Draganfly (DPRO) 20-F4 Apr 222021 FY Annual report (foreign)Financial data

Company Profile

Cover

Cover	12 Months Ended
Cover	Dec. 31, 2021shares
Entity Addresses [Line Items]
Document Type	20-F
Amendment Flag	false
Document Registration Statement	false
Document Annual Report	true
Document Transition Report	false
Document Shell Company Report	false
Document Period End Date	Dec. 31, 2021
Document Fiscal Period Focus	FY
Document Fiscal Year Focus	2021
Current Fiscal Year End Date	--12-31
Entity File Number	001-40688
Entity Registrant Name	Draganfly Inc.
Entity Central Index Key	0001786286
Entity Incorporation, State or Country Code	Z4
Entity Address, Address Line One	2108 St. George Avenue
Entity Address, City or Town	Saskatoon
Entity Address, State or Province	SK
Entity Address, Country	CA
Entity Address, Postal Zip Code	S7M 0K7
Title of 12(b) Security	Common Shares
Trading Symbol	DPRO
Security Exchange Name	NASDAQ
Entity Well-known Seasoned Issuer	No
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Emerging Growth Company	true
Elected Not To Use the Extended Transition Period	false
Document Accounting Standard	International Financial Reporting Standards
Entity Shell Company	false
Entity Bankruptcy Proceedings, Reporting Current	false
Entity Common Stock, Shares Outstanding	33,197,984
Auditor Firm ID	1173
Auditor Name	DALE MATHESON CARR-HILTON LABONTE LLP
Auditor Location	Vancouver, Canada
Business Contact [Member]
Entity Addresses [Line Items]
Entity Address, Address Line One	2108 St. George Avenue
Entity Address, City or Town	Saskatoon
Entity Address, State or Province	SK
Entity Address, Country	CA
Entity Address, Postal Zip Code	S7M 0K7
City Area Code	800
Local Phone Number	979.9794
Contact Personnel Name	Paul Sun
Contact Personnel Email Address	paul.sun@draganfly.com

Consolidated Statements of Fina

Consolidated Statements of Financial Position - CAD ($)	Dec. 31, 2021	Dec. 31, 2020
Current Assets
Cash and cash equivalents	$ 23,075,713	$ 1,982,416
Receivables	1,407,127	810,791
Inventory	3,390,822	1,233,619
Notes receivable	190,170
Prepaids	5,494,877	335,022
Total current assets	33,558,709	4,361,848
Non-current Assets
Goodwill	5,940,409	2,166,563
Equipment	297,043	153,870
Intangible assets	593,901	273,867
Investments	291,066
Notes receivable	964,006
Right of use asset	468,106	144,419
TOTAL ASSETS	42,113,240	7,100,567
Current Liabilities
Trade payables and accrued liabilities	799,139	1,857,177
Customer deposits	172,134	385,449
Deferred income	73,286
Loans payable	6,745	62,978
Derivative liability	5,560,002	748,634
Lease liability	110,481	93,239
Total current liabilities	6,721,787	3,147,477
Non-current Liabilities
Deferred income		5,062
Loans payable	86,572	34,938
Lease liability	378,642	64,885
TOTAL LIABILITIES	7,187,001	3,252,362
SHAREHOLDERS’ EQUITY
Share capital	81,038,365	36,943,304
Reserves – share-based payments	6,406,117	3,024,007
Accumulated deficit	(52,322,182)	(36,119,210)
Accumulated other comprehensive income (loss)	(196,061)	104
TOTAL SHAREHOLDERS’ EQUITY	34,926,239	3,848,205
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY	$ 42,113,240	$ 7,100,567

Consolidated Statements of Comp

Consolidated Statements of Comprehensive Income (Loss) - CAD ($)	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
REVENUE
Revenue from sales of goods	$ 5,103,399	$ 3,087,223	$ 248,939
Revenue from provision of services	1,950,466	1,276,288	1,131,488
TOTAL REVENUE	7,053,865	4,363,511	1,380,427
COST OF SALES	(4,410,777)	(2,603,911)	(218,800)
GROSS PROFIT	2,643,088	1,759,600	1,161,627
OPERATING EXPENSES
Amortization	135,966	43,518	8,386
Depreciation	175,098	109,108	41,250
Director fees	370,094
Insurance	2,962,767	39,988	23,900
Office and miscellaneous	6,455,998	3,387,865	2,103,732
Professional fees	4,445,949	1,762,594	524,101
Research and development	510,895	567,999	16,883
Share-based payments	3,952,595	2,668,464	761,559
Travel	143,904	25,617	30,896
Wages and salaries	2,768,010	1,649,329	989,083
Total operating expenses	(21,921,276)	(10,254,482)	(4,499,790)
OTHER INCOME (EXPENSE)
Change in fair value of derivative liability	8,149,812	(748,634)
Finance and other costs	5,074	(23,117)	(171,905)
Foreign exchange gain (loss)	362,448	(87,104)	5,803
Gain on disposal of assets			28,651
Gain (loss) on settlement of debt		(38,879)	198,976
Gain on forgiveness of debt		127,711
Government income	24,148	51,627
Listing expense			(7,804,859)
Loss on write-off of loan receivable			(13,560)
Loss on write-off of notes receivable	(891,471)
Loss on impairment of goodwill	(4,579,763)
Other income (loss)	4,968	1,197,465
NET LOSS	(16,202,972)	(8,015,813)	(11,095,057)
Items that may be reclassified to profit or loss
Foreign exchange translation	136,475	104
Items that will not be reclassified to profit or loss
Change in fair value of equity investments at FVOCI	(332,640)
COMPREHENSIVE LOSS	$ (16,399,137)	$ (8,015,709)	$ (11,095,057)
Net loss per share
Basic & diluted	$ (0.59)	$ (0.48)	$ (1.16)
Weighted average number of common shares outstanding - basic & diluted	27,647,293	16,558,184	9,529,595

Consolidated Statements of Chan

Consolidated Statements of Changes in Shareholders' Equity - CAD ($)	Issued capital [member]	Capital reserve [member]	Retained earnings [member]	Reserve of gains and losses on financial assets measured at fair value through other comprehensive income [member]	Accumulated other comprehensive income [member]	Total
Balance at Dec. 31, 2018	$ 12,561,342	$ 882,180	$ (17,576,131)			$ (4,132,609)
Beginning balance, shares at Dec. 31, 2018	7,869,384
IfrsStatementLineItems [Line Items]
Shares issued for settlement of notes payable	$ 645,775					645,775
Shares issued for settlement of notes payable, shares	258,310
Shares issued as transactions fees	$ 1,000,000					1,000,000
Shares issued as transactions fees, shares	400,000
Recapitalization of Draganfly Inc.	$ 5,250,001	1,645,193				6,895,194
Recapitalization of Draganfly Inc., shares	2,100,000
Shares issued of settlement of trades payable	$ 22,662					$ 22,662
Shares issued of settlement of trades payable, shares	9,065					9,065
Shares issued for settlement of convertible debentures and accrued interest	$ 1,059,246					$ 1,059,246
Shares issued for settlement of convertible debentures and accrued interest, shares	423,698					423,698
Shares issued for exercise of warrants	$ 221,741	(212,908)				$ 8,833
Shares issued for exercise of warrants, shares	63,388
Reclassification of unexercised conversion feature		(567,791)	567,791
Shares and warrants issued on private placement	$ 7,025,750					7,025,750
Shares and warrants issued on private placement, shares	2,810,300
Stock-based compensation		761,559				761,559
Net loss			(11,095,057)			(11,095,057)
Translation of foreign operations
Balance at Dec. 31, 2019	$ 27,786,517	2,508,233	(28,103,397)			2,191,353
Beginning balance, shares at Dec. 31, 2019	13,934,145
IfrsStatementLineItems [Line Items]
Shares issued for exercise of warrants	$ 4,007,130	(1,645,193)				2,361,937
Shares issued for exercise of warrants, shares	1,584,775
Net loss			(8,015,813)			(8,015,813)
Shares issued for acquisition	$ 2,178,961					2,178,961
Beginning balance, shares	645,088
Shares issued as finder’s fees	$ 100,000					100,000
Shares issued as finder's fees, shares	40,000
Shares issued for debt settlement	$ 344,354					344,354
Shares issued for debt settlement, shares	111,082
Shares issued for financing	$ 2,018,845					2,018,845
Shares issued for financing, shares	703,607
Shares issued for exercise of RSUs	$ 507,497	(507,497)
Beginning balance, shares	199,998
Share-based payments		2,668,464				2,668,464
Translation of foreign operations					104	104
Balance at Dec. 31, 2020	$ 36,943,304	3,024,007	(36,119,210)		104	3,848,205
Beginning balance, shares at Dec. 31, 2020	17,218,695
IfrsStatementLineItems [Line Items]
Net loss			(16,202,972)			(16,202,972)
Shares issued for acquisition	$ 2,303,999	1,241,250				3,545,249
Beginning balance, shares	1,200,000
Shares issued for financing	$ 36,092,187					36,092,187
Shares issued for financing, shares	11,584,657
Shares issued for exercise of RSUs	$ 1,752,052	(1,752,052)
Beginning balance, shares	448,660
Share-based payments		3,952,595				3,952,595
Translation of foreign operations					136,475	136,475
Share issue costs	(4,678,821)	864,060				(3,814,761)
Shares issued for exercise of warrants	$ 4,929,790					4,929,790
Shares isued for exercise of warrants, shares	1,939,534
Shares issued for exercise of stock options	$ 1,937,866	(923,743)				1,014,123
Beginning balance, shares	405,499
Shares issued in lieu of cash	$ 1,757,988					1,757,988
Beginning balance, shares	371,901
Change in fair value of equity investments at FVOCI				(332,640)		(332,640)
Balance at Dec. 31, 2021	$ 81,038,365	$ 6,406,117	$ (52,322,182)	$ (332,640)	$ 136,579	$ 34,926,239
Beginning balance, shares at Dec. 31, 2021	33,168,946

Consolidated Statements of Cash

Consolidated Statements of Cash Flows - CAD ($)	12 Months Ended
Consolidated Statements of Cash Flows - CAD ($)	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
OPERATING ACTIVITIES
Net loss	$ (16,202,972)	$ (8,015,813)	$ (11,095,057)
Adjustments for:
Amortization	135,966	43,518	8,386
Depreciation	175,098	109,108	41,250
Change in fair value of derivative liability	(8,149,812)	748,634
Impairment of notes receivable	891,471
Impairment of goodwill	4,579,763
Finance and other costs	(926)	23,117	171,905
Gain on settlement of debt		38,879	(198,976)
Gain on forgiveness of debt		(127,711)
Gain on disposal of assets			(28,651)
Income from government assistance	(24,148)	(21,090)
Expense of non-financial asset			15,389
Listing expense			7,804,859
Shares Issued as acquisition cost		100,000
Share-based payments	3,952,595	2,568,464	761,559
Adjustment for profit loss	(14,642,965)	(4,532,894)	(2,519,336)
Net changes in non-cash working capital items:
Receivables	(596,336)	(1,481,944)	(126,799)
Inventory	(2,157,203)	(555,371)	12,622
Prepaids	(3,401,868)	31,605	(249,325)
Trade payables and accrued liabilities	(1,044,133)	1,261,066	(1,005,121)
Customer deposits	(213,315)	139,490
Deferred income	51,186	5,062
Funds used in operating activities	(22,004,634)	(5,132,986)	(3,887,959)
INVESTING ACTIVITIES
Cash paid for acquisition, net of cash received	(466,643)	(457,407)	28,538
Purchase of equipment	(212,579)	(23,888)	(87,785)
Disposal of equipment			31,500
Purchase of investments	(623,706)
Issuance of notes receivable	(2,002,678)
Proceeds from sales of investments		997,714
Funds provided by (used in) investing activities	(3,305,606)	516,419	(27,747)
FINANCING ACTIVITIES
Proceeds from issuance of common shares for financing	44,255,651	2,018,845	6,534,583
Share issue costs	(3,814,762)
Proceeds from issuance of common shares for warrants exercised	4,929,790	2,361,937
Proceeds from issuance of common shares for stock options exercised	1,014,123
Proceeds from issuance of loans	60,000	129,310
Loans repayments	(4,319)	(5,062)
Proceeds from issuance of notes payable		123,000	1,137,978
Repayment of convertible debentures			(486,131)
Repayment of notes payable		(183,000)	(882,770)
Repayment of loans	(44,428)	(192,084)
Repayment of lease liability	(128,996)	(83,442)	(38,000)
Funds provided by financing activities	46,267,059	4,169,504	6,265,660
Effects of exchange rate changes on cash	136,478	104	(22,366)
Change in cash	20,956,819	(447,063)	2,349,954
Cash, beginning of year	1,982,416	2,429,375	101,787
Cash, end of year	23,075,713	1,982,416	2,429,375
Cash and cash equivalents consist of the following:
Cash held in banks	22,729,212	1,839,871	2,429,375
Guaranteed investment certificate	346,501	142,545
Cash and cash equivalents	$ 23,075,713	$ 1,982,416	$ 2,429,375

NATURE AND CONTINUANCE OF OPERA

NATURE AND CONTINUANCE OF OPERATIONS	12 Months Ended
NATURE AND CONTINUANCE OF OPERATIONS	Dec. 31, 2021
Nature And Continuance Of Operations
NATURE AND CONTINUANCE OF OPERATIONS	1. NATURE AND CONTINUANCE OF OPERATIONS Draganfly Inc. (the “Company”) was incorporated on June 1, 2018 under the Business Corporations Act (British Columbia). The Company’s shares trade on the Canadian Securities Exchange (the “CSE”),” on the Nasdaq Capital Market (the “Nasdaq”) under the symbol “DPRO” and on the Frankfurt Stock Exchange under the symbol “3U8”. The Company’s head office is located at 2108 St. George Avenue, Saskatoon, SK, S7M 0K7 and its registered office is located at 2800 – 666 Burrard Street, Vancouver, BC, V6C 2Z7. COVID-19 The outbreak of the coronavirus, also known as “COVID-19,” spread across the globe and is ‎impacting worldwide economic activity. Government authorities have implemented emergency ‎measures to mitigate the spread of the virus. These measures, which include the ‎implementation of travel bans, self-imposed quarantine periods, and social distancing, have ‎caused material disruption to business globally. ‎Governments and central banks reacted with significant monetary and fiscal interventions ‎designed to stabilize economic conditions.‎ ‎ ‎ The Company will continue to monitor the impact of the COVID-19 pandemic, the duration and ‎impact of which is unknown at this time which may include further disruptions to global supply chains and the manufacturing and delivery of parts that the Company relies on for its products. Although it is not possible to reliably estimate the length and ‎severity of these developments and the impact on the financial results and condition of the ‎Company and its operations in future periods, such impacts are not expected to be ‎significant going forward. Aside from the acquisition of Dronelogics and being opportunistic ‎on ‎other partnerships or acquisitions, the Company has expanded its products and services offered ‎to include ‎health and telehealth applications relating to COVID-19, as a way to mitigate the ‎effects of COVID-19. Share consolidation During the year ended December 31, 2021 in conjunction with its Regulation A financing, the Company underwent a share consolidation at a 5-1 ratio. All reference to share, per share amounts, warrants, RSU’s and stock options in these financial statements have been retroactively restated to reflect the consolidation.

