Cover
Cover | 12 Months Ended |
Dec. 31, 2021shares | |
Entity Addresses [Line Items] | |
Document Type | 20-F |
Amendment Flag | false |
Document Registration Statement | false |
Document Annual Report | true |
Document Transition Report | false |
Document Shell Company Report | false |
Document Period End Date | Dec. 31, 2021 |
Document Fiscal Period Focus | FY |
Document Fiscal Year Focus | 2021 |
Current Fiscal Year End Date | --12-31 |
Entity File Number | 001-40688 |
Entity Registrant Name | Draganfly Inc. |
Entity Central Index Key | 0001786286 |
Entity Incorporation, State or Country Code | Z4 |
Entity Address, Address Line One | 2108 St. George Avenue |
Entity Address, City or Town | Saskatoon |
Entity Address, State or Province | SK |
Entity Address, Country | CA |
Entity Address, Postal Zip Code | S7M 0K7 |
Title of 12(b) Security | Common Shares |
Trading Symbol | DPRO |
Security Exchange Name | NASDAQ |
Entity Well-known Seasoned Issuer | No |
Entity Voluntary Filers | No |
Entity Current Reporting Status | Yes |
Entity Interactive Data Current | Yes |
Entity Filer Category | Non-accelerated Filer |
Entity Emerging Growth Company | true |
Elected Not To Use the Extended Transition Period | false |
Document Accounting Standard | International Financial Reporting Standards |
Entity Shell Company | false |
Entity Bankruptcy Proceedings, Reporting Current | false |
Entity Common Stock, Shares Outstanding | 33,197,984 |
Auditor Firm ID | 1173 |
Auditor Name | DALE MATHESON CARR-HILTON LABONTE LLP |
Auditor Location | Vancouver, Canada |
Business Contact [Member] | |
Entity Addresses [Line Items] | |
Entity Address, Address Line One | 2108 St. George Avenue |
Entity Address, City or Town | Saskatoon |
Entity Address, State or Province | SK |
Entity Address, Country | CA |
Entity Address, Postal Zip Code | S7M 0K7 |
City Area Code | 800 |
Local Phone Number | 979.9794 |
Contact Personnel Name | Paul Sun |
Contact Personnel Email Address | paul.sun@draganfly.com |
Consolidated Statements of Fina
Consolidated Statements of Financial Position - CAD ($) | Dec. 31, 2021 | Dec. 31, 2020 |
Current Assets | ||
Cash and cash equivalents | $ 23,075,713 | $ 1,982,416 |
Receivables | 1,407,127 | 810,791 |
Inventory | 3,390,822 | 1,233,619 |
Notes receivable | 190,170 | |
Prepaids | 5,494,877 | 335,022 |
Total current assets | 33,558,709 | 4,361,848 |
Non-current Assets | ||
Goodwill | 5,940,409 | 2,166,563 |
Equipment | 297,043 | 153,870 |
Intangible assets | 593,901 | 273,867 |
Investments | 291,066 | |
Notes receivable | 964,006 | |
Right of use asset | 468,106 | 144,419 |
TOTAL ASSETS | 42,113,240 | 7,100,567 |
Current Liabilities | ||
Trade payables and accrued liabilities | 799,139 | 1,857,177 |
Customer deposits | 172,134 | 385,449 |
Deferred income | 73,286 | |
Loans payable | 6,745 | 62,978 |
Derivative liability | 5,560,002 | 748,634 |
Lease liability | 110,481 | 93,239 |
Total current liabilities | 6,721,787 | 3,147,477 |
Non-current Liabilities | ||
Deferred income | 5,062 | |
Loans payable | 86,572 | 34,938 |
Lease liability | 378,642 | 64,885 |
TOTAL LIABILITIES | 7,187,001 | 3,252,362 |
SHAREHOLDERS’ EQUITY | ||
Share capital | 81,038,365 | 36,943,304 |
Reserves – share-based payments | 6,406,117 | 3,024,007 |
Accumulated deficit | (52,322,182) | (36,119,210) |
Accumulated other comprehensive income (loss) | (196,061) | 104 |
TOTAL SHAREHOLDERS’ EQUITY | 34,926,239 | 3,848,205 |
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | $ 42,113,240 | $ 7,100,567 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) - CAD ($) | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
REVENUE | |||
Revenue from sales of goods | $ 5,103,399 | $ 3,087,223 | $ 248,939 |
Revenue from provision of services | 1,950,466 | 1,276,288 | 1,131,488 |
TOTAL REVENUE | 7,053,865 | 4,363,511 | 1,380,427 |
COST OF SALES | (4,410,777) | (2,603,911) | (218,800) |
GROSS PROFIT | 2,643,088 | 1,759,600 | 1,161,627 |
OPERATING EXPENSES | |||
Amortization | 135,966 | 43,518 | 8,386 |
Depreciation | 175,098 | 109,108 | 41,250 |
Director fees | 370,094 | ||
Insurance | 2,962,767 | 39,988 | 23,900 |
Office and miscellaneous | 6,455,998 | 3,387,865 | 2,103,732 |
Professional fees | 4,445,949 | 1,762,594 | 524,101 |
Research and development | 510,895 | 567,999 | 16,883 |
Share-based payments | 3,952,595 | 2,668,464 | 761,559 |
Travel | 143,904 | 25,617 | 30,896 |
Wages and salaries | 2,768,010 | 1,649,329 | 989,083 |
Total operating expenses | (21,921,276) | (10,254,482) | (4,499,790) |
OTHER INCOME (EXPENSE) | |||
Change in fair value of derivative liability | 8,149,812 | (748,634) | |
Finance and other costs | 5,074 | (23,117) | (171,905) |
Foreign exchange gain (loss) | 362,448 | (87,104) | 5,803 |
Gain on disposal of assets | 28,651 | ||
Gain (loss) on settlement of debt | (38,879) | 198,976 | |
Gain on forgiveness of debt | 127,711 | ||
Government income | 24,148 | 51,627 | |
Listing expense | (7,804,859) | ||
Loss on write-off of loan receivable | (13,560) | ||
Loss on write-off of notes receivable | (891,471) | ||
Loss on impairment of goodwill | (4,579,763) | ||
Other income (loss) | 4,968 | 1,197,465 | |
NET LOSS | (16,202,972) | (8,015,813) | (11,095,057) |
Items that may be reclassified to profit or loss | |||
Foreign exchange translation | 136,475 | 104 | |
Items that will not be reclassified to profit or loss | |||
Change in fair value of equity investments at FVOCI | (332,640) | ||
COMPREHENSIVE LOSS | $ (16,399,137) | $ (8,015,709) | $ (11,095,057) |
Net loss per share | |||
Basic & diluted | $ (0.59) | $ (0.48) | $ (1.16) |
Weighted average number of common shares outstanding - basic & diluted | 27,647,293 | 16,558,184 | 9,529,595 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Shareholders' Equity - CAD ($) | Issued capital [member] | Capital reserve [member] | Retained earnings [member] | Reserve of gains and losses on financial assets measured at fair value through other comprehensive income [member] | Accumulated other comprehensive income [member] | Total |
Balance at Dec. 31, 2018 | $ 12,561,342 | $ 882,180 | $ (17,576,131) | $ (4,132,609) | ||
Beginning balance, shares at Dec. 31, 2018 | 7,869,384 | |||||
IfrsStatementLineItems [Line Items] | ||||||
Shares issued for settlement of notes payable | $ 645,775 | 645,775 | ||||
Shares issued for settlement of notes payable, shares | 258,310 | |||||
Shares issued as transactions fees | $ 1,000,000 | 1,000,000 | ||||
Shares issued as transactions fees, shares | 400,000 | |||||
Recapitalization of Draganfly Inc. | $ 5,250,001 | 1,645,193 | 6,895,194 | |||
Recapitalization of Draganfly Inc., shares | 2,100,000 | |||||
Shares issued of settlement of trades payable | $ 22,662 | $ 22,662 | ||||
Shares issued of settlement of trades payable, shares | 9,065 | 9,065 | ||||
Shares issued for settlement of convertible debentures and accrued interest | $ 1,059,246 | $ 1,059,246 | ||||
Shares issued for settlement of convertible debentures and accrued interest, shares | 423,698 | 423,698 | ||||
Shares issued for exercise of warrants | $ 221,741 | (212,908) | $ 8,833 | |||
Shares issued for exercise of warrants, shares | 63,388 | |||||
Reclassification of unexercised conversion feature | (567,791) | 567,791 | ||||
Shares and warrants issued on private placement | $ 7,025,750 | 7,025,750 | ||||
Shares and warrants issued on private placement, shares | 2,810,300 | |||||
Stock-based compensation | 761,559 | 761,559 | ||||
Net loss | (11,095,057) | (11,095,057) | ||||
Translation of foreign operations | ||||||
Balance at Dec. 31, 2019 | $ 27,786,517 | 2,508,233 | (28,103,397) | 2,191,353 | ||
Beginning balance, shares at Dec. 31, 2019 | 13,934,145 | |||||
IfrsStatementLineItems [Line Items] | ||||||
Shares issued for exercise of warrants | $ 4,007,130 | (1,645,193) | 2,361,937 | |||
Shares issued for exercise of warrants, shares | 1,584,775 | |||||
Net loss | (8,015,813) | (8,015,813) | ||||
Shares issued for acquisition | $ 2,178,961 | 2,178,961 | ||||
Beginning balance, shares | 645,088 | |||||
Shares issued as finder’s fees | $ 100,000 | 100,000 | ||||
Shares issued as finder's fees, shares | 40,000 | |||||
Shares issued for debt settlement | $ 344,354 | 344,354 | ||||
Shares issued for debt settlement, shares | 111,082 | |||||
Shares issued for financing | $ 2,018,845 | 2,018,845 | ||||
Shares issued for financing, shares | 703,607 | |||||
Shares issued for exercise of RSUs | $ 507,497 | (507,497) | ||||
Beginning balance, shares | 199,998 | |||||
Share-based payments | 2,668,464 | 2,668,464 | ||||
Translation of foreign operations | 104 | 104 | ||||
Balance at Dec. 31, 2020 | $ 36,943,304 | 3,024,007 | (36,119,210) | 104 | 3,848,205 | |
Beginning balance, shares at Dec. 31, 2020 | 17,218,695 | |||||
IfrsStatementLineItems [Line Items] | ||||||
Net loss | (16,202,972) | (16,202,972) | ||||
Shares issued for acquisition | $ 2,303,999 | 1,241,250 | 3,545,249 | |||
Beginning balance, shares | 1,200,000 | |||||
Shares issued for financing | $ 36,092,187 | 36,092,187 | ||||
Shares issued for financing, shares | 11,584,657 | |||||
Shares issued for exercise of RSUs | $ 1,752,052 | (1,752,052) | ||||
Beginning balance, shares | 448,660 | |||||
Share-based payments | 3,952,595 | 3,952,595 | ||||
Translation of foreign operations | 136,475 | 136,475 | ||||
Share issue costs | (4,678,821) | 864,060 | (3,814,761) | |||
Shares issued for exercise of warrants | $ 4,929,790 | 4,929,790 | ||||
Shares isued for exercise of warrants, shares | 1,939,534 | |||||
Shares issued for exercise of stock options | $ 1,937,866 | (923,743) | 1,014,123 | |||
Beginning balance, shares | 405,499 | |||||
Shares issued in lieu of cash | $ 1,757,988 | 1,757,988 | ||||
Beginning balance, shares | 371,901 | |||||
Change in fair value of equity investments at FVOCI | (332,640) | (332,640) | ||||
Balance at Dec. 31, 2021 | $ 81,038,365 | $ 6,406,117 | $ (52,322,182) | $ (332,640) | $ 136,579 | $ 34,926,239 |
Beginning balance, shares at Dec. 31, 2021 | 33,168,946 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - CAD ($) | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
OPERATING ACTIVITIES | |||
Net loss | $ (16,202,972) | $ (8,015,813) | $ (11,095,057) |
Adjustments for: | |||
Amortization | 135,966 | 43,518 | 8,386 |
Depreciation | 175,098 | 109,108 | 41,250 |
Change in fair value of derivative liability | (8,149,812) | 748,634 | |
Impairment of notes receivable | 891,471 | ||
Impairment of goodwill | 4,579,763 | ||
Finance and other costs | (926) | 23,117 | 171,905 |
Gain on settlement of debt | 38,879 | (198,976) | |
Gain on forgiveness of debt | (127,711) | ||
Gain on disposal of assets | (28,651) | ||
Income from government assistance | (24,148) | (21,090) | |
Expense of non-financial asset | 15,389 | ||
Listing expense | 7,804,859 | ||
Shares Issued as acquisition cost | 100,000 | ||
Share-based payments | 3,952,595 | 2,568,464 | 761,559 |
Adjustment for profit loss | (14,642,965) | (4,532,894) | (2,519,336) |
Net changes in non-cash working capital items: | |||
Receivables | (596,336) | (1,481,944) | (126,799) |
Inventory | (2,157,203) | (555,371) | 12,622 |
Prepaids | (3,401,868) | 31,605 | (249,325) |
Trade payables and accrued liabilities | (1,044,133) | 1,261,066 | (1,005,121) |
Customer deposits | (213,315) | 139,490 | |
Deferred income | 51,186 | 5,062 | |
Funds used in operating activities | (22,004,634) | (5,132,986) | (3,887,959) |
INVESTING ACTIVITIES | |||
Cash paid for acquisition, net of cash received | (466,643) | (457,407) | 28,538 |
Purchase of equipment | (212,579) | (23,888) | (87,785) |
Disposal of equipment | 31,500 | ||
Purchase of investments | (623,706) | ||
Issuance of notes receivable | (2,002,678) | ||
Proceeds from sales of investments | 997,714 | ||
Funds provided by (used in) investing activities | (3,305,606) | 516,419 | (27,747) |
FINANCING ACTIVITIES | |||
Proceeds from issuance of common shares for financing | 44,255,651 | 2,018,845 | 6,534,583 |
Share issue costs | (3,814,762) | ||
Proceeds from issuance of common shares for warrants exercised | 4,929,790 | 2,361,937 | |
Proceeds from issuance of common shares for stock options exercised | 1,014,123 | ||
Proceeds from issuance of loans | 60,000 | 129,310 | |
Loans repayments | (4,319) | (5,062) | |
Proceeds from issuance of notes payable | 123,000 | 1,137,978 | |
Repayment of convertible debentures | (486,131) | ||
Repayment of notes payable | (183,000) | (882,770) | |
Repayment of loans | (44,428) | (192,084) | |
Repayment of lease liability | (128,996) | (83,442) | (38,000) |
Funds provided by financing activities | 46,267,059 | 4,169,504 | 6,265,660 |
Effects of exchange rate changes on cash | 136,478 | 104 | (22,366) |
Change in cash | 20,956,819 | (447,063) | 2,349,954 |
Cash, beginning of year | 1,982,416 | 2,429,375 | 101,787 |
Cash, end of year | 23,075,713 | 1,982,416 | 2,429,375 |
Cash and cash equivalents consist of the following: | |||
Cash held in banks | 22,729,212 | 1,839,871 | 2,429,375 |
Guaranteed investment certificate | 346,501 | 142,545 | |
Cash and cash equivalents | $ 23,075,713 | $ 1,982,416 | $ 2,429,375 |
NATURE AND CONTINUANCE OF OPERA
NATURE AND CONTINUANCE OF OPERATIONS | 12 Months Ended |
Dec. 31, 2021 | |
Nature And Continuance Of Operations | |
NATURE AND CONTINUANCE OF OPERATIONS | 1. NATURE AND CONTINUANCE OF OPERATIONS Draganfly Inc. (the “Company”) was incorporated on June 1, 2018 under the Business Corporations Act (British Columbia). The Company’s shares trade on the Canadian Securities Exchange (the “CSE”),” on the Nasdaq Capital Market (the “Nasdaq”) under the symbol “DPRO” and on the Frankfurt Stock Exchange under the symbol “3U8”. The Company’s head office is located at 2108 St. George Avenue, Saskatoon, SK, S7M 0K7 and its registered office is located at 2800 – 666 Burrard Street, Vancouver, BC, V6C 2Z7. COVID-19 The outbreak of the coronavirus, also known as “COVID-19,” spread across the globe and is impacting worldwide economic activity. Government authorities have implemented emergency measures to mitigate the spread of the virus. These measures, which include the implementation of travel bans, self-imposed quarantine periods, and social distancing, have caused material disruption to business globally. Governments and central banks reacted with significant monetary and fiscal interventions designed to stabilize economic conditions. The Company will continue to monitor the impact of the COVID-19 pandemic, the duration and impact of which is unknown at this time which may include further disruptions to global supply chains and the manufacturing and delivery of parts that the Company relies on for its products. Although it is not possible to reliably estimate the length and severity of these developments and the impact on the financial results and condition of the Company and its operations in future periods, such impacts are not expected to be significant going forward. Aside from the acquisition of Dronelogics and being opportunistic on other partnerships or acquisitions, the Company has expanded its products and services offered to include health and telehealth applications relating to COVID-19, as a way to mitigate the effects of COVID-19. Share consolidation During the year ended December 31, 2021 in conjunction with its Regulation A financing, the Company underwent a share consolidation at a 5-1 ratio. All reference to share, per share amounts, warrants, RSU’s and stock options in these financial statements have been retroactively restated to reflect the consolidation. |
BASIS OF PREPARATION
BASIS OF PREPARATION | 12 Months Ended |
Dec. 31, 2021 | |
BASIS OF PREPARATION | 2. BASIS OF PREPARATION Statement of Compliance These consolidated financial statements have been prepared in accordance with International Financial Reporting Standards (“IFRS”) as issued by the International Accounting Standards Board (“IASB”) and interpretations issued by the International Reporting Interpretation Committee (“IFRIC”). The principal accounting policies applied in the preparation of these consolidated financial statements are set out below. These policies have been consistently applied to all years presented, unless otherwise stated. These consolidated financial statements were authorized for issue by the Board of Directors on April 3, 2022. Basis of consolidation Each subsidiary is fully consolidated from the date of acquisition, being the date on which the Company obtains control, and continue to be consolidated until the date when such control ceases. The consolidated financial statements include the accounts and results of operations of the Company and its wholly owned subsidiaries listed in the following table: SCHEDULE OF RESULTS OF OPERATIONS Name of Subsidiary Place of Incorporation Ownership Interest Draganfly Innovations Inc. Canada 100% Draganfly Innovations USA, Inc. US 100% Dronelogics Systems Inc. Canada 100% All intercompany balances and transactions were eliminated on consolidation. Significant estimates and assumptions The preparation of financial statements in accordance with IFRS requires the Company to use judgment in applying its accounting policies and make estimates and assumptions about reported amounts at the date of the consolidated financial statements and in the future. The Company’s management reviews these estimates and underlying assumptions on an ongoing basis, based on experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. Revisions to estimates are adjusted for prospectively in the period in which the estimates are revised. Impairment of Non-financial assets The CGU’s recoverable amount is evaluated using the higher of the value in use and fair value less costs to sell calculations. In calculating the recoverable amount, the Company utilizes discounted cash flow techniques. Management calculates the discounted cash flows based upon its best estimate of a number of economic, operating, engineering, environmental, political and social assumptions. Any changes in the assumptions due to changing circumstances may affect the calculation of the recoverable amount. Share-based payments The cost of share-based payment transactions with directors, officers and employees are measured by reference to the fair value of the equity instruments. Estimating fair value for share-based payment transactions requires determining the most appropriate valuation model, which is dependent on the terms and conditions of the grant. This estimate also requires determining and making assumptions about the most appropriate inputs to the valuation model including the expected life, volatility, risk-free interest rate, expected forfeiture rate and dividend yield of the stock option. Draganfly Inc. Notes to the Consolidated Financial Statements For The Year Ended December 31, 2021 Expressed in Canadian Dollars 2. SIGNIFICANT ACCOUNTING POLICIES AND BASIS OF PREPARATION (CONT’D Income taxes Provisions for income taxes are made using the best estimate of the amount expected to be paid based on a qualitative assessment of all relevant factors. The Company reviews the adequacy of these income tax provisions at the end of each reporting period. However, it is possible that at some future date an additional liability could result from audits by tax authorities. Where the final outcome of these tax-related matters is different from the amounts that were initially recorded, such differences will affect the tax provisions in the period in which such determination is made. Deferred tax assets are recognized when it is determined that the company is likely to recognize their recovery from the generation of taxable income. Inventory Inventory is valued at the lower of cost and net realizable value. Net realizable value is determined with reference to the estimated selling price. The Company estimates selling price based upon assumptions about future demand and current and anticipated retail market conditions. The future realization of these inventories may be affected by future technology or other market-driven changes that may reduce future selling prices. Contingencies The assessment of contingencies involves the exercise of significant judgment and estimates of the outcome of future events. In assessing loss contingencies related to legal proceedings that are pending against the Company and that may result in regulatory or government actions that may negatively impact the Company’s business or operations, the Company and its legal counsel evaluate the perceived merits of the legal proceeding or unasserted claim or action as well as the perceived merits of the nature and amount of relief sought or expected to be sought, when determining the amount, if any, to recognize as a contingent liability or when assessing the impact on the carrying value of the Company’s assets. Contingent assets are not recognized in the consolidated financial statements. Useful lives of equipment and intangible assets Estimates of the useful lives of equipment and intangible assets are based on the period over which the assets are expected to be available for use. The estimated useful lives are reviewed annually and are updated if expectations differ from previous estimates due to physical wear and tear, technical or commercial obsolescence, and legal or other limits on the use of the relevant assets. In addition, the estimation of the useful lives of the relevant assets may be based on internal technical evaluation and experience with similar assets. It is possible, however, that future results of operations could be materially affected by changes in the estimates brought about by changes in the factors mentioned above. The amounts and timing of recorded expenses for any period would be affected by changes in these factors and circumstances. A reduction in the estimated useful lives of the equipment would increase the recorded expenses and decrease the non-current assets. Significant judgments The preparation of consolidated financial statements in accordance with IFRS requires the Company to make judgments, apart from those involving estimates, in applying accounting policies. The most significant judgments in applying the Company’s consolidated financial statements include: Business combinations The definition of whether a set of assets acquired and liabilities assumed constitute a business may require the company to make certain judgements taking into account all facts and circumstances. A business is presumed to be an integrated set of activities and assets capable of being conducted and managed for the purpose of providing a return in the form of dividends, lower costs, or economic benefits. Draganfly Inc. Notes to the Consolidated Financial Statements For The Year Ended December 31, 2021 Expressed in Canadian Dollars 2. SIGNIFICANT ACCOUNTING POLICIES AND BASIS OF PREPARATION (CONT’D Business combination versus asset acquisition The Company considered the applicability of IFRS 3 – Business Combinations (“IFRS 3”) with respect to the Acquisitions (Notes 3, 4, and 5). IFRS 3 defines a business as having a system where inputs enter a process to produce outputs. The Company has determined that the acquisition of Dronelogics Systems Inc. and Vital Intelligence Inc. are business combinations and, accordingly, have accounted for as such. Other significant judgments − The assessment of the Company’s ability to continue as a going concern and whether there are events or conditions that may give rise to significant uncertainty; − the classification of financial instruments; − the assessment of revenue recognition using the five-step approach under IFRS 15 and the collectability of amounts receivable; − the determination of whether a set of assets acquired and liabilities assumed constitute a business; and − the determination of the functional currency of the company. Foreign currency translation Transactions in foreign currencies are translated into Canadian dollars at rates of exchange at the time of such transactions. Monetary assets and liabilities are translated at the reporting period rate of exchange. Non-monetary assets and liabilities are translated at historical exchange rates. Revenue and expenses denominated in a foreign currency are translated at the monthly average exchange rate. Gains and losses resulting from the translation adjustments are included in income. The functional currencies for the parent company and each subsidiary are as follows: Draganfly Inc. Canadian Dollar Draganfly Innovations Inc. Canadian Dollar Draganfly Innovations USA, Inc. US Dollar Dronelogics Systems Inc. Canadian Dollar Financial statements of subsidiaries for which the functional currency is not the Canadian dollar are translated into Canadian dollars as follows: all asset and liability accounts are translated at the year-end exchange rate and all earnings and expense accounts and cash flow statement items are translated at average exchange rates for the year. The resulting translation gains and losses are recorded as exchange differences on translating foreign operations in other comprehensive income. Share-based payments The Company operates a stock option plan. Share-based payments to employees are measured at the fair value of the instruments issued and amortized over the vesting periods. Share-based payments to non-employees are measured at the fair value of goods or services received or the fair value of the equity instruments issued, if it is determined the fair value of the goods or services cannot be reliably measured, and are recorded at the date the goods or services are received. The corresponding amount is recorded to the option reserve. The fair value of options is determined using a Black–Scholes Option Pricing Model. The number of shares and options expected to vest is reviewed and adjusted at the end of each reporting period such that the amount recognized for services received as consideration for the equity instruments granted shall be based on the number of equity instruments that eventually vest. Amounts recorded for forfeited or expired unexercised options are transferred to deficit in the year of forfeiture or expiry. Amounts recorded for forfeited unvested options are reversed in the period the forfeiture occurs. Share-based payment expense relating to cash-settled awards, including restricted share units is accrued over the vesting period of the units based on the quoted market value of Company’s common shares. As these awards will be settled in cash, the expense and liability are adjusted each reporting period for changes in the underlying share price. Restricted Share Units The restricted share units (“RSUs”) entitle employees, directors, or officers to cash payments payable upon vesting based on vesting terms determined by the Company’s Board of Directors at the time of the grant. RSUs are measured at the fair value of awards on the grant date using the prior days closing price. Amounts recorded for forfeited unvested RSUs are reversed in the period the forfeiture occurs. The expense is recognized on a graded vesting basis over the vesting period, with a corresponding charge to profit or loss. Loss per share Basic loss per share is calculated by dividing the loss attributable to common shareholders by the weighted average number of common shares outstanding in the period. For all periods presented, the loss attributable to common shareholders equals the reported loss attributable to owners of the Company. Diluted income per share is calculated by the treasury stock method. Under the treasury stock method, the weighted average number of common shares outstanding for the calculation of diluted loss per share assumes that the proceeds to be received on the exercise of dilutive share options and warrants are used to repurchase common shares at