculation involving us or other companies in our industry;? - changes in our executive management team or the composition of the board of directors of the Company (the "Board");? - fluctuations in the share prices of other companies in the technology and emerging growth sectors;? - general market conditions and macroeconomic trends driven by factors outside our control, such as the COVID-19 pandemic and/or geopolitical conflicts, including supply chain disruptions, market volatility, inflation, and labor challenges, among other factors; - actual or anticipated developments in our business or our competitors' businesses or the competitive ?landscape generally;? - litigation involving us, our industry or both, or investigations by regulators into our operations or those of ?competitors;? - announced or completed acquisitions of businesses or technologies by us or our competitors;? - new laws or regulations or new interpretations of existing laws or regulations applicable to our ?business;? - shareholder activism and related publicity;? - foreign exchange rates; and - other risk factors as set out in this Annual Report and in the documents incorporated by ?reference into this Annual Report.? If the market price of our Common Shares drops significantly, shareholders could institute securities class action ?lawsuits against us, regardless of the merits of such claims. Such a lawsuit could cause us to incur substantial ?costs and could divert the time and attention of our management and other resources from our business. This ?could harm our business, results of operations and financial condition.?
- Share Price & Shareholder Rights - Risk 6The Company's directors and officers may have conflicts of interest in conducting their duties.
Because directors and officers of the Company are or may become directors or officers of other ?reporting companies or have significant shareholdings in other technology companies, the directors and ?officers of the Company may have conflicts of interest in conducting their duties. The Company and its ?directors and officers will attempt to minimize such conflicts. In the event that such a conflict of interest ?arises at a meeting of the directors of the Company, a director who has such a conflict will abstain from ?voting for or against a particular matter in which the director has the conflict. In appropriate cases, the ?Company will establish a special committee of independent directors to review a particular matter in ?which several directors, or officers, may have a conflict. In determining whether or not the Company will ?participate in a particular program and the interest therein to be acquired by it, the directors will primarily ?consider the potential benefits to the Company, the degree of risk to which the Company may be ?exposed and its financial position at that time. Other than as indicated, the Company has no other ?procedures or mechanisms to deal with conflicts of interest.? Our Articles ?provide that the Company must indemnify a director or former director against all judgments, penalties ?or fines to which such person is or may be liable by reason of such person being or having been a director of the ?Company and the executive officers and directors may also have rights to indemnification from the Company, ?including ?pursuant to directors' and officers' liability insurance policies, that will survive termination of their ??agreements?.?
- Share Price & Shareholder Rights - Risk 7A shareholder's holding in the Company may be diluted if the Company issues additional Common ?Shares or other securities in the future.?
?The Company may issue additional Common Shares or other securities in the future, which may dilute a ?shareholder's holding in the Company. ?The Company's articles permit the issuance of an unlimited ?number of Common Shares, and shareholders have no pre-emptive rights in connection with further ?issuances of any securities. The directors of the Company have the discretion to ?determine if an ?issuance of Common Shares or other securities is warranted, the price at which any such securities are ?issued and the other ?terms of issue of Common Shares or securities. In addition, the Company may ?issue additional Common Shares upon the exercise of incentive stock options to ?acquire Common ?Shares under its share compensation plan or upon the exercise or conversion of other outstanding convertible securities of the Company, which will result in further dilution to shareholders. In addition, ?the issuance of Common Shares or other securities in any potential ?future acquisitions, if any, may also ?result in further dilution to shareholder interests.?
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