FLYHT Announces IATA Strategic Partnership

Calgary, Alberta, Canada – August 30, 2022 – FLYHT Aerospace Solutions Ltd. (TSX-V: FLY) (OTCQX: FLYLF) (the “Company” or “FLYHT”) today announced that the company has joined IATA’s Aviation Cyber Security Strategic Partnerships program.

A safe and secure airline industry is a key priority for FLYHT. As an IATA Strategic Partner, FLYHT will be at the forefront of industry initiatives to ensure the highly effective mitigation of cyber security risks. This includes contributing to the development of industry standards, influencing the cyber security regulatory environment for aviation, and collaborating with other aviation leaders on mutual concerns and emerging issues.

Jeff Viens – Director of Security for FLYHT, stated, “Security threats against airlines and airports continue to evolve.  And with the increasing digitization of the industry – including the progression towards the ‘connected aircraft’ – airlines and their industry partners are working diligently to protect aircraft, data, and technological systems against a range of digital threats. It’s exciting for FLYHT to be collaborating with other industry leaders in this effort through IATA’s Strategic Partnerships program. It gives us such a great opportunity to make a meaningful contribution to the future of aviation cyber security.”

About FLYHT Aerospace Solutions Ltd.

FLYHT provides airlines with Actionable Intelligence to transform operational insight into immediate, quantifiable action, and delivers industry leading solutions to improve aviation safety, efficiency, and profitability. This unique capability is driven by a suite of patented aircraft certified hardware products. These include AFIRS™, an aircraft satcom/interface device, which enables cockpit voice communications, real-time aircraft state analysis, and the transmission of aircraft data while inflight. The AFIRS Edge is a state-of-the-art 5G Wireless Quick Access Recorder (WQAR), Aircraft Interface Device (AID), and Aircraft Condition and Monitoring System (ACMS). The Edge can be interfaced with FLYHT’s TAMDAR probe or the FLYHT-WVSS-II relative humidity sensor to deliver airborne weather and humidity data in real-time.

CrossConsense, FLYHT’s wholly owned subsidiary, offers highly skilled services to the commercial aviation industry and provides preventative maintenance solutions. These include Aircraft Fleet View, a native application that gives a real-time view of airline fleet status; AviationDW, a managed data warehouse for enhanced business intelligence; and ACSIS, a visualization and predictive maintenance alerting tool.

FLYHT is headquartered in Calgary, Canada, and is an AS9100 Quality registered company. CrossConsense, located in Frankfurt, Germany, is an ISO9001 certified operation. For more information, visit www.flyht.com.

FLYHT Bolsters Commercial Leadership Team

Scott Chambers named VP Sales and Marketing and Murray Skelton named VP Business Development

Calgary, Alberta – August 11, 2022 – FLYHT Aerospace Solutions Ltd. (TSX-V: FLY) (OTCQX: FLYLF) (the “Company” or “FLYHT”) today announced two additions to its leadership team effective September 1, 2022. Both additions bring significant experience and expertise to its commercial organization and improve the Company’s go-to-market position.

  • Scott Chambers has been named Vice President Sales and Marketing. Scott brings over a quarter of a century of aviation sales and market experience, most recently as Director of Sales, Americas at Teledyne Controls.
  • Murray Skelton has been named Vice President Business Development. Murray adds 23 years of aviation product development, marketing and direct sales experience. He formerly served as Senior Director of Business Development and headed the EMEA (Europe, Middle East, Africa) sales effort for the last two years at Teledyne Controls. He brings a wealth of customer and market knowledge to FLYHT through more than two decades of aviation experience in product development, direct marketing and a proven sales record.

Bill Tempany, Chief Executive Officer of FLYHT, stated, “Attracting the caliber of individuals such as Scott and Murray to our organization is important, occurring at a critical time as the aviation industry continues to recover and as FLYHT asserts its growing prominent position. As we execute on our U.S. and European sales growth strategy, we are building a team of highly experienced industry executives and these two new team members are an invaluable addition.”

Mr. Chambers commented, “FLYHT has tremendous potential, between its technology, products and people, and I look forward to collaborating with the entire team to convert that potential into a reality.”
Mr. Skelton added, “The team at FLYHT are innovative, motivated and with new products launching in the market very soon, I am excited about the prospects. It is also going to be great working with former colleagues again.”

Derek Taylor will transition from VP Sales and Marketing to VP Strategic Opportunities. This change for Mr. Taylor will allow him to focus more directly on the types of opportunities that he has so successfully closed for FLYHT in the past. “As FLYHT expands our Sales team, working closely with Scott and Murray represents an opportunity for FLYHT to engage the industry in a powerful way. I am excited to welcome them to our team and to begin working together.”

