Drone News, page-704

Thank you for your kind words.

I would certainly agree that DRO over sells itself. Though in fairness to DRO, this is pretty standard in the microcap space as companies compete for capital to keep themselves alive until they are profitable (most never become profitable and die off). Though, as a shareholder it is a good idea to be aware of how well words and actions match up. Often it is poorly in this space - which is a huge red flag. DRO doesn't have a great track record on that front but is by far from the worst offender.

With regards to the 4C, I don't know whether the move will be up or down (predicting share price movements is a fools game and one that I try to avoid). My feeling is that the result will be important because we might get a lot more information than we currently have now.

What I am most interested in is the following:

Can I work out roughly where the break-even point is?
Can I work out the relationship between sales and profit?
Did the receivables rise and by how much?
Are they burning cash?
Are they generating many small sales or is the revenue being propped up by a couple of big orders?

I care a lot about the last question. To be honest I'd much rather see $50M in revenue spread across hundreds or even thousands of customers than $60 M with most of it confined to 3-4 large customers. One of the really big drags on DRO's share price is the question of whether the recent large orders are one off or repeatable. Even if they are repeatable, it is still a massive exposure. Companies change suppliers all the time.

Having said that, unpredictable and lumpy large orders may be part of the industry. I can live with that, but would also want to see a steady supply of smaller orders that smooth things out and avoid cash crunches if there are long delays between big orders.