BASIS OF PREPARATION

BASIS OF PREPARATION	12 Months Ended
BASIS OF PREPARATION	Dec. 31, 2021
BASIS OF PREPARATION	2. BASIS OF PREPARATION Statement of Compliance These consolidated financial statements have been prepared in accordance with International Financial Reporting Standards (“IFRS”) as issued by the International Accounting Standards Board (“IASB”) and interpretations issued by the International Reporting Interpretation Committee (“IFRIC”). The principal accounting policies applied in the preparation of these consolidated financial statements are set out below. These policies have been consistently applied to all years presented, unless otherwise stated. These consolidated financial statements were authorized for issue by the Board of Directors on April 3, 2022. Basis of consolidation Each subsidiary is fully consolidated from the date of acquisition, being the date on which the Company obtains control, and continue to be consolidated until the date when such control ceases. The consolidated financial statements include the accounts and results of operations of the Company and its wholly owned subsidiaries listed in the following table: SCHEDULE OF RESULTS OF OPERATIONS Name of Subsidiary Place of Incorporation Ownership Interest Draganfly Innovations Inc. Canada 100% Draganfly Innovations USA, Inc. US 100% Dronelogics Systems Inc. Canada 100% All intercompany balances and transactions were eliminated on consolidation. Significant estimates and assumptions The preparation of financial statements in accordance with IFRS requires the Company to use judgment in applying its accounting policies and make estimates and assumptions about reported amounts at the date of the consolidated financial statements and in the future. The Company’s management reviews these estimates and underlying assumptions on an ongoing basis, based on experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. Revisions to estimates are adjusted for prospectively in the period in which the estimates are revised. Impairment of Non-financial assets The CGU’s recoverable amount is evaluated using the higher of the value in use and fair value less costs to sell calculations. In calculating the recoverable amount, the Company utilizes discounted cash flow techniques. Management calculates the discounted cash flows based upon its best estimate of a number of economic, operating, engineering, environmental, political and social assumptions. Any changes in the assumptions due to changing circumstances may affect the calculation of the recoverable amount. Share-based payments The cost of share-based payment transactions with directors, officers and employees are measured by reference to the fair value of the equity instruments. Estimating fair value for share-based payment transactions requires determining the most appropriate valuation model, which is dependent on the terms and conditions of the grant. This estimate also requires determining and making assumptions about the most appropriate inputs to the valuation model including the expected life, volatility, risk-free interest rate, expected forfeiture rate and dividend yield of the stock option. Draganfly Inc. Notes to the Consolidated Financial Statements For The Year Ended December 31, 2021 Expressed in Canadian Dollars 2. SIGNIFICANT ACCOUNTING POLICIES AND BASIS OF PREPARATION (CONT’D Income taxes Provisions for income taxes are made using the best estimate of the amount expected to be paid based on a qualitative assessment of all relevant factors. The Company reviews the adequacy of these income tax provisions at the end of each reporting period. However, it is possible that at some future date an additional liability could result from audits by tax authorities. Where the final outcome of these tax-related matters is different from the amounts that were initially recorded, such differences will affect the tax provisions in the period in which such determination is made. Deferred tax assets are recognized when it is determined that the company is likely to recognize their recovery from the generation of taxable income. Inventory Inventory is valued at the lower of cost and net realizable value. Net realizable value is determined with reference to the estimated selling price. The Company estimates selling price based upon assumptions about future demand and current and anticipated retail market conditions. The future realization of these inventories may be affected by future technology or other market-driven changes that may reduce future selling prices. Contingencies The assessment of contingencies involves the exercise of significant judgment and estimates of the outcome of future events. In assessing loss contingencies related to legal proceedings that are pending against the Company and that may result in regulatory or government actions that may negatively impact the Company’s business or operations, the Company and its legal counsel evaluate the perceived merits of the legal proceeding or unasserted claim or action as well as the perceived merits of the nature and amount of relief sought or expected to be sought, when determining the amount, if any, to recognize as a contingent liability or when assessing the impact on the carrying value of the Company’s assets. Contingent assets are not recognized in the consolidated financial statements. Useful lives of equipment and intangible assets Estimates of the useful lives of equipment and intangible assets are based on the period over which the assets are expected to be available for use. The estimated useful lives are reviewed annually and are updated if expectations differ from previous estimates due to physical wear and tear, technical or commercial obsolescence, and legal or other limits on the use of the relevant assets. In addition, the estimation of the useful lives of the relevant assets may be based on internal technical evaluation and experience with similar assets. It is possible, however, that future results of operations could be materially affected by changes in the estimates brought about by changes in the factors mentioned above. The amounts and timing of recorded expenses for any period would be affected by changes in these factors and circumstances. A reduction in the estimated useful lives of the equipment would increase the recorded expenses and decrease the non-current assets. Significant judgments The preparation of consolidated financial statements in accordance with IFRS requires the Company to make judgments, apart from those involving estimates, in applying accounting policies. The most significant judgments in applying the Company’s consolidated financial statements include: Business combinations The definition of whether a set of assets acquired and liabilities assumed constitute a business may require the company to make certain judgements taking into account all facts and circumstances. A business is presumed to be an integrated set of activities and assets capable of being conducted and managed for the purpose of providing a return in the form of dividends, lower costs, or economic benefits. Draganfly Inc. Notes to the Consolidated Financial Statements For The Year Ended December 31, 2021 Expressed in Canadian Dollars 2. SIGNIFICANT ACCOUNTING POLICIES AND BASIS OF PREPARATION (CONT’D Business combination versus asset acquisition The Company considered the applicability of IFRS 3 – Business Combinations (“IFRS 3”) with respect to the Acquisitions (Notes 3, 4, and 5). IFRS 3 defines a business as having a system where inputs enter a process to produce outputs. The Company has determined that the acquisition of Dronelogics Systems Inc. and Vital Intelligence Inc. are business combinations and, accordingly, have accounted for as such. Other significant judgments − The assessment of the Company’s ability to continue as a going concern and whether there are events or conditions that may give rise to significant uncertainty; − the classification of financial instruments; − the assessment of revenue recognition using the five-step approach under IFRS 15 and the collectability of amounts receivable; − the determination of whether a set of assets acquired and liabilities assumed constitute a business; and − the determination of the functional currency of the company. Foreign currency translation Transactions in foreign currencies are translated into Canadian dollars at rates of exchange at the time of such transactions. Monetary assets and liabilities are translated at the reporting period rate of exchange. Non-monetary assets and liabilities are translated at historical exchange rates. Revenue and expenses denominated in a foreign currency are translated at the monthly average exchange rate. Gains and losses resulting from the translation adjustments are included in income. The functional currencies for the parent company and each subsidiary are as follows: Draganfly Inc. Canadian Dollar Draganfly Innovations Inc. Canadian Dollar Draganfly Innovations USA, Inc. US Dollar Dronelogics Systems Inc. Canadian Dollar Financial statements of subsidiaries for which the functional currency is not the Canadian dollar are translated into Canadian dollars as follows: all asset and liability accounts are translated at the year-end exchange rate and all earnings and expense accounts and cash flow statement items are translated at average exchange rates for the year. The resulting translation gains and losses are recorded as exchange differences on translating foreign operations in other comprehensive income. Share-based payments The Company operates a stock option plan. Share-based payments to employees are measured at the fair value of the instruments issued and amortized over the vesting periods. Share-based payments to non-employees are measured at the fair value of goods or services received or the fair value of the equity instruments issued, if it is determined the fair value of the goods or services cannot be reliably measured, and are recorded at the date the goods or services are received. The corresponding amount is recorded to the option reserve. The fair value of options is determined using a Black–Scholes Option Pricing Model. The number of shares and options expected to vest is reviewed and adjusted at the end of each reporting period such that the amount recognized for services received as consideration for the equity instruments granted shall be based on the number of equity instruments that eventually vest. Amounts recorded for forfeited or expired unexercised options are transferred to deficit in the year of forfeiture or expiry. Amounts recorded for forfeited unvested options are reversed in the period the forfeiture occurs. Share-based payment expense relating to cash-settled awards, including restricted share units is accrued over the vesting period of the units based on the quoted market value of Company’s common shares. As these awards will be settled in cash, the expense and liability are adjusted each reporting period for changes in the underlying share price. Restricted Share Units The restricted share units (“RSUs”) entitle employees, directors, or officers to cash payments payable upon vesting based on vesting terms determined by the Company’s Board of Directors at the time of the grant. RSUs are measured at the fair value of awards on the grant date using the prior days closing price. Amounts recorded for forfeited unvested RSUs are reversed in the period the forfeiture occurs. The expense is recognized on a graded vesting basis over the vesting period, with a corresponding charge to profit or loss. Loss per share Basic loss per share is calculated by dividing the loss attributable to common shareholders by the weighted average number of common shares outstanding in the period. For all periods presented, the loss attributable to common shareholders equals the reported loss attributable to owners of the Company. Diluted income per share is calculated by the treasury stock method. Under the treasury stock method, the weighted average number of common shares outstanding for the calculation of diluted loss per share assumes that the proceeds to be received on the exercise of dilutive share options and warrants are used to repurchase common shares at the average market price during the period. For the periods presented, the Company incurred a loss and therefore basic loss per share equals diluted loss per share. a) Financial assets Classification and measurement The Company classifies its financial assets in the following categories: at fair value through profit or loss (“FVTPL”), at fair value through other comprehensive income (“FVTOCI”) or at amortized cost. The classification depends on the purpose for which the financial assets were acquired. Management determines the classification of its financial assets at initial recognition. Draganfly Inc. Notes to the Consolidated Financial Statements For The Year Ended December 31, 2021 Expressed in Canadian Dollars 2. SIGNIFICANT ACCOUNTING POLICIES AND BASIS OF PREPARATION (CONT’D The classification of debt instruments is driven by the business model for managing the financial assets and their contractual cash flow characteristics. Debt instruments are measured at amortized cost if the business model is to hold the instrument for collection of contractual cash flows and those cash flows are solely principal and interest. If the business model is not to hold the debt instrument, it is classified as FVTPL. Financial assets with embedded derivatives are considered in their entirety when determining whether their cash flows are solely payments of principal and interest. Equity instruments that are held for trading (including all equity derivative instruments) are classified as FVTPL, for other equity instruments, on the day of acquisition the Company can make an irrevocable election (on an instrument by-instrument basis) to designate them as at FVTOCI. Financial assets at FVTPL Financial assets carried at FVTPL are initially recorded at fair value and transaction costs are expensed in the income statement. Realized and unrealized gains and losses arising from changes in the fair value of the financial asset held at FVTPL are included in the income statement in the period in which they arise. Derivatives are also categorized as FVTPL unless they are designated as hedges. Financial assets at FVTOCI Investments in equity instruments at FVTOCI are initially recognized at fair value plus transaction costs. Subsequently they are measured at fair value, with gains and losses arising from changes in fair value recognized in other comprehensive income. There is no subsequent reclassification of fair value gains and losses to profit or loss following the derecognition of the investment. Financial assets at amortized cost Financial assets at amortized cost are initially recognized at fair value and subsequently carried at amortized cost less any impairment. They are classified as current assets or non-current assets based on their maturity date. Impairment of financial assets at amortized cost The Company recognizes a loss allowance for expected credit losses on financial assets that are measured at amortized cost. At each reporting date, the loss allowance for the financial asset is measured at an amount equal to the lifetime expected credit losses if the credit risk on the financial asset has increased significantly since initial recognition. If at the reporting date, the financial asset has not increased significantly since initial recognition, the loss allowance is measured for the financial asset at an amount equal to twelve month expected credit losses. For trade receivables the Company applies the simplified approach to providing for expected credit losses, which allows the use of a lifetime expected loss provision. Impairment losses on financial assets carried at amortized cost are reversed in subsequent periods if the amount of the loss decreases and the decrease can be objectively related to an event occurring after the impairment was recognized. Derecognition of financial assets Financial assets are derecognized when they mature or are sold, and substantially all the risks and rewards of ownership have been transferred. Gains and losses on derecognition of financial assets classified as FVTPL or amortized cost are recognized in the income statement. Gains or losses on financial assets classified as FVTOCI remain within accumulated other comprehensive income. Draganfly Inc. Notes to the Consolidated Financial Statements For The Year Ended December 31, 2021 Expressed in Canadian Dollars 2. SIGNIFICANT ACCOUNTING POLICIES AND BASIS OF PREPARATION (CONT’D b) Financial liabilities The Company classifies its financial liabilities into one of two categories as follows: Fair value through profit or loss (FVTPL) - This category comprises derivatives and financial liabilities incurred principally for the purpose of selling or repurchasing in the near term. They are carried at fair value with changes in fair value recognized in profit or loss. Other financial liabilities - This category consists of liabilities carried at amortized cost using the effective interest method. Trade payables, customer deposits and loans are included in this category. The Company derecognizes a financial liability when its contractual obligations are discharged, cancelled or expire. Derecognition of financial liabilities Financial liabilities are derecognized when its contractual obligations are discharged, cancelled, or expire. The Company also derecognizes a financial liability when the terms of the liability are modified such that the terms and/or cash flows of the modified instrument are substantially different, in which case a new financial liability based on the modified terms is recognized at fair value. Gains and losses on derecognition are generally recognized in profit or loss. Draganfly Inc. Notes to the Consolidated Financial Statements For The Year Ended December 31, 2021 Expressed in Canadian Dollars 2. SIGNIFICANT ACCOUNTING POLICIES AND BASIS OF PREPARATION (CONT’D) Impairment of non-financial assets The carrying amounts of the Company’s non-financial assets are reviewed at each reporting date to determine whether there is any indication of impairment. If indicators exist, then the asset’s recoverable amount is estimated. The recoverable amounts of the following types of intangible assets are measured annually, whether or not there is any indication that it may be impaired: ● an intangible asset with an indefinite useful life; ● an intangible asset not yet available for use; and ● goodwill recognized in a business combination. The recoverable amount of an asset or cash-generating unit (“CGU”) is the greater of its value in use and its fair value less costs to sell. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset. For the purpose of impairment testing, assets that cannot be tested individually are grouped together into the smallest identifiable group of assets that generates cash inflows from continuing use that are largely independent of the cash inflows of other assets or groups of assets. If there is an indication that a corporate asset may be impaired, then the recoverable amount is determined for the CGU to which the corporate asset belongs. An impairment loss is recognized if the carrying amount of an asset or its CGU exceeds its estimated recoverable amount. Impairment losses are recognized in the statement of comprehensive loss. Impairment losses recognized in respect of CGUs are allocated first to reduce the carrying amount of any goodwill allocated to the units, and then to reduce the carrying amounts of the other assets in the unit (group of units) on a pro rata basis. In respect of assets other than goodwill and intangible assets that have indefinite useful lives, impairment losses recognized in prior periods are assessed at each reporting date for any indications that the loss has decreased or no longer exists. An impairment loss is reversed in a subsequent period when there has been an increase in the recoverable amount of a previously impaired asset or CGU. An impairment loss is reversed only to the extent that the asset’s carrying amount does not exceed the carrying amount that would have been determined, net of depreciation or amortization, if no impairment loss had been recognized. Income taxes Current income tax: Current income tax assets and liabilities for the current period are measured at the amount expected to be recovered from or paid to the taxation authorities. The tax rates and tax laws used to compute the amount are those that are enacted or substantively enacted, at the reporting date, in the countries where the Company operates and generates taxable income. Current income tax relating to items recognized directly in other comprehensive income or equity is recognized in other comprehensive income or equity and not in profit or loss. Management periodically evaluates positions taken in the tax returns with respect to situations in which applicable tax regulations are subject to interpretation and establishes provisions where appropriate. Deferred income tax: Deferred income tax is recognized, using the asset and liability method, on temporary differences at the reporting date arising between the tax bases of assets and liabilities and their carrying amounts for financial reporting. The carrying amount of deferred income tax assets is reviewed at the end of each reporting period and recognized only to the extent that it is probable that sufficient taxable profit will be available to allow all or part of the deferred income tax asset to be utilized. Deferred income tax assets and liabilities are measured at the tax rates that are expected to apply to the year when the asset is realized or the liability is settled, based on tax rates (and tax laws) that have been enacted or substantively enacted by the end of the reporting period. Deferred income tax assets and deferred income tax liabilities are offset, if a legally enforceable right exists to set off current tax assets against current income tax liabilities and the deferred income taxes relate to the same taxable entity and the same taxation authority. Draganfly Inc. Notes to the Consolidated Financial Statements For The Year Ended December 31, 2021 Expressed in Canadian Dollars 2. SIGNIFICANT ACCOUNTING POLICIES AND BASIS OF PREPARATION (CONT’D Inventory Inventory consists of raw materials for manufacturing of multi-rotor helicopters, industrial areal video systems, civilian small unmanned aerial systems or vehicles, health monitoring equipment, and wireless video systems. Inventory is initially valued at cost and subsequently at the lower of cost and net realizable value. Net realizable value is determined as the estimated selling price in the ordinary course of business less the estimated costs of completion and the estimated costs necessary to make the sale. Cost is determined using the weighted average cost basis. The Company reviews inventory for obsolete and slow-moving goods and any such inventory is written-down to net realizable value. Revenue recognition Revenue comprises the fair value of consideration received or receivable for the sale of goods and consulting services in the ordinary course of the Company’s business. Revenue is shown net of return allowances and discounts. Sales of goods The Company manufactures and sells a range of multi-rotor helicopters, industrial aerial video systems, and civilian small unmanned aerial systems or vehicles. Sales are recognized at a point-in-time when control of the products has transferred, being when the products are delivered to the customer and there is no unfulfilled obligation that could affect the customer’s acceptance of the products. Delivery occurs when the products have been shipped to the specific location or picked up by the customer, the risks of obsolescence and loss have been transferred to the customer. Revenue from these sales is recognized based on the price specified in the contract, net of the estimated discounts and returns. Accumulated experience is used to estimate and provide for the discounts and returns, using the expected value method, and revenue is only recognized to the extent that it is highly probable that a significant reversal will not occur. To date, returns have not been significant. No element of financing is deemed present as the sales are made with a credit term of 30 days, which is consistent with market practice. Some contracts include multiple deliverables, such as the manufacturing of hardware and support. Support is performed by another party and does not include an integration service. It is therefore accounted for as a separate performance obligation. In this case, the transaction price will be allocated to each performance obligation based on the stand-alone selling prices. Where these are not directly observable, they are estimated based on expect cost plus margin. A receivable is recognized when the goods are delivered as this is the point in time that the consideration is unconditional because only the passage of time is required before the payment is due. Services The Company provides consulting, custom engineering, drones as a service, and investigating and solving on a project-by-project basis under fixed-price and variable price contracts. Revenue from providing services is recognized in the accounting period in which the services are rendered. For fixed-price contracts, revenue is recognized based on the actual service provided to the end of the reporting period as a proportion of the total services to be provided. This is determined based on the actual labour hours spend relative to the total expected labour hours. If contracts include the manufacturing of hardware, revenue for the hardware is recognized at a point in time when the hardware is delivered, the legal title has passed and the customer has accepted the hardware. Estimates of revenues, costs or extent of progress toward completion are revised if circumstances change. Any resulting increases or decreases in estimated revenues or costs are reflected in profit or loss in the period in which the circumstances that give rise to the revision become known by management. Draganfly Inc. Notes to the Consolidated Financial Statements For The Year Ended December 31, 2021 Expressed in Canadian Dollars 2. SIGNIFICANT ACCOUNTING POLICIES AND BASIS OF PREPARATION (CONT’D In case of fixed-price contracts, the customer pays the fixed amount based on a payment schedule. If the services rendered by the Company exceed the payment, a contract asset is recognized. If the payments exceed the services rendered, a contract liability is recognized. If the contract includes an hourly fee, revenue is recognized in the amount to which the Company has a right to invoice. Customers are invoiced on a monthly basis and consideration is payable when invoiced. Cost of Goods Sold Cost of sales includes the expenses incurred to acquire and produce inventory for sale, including product costs, freight costs, as well as provisions for reserves related to product shrinkage, excess or obsolete inventory, or lower of cost and net realizable value adjustments as required. Intangible Assets and Goodwill An intangible asset is an identifiable asset without physical substance. An asset is identifiable if it is separable, or arises from contractual or legal rights, regardless of whether those rights are transferrable or separable from the Company or from other rights and obligations. Intangible assets include intellectual property, which consists of patent and trademark applications. Intangible assets acquired externally are measured at cost less accumulated amortization and impairment losses. The cost of a group of intangible assets acquired is allocated to the individual intangible assets based on their relative fair values. The cost of intangible assets acquired externally comprises its purchase price and any directly attributable cost of preparing the asset for its intended use. Research and development costs incurred subsequent to the acquisition of externally acquired intangible assets and on internally generated intangible assets are accounted for as research and development costs. Intangible assets with finite useful lives are amortized on a straight line basis over the expected life of each intellectual property to write off the cost of the assets from the date they are available for use. Goodwill represents the excess of the value of the consideration transferred over the fair value of the net identifiable assets and liabilities acquired in a business combination. Goodwill is allocated to the cash generating unit to which it relates. Equipment Equipment is stated at historical cost less accumulated depreciation and accumulated impairment losses. Subsequent costs are included in the asset’s carrying amount or recognized as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the item will flow to the Company and the cost of the item can be measured reliably. The carrying amount of the replaced part is derecognized. All other repairs and maintenance are charged to the statement of comprehensive loss during the financial period in which they are incurred. Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognized in the statement of comprehensive loss. Depreciation is generally calculated on a declining balance method to write off the cost of the assets to their residual values over their estimated useful lives. Depreciation for leasehold improvements is fully expensed over the expected term of the lease. The depreciation rates applicable to each category of equipment are as follows: Draganfly Inc. Notes to the Consolidated Financial Statements For The Year Ended December 31, 2021 Expressed in Canadian Dollars 2. SIGNIFICANT ACCOUNTING POLICIES AND BASIS OF PREPARATION (CONT’D) SCHEDULE OF CLASS OF EQUIPMENT Class of equipment Depreciation rate Computer equipment 30% Furniture and equipment 20% Leasehold improvements Over expected life of lease Software 30% Vehicles 30% Research and development expenditures Expenditures on research are expensed as incurred. Research activities include formulation, design, evaluation and final selection of possible alternatives, products, processes, systems or services. Development expenditures are expensed as incurred unless the Company can demonstrate all of the following: (i) the technical feasibility of completing the intangible asset so that it will be available for use or sale; (ii) its intention to complete the intangible asset and use or sell it; (iii) its ability to use or sell the intangible asset; (iv) how the intangible asset will generate probable future economic benefits. Among other things, the Company can demonstrate the existence of a market for the output of the intangible asset or the intangible asset itself or, if it is to be used internally, the usefulness of the intangible asset; (v) the availability of adequate technical, financial and other resources to complete the development and to use or sell the intangible asset; and (vi) its ability to measure reliably the expenditure attributable to the intangible asset during its development. Government Assistance Government grants are recognized when there is reasonable assurance that the grant will be received and all attached conditions will be complied with. When the grant relates to an expense item, it is recognized as income on a systematic basis over the period that the related costs, for which it is intended to compensate, are expensed. When the grant relates to an asset, the cost of the asset is reduced by the amount of the grant and the grant is recognized as income in equal amounts over the expected useful life of the asset. SR&ED Investment tax credits The Company claims federal investment tax credits as a result of incurring scientific research and experimental development (“SR&ED”) expenditures. Federal investment tax credits are recognized when the related expenditures are incurred and there is reasonable assurance of their realization. Federal investment tax credits are accounted for as a reduction of research and development expense for items of a period expense nature or as a reduction of property and equipment for items of a capital nature. Management has made a number of estimates and assumptions in determining the expenditures elig

