The Canadian drone firm couldn’t deliver on a $2.6-million defence contract in its most recent quarter, leading to a revenue decline of more than 20 per cent versus the same quarter last year, and a net loss of $7.5 million. The problem: a battery shortage. (The Logic)

Talking point: Revenue is “below where we want the business to be at this stage of its development,” chief financial officer Abhinav Singhvi told analysts on an earnings call, but he emphasized that the unfulfilled contract is delayed, not cancelled. Volatus has a hefty cash cushion, too, totalling nearly $59.2 million at the end of the quarter, and opened a new factory at Mirabel, Que., in June. A corporate transformation to answer defence procurements—from being primarily a reseller to a manufacturer of complete systems—means spending up front on facilities, staff, security and quality assurance, Singhvi said, and the company expects revenue to follow. 

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