FLYHT AEROSPACE SLTNS LTD - FLYLF STOCK NEWS

FLYHT Aerospace Solutions has received an order from WestJet Airlines to install its TSO-approved AFIRS™ 228S satcom solution on WestJet's Boeing 737 MAX-10 fleet. The contract expansion, valued at approximately US$900,000, builds upon a previously announced 2020 agreement. The AFIRS system will provide long-range data and voice communications while maintaining fleet commonality across WestJet's aircraft types. The solution allows immediate installation and activation of safety services functions upon aircraft delivery.

FLYHT Aerospace Solutions (TSXV:FLY)(OTCQX:FLYLF) has entered into a definitive agreement to be acquired by Firan Technology Group (TSX:FTG)(OTCQX:FTGFF) in a cash and share transaction valued at approximately CAD$13.2 million. The transaction offers FLYHT shareholders a 41% premium to the closing price on October 21, 2024. Shareholders can elect to receive cash, FTG shares, or a combination, subject to pro-ration. The deal is expected to close in Q4 2024, subject to shareholder and regulatory approvals.

The acquisition aims to accelerate FLYHT's growth, particularly in commercializing its AFIRS Edge product line. It aligns with FTG's strategic objectives to increase aftermarket sales in commercial aerospace and expand its relationship with Airbus. FLYHT's board unanimously recommends shareholders vote in favor of the transaction, supported by a fairness opinion from KSV Advisory Inc.

FLYHT Aerospace Solutions has announced a partnership with WestJet Airlines and the National Oceanic and Atmospheric Administration (NOAA) to enhance weather forecasting accuracy in North America. WestJet will install FLYHT's weather solutions on five Boeing aircraft flying Pacific routes, including FLYHT-WVSS-II atmospheric water vapor sensors integrated with FLYHT's Edge multi-channel WQAR and Certus SatCom for real-time data transmission.

The collaboration aims to provide NOAA with critical real-time humidity, temperature, and wind data in data-sparse regions over the Pacific. This data will help improve forecasts, particularly for phenomena like 'Atmospheric Rivers' that can cause flooding and heavy snowfall in the Western U.S. The project, funded by a $500,000 appropriation to FLYHT in September 2023, is set to begin hardware installations in early 2025.

FLYHT Aerospace Solutions (TSXV:FLY)(OTCQX:FLYLF) has successfully integrated its 5G AFIRS Edge™ solution with Air North's Boeing 737 NG operations. This integration brings several efficiencies, including:

• Automated post-flight data download for flight safety programs
• Aircraft Interface Device (AID) functionality
• Power over Ethernet for charging iPads in the cockpit

The AFIRS 228 Iridium SatCom will power Air North's real-time access to various FLYHT services. Air North, as the STC partner for Boeing 737 NG aircraft, has agreed to purchase FLYHT's hardware and software services as part of their fleet renewal plans. This successful integration validates FLYHT's pioneering technology and marks a significant step in improving connectivity and operational efficiencies for Air North.

FLYHT Aerospace Solutions (TSX-V: FLY) (OTCQX: FLYLF) reported Q2 2024 financial results. Revenue decreased by 29% to $4,311,999 compared to Q2 2023. SaaS revenue increased by 1% to $2,707,667, while Hardware revenue decreased 46% to $627,756. Gross margin improved to 61.9% from 59.6% in Q2 2023. The company reported a net loss of $1,796,131 compared to a net loss of $168,807 in Q2 2023. FLYHT secured a $5 million unsecured debenture arrangement in June and implemented a strategic restructuring in August, aiming for $1.75 million in annual cost savings. The company is focusing on sales of the AFIRS Edge+ and achieving sustainable positive EBITDA.

FLYHT Aerospace Solutions (TSXV:FLY)(OTCQX:FLYLF) has announced a strategic restructuring of its business operations, aiming to significantly reduce expenditures. The company expects this move to contribute to $1.75 million in annual savings. Key points include:

1. Completion of the AFIRS Edge product line development
2. Shift in focus towards sales and delivering contracted backlog
3. Workforce reduction of 20%
4. Introduction of the Edge+ product, a 4MCU plug-in-replacement version
5. Appointment of Darrel Deane as Chief Revenue Officer and Gurjot Bhullar as Chief Operating Officer

The restructuring aims to achieve positive EBITDA sustainably while delivering returns to stakeholders. A one-time restructuring expense of approximately $770,000 is expected in Q3 2024.

FLYHT Aerospace Solutions (TSXV:FLY)(OTCQX:FLYLF) has announced significant leadership changes. Mr. Kent Jacobs has departed as President and Interim CEO, effective immediately. Executive Chair Mary McMillan has been appointed as Interim CEO, supported by CFO Alana Forbes and the executive leadership team.

The Board plans to initiate a search for a permanent CEO. McMillan expressed gratitude for Jacobs' 23 years of service, particularly his leadership in completing the development of the AFIRS Edge and 5G aviation solutions. The Board is committed to creating shareholder value, with the future CEO expected to focus on accelerating Edge commercialization, driving revenue, and achieving sustainable profitability and positive EBITDA.

FLYHT Aerospace Solutions (TSX-V:FLY)(OTCQX:FLYLF) announced that the National Oceanic and Atmospheric Administration (NOAA) has exercised an option to purchase additional weather sensors and related technology valued at approximately US$465,000. This order is part of a September 2023 agreement to improve weather forecasting and warnings for the U.S. National Weather Service (NWS).

The package includes FLYHT-WVSS-II sensors, Certus SatCom, and AFIRS Edge multi-channel WQAR systems for real-time data transmission. FLYHT will also deliver aircraft-based observations throughout flight phases. The initial hardware is scheduled for installation by late 2024 or early 2025, with the additional hardware expected to be installed in the first or second quarter of 2025.

FLYHT Aerospace Solutions (TSXV:FLY)(OTCQX:FLYLF) has announced a conference call to discuss its Q2 2024 results on August 29, 2024 at 7:30 a.m. MT. The call will feature prepared remarks and a Q&A session with Kent Jacobs, President & Interim CEO, and Alana Forbes, CFO. Participants can join via toll-free numbers in Canada and the U.S. or international dial-in. Questions can be asked during the call or emailed in advance.

Additionally, at the Annual & Special Meeting on June 19, 2024, shareholders approved the 2024 Omnibus Equity Incentive Compensation Plan, replacing the existing stock option plan. This new plan allows for up to 10% of issued and outstanding Common Shares to be reserved for various share-based compensation options, including stock options, RSUs, DSUs, and PSUs. The plan has received TSXV approval and has been implemented.