In keeping with previous practice, FLYHT has granted incentive options for an aggregate of 40,000 common shares, subject to regulatory approval under the stock option plan approved at the Annual and Special Meeting held on May 4, 2022. The stock options are exercisable at a price of $0.82 per share. These options will vest 1/3 on each of August 10, 2023, 2024 and 2025, and will expire on August 10, 2026. A maximum of 10% of the issued and outstanding shares are reserved under the Company’s stock option plan. The options, and any common shares issued upon exercise of the stock options, are subject to a four-month resale restriction.

About FLYHT Aerospace Solutions Ltd.

FLYHT provides airlines with Actionable Intelligence to transform operational insight into immediate, quantifiable action, and delivers industry leading solutions to improve aviation safety, efficiency, and profitability. This unique capability is driven by a suite of patented aircraft certified hardware products. These include AFIRS™, an aircraft satcom/interface device, which enables cockpit voice communications, real-time aircraft state analysis, and the transmission of aircraft data while inflight. The AFIRS Edge is a state-of-the-art 5G Wireless Quick Access Recorder (WQAR), Aircraft Interface Device (AID), and Aircraft Condition and Monitoring System (ACMS). The Edge can be interfaced with FLYHT’s TAMDAR probe or the FLYHT-WVSS-II relative humidity sensor to deliver airborne weather and humidity data in real-time.
CrossConsense, FLYHT’s wholly owned subsidiary, offers highly skilled services to the commercial aviation industry and provides preventative maintenance solutions. These include Aircraft Fleet View, a native application that gives a real-time view of airline fleet status; AviationDW, a managed data warehouse for enhanced business intelligence; and ACSIS, a visualization and predictive maintenance alerting tool.

FLYHT is headquartered in Calgary, Canada, and is an AS9100 Quality registered company. CrossConsense, located in Frankfurt, Germany, is an ISO9001 certified operation. For more information, visit www.flyht.com.

FLYHT Reports Second Quarter 2022 Results

SaaS Growth of 49%; Sale Contracted in May 2022 to Fund Business Plan to Cash Flow Positive

Calgary, Alberta – August 10, 2022 – FLYHT Aerospace Solutions Ltd. (TSX-V: FLY) (OTCQX: FLYLF) (the “Company” or “FLYHT”) today reported financial results for the second quarter ended June 30, 2022 (“Q2 2022”). All figures are Canadian dollars unless otherwise stated.

Management Commentary

“FLYHT delivered improved results quarter over quarter, demonstrating the increasing traction we have in our business as well as the unfolding recovery of our airline customers,” said Bill Tempany, Interim CEO. “We delivered the second highest revenue quarter in two years driven by growth in SaaS, Licensing and Technical Services, as well as the first full quarter including CrossConsense in our financial results. Revenue of $4.9 million would have been even stronger without licensing shipment delays resulting from short-term supply chain issues at quarter end. Shipments of licensing revenue in the first week of Q3 which were originally scheduled for Q2 amounted to another $900k and likely would have pushed revenue closer to record territory. With the momentum and visibility we have, I am confident that we are on track for a solid year in 2022.”

Added Tempany, “Delivery in Q2 of the first few shipments of modems and associated licenses under the purchase order for $5.65 million USD announced on May 4, 2022 contributed to our Q2 increases in the Licensing revenue category. We anticipate delivering on the full purchase order requirements over the remaining quarters of 2022, which will more than provide the funding for FLYHT to execute on our business plan.

Concluded Tempany, “The AFIRS Edge is without a doubt the biggest opportunity that FLYHT has had in years. Driven by the demise of 2G and 3G networks, there is a massive replacement cycle ahead of the global aviation industry, which we think favors FLYHT since we have the only multi-function 3G, 4G and 5G capable solution to serve the estimated 15,000 aircraft around the world. We are making good progress in order to be able to realize this opportunity: the first manufactured AFIRS Edge units have been received from our supplier and are undergoing the final testing and certification steps, while development on the A320 and B737 Supplemental Type Certificates (STC’s) is well underway.”

Operating Results

Revenue increased by 67% to $4,881,372 in Q2 2022 compared to Q2 2021, driven by growth in SaaS, Licensing and Technical Services, including $1,144,590 of contribution from CrossConsense which was consolidated into FLYHT’s results beginning March 17, 2022. Excluding CrossConsense, revenue increased 28% compared to Q2 2021.