DRONELOGICS ACQUISITION

DRONELOGICS ACQUISITION	12 Months Ended
DRONELOGICS ACQUISITION	Dec. 31, 2021
DRONELOGICS ACQUISITION	3. DRONELOGICS ACQUISITION On April 30, 2020, the Company acquired all of the issued and outstanding shares of Dronelogics Systems Inc. (“Dronelogics”), excluding the cinematography division, 500,000 645,088 In connection with the Transaction, the Company paid fees of $ 160,000 100,000 40,000 2.50 60,000 89,000 14,000 70,000 75,000 The purchase price allocation (“PPA”) is as follows: SCHEDULE OF PURCHASE PRICE ALLOCATION Number of shares of Draganfly Inc. 645,088 Fair value of common shares $ 4.15 Fair value of shares of Draganfly Inc. $ 2,178,960 Cash portion of purchase price 500,000 Total $ 2,678,960 Draganfly Inc. Notes to the Consolidated Financial Statements For The Year Ended December 31, 2021 Expressed in Canadian Dollars 3. DRONELOGICS ACQUISITION (CONT’D) Tangible assets acquired Cash $ 42,593 Accounts receivable 98,852 Inventory 629,684 Prepaids and deposits 93,997 Other current assets 3,014 Capital assets 54,946 Right-of-use assets 83,428 Accounts payable and accrued liabilities (222,766 ) Customer deposits (245,959 ) Loans (245,752 ) Other current liabilities (8,437 ) Lease liabilities (87,203 ) Total tangible assets acquired 196,397 Identifiable intangible assets Customer relationships 197,000 Website 119,000 Total identifiable intangible assets 316,000 Goodwill 2,166,563 Total consideration $ 2,678,960 The Company estimated the fair value as follows: ● Customer relationships based on an income approach, specifically multi-period excess earnings method, by identifying key customers, applying attribution rate of 15 18 ● Website based on an income approach, specifically relief from royalty methodology, using a reasonable royalty rate of 0.5 17 Furthermore, the excess of the consideration paid over the fair value of the identifiable assets (liabilities) acquired was recognized as goodwill, which primarily consisted of the assembled workforce. From the date of the acquisition to December 31, 2020, the acquired business contributed $ 4,086,350 of revenue and a net income of $ 434,528 . Draganfly Inc. Notes to the Consolidated Financial Statements For The Year Ended December 31, 2021 Expressed in Canadian Dollars

VITAL INTELLIGENCE ACQUISITION

VITAL INTELLIGENCE ACQUISITION	12 Months Ended
VITAL INTELLIGENCE ACQUISITION	Dec. 31, 2021
Vital Intelligence Acquisition
VITAL INTELLIGENCE ACQUISITION	4. VITAL INTELLIGENCE ACQUISITION On March 25, 2021, the Company acquired the assets of Vital Intelligence Inc. (“Vital”), a company that had developed a health/telehealth platform that could detect a number of key underlying respiratory symptoms. The Company acquired it to diversify its existing product line as well as recognized opportunities that an initial focus on COVID-19 screening set of technologies would most likely lead to other facets within the healthcare field creating revenue growth from a new vertical, for consideration of: (a) a cash payment of $ 500,000 and (b) ‎ 1,200,000 units of the Company with each unit being comprised of one common share and one warrant (the “Acquisition”). Each warrant will entitle the holder to acquire one common share for a period of 24 ‎months following closing for $ 13.35 one year 300,000 The units were issued on March 22, 2021 . On August 19, 2021 the parties agreed to reduce the final payment from $ 250,000 to $ 227,984 due to certain assets listed in the purchase agreement had not been delivered by Vital. The units of the Company are to be releasable from escrow in accordance with the terms and conditions of the agreement, as follows: a) 300,000 b) 300,000 2,000,000 c) 300,000 4,000,000 d) 300,000 6,000,000 Upon acquisition, the 900,000 ● A weighted average probability of achieving the milestones necessary to release the shares held in escrow, and ● Discounted due to the lack of liquidity. On acquisition, the fair value of the derivative liability (note 20) was $ 4,797,717 . At December 31, 2021, the liability was revalued based upon new weighted average probabilities of achieving the revenue milestones. As a result, the fair value was adjusted to $ 694,230 , with the difference flowing through the consolidated statement of loss. SCHEDULE OF CONTINGENT CONSIDERATION Contingent consideration Fair value of contingent consideration $ 4,797,717 Change in fair value of contingent consideration (4,103,487 ) Contingent consideration at December 31, 2021 (note 20) $ 694,230 The PPA is as follows: SCHEDULE OF PURCHASE PRICE ALLOCATION FOR VITAL INTELLIGENCE Number of units of Draganfly Inc. 578,248 Fair value of units $ 14.43 Fair value of units of Draganfly Inc. $ 8,342,966 Cash portion of purchase price 466,643 Total $ 8,809,609 Identifiable intangible assets Brand $ 23,000 Software 433,000 456,000 Goodwill 8,353,609 Total consideration $ 8,809,609 Draganfly Inc. Notes to the Consolidated Financial Statements For The Year Ended December 31, 2021 Expressed in Canadian Dollars 4. VITAL INTELLIGENCE ACQUISITION (CONT’D) Significant estimates are as follows: ● Number of units issued based upon a weighted average calculation for the Company achieving the revenue targets. ● Brand fair value based on an income approach, specifically relief from royalty methodology, using a reasonable royalty rate of 0.25 % and discount rate of 14.4 % per annum. ● Software fair value based on an income approach, specifically relief from royalty methodology, using a reasonable royalty rate of 5.0 % and discount rate of 14.4 % per annum. Furthermore, the excess of the consideration paid over the fair value of the identifiable assets (liabilities) acquired was recognized as goodwill, which primarily consisted of continued development of the technology platform integrating the latest technological developments. From the date of the acquisition to December 31, 2021, Vital contributed $ 115,369 of revenue and a net loss of $ 203,231 .

AMALGAMATION

AMALGAMATION	12 Months Ended
AMALGAMATION	Dec. 31, 2021
AMALGAMATION	5. AMALGAMATION On January 31, 2019, the Company and Draganfly Innovations entered into the BCA providing for a three-cornered amalgamation among the Company, Draganfly Innovations, and Merger Co. As of August 15, 2019, the Amalgamation closed and the Company acquired, on a one for 1.794 basis, all of the issued and outstanding Draganfly Innovations shares (the “Draganfly Innovations Shares”) in exchange for 8,527,671 This resulted in a reverse take-over, of the Company, by the shareholders of Draganfly Innovations. At the time of the Amalgamation, the Company did not constitute a business as defined under IFRS 3; therefore, the Amalgamation is accounted under IFRS 2, where the difference between the consideration given to acquire the Company and the net asset value of the Company is recorded as a listing expense to net loss. As Draganfly Innovations is deemed to be the accounting acquirer for accounting purposes, these consolidated financial statements present the historical financial information of Draganfly Innovations up to the date of the Amalgamation. SUMMARY OF HISTORICAL FINANCIAL INFORMATION Number of shares of Draganfly Inc. 2,100,000 Fair value of common shares in concurrent financing $ 2.50 Fair value of shares of Draganfly Inc. $ 5,250,001 Fair value of warrants 1,645,193 Fair value of shares issued for transaction fees 1,000,000 Net assets acquired $ (90,335 ) Listing expense $ 7,804,859 Fair value of the Company acquired, net of liabilities Cash $ 28,538 Accounts receivable 4,991 Loans receivable 963,269 Accounts payable and accrued liabilities (406,463 ) Subscription receipts (500,000 ) Net of liabilities $ 90,335 The fair value of 10,500,001 2.50 Draganfly Inc. Notes to the Consolidated Financial Statements For The Year Ended December 31, 2021 Expressed in Canadian Dollars 5. AMALGAMATION (CONT’D) Prior to the closing of the Amalgamation, Draganfly Innovations issued 222,965 1,000,000 The Company assumed 800,000 0.50 1,645,193 SUMMARY OF FAIR VALUE MEASUREMENT INPUTS AND VALUATION TECHNIQUES Risk-free interest rate 0.86 Estimate life 1.48 Expected volatility 100 Expected dividend yield 0 As at August 15, 2019, the Company received $ 7,025,750 2.50 2.50

CASH AND CASH EQUIVALENTS

CASH AND CASH EQUIVALENTS	12 Months Ended
CASH AND CASH EQUIVALENTS	Dec. 31, 2021
CASH AND CASH EQUIVALENTS	6. CASH AND CASH EQUIVALENTS SCHEDULE OF CASH AND CASH EQUIVALENTS December 31, 2021 December 31, 2020 Cash held in banks $ 22,729,212 $ 1,839,871 Guaranteed investment certificates 346,501 142,545 Cash and Cash Equivalents $ 23,075,713 $ 1,982,416 On March 27, 2020, the Company purchased a $ 142,000 1 0.50 142,710 1 0.10 On May 28, 2021, the Company purchased an additional $ 140,000 GIC to further secure its credit cards. The terms of the GIC are for 1 year at a rate of 0.35 % per annum On December 21, 2021, the Company purchased an additional $ 50,000 USD GIC to further secure its credit cards. The terms of the GIC are for 1 year at 0.05 % per annum. All GIC’s must be maintained and renewed upon maturity until such time as the associated credit cards are cancelled.

