
Deveron UAS Corp. (DVR.CN) specializes in yield optimization for agriculture by using drones to collect and analyze data. We initiated official coverage on June 2017 with additional notes on December 2017, April 2018, September 2018. Since then, the following releases were issued.
Sept. 11 - Receives Final Payment of $567,200 From Sale of Legacy Assets.
"We look forward to investing in growth opportunities that add to our paid acres under management and expanding our gross margins as we push Deveron from a pure data service provider into a product company.” - Deveron's CEO
Sep. 12 - Strategic Alliance with A&L Canada. The goal of the alliance is to advance crop data collection, analysis and interpretation for enhanced farm productivity. A & L provides comprehensive analytical services for soil, plant tissue, feed, fertilizer, and water.
Sep. 17 - Completes Acquisition of Veritas Farm Management. Deveron now owns 100% of the shares of Veritas and its assets.
Nov. 14 - Launch Drone Driven Soil Sampling Solution for North American Agriculture with A&L Canada. The product offering will use high-resolution in-season imagery data collected by UAV ("Drone") to drive and create site specific soil sampling points on farms.
Bundled drone data and soil sampling also provides a data collection option that is cost-effective and scalable when compared to traditional grid soil sampling methods. Drone driven soil sampling is the first product launch between the alliance of A & L and Deveron announced September 12, 2018. Both companies are collaborating to develop several value-added imagery data and mapping products.
Nov. 26 - Third Quarter Results and Provides Update Revenue. Revenue increase of 53% to $267,045 vs $174,873 for nine months ended September 2017; Third quarter revenue increase of 14% to $108,416 vs $94,840 year over year (2017).
Net income growth for the quarter to $98,482 from $31,488 in September 30, 2017 (nine months); Net comprehensive income growth for the quarter to $148,482 from 81,488 year over year (2017). Record cash position of $3.6 Million vs $729,146 on September 30, 2017.
Jan. 3 - Launch Agriculture Data Sales Collaboration between Veritas and South West Agromart. South West serves customers in five counties representing over 2 million acres with over 50 different soil types, on which more than 50 different crops are grown.
Jan. 23 - Launches Products for Crop Breeders and Researchers. The launch includes three product packages for use in corn, canola, soybeans, and cereals. The first includes basic plant health indices for in-season monitoring of yield potential and general changes to crop growth. The second product takes this a step further and estimates canopy coverage which is an important trait in genetics selections. Lastly, a canola flowering analysis estimates the extent of yellow flowers and improves yield predictions from imagery at this critical development stage when traditional plant health indices fail to produce results
Jan. 29 - Signs $3.8 Million Multi-Year Agreement with A & L Laboratories (Starting in 2019). A&L will outsource the physical collection of soil samples to Deveron for the next 5 years. DVR.CN personnel will collect samples as part of a larger portfolio of services offered to farmers in regions across North America.
This agreement will allow A & L to continue offering industry leading soil analysis while allowing Deveron to leverage its network of on-demand data acquisition experts to collect soil samples.
Mar. 11 - Receives AI for Earth Grant from Microsoft Veritas Farm Management ("Veritas") have been awarded an AI for Earth grant from Microsoft to help further our efforts in artificial intelligence ("AI") and making recommendations and predictions using agricultural data.
The proceed will provide DVR.CN with Microsoft Azure resources for utilizing in-season imagery and AI to apply nitrogen fertilizer to corn.
Within five months of the initial strategic alliance with A&L, DVR.CN and A&L launched a "Drone Driven Soil Sampling Solution" for which Deveron was subsequently awarded a multi-year agreement of $3.8M. DVR.CN also reported positive earnings and initiated a collaboration with South West Agromart, as well as, launched three new products: 1) Basic Plant Indices, 2) Canopy Coverage and 3) Canola Flowering Analysis.
However, valuation has remained subdued for the period. A turbulent market at the end of 2018 followed by a recent bounce back in the share price still falls short but recent insider buying by Greencastle Resources was noted ($0.28-0.30 cents).
Overall, the milestone accomplished builds on existing relationship with Climate Corporation (2017), SOAR integration with John Deere, and a fleet and territories expansion (Indiana, Iowa, Illinois and North Dakota) in 2018. As reported earlier, with the acquisition of Veritas, DVR.CN has shifted from a drone driven to a multi-services business model.
The recent deals with A&L and product launches represents a transformation towards specific value added services (i.e. corn, canola, soybeans, cereals) which further enhances its offerings. While the current Canada - Chinese relations are headwinds for the vertical, a strong cash reserve ($3M) positions DVR.CN very well for more headway.

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