SaaS revenue increased by 49% to $2,155,912 in Q2 2022. The addition of a full quarter of CrossConsense SaaS revenues more than offset a decrease of 5.1% in AFIRS SaaS revenues resulting from a drop in customers’ flight hours and active aircraft in some geographies with recent waves of the pandemic. Licensing revenue increased from $7,924 to $1,399,903 due to increases in the number of modems and associated license fees ordered for delivery in comparative periods, as the Company began delivering on an order received in mid-Q2 2022 for US$5.65 million. Technical Services revenue increased by 509% to $412,875 with contributions from CrossConsense services offsetting a decrease of 32.9% from traditional services. Hardware revenue decreased by 35% to $912,682 offsetting a portion of the large increases in hardware shipments seen in Q1 2022. A total of 46 installation kits were shipped YTD 2022 compared withing to 41 shipped YTD 2021.

Gross margin was 56% of revenue in Q2 2022 compared to 52% in Q2 2021. The increase in gross margin was due primarily to changes in the mix of revenue sources during the quarter.

Operating expenses increased by 40% from Q2 2021, driven by a 50% increase in Distribution expenses by 50% and an 84% increase in Administration expenses Research and Development and certification engineering expenses were flat compared to Q2 2021. These increases were largely driven by the Q2 2022 inclusion of a full quarter of CrossConsense’s contributions.

EBITDA loss totaled $905,780 in Q2 2022 compared to EBITDA loss of $980,611 in Q2 2021.
Net loss was $1,141,140 in Q2 2022 compared to Net loss of $1,395,889 in Q2 2021.

Balance Sheet and Liquidity

Cash and short-term investments were $2,431,920 at June 30, 2022, compared to $4,520,591 at December 31, 2021.

Trade and other receivables increased by 102% to $3,216,068 compared to YE 2021, and Trade payables and accrued liabilities increased by 68% to $2,855,923 compared to YE 2021. The combination of the addition of CrossConsense working capital balances calculated as part of the acquisition purchase price allocation, in tandem with increased sales in Q2 and associated costs resulted in an increase in both the receivables and payables balances.

Management will accept questions by telephone and e-mail. Individuals wishing to ask a question during the call can do so by pressing *1. Questions can be emailed in advance or during the conference call toinvestors@flyht.com. An archive of the conference call will be posted on the Investor Communications section of FLYHT’s website following the meeting.

About FLYHT Aerospace Solutions Ltd.

FLYHT provides airlines with Actionable Intelligence to transform operational insight into immediate, quantifiable action, and delivers industry leading solutions to improve aviation safety, efficiency, and profitability. This unique capability is driven by a suite of patented aircraft certified hardware products. These include AFIRS™, an aircraft satcom/interface device, which enables cockpit voice communications, real-time aircraft state analysis, and the transmission of aircraft data while inflight. The AFIRS Edge is a state-of-the-art 5G Wireless Quick Access Recorder (WQAR), Aircraft Interface Device (AID), and Aircraft Condition and Monitoring System (ACMS). The Edge can be interfaced with FLYHT’s TAMDAR probe or the FLYHT-WVSS-II relative humidity sensor to deliver airborne weather and humidity data in real-time.
CrossConsense, FLYHT’s wholly-owned subsidiary, offers highly skilled services to the commercial aviation industry and provides preventative maintenance solutions. These include Aircraft Fleet View, a native application that gives a real-time view of airline fleet status; AviationDW, a managed data warehouse for enhanced business intelligence; and ACSIS, a visualization and predictive maintenance alerting tool.

FLYHT is headquartered in Calgary, Canada, and is an AS9100 Quality registered company. CrossConsense, located in Frankfurt, Germany, is an ISO9001 certified operation. For more information, visit www.flyht.com.

FLYHT Announces Completion of AFIRS Installation on Initial China Express ARJ-21 Aircraft

Calgary, Alberta, Canada – June 7, 2022 – FLYHT Aerospace Solutions Ltd. (TSX-V: FLY) (OTCQX: FLYLF) (the “Company” or “FLYHT”) today announced that successful installation and testing has been completed for the first of 20 AFIRS 228S units on ARJ21 aircraft ordered by China Express Airlines Co. Ltd., China’s first private regional airline. All tests have been completed and the aircraft is planned to enter commercial service today. As communicated in September 2020, China Express will take delivery of 20 ARJ21 aircraft, with an expected commitment up to 100 aircraft to be delivered over the next several years. The ARJ21 is the newest Chinese developed and built aircraft.