the average market price during the period. For the periods presented, the Company incurred a loss and therefore basic loss per share equals diluted loss per share. a) Financial assets Classification and measurement The Company classifies its financial assets in the following categories: at fair value through profit or loss (“FVTPL”), at fair value through other comprehensive income (“FVTOCI”) or at amortized cost. The classification depends on the purpose for which the financial assets were acquired. Management determines the classification of its financial assets at initial recognition. Draganfly Inc. Notes to the Consolidated Financial Statements For The Year Ended December 31, 2021 Expressed in Canadian Dollars 2. SIGNIFICANT ACCOUNTING POLICIES AND BASIS OF PREPARATION (CONT’D The classification of debt instruments is driven by the business model for managing the financial assets and their contractual cash flow characteristics. Debt instruments are measured at amortized cost if the business model is to hold the instrument for collection of contractual cash flows and those cash flows are solely principal and interest. If the business model is not to hold the debt instrument, it is classified as FVTPL. Financial assets with embedded derivatives are considered in their entirety when determining whether their cash flows are solely payments of principal and interest. Equity instruments that are held for trading (including all equity derivative instruments) are classified as FVTPL, for other equity instruments, on the day of acquisition the Company can make an irrevocable election (on an instrument by-instrument basis) to designate them as at FVTOCI. Financial assets at FVTPL Financial assets carried at FVTPL are initially recorded at fair value and transaction costs are expensed in the income statement. Realized and unrealized gains and losses arising from changes in the fair value of the financial asset held at FVTPL are included in the income statement in the period in which they arise. Derivatives are also categorized as FVTPL unless they are designated as hedges. Financial assets at FVTOCI Investments in equity instruments at FVTOCI are initially recognized at fair value plus transaction costs. Subsequently they are measured at fair value, with gains and losses arising from changes in fair value recognized in other comprehensive income. There is no subsequent reclassification of fair value gains and losses to profit or loss following the derecognition of the investment. Financial assets at amortized cost Financial assets at amortized cost are initially recognized at fair value and subsequently carried at amortized cost less any impairment. They are classified as current assets or non-current assets based on their maturity date. Impairment of financial assets at amortized cost The Company recognizes a loss allowance for expected credit losses on financial assets that are measured at amortized cost. At each reporting date, the loss allowance for the financial asset is measured at an amount equal to the lifetime expected credit losses if the credit risk on the financial asset has increased significantly since initial recognition. If at the reporting date, the financial asset has not increased significantly since initial recognition, the loss allowance is measured for the financial asset at an amount equal to twelve month expected credit losses. For trade receivables the Company applies the simplified approach to providing for expected credit losses, which allows the use of a lifetime expected loss provision. Impairment losses on financial assets carried at amortized cost are reversed in subsequent periods if the amount of the loss decreases and the decrease can be objectively related to an event occurring after the impairment was recognized. Derecognition of financial assets Financial assets are derecognized when they mature or are sold, and substantially all the risks and rewards of ownership have been transferred. Gains and losses on derecognition of financial assets classified as FVTPL or amortized cost are recognized in the income statement. Gains or losses on financial assets classified as FVTOCI remain within accumulated other comprehensive income. Draganfly Inc. Notes to the Consolidated Financial Statements For The Year Ended December 31, 2021 Expressed in Canadian Dollars 2. SIGNIFICANT ACCOUNTING POLICIES AND BASIS OF PREPARATION (CONT’D b) Financial liabilities The Company classifies its financial liabilities into one of two categories as follows: Fair value through profit or loss (FVTPL) - This category comprises derivatives and financial liabilities incurred principally for the purpose of selling or repurchasing in the near term. They are carried at fair value with changes in fair value recognized in profit or loss. Other financial liabilities - This category consists of liabilities carried at amortized cost using the effective interest method. Trade payables, customer deposits and loans are included in this category. The Company derecognizes a financial liability when its contractual obligations are discharged, cancelled or expire. Derecognition of financial liabilities Financial liabilities are derecognized when its contractual obligations are discharged, cancelled, or expire. The Company also derecognizes a financial liability when the terms of the liability are modified such that the terms and/or cash flows of the modified instrument are substantially different, in which case a new financial liability based on the modified terms is recognized at fair value. Gains and losses on derecognition are generally recognized in profit or loss. Draganfly Inc. Notes to the Consolidated Financial Statements For The Year Ended December 31, 2021 Expressed in Canadian Dollars 2. SIGNIFICANT ACCOUNTING POLICIES AND BASIS OF PREPARATION (CONT’D) Impairment of non-financial assets The carrying amounts of the Company’s non-financial assets are reviewed at each reporting date to determine whether there is any indication of impairment. If indicators exist, then the asset’s recoverable amount is estimated. The recoverable amounts of the following types of intangible assets are measured annually, whether or not there is any indication that it may be impaired: ● an intangible asset with an indefinite useful life; ● an intangible asset not yet available for use; and ● goodwill recognized in a business combination. The recoverable amount of an asset or cash-generating unit (“CGU”) is the greater of its value in use and its fair value less costs to sell. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset. For the purpose of impairment testing, assets that cannot be tested individually are grouped together into the smallest identifiable group of assets that generates cash inflows from continuing use that are largely independent of the cash inflows of other assets or groups of assets. If there is an indication that a corporate asset may be impaired, then the recoverable amount is determined for the CGU to which the corporate asset belongs. An impairment loss is recognized if the carrying amount of an asset or its CGU exceeds its estimated recoverable amount. Impairment losses are recognized in the statement of comprehensive loss. Impairment losses recognized in respect of CGUs are allocated first to reduce the carrying amount of any goodwill allocated to the units, and then to reduce the carrying amounts of the other assets in the unit (group of units) on a pro rata basis. In respect of assets other than goodwill and intangible assets that have indefinite useful lives, impairment losses recognized in prior periods are assessed at each reporting date for any indications that the loss has decreased or no longer exists. An impairment loss is reversed in a subsequent period when there has been an increase in the recoverable amount of a previously impaired asset or CGU. An impairment loss is reversed only to the extent that the asset’s carrying amount does not exceed the carrying amount that would have been determined, net of depreciation or amortization, if no impairment loss had been recognized. Income taxes Current income tax: Current income tax assets and liabilities for the current period are measured at the amount expected to be recovered from or paid to the taxation authorities. The tax rates and tax laws used to compute the amount are those that are enacted or substantively enacted, at the reporting date, in the countries where the Company operates and generates taxable income. Current income tax relating to items recognized directly in other comprehensive income or equity is recognized in other comprehensive income or equity and not in profit or loss. Management periodically evaluates positions taken in the tax returns with respect to situations in which applicable tax regulations are subject to interpretation and establishes provisions where appropriate. Deferred income tax: Deferred income tax is recognized, using the asset and liability method, on temporary differences at the reporting date arising between the tax bases of assets and liabilities and their carrying amounts for financial reporting. The carrying amount of deferred income tax assets is reviewed at the end of each reporting period and recognized only to the extent that it is probable that sufficient taxable profit will be available to allow all or part of the deferred income tax asset to be utilized. Deferred income tax assets and liabilities are measured at the tax rates that are expected to apply to the year when the asset is realized or the liability is settled, based on tax rates (and tax laws) that have been enacted or substantively enacted by the end of the reporting period. Deferred income tax assets and deferred income tax liabilities are offset, if a legally enforceable right exists to set off current tax assets against current income tax liabilities and the deferred income taxes relate to the same taxable entity and the same taxation authority. Draganfly Inc. Notes to the Consolidated Financial Statements For The Year Ended December 31, 2021 Expressed in Canadian Dollars 2. SIGNIFICANT ACCOUNTING POLICIES AND BASIS OF PREPARATION (CONT’D Inventory Inventory consists of raw materials for manufacturing of multi-rotor helicopters, industrial areal video systems, civilian small unmanned aerial systems or vehicles, health monitoring equipment, and wireless video systems. Inventory is initially valued at cost and subsequently at the lower of cost and net realizable value. Net realizable value is determined as the estimated selling price in the ordinary course of business less the estimated costs of completion and the estimated costs necessary to make the sale. Cost is determined using the weighted average cost basis. The Company reviews inventory for obsolete and slow-moving goods and any such inventory is written-down to net realizable value. Revenue recognition Revenue comprises the fair value of consideration received or receivable for the sale of goods and consulting services in the ordinary course of the Company’s business. Revenue is shown net of return allowances and discounts. Sales of goods The Company manufactures and sells a range of multi-rotor helicopters, industrial aerial video systems, and civilian small unmanned aerial systems or vehicles. Sales are recognized at a point-in-time when control of the products has transferred, being when the products are delivered to the customer and there is no unfulfilled obligation that could affect the customer’s acceptance of the products. Delivery occurs when the products have been shipped to the specific location or picked up by the customer, the risks of obsolescence and loss have been transferred to the customer. Revenue from these sales is recognized based on the price specified in the contract, net of the estimated discounts and returns. Accumulated experience is used to estimate and provide for the discounts and returns, using the expected value method, and revenue is only recognized to the extent that it is highly probable that a significant reversal will not occur. To date, returns have not been significant. No element of financing is deemed present as the sales are made with a credit term of 30 days, which is consistent with market practice. Some contracts include multiple deliverables, such as the manufacturing of hardware and support. Support is performed by another party and does not include an integration service. It is therefore accounted for as a separate performance obligation. In this case, the transaction price will be allocated to each performance obligation based on the stand-alone selling prices. Where these are not directly observable, they are estimated based on expect cost plus margin. A receivable is recognized when the goods are delivered as this is the point in time that the consideration is unconditional because only the passage of time is required before the payment is due. Services The Company provides consulting, custom engineering, drones as a service, and investigating and solving on a project-by-project basis under fixed-price and variable price contracts. Revenue from providing services is recognized in the accounting period in which the services are rendered. For fixed-price contracts, revenue is recognized based on the actual service provided to the end of the reporting period as a proportion of the total services to be provided. This is determined based on the actual labour hours spend relative to the total expected labour hours. If contracts include the manufacturing of hardware, revenue for the hardware is recognized at a point in time when the hardware is delivered, the legal title has passed and the customer has accepted the hardware. Estimates of revenues, costs or extent of progress toward completion are revised if circumstances change. Any resulting increases or decreases in estimated revenues or costs are reflected in profit or loss in the period in which the circumstances that give rise to the revision become known by management. Draganfly Inc. Notes to the Consolidated Financial Statements For The Year Ended December 31, 2021 Expressed in Canadian Dollars 2. SIGNIFICANT ACCOUNTING POLICIES AND BASIS OF PREPARATION (CONT’D In case of fixed-price contracts, the customer pays the fixed amount based on a payment schedule. If the services rendered by the Company exceed the payment, a contract asset is recognized. If the payments exceed the services rendered, a contract liability is recognized. If the contract includes an hourly fee, revenue is recognized in the amount to which the Company has a right to invoice. Customers are invoiced on a monthly basis and consideration is payable when invoiced. Cost of Goods Sold Cost of sales includes the expenses incurred to acquire and produce inventory for sale, including product costs, freight costs, as well as provisions for reserves related to product shrinkage, excess or obsolete inventory, or lower of cost and net realizable value adjustments as required. Intangible Assets and Goodwill An intangible asset is an identifiable asset without physical substance. An asset is identifiable if it is separable, or arises from contractual or legal rights, regardless of whether those rights are transferrable or separable from the Company or from other rights and obligations. Intangible assets include intellectual property, which consists of patent and trademark applications. Intangible assets acquired externally are measured at cost less accumulated amortization and impairment losses. The cost of a group of intangible assets acquired is allocated to the individual intangible assets based on their relative fair values. The cost of intangible assets acquired externally comprises its purchase price and any directly attributable cost of preparing the asset for its intended use. Research and development costs incurred subsequent to the acquisition of externally acquired intangible assets and on internally generated intangible assets are accounted for as research and development costs. Intangible assets with finite useful lives are amortized on a straight line basis over the expected life of each intellectual property to write off the cost of the assets from the date they are available for use. Goodwill represents the excess of the value of the consideration transferred over the fair value of the net identifiable assets and liabilities acquired in a business combination. Goodwill is allocated to the cash generating unit to which it relates. Equipment Equipment is stated at historical cost less accumulated depreciation and accumulated impairment losses. Subsequent costs are included in the asset’s carrying amount or recognized as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the item will flow to the Company and the cost of the item can be measured reliably. The carrying amount of the replaced part is derecognized. All other repairs and maintenance are charged to the statement of comprehensive loss during the financial period in which they are incurred. Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognized in the statement of comprehensive loss. Depreciation is generally calculated on a declining balance method to write off the cost of the assets to their residual values over their estimated useful lives. Depreciation for leasehold improvements is fully expensed over the expected term of the lease. The depreciation rates applicable to each category of equipment are as follows: Draganfly Inc. Notes to the Consolidated Financial Statements For The Year Ended December 31, 2021 Expressed in Canadian Dollars 2. SIGNIFICANT ACCOUNTING POLICIES AND BASIS OF PREPARATION (CONT’D) SCHEDULE OF CLASS OF EQUIPMENT Class of equipment Depreciation rate Computer equipment 30% Furniture and equipment 20% Leasehold improvements Over expected life of lease Software 30% Vehicles 30% Research and development expenditures Expenditures on research are expensed as incurred. Research activities include formulation, design, evaluation and final selection of possible alternatives, products, processes, systems or services. Development expenditures are expensed as incurred unless the Company can demonstrate all of the following: (i) the technical feasibility of completing the intangible asset so that it will be available for use or sale; (ii) its intention to complete the intangible asset and use or sell it; (iii) its ability to use or sell the intangible asset; (iv) how the intangible asset will generate probable future economic benefits. Among other things, the Company can demonstrate the existence of a market for the output of the intangible asset or the intangible asset itself or, if it is to be used internally, the usefulness of the intangible asset; (v) the availability of adequate technical, financial and other resources to complete the development and to use or sell the intangible asset; and (vi) its ability to measure reliably the expenditure attributable to the intangible asset during its development. Government Assistance Government grants are recognized when there is reasonable assurance that the grant will be received and all attached conditions will be complied with. When the grant relates to an expense item, it is recognized as income on a systematic basis over the period that the related costs, for which it is intended to compensate, are expensed. When the grant relates to an asset, the cost of the asset is reduced by the amount of the grant and the grant is recognized as income in equal amounts over the expected useful life of the asset. SR&ED Investment tax credits The Company claims federal investment tax credits as a result of incurring scientific research and experimental development (“SR&ED”) expenditures. Federal investment tax credits are recognized when the related expenditures are incurred and there is reasonable assurance of their realization. Federal investment tax credits are accounted for as a reduction of research and development expense for items of a period expense nature or as a reduction of property and equipment for items of a capital nature. Management has made a number of estimates and assumptions in determining the expenditures elig |
DRONELOGICS ACQUISITION
DRONELOGICS ACQUISITION | 12 Months Ended |
Dec. 31, 2021 | |
DRONELOGICS ACQUISITION | 3. DRONELOGICS ACQUISITION On April 30, 2020, the Company acquired all of the issued and outstanding shares of Dronelogics Systems Inc. (“Dronelogics”), excluding the cinematography division, 500,000 645,088 In connection with the Transaction, the Company paid fees of $ 160,000 100,000 40,000 2.50 60,000 89,000 14,000 70,000 75,000 The purchase price allocation (“PPA”) is as follows: SCHEDULE OF PURCHASE PRICE ALLOCATION Number of shares of Draganfly Inc. 645,088 Fair value of common shares $ 4.15 Fair value of shares of Draganfly Inc. $ 2,178,960 Cash portion of purchase price 500,000 Total $ 2,678,960 Draganfly Inc. Notes to the Consolidated Financial Statements For The Year Ended December 31, 2021 Expressed in Canadian Dollars 3. DRONELOGICS ACQUISITION (CONT’D) Tangible assets acquired Cash $ 42,593 Accounts receivable 98,852 Inventory 629,684 Prepaids and deposits 93,997 Other current assets 3,014 Capital assets 54,946 Right-of-use assets 83,428 Accounts payable and accrued liabilities (222,766 ) Customer deposits (245,959 ) Loans (245,752 ) Other current liabilities (8,437 ) Lease liabilities (87,203 ) Total tangible assets acquired 196,397 Identifiable intangible assets Customer relationships 197,000 Website 119,000 Total identifiable intangible assets 316,000 Goodwill 2,166,563 Total consideration $ 2,678,960 The Company estimated the fair value as follows: ● Customer relationships based on an income approach, specifically multi-period excess earnings method, by identifying key customers, applying attribution rate of 15 18 ● Website based on an income approach, specifically relief from royalty methodology, using a reasonable royalty rate of 0.5 17 Furthermore, the excess of the consideration paid over the fair value of the identifiable assets (liabilities) acquired was recognized as goodwill, which primarily consisted of the assembled workforce. From the date of the acquisition to December 31, 2020, the acquired business contributed $ 4,086,350 of revenue and a net income of $ 434,528 . Draganfly Inc. Notes to the Consolidated Financial Statements For The Year Ended December 31, 2021 Expressed in Canadian Dollars |
VITAL INTELLIGENCE ACQUISITION
VITAL INTELLIGENCE ACQUISITION | 12 Months Ended |
Dec. 31, 2021 | |
Vital Intelligence Acquisition | |
VITAL INTELLIGENCE ACQUISITION | 4. VITAL INTELLIGENCE ACQUISITION On March 25, 2021, the Company acquired the assets of Vital Intelligence Inc. (“Vital”), a company that had developed a health/telehealth platform that could detect a number of key underlying respiratory symptoms. The Company acquired it to diversify its existing product line as well as recognized opportunities that an initial focus on COVID-19 screening set of technologies would most likely lead to other facets within the healthcare field creating revenue growth from a new vertical, for consideration of: (a) a cash payment of $ 500,000 and (b) 1,200,000 units of the Company with each unit being comprised of one common share and one warrant (the “Acquisition”). Each warrant will entitle the holder to acquire one common share for a period of 24 months following closing for $ 13.35 one year 300,000 The units were issued on March 22, 2021 . On August 19, 2021 the parties agreed to reduce the final payment from $ 250,000 to $ 227,984 due to certain assets listed in the purchase agreement had not been delivered by Vital. The units of the Company are to be releasable from escrow in accordance with the terms and conditions of the agreement, as follows: a) 300,000 b) 300,000 2,000,000 c) 300,000 4,000,000 d) 300,000 6,000,000 Upon acquisition, the 900,000 ● A weighted average probability of achieving the milestones necessary to release the shares held in escrow, and ● Discounted due to the lack of liquidity. On acquisition, the fair value of the derivative liability (note 20) was $ 4,797,717 . At December 31, 2021, the liability was revalued based upon new weighted average probabilities of achieving the revenue milestones. As a result, the fair value was adjusted to $ 694,230 , with the difference flowing through the consolidated statement of loss. SCHEDULE OF CONTINGENT CONSIDERATION Contingent consideration Fair value of contingent consideration $ 4,797,717 Change in fair value of contingent consideration (4,103,487 ) Contingent consideration at December 31, 2021 (note 20) $ 694,230 The PPA is as follows: SCHEDULE OF PURCHASE PRICE ALLOCATION FOR VITAL INTELLIGENCE Number of units of Draganfly Inc. 578,248 Fair value of units $ 14.43 Fair value of units of Draganfly Inc. $ 8,342,966 Cash portion of purchase price 466,643 Total $ 8,809,609 Identifiable intangible assets Brand $ 23,000 Software 433,000 456,000 Goodwill 8,353,609 Total consideration $ 8,809,609 Draganfly Inc. Notes to the Consolidated Financial Statements For The Year Ended December 31, 2021 Expressed in Canadian Dollars 4. VITAL INTELLIGENCE ACQUISITION (CONT’D) Significant estimates are as follows: ● Number of units issued based upon a weighted average calculation for the Company achieving the revenue targets. ● Brand fair value based on an income approach, specifically relief from royalty methodology, using a reasonable royalty rate of 0.25 % and discount rate of 14.4 % per annum. ● Software fair value based on an income approach, specifically relief from royalty methodology, using a reasonable royalty rate of 5.0 % and discount rate of 14.4 % per annum. Furthermore, the excess of the consideration paid over the fair value of the identifiable assets (liabilities) acquired was recognized as goodwill, which primarily consisted of continued development of the technology platform integrating the latest technological developments. From the date of the acquisition to December 31, 2021, Vital contributed $ 115,369 of revenue and a net loss of $ 203,231 . |
AMALGAMATION
AMALGAMATION | 12 Months Ended |
Dec. 31, 2021 | |
AMALGAMATION | 5. AMALGAMATION On January 31, 2019, the Company and Draganfly Innovations entered into the BCA providing for a three-cornered amalgamation among the Company, Draganfly Innovations, and Merger Co. As of August 15, 2019, the Amalgamation closed and the Company acquired, on a one for 1.794 basis, all of the issued and outstanding Draganfly Innovations shares (the “Draganfly Innovations Shares”) in exchange for 8,527,671 This resulted in a reverse take-over, of the Company, by the shareholders of Draganfly Innovations. At the time of the Amalgamation, the Company did not constitute a business as defined under IFRS 3; therefore, the Amalgamation is accounted under IFRS 2, where the difference between the consideration given to acquire the Company and the net asset value of the Company is recorded as a listing expense to net loss. As Draganfly Innovations is deemed to be the accounting acquirer for accounting purposes, these consolidated financial statements present the historical financial information of Draganfly Innovations up to the date of the Amalgamation. SUMMARY OF HISTORICAL FINANCIAL INFORMATION Number of shares of Draganfly Inc. 2,100,000 Fair value of common shares in concurrent financing $ 2.50 Fair value of shares of Draganfly Inc. $ 5,250,001 Fair value of warrants 1,645,193 Fair value of shares issued for transaction fees 1,000,000 Net assets acquired $ (90,335 ) Listing expense $ 7,804,859 Fair value of the Company acquired, net of liabilities Cash $ 28,538 Accounts receivable 4,991 Loans receivable 963,269 Accounts payable and accrued liabilities (406,463 ) Subscription receipts (500,000 ) Net of liabilities $ 90,335 The fair value of 10,500,001 2.50 Draganfly Inc. Notes to the Consolidated Financial Statements For The Year Ended December 31, 2021 Expressed in Canadian Dollars 5. AMALGAMATION (CONT’D) Prior to the closing of the Amalgamation, Draganfly Innovations issued 222,965 1,000,000 The Company assumed 800,000 0.50 1,645,193 SUMMARY OF FAIR VALUE MEASUREMENT INPUTS AND VALUATION TECHNIQUES Risk-free interest rate 0.86 Estimate life 1.48 Expected volatility 100 Expected dividend yield 0 As at August 15, 2019, the Company received $ 7,025,750 2.50 2.50 |
