DRONE AVIATION HOLDI (OTCMKTS:DRNE) has been gaining a lot of attention lately, for two main reasons. The company had recently announced that it had received an order from a defense contractor for WASP aerostat systems. Much of the attention has also been due to the large investment made by Dr. Phillip Frost in the company. Dr. Frost is a self-made billionaire, known for picking out stocks with great potential; could DRNE be his next success story? Additionally, Dr. Frost also receives attention from the media for being a successful trader.
DRNE has been doing a lot better than other companies on the OTCMKTS. The company’s most recent financial report revealed $1.37 million in cash, $848,000 in annual revenues, $1.49 million in assets, but with a net loss of $2.1 million. For an OTC company the figures are good, but it is the $2.1 million net loss that has been bothering most of the investors. Drone Aviation mostly targets consumers in governmental organizations, such as defense and municipal departments. The plus for DRNE is that they manufacture unique tethered drones, which make it stand out. Consequently, the company’s drones are able to provide surveillance and communications solutions to its customers, whilst staying within FAA guidelines.
Drone Aviation is especially known for its rapidly deployable aerostat solutions and mast systems. The two proprietary technologies have proven to be useful for defense and law enforcement purposes. Dr. Frost’s $1.5 million investment had also resulted in an advisory board being created for the company, with Dr. Frost at the helm. So far DRNE has been able to establish a name for itself as a trusted supplier for aerial surveillance equipment. Unfortunately, the advisory board has not yet shown much promise with respect to the company’s balance sheet. The company’s clever use of cables to physically connect the drones to the ground, keeps them within FAA guidelines, while allowing for free flight.
DRONE AVIATION HOLDI (OTCMKTS:DRNE) saw itself rise by 18.01% on June 3, after trading 49.57 million shares during the session, to close at $0.321.