Bill Tempany, CEO of FLYHT, stated, “It has been a long time in the making, but today I am proud to say that we have successfully completed this first installation of AFIRS on the ARJ21 and that our technology will be operational on this new aircraft type. We see the introduction of the ARJ21 into service with China Express as a continuing step in our relationship as we provide consistent reporting across the different aircraft types in their fleet. FLYHT remains committed to our customers in China and to working with COMAC on the CAAC STC installation of AFIRS.”

About FLYHT Aerospace Solutions Ltd.
FLYHT provides airlines with Actionable Intelligence to transform operational insight into immediate, quantifiable action, and delivers industry leading solutions to improve aviation safety, efficiency, and profitability. This unique capability is driven by a suite of patented aircraft certified hardware products. These include AFIRS™, an aircraft satcom/interface device, which enables cockpit voice communications, real-time aircraft state analysis, and the transmission of aircraft data while inflight. The AFIRS Edge is a state-of-the-art 5G Wireless Quick Access Recorder (WQAR), Aircraft Interface Device (AID), and Aircraft Condition and Monitoring System (ACMS). The Edge can be interfaced with FLYHT’s TAMDAR probe or the FLYHT-WVSS-II relative humidity sensor to deliver airborne weather and humidity data in real-time.

CrossConsense, FLYHT’s wholly owned subsidiary, offers highly skilled services to the commercial aviation industry and provides preventative maintenance solutions. These include Aircraft Fleet View, a native application that gives a real-time view of airline fleet status; AviationDW, a managed data warehouse for enhanced business intelligence; and ACSIS, a visualization and predictive maintenance alerting tool.

FLYHT is headquartered in Calgary, Canada, and is an AS9100 Quality registered company. CrossConsense, located in Frankfurt, Germany, is an ISO9001 certified operation. For more information, visit www.flyht.com.

FLYHT’s AFIRS Edge A320 Platform to Launch on Coral Jet

The AFIRS Edge is an aircraft interface device (“AID”), pushing aircraft data to EFB applications, providing airlines with Wireless Quick Access (WQAR) capabilities, all while serving as a gateway on the aircraft for critical real-time information and onboard data storage. With powerful onboard analytics capabilities, the Edge leverages innovative technology to allow complex analytics to be developed and deployed more efficiently than conventional updates. The Edge also serves as a data port for the Actionable Intelligence services such as fuel management, aircraft health monitoring and real-time engine data reporting. These tools will help airlines recover from the pandemic while monitoring and reducing fuel burn and thereby greenhouse gas emissions.

FLYHT’s development of the Edge as well as its suite of Actionable Intelligence tools was developed with repayable funding support from PrairiesCan through its Western Innovation Initiative.

Kent Jacobs, President of FLYHT stated, “We are very excited to have a launch customer for the Edge product line and plan to complete the STC process for the A319/320/321 and the B737NG this year. Our AFIRS Edge is a light weight, powerful avionics product that provides airlines with a wireless QAR (Quick Access Recorder), AID functions, and ACMS capabilities that will help airlines improve their operational efficiency. Completing these two STCs this year will allow us to meet the demand we are seeing in the marketplace. We see this as a significant step forward in the rollout of this product.”

Wes Gardner, Director of Flight Operations of Coral Jet said, “FLYHT products have always been ahead of their time, and we see the Edge product line solving most of our data and pilot communication needs. We look forward to the new products being developed for the Edge to help us run an efficient and environmentally friendly airline.”

This contract is valued at approximately $100,000 USD over the five-year contract term, with potential for increase as Coral Jet’s fleet grows.

About FLYHT Aerospace Solutions Ltd.
FLYHT provides airlines with Actionable Intelligence to transform operational insight into immediate, quantifiable action, and delivers industry leading solutions to improve aviation safety, efficiency, and profitability. This unique capability is driven by a suite of patented aircraft certified hardware products. These include AFIRS™, an aircraft satcom/interface device, which enables cockpit voice communications, real-time aircraft state analysis, and the transmission of aircraft data while inflight. The AFIRS Edge is a state-of-the-art 5G Wireless Quick Access Recorder (WQAR), Aircraft Interface Device (AID), and Aircraft Condition and Monitoring System (ACMS). The Edge can be interfaced with FLYHT’s TAMDAR probe or the FLYHT-WVSS-II relative humidity sensor to deliver airborne weather and humidity data in real-time.

CrossConsense, FLYHT’s wholly owned subsidiary, offers highly skilled services to the commercial aviation industry and provides preventative maintenance solutions. These include Aircraft Fleet View, a native application that gives a real-time view of airline fleet status; AviationDW, a managed data warehouse for enhanced business intelligence; and ACSIS, a visualization and predictive maintenance alerting tool.

