Page 1

-- FLYHT INSIGHT ACTION CONTROL FLYHT Reports Third Quarter 2021 Results Return to Revenue Growth in the Quarter at + 65 % Year -- -- Strategic Acquisition Bolsters Competitive Position and Creates Cross - Selling Opportunity -- -- Private Placement and Debt Repayment Enhance Financial Position - Calgary , Alberta - - November 4 , 2021 FLYHT Aerospace Solutions Ltd. ( TSX - V : FLY ) ( OTCQX : FLYLF ) ( the " Company " or " FLYHT ” ) today reported financial results for the third quarter and nine months ended September 30 , 2021 . " Our third quarter financial performance is beginning to reflect the significant efforts we have made to reinvent the business , ” said Bill Tempany , Interim CEO . “ We delivered 65 % revenue growth , the first quarterly growth since 2019 , narrowed our net losses despite a decline in government grant support , and strengthened our balance sheet with an over subscribed private placement and the retirement of our convertible debentures . We also purchased complementary weather sensor technology which is further increasing the value of our offering to airlines . " Continued Mr. Tempany , “ The significant increase in FLYHT's licensing revenues this quarter as well as recent new sales contracts and purchase orders from new and existing customers are positive signs both for FLYHT and the global airline industry . It is clear there is pent up demand for travel , especially domestic travel , and the financial performance of the aviation industry as a whole is expected to improve in 2022 compared to 2021. " Concluded Mr. Tempany , “ FLYHT is well - positioned to emerge from the pandemic as the global aviation leader in Actionable Intelligence . With a sharpened focus on software solutions , leading technology , loyal customers who value the service , a strong leadership team and salesforce , and the financial strength to execute a targeted M & A strategy to scale the offering , we are highly confident that we will be able to leverage our installed customer base of over 80 global airlines to generate profitable growth for the company and value creation for our stakeholders . " Third Quarter 2021 Financial Overview Total revenue increased by 65 % to $ 3,173,331 compared to Q3 2020. Growth was driven by Licensing , which generated over $ 1 million of revenue in Q3 2020 versus minimal a year ago . Additionally , Hardware revenue increased by 314 % to $ 567,356 . Technical Services revenue increased by 117 % to $ 93,911 . SaaS revenue declined 9 % year - over - year to $ 1,507,366 and increased 4 % compared to Q2 2021 . Gross margin increased slightly to 68.2 % of revenue compared to 69.2 % in Q3 2020. The decrease in gross margin was due primarily to changes in the mix of revenue sources during the quarter , as Q3 2021 revenue included a larger contribution from Licensing compared to Q3 2020 , which carries the highest gross margin among revenue sources . Operating expenses increased by 16 % compared to Q3 2020 , largely due to a reduction in government grants which are applied as an offset to reported expenses . A 22 % decrease in Administration expenses was offset by an increase in Distribution expenses of 70 % and an increase in Research and Development and certification engineering expenses of 25 % . 1