RECEIVABLES

RECEIVABLES	12 Months Ended
RECEIVABLES	Dec. 31, 2021
Schedule Of Amounts Receivable
RECEIVABLES	7. RECEIVABLES SCHEDULE OF AMOUNTS RECEIVABLE December 31, 2021 December 31, 2020 Trade accounts receivable $ 951,314 $ 780,254 Corporate taxes receivable 182,820 - GST receivable 272,993 $ - SR&ED receivable - 30,537 Trade and other receivables $ 1,407,127 $ 810,791

INVENTORY

INVENTORY	12 Months Ended
INVENTORY	Dec. 31, 2021
INVENTORY	8. INVENTORY SCHEDULE OF INVENTORIES December 31, 2021 December 31, 2020 December 31, 2019 Finished goods $ 3,017,363 $ 1,155,871 $ - Parts 373,459 77,748 48,653 Inventories $ 3,390,822 $ 1,233,619 $ 48,653 During the year ended December 31, 2021, $ 3,420,713 (2020: $ 2,257,797 118,826 ) of inventory was sold and recognized in cost of sales. During the year ended December 31, 2021, the Company recorded an allowance to value its inventory for obsolete and slow-moving inventory, recognizing an expense in cost of sales of $ nil (2020: $ 23,955 nil ). SCHEDULE OF COST OF SALES December 31, 2021 December 31, 2020 December 31, 2019 Inventory $ 3,420,713 $ 2,257,797 $ 118,626 Consulting and services 679,345 164,119 86,280 Other 310,719 181,995 13,894 Cost of sales $ 4,410,777 $ 2,603,911 $ 218,800

NOTES RECEIVABLE

NOTES RECEIVABLE	12 Months Ended
NOTES RECEIVABLE	Dec. 31, 2021
Notes Receivable
NOTES RECEIVABLE	9. NOTES RECEIVABLE DISCLOSURE OF NOTES RECEIVABLE Start Date Maturity Date Rate Principal Interest Accretion Impairment Total Note 1 (1) 2021-04-21 2022-10-21 0 % $ 180,597 $ - $ 9,573 $ - $ 190,170 Note 2 (1) 2021-06-01 2023-06-01 8 % 114,833 5,378 - (120,211 ) - Note 3 (1) 2021-09-22 2024-09-22 5 % 943,385 13,156 7,465 - 964,006 Note 4 2021-11-17 2022-04-26 8 % 750,000 21,260 - (771,260 ) - Total $ 1,988,815 $ 39,794 $ 17,038 $ (891,471 ) $ 1,154,176 (1) These notes are denominated in US dollars and are converted to Canadian dollars at the reporting date. Note 1 is non-interest bearing and is secured by intellectual property. This note is measured at fair value through profit or loss. The fair value was determined based on the price the company paid for this loan which was the investee’s most recent financing. Note 2 bears interest at 8 Nil Note 3 bears interest at 5 Note 4 was issued pursuant to letter of intent on an acquisition that the Company is no longer pursuing. The loan is interest bearing at 8 Nil

PREPAIDS

PREPAIDS	12 Months Ended
PREPAIDS	Dec. 31, 2021
PREPAIDS	10. PREPAIDS SCHEDULE OF PREPAID EXPENSES AND DEPOSITS December 31, 2021 December 31, 2020 Insurance $ 2,938,246 $ 992 Prepaid director fees 107,763 - Prepaid interest 6,969 - Prepaid marketing services 1,638,179 187,826 Prepaid rent - 3,583 Prepaid subscriptions 35,687 5,953 Deposits 768,033 136,668 Prepaid expenses and deposits $ 5,494,877 $ 335,022 Draganfly Inc. Notes to the Consolidated Financial Statements For The Year Ended December 31, 2021 Expressed in Canadian Dollars

INVESTMENTS

INVESTMENTS	12 Months Ended
INVESTMENTS	Dec. 31, 2021
Disclosure Investments Abstract
INVESTMENTS	11. INVESTMENTS SCHEDULE OF INVESTMENTS Balance at December 31, 2020 $ - Investments 623,706 Change in fair value (332,640 ) Balance at December 31, 2021 $ 291,066 Fair value of investments is comprised of: . Public company shares $ 142,857 Public company warrants 21,429 Private company shares 126,780 Balance at December 31, 2021 $ 291,066 On March 10, 2021, the Company purchased 1,428,571 units of a publicly listed company for $ 500,000 . Each unit is comprised of one common share and one warrant. The warrants have an exercise price of $ 0.50 each and convert to one common share, and expire on March 17, 2023 . The fair values of these warrants were estimated using the Black-Scholes option pricing model with the following weighted average assumptions: SCHEDULE OF WEIGHTED AVERAGE ASSUMPTION FOR FAIR VALUES WARRANTS December 31, 2021 March 10, 2021 Risk free interest rate 0.91 % 0.28 % Expected volatility 124.09 % 150.88 % Expected life 2 years 2 years Expected dividend yield 0 % 0 % Volatility is calculated using the historical volatility method On October 27, 2021, the Company purchased 50,000 100,000

EQUIPMENT

EQUIPMENT	12 Months Ended
EQUIPMENT	Dec. 31, 2021
Disclosure of detailed information about property, plant and equipment [abstract]
EQUIPMENT	12. EQUIPMENT SCHEDULE OF PROPERTY, PLANT AND EQUIPMENT Computer Equipment Furniture and Equipment Leasehold Improvements Software Vehicles Total Cost Balance at January 1, 2020 $ 7,000 $ 142,173 $ - $ 29,967 $ - $ 179,140 Additions 2,028 21,860 - - - 23,888 Net assets acquired in the 15,369 7,573 4,352 - 27,652 54,946 Balance at December 31, 2020 $ 24,397 $ 171,606 $ 4,352 $ 29,967 $ 27,652 $ 257,974 Property, plant and equipment, beginning balance $ 24,397 $ 171,606 $ 4,352 $ 29,967 $ 27,652 $ 257,974 Additions 29,713 170,866 - - 12,000 212,579 Revaluation - - - - (3,619 ) (3,619 ) Balance at December 31, 2021 $ 54,110 $ 342,472 $ 4,352 $ 29,967 $ 36,033 $ 466,934 Property, plant and equipment, ending balance $ 54,110 $ 342,472 $ 4,352 $ 29,967 $ 36,033 $ 466,934 Accumulated depreciation Balance at January 1, 2020 $ 6,761 $ 37,944 $ - $ 19,294 $ - $ 63,999 Charge for the year 5,631 22,019 3,220 3,202 6,033 40,105 Balance at December 31, 2020 $ 12,392 $ 59,963 $ 3,220 $ 22,496 $ 6,033 $ 104,104 Accumulated depreciation Property, plant and equipment, beginning balance $ 12,392 $ 59,963 $ 3,220 $ 22,496 $ 6,033 $ 104,104 Charge for the year 12,899 42,314 1,132 2,241 7,201 65,787 Balance at December 31, 2021 $ 25,291 $ 102,277 $ 4,352 $ 24,737 $ 13,234 $ 169,891 Accumulated depreciation Property, plant and equipment, ending balance $ 25,291 $ 102,277 $ 4,352 $ 24,737 $ 13,234 $ 169,891 Net book value: December 31, 2020 $ 12,005 $ 111,643 $ 1,132 $ 7,471 $ 21,619 $ 153,870 December 31, 2021 $ 28,819 $ 240,195 $ - $ 5,230 $ 22,799 $ 297,043 Property, plant and equipment $ 28,819 $ 240,195 $ - $ 5,230 $ 22,799 $ 297,043 Draganfly Inc. Notes to the Consolidated Financial Statements For The Year Ended December 31, 2021 Expressed in Canadian Dollars

INTANGIBLE ASSETS AND GOODWILL

INTANGIBLE ASSETS AND GOODWILL	12 Months Ended
INTANGIBLE ASSETS AND GOODWILL	Dec. 31, 2021
INTANGIBLE ASSETS AND GOODWILL	13. INTANGIBLE ASSETS AND GOODWILL SCHEDULE OF INTELLECTUAL PROPERTY Patents Customer Relationships Brand Software Goodwill Total Cost Balance at December 31, 2019 $ 41,931 $ - $ $ - $ - $ 41,931 Intangible assets acquired in the Transaction - 197,000 - 119,000 2,166,563 2,482,563 Balance at December 31, 2020 $ 41,931 $ 197,000 $ - $ 119,000 $ 2,166,563 $ 2,524,494 Intellectual properties and goodwill, beginning balance $ 41,931 $ 197,000 $ - $ 119,000 $ 2,166,563 $ 2,524,494 Intangible assets acquired in the Acquisition - - 23,000 433,000 8,353,609 8,809,609 Impairment of goodwill - - - - (4,579,763 ) (4,579,763 ) Balance at December 31, 2021 $ 41,931 $ 197,000 $ 23,000 $ 552,000 $ 5,940,409 $ 6,754,340 Intellectual properties and goodwill, Ending balance $ 41,931 $ 197,000 $ 23,000 $ 552,000 $ 5,940,409 $ 6,754,340 Accumulated amortization Balance at December 31, 2019 $ 40,546 $ - $ - $ - $ - $ 40,546 Change for the year 1,385 26,267 - 15,866 - 43,518 Balance at December 31, 2020 41,931 26,267 - 15,866 - 84,064 Accumulated amortization, beginning balance $ 41,931 $ 26,267 - $ 15,866 $ - $ 84,064 Change for the year - 34,147 3,450 98,369 - 135,966 Balance at December 31, 2021 $ 41,931 $ 60,414 $ 3,450 $ 114,235 $ - $ 220,030 Accumulated amortization, ending balance $ 41,931 $ 60,414 $ 3,450 $ 114,235 $ - $ 220,030 Net book value: December 31, 2020 $ - $ 170,733 $ - $ 103,134 $ 2,166,563 $ 2,440,430 December 31, 2021 $ - $ 136,586 $ 19,550 $ 437,765 $ 5,940,409 $ 6,534,310 Intellectual properties and goodwill $ - $ 136,586 $ 19,550 $ 437,765 $ 5,940,409 $ 6,534,310 Customer relationships On April 30, 2020, the Company acquired a 100% 197,000 Brand On April 30, 2020, the Company acquired a 100% interest in Dronelogics and assigned $ 119,000 to the fair value of the website/domain name. On March 25, 2021, the Company acquired the assets of Vital (note 4) and assigned $ 23,000 to the fair value of the brand. Software On March 25, 2021, the Company acquired the assets of Vital and assigned $ 433,000 Goodwill On April 30, 2020, the Company acquired a 100% 2,166,563 On March 25, 2021, the Company acquired the assets of Vital, which included goodwill. Goodwill was valued at $ 8,353,609 . Draganfly Inc. Notes to the Consolidated Financial Statements For The Year Ended December 31, 2021 Expressed in Canadian Dollars 13. INTELLECTUAL PROPERTIES AND GOODWILL (CONT’D) On December 31, 2021 the Company performed its annual goodwill impairment test on Vital and Dronelogics. The Company determined the recoverable amount based on a value in use calculation using the following key assumptions: ● 5 year post tax cash flow projections expected to be generated based on a financial forecast with a terminal growth rate of 2% ● Budgeted cash flows calculated using a weighted average revenue EBITDA margin of 14% for Drone and 42 respectively were estimated by management based on the past performance and future growth prospects as well as observed trends among comparable companies. ● Cash flows were discounted at the weighted average cost of capital of 17% 24% Based on the annual goodwill impairment test, the Company deemed that the goodwill for Vital required impairment, as such the Company recorded an impairment of $ 4,579,763 The most sensitive inputs to the value in use model are the growth and discount rates. All else being equal: ● A 10% $597,100 570,133 Changing the above assumption would result in an impairment for Dronelogics, and would result in additional impairment for Vital. The key assumptions used in the calculations of the recoverable amounts include sales growth per year, changes in cost of sales and capital expenditures based on internal forecasts.

RIGHT OF USE ASSETS

RIGHT OF USE ASSETS	12 Months Ended
RIGHT OF USE ASSETS	Dec. 31, 2021
Right Of Use Assets
RIGHT OF USE ASSETS	14. RIGHT OF USE ASSETS SCHEDULE OF RIGHT OF USE ASSETS Total Cost Balance at December 31, 2019 $ 159,539 Leases acquired in the Acquisition 83,428 Balance at December 31, 2020 $ 242,967 Additions 447,242 Lease removal (7,092 ) Balance at December 31, 2021 $ 683,117 Accumulated depreciation Balance at December 31, 2019 $ 29,545 Charge for the year 69,003 Balance at December 31, 2020 $ 98,548 Historical correction 7,152 Charge for the year 109,311 Balance at December 31, 2021 $ 215,011 Net book value: December 31, 2020 $ 144,419 December 31, 2021 $ 468,106 Draganfly Inc. Notes to the Consolidated Financial Statements For The Year Ended December 31, 2021 Expressed in Canadian Dollars

LEASE LIABILITY

LEASE LIABILITY	12 Months Ended
LEASE LIABILITY	Dec. 31, 2021
Lease Liability
LEASE LIABILITY	15. LEASE LIABILITY The Company leases certain assets under lease agreements. The lease liabilities consist of leases of facilities and vehicles with terms ranging from one to five years. The leases are calculated using incremental borrowing rates ranging from 7.5% to 10.5% SCHEDULE OF OPERATING LEASE LIABILITIES Total Balance at December 31, 2019 $ 136,073 Leases acquired in the Acquisition 87,203 Interest expense 18,290 Lease Payments (83,442 ) Balance at December 31, 2020 $ 158,124 Addition 440,675 Interest expense 26,964 Lease payments (128,995 ) Lease removal (7,645 ) Balance at December 31, 2021 $ 489,123 Which consists of: Current lease liability $ 110,481 Non-current lease liability 378,642 Balance at December 31, 2021 $ 489,123 SCHEDULE OF OPERATING MATURITY ANALYSIS Maturity analysis Total Less than one year $ 150,276 One to three years 251,765 Four to five years 183,473 Greater than five years 5,030 Total undiscounted lease liabilities 590,544 Maturity analysis 590,544 Amount representing implicit interest (101,421 ) Lease liability $ 489,123

TRADE PAYABLES AND ACCRUED LIAB

TRADE PAYABLES AND ACCRUED LIABILITIES	12 Months Ended
TRADE PAYABLES AND ACCRUED LIABILITIES	Dec. 31, 2021
Trade Payables And Accrued Liabilities
TRADE PAYABLES AND ACCRUED LIABILITIES	16. TRADE PAYABLES AND ACCRUED LIABILITIES SCHEDULE OF TRADE PAYABLES AND ACCRUED LIABILITIES December 31, 2021 December 31, 2020 Trade accounts payable $ 362,890 $ 813,881 Accrued liabilities 402,540 512,205 Due to related parties (Note 23) - 475,628 Government grant payable 33,709 33,709 GST/PST Payable - 21,754 Trade payables and accrued liabilities $ 799,139 $ 1,857,177

CUSTOMER DEPOSITS

CUSTOMER DEPOSITS	12 Months Ended
CUSTOMER DEPOSITS	Dec. 31, 2021
Customer Deposits
CUSTOMER DEPOSITS	17. CUSTOMER DEPOSITS SCHEDULE OF CUSTOMER DEPOSITS December 31, 2021 December 31, 2020 Customer deposits $ 172,134 $ 385,449 Draganfly Inc. Notes to the Consolidated Financial Statements For The Year Ended December 31, 2021 Expressed in Canadian Dollars

DEFERRED INCOME

DEFERRED INCOME	12 Months Ended
DEFERRED INCOME	Dec. 31, 2021
DEFERRED INCOME	18. DEFERRED INCOME At times, the Company may take payment in advance for services to be rendered. These amounts are held and recognized as services are rendered. SCHEDULE OF DEFERRED INCOME December 31, 2021 December 31, 2020 Deferred income from customers $ 80,000 $ - Deferred income from government 5,233 5,062 Deferred income from note receivable accretion (11,947 ) - Deferred Income 73,286 5,062

LOANS PAYABLE

LOANS PAYABLE	12 Months Ended
LOANS PAYABLE	Dec. 31, 2021
Loans Payable
LOANS PAYABLE	19. LOANS PAYABLE SCHEDULE OF LOANS PAYABLE December 31, 2021 December 31, 2020 Opening balance $ 97,916 $ - Acquisition of loans - 120,851 Issuance of loans payable 60,000 60,000 Fair value adjustment (24,576 ) (26,152 ) Repayment of loans payable (44,428 ) (57,873 ) Accretion expense 4,405 1,090 Ending balance $ 93,317 $ 97,916 SCHEDULE OF LOANS Start Date Maturity Date Rate Carrying Value December 31, 2021 Carrying Value December 31, 2020 CEBA 2020-05-19 2022-12-31 0 % $ 37,384 $ 34,938 CEBA 2021-04-23 2022-12-31 0 % 37,383 - Vehicle loan 2019-08-30 2024-09-11 6.99 % 18,550 25,295 Shopify loan 2020-08-05 7.00 % - 37,683 Total $ 93,317 $ 97,916 On May 19, 2020, Dronelogics received a $ 40,000 25 10,000 three-year term 5 On December 4, 2020, the Government of Canada allowed for an expansion of the CEBA loan by $ 20,000 10,000 On April 23, 2021, Draganfly Innovations Inc. received a $ 60,000 20,000 5 The CEBA loans are unsecured and the vehicle loan is secured by the vehicle and the Shopify loan is secured by the Company’s accounts receivable. Draganfly Inc. Notes to the Consolidated Financial Statements For The Year Ended December 31, 2021 Expressed in Canadian Dollars