FLYHT is headquartered in Calgary, Canada, and is an AS9100 Quality registered company. CrossConsense, located in Frankfurt, Germany, is an ISO9001 certified operation. For more information, visit www.flyht.com.

FLYHT Announces Participation in Upcoming Investor Conferences

Calgary, Alberta – May 16, 2022 – FLYHT Aerospace Solutions Ltd. (TSX-V: FLY) (OTCQX: FLYLF) (the “Company” or “FLYHT”) today announced that its executive team will participate in the following upcoming investor conferences:

MicroCap Rodeo Spring Into Action Best Ideas Conference, May 17, 2022 (Virtual): CFO Alana Forbes will present virtually at 4:30 pm ET (2:30 pm MT) on Tuesday, May 17, and management will participate in one-on-one meetings throughout the conference. Investors can register for the conference at https://microcaprodeo.com/signup and stream the presentation live at https://www.webcaster4.com/Webcast/Page/2882/45583.

LD Micro Invitational XII, June 7-9, 2022 (Westlake Village, CA): CEO Bill Tempany and President Kent Jacobs will present in person at 11:00 am PT (12:00 pm MT) on Wednesday, June 8, and will participate in one-on-one meetings throughout the conference. Investors can stream the presentation live at https://www.meetmax.com/sched/event_82067/conference_home.html.

Emerging Equities VIP Event at the RBC Canadian Open, June 11, 2022 (Toronto): CEO Bill Tempany will meet in person with investors on Saturday, June 11.

About FLYHT Aerospace Solutions Ltd.
FLYHT provides airlines with Actionable Intelligence to transform operational insight into immediate, quantifiable action, and delivers industry leading solutions to improve aviation safety, efficiency, and profitability. This unique capability is driven by a suite of patented aircraft certified hardware products. These include AFIRS™, an aircraft satcom/interface device, which enables cockpit voice communications, real-time aircraft state analysis, and the transmission of aircraft data while inflight. The AFIRS Edge is a state-of-the-art 5G Wireless Quick Access Recorder (WQAR), Aircraft Interface Device (AID), and Aircraft Condition and Monitoring System (ACMS). The Edge can be interfaced with FLYHT’s TAMDAR probe or the FLYHT-WVSS-II relative humidity sensor to deliver airborne weather and humidity data in real-time.

CrossConsense, FLYHT’s wholly owned subsidiary, offers highly skilled services to the commercial aviation industry and provides preventative maintenance solutions. These include Aircraft Fleet View, a native application that gives a real-time view of airline fleet status; AviationDW, a managed data warehouse for enhanced business intelligence; and ACSIS, a visualization and predictive maintenance alerting tool.

FLYHT is headquartered in Calgary, Canada, and is an AS9100 Quality registered company. CrossConsense, located in Frankfurt, Germany, is an ISO9001 certified operation. For more information, visit www.flyht.com.

FLYHT Receives US$5.65 million Purchase Order from a Long-Time OEM Partner

Calgary, Alberta – May 4, 2022 – FLYHT Aerospace Solutions Ltd. (TSX-V: FLY) (OTCQX: FLYLF) (the “Company” or “FLYHT”) announced today that it has received a purchase order with a value of US$5.65 million for Iridium modems and license fees from a long-time OEM partner. This order builds upon the relationship previously discussed in press releases dated July 15, 2014, August 1, 2019, February 18, 2020, July 6, 2021, and October 6, 2021.

Bill Tempany, CEO of FLYHT stated, “This most recent order shows the strength of the recovery that is unfolding on the OEM side of the airline industry. We are very happy that our relationship to install these very successful software and intellectual property products on aircraft continues to result in deployments of AFIRS products around the world. We are seeing strong recovery of our customers in North America and in Europe, with recovery lagging in SE Asia and China. We expect to see these markets recover late 2022 into early 2023, as living with Covid becomes the norm. This latest order allows FLYHT to exit the pandemic in a strong position, ready to deliver our new products and services to existing and new customers.”

Under the terms of the existing agreement, the OEM customer will be licensing FLYHT’s technology and delivering the AFIRS 228S system to their European airframer customer for three certified aircraft platform types. The products are scheduled for delivery throughout the remainder of 2022.

About FLYHT Aerospace Solutions Ltd.
FLYHT provides airlines with Actionable Intelligence to transform operational insight into immediate, quantifiable action, and delivers industry leading solutions to improve aviation safety, efficiency, and profitability. This unique capability is driven by a suite of patented aircraft certified hardware products. These include AFIRS™, an aircraft satcom/interface device, which enables cockpit voice communications, real-time aircraft state analysis, and the transmission of aircraft data while inflight. The AFIRS Edge is a state-of-the-art 5G Wireless Quick Access Recorder (WQAR), Aircraft Interface Device (AID), and Aircraft Condition and Monitoring System (ACMS). The Edge can be interfaced with FLYHT’s TAMDAR probe or the FLYHT-WVSS-II relative humidity sensor to deliver airborne weather and humidity data in real-time.