CASH AND CASH EQUIVALENTS
CASH AND CASH EQUIVALENTS | 12 Months Ended |
Dec. 31, 2021 | |
CASH AND CASH EQUIVALENTS | 6. CASH AND CASH EQUIVALENTS SCHEDULE OF CASH AND CASH EQUIVALENTS December 31, 2021 December 31, 2020 Cash held in banks $ 22,729,212 $ 1,839,871 Guaranteed investment certificates 346,501 142,545 Cash and Cash Equivalents $ 23,075,713 $ 1,982,416 On March 27, 2020, the Company purchased a $ 142,000 1 0.50 142,710 1 0.10 On May 28, 2021, the Company purchased an additional $ 140,000 GIC to further secure its credit cards. The terms of the GIC are for 1 year at a rate of 0.35 % per annum On December 21, 2021, the Company purchased an additional $ 50,000 USD GIC to further secure its credit cards. The terms of the GIC are for 1 year at 0.05 % per annum. All GIC’s must be maintained and renewed upon maturity until such time as the associated credit cards are cancelled. |
RECEIVABLES
RECEIVABLES | 12 Months Ended |
Dec. 31, 2021 | |
Schedule Of Amounts Receivable | |
RECEIVABLES | 7. RECEIVABLES SCHEDULE OF AMOUNTS RECEIVABLE December 31, 2021 December 31, 2020 Trade accounts receivable $ 951,314 $ 780,254 Corporate taxes receivable 182,820 - GST receivable 272,993 $ - SR&ED receivable - 30,537 Trade and other receivables $ 1,407,127 $ 810,791 |
INVENTORY
INVENTORY | 12 Months Ended |
Dec. 31, 2021 | |
INVENTORY | 8. INVENTORY SCHEDULE OF INVENTORIES December 31, 2021 December 31, 2020 December 31, 2019 Finished goods $ 3,017,363 $ 1,155,871 $ - Parts 373,459 77,748 48,653 Inventories $ 3,390,822 $ 1,233,619 $ 48,653 During the year ended December 31, 2021, $ 3,420,713 (2020: $ 2,257,797 118,826 ) of inventory was sold and recognized in cost of sales. During the year ended December 31, 2021, the Company recorded an allowance to value its inventory for obsolete and slow-moving inventory, recognizing an expense in cost of sales of $ nil (2020: $ 23,955 nil ). SCHEDULE OF COST OF SALES December 31, 2021 December 31, 2020 December 31, 2019 Inventory $ 3,420,713 $ 2,257,797 $ 118,626 Consulting and services 679,345 164,119 86,280 Other 310,719 181,995 13,894 Cost of sales $ 4,410,777 $ 2,603,911 $ 218,800 |
NOTES RECEIVABLE
NOTES RECEIVABLE | 12 Months Ended |
Dec. 31, 2021 | |
Notes Receivable | |
NOTES RECEIVABLE | 9. NOTES RECEIVABLE DISCLOSURE OF NOTES RECEIVABLE Start Date Maturity Date Rate Principal Interest Accretion Impairment Total Note 1 (1) 2021-04-21 2022-10-21 0 % $ 180,597 $ - $ 9,573 $ - $ 190,170 Note 2 (1) 2021-06-01 2023-06-01 8 % 114,833 5,378 - (120,211 ) - Note 3 (1) 2021-09-22 2024-09-22 5 % 943,385 13,156 7,465 - 964,006 Note 4 2021-11-17 2022-04-26 8 % 750,000 21,260 - (771,260 ) - Total $ 1,988,815 $ 39,794 $ 17,038 $ (891,471 ) $ 1,154,176 (1) These notes are denominated in US dollars and are converted to Canadian dollars at the reporting date. Note 1 is non-interest bearing and is secured by intellectual property. This note is measured at fair value through profit or loss. The fair value was determined based on the price the company paid for this loan which was the investee’s most recent financing. Note 2 bears interest at 8 Nil Note 3 bears interest at 5 Note 4 was issued pursuant to letter of intent on an acquisition that the Company is no longer pursuing. The loan is interest bearing at 8 Nil |
PREPAIDS
PREPAIDS | 12 Months Ended |
Dec. 31, 2021 | |
PREPAIDS | 10. PREPAIDS SCHEDULE OF PREPAID EXPENSES AND DEPOSITS December 31, 2021 December 31, 2020 Insurance $ 2,938,246 $ 992 Prepaid director fees 107,763 - Prepaid interest 6,969 - Prepaid marketing services 1,638,179 187,826 Prepaid rent - 3,583 Prepaid subscriptions 35,687 5,953 Deposits 768,033 136,668 Prepaid expenses and deposits $ 5,494,877 $ 335,022 Draganfly Inc. Notes to the Consolidated Financial Statements For The Year Ended December 31, 2021 Expressed in Canadian Dollars |
INVESTMENTS
INVESTMENTS | 12 Months Ended |
Dec. 31, 2021 | |
Disclosure Investments Abstract | |
INVESTMENTS | 11. INVESTMENTS SCHEDULE OF INVESTMENTS Balance at December 31, 2020 $ - Investments 623,706 Change in fair value (332,640 ) Balance at December 31, 2021 $ 291,066 Fair value of investments is comprised of: . Public company shares $ 142,857 Public company warrants 21,429 Private company shares 126,780 Balance at December 31, 2021 $ 291,066 On March 10, 2021, the Company purchased 1,428,571 units of a publicly listed company for $ 500,000 . Each unit is comprised of one common share and one warrant. The warrants have an exercise price of $ 0.50 each and convert to one common share, and expire on March 17, 2023 . The fair values of these warrants were estimated using the Black-Scholes option pricing model with the following weighted average assumptions: SCHEDULE OF WEIGHTED AVERAGE ASSUMPTION FOR FAIR VALUES WARRANTS December 31, 2021 March 10, 2021 Risk free interest rate 0.91 % 0.28 % Expected volatility 124.09 % 150.88 % Expected life 2 years 2 years Expected dividend yield 0 % 0 % Volatility is calculated using the historical volatility method On October 27, 2021, the Company purchased 50,000 100,000 |
EQUIPMENT
EQUIPMENT | 12 Months Ended |
Dec. 31, 2021 | |
Disclosure of detailed information about property, plant and equipment [abstract] | |
EQUIPMENT | 12. EQUIPMENT SCHEDULE OF PROPERTY, PLANT AND EQUIPMENT Computer Equipment Furniture and Equipment Leasehold Improvements Software Vehicles Total Cost Balance at January 1, 2020 $ 7,000 $ 142,173 $ - $ 29,967 $ - $ 179,140 Additions 2,028 21,860 - - - 23,888 Net assets acquired in the 15,369 7,573 4,352 - 27,652 54,946 Balance at December 31, 2020 $ 24,397 $ 171,606 $ 4,352 $ 29,967 $ 27,652 $ 257,974 Property, plant and equipment, beginning balance $ 24,397 $ 171,606 $ 4,352 $ 29,967 $ 27,652 $ 257,974 Additions 29,713 170,866 - - 12,000 212,579 Revaluation - - - - (3,619 ) (3,619 ) Balance at December 31, 2021 $ 54,110 $ 342,472 $ 4,352 $ 29,967 $ 36,033 $ 466,934 Property, plant and equipment, ending balance $ 54,110 $ 342,472 $ 4,352 $ 29,967 $ 36,033 $ 466,934 Accumulated depreciation Balance at January 1, 2020 $ 6,761 $ 37,944 $ - $ 19,294 $ - $ 63,999 Charge for the year 5,631 22,019 3,220 3,202 6,033 40,105 Balance at December 31, 2020 $ 12,392 $ 59,963 $ 3,220 $ 22,496 $ 6,033 $ 104,104 Accumulated depreciation Property, plant and equipment, beginning balance $ 12,392 $ 59,963 $ 3,220 $ 22,496 $ 6,033 $ 104,104 Charge for the year 12,899 42,314 1,132 2,241 7,201 65,787 Balance at December 31, 2021 $ 25,291 $ 102,277 $ 4,352 $ 24,737 $ 13,234 $ 169,891 Accumulated depreciation Property, plant and equipment, ending balance $ 25,291 $ 102,277 $ 4,352 $ 24,737 $ 13,234 $ 169,891 Net book value: December 31, 2020 $ 12,005 $ 111,643 $ 1,132 $ 7,471 $ 21,619 $ 153,870 December 31, 2021 $ 28,819 $ 240,195 $ - $ 5,230 $ 22,799 $ 297,043 Property, plant and equipment $ 28,819 $ 240,195 $ - $ 5,230 $ 22,799 $ 297,043 Draganfly Inc. Notes to the Consolidated Financial Statements For The Year Ended December 31, 2021 Expressed in Canadian Dollars |
INTANGIBLE ASSETS AND GOODWILL
INTANGIBLE ASSETS AND GOODWILL | 12 Months Ended |
Dec. 31, 2021 | |
INTANGIBLE ASSETS AND GOODWILL | 13. INTANGIBLE ASSETS AND GOODWILL SCHEDULE OF INTELLECTUAL PROPERTY Patents Customer Relationships Brand Software Goodwill Total Cost Balance at December 31, 2019 $ 41,931 $ - $ $ - $ - $ 41,931 Intangible assets acquired in the Transaction - 197,000 - 119,000 2,166,563 2,482,563 Balance at December 31, 2020 $ 41,931 $ 197,000 $ - $ 119,000 $ 2,166,563 $ 2,524,494 Intellectual properties and goodwill, beginning balance $ 41,931 $ 197,000 $ - $ 119,000 $ 2,166,563 $ 2,524,494 Intangible assets acquired in the Acquisition - - 23,000 433,000 8,353,609 8,809,609 Impairment of goodwill - - - - (4,579,763 ) (4,579,763 ) Balance at December 31, 2021 $ 41,931 $ 197,000 $ 23,000 $ 552,000 $ 5,940,409 $ 6,754,340 Intellectual properties and goodwill, Ending balance $ 41,931 $ 197,000 $ 23,000 $ 552,000 $ 5,940,409 $ 6,754,340 Accumulated amortization Balance at December 31, 2019 $ 40,546 $ - $ - $ - $ - $ 40,546 Change for the year 1,385 26,267 - 15,866 - 43,518 Balance at December 31, 2020 41,931 26,267 - 15,866 - 84,064 Accumulated amortization, beginning balance $ 41,931 $ 26,267 - $ 15,866 $ - $ 84,064 Change for the year - 34,147 3,450 98,369 - 135,966 Balance at December 31, 2021 $ 41,931 $ 60,414 $ 3,450 $ 114,235 $ - $ 220,030 Accumulated amortization, ending balance $ 41,931 $ 60,414 $ 3,450 $ 114,235 $ - $ 220,030 Net book value: December 31, 2020 $ - $ 170,733 $ - $ 103,134 $ 2,166,563 $ 2,440,430 December 31, 2021 $ - $ 136,586 $ 19,550 $ 437,765 $ 5,940,409 $ 6,534,310 Intellectual properties and goodwill $ - $ 136,586 $ 19,550 $ 437,765 $ 5,940,409 $ 6,534,310 Customer relationships On April 30, 2020, the Company acquired a 100% 197,000 Brand On April 30, 2020, the Company acquired a 100% interest in Dronelogics and assigned $ 119,000 to the fair value of the website/domain name. On March 25, 2021, the Company acquired the assets of Vital (note 4) and assigned $ 23,000 to the fair value of the brand. Software On March 25, 2021, the Company acquired the assets of Vital and assigned $ 433,000 Goodwill On April 30, 2020, the Company acquired a 100% 2,166,563 On March 25, 2021, the Company acquired the assets of Vital, which included goodwill. Goodwill was valued at $ 8,353,609 . Draganfly Inc. Notes to the Consolidated Financial Statements For The Year Ended December 31, 2021 Expressed in Canadian Dollars 13. INTELLECTUAL PROPERTIES AND GOODWILL (CONT’D) On December 31, 2021 the Company performed its annual goodwill impairment test on Vital and Dronelogics. The Company determined the recoverable amount based on a value in use calculation using the following key assumptions: ● 5 year post tax cash flow projections expected to be generated based on a financial forecast with a terminal growth rate of 2% ● Budgeted cash flows calculated using a weighted average revenue EBITDA margin of 14% for Drone and 42 respectively were estimated by management based on the past performance and future growth prospects as well as observed trends among comparable companies. ● Cash flows were discounted at the weighted average cost of capital of 17% 24% Based on the annual goodwill impairment test, the Company deemed that the goodwill for Vital required impairment, as such the Company recorded an impairment of $ 4,579,763 The most sensitive inputs to the value in use model are the growth and discount rates. All else being equal: ● A 10% $597,100 570,133 Changing the above assumption would result in an impairment for Dronelogics, and would result in additional impairment for Vital. The key assumptions used in the calculations of the recoverable amounts include sales growth per year, changes in cost of sales and capital expenditures based on internal forecasts. |
RIGHT OF USE ASSETS
RIGHT OF USE ASSETS | 12 Months Ended |
Dec. 31, 2021 | |
Right Of Use Assets | |
RIGHT OF USE ASSETS | 14. RIGHT OF USE ASSETS SCHEDULE OF RIGHT OF USE ASSETS Total Cost Balance at December 31, 2019 $ 159,539 Leases acquired in the Acquisition 83,428 Balance at December 31, 2020 $ 242,967 Additions 447,242 Lease removal (7,092 ) Balance at December 31, 2021 $ 683,117 Accumulated depreciation Balance at December 31, 2019 $ 29,545 Charge for the year 69,003 Balance at December 31, 2020 $ 98,548 Historical correction 7,152 Charge for the year 109,311 Balance at December 31, 2021 $ 215,011 Net book value: December 31, 2020 $ 144,419 December 31, 2021 $ 468,106 Draganfly Inc. Notes to the Consolidated Financial Statements For The Year Ended December 31, 2021 Expressed in Canadian Dollars |
LEASE LIABILITY
LEASE LIABILITY | 12 Months Ended |
Dec. 31, 2021 | |
Lease Liability | |
LEASE LIABILITY | 15. LEASE LIABILITY The Company leases certain assets under lease agreements. The lease liabilities consist of leases of facilities and vehicles with terms ranging from one to five years. The leases are calculated using incremental borrowing rates ranging from 7.5% to 10.5% SCHEDULE OF OPERATING LEASE LIABILITIES Total Balance at December 31, 2019 $ 136,073 Leases acquired in the Acquisition 87,203 Interest expense 18,290 Lease Payments (83,442 ) Balance at December 31, 2020 $ 158,124 Addition 440,675 Interest expense 26,964 Lease payments (128,995 ) Lease removal (7,645 ) Balance at December 31, 2021 $ 489,123 Which consists of: Current lease liability $ 110,481 Non-current lease liability 378,642 Balance at December 31, 2021 $ 489,123 SCHEDULE OF OPERATING MATURITY ANALYSIS Maturity analysis Total Less than one year $ 150,276 One to three years 251,765 Four to five years 183,473 Greater than five years 5,030 Total undiscounted lease liabilities 590,544 Maturity analysis 590,544 Amount representing implicit interest (101,421 ) Lease liability $ 489,123 |
TRADE PAYABLES AND ACCRUED LIAB
TRADE PAYABLES AND ACCRUED LIABILITIES | 12 Months Ended |
Dec. 31, 2021 | |
Trade Payables And Accrued Liabilities | |
TRADE PAYABLES AND ACCRUED LIABILITIES | 16. TRADE PAYABLES AND ACCRUED LIABILITIES SCHEDULE OF TRADE PAYABLES AND ACCRUED LIABILITIES December 31, 2021 December 31, 2020 Trade accounts payable $ 362,890 $ 813,881 Accrued liabilities 402,540 512,205 Due to related parties (Note 23) - 475,628 Government grant payable 33,709 33,709 GST/PST Payable - 21,754 Trade payables and accrued liabilities $ 799,139 $ 1,857,177 |
CUSTOMER DEPOSITS
CUSTOMER DEPOSITS | 12 Months Ended |
Dec. 31, 2021 | |
Customer Deposits | |
CUSTOMER DEPOSITS | 17. CUSTOMER DEPOSITS SCHEDULE OF CUSTOMER DEPOSITS December 31, 2021 December 31, 2020 Customer deposits $ 172,134 $ 385,449 Draganfly Inc. Notes to the Consolidated Financial Statements For The Year Ended December 31, 2021 Expressed in Canadian Dollars |
DEFERRED INCOME
DEFERRED INCOME | 12 Months Ended |
Dec. 31, 2021 | |
DEFERRED INCOME | 18. DEFERRED INCOME At times, the Company may take payment in advance for services to be rendered. These amounts are held and recognized as services are rendered. SCHEDULE OF DEFERRED INCOME December 31, 2021 December 31, 2020 Deferred income from customers $ 80,000 $ - Deferred income from government 5,233 5,062 Deferred income from note receivable accretion (11,947 ) - Deferred Income 73,286 5,062 |
LOANS PAYABLE
LOANS PAYABLE | 12 Months Ended |
Dec. 31, 2021 | |
Loans Payable | |
LOANS PAYABLE | 19. LOANS PAYABLE SCHEDULE OF LOANS PAYABLE December 31, 2021 December 31, 2020 Opening balance $ 97,916 $ - Acquisition of loans - 120,851 Issuance of loans payable 60,000 60,000 Fair value adjustment (24,576 ) (26,152 ) Repayment of loans payable (44,428 ) (57,873 ) Accretion expense 4,405 1,090 Ending balance $ 93,317 $ 97,916 SCHEDULE OF LOANS Start Date Maturity Date Rate Carrying Value December 31, 2021 Carrying Value December 31, 2020 CEBA 2020-05-19 2022-12-31 0 % $ 37,384 $ 34,938 CEBA 2021-04-23 2022-12-31 0 % 37,383 - Vehicle loan 2019-08-30 2024-09-11 6.99 % 18,550 25,295 Shopify loan 2020-08-05 7.00 % - 37,683 Total $ 93,317 $ 97,916 On May 19, 2020, Dronelogics received a $ 40,000 25 10,000 three-year term 5 On December 4, 2020, the Government of Canada allowed for an expansion of the CEBA loan by $ 20,000 10,000 On April 23, 2021, Draganfly Innovations Inc. received a $ 60,000 20,000 5 The CEBA loans are unsecured and the vehicle loan is secured by the vehicle and the Shopify loan is secured by the Company’s accounts receivable. Draganfly Inc. Notes to the Consolidated Financial Statements For The Year Ended December 31, 2021 Expressed in Canadian Dollars |
SHARE CAPITAL
SHARE CAPITAL | 12 Months Ended |
Dec. 31, 2021 | |
Share Capital | |
SHARE CAPITAL | 20. SHARE CAPITAL Authorized share capital Unlimited number of common shares without par value. Issued share capital During the year ended December 31, 2021, - The Company issued 1,580,525 3,951,312 - The Company issued 149,999 - The Company issued 392,999 987,248 - The Company issued 15,000 - The Company issued 6,488,691 units for the Regulation A+ financing in the United States for proceeds of $ 18,815,485 . Each unit is comprised of one common share and one share purchase warrant. These warrants had a fair value of $0.57 USD allocated to them, have an exercise price of $3.55 USD per warrant, each convert to one common share, and have a life of two years. 8,261,511 - The Company issued 1,200,000 Each unit is comprised of one common share and one warrant. These warrants have an exercise price of $13.35 per warrant, each convert to one common share, and have a life of two years. - The Company issued 5,095,966 25,538,213 - The Company issued 359,009 978,478 - The Company issued 298,661 - The Company issued 12,500 26,875 - The Company issued 356,901 For the year ended December 31, 2020, - The Company issued 24,000 60,000 - The Company issued 20,000 50,000 - The Company issued 210,320 105,160 - The Company issued 73,000 36,500 - The Company issued 294,840 147,420 - The Company issued 121,840 60,920 - The Company issued 126,000 115,000 - The Company issued 645,088 common shares for the acquisition of Dronelogics and an additional 40,000 common shares as finder’s fees. - The Company issued 12,000 30,000 - The Company issued 45,600 114,000 - The Company issued 192,308 500,000 - The Company issued 111,082 344,354 38,879 - The Company issued 2,000 5,000 - The Company issued 2,200 5,500 - The Company issued 637,975 1,594,938 - The Company issued 7,117 - The Company issued 511,299 1,518,845 Each unit is comprised of one common share and one share purchase warrant. These warrants have an exercise price of $3.55 USD per warrant, each convert to one common share, and have a life of two years, expiring on November 30, 2022. - The Company issued 2,040 - The Company issued 2,647 - The Company issued 188,194 - The Company issued 15,000 37,500 Draganfly Inc. Notes to the Consolidated Financial Statements For The Year Ended December 31, 2021 Expressed in Canadian Dollars 20. SHARE CAPITAL (CONT’D) For the year ended December 31, 2019, - The Company issued 143,985 799,341 153,566 - The Company issued 222,965 1,000,000 - The Company issued 8,517,671 - The Company issued 9,065 22,662 2.50 - The Company issued 423,698 740,000 319,246 - The Company issued 63,388 8,833 212,908 - The Company issued 2,810,300 Each unit consists of one common share and one warrant. These warrants have an exercise price of $2.50 per warrant, each convert to one common share, and have a life of one year, expiring on October 25, 2020 Stock Options The Company has adopted an incentive share compensation plan, which provides that the Board of Directors of the Company may from time to time, in its discretion, and in accordance with the CSE requirements, grant to directors, officers, employees, and technical consultants to the Company, non-transferable stock options to purchase common shares. The total number of common shares reserved and available for grant and issuance pursuant to this plan shall not exceed 20% (in the aggregate) of the issued and outstanding common shares from time to time. The number of options awarded and underlying vesting conditions are determined by the Board of Directors in its discretion. As at December 31, 2021, the Company had the following options outstanding and exercisable: SCHEDULE OF STOCK OPTIONS OUTSTANDING AND EXERCISABLE Grant Date Expiry Date Exercise Price Remaining Contractual Life (years) Number of Options Outstanding Number of Options Exercisable October 30, 2019 October 30, 2029 $ 2.50 7.84 296,665 296,665 November 19, 2019 November 19, 2029 $ 2.50 7.89 50,000 50,000 April 30, 2020 April 30, 2030 $ 2.50 8.33 87,000 78,666 April 30, 2020 April 30, 2030 $ 3.85 8.33 110,000 70,000 July 3, 2020 July 3, 2025 $ 3.20 3.51 200,000 166,666 November 24, 2020 November 24, 2030 $ 2.50 8.90 32,000 21,000 December 11, 2020 December 11, 2030 $ 2.15 8.95 12,500 12,500 February 2, 2021 February 2, 2031 $ 13.20 9.09 30,000 10,000 March 8, 2021 March 8, 2026 $ 13.90 4.19 10,000 5,000 April 27, 2021 April 27, 2031 $ 10.15 9.23 182,000 - September 9, 2021 September 9, 2026 $ 4.84 4.69 25,826 - 1,035,991 710,497 SUMMARY OF CHANGES IN STOCK OPTIONS Number of Options Weighted Average Exercise Price Outstanding, December 31, 2019 744,993 $ 2.50 Forfeited (43,334 ) 2.50 Granted 492,000 3.08 Outstanding, December 31, 2020 1,193,659 $ 2.75 Exercised (405,494 ) 2.50 Granted 247,826 10.12 Outstanding, December 31, 2021 1,035,991 $ 4.60 During the year ended December 31, 2021, - The Company granted 30,000 13.20 10 years - The Company granted 10,000 13.90 5 years - The Company granted 182,000 10.15 10 years - The Company granted 25,826 4.84 5 years Draganfly Inc. Notes to the Consolidated Financial Statements For The Year Ended December 31, 2021 Expressed in Canadian Dollars 20. SHARE CAPITAL (CONT’D) Stock Options (cont’d) During the year ended December 31, 2020, - The Company granted 89,000 2.50 10 years - The Company granted 120,000 options to consultants. Each option is exercisable at $ 3.85 per share for a period of 10 years from the grant date. - The Company granted 200,000 3.20 5 years - The Company granted 33,000 2.50 10 years - The Company granted 50,000 2.15 10 years During the year ended December 31, 2021, the Company recorded $ 1,660,894 1,724,853 and 2019 – $ 599,701 ) in stock-based compensation for stock options, based on the fair values of stock options granted which were estimated using the Black-Scholes option pricing model with the following weighted average assumptions: SCHEDULE OF WEIGHTED AVERAGE ASSUMPTIONS Year ended December 31, 2021 2020 2019 Risk free interest rate 0.69% 1.40% 0.43% 0.66% 1.45% 1.46 % Expected volatility 62.84% 113.16% 113.53% 119.03% 100 % Expected life 5 years 5 10 7.5 Expected dividend yield 0 % 0 % 0 % Exercise price $ 4.84 13.90 $ 2.15 3.85 $ 2.50 Volatility is calculated using the historical volatility method based on a comparative company’s stock price. Restricted Share Units The Company has adopted an incentive share compensation plan, which provides that the Board of Directors of the Company may from time to time, in its discretion, and in accordance with the Exchange requirements, grant to directors, officers, employees, and technical consultants to the Company, restricted stock units (RSUs). The number of RSUs awarded and underlying vesting conditions are determined by the Board of Directors in its discretion. RSUs will have a 3-year vesting period following the award date. The total number of common shares reserved and available for grant and issuance pursuant to this plan, and the total number of Restricted Share Units that may be awarded pursuant to this plan, shall not exceed 20% (in the aggregate) of the issued and outstanding common shares from time to time. As at December 31, 2021, the Company had the following RSUs outstanding: SUMMARY OF CHANGES IN RESTRICTED STOCK UNITS Number of RSUs Outstanding, December 31, 2019 634,997 Vested (199,998 ) Forfeited (68,333 ) Issued 248,000 Outstanding, December 31, 2020 614,666 Vested (448,660 ) Issued 348,826 Outstanding, December 31, 2021 514,832 Draganfly Inc. Notes to the Consolidated Financial Statements For The Year Ended December 31, 2021 Expressed in Canadian Dollars 20. SHARE CAPITAL (CONT’D) Restricted Share Units (cont’d) During the year ended December 31, 2021, 323,661 124,999 348,826 During the year ended December 31, 2020, the Company committed to grant 248,000 During the year ended December 31, 2021, the Company recorded share-based payment expense of $ 2,291,701 943,611 161,858 Warrants During the years ended December 31, 2021 and 2020, the Company issued warrants (“USD Warrants”) with a USD exercise price. Being in a foreign currency that is not the Company’s functional currency, these USD Warrants are required to be recorded as a financial liability and not as equity. As a financial liability, these USD Warrants are revalued on a quarterly basis to fair market value with the change in fair value being recorded profit or loss. The initial fair value of these USD Warrants was parsed out from equity and recorded as a financial liability. To reach a fair value of the USD Warrants, a Black Scholes calculation is used, calculated in USD as the Company also trades on the Nasdaq. The Black Scholes value per USD Warrant is then multiplied by the number of outstanding warrants and then multiplied by the foreign exchange rate at the end of the period from the Bank of Canada. Warrant Derivative Liability SCHEDULE OF WARRANT DERIVATIVE LIABILITY Balance at January 1, 2020 $ - Warrant issuance 281,732 Change in fair value of warrants outstanding 466,902 Balance at December 31, 2020 $ 748,634 Warrant issuance 8,261,511 Exercised (98,048 ) Change in fair value of warrants outstanding (4,046,325 ) Warrant Balance at December 31, 2021 4,865,772 Derivative liability Warrants $ 4,865,772 Contingent consideration (note 4) 694,230 Contingent consideration at December 31, 2021 $ 5,560,002 Details of these warrants and their fair values are as follows: SCHEDULE OF WARRANTS AND FAIR VALUE OUTSTANDING Issue Date Exercise Price Number of Warrants Outstanding at December 31, 2021 Fair Value at December 31, 2021 Number of Warrants Outstanding at December 31, 2020 Fair Value at December 31, 2020 November 30, 2020 US$ 3.55 482,425 $ 182,262 511,299 $ 748,634 February 5, 2021 US$ 3.55 1,323,275 951,226 - - March 5, 2021 US$ 3.55 5,154,321 3,731,285 - - July 29, 2021 US$ 5.00 250,000 84,625 - - September 14, 2021 US$ 5.00 4,798 1,685 - - 7,214,819 $ 4,865,772 511,299 $ 748,634 Draganfly Inc. Notes to the Consolidated Financial Statements For The Year Ended December 31, 2021 Expressed in Canadian Dollars 20. SHARE CAPITAL (CONT’D) Warrants (cont’d) The fair values of these warrants were estimated using the Black-Scholes option pricing model with the following weighted average assumptions: SCHEDULE OF WEIGHTED AVERAGE ASSUMPTION FOR WARRANTS Year ended December 31, 2021 2020 Risk free interest rate 0.23% - 0.95 0.20% 0.24% Expected volatility 70.95% 144.59% 72.76% 74.10% Expected life 2 3 2 Expected dividend yield 0% 0% Volatility is calculated using the historical volatility method. During the year ended December 31, 2020, the Company amended the expiry date of the November 5, 2019 warrants from November 5, 2020 to November 5, 2021 provided that 25% of the warrants were exercised by October 21, 2020 and 25% were exercised by May 5, 2021. SUMMARY OF CHANGES IN WARRANTS Number of Warrants Weighted Average Exercise Price Outstanding, December 31, 2019 3,610,340 $ 2.05 Exercised (1,584,775 ) 1.50 Forfeited (120,000 ) 2.50 Issued 511,299 3.55 Outstanding, December 31, 2020 2,416,864 $ 2.95 Exercised (1,939,534 ) 2.54 Forfeited (6,000 ) 2.50 Issued 7,943,489 5.10 Outstanding, December 31, 2021 8,414,819 $ 4.99 As at December 31, 2021, the Company had the following warrants outstanding: SCHEDULE OF WARRANTS OUTSTANDING Date issued Expiry date Exercise price Number of warrants outstanding November 30, 2020 November 30, 2022 US$ 3.55 482,425 February 5, 2021 February 5, 2023 US$ 3.55 1,323,275 March 5, 2021 March 5, 2023 US$ 3.55 5,154,321 March 22, 2021 March 22, 2023 CDN$ 13.35 1,200,000 July 29, 2021 July 29, 2024 US$ 5.00 250,000 September 14, 2021 September 14, 2024 US$ 5.00 4,798 8,414,819 The weighted average remaining contractual life of warrants outstanding as of December 31, 2021, was 1.20 years (December 31, 2020 – 1.07 years). Of 1,200,000 900,000 Draganfly Inc. Notes to the Consolidated Financial Statements For The Year Ended December 31, 2021 Expressed in Canadian Dollars |