SHARE CAPITAL

SHARE CAPITAL	12 Months Ended
SHARE CAPITAL	Dec. 31, 2021
Share Capital
SHARE CAPITAL	20. SHARE CAPITAL Authorized share capital Unlimited number of common shares without par value. Issued share capital During the year ended December 31, 2021, - The Company issued 1,580,525 3,951,312 - The Company issued 149,999 - The Company issued 392,999 987,248 - The Company issued 15,000 - The Company issued 6,488,691 units for the Regulation A+ financing in the United States for proceeds of $ 18,815,485 . Each unit is comprised of one common share and one share purchase warrant. These warrants had a fair value of $0.57 USD allocated to them, have an exercise price of $3.55 USD per warrant, each convert to one common share, and have a life of two years. 8,261,511 - The Company issued 1,200,000 Each unit is comprised of one common share and one warrant. These warrants have an exercise price of $13.35 per warrant, each convert to one common share, and have a life of two years. - The Company issued 5,095,966 25,538,213 - The Company issued 359,009 978,478 - The Company issued 298,661 - The Company issued 12,500 26,875 - The Company issued 356,901 For the year ended December 31, 2020, - The Company issued 24,000 60,000 - The Company issued 20,000 50,000 - The Company issued 210,320 105,160 - The Company issued 73,000 36,500 - The Company issued 294,840 147,420 - The Company issued 121,840 60,920 - The Company issued 126,000 115,000 - The Company issued 645,088 common shares for the acquisition of Dronelogics and an additional 40,000 common shares as finder’s fees. - The Company issued 12,000 30,000 - The Company issued 45,600 114,000 - The Company issued 192,308 500,000 - The Company issued 111,082 344,354 38,879 - The Company issued 2,000 5,000 - The Company issued 2,200 5,500 - The Company issued 637,975 1,594,938 - The Company issued 7,117 - The Company issued 511,299 1,518,845 Each unit is comprised of one common share and one share purchase warrant. These warrants have an exercise price of $3.55 USD per warrant, each convert to one common share, and have a life of two years, expiring on November 30, 2022. - The Company issued 2,040 - The Company issued 2,647 - The Company issued 188,194 - The Company issued 15,000 37,500 Draganfly Inc. Notes to the Consolidated Financial Statements For The Year Ended December 31, 2021 Expressed in Canadian Dollars 20. SHARE CAPITAL (CONT’D) For the year ended December 31, 2019, - The Company issued 143,985 799,341 153,566 - The Company issued 222,965 1,000,000 - The Company issued 8,517,671 - The Company issued 9,065 22,662 2.50 - The Company issued 423,698 740,000 319,246 - The Company issued 63,388 8,833 212,908 - The Company issued 2,810,300 Each unit consists of one common share and one warrant. These warrants have an exercise price of $2.50 per warrant, each convert to one common share, and have a life of one year, expiring on October 25, 2020 Stock Options The Company has adopted an incentive share compensation plan, which provides that the Board of Directors of the Company may from time to time, in its discretion, and in accordance with the CSE requirements, grant to directors, officers, employees, and technical consultants to the Company, non-transferable stock options to purchase common shares. The total number of common shares reserved and available for grant and issuance pursuant to this plan shall not exceed 20% (in the aggregate) of the issued and outstanding common shares from time to time. The number of options awarded and underlying vesting conditions are determined by the Board of Directors in its discretion. As at December 31, 2021, the Company had the following options outstanding and exercisable: SCHEDULE OF STOCK OPTIONS OUTSTANDING AND EXERCISABLE Grant Date Expiry Date Exercise Price Remaining Contractual Life (years) Number of Options Outstanding Number of Options Exercisable October 30, 2019 October 30, 2029 $ 2.50 7.84 296,665 296,665 November 19, 2019 November 19, 2029 $ 2.50 7.89 50,000 50,000 April 30, 2020 April 30, 2030 $ 2.50 8.33 87,000 78,666 April 30, 2020 April 30, 2030 $ 3.85 8.33 110,000 70,000 July 3, 2020 July 3, 2025 $ 3.20 3.51 200,000 166,666 November 24, 2020 November 24, 2030 $ 2.50 8.90 32,000 21,000 December 11, 2020 December 11, 2030 $ 2.15 8.95 12,500 12,500 February 2, 2021 February 2, 2031 $ 13.20 9.09 30,000 10,000 March 8, 2021 March 8, 2026 $ 13.90 4.19 10,000 5,000 April 27, 2021 April 27, 2031 $ 10.15 9.23 182,000 - September 9, 2021 September 9, 2026 $ 4.84 4.69 25,826 - 1,035,991 710,497 SUMMARY OF CHANGES IN STOCK OPTIONS Number of Options Weighted Average Exercise Price Outstanding, December 31, 2019 744,993 $ 2.50 Forfeited (43,334 ) 2.50 Granted 492,000 3.08 Outstanding, December 31, 2020 1,193,659 $ 2.75 Exercised (405,494 ) 2.50 Granted 247,826 10.12 Outstanding, December 31, 2021 1,035,991 $ 4.60 During the year ended December 31, 2021, - The Company granted 30,000 13.20 10 years - The Company granted 10,000 13.90 5 years - The Company granted 182,000 10.15 10 years - The Company granted 25,826 4.84 5 years Draganfly Inc. Notes to the Consolidated Financial Statements For The Year Ended December 31, 2021 Expressed in Canadian Dollars 20. SHARE CAPITAL (CONT’D) Stock Options (cont’d) During the year ended December 31, 2020, - The Company granted 89,000 2.50 10 years - The Company granted 120,000 options to consultants. Each option is exercisable at $ 3.85 per share for a period of 10 years from the grant date. - The Company granted 200,000 3.20 5 years - The Company granted 33,000 2.50 10 years - The Company granted 50,000 2.15 10 years During the year ended December 31, 2021, the Company recorded $ 1,660,894 1,724,853 and 2019 – $ 599,701 ) in stock-based compensation for stock options, based on the fair values of stock options granted which were estimated using the Black-Scholes option pricing model with the following weighted average assumptions: SCHEDULE OF WEIGHTED AVERAGE ASSUMPTIONS Year ended December 31, 2021 2020 2019 Risk free interest rate 0.69% 1.40% 0.43% 0.66% 1.45% 1.46 % Expected volatility 62.84% 113.16% 113.53% 119.03% 100 % Expected life 5 years 5 10 7.5 Expected dividend yield 0 % 0 % 0 % Exercise price $ 4.84 13.90 $ 2.15 3.85 $ 2.50 Volatility is calculated using the historical volatility method based on a comparative company’s stock price. Restricted Share Units The Company has adopted an incentive share compensation plan, which provides that the Board of Directors of the Company may from time to time, in its discretion, and in accordance with the Exchange requirements, grant to directors, officers, employees, and technical consultants to the Company, restricted stock units (RSUs). The number of RSUs awarded and underlying vesting conditions are determined by the Board of Directors in its discretion. RSUs will have a 3-year vesting period following the award date. The total number of common shares reserved and available for grant and issuance pursuant to this plan, and the total number of Restricted Share Units that may be awarded pursuant to this plan, shall not exceed 20% (in the aggregate) of the issued and outstanding common shares from time to time. As at December 31, 2021, the Company had the following RSUs outstanding: SUMMARY OF CHANGES IN RESTRICTED STOCK UNITS Number of RSUs Outstanding, December 31, 2019 634,997 Vested (199,998 ) Forfeited (68,333 ) Issued 248,000 Outstanding, December 31, 2020 614,666 Vested (448,660 ) Issued 348,826 Outstanding, December 31, 2021 514,832 Draganfly Inc. Notes to the Consolidated Financial Statements For The Year Ended December 31, 2021 Expressed in Canadian Dollars 20. SHARE CAPITAL (CONT’D) Restricted Share Units (cont’d) During the year ended December 31, 2021, 323,661 124,999 348,826 During the year ended December 31, 2020, the Company committed to grant 248,000 During the year ended December 31, 2021, the Company recorded share-based payment expense of $ 2,291,701 943,611 161,858 Warrants During the years ended December 31, 2021 and 2020, the Company issued warrants (“USD Warrants”) with a USD exercise price. Being in a foreign currency that is not the Company’s functional currency, these USD Warrants are required to be recorded as a financial liability and not as equity. As a financial liability, these USD Warrants are revalued on a quarterly basis to fair market value with the change in fair value being recorded profit or loss. The initial fair value of these USD Warrants was parsed out from equity and recorded as a financial liability. To reach a fair value of the USD Warrants, a Black Scholes calculation is used, calculated in USD as the Company also trades on the Nasdaq. The Black Scholes value per USD Warrant is then multiplied by the number of outstanding warrants and then multiplied by the foreign exchange rate at the end of the period from the Bank of Canada. Warrant Derivative Liability SCHEDULE OF WARRANT DERIVATIVE LIABILITY Balance at January 1, 2020 $ - Warrant issuance 281,732 Change in fair value of warrants outstanding 466,902 Balance at December 31, 2020 $ 748,634 Warrant issuance 8,261,511 Exercised (98,048 ) Change in fair value of warrants outstanding (4,046,325 ) Warrant Balance at December 31, 2021 4,865,772 Derivative liability Warrants $ 4,865,772 Contingent consideration (note 4) 694,230 Contingent consideration at December 31, 2021 $ 5,560,002 Details of these warrants and their fair values are as follows: SCHEDULE OF WARRANTS AND FAIR VALUE OUTSTANDING Issue Date Exercise Price Number of Warrants Outstanding at December 31, 2021 Fair Value at December 31, 2021 Number of Warrants Outstanding at December 31, 2020 Fair Value at December 31, 2020 November 30, 2020 US$ 3.55 482,425 $ 182,262 511,299 $ 748,634 February 5, 2021 US$ 3.55 1,323,275 951,226 - - March 5, 2021 US$ 3.55 5,154,321 3,731,285 - - July 29, 2021 US$ 5.00 250,000 84,625 - - September 14, 2021 US$ 5.00 4,798 1,685 - - 7,214,819 $ 4,865,772 511,299 $ 748,634 Draganfly Inc. Notes to the Consolidated Financial Statements For The Year Ended December 31, 2021 Expressed in Canadian Dollars 20. SHARE CAPITAL (CONT’D) Warrants (cont’d) The fair values of these warrants were estimated using the Black-Scholes option pricing model with the following weighted average assumptions: SCHEDULE OF WEIGHTED AVERAGE ASSUMPTION FOR WARRANTS Year ended December 31, 2021 2020 Risk free interest rate 0.23% - 0.95 0.20% 0.24% Expected volatility 70.95% 144.59% 72.76% 74.10% Expected life 2 3 2 Expected dividend yield 0% 0% Volatility is calculated using the historical volatility method. During the year ended December 31, 2020, the Company amended the expiry date of the November 5, 2019 warrants from November 5, 2020 to November 5, 2021 provided that 25% of the warrants were exercised by October 21, 2020 and 25% were exercised by May 5, 2021. SUMMARY OF CHANGES IN WARRANTS Number of Warrants Weighted Average Exercise Price Outstanding, December 31, 2019 3,610,340 $ 2.05 Exercised (1,584,775 ) 1.50 Forfeited (120,000 ) 2.50 Issued 511,299 3.55 Outstanding, December 31, 2020 2,416,864 $ 2.95 Exercised (1,939,534 ) 2.54 Forfeited (6,000 ) 2.50 Issued 7,943,489 5.10 Outstanding, December 31, 2021 8,414,819 $ 4.99 As at December 31, 2021, the Company had the following warrants outstanding: SCHEDULE OF WARRANTS OUTSTANDING Date issued Expiry date Exercise price Number of warrants outstanding November 30, 2020 November 30, 2022 US$ 3.55 482,425 February 5, 2021 February 5, 2023 US$ 3.55 1,323,275 March 5, 2021 March 5, 2023 US$ 3.55 5,154,321 March 22, 2021 March 22, 2023 CDN$ 13.35 1,200,000 July 29, 2021 July 29, 2024 US$ 5.00 250,000 September 14, 2021 September 14, 2024 US$ 5.00 4,798 8,414,819 The weighted average remaining contractual life of warrants outstanding as of December 31, 2021, was 1.20 years (December 31, 2020 – 1.07 years). Of 1,200,000 900,000 Draganfly Inc. Notes to the Consolidated Financial Statements For The Year Ended December 31, 2021 Expressed in Canadian Dollars

REVENUE

REVENUE	12 Months Ended
REVENUE	Dec. 31, 2021
Revenue
REVENUE	21. REVENUE The Company sub-classifies revenue within the following components: product revenue and services revenue. Product revenue comprises of sales of internally assembled multi-rotor helicopters, industrial aerial video systems, civilian small unmanned aerial systems or vehicles, and wireless video systems. Services revenue consists of fees charged for custom engineering, drone as a service work, and training and simulation consulting. SCHEDULE OF PRODUCT AND SERVICE REVENUE For the years ended December 31, 2021 2020 2019 Product sales $ 5,103,399 $ 3,087,223 $ 248,939 Drone service 1,304,799 630,532 - Services 645,667 645,756 1,131,488 Revenue $ 7,053,865 $ 4,363,511 $ 1,380,427 The Company does not derive significant revenue from any (2020 – 1) customers that exceeds 10% of total revenues for the year ended December 31, 2021 (2020 – $ 474,701 of custom engineering services revenue). Consulting revenue On May 22, 2017, the Company executed a standard consulting agreement, whereby the Company would provide consulting, custom engineering and investigating and solving on a project-by-project basis. The Company shall be responsible for the development, design, procurement, fabrication, assembly, integration, checkout, integration and test of hardware, software, and firmware necessary to produce a complete system per each project. The consideration for the services performed are based on the labor cost incurred on an hourly basis and minimal preapproved expenditures. Geographic revenue segmentation is as follows: SCHEDULE OF GEOGRAPHIC REVENUE For the years ended December 31, 2021 2020 2019 Canada $ 4,937,935 $ 2,270,862 $ 127,118 United States 2,071,492 1,982,404 1,251,199 International 44,438 110,245 2,110 Revenue $ 7,053,865 $ 4,363,511 $ 1,380,427 Draganfly Inc. Notes to the Consolidated Financial Statements For The Year Ended December 31, 2021 Expressed in Canadian Dollars 21. REVENUE (CONT’D) Non current assets for each geographic segment are as follows: SCHEDULE OF OPERATING SEGMENTS Canada United States International For the years ended December 31, Canada United States International Goodwill $ 2,166,564 $ 3,773,845 $ - Property and equipment 297,043 - - Intangible assets 219,093 374,808 - Investments 291,066 - - Notes receivable - 964,006 - Right of use assets 468,106 - - TOTAL ASSETS $ 3,441,872 $ 5,112,659 $ - Draganfly Inc. Notes to the Consolidated Financial Statements For The Year Ended December 31, 2021 Expressed in Canadian Dollars

OFFICE AND MISCELLANEOUS

OFFICE AND MISCELLANEOUS	12 Months Ended
OFFICE AND MISCELLANEOUS	Dec. 31, 2021
Office And Miscellaneous
OFFICE AND MISCELLANEOUS	22. OFFICE AND MISCELLANEOUS SCHEDULE OF OFFICE AND MISCELLANEOUS EXPENSES 2021 2020 2019 For the years ended December 31, 2021 2020 2019 Advertising, Marketing, and Investor Relations $ 5,165,791 $ 2,610,930 $ 1,356,174 Compliance fees 432,874 122,916 80,525 Contract Work 300,975 399,546 438,601 Other 556,358 254,473 228,432 Office and Miscellaneous Expenses $ 6,455,998 $ 3,387,865 $ 2,103,732 Draganfly Inc. Notes to the Consolidated Financial Statements For The Year Ended December 31, 2021 Expressed in Canadian Dollars