CrossConsense, FLYHT’s wholly-owned subsidiary, offers highly skilled services to the commercial aviation industry and provides preventative maintenance solutions. These include Aircraft Fleet View, a native application that gives a real-time view of airline fleet status; AviationDW, a managed data warehouse for enhanced business intelligence; and ACSIS, a visualization and predictive maintenance alerting tool.

FLYHT is headquartered in Calgary, Canada, and is an AS9100 Quality registered company. CrossConsense, located in Frankfurt, Germany, is an ISO9001 certified operation. For more information, or visit flyht.com.

FLYHT Reports First Quarter 2022 Results Highest Revenue Quarter in Two Years

Calgary, Alberta – May 3, 2022 – FLYHT Aerospace Solutions Ltd. (TSX-V: FLY) (OTCQX: FLYLF) (the “Company” or “FLYHT”) today reported financial results for the first quarter ended March 31, 2022 (“Q1 2022”). All figures are Canadian dollars unless otherwise stated.

Financial Summary – For Three Months ending March 31

 2022 2021Increase /Decrease
Revenue$5,030,657$2,691,27587%
 SaaS1,675,0721,539,8259%
 Hardware2,109,598831,704154%
 Licensing1,134,706182,181523%
Technical Services111,281137,565-19%
Gross Margin54.7%56.5%-80 bps
EBITDA(937,630)(1,000,616)6%
Net Income (Loss)(1,284,347)(912,068)-40%
EPS – Basic(0.03)(0.03)(0.00)
EPS – Diluted(0.03)(0.03)(0.00)

Added Tempany, “One major area that FLYHT is particularly well positioned to assist the aviation industry is climate, where we are focused on being the premier supplier of products and services to assist our customers in their efforts to meet or exceed net-zero targets. We are supporting customers in multiple ways, whether it be helping airlines reduce unnecessary fuel burn on the ground, or regulators and the planet as a whole better understand what is changing and where. The move to sustainable aviation fuel (“SAF”) will only further increase the importance of data and insights to on aircraft performance, and so we are very optimistic about how FLYHT can be part of an industry solution and how this growing area of global importance can be a megatrend driving continued performance of FLYHT’s business in the years ahead.”

Operating Results
Revenue increased by 87% to $5,030,657 compared to Q1 2021, driven by growth in all three of our largest businesses, and $186,360 of contribution from CrossConsense which was consolidated into the Company’s results beginning March 17, 2022. Excluding CrossConsense, revenue increased 80% compared to Q1 2021.

Licensing revenue increased by 523% to $1,134,706 due to a higher number of modems and associated license fees ordered for delivery in comparative periods. Hardware revenue increased by 154% to $2,109,598 due to the reopening of international travel, particularly seen in North America, resulting in customers moving forward with shipments of 34 contracted installation kits versus 17 in Q1 2021. SaaS revenue increased by 9% to $1,675,072 and due to a higher number of flights and flight hours. Technical Services revenue decreased by 2% to $111,281.

Gross margin was 55% of revenue compared to 57% in Q1 2021. The decrease in gross margin was due primarily to changes in the mix of revenue sources during the quarter.

Operating expenses increased by 43% from Q1 2021, with all categories contributing to the increase – Distribution expenses by 37%, Administration expenses by 71%, and Research and Development and certification engineering expenses by 27%. This increase contributed to an increase in bad debt reserve, labor and legal expenses related to the pursuit and acquisition of CrossConsense and the elimination of government grants in 2022.

EBITDA[1] loss totaled $937,630 compared to EBITDA loss of $1,000,616 in Q1 2021.

Net loss was $1,284,347 compared to Net loss of $912,068 in Q1 2021.

Balance Sheet and Liquidity
Cash and short-term investments were $3,326,656 at March 31, 2022, compared to $4,520,591 at December 31, 2021.

Trade and other receivables increased to $3,700,553 compared to YE 2021, and Trade payables and accrued liabilities increased by 91% to $3,255,540 compared to YE 2021. The combination of the addition of CrossConsense working capital balances calculated as part of the acquisition purchase price allocation, in tandem with increased sales in Q1 and associated costs resulted in an increase in both the receivables and payables balances.

