| SEGMENTED INFORMATION |
As
at and for the three months ended June 30, 2026 the Company operates in
2 reportable segments (as at and for the year ended December 21, 2025 – 2).
The Company organizes its two segments based on its product line as well as a corporate segment. The two segments are Drones and
Corporate. The Drones segment derives its revenue from products and services related to the sale of unmanned aerial vehicles (UAV)
while the Corporate segment includes all costs not directly associated with the Drone segment. The Company aggregates the
information for the segments by analyzing the revenue stream and allocating direct costs to that respective segment. The Corporate
segment is aggregated by relying on the entity that includes corporate costs (Draganfly Inc.).
Operating
segments are reported in a manner consistent with the internal reporting provided to the chief operating decision maker.
The
board of the Company relies on executive management which assesses the financial performance and position of the group and makes strategic
decisions. Executive management, which has been identified as being the chief operating decision maker, consists of the chief executive
officer, chief operating officer and chief financial officer.
SCHEDULE
OF SEGMENTED INFORMATION
| June 30, 2026 | |
Drones | | |
Corporate | | |
Total | |
| Sales of goods | |
$ | 4,792,509 | | |
| - | | |
| 4,792,509 | |
| Provision of services | |
| 184,081 | | |
| - | | |
| 184,081 | |
| Total
revenue | |
| 4,976,590 | | |
| - | | |
| 4,976,590 | |
| Segment loss (income) | |
| 3,251,589 | | |
| 11,135,340 | | |
| 14,386,929 | |
| Finance and other costs | |
| 1,819,740 | | |
| - | | |
| 1,819,740 | |
| Depreciation | |
| 261,685 | | |
| 1,432 | | |
| 263,117 | |
| Amortization | |
| 3,611 | | |
| - | | |
| 3,611 | |
| Change in fair value of derivative liability | |
| - | | |
| 1,038,800 | | |
| 1,038,800 | |
| Loss on write-off of notes receivable | |
| - | | |
| - | | |
| - | |
| Loss on write down of
inventory | |
| 149,503 | | |
| - | | |
| 149,503 | |
| Net
loss for the period | |
$ | 5,486,128 | | |
| 12,175,572 | | |
| 17,661,700 | |
| June 30, 2025 | |
Drones | | |
Corporate | | |
Total | |
| Sales of goods | |
$ | 3,443,396 | | |
$ | - | | |
$ | 3,443,396 | |
| Provision of services | |
| 219,574 | | |
| - | | |
| 219,574 | |
| Total
revenue | |
| 3,662,970 | | |
| - | | |
| 3,662,970 | |
| Segment loss (income) | |
| 4,301,973 | | |
| 3,704,091 | | |
| 8,006,064 | |
| Finance and other costs | |
| 44,494 | | |
| - | | |
| 44,494 | |
| Depreciation | |
| 142,374 | | |
| 6,090 | | |
| 148,464 | |
| Amortization | |
| 4,514 | | |
| - | | |
| 4,514 | |
| Change in fair value of derivative liability | |
| - | | |
| (22,489 | ) | |
| (22,489 | ) |
| Loss on write-off of notes receivable | |
| - | | |
| 34,185 | | |
| 34,185 | |
| Loss on write down of
inventory | |
| (28,246 | ) | |
| - | | |
| (28,246 | ) |
| Net
loss for the period | |
$ | 4,465,109 | | |
$ | 3,721,877 | | |
$ | 8,186,986 | |
Draganfly
Inc.
Notes
to the Condensed Consolidated Interim Financial Statements
For
the Three and Six Months Ended June 30, 2026
Expressed
in Canadian Dollars (unaudited) |
| 15. | SEGMENTED
INFORMATION (CONT’D) |
SCHEDULE
OF GEOGRAPHIC REVENUE
| | |
June
30, 2026 | | |
December
31, 2025 | |
| Non-current assets | |
| | | |
| | |
| Canada | |
$ | 1,280,392 | | |
$ | 980,758 | |
| United States | |
| 3,619,662 | | |
| 548,473 | |
| | |
$ | 4,900,054 | | |
$ | 1,529,231 | |
Geographic
revenue is measured by aggregating sales based on the country and the entity where the sale was made.
| | |
2026 | | |
2025 | | |
2026 | | |
2025 | |
| | |
For the three
months ended June 30, | | |
For the six
months ended June 30, | |
| | |
2026 | | |
2025 | | |
2026 | | |
2025 | |
| Revenue | |
| | | |
| | | |
| | | |
| | |
| Canada | |
$ | 2,593,318 | | |
$ | 2,111,751 | | |
$ | 4,901,693 | | |
$ | 3,655,834 | |
| United States | |
| 70,919 | | |
| 3,504 | | |
| 74,897 | | |
| 7,136 | |
| Revenue | |
$ | 2,664,237 | | |
$ | 2,115,255 | | |
$ | 4,976,590 | | |
$ | 3,662,970 | |
|