REVENUE
REVENUE | 12 Months Ended |
Dec. 31, 2021 | |
Revenue | |
REVENUE | 21. REVENUE The Company sub-classifies revenue within the following components: product revenue and services revenue. Product revenue comprises of sales of internally assembled multi-rotor helicopters, industrial aerial video systems, civilian small unmanned aerial systems or vehicles, and wireless video systems. Services revenue consists of fees charged for custom engineering, drone as a service work, and training and simulation consulting. SCHEDULE OF PRODUCT AND SERVICE REVENUE For the years ended December 31, 2021 2020 2019 Product sales $ 5,103,399 $ 3,087,223 $ 248,939 Drone service 1,304,799 630,532 - Services 645,667 645,756 1,131,488 Revenue $ 7,053,865 $ 4,363,511 $ 1,380,427 The Company does not derive significant revenue from any (2020 – 1) customers that exceeds 10% of total revenues for the year ended December 31, 2021 (2020 – $ 474,701 of custom engineering services revenue). Consulting revenue On May 22, 2017, the Company executed a standard consulting agreement, whereby the Company would provide consulting, custom engineering and investigating and solving on a project-by-project basis. The Company shall be responsible for the development, design, procurement, fabrication, assembly, integration, checkout, integration and test of hardware, software, and firmware necessary to produce a complete system per each project. The consideration for the services performed are based on the labor cost incurred on an hourly basis and minimal preapproved expenditures. Geographic revenue segmentation is as follows: SCHEDULE OF GEOGRAPHIC REVENUE For the years ended December 31, 2021 2020 2019 Canada $ 4,937,935 $ 2,270,862 $ 127,118 United States 2,071,492 1,982,404 1,251,199 International 44,438 110,245 2,110 Revenue $ 7,053,865 $ 4,363,511 $ 1,380,427 Draganfly Inc. Notes to the Consolidated Financial Statements For The Year Ended December 31, 2021 Expressed in Canadian Dollars 21. REVENUE (CONT’D) Non current assets for each geographic segment are as follows: SCHEDULE OF OPERATING SEGMENTS Canada United States International For the years ended December 31, Canada United States International Goodwill $ 2,166,564 $ 3,773,845 $ - Property and equipment 297,043 - - Intangible assets 219,093 374,808 - Investments 291,066 - - Notes receivable - 964,006 - Right of use assets 468,106 - - TOTAL ASSETS $ 3,441,872 $ 5,112,659 $ - Draganfly Inc. Notes to the Consolidated Financial Statements For The Year Ended December 31, 2021 Expressed in Canadian Dollars |
OFFICE AND MISCELLANEOUS
OFFICE AND MISCELLANEOUS | 12 Months Ended |
Dec. 31, 2021 | |
Office And Miscellaneous | |
OFFICE AND MISCELLANEOUS | 22. OFFICE AND MISCELLANEOUS SCHEDULE OF OFFICE AND MISCELLANEOUS EXPENSES 2021 2020 2019 For the years ended December 31, 2021 2020 2019 Advertising, Marketing, and Investor Relations $ 5,165,791 $ 2,610,930 $ 1,356,174 Compliance fees 432,874 122,916 80,525 Contract Work 300,975 399,546 438,601 Other 556,358 254,473 228,432 Office and Miscellaneous Expenses $ 6,455,998 $ 3,387,865 $ 2,103,732 Draganfly Inc. Notes to the Consolidated Financial Statements For The Year Ended December 31, 2021 Expressed in Canadian Dollars |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 12 Months Ended |
Dec. 31, 2021 | |
RELATED PARTY TRANSACTIONS | 23. RELATED PARTY TRANSACTIONS Key management personnel include those persons having authority and responsibility for planning, directing and controlling the activities of the Company as a whole. The Company has determined that key management personnel consist of members of the Company’s Board of Directors and corporate officers. Trade payables and accrued liabilities: On Aug 1, 2019, the Company entered in a business services agreement (the “Agreement”) with Business Instincts Group (“BIG”), a company that Cameron Chell, CEO and director has a material interest in that he previously controlled, to provide: corporate development and governance, strategic facilitation and management, general business services, office space, corporate business development video content, website redesign and management, and online visibility management. The services are provided by a team of up to six consultants and the costs of all charges are based on the fees set in the Agreement and are settled on a monthly basis. The Company records these charges under Professional Fees. For the year ended December 31, 2021, the company incurred fees of $ 315,643 compared to $ 177,000 in 2020, and $ 80,000 in 2019. On October 1, 2019, the Company entered into an independent consultant agreement (“Consultant Agreement”) with 1502372 Alberta Ltd, a company controlled by Cameron Chell, CEO and director, to provide executive consulting services to the Company. The costs of all charges are based on the fees set in the Consultant Agreement and are settled on a monthly basis. The Company records these charges under Professional Fees. For the year ended December 31, 2021, the Company incurred fees of $ 290,225 525,164 9,000 nil 321,741 9,450 On July 3, 2020, the Company entered into an executive consultant agreement (“Executive Agreement”) with Scott Larson, a director of the Company, to provide executive consulting services, as President, to the Company. The costs of all charges are based on the fees set in the Executive Agreement and are settled on a monthly basis. The Company records these charges under Professional Fees. For the year ended December 31, 2021, the Company incurred fees of $ 205,191 227,524 nil 153,887 As at December 31, 2021, the Company had $ nil 475,628 9,681 Draganfly Inc. Notes to the Consolidated Financial Statements For The Year Ended December 31, 2021 Expressed in Canadian Dollars 23. RELATED PARTY TRANSACTIONS (CONT’D) Key management compensation Key management includes the Company’s directors and members of the executive management team. Compensation awarded to key management for the year ended December 31, 2021 and 2020 included: SCHEDULE OF KEY MANAGEMENT TRANSACTIONS For the years ended December 31, 2021 2020 2019 Director fees $ 370,094 $ - $ - Management fees paid to a company controlled by CEO and director 290,225 737,164 186,000 Management fees paid to a company controlled by the President and director 205,691 227,524 - Management fees paid to a company controlled by a former director 500,074 165,000 195,000 Management fees paid to a company 500,074 165,000 195,000 Salaries 722,068 655,799 179,429 Salaries paid to the former owner of the Company - 86,097 149,060 Salaries - 86,097 149,060 Share-based payments 2,475,949 1,614,158 480,158 Total $ 4,564,102 $ 3,485,742 1,189,647 |
FINANCIAL INSTRUMENTS AND FINAN
FINANCIAL INSTRUMENTS AND FINANCIAL RISK MANAGEMENT | 12 Months Ended |
Dec. 31, 2021 | |
Financial Instruments And Financial Risk Management | |
FINANCIAL INSTRUMENTS AND FINANCIAL RISK MANAGEMENT | 24. FINANCIAL INSTRUMENTS AND FINANCIAL RISK MANAGEMENT The Company is exposed in varying degrees to a variety of financial instrument related risks. The Board of Directors approves and monitors the risk management processes, inclusive of documented investment policies, counterparty limits, and controlling and reporting structures. The type of risk exposure and the way in which such exposure is managed is provided as follows: Credit risk Credit risk is the risk that one party to a financial instrument will fail to discharge an obligation and cause the other party to incur a financial loss. The Company’s primary exposure to credit risk is on its cash held in bank accounts and trade receivables. The majority of cash is deposited in bank accounts held with major bank in Canada and the United States. As most of the Company’s cash is held by one bank there is a concentration of credit risk. This risk is managed by using major banks that are high credit quality financial institutions as determined by rating agencies. The Company does not have any past due outstanding receivables and the expected loss rate for undue balance is estimated to be nominal. Liquidity risk Liquidity risk is the risk that the Company will not be able to meet its financial obligations as they fall due. The Company has a planning and budgeting process in place to help determine the funds required to support the Company’s normal operating requirements on an ongoing basis. The Company ensures that there are sufficient funds to meet its short-term business requirements, taking into account its anticipated cash flows from operations and its holdings of cash and cash equivalents. Historically, the Company’s sole source of funding has been the issuance of equity securities for cash, primarily through private placements. The Company’s access to financing is always uncertain. There can be no assurance of continued access to significant equity funding. Foreign exchange risk Foreign currency risk is the risk that the fair values of future cash flows of a financial instrument will fluctuate because they are denominated in currencies that differ from the respective functional currency. The Company does not hedge its exposure to fluctuations in foreign exchange rates. Draganfly Inc. Notes to the Consolidated Financial Statements For The Year Ended December 31, 2021 Expressed in Canadian Dollars 24. FINANCIAL INSTRUMENTS AND FINANCIAL RISK MANAGEMENT (CONT’D) The following table summarizes the sensitivity of the fair value of the Company’s risk to foreign exchange rates, with all other variables held constant. Fluctuations of 10 percent in the foreign exchange rate between US dollars and Canadian dollars could have resulted in a change impacting net income upon consolidation as follows: SCHEDULE OF CHANGES IN FOREIGN EXCHANGE RATES December 31, 2021 December 31, 2020 Foreign exchange rate $ 150,715 $ 27,018 Interest rate risk Interest rate risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The Company is exposed to interest rate risk on its cash equivalents as these instruments have original maturities of three months or less and are therefore exposed to interest rate fluctuations on renewal. Fair value A number of the Company’s accounting policies and disclosures require the measurement of fair values for financial assets and liabilities. The Company has established a control framework with respect to the measurement of fair values. Fair values are categorized into different levels of a fair value hierarchy based on the inputs used in the valuation techniques as follows: Level 1: quoted (unadjusted) prices in active markets for identical assets or liabilities. Level 2: other techniques for which all inputs which have a significant effect on the recorded fair value are observable, either directly or indirectly. Level 3: techniques which use inputs which have a significant effect on the recorded fair value that are not based on observable market data. Equity securities in investee companies and warrants are measured at fair value. The financial assets measured at fair value by hierarchy are shown in the table below. The amounts shown are based on the amounts recognized in the statements of financial position. These financial assets are measured at fair value through profit and loss. SCHEDULE OF FINANCIAL ASSETS MEASURED FAIR VALUE THROUGH PROFIT AND LOSS December 31, 2021 Level 1 Level 2 Level 3 Total Equity securities in investee companies $ 164,286 $ 126,780 $ - $ 291,066 Notes receivable - 1,154,176 - 1,154,176 Derivative liability - 5,560,002 5,560,002 Total $ 164,286 $ 1,280,956 $ 5,560,002 $ 7,005,244 December 31, 2021 Level 1 Level 2 Level 3 Total Derivative liability - - 748,634 748,634 Total $ - $ - $ 748,634 $ 748,634 Capital Management The Company manages its capital to maintain its ability to continue as a going concern and to provide returns to shareholders and benefits to other stakeholders. The capital structure of the Company consists of cash, debt, and equity comprised of issued share capital, and share-based payment reserve. The Company manages its capital structure and makes adjustments to it in light of economic conditions. The Company, upon approval from its board of directors, will balance its overall capital structure through new equity issuances or by undertaking other activities as deemed appropriate under the specific circumstances. The Company is not subject to externally imposed capital requirements and the Company’s overall strategy with respect to capital risk management remains unchanged from the year ended December 31, 2020. The breakdown of the Company’s capital is as follows: SCHEDULE OF BREAKDOWN CAPITAL December 31, 2021 December 31, 2020 Cash $ 23,075,713 $ 1,982,416 Debt 93,317 97,916 Equity $ 34,926,239 $ 3,848,205 |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Dec. 31, 2021 | |
INCOME TAXES | 25. INCOME TAXES The following table reconciles the expected income taxes at the Canadian statutory income tax rates to the amounts recognized in the statements of comprehensive loss for the years ended December 31, 2021, 2020 and 2019: SCHEDULE OF INCOME TAX December 31, 2021 December 31, 2020 December 31, 2019 Loss before income taxes $ 16,202,972 $ 8,015,813 $ 11,095,507 Canadian statutory rates 27 % 27 % Expected income tax recovery 4,196,600 2,164,000 2,996,000 Impact of different foreign statutory tax rates 34,900 - - Non-deductible items 116,400 (687,000 ) (2,043,000 ) Share issue costs 887,600 - - Adjustments to prior years provision versus statutory tax returns 376,500 189,000 (388,000 ) Differences between prior year provision and final tax return (206,000 ) (535,000 ) (18,000 ) Change in deferred tax asset not recognized (5,406,000 ) (1,131,000 ) (547,000 ) Income tax $ - $ - $ - Draganfly Inc. Notes to the Consolidated Financial Statements For The Year Ended December 31, 2021 Expressed in Canadian Dollars 25. INCOME TAXES (CONT’D) The Company’s unrecognized deductible temporary differences and unused tax losses for which no deferred tax asset is recognized consist of the following amounts: SCHEDULE OF DEFERRED TAXES December 31, 2021 December 31, 2020 December 31, 2019 Deferred income tax assets (liabilities): Share issuance costs $ 728,000 $ 30,000 $ - Non-capital losses 7,043,000 3,656,000 2,439,000 Property and equipment 449,000 457,000 581,000 Capital gain reserve 74,000 - - Scientific Research and Experimental Development 291,000 57,000 49,000 Total deferred income tax assets $ 8,585,000 $ 4,200,000 $ 3,069,000 Deferred income tax not recognized (8,585,000 ) (4,200,000 ) (3,069,000 ) Net deferred tax assets $ - $ - $ - The Company has non-capital loss carry forward of approximately $ 25,487,000 which may be carried forward to apply against future year income tax for Canadian income tax purposes, subject to the final determination by taxation authorities, expiring in the years 2036 to 2040. |
OTHER INCOME
OTHER INCOME | 12 Months Ended |
Dec. 31, 2021 | |
OTHER INCOME | 26. OTHER INCOME The Company had previously written off an investment in a UK-based company. On April 27, 2020, this company was sold and the Company received $ 1,179,513 (US$ 854,838 |
SUPPLEMENTAL CASH FLOW DISCLOSU
SUPPLEMENTAL CASH FLOW DISCLOSURES | 12 Months Ended |
Dec. 31, 2021 | |
Supplemental Cash Flow Disclosures | |
SUPPLEMENTAL CASH FLOW DISCLOSURES | 27. SUPPLEMENTAL CASH FLOW DISCLOSURES During the year ended December 31, 2021: - The Company issued 15,000 - The Company issued 1,200,000 13.35 - The Company issued 356,901 - The Company recorded a change in fair value of investments of $ 332,640 During the year ended December 31, 2020, the Company settled debt of $ 344,354 111,082 28,614 During the year ended December 31, 2019: - Settlement of $ 822,003 153,566 - Issuance of 400,000 2.50 - Settlement of $ 740,000 Draganfly Inc. Notes to the Consolidated Financial Statements For The Year Ended December 31, 2021 Expressed in Canadian Dollars |
GOVERNMENT ASSISTANCE
GOVERNMENT ASSISTANCE | 12 Months Ended |
Dec. 31, 2021 | |
Government Assistance | |
GOVERNMENT ASSISTANCE | 28. GOVERNMENT ASSISTANCE In response to COVID-19, the Government of Canada announced the Canada Emergency Wage Subsidy (“CEWS”) program in April 2020. CEWS provides a wage subsidy on eligible remuneration, subject to a maximum per employee, to eligible employers based on meeting certain eligibility criteria. The Company determined that it qualified for this subsidy. The Company has recognized the government assistance as a reduction to expenses as it has complied with the eligibility criteria and the subsidy has been received. Included in the statement of comprehensive loss for the year ended December 31, 2021 is - $ 250,756 (2020 - $ 490,748 ) relating to the CEWS program of which was recorded as a reduction of wages and salaries included in operating expenses. In September 2020, the Government of Canada announced the Canada Emergency Rent Subsidy (“CERS”) to provide a rent subsidy to eligible businesses based on meeting certain eligibility criteria. The Company determined that it qualified for this subsidy as well. The Company has recognized the government assistance as a reduction to expenses as it has complied with the eligibility criteria and the subsidy has been received. The amount included in the statement of comprehensive loss for the year ended December 31, 2021 is - $ 22,668 (2020 - $ nil ) relating to the CERS program of which was recorded as a reduction of rent included in operating expenses. As at December 31, 2021, the Company had - $ nil (2020 - $ nil ) included in amounts receivables for CERS subsidies receivable. In October 2021 the Government of Canada announced the Hardest Hit Business Recovery Program (“HHBRP”) to provide continued wage and rent subsidies to business’ severely affected by COVID-19, based on meeting certain eligibility criteria. The Company determined that it qualified for this subsidy. The Company has recognized the government grant as a reduction to expenses as it has complied with the eligibility criteria and the subsidy has been received. The amount included in the statement of comprehensive loss for the year ended December 31, 2021 is - $ 50,756 in wage subsidies and $ 3,791 in rent subsidies (2020 - $ nil , and - $ nil respectively) relating to the HHBRP program of which were recorded as a reduction wages and salaries and rent expense respectively. As at December 31, 2021, the Company had - $ 54,548 (2020 - $ nil ) included in amounts receivables for HHBRP subsidies receivable. |
BASIS OF PREPARATION (Policies)
BASIS OF PREPARATION (Policies) | 12 Months Ended |
Dec. 31, 2021 | |
Inventory | Inventory Inventory is valued at the lower of cost and net realizable value. Net realizable value is determined with reference to the estimated selling price. The Company estimates selling price based upon assumptions about future demand and current and anticipated retail market conditions. The future realization of these inventories may be affected by future technology or other market-driven changes that may reduce future selling prices. |
Contingencies | Contingencies The assessment of contingencies involves the exercise of significant judgment and estimates of the outcome of future events. In assessing loss contingencies related to legal proceedings that are pending against the Company and that may result in regulatory or government actions that may negatively impact the Company’s business or operations, the Company and its legal counsel evaluate the perceived merits of the legal proceeding or unasserted claim or action as well as the perceived merits of the nature and amount of relief sought or expected to be sought, when determining the amount, if any, to recognize as a contingent liability or when assessing the impact on the carrying value of the Company’s assets. Contingent assets are not recognized in the consolidated financial statements. |
Useful lives of equipment and intangible assets | Useful lives of equipment and intangible assets Estimates of the useful lives of equipment and intangible assets are based on the period over which the assets are expected to be available for use. The estimated useful lives are reviewed annually and are updated if expectations differ from previous estimates due to physical wear and tear, technical or commercial obsolescence, and legal or other limits on the use of the relevant assets. In addition, the estimation of the useful lives of the relevant assets may be based on internal technical evaluation and experience with similar assets. It is possible, however, that future results of operations could be materially affected by changes in the estimates brought about by changes in the factors mentioned above. The amounts and timing of recorded expenses for any period would be affected by changes in these factors and circumstances. A reduction in the estimated useful lives of the equipment would increase the recorded expenses and decrease the non-current assets. |
Significant judgments | Significant judgments The preparation of consolidated financial statements in accordance with IFRS requires the Company to make judgments, apart from those involving estimates, in applying accounting policies. The most significant judgments in applying the Company’s consolidated financial statements include: |
Business combinations | Business combinations The definition of whether a set of assets acquired and liabilities assumed constitute a business may require the company to make certain judgements taking into account all facts and circumstances. A business is presumed to be an integrated set of activities and assets capable of being conducted and managed for the purpose of providing a return in the form of dividends, lower costs, or economic benefits. |
Business combination versus asset acquisition | Business combination versus asset acquisition The Company considered the applicability of IFRS 3 – Business Combinations (“IFRS 3”) with respect to the Acquisitions (Notes 3, 4, and 5). IFRS 3 defines a business as having a system where inputs enter a process to produce outputs. The Company has determined that the acquisition of Dronelogics Systems Inc. and Vital Intelligence Inc. are business combinations and, accordingly, have accounted for as such. |
Other significant judgments | Other significant judgments − The assessment of the Company’s ability to continue as a going concern and whether there are events or conditions that may give rise to significant uncertainty; − the classification of financial instruments; − the assessment of revenue recognition using the five-step approach under IFRS 15 and the collectability of amounts receivable; − the determination of whether a set of assets acquired and liabilities assumed constitute a business; and − the determination of the functional currency of the company. |
Foreign currency translation | Foreign currency translation Transactions in foreign currencies are translated into Canadian dollars at rates of exchange at the time of such transactions. Monetary assets and liabilities are translated at the reporting period rate of exchange. Non-monetary assets and liabilities are translated at historical exchange rates. Revenue and expenses denominated in a foreign currency are translated at the monthly average exchange rate. Gains and losses resulting from the translation adjustments are included in income. The functional currencies for the parent company and each subsidiary are as follows: Draganfly Inc. Canadian Dollar Draganfly Innovations Inc. Canadian Dollar Draganfly Innovations USA, Inc. US Dollar Dronelogics Systems Inc. Canadian Dollar Financial statements of subsidiaries for which the functional currency is not the Canadian dollar are translated into Canadian dollars as follows: all asset and liability accounts are translated at the year-end exchange rate and all earnings and expense accounts and cash flow statement items are translated at average exchange rates for the year. The resulting translation gains and losses are recorded as exchange differences on translating foreign operations in other comprehensive income. |
Share-based payments | Share-based payments The Company operates a stock option plan. Share-based payments to employees are measured at the fair value of the instruments issued and amortized over the vesting periods. Share-based payments to non-employees are measured at the fair value of goods or services received or the fair value of the equity instruments issued, if it is determined the fair value of the goods or services cannot be reliably measured, and are recorded at the date the goods or services are received. The corresponding amount is recorded to the option reserve. The fair value of options is determined using a Black–Scholes Option Pricing Model. The number of shares and options expected to vest is reviewed and adjusted at the end of each reporting period such that the amount recognized for services received as consideration for the equity instruments granted shall be based on the number of equity instruments that eventually vest. Amounts recorded for forfeited or expired unexercised options are transferred to deficit in the year of forfeiture or expiry. Amounts recorded for forfeited unvested options are reversed in the period the forfeiture occurs. Share-based payment expense relating to cash-settled awards, including restricted share units is accrued over the vesting period of the units based on the quoted market value of Company’s common shares. As these awards will be settled in cash, the expense and liability are adjusted each reporting period for changes in the underlying share price. |
Restricted Share Units | Restricted Share Units The restricted share units (“RSUs”) entitle employees, directors, or officers to cash payments payable upon vesting based on vesting terms determined by the Company’s Board of Directors at the time of the grant. RSUs are measured at the fair value of awards on the grant date using the prior days closing price. Amounts recorded for forfeited unvested RSUs are reversed in the period the forfeiture occurs. The expense is recognized on a graded vesting basis over the vesting period, with a corresponding charge to profit or loss. |