Additional Information
FLYHT’s Q1 2022 Report, which contains more detailed information including the CEO’s Letter to Shareholders, Management Discussion and Analysis and Financial Statements, can be accessed on the Company’s website. The MD&A and Financial Statements have also been filed with SEDAR and will be accessible at http://www.sedar.com.

About FLYHT Aerospace Solutions Ltd.
FLYHT provides airlines with Actionable Intelligence to transform operational insight into immediate, quantifiable action, and delivers industry leading solutions to improve aviation safety, efficiency, and profitability. This unique capability is driven by a suite of patented aircraft certified hardware products. These include AFIRS™, an aircraft satcom/interface device, which enables cockpit voice communications, real-time aircraft state analysis, and the transmission of aircraft data while inflight. The AFIRS Edge is a state-of-the-art 5G Wireless Quick Access Recorder (WQAR), Aircraft Interface Device (AID), and Aircraft Condition and Monitoring System (ACMS). The Edge can be interfaced with FLYHT’s TAMDAR probe or the FLYHT-WVSS-II relative humidity sensor to deliver airborne weather and humidity data in real-time.

CrossConsense, FLYHT’s wholly-owned subsidiary, offers highly skilled services to the commercial aviation industry and provides preventative maintenance solutions. These include Aircraft Fleet View, a native application that gives a real-time view of airline fleet status; AviationDW, a managed data warehouse for enhanced business intelligence; and ACSIS, a visualization and predictive maintenance alerting tool.

FLYHT is headquartered in Calgary, Canada, and is an AS9100 Quality registered company. CrossConsense, located in Frankfurt, Germany, is an ISO9001 certified operation. For more information, visit flyht.com.

FLYHT Aerospace Solutions and MBS Electronic Systems Partner to Prototype Secure Wireless Avionics Software

FLYHT and MBS prototype developed for secure wireless avionics software vault and onboard data loading solution to enable customers to fully comply with new security requirements

Calgary, Alberta and Gilching Germany May 3, 2022 – FLYHT Aerospace Solutions Ltd(TSX-V: FLY) (OTCQX: FLYLF) (the “Company” or “FLYHT”) today announced a cooperation with MBS Electronic Systems GmbH (“MBS”), a leading provider of secure data loading solutions that enable compliant avionics software maintenance and safer flight operations. The two companies have collaborated to develop a secure wireless avionics software and onboard data loading solution with the goal of enabling customers to fully comply with new security requirements.

Stated Kent Jacobs, President of FLYHT, “Airlines have been seeking secure data loading that makes for a lower cost and quicker installation and meets all regulator requirements. This partnership with MBS enables us to combine our AFIRS Edge platform, an advanced secure avionics data repository, with an advanced avionics data loader capability provided by the experts at MBS. Together, this creates a streamlined, secure solution for airlines to utilize, complying with secure data requirements and improving operating efficiency.”

Added Dr. Charles Nicholls, Technical Director at MBS, “As a leader in the secure portable data loader field, we have seen increased demand from airlines for an onboard solution that meets the guidance of ARINC 645-1. Together with FLYHT, we can service this growing need among the airlines.”

Added Willie Cecil, Sales Director at FLYHT, “Both companies’ technologies are so mature that an initial prototype solution was developed and will be demonstrated in Memphis. We are excited by airline interest in our solution, and we plan to qualify and certify the solution within the next six months.”

FLYHT and MBS plan to showcase the new solution to airlines at the annual Aviation Maintenance Conference in Memphis on May 10-12, 2022. This collaboration offers the opportunity to evaluate the strength of a combined solution, with the intention to solidify a financial arrangement following the Memphis event.

About FLYHT Aerospace Solutions Ltd.

FLYHT provides airlines with Actionable Intelligence to transform operational insight into immediate, quantifiable action, and delivers industry leading solutions to improve aviation safety, efficiency, and profitability. This unique capability is driven by a suite of patented aircraft certified hardware products. These include AFIRS™, an aircraft satcom/interface device, which enables cockpit voice communications, real-time aircraft state analysis, and the transmission of aircraft data while inflight. The AFIRS Edge is a state-of-the-art 5G Wireless Quick Access Recorder (WQAR), Aircraft Interface Device (AID), and Aircraft Condition and Monitoring System (ACMS). The Edge can be interfaced with FLYHT’s TAMDAR probe or the FLYHT-WVSS-II relative humidity sensor to deliver airborne weather and humidity data in real-time.