RELATED PARTY TRANSACTIONS

RELATED PARTY TRANSACTIONS	12 Months Ended
RELATED PARTY TRANSACTIONS	Dec. 31, 2021
RELATED PARTY TRANSACTIONS	23. RELATED PARTY TRANSACTIONS Key management personnel include those persons having authority and responsibility for planning, directing and controlling the activities of the Company as a whole. The Company has determined that key management personnel consist of members of the Company’s Board of Directors and corporate officers. Trade payables and accrued liabilities: On Aug 1, 2019, the Company entered in a business services agreement (the “Agreement”) with Business Instincts Group (“BIG”), a company that Cameron Chell, CEO and director has a material interest in that he previously controlled, to provide: corporate development and governance, strategic facilitation and management, general business services, office space, corporate business development video content, website redesign and management, and online visibility management. The services are provided by a team of up to six consultants and the costs of all charges are based on the fees set in the Agreement and are settled on a monthly basis. The Company records these charges under Professional Fees. For the year ended December 31, 2021, the company incurred fees of $ 315,643 compared to $ 177,000 in 2020, and $ 80,000 in 2019. On October 1, 2019, the Company entered into an independent consultant agreement (“Consultant Agreement”) with 1502372 Alberta Ltd, a company controlled by Cameron Chell, CEO and director, to provide executive consulting services to the Company. The costs of all charges are based on the fees set in the Consultant Agreement and are settled on a monthly basis. The Company records these charges under Professional Fees. For the year ended December 31, 2021, the Company incurred fees of $ 290,225 525,164 9,000 nil 321,741 9,450 On July 3, 2020, the Company entered into an executive consultant agreement (“Executive Agreement”) with Scott Larson, a director of the Company, to provide executive consulting services, as President, to the Company. The costs of all charges are based on the fees set in the Executive Agreement and are settled on a monthly basis. The Company records these charges under Professional Fees. For the year ended December 31, 2021, the Company incurred fees of $ 205,191 227,524 nil 153,887 As at December 31, 2021, the Company had $ nil 475,628 9,681 Draganfly Inc. Notes to the Consolidated Financial Statements For The Year Ended December 31, 2021 Expressed in Canadian Dollars 23. RELATED PARTY TRANSACTIONS (CONT’D) Key management compensation Key management includes the Company’s directors and members of the executive management team. Compensation awarded to key management for the year ended December 31, 2021 and 2020 included: SCHEDULE OF KEY MANAGEMENT TRANSACTIONS For the years ended December 31, 2021 2020 2019 Director fees $ 370,094 $ - $ - Management fees paid to a company controlled by CEO and director 290,225 737,164 186,000 Management fees paid to a company controlled by the President and director 205,691 227,524 - Management fees paid to a company controlled by a former director 500,074 165,000 195,000 Management fees paid to a company 500,074 165,000 195,000 Salaries 722,068 655,799 179,429 Salaries paid to the former owner of the Company - 86,097 149,060 Salaries - 86,097 149,060 Share-based payments 2,475,949 1,614,158 480,158 Total $ 4,564,102 $ 3,485,742 1,189,647

FINANCIAL INSTRUMENTS AND FINAN

FINANCIAL INSTRUMENTS AND FINANCIAL RISK MANAGEMENT	12 Months Ended
FINANCIAL INSTRUMENTS AND FINANCIAL RISK MANAGEMENT	Dec. 31, 2021
Financial Instruments And Financial Risk Management
FINANCIAL INSTRUMENTS AND FINANCIAL RISK MANAGEMENT	24. FINANCIAL INSTRUMENTS AND FINANCIAL RISK MANAGEMENT The Company is exposed in varying degrees to a variety of financial instrument related risks. The Board of Directors approves and monitors the risk management processes, inclusive of documented investment policies, counterparty limits, and controlling and reporting structures. The type of risk exposure and the way in which such exposure is managed is provided as follows: Credit risk Credit risk is the risk that one party to a financial instrument will fail to discharge an obligation and cause the other party to incur a financial loss. The Company’s primary exposure to credit risk is on its cash held in bank accounts and trade receivables. The majority of cash is deposited in bank accounts held with major bank in Canada and the United States. As most of the Company’s cash is held by one bank there is a concentration of credit risk. This risk is managed by using major banks that are high credit quality financial institutions as determined by rating agencies. The Company does not have any past due outstanding receivables and the expected loss rate for undue balance is estimated to be nominal. Liquidity risk Liquidity risk is the risk that the Company will not be able to meet its financial obligations as they fall due. The Company has a planning and budgeting process in place to help determine the funds required to support the Company’s normal operating requirements on an ongoing basis. The Company ensures that there are sufficient funds to meet its short-term business requirements, taking into account its anticipated cash flows from operations and its holdings of cash and cash equivalents. Historically, the Company’s sole source of funding has been the issuance of equity securities for cash, primarily through private placements. The Company’s access to financing is always uncertain. There can be no assurance of continued access to significant equity funding. Foreign exchange risk Foreign currency risk is the risk that the fair values of future cash flows of a financial instrument will fluctuate because they are denominated in currencies that differ from the respective functional currency. The Company does not hedge its exposure to fluctuations in foreign exchange rates. Draganfly Inc. Notes to the Consolidated Financial Statements For The Year Ended December 31, 2021 Expressed in Canadian Dollars 24. FINANCIAL INSTRUMENTS AND FINANCIAL RISK MANAGEMENT (CONT’D) The following table summarizes the sensitivity of the fair value of the Company’s risk to foreign exchange rates, with all other variables held constant. Fluctuations of 10 percent in the foreign exchange rate between US dollars and Canadian dollars could have resulted in a change impacting net income upon consolidation as follows: SCHEDULE OF CHANGES IN FOREIGN EXCHANGE RATES December 31, 2021 December 31, 2020 Foreign exchange rate $ 150,715 $ 27,018 Interest rate risk Interest rate risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The Company is exposed to interest rate risk on its cash equivalents as these instruments have original maturities of three months or less and are therefore exposed to interest rate fluctuations on renewal. Fair value A number of the Company’s accounting policies and disclosures require the measurement of fair values for financial assets and liabilities. The Company has established a control framework with respect to the measurement of fair values. Fair values are categorized into different levels of a fair value hierarchy based on the inputs used in the valuation techniques as follows: Level 1: quoted (unadjusted) prices in active markets for identical assets or liabilities. Level 2: other techniques for which all inputs which have a significant effect on the recorded fair value are observable, either directly or indirectly. Level 3: techniques which use inputs which have a significant effect on the recorded fair value that are not based on observable market data. Equity securities in investee companies and warrants are measured at fair value. The financial assets measured at fair value by hierarchy are shown in the table below. The amounts shown are based on the amounts recognized in the statements of financial position. These financial assets are measured at fair value through profit and loss. SCHEDULE OF FINANCIAL ASSETS MEASURED FAIR VALUE THROUGH PROFIT AND LOSS December 31, 2021 Level 1 Level 2 Level 3 Total Equity securities in investee companies $ 164,286 $ 126,780 $ - $ 291,066 Notes receivable - 1,154,176 - 1,154,176 Derivative liability - 5,560,002 5,560,002 Total $ 164,286 $ 1,280,956 $ 5,560,002 $ 7,005,244 December 31, 2021 Level 1 Level 2 Level 3 Total Derivative liability - - 748,634 748,634 Total $ - $ - $ 748,634 $ 748,634 Capital Management The Company manages its capital to maintain its ability to continue as a going concern and to provide returns to shareholders and benefits to other stakeholders. The capital structure of the Company consists of cash, debt, and equity comprised of issued share capital, and share-based payment reserve. The Company manages its capital structure and makes adjustments to it in light of economic conditions. The Company, upon approval from its board of directors, will balance its overall capital structure through new equity issuances or by undertaking other activities as deemed appropriate under the specific circumstances. The Company is not subject to externally imposed capital requirements and the Company’s overall strategy with respect to capital risk management remains unchanged from the year ended December 31, 2020. The breakdown of the Company’s capital is as follows: SCHEDULE OF BREAKDOWN CAPITAL December 31, 2021 December 31, 2020 Cash $ 23,075,713 $ 1,982,416 Debt 93,317 97,916 Equity $ 34,926,239 $ 3,848,205

INCOME TAXES

INCOME TAXES	12 Months Ended
INCOME TAXES	Dec. 31, 2021
INCOME TAXES	25. INCOME TAXES The following table reconciles the expected income taxes at the Canadian statutory income tax rates to the amounts recognized in the statements of comprehensive loss for the years ended December 31, 2021, 2020 and 2019: SCHEDULE OF INCOME TAX December 31, 2021 December 31, 2020 December 31, 2019 Loss before income taxes $ 16,202,972 $ 8,015,813 $ 11,095,507 Canadian statutory rates 27 % 27 % Expected income tax recovery 4,196,600 2,164,000 2,996,000 Impact of different foreign statutory tax rates 34,900 - - Non-deductible items 116,400 (687,000 ) (2,043,000 ) Share issue costs 887,600 - - Adjustments to prior years provision versus statutory tax returns 376,500 189,000 (388,000 ) Differences between prior year provision and final tax return (206,000 ) (535,000 ) (18,000 ) Change in deferred tax asset not recognized (5,406,000 ) (1,131,000 ) (547,000 ) Income tax $ - $ - $ - Draganfly Inc. Notes to the Consolidated Financial Statements For The Year Ended December 31, 2021 Expressed in Canadian Dollars 25. INCOME TAXES (CONT’D) The Company’s unrecognized deductible temporary differences and unused tax losses for which no deferred tax asset is recognized consist of the following amounts: SCHEDULE OF DEFERRED TAXES December 31, 2021 December 31, 2020 December 31, 2019 Deferred income tax assets (liabilities): Share issuance costs $ 728,000 $ 30,000 $ - Non-capital losses 7,043,000 3,656,000 2,439,000 Property and equipment 449,000 457,000 581,000 Capital gain reserve 74,000 - - Scientific Research and Experimental Development 291,000 57,000 49,000 Total deferred income tax assets $ 8,585,000 $ 4,200,000 $ 3,069,000 Deferred income tax not recognized (8,585,000 ) (4,200,000 ) (3,069,000 ) Net deferred tax assets $ - $ - $ - The Company has non-capital loss carry forward of approximately $ 25,487,000 which may be carried forward to apply against future year income tax for Canadian income tax purposes, subject to the final determination by taxation authorities, expiring in the years 2036 to 2040.

OTHER INCOME

OTHER INCOME	12 Months Ended
OTHER INCOME	Dec. 31, 2021
OTHER INCOME	26. OTHER INCOME The Company had previously written off an investment in a UK-based company. On April 27, 2020, this company was sold and the Company received $ 1,179,513 (US$ 854,838

SUPPLEMENTAL CASH FLOW DISCLOSU

SUPPLEMENTAL CASH FLOW DISCLOSURES	12 Months Ended
SUPPLEMENTAL CASH FLOW DISCLOSURES	Dec. 31, 2021
Supplemental Cash Flow Disclosures
SUPPLEMENTAL CASH FLOW DISCLOSURES	27. SUPPLEMENTAL CASH FLOW DISCLOSURES During the year ended December 31, 2021: - The Company issued 15,000 - The Company issued 1,200,000 13.35 - The Company issued 356,901 - The Company recorded a change in fair value of investments of $ 332,640 During the year ended December 31, 2020, the Company settled debt of $ 344,354 111,082 28,614 During the year ended December 31, 2019: - Settlement of $ 822,003 153,566 - Issuance of 400,000 2.50 - Settlement of $ 740,000 Draganfly Inc. Notes to the Consolidated Financial Statements For The Year Ended December 31, 2021 Expressed in Canadian Dollars

GOVERNMENT ASSISTANCE

GOVERNMENT ASSISTANCE	12 Months Ended
GOVERNMENT ASSISTANCE	Dec. 31, 2021
Government Assistance
GOVERNMENT ASSISTANCE	28. GOVERNMENT ASSISTANCE In response to COVID-19, the Government of Canada announced the Canada Emergency Wage Subsidy (“CEWS”) program in April 2020. CEWS provides a wage subsidy on eligible remuneration, subject to a maximum per employee, to eligible employers based on meeting certain eligibility criteria. The Company determined that it qualified for this subsidy. The Company has recognized the government assistance as a reduction to expenses as it has complied with the eligibility criteria and the subsidy has been received. Included in the statement of comprehensive loss for the year ended December 31, 2021 is - $ 250,756 (2020 - $ 490,748 ) relating to the CEWS program of which was recorded as a reduction of wages and salaries included in operating expenses. In September 2020, the Government of Canada announced the Canada Emergency Rent Subsidy (“CERS”) to provide a rent subsidy to eligible businesses based on meeting certain eligibility criteria. The Company determined that it qualified for this subsidy as well. The Company has recognized the government assistance as a reduction to expenses as it has complied with the eligibility criteria and the subsidy has been received. The amount included in the statement of comprehensive loss for the year ended December 31, 2021 is - $ 22,668 (2020 - $ nil ) relating to the CERS program of which was recorded as a reduction of rent included in operating expenses. As at December 31, 2021, the Company had - $ nil (2020 - $ nil ) included in amounts receivables for CERS subsidies receivable. In October 2021 the Government of Canada announced the Hardest Hit Business Recovery Program (“HHBRP”) to provide continued wage and rent subsidies to business’ severely affected by COVID-19, based on meeting certain eligibility criteria. The Company determined that it qualified for this subsidy. The Company has recognized the government grant as a reduction to expenses as it has complied with the eligibility criteria and the subsidy has been received. The amount included in the statement of comprehensive loss for the year ended December 31, 2021 is - $ 50,756 in wage subsidies and $ 3,791 in rent subsidies (2020 - $ nil , and - $ nil respectively) relating to the HHBRP program of which were recorded as a reduction wages and salaries and rent expense respectively. As at December 31, 2021, the Company had - $ 54,548 (2020 - $ nil ) included in amounts receivables for HHBRP subsidies receivable.

BASIS OF PREPARATION (Policies)