Loss per share | Loss per share Basic loss per share is calculated by dividing the loss attributable to common shareholders by the weighted average number of common shares outstanding in the period. For all periods presented, the loss attributable to common shareholders equals the reported loss attributable to owners of the Company. Diluted income per share is calculated by the treasury stock method. Under the treasury stock method, the weighted average number of common shares outstanding for the calculation of diluted loss per share assumes that the proceeds to be received on the exercise of dilutive share options and warrants are used to repurchase common shares at the average market price during the period. For the periods presented, the Company incurred a loss and therefore basic loss per share equals diluted loss per share. a) Financial assets Classification and measurement The Company classifies its financial assets in the following categories: at fair value through profit or loss (“FVTPL”), at fair value through other comprehensive income (“FVTOCI”) or at amortized cost. The classification depends on the purpose for which the financial assets were acquired. Management determines the classification of its financial assets at initial recognition. Draganfly Inc. Notes to the Consolidated Financial Statements For The Year Ended December 31, 2021 Expressed in Canadian Dollars 2. SIGNIFICANT ACCOUNTING POLICIES AND BASIS OF PREPARATION (CONT’D The classification of debt instruments is driven by the business model for managing the financial assets and their contractual cash flow characteristics. Debt instruments are measured at amortized cost if the business model is to hold the instrument for collection of contractual cash flows and those cash flows are solely principal and interest. If the business model is not to hold the debt instrument, it is classified as FVTPL. Financial assets with embedded derivatives are considered in their entirety when determining whether their cash flows are solely payments of principal and interest. Equity instruments that are held for trading (including all equity derivative instruments) are classified as FVTPL, for other equity instruments, on the day of acquisition the Company can make an irrevocable election (on an instrument by-instrument basis) to designate them as at FVTOCI. Financial assets at FVTPL Financial assets carried at FVTPL are initially recorded at fair value and transaction costs are expensed in the income statement. Realized and unrealized gains and losses arising from changes in the fair value of the financial asset held at FVTPL are included in the income statement in the period in which they arise. Derivatives are also categorized as FVTPL unless they are designated as hedges. Financial assets at FVTOCI Investments in equity instruments at FVTOCI are initially recognized at fair value plus transaction costs. Subsequently they are measured at fair value, with gains and losses arising from changes in fair value recognized in other comprehensive income. There is no subsequent reclassification of fair value gains and losses to profit or loss following the derecognition of the investment. Financial assets at amortized cost Financial assets at amortized cost are initially recognized at fair value and subsequently carried at amortized cost less any impairment. They are classified as current assets or non-current assets based on their maturity date. Impairment of financial assets at amortized cost The Company recognizes a loss allowance for expected credit losses on financial assets that are measured at amortized cost. At each reporting date, the loss allowance for the financial asset is measured at an amount equal to the lifetime expected credit losses if the credit risk on the financial asset has increased significantly since initial recognition. If at the reporting date, the financial asset has not increased significantly since initial recognition, the loss allowance is measured for the financial asset at an amount equal to twelve month expected credit losses. For trade receivables the Company applies the simplified approach to providing for expected credit losses, which allows the use of a lifetime expected loss provision. Impairment losses on financial assets carried at amortized cost are reversed in subsequent periods if the amount of the loss decreases and the decrease can be objectively related to an event occurring after the impairment was recognized. Derecognition of financial assets Financial assets are derecognized when they mature or are sold, and substantially all the risks and rewards of ownership have been transferred. Gains and losses on derecognition of financial assets classified as FVTPL or amortized cost are recognized in the income statement. Gains or losses on financial assets classified as FVTOCI remain within accumulated other comprehensive income. Draganfly Inc. Notes to the Consolidated Financial Statements For The Year Ended December 31, 2021 Expressed in Canadian Dollars 2. SIGNIFICANT ACCOUNTING POLICIES AND BASIS OF PREPARATION (CONT’D b) Financial liabilities The Company classifies its financial liabilities into one of two categories as follows: Fair value through profit or loss (FVTPL) - This category comprises derivatives and financial liabilities incurred principally for the purpose of selling or repurchasing in the near term. They are carried at fair value with changes in fair value recognized in profit or loss. Other financial liabilities - This category consists of liabilities carried at amortized cost using the effective interest method. Trade payables, customer deposits and loans are included in this category. The Company derecognizes a financial liability when its contractual obligations are discharged, cancelled or expire. Derecognition of financial liabilities Financial liabilities are derecognized when its contractual obligations are discharged, cancelled, or expire. The Company also derecognizes a financial liability when the terms of the liability are modified such that the terms and/or cash flows of the modified instrument are substantially different, in which case a new financial liability based on the modified terms is recognized at fair value. Gains and losses on derecognition are generally recognized in profit or loss. |
Impairment of non-financial assets | Impairment of non-financial assets The carrying amounts of the Company’s non-financial assets are reviewed at each reporting date to determine whether there is any indication of impairment. If indicators exist, then the asset’s recoverable amount is estimated. The recoverable amounts of the following types of intangible assets are measured annually, whether or not there is any indication that it may be impaired: ● an intangible asset with an indefinite useful life; ● an intangible asset not yet available for use; and ● goodwill recognized in a business combination. The recoverable amount of an asset or cash-generating unit (“CGU”) is the greater of its value in use and its fair value less costs to sell. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset. For the purpose of impairment testing, assets that cannot be tested individually are grouped together into the smallest identifiable group of assets that generates cash inflows from continuing use that are largely independent of the cash inflows of other assets or groups of assets. If there is an indication that a corporate asset may be impaired, then the recoverable amount is determined for the CGU to which the corporate asset belongs. An impairment loss is recognized if the carrying amount of an asset or its CGU exceeds its estimated recoverable amount. Impairment losses are recognized in the statement of comprehensive loss. Impairment losses recognized in respect of CGUs are allocated first to reduce the carrying amount of any goodwill allocated to the units, and then to reduce the carrying amounts of the other assets in the unit (group of units) on a pro rata basis. In respect of assets other than goodwill and intangible assets that have indefinite useful lives, impairment losses recognized in prior periods are assessed at each reporting date for any indications that the loss has decreased or no longer exists. An impairment loss is reversed in a subsequent period when there has been an increase in the recoverable amount of a previously impaired asset or CGU. An impairment loss is reversed only to the extent that the asset’s carrying amount does not exceed the carrying amount that would have been determined, net of depreciation or amortization, if no impairment loss had been recognized. |
Income taxes | Income taxes Current income tax: Current income tax assets and liabilities for the current period are measured at the amount expected to be recovered from or paid to the taxation authorities. The tax rates and tax laws used to compute the amount are those that are enacted or substantively enacted, at the reporting date, in the countries where the Company operates and generates taxable income. Current income tax relating to items recognized directly in other comprehensive income or equity is recognized in other comprehensive income or equity and not in profit or loss. Management periodically evaluates positions taken in the tax returns with respect to situations in which applicable tax regulations are subject to interpretation and establishes provisions where appropriate. Deferred income tax: Deferred income tax is recognized, using the asset and liability method, on temporary differences at the reporting date arising between the tax bases of assets and liabilities and their carrying amounts for financial reporting. The carrying amount of deferred income tax assets is reviewed at the end of each reporting period and recognized only to the extent that it is probable that sufficient taxable profit will be available to allow all or part of the deferred income tax asset to be utilized. Deferred income tax assets and liabilities are measured at the tax rates that are expected to apply to the year when the asset is realized or the liability is settled, based on tax rates (and tax laws) that have been enacted or substantively enacted by the end of the reporting period. Deferred income tax assets and deferred income tax liabilities are offset, if a legally enforceable right exists to set off current tax assets against current income tax liabilities and the deferred income taxes relate to the same taxable entity and the same taxation authority. |
Inventory | Inventory Inventory consists of raw materials for manufacturing of multi-rotor helicopters, industrial areal video systems, civilian small unmanned aerial systems or vehicles, health monitoring equipment, and wireless video systems. Inventory is initially valued at cost and subsequently at the lower of cost and net realizable value. Net realizable value is determined as the estimated selling price in the ordinary course of business less the estimated costs of completion and the estimated costs necessary to make the sale. Cost is determined using the weighted average cost basis. The Company reviews inventory for obsolete and slow-moving goods and any such inventory is written-down to net realizable value. |
Revenue recognition | Revenue recognition Revenue comprises the fair value of consideration received or receivable for the sale of goods and consulting services in the ordinary course of the Company’s business. Revenue is shown net of return allowances and discounts. Sales of goods The Company manufactures and sells a range of multi-rotor helicopters, industrial aerial video systems, and civilian small unmanned aerial systems or vehicles. Sales are recognized at a point-in-time when control of the products has transferred, being when the products are delivered to the customer and there is no unfulfilled obligation that could affect the customer’s acceptance of the products. Delivery occurs when the products have been shipped to the specific location or picked up by the customer, the risks of obsolescence and loss have been transferred to the customer. Revenue from these sales is recognized based on the price specified in the contract, net of the estimated discounts and returns. Accumulated experience is used to estimate and provide for the discounts and returns, using the expected value method, and revenue is only recognized to the extent that it is highly probable that a significant reversal will not occur. To date, returns have not been significant. No element of financing is deemed present as the sales are made with a credit term of 30 days, which is consistent with market practice. Some contracts include multiple deliverables, such as the manufacturing of hardware and support. Support is performed by another party and does not include an integration service. It is therefore accounted for as a separate performance obligation. In this case, the transaction price will be allocated to each performance obligation based on the stand-alone selling prices. Where these are not directly observable, they are estimated based on expect cost plus margin. A receivable is recognized when the goods are delivered as this is the point in time that the consideration is unconditional because only the passage of time is required before the payment is due. Services The Company provides consulting, custom engineering, drones as a service, and investigating and solving on a project-by-project basis under fixed-price and variable price contracts. Revenue from providing services is recognized in the accounting period in which the services are rendered. For fixed-price contracts, revenue is recognized based on the actual service provided to the end of the reporting period as a proportion of the total services to be provided. This is determined based on the actual labour hours spend relative to the total expected labour hours. If contracts include the manufacturing of hardware, revenue for the hardware is recognized at a point in time when the hardware is delivered, the legal title has passed and the customer has accepted the hardware. Estimates of revenues, costs or extent of progress toward completion are revised if circumstances change. Any resulting increases or decreases in estimated revenues or costs are reflected in profit or loss in the period in which the circumstances that give rise to the revision become known by management. Draganfly Inc. Notes to the Consolidated Financial Statements For The Year Ended December 31, 2021 Expressed in Canadian Dollars 2. SIGNIFICANT ACCOUNTING POLICIES AND BASIS OF PREPARATION (CONT’D In case of fixed-price contracts, the customer pays the fixed amount based on a payment schedule. If the services rendered by the Company exceed the payment, a contract asset is recognized. If the payments exceed the services rendered, a contract liability is recognized. If the contract includes an hourly fee, revenue is recognized in the amount to which the Company has a right to invoice. Customers are invoiced on a monthly basis and consideration is payable when invoiced. |
Cost of Goods Sold | Cost of Goods Sold Cost of sales includes the expenses incurred to acquire and produce inventory for sale, including product costs, freight costs, as well as provisions for reserves related to product shrinkage, excess or obsolete inventory, or lower of cost and net realizable value adjustments as required. |
Intangible Assets and Goodwill | Intangible Assets and Goodwill An intangible asset is an identifiable asset without physical substance. An asset is identifiable if it is separable, or arises from contractual or legal rights, regardless of whether those rights are transferrable or separable from the Company or from other rights and obligations. Intangible assets include intellectual property, which consists of patent and trademark applications. Intangible assets acquired externally are measured at cost less accumulated amortization and impairment losses. The cost of a group of intangible assets acquired is allocated to the individual intangible assets based on their relative fair values. The cost of intangible assets acquired externally comprises its purchase price and any directly attributable cost of preparing the asset for its intended use. Research and development costs incurred subsequent to the acquisition of externally acquired intangible assets and on internally generated intangible assets are accounted for as research and development costs. Intangible assets with finite useful lives are amortized on a straight line basis over the expected life of each intellectual property to write off the cost of the assets from the date they are available for use. Goodwill represents the excess of the value of the consideration transferred over the fair value of the net identifiable assets and liabilities acquired in a business combination. Goodwill is allocated to the cash generating unit to which it relates. |
Equipment | Equipment Equipment is stated at historical cost less accumulated depreciation and accumulated impairment losses. Subsequent costs are included in the asset’s carrying amount or recognized as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the item will flow to the Company and the cost of the item can be measured reliably. The carrying amount of the replaced part is derecognized. All other repairs and maintenance are charged to the statement of comprehensive loss during the financial period in which they are incurred. Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognized in the statement of comprehensive loss. Depreciation is generally calculated on a declining balance method to write off the cost of the assets to their residual values over their estimated useful lives. Depreciation for leasehold improvements is fully expensed over the expected term of the lease. The depreciation rates applicable to each category of equipment are as follows: Draganfly Inc. Notes to the Consolidated Financial Statements For The Year Ended December 31, 2021 Expressed in Canadian Dollars 2. SIGNIFICANT ACCOUNTING POLICIES AND BASIS OF PREPARATION (CONT’D) SCHEDULE OF CLASS OF EQUIPMENT Class of equipment Depreciation rate Computer equipment 30% Furniture and equipment 20% Leasehold improvements Over expected life of lease Software 30% Vehicles 30% |
Research and development expenditures | Research and development expenditures Expenditures on research are expensed as incurred. Research activities include formulation, design, evaluation and final selection of possible alternatives, products, processes, systems or services. Development expenditures are expensed as incurred unless the Company can demonstrate all of the following: (i) the technical feasibility of completing the intangible asset so that it will be available for use or sale; (ii) its intention to complete the intangible asset and use or sell it; (iii) its ability to use or sell the intangible asset; (iv) how the intangible asset will generate probable future economic benefits. Among other things, the Company can demonstrate the existence of a market for the output of the intangible asset or the intangible asset itself or, if it is to be used internally, the usefulness of the intangible asset; (v) the availability of adequate technical, financial and other resources to complete the development and to use or sell the intangible asset; and (vi) its ability to measure reliably the expenditure attributable to the intangible asset during its development. |
Government Assistance | Government Assistance Government grants are recognized when there is reasonable assurance that the grant will be received and all attached conditions will be complied with. When the grant relates to an expense item, it is recognized as income on a systematic basis over the period that the related costs, for which it is intended to compensate, are expensed. When the grant relates to an asset, the cost of the asset is reduced by the amount of the grant and the grant is recognized as income in equal amounts over the expected useful life of the asset. |
SR&ED Investment tax credits | SR&ED Investment tax credits The Company claims federal investment tax credits as a result of incurring scientific research and experimental development (“SR&ED”) expenditures. Federal investment tax credits are recognized when the related expenditures are incurred and there is reasonable assurance of their realization. Federal investment tax credits are accounted for as a reduction of research and development expense for items of a period expense nature or as a reduction of property and equipment for items of a capital nature. Management has made a number of estimates and assumptions in determining the expenditures eligible for the federal investment tax credit claim. It is possible that the allowed amount of the federal investment tax credit claim could be materially different from the recorded amount upon assessment by Canada Revenue Agency. The Company claims provincial investment tax credits as a result of incurring SR&ED expenditures. Provincial investment tax credits are recognized when the related expenditures are incurred and there is reasonable assurance of their realization. Management has made a number of estimates and assumptions in determining the expenditures eligible for the provincial investment tax credit claim. The provincial investment tax credits are refundable and have been recorded as a SR&ED tax credit receivable, and as a reduction in research and development expenses on the statement of comprehensive loss. It is possible that the allowed amount of the provincial investment tax credit claim could be materially different from the recorded amount upon assessment by Canada Revenue Agency and the Alberta Tax and Revenue Administration. |
Leases | Leases A contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. At the commencement date, the lease liability is recognized at the present value of the future lease payments and discounted using the interest rate implicit in the lease or the Company’s incremental borrowing rate. A corresponding right-of-use (“ROU”) asset will be recognized at the amount of the lease liability, adjusted for any lease incentives received and initial direct costs incurred. Over the term of the lease, financing expense is recognized on the lease liability using the effective interest rate method and charged to net income, lease payments are applied against the lease liability and depreciation on the ROU asset is recorded by class of underlying asset. The lease term is the non-cancellable period of a lease and includes periods covered by an optional lease extension option if reasonably certain the Company will exercise the option to extend. Conversely, periods covered by an option to terminate are included if the Company does not expect to end the lease during that time frame. Leases with a term of less than twelve months or leases for underlying low value assets are recognized as an expense in net income on a straight-line basis over the lease term. A lease modification will be accounted for as a separate lease if it materially changes the scope of the lease. For a modification that is not a separate lease, on the effective date of the lease modification, the Company will remeasure the lease liability and corresponding ROU asset using the interest rate implicit in the lease or the Company’s incremental borrowing rate. Any variance between the remeasured ROU asset and lease liability will be recognized as a gain or loss in net income to reflect the change in scope. |
BASIS OF PREPARATION (Tables)
BASIS OF PREPARATION (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
SCHEDULE OF RESULTS OF OPERATIONS | The consolidated financial statements include the accounts and results of operations of the Company and its wholly owned subsidiaries listed in the following table: SCHEDULE OF RESULTS OF OPERATIONS Name of Subsidiary Place of Incorporation Ownership Interest Draganfly Innovations Inc. Canada 100% Draganfly Innovations USA, Inc. US 100% Dronelogics Systems Inc. Canada 100% |
SCHEDULE OF CLASS OF EQUIPMENT | SCHEDULE OF CLASS OF EQUIPMENT Class of equipment Depreciation rate Computer equipment 30% Furniture and equipment 20% Leasehold improvements Over expected life of lease Software 30% Vehicles 30% |
DRONELOGICS ACQUISITION (Tables
DRONELOGICS ACQUISITION (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
SCHEDULE OF PURCHASE PRICE ALLOCATION | The purchase price allocation (“PPA”) is as follows: SCHEDULE OF PURCHASE PRICE ALLOCATION Number of shares of Draganfly Inc. 645,088 Fair value of common shares $ 4.15 Fair value of shares of Draganfly Inc. $ 2,178,960 Cash portion of purchase price 500,000 Total $ 2,678,960 Draganfly Inc. Notes to the Consolidated Financial Statements For The Year Ended December 31, 2021 Expressed in Canadian Dollars 3. DRONELOGICS ACQUISITION (CONT’D) Tangible assets acquired Cash $ 42,593 Accounts receivable 98,852 Inventory 629,684 Prepaids and deposits 93,997 Other current assets 3,014 Capital assets 54,946 Right-of-use assets 83,428 Accounts payable and accrued liabilities (222,766 ) Customer deposits (245,959 ) Loans (245,752 ) Other current liabilities (8,437 ) Lease liabilities (87,203 ) Total tangible assets acquired 196,397 Identifiable intangible assets Customer relationships 197,000 Website 119,000 Total identifiable intangible assets 316,000 Goodwill 2,166,563 Total consideration $ 2,678,960 |
VITAL INTELLIGENCE ACQUISITION
VITAL INTELLIGENCE ACQUISITION (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Vital Intelligence Acquisition | |
SCHEDULE OF CONTINGENT CONSIDERATION | SCHEDULE OF CONTINGENT CONSIDERATION Contingent consideration Fair value of contingent consideration $ 4,797,717 Change in fair value of contingent consideration (4,103,487 ) Contingent consideration at December 31, 2021 (note 20) $ 694,230 |
SCHEDULE OF PURCHASE PRICE ALLOCATION FOR VITAL INTELLIGENCE | The PPA is as follows: SCHEDULE OF PURCHASE PRICE ALLOCATION FOR VITAL INTELLIGENCE Number of units of Draganfly Inc. 578,248 Fair value of units $ 14.43 Fair value of units of Draganfly Inc. $ 8,342,966 Cash portion of purchase price 466,643 Total $ 8,809,609 Identifiable intangible assets Brand $ 23,000 Software 433,000 456,000 Goodwill 8,353,609 Total consideration $ 8,809,609 |
AMALGAMATION (Tables)
AMALGAMATION (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
SUMMARY OF HISTORICAL FINANCIAL INFORMATION | SUMMARY OF HISTORICAL FINANCIAL INFORMATION Number of shares of Draganfly Inc. 2,100,000 Fair value of common shares in concurrent financing $ 2.50 Fair value of shares of Draganfly Inc. $ 5,250,001 Fair value of warrants 1,645,193 Fair value of shares issued for transaction fees 1,000,000 Net assets acquired $ (90,335 ) Listing expense $ 7,804,859 Fair value of the Company acquired, net of liabilities Cash $ 28,538 Accounts receivable 4,991 Loans receivable 963,269 Accounts payable and accrued liabilities (406,463 ) Subscription receipts (500,000 ) Net of liabilities $ 90,335 |
SUMMARY OF FAIR VALUE MEASUREMENT INPUTS AND VALUATION TECHNIQUES | SUMMARY OF FAIR VALUE MEASUREMENT INPUTS AND VALUATION TECHNIQUES Risk-free interest rate 0.86 Estimate life 1.48 Expected volatility 100 Expected dividend yield 0 |
CASH AND CASH EQUIVALENTS (Tabl
CASH AND CASH EQUIVALENTS (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
SCHEDULE OF CASH AND CASH EQUIVALENTS | SCHEDULE OF CASH AND CASH EQUIVALENTS December 31, 2021 December 31, 2020 Cash held in banks $ 22,729,212 $ 1,839,871 Guaranteed investment certificates 346,501 142,545 Cash and Cash Equivalents $ 23,075,713 $ 1,982,416 |
RECEIVABLES (Tables)
RECEIVABLES (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Schedule Of Amounts Receivable | |
SCHEDULE OF AMOUNTS RECEIVABLE | SCHEDULE OF AMOUNTS RECEIVABLE December 31, 2021 December 31, 2020 Trade accounts receivable $ 951,314 $ 780,254 Corporate taxes receivable 182,820 - GST receivable 272,993 $ - SR&ED receivable - 30,537 Trade and other receivables $ 1,407,127 $ 810,791 |
INVENTORY (Tables)
INVENTORY (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
SCHEDULE OF INVENTORIES | SCHEDULE OF INVENTORIES December 31, 2021 December 31, 2020 December 31, 2019 Finished goods $ 3,017,363 $ 1,155,871 $ - Parts 373,459 77,748 48,653 Inventories $ 3,390,822 $ 1,233,619 $ 48,653 |
SCHEDULE OF COST OF SALES | SCHEDULE OF COST OF SALES December 31, 2021 December 31, 2020 December 31, 2019 Inventory $ 3,420,713 $ 2,257,797 $ 118,626 Consulting and services 679,345 164,119 86,280 Other 310,719 181,995 13,894 Cost of sales $ 4,410,777 $ 2,603,911 $ 218,800 |
NOTES RECEIVABLE (Tables)
NOTES RECEIVABLE (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Notes Receivable | |
DISCLOSURE OF NOTES RECEIVABLE | DISCLOSURE OF NOTES RECEIVABLE Start Date Maturity Date Rate Principal Interest Accretion Impairment Total Note 1 (1) 2021-04-21 2022-10-21 0 % $ 180,597 $ - $ 9,573 $ - $ 190,170 Note 2 (1) 2021-06-01 2023-06-01 8 % 114,833 5,378 - (120,211 ) - Note 3 (1) 2021-09-22 2024-09-22 5 % 943,385 13,156 7,465 - 964,006 Note 4 2021-11-17 2022-04-26 8 % 750,000 21,260 - (771,260 ) - Total $ 1,988,815 $ 39,794 $ 17,038 $ (891,471 ) $ 1,154,176 (1) These notes are denominated in US dollars and are converted to Canadian dollars at the reporting date. |