CrossConsense, FLYHT’s wholly-owned subsidiary, offers highly skilled services to the commercial aviation industry and provides preventative maintenance solutions. These include Aircraft Fleet View, a native application that gives a real-time view of airline fleet status; AviationDW, a managed data warehouse for enhanced business intelligence; and ACSIS, a visualization and predictive maintenance alerting tool.

FLYHT is headquartered in Calgary, Canada, and is an AS9100 Quality registered company. CrossConsense, located in Frankfurt, Germany, is an ISO9001 certified operation. For more information, visit www.flyht.com.

About MBS Electronic Systems GmbH

Based in Gilching, Germany, MBS provides the e-enabled data loading system of choice for many of the world’s largest and most prestigious airlines. With innovative technologies and unrivalled customer support and cooperation, MBS continually improves their product features and adapts to the changing requirements of the industry. MBS provides a secure, cost effective, reliable data loading solution with a total commitment to quality and customer satisfaction. For more information, visit www.mbs-electronics.com.

FLYHT and Swoop Partner to Reduce Emissions

Receives Support from Alberta Innovates for Environmental Leading Initiative

Calgary, Alberta – March 16, 2022 – FLYHT Aerospace Solutions Ltd. (TSX-V: FLY) (OTCQX: FLYLF) (the “Company” or “FLYHT”) announced that FLYHT is partnering with Swoop Airlines to reduce emissions by eliminating non-essential Auxiliary Power Unit (APU) usage. The program is partially funded through a grant of $150,000 from the Alberta Innovates Product Demonstration Program (“PDP”).

The FLYHT real-time APU monitoring and notification program allows an airline to reduce its APU run times by providing timely, targeted and actionable notifications, thereby reducing CO2 emissions and providing cost savings for the airline. This initiative is aligned with FLYHT’s goal of providing environmentally beneficial solutions that enhance the profit potential for an airline and that create a greener, safer world. The APU consumes approximately 250 lbs of fuel per hour under normal operation.

This APU solution leverages the power of FLYHT’s AFIRS™ family, including the latest platform, AFIRS Edge, of on-wing monitoring and ground infrastructure. The AFIRS family allows for real time monitoring of aircraft data and can be powered by the aircraft’s engines, an external ground power source, or the aircraft APU. The AFIRS Edge has been developed with repayable funding support from Prairies Economic Development Canada (PrairiesCan) through its Western Innovation Initiative.

Bill Tempany, CEO remarked, “FLYHT is always looking for ways to support our customers in their ongoing initiatives to reduce their environmental impact, and we are very happy to have the support of Alberta Innovates to do so. Our relationship with Swoop gives a real Alberta flavor to a global initiative. The results of this work can be rolled out around the world to our more than 80 airline customers.”

Charles Duncan, President of Swoop commented, “The FLYHT APU solution aligns with our commitment to reduce greenhouse gas emissions by operating our fleet and ground infrastructure as efficiently and safely as possible. We are proud to be working with FLYHT to move the industry forward in the effort to reduce emissions.”

About FLYHT Aerospace Solutions Ltd.

FLYHT provides airlines with Actionable Intelligence to transform operational insight into immediate, quantifiable action, delivering industry leading solutions to improve aviation safety, efficiency, and profitability. This unique capability is driven by FLYHT’s patented aircraft certified hardware products including AFIRS™, a satcom aircraft interface device which enables real-time streaming of flight information, cockpit voice and black box data streaming, AFIRS Edge a state of the art WQAR and satellite data communications device, and TAMDAR™ and the FLYHT-WVSS-II™, which deliver airborne weather and humidity data in real-time. FLYHT is headquartered in Calgary, Canada with an office in Littleton, Colorado, and is an AS9100 Quality registered company. For more information view our latest presentation here, or visit http://www.flyht.com.

About Swoop

Swoop is on a mission to make travel more affordable and accessible for all Canadians. Established in 2018 as an independent subsidiary of the WestJet Group of Companies, Swoop is Canada’s ultra-not-expensive airline. Offering scheduled service to destinations in Canada, the U.S., Mexico and the Caribbean, Swoop’s unbundled fares put travellers in control of purchasing only the products and services they desire.
Swoop’s modern fleet of ten Boeing 737-800 NG aircraft, will grow to 16 with the addition of six Boeing MAX-8 in 2022. At FlySwoop.com travellers can quickly and easily book flights, manage bookings, check-in, view boarding passes, track flights and access Wi-Fi service in-flight.   
  
About Alberta Innovates’ PDP Program

The Product Demonstration Program is designed to de-risk the commercialization process by providing funds and coaching to high potential, high growth technology Alberta small to medium-sized enterprises to commercialize their products and achieve an optimal market position to increase revenue and potentially expand into global markets.