BASIS OF PREPARATION (Policies)	12 Months Ended
BASIS OF PREPARATION (Policies)	Dec. 31, 2021
Inventory	Inventory Inventory is valued at the lower of cost and net realizable value. Net realizable value is determined with reference to the estimated selling price. The Company estimates selling price based upon assumptions about future demand and current and anticipated retail market conditions. The future realization of these inventories may be affected by future technology or other market-driven changes that may reduce future selling prices.
Contingencies	Contingencies The assessment of contingencies involves the exercise of significant judgment and estimates of the outcome of future events. In assessing loss contingencies related to legal proceedings that are pending against the Company and that may result in regulatory or government actions that may negatively impact the Company’s business or operations, the Company and its legal counsel evaluate the perceived merits of the legal proceeding or unasserted claim or action as well as the perceived merits of the nature and amount of relief sought or expected to be sought, when determining the amount, if any, to recognize as a contingent liability or when assessing the impact on the carrying value of the Company’s assets. Contingent assets are not recognized in the consolidated financial statements.
Useful lives of equipment and intangible assets	Useful lives of equipment and intangible assets Estimates of the useful lives of equipment and intangible assets are based on the period over which the assets are expected to be available for use. The estimated useful lives are reviewed annually and are updated if expectations differ from previous estimates due to physical wear and tear, technical or commercial obsolescence, and legal or other limits on the use of the relevant assets. In addition, the estimation of the useful lives of the relevant assets may be based on internal technical evaluation and experience with similar assets. It is possible, however, that future results of operations could be materially affected by changes in the estimates brought about by changes in the factors mentioned above. The amounts and timing of recorded expenses for any period would be affected by changes in these factors and circumstances. A reduction in the estimated useful lives of the equipment would increase the recorded expenses and decrease the non-current assets.
Significant judgments	Significant judgments The preparation of consolidated financial statements in accordance with IFRS requires the Company to make judgments, apart from those involving estimates, in applying accounting policies. The most significant judgments in applying the Company’s consolidated financial statements include:
Business combinations	Business combinations The definition of whether a set of assets acquired and liabilities assumed constitute a business may require the company to make certain judgements taking into account all facts and circumstances. A business is presumed to be an integrated set of activities and assets capable of being conducted and managed for the purpose of providing a return in the form of dividends, lower costs, or economic benefits.
Business combination versus asset acquisition	Business combination versus asset acquisition The Company considered the applicability of IFRS 3 – Business Combinations (“IFRS 3”) with respect to the Acquisitions (Notes 3, 4, and 5). IFRS 3 defines a business as having a system where inputs enter a process to produce outputs. The Company has determined that the acquisition of Dronelogics Systems Inc. and Vital Intelligence Inc. are business combinations and, accordingly, have accounted for as such.
Other significant judgments	Other significant judgments − The assessment of the Company’s ability to continue as a going concern and whether there are events or conditions that may give rise to significant uncertainty; − the classification of financial instruments; − the assessment of revenue recognition using the five-step approach under IFRS 15 and the collectability of amounts receivable; − the determination of whether a set of assets acquired and liabilities assumed constitute a business; and − the determination of the functional currency of the company.
Foreign currency translation	Foreign currency translation Transactions in foreign currencies are translated into Canadian dollars at rates of exchange at the time of such transactions. Monetary assets and liabilities are translated at the reporting period rate of exchange. Non-monetary assets and liabilities are translated at historical exchange rates. Revenue and expenses denominated in a foreign currency are translated at the monthly average exchange rate. Gains and losses resulting from the translation adjustments are included in income. The functional currencies for the parent company and each subsidiary are as follows: Draganfly Inc. Canadian Dollar Draganfly Innovations Inc. Canadian Dollar Draganfly Innovations USA, Inc. US Dollar Dronelogics Systems Inc. Canadian Dollar Financial statements of subsidiaries for which the functional currency is not the Canadian dollar are translated into Canadian dollars as follows: all asset and liability accounts are translated at the year-end exchange rate and all earnings and expense accounts and cash flow statement items are translated at average exchange rates for the year. The resulting translation gains and losses are recorded as exchange differences on translating foreign operations in other comprehensive income.
Share-based payments	Share-based payments The Company operates a stock option plan. Share-based payments to employees are measured at the fair value of the instruments issued and amortized over the vesting periods. Share-based payments to non-employees are measured at the fair value of goods or services received or the fair value of the equity instruments issued, if it is determined the fair value of the goods or services cannot be reliably measured, and are recorded at the date the goods or services are received. The corresponding amount is recorded to the option reserve. The fair value of options is determined using a Black–Scholes Option Pricing Model. The number of shares and options expected to vest is reviewed and adjusted at the end of each reporting period such that the amount recognized for services received as consideration for the equity instruments granted shall be based on the number of equity instruments that eventually vest. Amounts recorded for forfeited or expired unexercised options are transferred to deficit in the year of forfeiture or expiry. Amounts recorded for forfeited unvested options are reversed in the period the forfeiture occurs. Share-based payment expense relating to cash-settled awards, including restricted share units is accrued over the vesting period of the units based on the quoted market value of Company’s common shares. As these awards will be settled in cash, the expense and liability are adjusted each reporting period for changes in the underlying share price.
Restricted Share Units	Restricted Share Units The restricted share units (“RSUs”) entitle employees, directors, or officers to cash payments payable upon vesting based on vesting terms determined by the Company’s Board of Directors at the time of the grant. RSUs are measured at the fair value of awards on the grant date using the prior days closing price. Amounts recorded for forfeited unvested RSUs are reversed in the period the forfeiture occurs. The expense is recognized on a graded vesting basis over the vesting period, with a corresponding charge to profit or loss.
Loss per share	Loss per share Basic loss per share is calculated by dividing the loss attributable to common shareholders by the weighted average number of common shares outstanding in the period. For all periods presented, the loss attributable to common shareholders equals the reported loss attributable to owners of the Company. Diluted income per share is calculated by the treasury stock method. Under the treasury stock method, the weighted average number of common shares outstanding for the calculation of diluted loss per share assumes that the proceeds to be received on the exercise of dilutive share options and warrants are used to repurchase common shares at the average market price during the period. For the periods presented, the Company incurred a loss and therefore basic loss per share equals diluted loss per share. a) Financial assets Classification and measurement The Company classifies its financial assets in the following categories: at fair value through profit or loss (“FVTPL”), at fair value through other comprehensive income (“FVTOCI”) or at amortized cost. The classification depends on the purpose for which the financial assets were acquired. Management determines the classification of its financial assets at initial recognition. Draganfly Inc. Notes to the Consolidated Financial Statements For The Year Ended December 31, 2021 Expressed in Canadian Dollars 2. SIGNIFICANT ACCOUNTING POLICIES AND BASIS OF PREPARATION (CONT’D The classification of debt instruments is driven by the business model for managing the financial assets and their contractual cash flow characteristics. Debt instruments are measured at amortized cost if the business model is to hold the instrument for collection of contractual cash flows and those cash flows are solely principal and interest. If the business model is not to hold the debt instrument, it is classified as FVTPL. Financial assets with embedded derivatives are considered in their entirety when determining whether their cash flows are solely payments of principal and interest. Equity instruments that are held for trading (including all equity derivative instruments) are classified as FVTPL, for other equity instruments, on the day of acquisition the Company can make an irrevocable election (on an instrument by-instrument basis) to designate them as at FVTOCI. Financial assets at FVTPL Financial assets carried at FVTPL are initially recorded at fair value and transaction costs are expensed in the income statement. Realized and unrealized gains and losses arising from changes in the fair value of the financial asset held at FVTPL are included in the income statement in the period in which they arise. Derivatives are also categorized as FVTPL unless they are designated as hedges. Financial assets at FVTOCI Investments in equity instruments at FVTOCI are initially recognized at fair value plus transaction costs. Subsequently they are measured at fair value, with gains and losses arising from changes in fair value recognized in other comprehensive income. There is no subsequent reclassification of fair value gains and losses to profit or loss following the derecognition of the investment. Financial assets at amortized cost Financial assets at amortized cost are initially recognized at fair value and subsequently carried at amortized cost less any impairment. They are classified as current assets or non-current assets based on their maturity date. Impairment of financial assets at amortized cost The Company recognizes a loss allowance for expected credit losses on financial assets that are measured at amortized cost. At each reporting date, the loss allowance for the financial asset is measured at an amount equal to the lifetime expected credit losses if the credit risk on the financial asset has increased significantly since initial recognition. If at the reporting date, the financial asset has not increased significantly since initial recognition, the loss allowance is measured for the financial asset at an amount equal to twelve month expected credit losses. For trade receivables the Company applies the simplified approach to providing for expected credit losses, which allows the use of a lifetime expected loss provision. Impairment losses on financial assets carried at amortized cost are reversed in subsequent periods if the amount of the loss decreases and the decrease can be objectively related to an event occurring after the impairment was recognized. Derecognition of financial assets Financial assets are derecognized when they mature or are sold, and substantially all the risks and rewards of ownership have been transferred. Gains and losses on derecognition of financial assets classified as FVTPL or amortized cost are recognized in the income statement. Gains or losses on financial assets classified as FVTOCI remain within accumulated other comprehensive income. Draganfly Inc. Notes to the Consolidated Financial Statements For The Year Ended December 31, 2021 Expressed in Canadian Dollars 2. SIGNIFICANT ACCOUNTING POLICIES AND BASIS OF PREPARATION (CONT’D b) Financial liabilities The Company classifies its financial liabilities into one of two categories as follows: Fair value through profit or loss (FVTPL) - This category comprises derivatives and financial liabilities incurred principally for the purpose of selling or repurchasing in the near term. They are carried at fair value with changes in fair value recognized in profit or loss. Other financial liabilities - This category consists of liabilities carried at amortized cost using the effective interest method. Trade payables, customer deposits and loans are included in this category. The Company derecognizes a financial liability when its contractual obligations are discharged, cancelled or expire. Derecognition of financial liabilities Financial liabilities are derecognized when its contractual obligations are discharged, cancelled, or expire. The Company also derecognizes a financial liability when the terms of the liability are modified such that the terms and/or cash flows of the modified instrument are substantially different, in which case a new financial liability based on the modified terms is recognized at fair value. Gains and losses on derecognition are generally recognized in profit or loss.
Impairment of non-financial assets	Impairment of non-financial assets The carrying amounts of the Company’s non-financial assets are reviewed at each reporting date to determine whether there is any indication of impairment. If indicators exist, then the asset’s recoverable amount is estimated. The recoverable amounts of the following types of intangible assets are measured annually, whether or not there is any indication that it may be impaired: ● an intangible asset with an indefinite useful life; ● an intangible asset not yet available for use; and ● goodwill recognized in a business combination. The recoverable amount of an asset or cash-generating unit (“CGU”) is the greater of its value in use and its fair value less costs to sell. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset. For the purpose of impairment testing, assets that cannot be tested individually are grouped together into the smallest identifiable group of assets that generates cash inflows from continuing use that are largely independent of the cash inflows of other assets or groups of assets. If there is an indication that a corporate asset may be impaired, then the recoverable amount is determined for the CGU to which the corporate asset belongs. An impairment loss is recognized if the carrying amount of an asset or its CGU exceeds its estimated recoverable amount. Impairment losses are recognized in the statement of comprehensive loss. Impairment losses recognized in respect of CGUs are allocated first to reduce the carrying amount of any goodwill allocated to the units, and then to reduce the carrying amounts of the other assets in the unit (group of units) on a pro rata basis. In respect of assets other than goodwill and intangible assets that have indefinite useful lives, impairment losses recognized in prior periods are assessed at each reporting date for any indications that the loss has decreased or no longer exists. An impairment loss is reversed in a subsequent period when there has been an increase in the recoverable amount of a previously impaired asset or CGU. An impairment loss is reversed only to the extent that the asset’s carrying amount does not exceed the carrying amount that would have been determined, net of depreciation or amortization, if no impairment loss had been recognized.
Income taxes	Income taxes Current income tax: Current income tax assets and liabilities for the current period are measured at the amount expected to be recovered from or paid to the taxation authorities. The tax rates and tax laws used to compute the amount are those that are enacted or substantively enacted, at the reporting date, in the countries where the Company operates and generates taxable income. Current income tax relating to items recognized directly in other comprehensive income or equity is recognized in other comprehensive income or equity and not in profit or loss. Management periodically evaluates positions taken in the tax returns with respect to situations in which applicable tax regulations are subject to interpretation and establishes provisions where appropriate. Deferred income tax: Deferred income tax is recognized, using the asset and liability method, on temporary differences at the reporting date arising between the tax bases of assets and liabilities and their carrying amounts for financial reporting. The carrying amount of deferred income tax assets is reviewed at the end of each reporting period and recognized only to the extent that it is probable that sufficient taxable profit will be available to allow all or part of the deferred income tax asset to be utilized. Deferred income tax assets and liabilities are measured at the tax rates that are expected to apply to the year when the asset is realized or the liability is settled, based on tax rates (and tax laws) that have been enacted or substantively enacted by the end of the reporting period. Deferred income tax assets and deferred income tax liabilities are offset, if a legally enforceable right exists to set off current tax assets against current income tax liabilities and the deferred income taxes relate to the same taxable entity and the same taxation authority.
Inventory	Inventory Inventory consists of raw materials for manufacturing of multi-rotor helicopters, industrial areal video systems, civilian small unmanned aerial systems or vehicles, health monitoring equipment, and wireless video systems. Inventory is initially valued at cost and subsequently at the lower of cost and net realizable value. Net realizable value is determined as the estimated selling price in the ordinary course of business less the estimated costs of completion and the estimated costs necessary to make the sale. Cost is determined using the weighted average cost basis. The Company reviews inventory for obsolete and slow-moving goods and any such inventory is written-down to net realizable value.
Revenue recognition	Revenue recognition Revenue comprises the fair value of consideration received or receivable for the sale of goods and consulting services in the ordinary course of the Company’s business. Revenue is shown net of return allowances and discounts. Sales of goods The Company manufactures and sells a range of multi-rotor helicopters, industrial aerial video systems, and civilian small unmanned aerial systems or vehicles. Sales are recognized at a point-in-time when control of the products has transferred, being when the products are delivered to the customer and there is no unfulfilled obligation that could affect the customer’s acceptance of the products. Delivery occurs when the products have been shipped to the specific location or picked up by the customer, the risks of obsolescence and loss have been transferred to the customer. Revenue from these sales is recognized based on the price specified in the contract, net of the estimated discounts and returns. Accumulated experience is used to estimate and provide for the discounts and returns, using the expected value method, and revenue is only recognized to the extent that it is highly probable that a significant reversal will not occur. To date, returns have not been significant. No element of financing is deemed present as the sales are made with a credit term of 30 days, which is consistent with market practice. Some contracts include multiple deliverables, such as the manufacturing of hardware and support. Support is performed by another party and does not include an integration service. It is therefore accounted for as a separate performance obligation. In this case, the transaction price will be allocated to each performance obligation based on the stand-alone selling prices. Where these are not directly observable, they are estimated based on expect cost plus margin. A receivable is recognized when the goods are delivered as this is the point in time that the consideration is unconditional because only the passage of time is required before the payment is due. Services The Company provides consulting, custom engineering, drones as a service, and investigating and solving on a project-by-project basis under fixed-price and variable price contracts. Revenue from providing services is recognized in the accounting period in which the services are rendered. For fixed-price contracts, revenue is recognized based on the actual service provided to the end of the reporting period as a proportion of the total services to be provided. This is determined based on the actual labour hours spend relative to the total expected labour hours. If contracts include the manufacturing of hardware, revenue for the hardware is recognized at a point in time when the hardware is delivered, the legal title has passed and the customer has accepted the hardware. Estimates of revenues, costs or extent of progress toward completion are revised if circumstances change. Any resulting increases or decreases in estimated revenues or costs are reflected in profit or loss in the period in which the circumstances that give rise to the revision become known by management. Draganfly Inc. Notes to the Consolidated Financial Statements For The Year Ended December 31, 2021 Expressed in Canadian Dollars 2. SIGNIFICANT ACCOUNTING POLICIES AND BASIS OF PREPARATION (CONT’D In case of fixed-price contracts, the customer pays the fixed amount based on a payment schedule. If the services rendered by the Company exceed the payment, a contract asset is recognized. If the payments exceed the services rendered, a contract liability is recognized. If the contract includes an hourly fee, revenue is recognized in the amount to which the Company has a right to invoice. Customers are invoiced on a monthly basis and consideration is payable when invoiced.
Cost of Goods Sold	Cost of Goods Sold Cost of sales includes the expenses incurred to acquire and produce inventory for sale, including product costs, freight costs, as well as provisions for reserves related to product shrinkage, excess or obsolete inventory, or lower of cost and net realizable value adjustments as required.
Intangible Assets and Goodwill	Intangible Assets and Goodwill An intangible asset is an identifiable asset without physical substance. An asset is identifiable if it is separable, or arises from contractual or legal rights, regardless of whether those rights are transferrable or separable from the Company or from other rights and obligations. Intangible assets include intellectual property, which consists of patent and trademark applications. Intangible assets acquired externally are measured at cost less accumulated amortization and impairment losses. The cost of a group of intangible assets acquired is allocated to the individual intangible assets based on their relative fair values. The cost of intangible assets acquired externally comprises its purchase price and any directly attributable cost of preparing the asset for its intended use. Research and development costs incurred subsequent to the acquisition of externally acquired intangible assets and on internally generated intangible assets are accounted for as research and development costs. Intangible assets with finite useful lives are amortized on a straight line basis over the expected life of each intellectual property to write off the cost of the assets from the date they are available for use. Goodwill represents the excess of the value of the consideration transferred over the fair value of the net identifiable assets and liabilities acquired in a business combination. Goodwill is allocated to the cash generating unit to which it relates.
Equipment	Equipment Equipment is stated at historical cost less accumulated depreciation and accumulated impairment losses. Subsequent costs are included in the asset’s carrying amount or recognized as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the item will flow to the Company and the cost of the item can be measured reliably. The carrying amount of the replaced part is derecognized. All other repairs and maintenance are charged to the statement of comprehensive loss during the financial period in which they are incurred. Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognized in the statement of comprehensive loss. Depreciation is generally calculated on a declining balance method to write off the cost of the assets to their residual values over their estimated useful lives. Depreciation for leasehold improvements is fully expensed over the expected term of the lease. The depreciation rates applicable to each category of equipment are as follows: Draganfly Inc. Notes to the Consolidated Financial Statements For The Year Ended December 31, 2021 Expressed in Canadian Dollars 2. SIGNIFICANT ACCOUNTING POLICIES AND BASIS OF PREPARATION (CONT’D) SCHEDULE OF CLASS OF EQUIPMENT Class of equipment Depreciation rate Computer equipment 30% Furniture and equipment 20% Leasehold improvements Over expected life of lease Software 30% Vehicles 30%
Research and development expenditures	Research and development expenditures Expenditures on research are expensed as incurred. Research activities include formulation, design, evaluation and final selection of possible alternatives, products, processes, systems or services. Development expenditures are expensed as incurred unless the Company can demonstrate all of the following: (i) the technical feasibility of completing the intangible asset so that it will be available for use or sale; (ii) its intention to complete the intangible asset and use or sell it; (iii) its ability to use or sell the intangible asset; (iv) how the intangible asset will generate probable future economic benefits. Among other things, the Company can demonstrate the existence of a market for the output of the intangible asset or the intangible asset itself or, if it is to be used internally, the usefulness of the intangible asset; (v) the availability of adequate technical, financial and other resources to complete the development and to use or sell the intangible asset; and (vi) its ability to measure reliably the expenditure attributable to the intangible asset during its development.
Government Assistance	Government Assistance Government grants are recognized when there is reasonable assurance that the grant will be received and all attached conditions will be complied with. When the grant relates to an expense item, it is recognized as income on a systematic basis over the period that the related costs, for which it is intended to compensate, are expensed. When the grant relates to an asset, the cost of the asset is reduced by the amount of the grant and the grant is recognized as income in equal amounts over the expected useful life of the asset.
SR&ED Investment tax credits	SR&ED Investment tax credits The Company claims federal investment tax credits as a result of incurring scientific research and experimental development (“SR&ED”) expenditures. Federal investment tax credits are recognized when the related expenditures are incurred and there is reasonable assurance of their realization. Federal investment tax credits are accounted for as a reduction of research and development expense for items of a period expense nature or as a reduction of property and equipment for items of a capital nature. Management has made a number of estimates and assumptions in determining the expenditures eligible for the federal investment tax credit claim. It is possible that the allowed amount of the federal investment tax credit claim could be materially different from the recorded amount upon assessment by Canada Revenue Agency. The Company claims provincial investment tax credits as a result of incurring SR&ED expenditures. Provincial investment tax credits are recognized when the related expenditures are incurred and there is reasonable assurance of their realization. Management has made a number of estimates and assumptions in determining the expenditures eligible for the provincial investment tax credit claim. The provincial investment tax credits are refundable and have been recorded as a SR&ED tax credit receivable, and as a reduction in research and development expenses on the statement of comprehensive loss. It is possible that the allowed amount of the provincial investment tax credit claim could be materially different from the recorded amount upon assessment by Canada Revenue Agency and the Alberta Tax and Revenue Administration.
Leases	Leases A contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. At the commencement date, the lease liability is recognized at the present value of the future lease payments and discounted using the interest rate implicit in the lease or the Company’s incremental borrowing rate. A corresponding right-of-use (“ROU”) asset will be recognized at the amount of the lease liability, adjusted for any lease incentives received and initial direct costs incurred. Over the term of the lease, financing expense is recognized on the lease liability using the effective interest rate method and charged to net income, lease payments are applied against the lease liability and depreciation on the ROU asset is recorded by class of underlying asset. The lease term is the non-cancellable period of a lease and includes periods covered by an optional lease extension option if reasonably certain the Company will exercise the option to extend. Conversely, periods covered by an option to terminate are included if the Company does not expect to end the lease during that time frame. Leases with a term of less than twelve months or leases for underlying low value assets are recognized as an expense in net income on a straight-line basis over the lease term. A lease modification will be accounted for as a separate lease if it materially changes the scope of the lease. For a modification that is not a separate lease, on the effective date of the lease modification, the Company will remeasure the lease liability and corresponding ROU asset using the interest rate implicit in the lease or the Company’s incremental borrowing rate. Any variance between the remeasured ROU asset and lease liability will be recognized as a gain or loss in net income to reflect the change in scope.