PREPAIDS (Tables)
PREPAIDS (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
SCHEDULE OF PREPAID EXPENSES AND DEPOSITS | SCHEDULE OF PREPAID EXPENSES AND DEPOSITS December 31, 2021 December 31, 2020 Insurance $ 2,938,246 $ 992 Prepaid director fees 107,763 - Prepaid interest 6,969 - Prepaid marketing services 1,638,179 187,826 Prepaid rent - 3,583 Prepaid subscriptions 35,687 5,953 Deposits 768,033 136,668 Prepaid expenses and deposits $ 5,494,877 $ 335,022 |
INVESTMENTS (Tables)
INVESTMENTS (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Disclosure Investments Abstract | |
SCHEDULE OF INVESTMENTS | SCHEDULE OF INVESTMENTS Balance at December 31, 2020 $ - Investments 623,706 Change in fair value (332,640 ) Balance at December 31, 2021 $ 291,066 Fair value of investments is comprised of: . Public company shares $ 142,857 Public company warrants 21,429 Private company shares 126,780 Balance at December 31, 2021 $ 291,066 |
SCHEDULE OF WEIGHTED AVERAGE ASSUMPTION FOR FAIR VALUES WARRANTS | The fair values of these warrants were estimated using the Black-Scholes option pricing model with the following weighted average assumptions: SCHEDULE OF WEIGHTED AVERAGE ASSUMPTION FOR FAIR VALUES WARRANTS December 31, 2021 March 10, 2021 Risk free interest rate 0.91 % 0.28 % Expected volatility 124.09 % 150.88 % Expected life 2 years 2 years Expected dividend yield 0 % 0 % |
EQUIPMENT (Tables)
EQUIPMENT (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Disclosure of detailed information about property, plant and equipment [abstract] | |
SCHEDULE OF PROPERTY, PLANT AND EQUIPMENT | SCHEDULE OF PROPERTY, PLANT AND EQUIPMENT Computer Equipment Furniture and Equipment Leasehold Improvements Software Vehicles Total Cost Balance at January 1, 2020 $ 7,000 $ 142,173 $ - $ 29,967 $ - $ 179,140 Additions 2,028 21,860 - - - 23,888 Net assets acquired in the 15,369 7,573 4,352 - 27,652 54,946 Balance at December 31, 2020 $ 24,397 $ 171,606 $ 4,352 $ 29,967 $ 27,652 $ 257,974 Property, plant and equipment, beginning balance $ 24,397 $ 171,606 $ 4,352 $ 29,967 $ 27,652 $ 257,974 Additions 29,713 170,866 - - 12,000 212,579 Revaluation - - - - (3,619 ) (3,619 ) Balance at December 31, 2021 $ 54,110 $ 342,472 $ 4,352 $ 29,967 $ 36,033 $ 466,934 Property, plant and equipment, ending balance $ 54,110 $ 342,472 $ 4,352 $ 29,967 $ 36,033 $ 466,934 Accumulated depreciation Balance at January 1, 2020 $ 6,761 $ 37,944 $ - $ 19,294 $ - $ 63,999 Charge for the year 5,631 22,019 3,220 3,202 6,033 40,105 Balance at December 31, 2020 $ 12,392 $ 59,963 $ 3,220 $ 22,496 $ 6,033 $ 104,104 Accumulated depreciation Property, plant and equipment, beginning balance $ 12,392 $ 59,963 $ 3,220 $ 22,496 $ 6,033 $ 104,104 Charge for the year 12,899 42,314 1,132 2,241 7,201 65,787 Balance at December 31, 2021 $ 25,291 $ 102,277 $ 4,352 $ 24,737 $ 13,234 $ 169,891 Accumulated depreciation Property, plant and equipment, ending balance $ 25,291 $ 102,277 $ 4,352 $ 24,737 $ 13,234 $ 169,891 Net book value: December 31, 2020 $ 12,005 $ 111,643 $ 1,132 $ 7,471 $ 21,619 $ 153,870 December 31, 2021 $ 28,819 $ 240,195 $ - $ 5,230 $ 22,799 $ 297,043 Property, plant and equipment $ 28,819 $ 240,195 $ - $ 5,230 $ 22,799 $ 297,043 |
INTANGIBLE ASSETS AND GOODWILL
INTANGIBLE ASSETS AND GOODWILL (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
SCHEDULE OF INTELLECTUAL PROPERTY | SCHEDULE OF INTELLECTUAL PROPERTY Patents Customer Relationships Brand Software Goodwill Total Cost Balance at December 31, 2019 $ 41,931 $ - $ $ - $ - $ 41,931 Intangible assets acquired in the Transaction - 197,000 - 119,000 2,166,563 2,482,563 Balance at December 31, 2020 $ 41,931 $ 197,000 $ - $ 119,000 $ 2,166,563 $ 2,524,494 Intellectual properties and goodwill, beginning balance $ 41,931 $ 197,000 $ - $ 119,000 $ 2,166,563 $ 2,524,494 Intangible assets acquired in the Acquisition - - 23,000 433,000 8,353,609 8,809,609 Impairment of goodwill - - - - (4,579,763 ) (4,579,763 ) Balance at December 31, 2021 $ 41,931 $ 197,000 $ 23,000 $ 552,000 $ 5,940,409 $ 6,754,340 Intellectual properties and goodwill, Ending balance $ 41,931 $ 197,000 $ 23,000 $ 552,000 $ 5,940,409 $ 6,754,340 Accumulated amortization Balance at December 31, 2019 $ 40,546 $ - $ - $ - $ - $ 40,546 Change for the year 1,385 26,267 - 15,866 - 43,518 Balance at December 31, 2020 41,931 26,267 - 15,866 - 84,064 Accumulated amortization, beginning balance $ 41,931 $ 26,267 - $ 15,866 $ - $ 84,064 Change for the year - 34,147 3,450 98,369 - 135,966 Balance at December 31, 2021 $ 41,931 $ 60,414 $ 3,450 $ 114,235 $ - $ 220,030 Accumulated amortization, ending balance $ 41,931 $ 60,414 $ 3,450 $ 114,235 $ - $ 220,030 Net book value: December 31, 2020 $ - $ 170,733 $ - $ 103,134 $ 2,166,563 $ 2,440,430 December 31, 2021 $ - $ 136,586 $ 19,550 $ 437,765 $ 5,940,409 $ 6,534,310 Intellectual properties and goodwill $ - $ 136,586 $ 19,550 $ 437,765 $ 5,940,409 $ 6,534,310 |
RIGHT OF USE ASSETS (Tables)
RIGHT OF USE ASSETS (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Right Of Use Assets | |
SCHEDULE OF RIGHT OF USE ASSETS | SCHEDULE OF RIGHT OF USE ASSETS Total Cost Balance at December 31, 2019 $ 159,539 Leases acquired in the Acquisition 83,428 Balance at December 31, 2020 $ 242,967 Additions 447,242 Lease removal (7,092 ) Balance at December 31, 2021 $ 683,117 Accumulated depreciation Balance at December 31, 2019 $ 29,545 Charge for the year 69,003 Balance at December 31, 2020 $ 98,548 Historical correction 7,152 Charge for the year 109,311 Balance at December 31, 2021 $ 215,011 Net book value: December 31, 2020 $ 144,419 December 31, 2021 $ 468,106 |
LEASE LIABILITY (Tables)
LEASE LIABILITY (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Lease Liability | |
SCHEDULE OF OPERATING LEASE LIABILITIES | SCHEDULE OF OPERATING LEASE LIABILITIES Total Balance at December 31, 2019 $ 136,073 Leases acquired in the Acquisition 87,203 Interest expense 18,290 Lease Payments (83,442 ) Balance at December 31, 2020 $ 158,124 Addition 440,675 Interest expense 26,964 Lease payments (128,995 ) Lease removal (7,645 ) Balance at December 31, 2021 $ 489,123 Which consists of: Current lease liability $ 110,481 Non-current lease liability 378,642 Balance at December 31, 2021 $ 489,123 |
SCHEDULE OF OPERATING MATURITY ANALYSIS | SCHEDULE OF OPERATING MATURITY ANALYSIS Maturity analysis Total Less than one year $ 150,276 One to three years 251,765 Four to five years 183,473 Greater than five years 5,030 Total undiscounted lease liabilities 590,544 Maturity analysis 590,544 Amount representing implicit interest (101,421 ) Lease liability $ 489,123 |
TRADE PAYABLES AND ACCRUED LI_2
TRADE PAYABLES AND ACCRUED LIABILITIES (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Trade Payables And Accrued Liabilities | |
SCHEDULE OF TRADE PAYABLES AND ACCRUED LIABILITIES | SCHEDULE OF TRADE PAYABLES AND ACCRUED LIABILITIES December 31, 2021 December 31, 2020 Trade accounts payable $ 362,890 $ 813,881 Accrued liabilities 402,540 512,205 Due to related parties (Note 23) - 475,628 Government grant payable 33,709 33,709 GST/PST Payable - 21,754 Trade payables and accrued liabilities $ 799,139 $ 1,857,177 |
CUSTOMER DEPOSITS (Tables)
CUSTOMER DEPOSITS (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Customer Deposits | |
SCHEDULE OF CUSTOMER DEPOSITS | SCHEDULE OF CUSTOMER DEPOSITS December 31, 2021 December 31, 2020 Customer deposits $ 172,134 $ 385,449 |
DEFERRED INCOME (Tables)
DEFERRED INCOME (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
SCHEDULE OF DEFERRED INCOME | SCHEDULE OF DEFERRED INCOME December 31, 2021 December 31, 2020 Deferred income from customers $ 80,000 $ - Deferred income from government 5,233 5,062 Deferred income from note receivable accretion (11,947 ) - Deferred Income 73,286 5,062 |
LOANS PAYABLE (Tables)
LOANS PAYABLE (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Loans Payable | |
SCHEDULE OF LOANS PAYABLE | SCHEDULE OF LOANS PAYABLE December 31, 2021 December 31, 2020 Opening balance $ 97,916 $ - Acquisition of loans - 120,851 Issuance of loans payable 60,000 60,000 Fair value adjustment (24,576 ) (26,152 ) Repayment of loans payable (44,428 ) (57,873 ) Accretion expense 4,405 1,090 Ending balance $ 93,317 $ 97,916 |
SCHEDULE OF LOANS | SCHEDULE OF LOANS Start Date Maturity Date Rate Carrying Value December 31, 2021 Carrying Value December 31, 2020 CEBA 2020-05-19 2022-12-31 0 % $ 37,384 $ 34,938 CEBA 2021-04-23 2022-12-31 0 % 37,383 - Vehicle loan 2019-08-30 2024-09-11 6.99 % 18,550 25,295 Shopify loan 2020-08-05 7.00 % - 37,683 Total $ 93,317 $ 97,916 |
SHARE CAPITAL (Tables)
SHARE CAPITAL (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Share Capital | |
SCHEDULE OF STOCK OPTIONS OUTSTANDING AND EXERCISABLE | As at December 31, 2021, the Company had the following options outstanding and exercisable: SCHEDULE OF STOCK OPTIONS OUTSTANDING AND EXERCISABLE Grant Date Expiry Date Exercise Price Remaining Contractual Life (years) Number of Options Outstanding Number of Options Exercisable October 30, 2019 October 30, 2029 $ 2.50 7.84 296,665 296,665 November 19, 2019 November 19, 2029 $ 2.50 7.89 50,000 50,000 April 30, 2020 April 30, 2030 $ 2.50 8.33 87,000 78,666 April 30, 2020 April 30, 2030 $ 3.85 8.33 110,000 70,000 July 3, 2020 July 3, 2025 $ 3.20 3.51 200,000 166,666 November 24, 2020 November 24, 2030 $ 2.50 8.90 32,000 21,000 December 11, 2020 December 11, 2030 $ 2.15 8.95 12,500 12,500 February 2, 2021 February 2, 2031 $ 13.20 9.09 30,000 10,000 March 8, 2021 March 8, 2026 $ 13.90 4.19 10,000 5,000 April 27, 2021 April 27, 2031 $ 10.15 9.23 182,000 - September 9, 2021 September 9, 2026 $ 4.84 4.69 25,826 - 1,035,991 710,497 |
SUMMARY OF CHANGES IN STOCK OPTIONS | SUMMARY OF CHANGES IN STOCK OPTIONS Number of Options Weighted Average Exercise Price Outstanding, December 31, 2019 744,993 $ 2.50 Forfeited (43,334 ) 2.50 Granted 492,000 3.08 Outstanding, December 31, 2020 1,193,659 $ 2.75 Exercised (405,494 ) 2.50 Granted 247,826 10.12 Outstanding, December 31, 2021 1,035,991 $ 4.60 |
SCHEDULE OF WEIGHTED AVERAGE ASSUMPTIONS | SCHEDULE OF WEIGHTED AVERAGE ASSUMPTIONS Year ended December 31, 2021 2020 2019 Risk free interest rate 0.69% 1.40% 0.43% 0.66% 1.45% 1.46 % Expected volatility 62.84% 113.16% 113.53% 119.03% 100 % Expected life 5 years 5 10 7.5 Expected dividend yield 0 % 0 % 0 % Exercise price $ 4.84 13.90 $ 2.15 3.85 $ 2.50 |
SUMMARY OF CHANGES IN RESTRICTED STOCK UNITS | As at December 31, 2021, the Company had the following RSUs outstanding: SUMMARY OF CHANGES IN RESTRICTED STOCK UNITS Number of RSUs Outstanding, December 31, 2019 634,997 Vested (199,998 ) Forfeited (68,333 ) Issued 248,000 Outstanding, December 31, 2020 614,666 Vested (448,660 ) Issued 348,826 Outstanding, December 31, 2021 514,832 |
SCHEDULE OF WARRANT DERIVATIVE LIABILITY | Warrant Derivative Liability SCHEDULE OF WARRANT DERIVATIVE LIABILITY Balance at January 1, 2020 $ - Warrant issuance 281,732 Change in fair value of warrants outstanding 466,902 Balance at December 31, 2020 $ 748,634 Warrant issuance 8,261,511 Exercised (98,048 ) Change in fair value of warrants outstanding (4,046,325 ) Warrant Balance at December 31, 2021 4,865,772 Derivative liability Warrants $ 4,865,772 Contingent consideration (note 4) 694,230 Contingent consideration at December 31, 2021 $ 5,560,002 |
SCHEDULE OF WARRANTS AND FAIR VALUE OUTSTANDING | SCHEDULE OF WARRANTS AND FAIR VALUE OUTSTANDING Issue Date Exercise Price Number of Warrants Outstanding at December 31, 2021 Fair Value at December 31, 2021 Number of Warrants Outstanding at December 31, 2020 Fair Value at December 31, 2020 November 30, 2020 US$ 3.55 482,425 $ 182,262 511,299 $ 748,634 February 5, 2021 US$ 3.55 1,323,275 951,226 - - March 5, 2021 US$ 3.55 5,154,321 3,731,285 - - July 29, 2021 US$ 5.00 250,000 84,625 - - September 14, 2021 US$ 5.00 4,798 1,685 - - 7,214,819 $ 4,865,772 511,299 $ 748,634 |
SCHEDULE OF WEIGHTED AVERAGE ASSUMPTION FOR WARRANTS | SCHEDULE OF WEIGHTED AVERAGE ASSUMPTION FOR WARRANTS Year ended December 31, 2021 2020 Risk free interest rate 0.23% - 0.95 0.20% 0.24% Expected volatility 70.95% 144.59% 72.76% 74.10% Expected life 2 3 2 Expected dividend yield 0% 0% |
SUMMARY OF CHANGES IN WARRANTS | SUMMARY OF CHANGES IN WARRANTS Number of Warrants Weighted Average Exercise Price Outstanding, December 31, 2019 3,610,340 $ 2.05 Exercised (1,584,775 ) 1.50 Forfeited (120,000 ) 2.50 Issued 511,299 3.55 Outstanding, December 31, 2020 2,416,864 $ 2.95 Exercised (1,939,534 ) 2.54 Forfeited (6,000 ) 2.50 Issued 7,943,489 5.10 Outstanding, December 31, 2021 8,414,819 $ 4.99 |
SCHEDULE OF WARRANTS OUTSTANDING | As at December 31, 2021, the Company had the following warrants outstanding: SCHEDULE OF WARRANTS OUTSTANDING Date issued Expiry date Exercise price Number of warrants outstanding November 30, 2020 November 30, 2022 US$ 3.55 482,425 February 5, 2021 February 5, 2023 US$ 3.55 1,323,275 March 5, 2021 March 5, 2023 US$ 3.55 5,154,321 March 22, 2021 March 22, 2023 CDN$ 13.35 1,200,000 July 29, 2021 July 29, 2024 US$ 5.00 250,000 September 14, 2021 September 14, 2024 US$ 5.00 4,798 8,414,819 |
REVENUE (Tables)
REVENUE (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Revenue | |
SCHEDULE OF PRODUCT AND SERVICE REVENUE | SCHEDULE OF PRODUCT AND SERVICE REVENUE For the years ended December 31, 2021 2020 2019 Product sales $ 5,103,399 $ 3,087,223 $ 248,939 Drone service 1,304,799 630,532 - Services 645,667 645,756 1,131,488 Revenue $ 7,053,865 $ 4,363,511 $ 1,380,427 |
SCHEDULE OF GEOGRAPHIC REVENUE | Geographic revenue segmentation is as follows: SCHEDULE OF GEOGRAPHIC REVENUE For the years ended December 31, 2021 2020 2019 Canada $ 4,937,935 $ 2,270,862 $ 127,118 United States 2,071,492 1,982,404 1,251,199 International 44,438 110,245 2,110 Revenue $ 7,053,865 $ 4,363,511 $ 1,380,427 |
SCHEDULE OF OPERATING SEGMENTS | Non current assets for each geographic segment are as follows: SCHEDULE OF OPERATING SEGMENTS Canada United States International For the years ended December 31, Canada United States International Goodwill $ 2,166,564 $ 3,773,845 $ - Property and equipment 297,043 - - Intangible assets 219,093 374,808 - Investments 291,066 - - Notes receivable - 964,006 - Right of use assets 468,106 - - TOTAL ASSETS $ 3,441,872 $ 5,112,659 $ - Draganfly Inc. Notes to the Consolidated Financial Statements For The Year Ended December 31, 2021 Expressed in Canadian Dollars |
OFFICE AND MISCELLANEOUS (Table
OFFICE AND MISCELLANEOUS (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Office And Miscellaneous | |
SCHEDULE OF OFFICE AND MISCELLANEOUS EXPENSES | SCHEDULE OF OFFICE AND MISCELLANEOUS EXPENSES 2021 2020 2019 For the years ended December 31, 2021 2020 2019 Advertising, Marketing, and Investor Relations $ 5,165,791 $ 2,610,930 $ 1,356,174 Compliance fees 432,874 122,916 80,525 Contract Work 300,975 399,546 438,601 Other 556,358 254,473 228,432 Office and Miscellaneous Expenses $ 6,455,998 $ 3,387,865 $ 2,103,732 |
RELATED PARTY TRANSACTIONS (Tab
RELATED PARTY TRANSACTIONS (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
SCHEDULE OF KEY MANAGEMENT TRANSACTIONS | Key management includes the Company’s directors and members of the executive management team. Compensation awarded to key management for the year ended December 31, 2021 and 2020 included: SCHEDULE OF KEY MANAGEMENT TRANSACTIONS For the years ended December 31, 2021 2020 2019 Director fees $ 370,094 $ - $ - Management fees paid to a company controlled by CEO and director 290,225 737,164 186,000 Management fees paid to a company controlled by the President and director 205,691 227,524 - Management fees paid to a company controlled by a former director 500,074 165,000 195,000 Management fees paid to a company 500,074 165,000 195,000 Salaries 722,068 655,799 179,429 Salaries paid to the former owner of the Company - 86,097 149,060 Salaries - 86,097 149,060 Share-based payments 2,475,949 1,614,158 480,158 Total $ 4,564,102 $ 3,485,742 1,189,647 |
FINANCIAL INSTRUMENTS AND FIN_2
FINANCIAL INSTRUMENTS AND FINANCIAL RISK MANAGEMENT (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Financial Instruments And Financial Risk Management | |
SCHEDULE OF CHANGES IN FOREIGN EXCHANGE RATES | The following table summarizes the sensitivity of the fair value of the Company’s risk to foreign exchange rates, with all other variables held constant. Fluctuations of 10 percent in the foreign exchange rate between US dollars and Canadian dollars could have resulted in a change impacting net income upon consolidation as follows: SCHEDULE OF CHANGES IN FOREIGN EXCHANGE RATES December 31, 2021 December 31, 2020 Foreign exchange rate $ 150,715 $ 27,018 |
SCHEDULE OF FINANCIAL ASSETS MEASURED FAIR VALUE THROUGH PROFIT AND LOSS | SCHEDULE OF FINANCIAL ASSETS MEASURED FAIR VALUE THROUGH PROFIT AND LOSS December 31, 2021 Level 1 Level 2 Level 3 Total Equity securities in investee companies $ 164,286 $ 126,780 $ - $ 291,066 Notes receivable - 1,154,176 - 1,154,176 Derivative liability - 5,560,002 5,560,002 Total $ 164,286 $ 1,280,956 $ 5,560,002 $ 7,005,244 December 31, 2021 Level 1 Level 2 Level 3 Total Derivative liability - - 748,634 748,634 Total $ - $ - $ 748,634 $ 748,634 |
SCHEDULE OF BREAKDOWN CAPITAL | The breakdown of the Company’s capital is as follows: SCHEDULE OF BREAKDOWN CAPITAL December 31, 2021 December 31, 2020 Cash $ 23,075,713 $ 1,982,416 Debt 93,317 97,916 Equity $ 34,926,239 $ 3,848,205 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
SCHEDULE OF INCOME TAX | SCHEDULE OF INCOME TAX December 31, 2021 December 31, 2020 December 31, 2019 Loss before income taxes $ 16,202,972 $ 8,015,813 $ 11,095,507 Canadian statutory rates 27 % 27 % Expected income tax recovery 4,196,600 2,164,000 2,996,000 Impact of different foreign statutory tax rates 34,900 - - Non-deductible items 116,400 (687,000 ) (2,043,000 ) Share issue costs 887,600 - - Adjustments to prior years provision versus statutory tax returns 376,500 189,000 (388,000 ) Differences between prior year provision and final tax return (206,000 ) (535,000 ) (18,000 ) Change in deferred tax asset not recognized (5,406,000 ) (1,131,000 ) (547,000 ) Income tax $ - $ - $ - |
SCHEDULE OF DEFERRED TAXES | The Company’s unrecognized deductible temporary differences and unused tax losses for which no deferred tax asset is recognized consist of the following amounts: SCHEDULE OF DEFERRED TAXES December 31, 2021 December 31, 2020 December 31, 2019 Deferred income tax assets (liabilities): Share issuance costs $ 728,000 $ 30,000 $ - Non-capital losses 7,043,000 3,656,000 2,439,000 Property and equipment 449,000 457,000 581,000 Capital gain reserve 74,000 - - Scientific Research and Experimental Development 291,000 57,000 49,000 Total deferred income tax assets $ 8,585,000 $ 4,200,000 $ 3,069,000 Deferred income tax not recognized (8,585,000 ) (4,200,000 ) (3,069,000 ) Net deferred tax assets $ - $ - $ - |
SCHEDULE OF RESULTS OF OPERATIO
SCHEDULE OF RESULTS OF OPERATIONS (Details) | 12 Months Ended |
Dec. 31, 2021 | |
Draganfly Innovations Inc [Member] | |
Reserve Quantities [Line Items] | |
Name of subsidiary | Draganfly Innovations Inc. |
Country of incorporation of subsidiary | Canada |
Proportion of ownership interest in subsidiary | 100.00% |
Draganfly Innovations USA Inc [Member] | |
Reserve Quantities [Line Items] | |
Name of subsidiary | Draganfly Innovations USA, Inc. |
Country of incorporation of subsidiary | US |
Proportion of ownership interest in subsidiary | 100.00% |
Dronelogics Systems Inc. [Member] | |
Reserve Quantities [Line Items] | |
Name of subsidiary | Dronelogics Systems Inc. |
Country of incorporation of subsidiary | Canada |
Proportion of ownership interest in subsidiary | 100.00% |
SCHEDULE OF CLASS OF EQUIPMENT
SCHEDULE OF CLASS OF EQUIPMENT (Details) | 12 Months Ended |
Dec. 31, 2021 | |
Computer equipment [member] | |
IfrsStatementLineItems [Line Items] | |
Depreciation rate | 30.00% |
Furniture and Equipment [Member] | |
IfrsStatementLineItems [Line Items] | |
Depreciation rate | 20.00% |
Leasehold improvements [member] | |
IfrsStatementLineItems [Line Items] | |
Depreciation rate, description | Over expected life of lease |
Computer software [member] | |
IfrsStatementLineItems [Line Items] | |
Depreciation rate | 30.00% |
Vehicles [member] | |
IfrsStatementLineItems [Line Items] | |
Depreciation rate | 30.00% |
SCHEDULE OF PURCHASE PRICE ALLO
SCHEDULE OF PURCHASE PRICE ALLOCATION (Details) - Dronelogics Systems Inc. [Member] | Apr. 30, 2020CAD ($)$ / sharesshares |
IfrsStatementLineItems [Line Items] | |
Number of shares of Draganfly Inc. | shares | 645,088 |
Fair value of common shares | $ / shares | $ 4.15 |
Fair value of shares of Draganfly Inc. | $ 2,178,960 |
Cash portion of purchase price | 500,000 |
Total | 2,678,960 |
Cash | 42,593 |
Accounts receivable | 98,852 |
Inventory | 629,684 |
Prepaids and deposits | 93,997 |
Other current assets | 3,014 |
Capital assets | 54,946 |
Right-of-use assets | 83,428 |
Accounts payable and accrued liabilities | (222,766) |
Customer deposits | (245,959) |
Loans | (245,752) |
Other current liabilities | (8,437) |
Lease liabilities | (87,203) |
Total tangible assets acquired | 196,397 |
Customer relationships | 197,000 |
Website | 119,000 |
Total identifiable intangible assets | 316,000 |
Goodwill | 2,166,563 |
Total consideration | $ 2,678,960 |
DRONELOGICS ACQUISITION (Detail
DRONELOGICS ACQUISITION (Details Narrative) | Apr. 30, 2020CAD ($)shares | Apr. 30, 2020CAD ($)shares$ / shares | Dec. 31, 2020CAD ($) | Dec. 31, 2021CAD ($)shares | Dec. 31, 2020CAD ($)shares | Dec. 31, 2019CAD ($) |
IfrsStatementLineItems [Line Items] | ||||||
Number of share options granted in share-based payment arrangement | 247,826 | 492,000 | ||||
Revenue | $ | $ 7,053,865 | $ 4,363,511 | $ 1,380,427 | |||
Profit (loss) | $ | $ (16,202,972) | $ (8,015,813) | $ (11,095,057) | |||
Restricted Stock Units [Member] | ||||||
IfrsStatementLineItems [Line Items] | ||||||
Number of other equity instruments exercised or vested in share-based payment arrangement | 124,999 | |||||
Employee [Member] | ||||||
IfrsStatementLineItems [Line Items] | ||||||
Number of share options granted in share-based payment arrangement | 30,000 | 89,000 | ||||
Dronelogics Systems Inc. [Member] | ||||||
IfrsStatementLineItems [Line Items] | ||||||
Acquisition date fair value of total consideration cash transferred | $ | $ 500,000 | $ 500,000 | ||||
Acquisition date shares transferred | 645,088 | |||||
Advisors fees expenses | $ | 160,000 | |||||
Advisiors fees paid in value of shares | $ | $ 100,000 | |||||
Advisory fees expenses paid in shares | 40,000 | |||||
Advisory fees expenses value per share | $ / shares | $ 2.50 | |||||
Advisors fees paid in cash | $ | $ 60,000 | |||||
Number of other equity instruments exercised or vested in share-based payment arrangement | 14,000 | |||||
Attribution rate percentage | 0.15 | |||||
Discount rate | 0.18 | |||||
Royalty percentage | 0.005 | |||||
Royalty discount percentage | 0.17 | |||||
Revenue | $ | $ 4,086,350 | |||||
Profit (loss) | $ | $ 434,528 | |||||
Dronelogics Systems Inc. [Member] | First and Second Anniversary [Member] | ||||||
IfrsStatementLineItems [Line Items] | ||||||
Number of other equity instruments exercised or vested in share-based payment arrangement | 70,000 | |||||
Dronelogics Systems Inc. [Member] | Employee [Member] | ||||||
IfrsStatementLineItems [Line Items] | ||||||
Number of share options granted in share-based payment arrangement | 89,000 | |||||
Dronelogics Systems Inc. [Member] | Certain Directors and Officers [Member] | Restricted Stock Units [Member] | ||||||
IfrsStatementLineItems [Line Items] | ||||||
Number of other equity instruments exercised or vested in share-based payment arrangement | 75,000 |
SCHEDULE OF CONTINGENT CONSIDER
SCHEDULE OF CONTINGENT CONSIDERATION (Details) | 12 Months Ended |
Dec. 31, 2021CAD ($) | |
Vital Intelligence Acquisition | |
Fair value of contingent consideration | $ 4,797,717 |
Change in fair value of contingent consideration | (4,103,487) |
Contingent consideration at December 31, 2021 (note 20) | $ 694,230 |
SCHEDULE OF PURCHASE PRICE AL_2
SCHEDULE OF PURCHASE PRICE ALLOCATION FOR VITAL INTELLIGENCE (Details) - CAD ($) | Mar. 25, 2021 | Dec. 31, 2021 | Dec. 31, 2020 |
Reserve Quantities [Line Items] | |||
Goodwill | $ 5,940,409 | $ 2,166,563 | |
Vital Intelligence Inc [Member] | |||
Reserve Quantities [Line Items] | |||
Number of units of Draganfly Inc. | 578,248 | ||
Fair value of units | $ 14.43 | ||
Fair value of units of Draganfly Inc. | $ 8,342,966 | ||
Cash portion of purchase price | 466,643 | ||
Total | 8,809,609 | ||
Identifiable intangible assets, Brand | 23,000 | ||
Identifiable intangible assets, Software | 433,000 | ||
Identifiable intangible assets | 456,000 | ||
Goodwill | 8,353,609 | ||
Total consideration | $ 8,809,609 |
VITAL INTELLIGENCE ACQUISITIO_2
VITAL INTELLIGENCE ACQUISITION (Details Narrative) | Aug. 19, 2021CAD ($)shares | Mar. 25, 2021CAD ($)$ / sharesshares | Dec. 31, 2021CAD ($)shares | Dec. 31, 2021CAD ($)shares | Dec. 31, 2020CAD ($) | Dec. 31, 2019CAD ($) |
Reserve Quantities [Line Items] | ||||||
Shares held in escrow | shares | 900,000 | |||||
Derivative financial liabilities | $ 4,797,717 | |||||
Increase (decrease) in credit derivative, fair value | $ 694,230 | |||||
Revenue | 7,053,865 | $ 4,363,511 | $ 1,380,427 | |||
Profit (loss) | $ (16,202,972) | $ (8,015,813) | $ (11,095,057) | |||
Vital Intelligence Inc [Member] | ||||||
Reserve Quantities [Line Items] | ||||||
Revenue | $ 115,369 | |||||
Profit (loss) | $ 203,231 | |||||
Escrow Agreement One [Member] | ||||||
Reserve Quantities [Line Items] | ||||||
Stock issued, shares | shares | 300,000 | |||||
Escrow Agreement Two [Member] | ||||||
Reserve Quantities [Line Items] | ||||||
Stock issued, shares | shares | 300,000 | |||||
Shares issued, amount | $ 2,000,000 | |||||
Escrow Agreement Three [Member] | ||||||
Reserve Quantities [Line Items] | ||||||
Stock issued, shares | shares | 300,000 | |||||
Shares issued, amount | $ 4,000,000 | |||||
Escrow Agreement Four [Member] | ||||||
Reserve Quantities [Line Items] | ||||||
Stock issued, shares | shares | 300,000 | |||||
Shares issued, amount | $ 6,000,000 | |||||
Vital Intelligence Inc [Member] | ||||||
Reserve Quantities [Line Items] | ||||||
Number of shares issued | shares | 1,200,000 | 1,200,000 | ||||
Vital Intelligence Inc [Member] | Brand [Member] | ||||||
Reserve Quantities [Line Items] | ||||||
Royalty Percentage | 0.0025 | |||||
Royalty discount percentage | 0.144 | |||||
Vital Intelligence Inc [Member] | Software [Member] | ||||||
Reserve Quantities [Line Items] | ||||||
Royalty Percentage | 0.050 | |||||
Royalty discount percentage | 0.144 | |||||
Vital Intelligence Inc [Member] | Asset Purchase Agreement [Member] | ||||||
Reserve Quantities [Line Items] | ||||||
Payment to acquire assets | $ 500,000 | |||||
Number of shares issued | shares | 1,200,000 | |||||
Explanation of nature and amount of significant transactions | the Company with each unit being comprised of one common share and one warrant (the “Acquisition”). Each warrant will entitle the holder to acquire one common share for a period of 24 months following closing for $13.35 and the Company will be able to accelerate the expiry date of the warrants after one year in the event the underlying common shares have a value of at least 30% greater than the exercise price of the warrants. The units will be held in escrow with 300,000 units being released at closing and the remainder to be released upon the Company reaching certain revenue milestones received from the purchased assets. | |||||
Warrant exercise price per share | $ / shares | $ 13.35 | |||||
Warrant expiration term | 1 year | |||||
Escrow deposit units | shares | 300,000 | |||||
Description for Number of Shares Issued | The units were issued on March 22, 2021 | |||||
Vital Intelligence Inc [Member] | Asset Purchase Agreement [Member] | Maximum [Member] | ||||||
Reserve Quantities [Line Items] | ||||||
Final payment | 250,000 | |||||
Vital Intelligence Inc [Member] | Asset Purchase Agreement [Member] | Minimum [Member] | ||||||
Reserve Quantities [Line Items] | ||||||
Final payment | $ 227,984 |
SUMMARY OF HISTORICAL FINANCIAL
SUMMARY OF HISTORICAL FINANCIAL INFORMATION (Details) - CAD ($) | Aug. 15, 2019 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Number of shares of Draganfly Inc. | 2,100,000 | |||
Fair value of common shares in concurrent financing | $ 2.50 | |||
Fair value of shares of Draganfly Inc. | $ 5,250,001 | |||
Fair value of warrants | 1,645,193 | |||
Fair value of shares issued for transaction fees | 1,000,000 | |||
Net assets acquired | (90,335) | |||
Listing expense | 7,804,859 | $ 7,804,859 | ||
Cash | 28,538 | |||
Accounts receivable | 4,991 | |||
Loans receivable | 963,269 | |||
Accounts payable and accrued liabilities | (406,463) | |||
Subscription receipts | (500,000) | |||
Net of liabilities | $ 90,335 | $ 7,187,001 | $ 3,252,362 |
SUMMARY OF FAIR VALUE MEASUREME
SUMMARY OF FAIR VALUE MEASUREMENT INPUTS AND VALUATION TECHNIQUES (Details) | Feb. 04, 2021 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
IfrsStatementLineItems [Line Items] | ||||
Expected volatility | 100.00% | |||
Expected dividend yield | 0.00% | 0.00% | 0.00% | |
Warrant reserve [member] | ||||
IfrsStatementLineItems [Line Items] | ||||
Risk-free interest rate | 0.86% | |||
Estimated life | 1.48 | |||
Expected volatility | 100.00% | |||
Expected dividend yield | 0.00% |
AMALGAMATION (Details Narrative
AMALGAMATION (Details Narrative) - CAD ($) | Feb. 04, 2021 | Aug. 15, 2019 | Jan. 31, 2019 | Dec. 31, 2019 |
IfrsStatementLineItems [Line Items] | ||||
Transaction fees | $ 1,000,000 | |||
Fair value of warrants | $ 8,833 | |||
Draganfly Innovations Shares [Member] | ||||
IfrsStatementLineItems [Line Items] | ||||
Exchange of common stocks | 8,527,671 | 8,517,671 | ||
Common stock, issued | 10,500,001 | 222,965 | ||
Exercisable warrant price | $ 0.50 | $ 2.50 | ||
Transaction fees | $ 1,000,000 | |||
Fair value of warrants | $ 1,645,193 | |||
Proceeds from subscription receipts | $ 7,025,750 | |||
Draganfly Innovations Shares [Member] | Warrant reserve [member] | ||||
IfrsStatementLineItems [Line Items] | ||||
Common stock, issued | 800,000 |
SCHEDULE OF CASH AND CASH EQUIV
SCHEDULE OF CASH AND CASH EQUIVALENTS (Details) - CAD ($) | Dec. 31, 2021 | Dec. 31, 2020 |
Cash held in banks | $ 22,729,212 | $ 1,839,871 |
Guaranteed investment certificates | 346,501 | 142,545 |
Cash and Cash Equivalents | $ 23,075,713 | $ 1,982,416 |
CASH AND CASH EQUIVALENTS (Deta
CASH AND CASH EQUIVALENTS (Details Narrative) - Guaranteed Investment Certificate [Member] - CAD ($) | Dec. 21, 2021 | May 28, 2021 | Mar. 27, 2021 | Mar. 27, 2020 |
IfrsStatementLineItems [Line Items] | ||||
Purchase of financial instrument | $ 50,000 | $ 140,000 | $ 142,000 | |
Financial instrument term | 1 year | 1 year | 1 year | |
Average effective Instrument rate | 0.05% | 0.35% | 0.50% | |
Renew of financial instruments | $ 142,710 | |||
Renewed financial instrument term | 1 year | |||
Renewed effective instrument rate | 0.10% |
SCHEDULE OF AMOUNTS RECEIVABLE
SCHEDULE OF AMOUNTS RECEIVABLE (Details) - CAD ($) | Dec. 31, 2021 | Dec. 31, 2020 |
Schedule Of Amounts Receivable | ||
Trade accounts receivable | $ 951,314 | $ 780,254 |
Corporate taxes receivable | 182,820 | |
GST receivable | 272,993 | |
SR&ED receivable | 30,537 | |
Trade and other receivables | $ 1,407,127 | $ 810,791 |
SCHEDULE OF INVENTORIES (Detail
SCHEDULE OF INVENTORIES (Details) - CAD ($) | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Finished goods | $ 3,017,363 | $ 1,155,871 | |
Parts | 373,459 | 77,748 | 48,653 |
Inventories | $ 3,390,822 | $ 1,233,619 | $ 48,653 |
SCHEDULE OF COST OF SALES (Deta
SCHEDULE OF COST OF SALES (Details) - CAD ($) | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Inventory | $ 3,420,713 | $ 2,257,797 | $ 118,626 |
Consulting and services | 679,345 | 164,119 | 86,280 |
Other | 310,719 | 181,995 | 13,894 |
Cost of sales | $ 4,410,777 | $ 2,603,911 | $ 218,800 |
INVENTORY (Details Narrative)
INVENTORY (Details Narrative) - CAD ($) | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
IfrsStatementLineItems [Line Items] | |||
Cost of sales | $ 4,410,777 | $ 2,603,911 | $ 218,800 |
Inventory write-down | 23,955 | ||
Inventory [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Cost of sales | $ 3,420,713 | $ 2,257,797 | $ 118,826 |
DISCLOSURE OF NOTES RECEIVABLE
DISCLOSURE OF NOTES RECEIVABLE (Details) | 12 Months Ended | |
Dec. 31, 2021CAD ($) | ||
IfrsStatementLineItems [Line Items] | ||
Principal | $ 1,988,815 | |
Interest | 39,794 | |
Accretion | 17,038 | |
Impairment loss | (891,471) | |
Note receivable | $ 1,154,176 | |
Note One [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Start Date | Apr. 21, 2021 | [1] |
Maturity Date | Oct. 21, 2022 | [1] |
Interest Rate | 0.00% | [1] |
Principal | $ 180,597 | [1] |
Interest | [1] | |
Accretion | 9,573 | [1] |
Impairment loss | [1] | |
Note receivable | $ 190,170 | [1] |
Note Two [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Start Date | Jun. 1, 2021 | [1] |
Maturity Date | Jun. 1, 2023 | [1] |
Interest Rate | 8.00% | [1] |
Principal | $ 114,833 | [1] |
Interest | 5,378 | [1] |
Accretion | [1] | |
Impairment loss | (120,211) | [1] |
Note receivable | [1] | |
Note 3 [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Start Date | Sep. 22, 2021 | [1] |
Maturity Date | Sep. 22, 2024 | [1] |
Interest Rate | 5.00% | [1] |
Principal | $ 943,385 | [1] |
Interest | 13,156 | [1] |
Accretion | 7,465 | [1] |
Impairment loss | [1] | |
Note receivable | $ 964,006 | [1] |
Note 4 [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Start Date | Nov. 17, 2021 | |
Maturity Date | Apr. 26, 2022 | [1] |
Interest Rate | 8.00% | |
Principal | $ 750,000 | |
Interest | 21,260 | |
Accretion | ||
Impairment loss | (771,260) | |
Note receivable | ||
[1] | These notes are denominated in US dollars and are converted to Canadian dollars at the reporting date. |
NOTES RECEIVABLE (Details Narra
NOTES RECEIVABLE (Details Narrative) | 12 Months Ended | |
Dec. 31, 2021CAD ($) | ||
Note Two [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Note receivable interest rate | 8.00% | [1] |
Loans written down | ||
Note 3 [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Note receivable interest rate | 5.00% | [1] |
Note 4 [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Note receivable interest rate | 8.00% | |
Loans written down | ||
[1] | These notes are denominated in US dollars and are converted to Canadian dollars at the reporting date. |
SCHEDULE OF PREPAID EXPENSES AN
SCHEDULE OF PREPAID EXPENSES AND DEPOSITS (Details) - CAD ($) | Dec. 31, 2021 | Dec. 31, 2020 |
Insurance | $ 2,938,246 | $ 992 |
Prepaid director fees | 107,763 | |
Prepaid interest | 6,969 | |
Prepaid marketing services | 1,638,179 | 187,826 |
Prepaid rent | 3,583 | |
Prepaid subscriptions | 35,687 | 5,953 |
Deposits | 768,033 | 136,668 |
Prepaid expenses and deposits | $ 5,494,877 | $ 335,022 |
SCHEDULE OF INVESTMENTS (Detail
SCHEDULE OF INVESTMENTS (Details) | 12 Months Ended |
Dec. 31, 2021CAD ($) | |
IfrsStatementLineItems [Line Items] | |
Balance at December 31, 2020 | |
Investments | 623,706 |
Change in fair value | (332,640) |
Balance at December 31, 2021 | 291,066 |
Public Company Shares [Member] | |
IfrsStatementLineItems [Line Items] | |
Balance at December 31, 2021 | 142,857 |
Public Company Warrants [Member] | |
IfrsStatementLineItems [Line Items] | |
Balance at December 31, 2021 | 21,429 |
Private Company Shares [Member] | |
IfrsStatementLineItems [Line Items] | |
Balance at December 31, 2021 | $ 126,780 |
SCHEDULE OF WEIGHTED AVERAGE AS
SCHEDULE OF WEIGHTED AVERAGE ASSUMPTION FOR FAIR VALUES WARRANTS (Details) | Mar. 10, 2021 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
IfrsStatementLineItems [Line Items] | ||||
Expected volatility | 100.00% | |||
Expected life | 5 years | 7 years 6 months | ||
Expected dividend yield | 0.00% | 0.00% | 0.00% | |
Warrants [Member] | ||||
IfrsStatementLineItems [Line Items] | ||||
Risk free interest rate | 0.28% | 0.91% | ||
Expected volatility | 150.88% | 124.09% | ||
Expected life | 2 years | 2 years | 2 years | |
Expected dividend yield | 0.00% | 0.00% | 0.00% |
INVESTMENTS (Details Narrative)
INVESTMENTS (Details Narrative) - CAD ($) | Oct. 27, 2021 | Mar. 10, 2021 |
Disclosure Investments Abstract | ||
Number of shares purchased | 50,000 | 1,428,571 |
Number of shares purchased, value | $ 100,000 | $ 500,000 |
warrant, exercise price | $ 0.50 | |
Warrants expiration date | Mar. 17, 2023 |
SCHEDULE OF PROPERTY, PLANT AND
SCHEDULE OF PROPERTY, PLANT AND EQUIPMENT (Details) - CAD ($) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
IfrsStatementLineItems [Line Items] | ||
Property, plant and equipment, beginning balance | $ 257,974 | $ 179,140 |
Additions | 212,579 | 23,888 |
Net assets acquired in the Transaction | 54,946 | |
Revaluation | (3,619) | |
Property, plant and equipment, ending balance | 466,934 | 257,974 |
Accumulated depreciation Property, plant and equipment, beginning balance | 104,104 | 63,999 |
Charge for the year | 65,787 | 40,105 |
Accumulated depreciation Property, plant and equipment, ending balance | 169,891 | 104,104 |
Property, plant and equipment | 297,043 | 153,870 |
Computer equipment [member] | ||
IfrsStatementLineItems [Line Items] | ||
Property, plant and equipment, beginning balance | 24,397 | 7,000 |
Additions | 29,713 | 2,028 |
Net assets acquired in the Transaction | 15,369 | |
Revaluation | ||
Property, plant and equipment, ending balance | 54,110 | 24,397 |
Accumulated depreciation Property, plant and equipment, beginning balance | 12,392 | 6,761 |
Charge for the year | 12,899 | 5,631 |
Accumulated depreciation Property, plant and equipment, ending balance | 25,291 | 12,392 |
Property, plant and equipment | 28,819 | 12,005 |
Furniture and Equipment [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Property, plant and equipment, beginning balance | 171,606 | 142,173 |
Additions | 170,866 | 21,860 |
Net assets acquired in the Transaction | 7,573 | |
Revaluation | ||
Property, plant and equipment, ending balance | 342,472 | 171,606 |
Accumulated depreciation Property, plant and equipment, beginning balance | 59,963 | 37,944 |
Charge for the year | 42,314 | 22,019 |
Accumulated depreciation Property, plant and equipment, ending balance | 102,277 | 59,963 |
Property, plant and equipment | 240,195 | 111,643 |
Leasehold improvements [member] | ||
IfrsStatementLineItems [Line Items] | ||
Property, plant and equipment, beginning balance | 4,352 | |
Additions | ||
Net assets acquired in the Transaction | 4,352 | |
Revaluation | ||
Property, plant and equipment, ending balance | 4,352 | 4,352 |
Accumulated depreciation Property, plant and equipment, beginning balance | 3,220 | |
Charge for the year | 1,132 | 3,220 |
Accumulated depreciation Property, plant and equipment, ending balance | 4,352 | 3,220 |
Property, plant and equipment | 1,132 | |
Computer software [member] | ||
IfrsStatementLineItems [Line Items] | ||
Property, plant and equipment, beginning balance | 29,967 | 29,967 |
Additions | ||
Net assets acquired in the Transaction | ||
Revaluation | ||
Property, plant and equipment, ending balance | 29,967 | 29,967 |
Accumulated depreciation Property, plant and equipment, beginning balance | 22,496 | 19,294 |
Charge for the year | 2,241 | 3,202 |
Accumulated depreciation Property, plant and equipment, ending balance | 24,737 | 22,496 |
Property, plant and equipment | 5,230 | 7,471 |
Vehicles [member] | ||
IfrsStatementLineItems [Line Items] | ||
Property, plant and equipment, beginning balance | 27,652 | |
Additions | 12,000 | |
Net assets acquired in the Transaction | 27,652 | |
Revaluation | (3,619) | |
Property, plant and equipment, ending balance | 36,033 | 27,652 |
Accumulated depreciation Property, plant and equipment, beginning balance | 6,033 | |
Charge for the year | 7,201 | 6,033 |
Accumulated depreciation Property, plant and equipment, ending balance | 13,234 | 6,033 |
Property, plant and equipment | $ 22,799 | $ 21,619 |
SCHEDULE OF INTELLECTUAL PROPER
SCHEDULE OF INTELLECTUAL PROPERTY (Details) - CAD ($) | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
IfrsStatementLineItems [Line Items] | |||
Intellectual properties and goodwill, beginning balance | $ 2,524,494 | $ 41,931 | |
Intangible assets acquired in the Acquisition | 8,809,609 | 2,482,563 | |
Impairment of goodwill | (4,579,763) | ||
Intellectual properties and goodwill, Ending balance | 6,754,340 | 2,524,494 | 41,931 |
Accumulated amortization, beginning balance | 84,064 | 40,546 | |
Change for the year | 135,966 | 43,518 | |
Accumulated amortization, ending balance | 220,030 | 84,064 | 40,546 |
Intellectual properties and goodwill | 6,534,310 | 2,440,430 | |
Patent [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Intellectual properties and goodwill, beginning balance | 41,931 | 41,931 | |
Intangible assets acquired in the Acquisition | |||
Impairment of goodwill | |||
Intellectual properties and goodwill, Ending balance | 41,931 | 41,931 | 41,931 |
Accumulated amortization, beginning balance | 41,931 | 40,546 | |
Change for the year | 1,385 | ||
Accumulated amortization, ending balance | 41,931 | 41,931 | 40,546 |
Intellectual properties and goodwill | |||
Customer Relationship [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Intellectual properties and goodwill, beginning balance | 197,000 | ||
Intangible assets acquired in the Acquisition | 197,000 | ||
Impairment of goodwill | |||
Intellectual properties and goodwill, Ending balance | 197,000 | 197,000 | |
Accumulated amortization, beginning balance | 26,267 | ||
Change for the year | 34,147 | 26,267 | |
Accumulated amortization, ending balance | 60,414 | 26,267 | |
Intellectual properties and goodwill | 136,586 | 170,733 | |
Brand [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Intellectual properties and goodwill, beginning balance | |||
Intangible assets acquired in the Acquisition | 23,000 | ||
Impairment of goodwill | |||
Intellectual properties and goodwill, Ending balance | 23,000 | ||
Accumulated amortization, beginning balance | |||
Change for the year | 3,450 | ||
Accumulated amortization, ending balance | 3,450 | ||
Intellectual properties and goodwill | 19,550 | ||
Software [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Intellectual properties and goodwill, beginning balance | 119,000 | ||
Intangible assets acquired in the Acquisition | 433,000 | 119,000 | |
Impairment of goodwill | |||
Intellectual properties and goodwill, Ending balance | 552,000 | 119,000 | |
Accumulated amortization, beginning balance | 15,866 | ||
Change for the year | 98,369 | 15,866 | |
Accumulated amortization, ending balance | 114,235 | 15,866 | |
Intellectual properties and goodwill | 437,765 | 103,134 | |
Goodwill [member] | |||
IfrsStatementLineItems [Line Items] | |||
Intellectual properties and goodwill, beginning balance | 2,166,563 | ||
Intangible assets acquired in the Acquisition | 8,353,609 | 2,166,563 | |
Impairment of goodwill | (4,579,763) | ||
Intellectual properties and goodwill, Ending balance | 5,940,409 | 2,166,563 | |
Accumulated amortization, beginning balance | |||
Change for the year | |||
Accumulated amortization, ending balance | |||
Intellectual properties and goodwill | $ 5,940,409 | $ 2,166,563 |
INTANGIBLE ASSETS AND GOODWIL_2
INTANGIBLE ASSETS AND GOODWILL (Details Narrative) - CAD ($) | 12 Months Ended | ||||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Mar. 25, 2021 | Apr. 30, 2020 | |
IfrsStatementLineItems [Line Items] | |||||
Goodwill | $ 5,940,409 | $ 2,166,563 | |||
Impairment of goodwill | $ 4,579,763 | ||||
Assumption discount rates | 10.00% | ||||
Dronelogics [Member] | |||||
IfrsStatementLineItems [Line Items] | |||||
[custom:PercentageOfWeightedAverageRevenueGrowthRateEarningsBeforeInterestTaxesDepreciationAndAmortization-0] | 14.00% | ||||
Percentage of weighted average cost of capital | 17.00% | ||||
Reduction in value | $ 597,100 | ||||
Vital [Member] | |||||
IfrsStatementLineItems [Line Items] | |||||
[custom:PercentageOfWeightedAverageRevenueGrowthRateEarningsBeforeInterestTaxesDepreciationAndAmortization-0] | 42.00% | ||||
Percentage of weighted average cost of capital | 24.00% | ||||
Reduction in value | $ 570,133 | ||||
Vital and Dronelogics [Member] | |||||
IfrsStatementLineItems [Line Items] | |||||
Percentage of cash flow projection | 2.00% | ||||
Customer-related intangible assets [member] | Dronelogics [Member] | |||||
IfrsStatementLineItems [Line Items] | |||||
Percentage of acquired | 100.00% | ||||
Customer relationships | $ 197,000 | ||||
Brand [Member] | |||||
IfrsStatementLineItems [Line Items] | |||||
Impairment of goodwill | |||||
Brand [Member] | Dronelogics [Member] | |||||
IfrsStatementLineItems [Line Items] | |||||
Percentage of acquired | 100.00% | ||||
Customer relationships | $ 119,000 | ||||
Brand [Member] | Vital [Member] | |||||
IfrsStatementLineItems [Line Items] | |||||
Customer relationships | $ 23,000 | ||||
Computer software [member] | Vital [Member] | |||||
IfrsStatementLineItems [Line Items] | |||||
Customer relationships | 433,000 | ||||
Goodwill [member] | |||||
IfrsStatementLineItems [Line Items] | |||||
Impairment of goodwill | $ 4,579,763 | ||||
Goodwill [member] | Dronelogics [Member] | |||||
IfrsStatementLineItems [Line Items] | |||||
Percentage of acquired | 100.00% | ||||
Goodwill | $ 8,353,609 | $ 2,166,563 |
SCHEDULE OF RIGHT OF USE ASSETS
SCHEDULE OF RIGHT OF USE ASSETS (Details) - CAD ($) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Right Of Use Assets | ||
Right of use assets, at cost, beginning | $ 242,967 | $ 159,539 |
Leases acquired in the Acquisition | 83,428 | |
Additions | 447,242 | |
Lease removal | (7,092) | |
Right of use assets, at cost, ending | 683,117 | 242,967 |
Accumulated amortization, Beginning | 98,548 | 29,545 |
Charge for the year | 109,311 | 69,003 |
Historical correction | 7,152 | |
Accumulated amortization, ending | 215,011 | 98,548 |
Right of use assets | $ 468,106 | $ 144,419 |
SCHEDULE OF OPERATING LEASE LIA
SCHEDULE OF OPERATING LEASE LIABILITIES (Details) - CAD ($) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Lease Liability | ||
Balance - Beginning of period | $ 158,124 | $ 136,073 |
Leases acquired in the Acquisition | 87,203 | |
Interest expense | 26,964 | 18,290 |
Lease Payments | (128,995) | (83,442) |
Additions | 440,675 | |
Lease removal | (7,645) | |
Balance - End of period | 489,123 | 158,124 |
Current lease liabilities | 110,481 | 93,239 |
Non-current lease liabilities | 378,642 | 64,885 |
Lease liabilities | $ 489,123 | $ 158,124 |
SCHEDULE OF OPERATING MATURITY
SCHEDULE OF OPERATING MATURITY ANALYSIS (Details) - CAD ($) | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
IfrsStatementLineItems [Line Items] | |||
Maturity analysis | $ 590,544 | ||
Amount representing implicit interest | (101,421) | ||
Lease liability | 489,123 | $ 158,124 | $ 136,073 |
Not later than one year [member] | |||
IfrsStatementLineItems [Line Items] | |||
Maturity analysis | 150,276 | ||
Later than one year and not later than three years [member] | |||
IfrsStatementLineItems [Line Items] | |||
Maturity analysis | 251,765 | ||
Later than four years and not later than five years [member] | |||
IfrsStatementLineItems [Line Items] | |||
Maturity analysis | 183,473 | ||
Later than five years [member] | |||
IfrsStatementLineItems [Line Items] | |||
Maturity analysis | $ 5,030 |
LEASE LIABILITY (Details Narrat
LEASE LIABILITY (Details Narrative) | 12 Months Ended |
Dec. 31, 2021 | |
Lease Liability | |
Depreciation Lease Liability | The Company leases certain assets under lease agreements. The lease liabilities consist of leases of facilities and vehicles with terms ranging from one to five years. The leases are calculated using incremental borrowing rates ranging from 7.5% to 10.5% |
SCHEDULE OF TRADE PAYABLES AND
SCHEDULE OF TRADE PAYABLES AND ACCRUED LIABILITIES (Details) - CAD ($) | Dec. 31, 2021 | Dec. 31, 2020 |
Trade Payables And Accrued Liabilities | ||
Trade accounts payable | $ 362,890 | $ 813,881 |
Accrued liabilities | 402,540 | 512,205 |
Due to related parties (Note 23) | 475,628 | |
Government grant payable | 33,709 | 33,709 |
GST/PST Payable | 21,754 | |
Trade payables and accrued liabilities | $ 799,139 | $ 1,857,177 |
SCHEDULE OF CUSTOMER DEPOSITS (
SCHEDULE OF CUSTOMER DEPOSITS (Details) - CAD ($) | Dec. 31, 2021 | Dec. 31, 2020 |
Customer Deposits | ||
Customer deposits | $ 172,134 | $ 385,449 |
SCHEDULE OF DEFERRED INCOME (De
SCHEDULE OF DEFERRED INCOME (Details) - CAD ($) | Dec. 31, 2021 | Dec. 31, 2020 |
IfrsStatementLineItems [Line Items] | ||
Deferred Income | $ 73,286 | $ 5,062 |
Customers [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Deferred Income | 80,000 | |
Government [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Deferred Income | 5,233 | 5,062 |
Note Receivable Accretion [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Deferred Income | $ (11,947) |
SCHEDULE OF LOANS PAYABLE (Deta
SCHEDULE OF LOANS PAYABLE (Details) - CAD ($) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Loans Payable | ||
Opening balance | $ 97,916 | |
Acquisition of loans | 120,851 | |
Issuance of loans payable | 60,000 | 60,000 |
Fair value adjustment | (24,576) | (26,152) |
Repayment of loans payable | (44,428) | (57,873) |
Accretion expense | 4,405 | 1,090 |
Ending balance | $ 93,317 | $ 97,916 |
SCHEDULE OF LOANS (Details)
SCHEDULE OF LOANS (Details) - CAD ($) | May 19, 2020 | Dec. 31, 2021 | Apr. 23, 2021 | Dec. 31, 2020 |
IfrsStatementLineItems [Line Items] | ||||
Rate | 25.00% | |||
Total Carrying Value | $ 93,317 | $ 97,916 | ||
CEBA [Member] | ||||
IfrsStatementLineItems [Line Items] | ||||
Start Date | May 19, 2020 | |||
Maturity Date | three-year term | Dec. 31, 2022 | ||
Rate | 5.00% | 0.00% | 5.00% | |
Total Carrying Value | $ 37,384 | 34,938 | ||
CEBA [Member] | ||||
IfrsStatementLineItems [Line Items] | ||||
Start Date | Apr. 23, 2021 | |||
Maturity Date | Dec. 31, 2022 | |||
Rate | 0.00% | |||
Total Carrying Value | $ 37,383 | |||
Vehicle Loan [Member] | ||||
IfrsStatementLineItems [Line Items] | ||||
Start Date | Aug. 30, 2019 | |||
Maturity Date | Sep. 11, 2024 | |||
Rate | 6.99% | |||
Total Carrying Value | $ 18,550 | 25,295 | ||
Shopify Loan [Member] | ||||
IfrsStatementLineItems [Line Items] | ||||
Start Date | Aug. 5, 2020 | |||
Rate | 7.00% | |||
Total Carrying Value | $ 37,683 |
LOANS PAYABLE (Details Narrativ
LOANS PAYABLE (Details Narrative) - CAD ($) | Apr. 23, 2021 | Dec. 04, 2020 | May 19, 2020 | Dec. 31, 2021 |
IfrsStatementLineItems [Line Items] | ||||
Interest rate | 25.00% | |||
CEBA [Member] | ||||
IfrsStatementLineItems [Line Items] | ||||
Loan received | $ 40,000 | |||
Interest rate | 5.00% | 5.00% | 0.00% | |
Loans forgivable amount | $ 20,000 | $ 10,000 | ||
Maturity | three-year term | Dec. 31, 2022 | ||
Proceeds from loan | $ 20,000 | |||
Loan forgiveness | $ 10,000 | |||
Unsecured loan received | $ 60,000 |
SCHEDULE OF STOCK OPTIONS OUTST
SCHEDULE OF STOCK OPTIONS OUTSTANDING AND EXERCISABLE (Details) | 12 Months Ended | ||
Dec. 31, 2021shares$ / shares | Dec. 31, 2020shares | Dec. 31, 2019shares | |
IfrsStatementLineItems [Line Items] | |||
Remaining Contractual Life (years) | 1 year 2 months 12 days | 1 year 25 days | |
Number of Options | 1,035,991 | 1,193,659 | 744,993 |
Exercisable | 710,497 | ||
Exercise Price One [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Grant date | Oct. 30, 2019 | ||
Expiry date | Oct. 30, 2029 | ||
Exercise Price | $ / shares | $ 2.50 | ||
Remaining Contractual Life (years) | 7 years 10 months 2 days | ||
Number of Options | 296,665 | ||
Exercisable | 296,665 | ||
Exercise Price Two [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Grant date | Nov. 19, 2019 | ||
Expiry date | Nov. 19, 2029 | ||
Exercise Price | $ / shares | $ 2.50 | ||
Remaining Contractual Life (years) | 7 years 10 months 20 days | ||
Number of Options | 50,000 | ||
Exercisable | 50,000 | ||
Exercise Price Three [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Grant date | Apr. 30, 2020 | ||
Expiry date | Apr. 30, 2030 | ||
Exercise Price | $ / shares | $ 2.50 | ||
Remaining Contractual Life (years) | 8 years 3 months 29 days | ||
Number of Options | 87,000 | ||
Exercisable | 78,666 | ||
Exercise Price Four [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Grant date | Apr. 30, 2020 | ||
Expiry date | Apr. 30, 2030 | ||
Exercise Price | $ / shares | $ 3.85 | ||
Remaining Contractual Life (years) | 8 years 3 months 29 days | ||
Number of Options | 110,000 | ||
Exercisable | 70,000 | ||
Exercise Price Five [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Grant date | Jul. 3, 2020 | ||
Expiry date | Jul. 3, 2025 | ||
Exercise Price | $ / shares | $ 3.20 | ||
Remaining Contractual Life (years) | 3 years 6 months 3 days | ||
Number of Options | 200,000 | ||
Exercisable | 166,666 | ||
Exercise Price Six [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Grant date | Nov. 24, 2020 | ||
Expiry date | Nov. 24, 2030 | ||
Exercise Price | $ / shares | $ 2.50 | ||
Remaining Contractual Life (years) | 8 years 10 months 24 days | ||
Number of Options | 32,000 | ||
Exercisable | 21,000 | ||
Exercise Price Seven [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Grant date | Dec. 11, 2020 | ||
Expiry date | Dec. 11, 2030 | ||
Exercise Price | $ / shares | $ 2.15 | ||
Remaining Contractual Life (years) | 8 years 11 months 12 days | ||
Number of Options | 12,500 | ||
Exercisable | 12,500 | ||
Exercise Price Eight [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Grant date | Feb. 2, 2021 | ||
Expiry date | Feb. 2, 2031 | ||
Exercise Price | $ / shares | $ 13.20 | ||
Remaining Contractual Life (years) | 9 years 1 month 2 days | ||
Number of Options | 30,000 | ||
Exercisable | 10,000 | ||
Exercise Price Nine [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Grant date | Mar. 8, 2021 | ||
Expiry date | Mar. 8, 2026 | ||
Exercise Price | $ / shares | $ 13.90 | ||
Remaining Contractual Life (years) | 4 years 2 months 8 days | ||
Number of Options | 10,000 | ||
Exercisable | 5,000 | ||
Exercise Price Ten [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Grant date | Apr. 27, 2021 | ||
Expiry date | Apr. 27, 2031 | ||
Exercise Price | $ / shares | $ 10.15 | ||
Remaining Contractual Life (years) | 9 years 2 months 23 days | ||
Number of Options | 182,000 | ||
Exercisable | |||
Exercise Price Eleven [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Grant date | Sep. 9, 2021 | ||
Expiry date | Sep. 9, 2026 | ||
Exercise Price | $ / shares | $ 4.84 | ||
Remaining Contractual Life (years) | 4 years 8 months 8 days | ||
Number of Options | 25,826 | ||
Exercisable |
SUMMARY OF CHANGES IN STOCK OPT
SUMMARY OF CHANGES IN STOCK OPTIONS (Details) | 12 Months Ended | |
Dec. 31, 2021shares$ / shares | Dec. 31, 2020shares$ / shares | |
Share Capital | ||
Number of options outstanding, Beginning Balance | shares | 1,193,659 | 744,993 |
Weighted average exercise price, Beginning Balance | $ / shares | $ 2.75 | $ 2.50 |
Number of options outstanding, forfeited | shares | (43,334) | |
Weighted average exercise price, forfeited | $ / shares | $ 2.50 | |
Number of options outstanding, Granted | shares | 247,826 | 492,000 |
Weighted average exercise price, Granted | $ / shares | $ 10.12 | $ 3.08 |
Number of options outstanding, Exercised | shares | (405,494) | |
Weighted average exercise price, Exercised | $ / shares | $ 2.50 | |
Number of options outstanding, Ending Balance | shares | 1,035,991 | 1,193,659 |
Weighted average exercise price, Ending Balance | $ / shares | $ 4.60 | $ 2.75 |
SCHEDULE OF WEIGHTED AVERAGE _2
SCHEDULE OF WEIGHTED AVERAGE ASSUMPTIONS (Details) - $ / shares | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
IfrsStatementLineItems [Line Items] | |||
Expected volatility | 100.00% | ||
Expected life | 5 years | 7 years 6 months | |
Expected dividend yield | 0.00% | 0.00% | 0.00% |
Exercise price | $ 2.50 | ||
Bottom of range [member] | |||
IfrsStatementLineItems [Line Items] | |||
Risk free interest rate | 0.69% | 0.43% | 1.45% |
Expected volatility | 62.84% | 113.53% | |
Expected life | 5 years | ||
Exercise price | $ 4.84 | $ 2.15 | |
Top of range [member] | |||
IfrsStatementLineItems [Line Items] | |||
Risk free interest rate | 1.40% | 0.66% | 146.00% |
Expected volatility | 113.16% | 119.03% | |
Expected life | 10 years | ||
Exercise price | $ 13.90 | $ 3.85 |
SUMMARY OF CHANGES IN RESTRICTE
SUMMARY OF CHANGES IN RESTRICTED STOCK UNITS (Details) - shares | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
IfrsStatementLineItems [Line Items] | ||
Number of RSUs outstanding, Beginning of the period | 511,299 | |
Number of RSUs outstanding, Ending of the period | 7,214,819 | 511,299 |
Restricted Stock Units Rsu [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Number of RSUs outstanding, Beginning of the period | 614,666 | 634,997 |
Exercised | (448,660) | (199,998) |
Forfeited | (68,333) | |
Issued | 348,826 | 248,000 |
Number of RSUs outstanding, Ending of the period | 514,832 | 614,666 |
SCHEDULE OF WARRANT DERIVATIVE
SCHEDULE OF WARRANT DERIVATIVE LIABILITY (Details) | 12 Months Ended | ||
Dec. 31, 2021USD ($) | Dec. 31, 2021CAD ($) | Dec. 31, 2020USD ($) | |
IfrsStatementLineItems [Line Items] | |||
Contingent consideration at December 31, 2021 | $ 694,230 | ||
Warrants [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Beginning of the period | $ 748,634 | ||
Warrants issuance | 8,261,511 | 281,732 | |
Change in fair value of warrants outstanding | (4,046,325) | 466,902 | |
Shares issued for exercise of broker warrants of derivatives | (98,048) | ||
End of the period | 4,865,772 | $ 748,634 | |
Warrants | 4,865,772 | ||
Contingent consideration | 694,230 | ||
Contingent consideration at December 31, 2021 | $ 5,560,002 |
SCHEDULE OF WARRANTS AND FAIR V
SCHEDULE OF WARRANTS AND FAIR VALUE OUTSTANDING (Details) | 12 Months Ended | |
Dec. 31, 2021USD ($)shares$ / shares | Dec. 31, 2020USD ($)shares | |
IfrsStatementLineItems [Line Items] | ||
Number of Warrants Outstanding | shares | 7,214,819 | 511,299 |
Fair Value of warrants | $ | $ 4,865,772 | $ 748,634 |
Range 1 [member] | ||
IfrsStatementLineItems [Line Items] | ||
Issue Date | Nov. 30, 2020 | |
Exercise price | $ / shares | $ 3.55 | |
Number of Warrants Outstanding | shares | 482,425 | 511,299 |
Fair Value of warrants | $ | $ 182,262 | $ 748,634 |
Range 2 [member] | ||
IfrsStatementLineItems [Line Items] | ||
Issue Date | Feb. 5, 2021 | |
Exercise price | $ / shares | $ 3.55 | |
Number of Warrants Outstanding | shares | 1,323,275 | |
Fair Value of warrants | $ | $ 951,226 | |
Range 3 [member] | ||
IfrsStatementLineItems [Line Items] | ||
Issue Date | Mar. 5, 2021 | |
Exercise price | $ / shares | $ 3.55 | |
Number of Warrants Outstanding | shares | 5,154,321 | |
Fair Value of warrants | $ | $ 3,731,285 | |
Range 4 [member] | ||
IfrsStatementLineItems [Line Items] | ||
Issue Date | Jul. 29, 2021 | |
Exercise price | $ / shares | $ 5 | |
Number of Warrants Outstanding | shares | 250,000 | |
Fair Value of warrants | $ | $ 84,625 | |
Range 5 [member] | ||
IfrsStatementLineItems [Line Items] | ||
Issue Date | Sep. 14, 2021 | |
Exercise price | $ / shares | $ 5 | |
Number of Warrants Outstanding | shares | 4,798 | |
Fair Value of warrants | $ | $ 1,685 |
SCHEDULE OF WEIGHTED AVERAGE _3
SCHEDULE OF WEIGHTED AVERAGE ASSUMPTION FOR WARRANTS (Details) | Mar. 10, 2021 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
IfrsStatementLineItems [Line Items] | ||||
Expected volatility | 100.00% | |||
Expected life | 5 years | 7 years 6 months | ||
Expected dividend yield | 0.00% | 0.00% | 0.00% | |
Bottom of range [member] | ||||
IfrsStatementLineItems [Line Items] | ||||
Risk free interest rate | 0.69% | 0.43% | 1.45% | |
Expected volatility | 62.84% | 113.53% | ||
Expected life | 5 years | |||
Top of range [member] | ||||
IfrsStatementLineItems [Line Items] | ||||
Risk free interest rate | 1.40% | 0.66% | 146.00% | |
Expected volatility | 113.16% | 119.03% | ||
Expected life | 10 years | |||
Warrants [Member] | ||||
IfrsStatementLineItems [Line Items] | ||||
Risk free interest rate | 0.28% | 0.91% | ||
Expected volatility | 150.88% | 124.09% | ||
Expected life | 2 years | 2 years | 2 years | |
Expected dividend yield | 0.00% | 0.00% | 0.00% | |
Warrants [Member] | Bottom of range [member] | ||||
IfrsStatementLineItems [Line Items] | ||||
Risk free interest rate | 0.23% | 0.20% | ||
Expected volatility | 70.95% | 72.76% | ||
Expected life | 2 years | |||
Warrants [Member] | Top of range [member] | ||||
IfrsStatementLineItems [Line Items] | ||||
Risk free interest rate | 0.95% | 0.24% | ||
Expected volatility | 144.59% | 74.10% | ||
Expected life | 3 years |
SUMMARY OF CHANGES IN WARRANTS
SUMMARY OF CHANGES IN WARRANTS (Details) | 12 Months Ended | |
Dec. 31, 2021shares$ / shares | Dec. 31, 2020shares$ / shares | |
IfrsStatementLineItems [Line Items] | ||
Number of RSUs outstanding, Beginning of the period | shares | 511,299 | |
Weighted Average Exercise Price, Oustanding, Beginning Balance | $ 2.50 | |
Number of RSUs outstanding, Ending of the period | shares | 7,214,819 | 511,299 |
Warrants [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Number of RSUs outstanding, Beginning of the period | 2,416,864 | 3,610,340 |
Weighted Average Exercise Price, Oustanding, Beginning Balance | $ 2.95 | $ 2.05 |
Exercised | (1,939,534) | (1,584,775) |
Weighted Average Exercise Price, Exercised | $ 2.54 | $ 1.50 |
Forfeited | (6,000) | (120,000) |
Weighted Average Exercise Price, Forfeited | $ 2.50 | $ 2.50 |
Granted | 7,943,489 | 511,299 |
Weighted Average Exercise Price, Granted | $ 5.10 | $ 3.55 |
Number of RSUs outstanding, Ending of the period | 8,414,819 | 2,416,864 |
Weighted Average Exercise Price, Oustanding, Ending Balance | $ 4.99 | $ 2.95 |
SCHEDULE OF WARRANTS OUTSTANDIN
SCHEDULE OF WARRANTS OUTSTANDING (Details) | 12 Months Ended |
Dec. 31, 2021$ / sharesshares | |
Warrant One [Member] | |
IfrsStatementLineItems [Line Items] | |
Date issued | Nov. 30, 2020 |
Expiry Date | Nov. 30, 2022 |
Exercise price | $ / shares | $ 3.55 |
Number of warrants outstanding | 482,425 |
Warrant Two [Member] | |
IfrsStatementLineItems [Line Items] | |
Date issued | Feb. 5, 2021 |
Expiry Date | Feb. 5, 2023 |
Exercise price | $ / shares | $ 3.55 |
Number of warrants outstanding | 1,323,275 |
Warrant Three [Member] | |
IfrsStatementLineItems [Line Items] | |
Date issued | Mar. 5, 2021 |
Expiry Date | Mar. 5, 2023 |
Exercise price | $ / shares | $ 3.55 |
Number of warrants outstanding | 5,154,321 |
Warrant Four [Member] | |
IfrsStatementLineItems [Line Items] | |
Date issued | Mar. 22, 2021 |
Expiry Date | Mar. 22, 2023 |
Exercise price | $ / shares | $ 13.35 |
Number of warrants outstanding | 1,200,000 |
Warrant Five [Member] | |
IfrsStatementLineItems [Line Items] | |
Date issued | Jul. 29, 2021 |
Expiry Date | Jul. 29, 2024 |
Exercise price | $ / shares | $ 5 |
Number of warrants outstanding | 250,000 |
Warrant Six [Member] | |
IfrsStatementLineItems [Line Items] | |
Date issued | Sep. 14, 2021 |
Expiry Date | Sep. 14, 2024 |
Exercise price | $ / shares | $ 5 |
Number of warrants outstanding | 4,798 |
Warrants [Member] | |
IfrsStatementLineItems [Line Items] | |
Number of warrants outstanding | 8,414,819 |
SHARE CAPITAL (Details Narrativ
SHARE CAPITAL (Details Narrative) - CAD ($) | Mar. 22, 2021 | Feb. 04, 2021 | Aug. 15, 2019 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
IfrsStatementLineItems [Line Items] | ||||||
Value of stock issued for exercise of warrants | $ 4,929,790 | |||||
Number of stock units issued for regulation financing | 6,488,691 | 511,299 | ||||
Stock units issued during period value regulation financing | $ 18,815,485 | $ 1,518,845 | ||||
Share capital issuance, description | Each unit is comprised of one common share and one share purchase warrant. These warrants had a fair value of $0.57 USD allocated to them, have an exercise price of $3.55 USD per warrant, each convert to one common share, and have a life of two years. | Each unit is comprised of one common share and one share purchase warrant. These warrants have an exercise price of $3.55 USD per warrant, each convert to one common share, and have a life of two years, expiring on November 30, 2022. | ||||
Warrant derivative liability | $ 8,261,511 | |||||
Number of stock issued for private placement | 5,095,966 | 2,810,300 | ||||
Value of stock issued for private placement | $ 25,538,213 | |||||
Number of stock issued for cash proceeds | 192,308 | |||||
Value of stock issued for cash proceeds | $ 500,000 | |||||
Number of stock issued for debt settlement | 111,082 | |||||
Recongnized loss | $ 344,354 | |||||
Comprehensive loss | 38,879 | |||||
Proceeds from issuance of notes payable | 123,000 | $ 1,137,978 | ||||
Subscription receivable | 153,566 | |||||
Amounts payable, related party transactions | 475,628 | $ 9,681 | ||||
Shares issued of settlement trades payable, shares | 9,065 | |||||
[custom:SharesIssuedOfSettlementTradesPayable] | $ 22,662 | |||||
Trades payable per share | $ 2.50 | |||||
Shares issued of settlement convertible debentures and accrued interest, shares | 423,698 | |||||
Shares issued of settlement convertible debentures | $ 740,000 | |||||
Gain loss on settlement of debt | $ 319,246 | |||||
Purchases of exercise of warrants, shares | 63,388 | |||||
Purchases of exercise of warrants | $ 8,833 | |||||
Capital reserve | $ 6,406,117 | $ 3,024,007 | 212,908 | |||
Number of options outstanding, Granted | 247,826 | 492,000 | ||||
Weighted average exercise price, Granted | $ 10.12 | $ 3.08 | ||||
Adjustments for share-based payments | $ 3,952,595 | $ 2,668,464 | 761,559 | |||
Weighted average remaining contractual life of outstanding share options | 1 year 2 months 12 days | 1 year 25 days | ||||
Warrants issued | 1,200,000 | |||||
Warrants held in escrow | 900,000 | |||||
Warrants [Member] | ||||||
IfrsStatementLineItems [Line Items] | ||||||
Warrants Expiration Date Description | During the year ended December 31, 2020, the Company amended the expiry date of the November 5, 2019 warrants from November 5, 2020 to November 5, 2021 provided that 25% of the warrants were exercised by October 21, 2020 and 25% were exercised by May 5, 2021. | |||||
Stock Options [Member] | ||||||
IfrsStatementLineItems [Line Items] | ||||||
Adjustments for share-based payments | $ 1,660,894 | $ 1,724,853 | 599,701 | |||
Restricted Stock Units [Member] | ||||||
IfrsStatementLineItems [Line Items] | ||||||
Number of accelerated vesting shares | 323,661 | |||||
Number of shares vested | 124,999 | |||||
Number of shares granted post consolidation | 348,826 | |||||
Share based payment expense | $ 2,291,701 | $ 943,611 | $ 161,858 | |||
Employee [Member] | ||||||
IfrsStatementLineItems [Line Items] | ||||||
Number of options outstanding, Granted | 30,000 | 89,000 | ||||
Weighted average exercise price, Granted | $ 13.20 | $ 2.50 | ||||
Stock option exercisable year | 10 years | 10 years | ||||
Consultant [Member] | ||||||
IfrsStatementLineItems [Line Items] | ||||||
Number of options outstanding, Granted | 10,000 | 120,000 | ||||
Weighted average exercise price, Granted | $ 13.90 | $ 3.85 | ||||
Stock option exercisable year | 5 years | 10 years | ||||
Employees and Consultant [Member] | ||||||
IfrsStatementLineItems [Line Items] | ||||||
Number of options outstanding, Granted | 182,000 | |||||
Weighted average exercise price, Granted | $ 10.15 | |||||
Stock option exercisable year | 10 years | |||||
Employee One [Member] | ||||||
IfrsStatementLineItems [Line Items] | ||||||
Number of options outstanding, Granted | 25,826 | 200,000 | ||||
Weighted average exercise price, Granted | $ 4.84 | $ 3.20 | ||||
Stock option exercisable year | 5 years | 5 years | ||||
Employee Two [Member] | ||||||
IfrsStatementLineItems [Line Items] | ||||||
Number of options outstanding, Granted | 33,000 | |||||
Weighted average exercise price, Granted | $ 2.50 | |||||
Stock option exercisable year | 10 years | |||||
Consultant One [Member] | ||||||
IfrsStatementLineItems [Line Items] | ||||||
Number of options outstanding, Granted | 50,000 | |||||
Weighted average exercise price, Granted | $ 2.15 | |||||
Stock option exercisable year | 10 years | |||||
Employee and Consultant [Member] | Restricted Stock Units [Member] | ||||||
IfrsStatementLineItems [Line Items] | ||||||
Number of options outstanding, Granted | 248,000 | |||||
Draganfly Innovations Shares [Member] | ||||||
IfrsStatementLineItems [Line Items] | ||||||
Stock issued during period value units, shares | 8,527,671 | 8,517,671 | ||||
Purchases of exercise of warrants | $ 1,645,193 | |||||
Vital Intelligence Inc [Member] | ||||||
IfrsStatementLineItems [Line Items] | ||||||
Share capital issuance, description | Each unit is comprised of one common share and one warrant. These warrants have an exercise price of $13.35 per warrant, each convert to one common share, and have a life of two years. | Each unit consists of one common share and one warrant. These warrants have an exercise price of $2.50 per warrant, each convert to one common share, and have a life of one year, expiring on October 25, 2020 | ||||
Number of stock units issued for acquisition | 1,200,000 | |||||
Dronelogics Inc [Member] | ||||||
IfrsStatementLineItems [Line Items] | ||||||
Number of stock units issued for acquisition | 645,088 | |||||
Stock units issued during period shares common shares finder fees | 40,000 | |||||
Common Stock 1 [Member] | ||||||
IfrsStatementLineItems [Line Items] | ||||||
Number of stock issued for exercise of warrants | 1,580,525 | 24,000 | ||||
Value of stock issued for exercise of warrants | $ 3,951,312 | $ 60,000 | ||||
Number of stock issued for restrcited share units | 149,999 | 7,117 | ||||
Number of stock issued for exercise of options | 392,999 | |||||
Value of stock issued for exercise of options | $ 987,248 | |||||
Number of shares issued | 15,000 | 143,985 | ||||
Proceeds from issuance of notes payable | $ 799,341 | |||||
Subscription receivable | $ 153,566 | |||||
Shares issued as transactions fees, shares | 222,965 | |||||
Amounts payable, related party transactions | $ 1,000,000 | |||||
Common Stock 2 [Member] | ||||||
IfrsStatementLineItems [Line Items] | ||||||
Number of stock issued for exercise of warrants | 359,009 | 20,000 | ||||
Value of stock issued for exercise of warrants | $ 978,478 | $ 50,000 | ||||
Number of stock issued for restrcited share units | 298,661 | 2,040 | ||||
Number of stock issued for exercise of options | 12,500 | |||||
Value of stock issued for exercise of options | $ 26,875 | |||||
Number of shares issued | 356,901 | |||||
Common Stock 3 [Member] | ||||||
IfrsStatementLineItems [Line Items] | ||||||
Number of stock issued for exercise of warrants | 210,320 | |||||
Value of stock issued for exercise of warrants | $ 105,160 | |||||
Number of stock issued for restrcited share units | 2,647 | |||||
Common Stock 4 [Member] | ||||||
IfrsStatementLineItems [Line Items] | ||||||
Number of stock issued for exercise of warrants | 73,000 | |||||
Value of stock issued for exercise of warrants | $ 36,500 | |||||
Number of stock issued for restrcited share units | 188,194 | |||||
Common Stock 5 [Member] | ||||||
IfrsStatementLineItems [Line Items] | ||||||
Number of stock issued for exercise of warrants | 294,840 | |||||
Value of stock issued for exercise of warrants | $ 147,420 | |||||
Common Stock 6 [Member] | ||||||
IfrsStatementLineItems [Line Items] | ||||||
Number of stock issued for exercise of warrants | 121,840 | |||||
Value of stock issued for exercise of warrants | $ 60,920 | |||||
Common Stock 7 [Member] | ||||||
IfrsStatementLineItems [Line Items] | ||||||
Number of stock issued for exercise of warrants | 126,000 | |||||
Value of stock issued for exercise of warrants | $ 115,000 | |||||
Common Stock 8 [Member] | ||||||
IfrsStatementLineItems [Line Items] | ||||||
Number of stock issued for exercise of warrants | 12,000 | |||||
Value of stock issued for exercise of warrants | $ 30,000 | |||||
Common Stock 9 [Member] | ||||||
IfrsStatementLineItems [Line Items] | ||||||
Number of stock issued for exercise of warrants | 45,600 | |||||
Value of stock issued for exercise of warrants | $ 114,000 | |||||
Common Stock 10 [Member] | ||||||
IfrsStatementLineItems [Line Items] | ||||||
Number of stock issued for exercise of warrants | 2,000 | |||||
Value of stock issued for exercise of warrants | $ 5,000 | |||||
Common Stock 11 [Member] | ||||||
IfrsStatementLineItems [Line Items] | ||||||
Number of stock issued for exercise of warrants | 2,200 | |||||
Value of stock issued for exercise of warrants | $ 5,500 | |||||
Common Stock 12 [Member] | ||||||
IfrsStatementLineItems [Line Items] | ||||||
Number of stock issued for exercise of warrants | 637,975 | |||||
Value of stock issued for exercise of warrants | $ 1,594,938 | |||||
Common Stock 13 [Member] | ||||||
IfrsStatementLineItems [Line Items] | ||||||
Number of stock issued for exercise of warrants | 15,000 | |||||
Value of stock issued for exercise of warrants | $ 37,500 |
SCHEDULE OF PRODUCT AND SERVICE
SCHEDULE OF PRODUCT AND SERVICE REVENUE (Details) - CAD ($) | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
IfrsStatementLineItems [Line Items] | |||
Revenue | $ 7,053,865 | $ 4,363,511 | $ 1,380,427 |
Product Sales [member] | |||
IfrsStatementLineItems [Line Items] | |||
Revenue | 5,103,399 | 3,087,223 | 248,939 |
Drone Service [member] | |||
IfrsStatementLineItems [Line Items] | |||
Revenue | 1,304,799 | 630,532 | |
Services [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Revenue | $ 645,667 | $ 645,756 | $ 1,131,488 |
SCHEDULE OF GEOGRAPHIC REVENUE
SCHEDULE OF GEOGRAPHIC REVENUE (Details) - CAD ($) | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Reserve Quantities [Line Items] | |||
Revenue | $ 7,053,865 | $ 4,363,511 | $ 1,380,427 |
CA Country [member] | |||
Reserve Quantities [Line Items] | |||
Revenue | 4,937,935 | 2,270,862 | 127,118 |
US Country [member] | |||
Reserve Quantities [Line Items] | |||
Revenue | 2,071,492 | 1,982,404 | 1,251,199 |
International [member] | |||
Reserve Quantities [Line Items] | |||
Revenue | $ 44,438 | $ 110,245 | $ 2,110 |
SCHEDULE OF OPERATING SEGMENTS
SCHEDULE OF OPERATING SEGMENTS (Details) - CAD ($) | Dec. 31, 2021 | Dec. 31, 2020 |
IfrsStatementLineItems [Line Items] | ||
Goodwill | $ 5,940,409 | $ 2,166,563 |
Property and equipment | 297,043 | 153,870 |
Intangible assets | 593,901 | 273,867 |
Investments | 291,066 | |
Notes receivable | 964,006 | |
Right of use assets | 468,106 | 144,419 |
TOTAL ASSETS | 42,113,240 | $ 7,100,567 |
Canada [member] | ||
IfrsStatementLineItems [Line Items] | ||
Goodwill | 2,166,564 | |
Property and equipment | 297,043 | |
Intangible assets | 219,093 | |
Investments | 291,066 | |
Notes receivable | ||
Right of use assets | 468,106 | |
TOTAL ASSETS | 3,441,872 | |
United States [member] | ||
IfrsStatementLineItems [Line Items] | ||
Goodwill | 3,773,845 | |
Property and equipment | ||
Intangible assets | 374,808 | |
Investments | ||
Notes receivable | 964,006 | |
Right of use assets | ||
TOTAL ASSETS | 5,112,659 | |
International [member] | ||
IfrsStatementLineItems [Line Items] | ||
Goodwill | ||
Property and equipment | ||
Intangible assets | ||
Investments | ||
Notes receivable | ||
Right of use assets | ||
TOTAL ASSETS |
REVENUE (Details Narrative)
REVENUE (Details Narrative) | 12 Months Ended |
Dec. 31, 2020CAD ($) | |
Custom Engineering Services [member] | |
IfrsStatementLineItems [Line Items] | |
Service Revenue | $ 474,701 |
SCHEDULE OF OFFICE AND MISCELLA
SCHEDULE OF OFFICE AND MISCELLANEOUS EXPENSES (Details) - CAD ($) | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Office And Miscellaneous | |||
Advertising, Marketing, and Investor Relations | $ 5,165,791 | $ 2,610,930 | $ 1,356,174 |
Compliance fees | 432,874 | 122,916 | 80,525 |
Contract Work | 300,975 | 399,546 | 438,601 |
Other | 556,358 | 254,473 | 228,432 |
Office and Miscellaneous Expenses | $ 6,455,998 | $ 3,387,865 | $ 2,103,732 |
SCHEDULE OF KEY MANAGEMENT TRAN
SCHEDULE OF KEY MANAGEMENT TRANSACTIONS (Details) - CAD ($) | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
IfrsStatementLineItems [Line Items] | |||
Director fees | $ 370,094 | ||
Management fees paid to a company | 4,445,949 | 1,762,594 | 524,101 |
Salaries | 722,068 | 655,799 | 179,429 |
Share-based payments | 2,475,949 | 1,614,158 | 480,158 |
Total | 4,564,102 | 3,485,742 | 1,189,647 |
CEO and Director [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Management fees paid to a company | 290,225 | 737,164 | 186,000 |
President and Director [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Management fees paid to a company | 205,691 | 227,524 | |
Former Director [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Management fees paid to a company | 500,074 | 165,000 | 195,000 |
Former Owner [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Salaries | $ 86,097 | $ 149,060 |
RELATED PARTY TRANSACTIONS (Det
RELATED PARTY TRANSACTIONS (Details Narrative) - CAD ($) | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
IfrsStatementLineItems [Line Items] | |||
Professional fees | $ 4,445,949 | $ 1,762,594 | $ 524,101 |
Amounts payable, related party transactions | 475,628 | 9,681 | |
Business Service Agreement [Member] | Business Instincts Group [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Professional fees | 315,643 | 177,000 | 80,000 |
Consultant Agreement [Member] | Alberta Ltd [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Professional fees | 290,225 | 525,164 | 9,000 |
Amounts payable, related party transactions | 321,741 | $ 9,450 | |
Executive Agreement [Member] | Scott Larson [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Professional fees | 205,191 | 227,524 | |
Amounts payable, related party transactions | $ 153,887 |
SCHEDULE OF CHANGES IN FOREIGN
SCHEDULE OF CHANGES IN FOREIGN EXCHANGE RATES (Details) - CAD ($) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Financial Instruments And Financial Risk Management | ||
Foreign exchange rate | $ 150,715 | $ 27,018 |
SCHEDULE OF FINANCIAL ASSETS ME
SCHEDULE OF FINANCIAL ASSETS MEASURED FAIR VALUE THROUGH PROFIT AND LOSS (Details) - CAD ($) | Dec. 31, 2021 | Dec. 31, 2020 |
IfrsStatementLineItems [Line Items] | ||
Equity securities in investee companies | $ 291,066 | |
Notes receivable | 1,154,176 | |
Derivative liability | 5,560,002 | |
Total | 7,005,244 | |
Level 1 of fair value hierarchy [member] | ||
IfrsStatementLineItems [Line Items] | ||
Equity securities in investee companies | 164,286 | |
Notes receivable | ||
Derivative liability | ||
Total | 164,286 | |
Level 2 of fair value hierarchy [member] | ||
IfrsStatementLineItems [Line Items] | ||
Equity securities in investee companies | 126,780 | |
Notes receivable | 1,154,176 | |
Derivative liability | ||
Total | 1,280,956 | |
Level 3 of fair value hierarchy [member] | ||
IfrsStatementLineItems [Line Items] | ||
Equity securities in investee companies | ||
Notes receivable | ||
Derivative liability | 5,560,002 | 748,634 |
Total | $ 5,560,002 | $ 748,634 |
SCHEDULE OF BREAKDOWN CAPITAL (
SCHEDULE OF BREAKDOWN CAPITAL (Details) - CAD ($) | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Financial Instruments And Financial Risk Management | ||||
Cash | $ 23,075,713 | $ 1,982,416 | $ 2,429,375 | $ 101,787 |
Debt | 93,317 | 97,916 | ||
Equity | $ 34,926,239 | $ 3,848,205 |
SCHEDULE OF INCOME TAX (Details
SCHEDULE OF INCOME TAX (Details) - CAD ($) | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Loss before income taxes | $ 16,202,972 | $ 8,015,813 | $ 11,095,507 |
Canadian statutory rates | 27.00% | 27.00% | |
Expected income tax recovery | 4,196,600 | $ 2,164,000 | $ 2,996,000 |
Impact of different foreign statutory tax rates | 34,900 | ||
Non-deductible items | 116,400 | (687,000) | (2,043,000) |
Share issue costs | 887,600 | ||
Adjustments to prior years provision versus statutory tax returns | 376,500 | 189,000 | (388,000) |
Differences between prior year provision and final tax return | (206,000) | (535,000) | (18,000) |
Change in deferred tax asset not recognized | (5,406,000) | (1,131,000) | (547,000) |
Income tax |
SCHEDULE OF DEFERRED TAXES (Det
SCHEDULE OF DEFERRED TAXES (Details) - CAD ($) | Dec. 31, 2021 | Dec. 31, 2020 | Jan. 01, 2019 |
Share issuance costs | $ 728,000 | $ 30,000 | |
Non-capital losses | 7,043,000 | 3,656,000 | 2,439,000 |
Property and equipment | 449,000 | 457,000 | 581,000 |
Capital gain reserve | 74,000 | ||
Scientific Research and Experimental Development | 291,000 | 57,000 | 49,000 |
Total deferred income tax assets | 8,585,000 | 4,200,000 | 3,069,000 |
Deferred income tax not recognized | (8,585,000) | (4,200,000) | (3,069,000) |
Net deferred tax assets |
INCOME TAXES (Details Narrative
INCOME TAXES (Details Narrative) | 12 Months Ended |
Dec. 31, 2021CAD ($) | |
Tax effect of tax losses | $ 25,487,000 |
OTHER INCOME (Details Narrative
OTHER INCOME (Details Narrative) - Apr. 27, 2020 | USD ($) | CAD ($) |
Amount received from sale of investment | $ 854,838 | $ 1,179,513 |
SUPPLEMENTAL CASH FLOW DISCLO_2
SUPPLEMENTAL CASH FLOW DISCLOSURES (Details Narrative) - CAD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2021 | |
IfrsStatementLineItems [Line Items] | |||
Debt settlement, amount | $ 344,354 | ||
Debt settlement, shares issued | 111,082 | ||
Gai on settlement of debt | $ 28,614 | ||
Accounts payable | $ 822,003 | ||
Subscription receivable | 153,566 | ||
Convertible Debentures [member] | |||
IfrsStatementLineItems [Line Items] | |||
Debt settlement, amount | $ 740,000 | ||
Vital Intelligence Inc [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Number of shares issued | 1,200,000 | ||
[custom:WarrantsExercisePrice-0] | $ 13.35 | ||
Common Shares [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Number of shares issued | 400,000 | 15,000 | |
Price per share | $ 2.50 | ||
Common Shares One [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Number of shares issued | 356,901 | ||
Fair value of investments other comprehensive loss | $ 332,640 |
GOVERNMENT ASSISTANCE (Details
GOVERNMENT ASSISTANCE (Details Narrative) - CAD ($) | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
IfrsStatementLineItems [Line Items] | |||
Wages and salaries | $ 2,768,010 | $ 1,649,329 | $ 989,083 |
Canada Emergency Wage Subsidy [member] | |||
IfrsStatementLineItems [Line Items] | |||
Wages and salaries | 250,756 | 490,748 | |
Canada Emergency Rent Subsidy [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Rental expense | 22,668 | ||
Other receivables | |||
Hardest Hit Business Recovery Program [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Wages and salaries | 50,756 | ||
Rental expense | 3,791 | ||
Other receivables | $ 54,548 |