BASIS OF PREPARATION (Tables)

BASIS OF PREPARATION (Tables)	12 Months Ended
BASIS OF PREPARATION (Tables)	Dec. 31, 2021
SCHEDULE OF RESULTS OF OPERATIONS	The consolidated financial statements include the accounts and results of operations of the Company and its wholly owned subsidiaries listed in the following table: SCHEDULE OF RESULTS OF OPERATIONS Name of Subsidiary Place of Incorporation Ownership Interest Draganfly Innovations Inc. Canada 100% Draganfly Innovations USA, Inc. US 100% Dronelogics Systems Inc. Canada 100%
SCHEDULE OF CLASS OF EQUIPMENT	SCHEDULE OF CLASS OF EQUIPMENT Class of equipment Depreciation rate Computer equipment 30% Furniture and equipment 20% Leasehold improvements Over expected life of lease Software 30% Vehicles 30%

DRONELOGICS ACQUISITION (Tables

DRONELOGICS ACQUISITION (Tables)	12 Months Ended
DRONELOGICS ACQUISITION (Tables)	Dec. 31, 2021
SCHEDULE OF PURCHASE PRICE ALLOCATION	The purchase price allocation (“PPA”) is as follows: SCHEDULE OF PURCHASE PRICE ALLOCATION Number of shares of Draganfly Inc. 645,088 Fair value of common shares $ 4.15 Fair value of shares of Draganfly Inc. $ 2,178,960 Cash portion of purchase price 500,000 Total $ 2,678,960 Draganfly Inc. Notes to the Consolidated Financial Statements For The Year Ended December 31, 2021 Expressed in Canadian Dollars 3. DRONELOGICS ACQUISITION (CONT’D) Tangible assets acquired Cash $ 42,593 Accounts receivable 98,852 Inventory 629,684 Prepaids and deposits 93,997 Other current assets 3,014 Capital assets 54,946 Right-of-use assets 83,428 Accounts payable and accrued liabilities (222,766 ) Customer deposits (245,959 ) Loans (245,752 ) Other current liabilities (8,437 ) Lease liabilities (87,203 ) Total tangible assets acquired 196,397 Identifiable intangible assets Customer relationships 197,000 Website 119,000 Total identifiable intangible assets 316,000 Goodwill 2,166,563 Total consideration $ 2,678,960

VITAL INTELLIGENCE ACQUISITION

VITAL INTELLIGENCE ACQUISITION (Tables)	12 Months Ended
VITAL INTELLIGENCE ACQUISITION (Tables)	Dec. 31, 2021
Vital Intelligence Acquisition
SCHEDULE OF CONTINGENT CONSIDERATION	SCHEDULE OF CONTINGENT CONSIDERATION Contingent consideration Fair value of contingent consideration $ 4,797,717 Change in fair value of contingent consideration (4,103,487 ) Contingent consideration at December 31, 2021 (note 20) $ 694,230
SCHEDULE OF PURCHASE PRICE ALLOCATION FOR VITAL INTELLIGENCE	The PPA is as follows: SCHEDULE OF PURCHASE PRICE ALLOCATION FOR VITAL INTELLIGENCE Number of units of Draganfly Inc. 578,248 Fair value of units $ 14.43 Fair value of units of Draganfly Inc. $ 8,342,966 Cash portion of purchase price 466,643 Total $ 8,809,609 Identifiable intangible assets Brand $ 23,000 Software 433,000 456,000 Goodwill 8,353,609 Total consideration $ 8,809,609

AMALGAMATION (Tables)

AMALGAMATION (Tables)	12 Months Ended
AMALGAMATION (Tables)	Dec. 31, 2021
SUMMARY OF HISTORICAL FINANCIAL INFORMATION	SUMMARY OF HISTORICAL FINANCIAL INFORMATION Number of shares of Draganfly Inc. 2,100,000 Fair value of common shares in concurrent financing $ 2.50 Fair value of shares of Draganfly Inc. $ 5,250,001 Fair value of warrants 1,645,193 Fair value of shares issued for transaction fees 1,000,000 Net assets acquired $ (90,335 ) Listing expense $ 7,804,859 Fair value of the Company acquired, net of liabilities Cash $ 28,538 Accounts receivable 4,991 Loans receivable 963,269 Accounts payable and accrued liabilities (406,463 ) Subscription receipts (500,000 ) Net of liabilities $ 90,335
SUMMARY OF FAIR VALUE MEASUREMENT INPUTS AND VALUATION TECHNIQUES	SUMMARY OF FAIR VALUE MEASUREMENT INPUTS AND VALUATION TECHNIQUES Risk-free interest rate 0.86 Estimate life 1.48 Expected volatility 100 Expected dividend yield 0

CASH AND CASH EQUIVALENTS (Tabl

CASH AND CASH EQUIVALENTS (Tables)	12 Months Ended
CASH AND CASH EQUIVALENTS (Tables)	Dec. 31, 2021
SCHEDULE OF CASH AND CASH EQUIVALENTS	SCHEDULE OF CASH AND CASH EQUIVALENTS December 31, 2021 December 31, 2020 Cash held in banks $ 22,729,212 $ 1,839,871 Guaranteed investment certificates 346,501 142,545 Cash and Cash Equivalents $ 23,075,713 $ 1,982,416

RECEIVABLES (Tables)

RECEIVABLES (Tables)	12 Months Ended
RECEIVABLES (Tables)	Dec. 31, 2021
Schedule Of Amounts Receivable
SCHEDULE OF AMOUNTS RECEIVABLE	SCHEDULE OF AMOUNTS RECEIVABLE December 31, 2021 December 31, 2020 Trade accounts receivable $ 951,314 $ 780,254 Corporate taxes receivable 182,820 - GST receivable 272,993 $ - SR&ED receivable - 30,537 Trade and other receivables $ 1,407,127 $ 810,791

INVENTORY (Tables)

INVENTORY (Tables)	12 Months Ended
INVENTORY (Tables)	Dec. 31, 2021
SCHEDULE OF INVENTORIES	SCHEDULE OF INVENTORIES December 31, 2021 December 31, 2020 December 31, 2019 Finished goods $ 3,017,363 $ 1,155,871 $ - Parts 373,459 77,748 48,653 Inventories $ 3,390,822 $ 1,233,619 $ 48,653
SCHEDULE OF COST OF SALES	SCHEDULE OF COST OF SALES December 31, 2021 December 31, 2020 December 31, 2019 Inventory $ 3,420,713 $ 2,257,797 $ 118,626 Consulting and services 679,345 164,119 86,280 Other 310,719 181,995 13,894 Cost of sales $ 4,410,777 $ 2,603,911 $ 218,800

NOTES RECEIVABLE (Tables)

NOTES RECEIVABLE (Tables)	12 Months Ended
NOTES RECEIVABLE (Tables)	Dec. 31, 2021
Notes Receivable
DISCLOSURE OF NOTES RECEIVABLE	DISCLOSURE OF NOTES RECEIVABLE Start Date Maturity Date Rate Principal Interest Accretion Impairment Total Note 1 (1) 2021-04-21 2022-10-21 0 % $ 180,597 $ - $ 9,573 $ - $ 190,170 Note 2 (1) 2021-06-01 2023-06-01 8 % 114,833 5,378 - (120,211 ) - Note 3 (1) 2021-09-22 2024-09-22 5 % 943,385 13,156 7,465 - 964,006 Note 4 2021-11-17 2022-04-26 8 % 750,000 21,260 - (771,260 ) - Total $ 1,988,815 $ 39,794 $ 17,038 $ (891,471 ) $ 1,154,176 (1) These notes are denominated in US dollars and are converted to Canadian dollars at the reporting date.

PREPAIDS (Tables)

PREPAIDS (Tables)	12 Months Ended
PREPAIDS (Tables)	Dec. 31, 2021
SCHEDULE OF PREPAID EXPENSES AND DEPOSITS	SCHEDULE OF PREPAID EXPENSES AND DEPOSITS December 31, 2021 December 31, 2020 Insurance $ 2,938,246 $ 992 Prepaid director fees 107,763 - Prepaid interest 6,969 - Prepaid marketing services 1,638,179 187,826 Prepaid rent - 3,583 Prepaid subscriptions 35,687 5,953 Deposits 768,033 136,668 Prepaid expenses and deposits $ 5,494,877 $ 335,022

INVESTMENTS (Tables)

INVESTMENTS (Tables)	12 Months Ended
INVESTMENTS (Tables)	Dec. 31, 2021
Disclosure Investments Abstract
SCHEDULE OF INVESTMENTS	SCHEDULE OF INVESTMENTS Balance at December 31, 2020 $ - Investments 623,706 Change in fair value (332,640 ) Balance at December 31, 2021 $ 291,066 Fair value of investments is comprised of: . Public company shares $ 142,857 Public company warrants 21,429 Private company shares 126,780 Balance at December 31, 2021 $ 291,066
SCHEDULE OF WEIGHTED AVERAGE ASSUMPTION FOR FAIR VALUES WARRANTS	The fair values of these warrants were estimated using the Black-Scholes option pricing model with the following weighted average assumptions: SCHEDULE OF WEIGHTED AVERAGE ASSUMPTION FOR FAIR VALUES WARRANTS December 31, 2021 March 10, 2021 Risk free interest rate 0.91 % 0.28 % Expected volatility 124.09 % 150.88 % Expected life 2 years 2 years Expected dividend yield 0 % 0 %

EQUIPMENT (Tables)

EQUIPMENT (Tables)	12 Months Ended
EQUIPMENT (Tables)	Dec. 31, 2021
Disclosure of detailed information about property, plant and equipment [abstract]
SCHEDULE OF PROPERTY, PLANT AND EQUIPMENT	SCHEDULE OF PROPERTY, PLANT AND EQUIPMENT Computer Equipment Furniture and Equipment Leasehold Improvements Software Vehicles Total Cost Balance at January 1, 2020 $ 7,000 $ 142,173 $ - $ 29,967 $ - $ 179,140 Additions 2,028 21,860 - - - 23,888 Net assets acquired in the 15,369 7,573 4,352 - 27,652 54,946 Balance at December 31, 2020 $ 24,397 $ 171,606 $ 4,352 $ 29,967 $ 27,652 $ 257,974 Property, plant and equipment, beginning balance $ 24,397 $ 171,606 $ 4,352 $ 29,967 $ 27,652 $ 257,974 Additions 29,713 170,866 - - 12,000 212,579 Revaluation - - - - (3,619 ) (3,619 ) Balance at December 31, 2021 $ 54,110 $ 342,472 $ 4,352 $ 29,967 $ 36,033 $ 466,934 Property, plant and equipment, ending balance $ 54,110 $ 342,472 $ 4,352 $ 29,967 $ 36,033 $ 466,934 Accumulated depreciation Balance at January 1, 2020 $ 6,761 $ 37,944 $ - $ 19,294 $ - $ 63,999 Charge for the year 5,631 22,019 3,220 3,202 6,033 40,105 Balance at December 31, 2020 $ 12,392 $ 59,963 $ 3,220 $ 22,496 $ 6,033 $ 104,104 Accumulated depreciation Property, plant and equipment, beginning balance $ 12,392 $ 59,963 $ 3,220 $ 22,496 $ 6,033 $ 104,104 Charge for the year 12,899 42,314 1,132 2,241 7,201 65,787 Balance at December 31, 2021 $ 25,291 $ 102,277 $ 4,352 $ 24,737 $ 13,234 $ 169,891 Accumulated depreciation Property, plant and equipment, ending balance $ 25,291 $ 102,277 $ 4,352 $ 24,737 $ 13,234 $ 169,891 Net book value: December 31, 2020 $ 12,005 $ 111,643 $ 1,132 $ 7,471 $ 21,619 $ 153,870 December 31, 2021 $ 28,819 $ 240,195 $ - $ 5,230 $ 22,799 $ 297,043 Property, plant and equipment $ 28,819 $ 240,195 $ - $ 5,230 $ 22,799 $ 297,043

INTANGIBLE ASSETS AND GOODWILL

INTANGIBLE ASSETS AND GOODWILL (Tables)	12 Months Ended
INTANGIBLE ASSETS AND GOODWILL (Tables)	Dec. 31, 2021
SCHEDULE OF INTELLECTUAL PROPERTY	SCHEDULE OF INTELLECTUAL PROPERTY Patents Customer Relationships Brand Software Goodwill Total Cost Balance at December 31, 2019 $ 41,931 $ - $ $ - $ - $ 41,931 Intangible assets acquired in the Transaction - 197,000 - 119,000 2,166,563 2,482,563 Balance at December 31, 2020 $ 41,931 $ 197,000 $ - $ 119,000 $ 2,166,563 $ 2,524,494 Intellectual properties and goodwill, beginning balance $ 41,931 $ 197,000 $ - $ 119,000 $ 2,166,563 $ 2,524,494 Intangible assets acquired in the Acquisition - - 23,000 433,000 8,353,609 8,809,609 Impairment of goodwill - - - - (4,579,763 ) (4,579,763 ) Balance at December 31, 2021 $ 41,931 $ 197,000 $ 23,000 $ 552,000 $ 5,940,409 $ 6,754,340 Intellectual properties and goodwill, Ending balance $ 41,931 $ 197,000 $ 23,000 $ 552,000 $ 5,940,409 $ 6,754,340 Accumulated amortization Balance at December 31, 2019 $ 40,546 $ - $ - $ - $ - $ 40,546 Change for the year 1,385 26,267 - 15,866 - 43,518 Balance at December 31, 2020 41,931 26,267 - 15,866 - 84,064 Accumulated amortization, beginning balance $ 41,931 $ 26,267 - $ 15,866 $ - $ 84,064 Change for the year - 34,147 3,450 98,369 - 135,966 Balance at December 31, 2021 $ 41,931 $ 60,414 $ 3,450 $ 114,235 $ - $ 220,030 Accumulated amortization, ending balance $ 41,931 $ 60,414 $ 3,450 $ 114,235 $ - $ 220,030 Net book value: December 31, 2020 $ - $ 170,733 $ - $ 103,134 $ 2,166,563 $ 2,440,430 December 31, 2021 $ - $ 136,586 $ 19,550 $ 437,765 $ 5,940,409 $ 6,534,310 Intellectual properties and goodwill $ - $ 136,586 $ 19,550 $ 437,765 $ 5,940,409 $ 6,534,310

RIGHT OF USE ASSETS (Tables)

RIGHT OF USE ASSETS (Tables)	12 Months Ended
RIGHT OF USE ASSETS (Tables)	Dec. 31, 2021
Right Of Use Assets
SCHEDULE OF RIGHT OF USE ASSETS	SCHEDULE OF RIGHT OF USE ASSETS Total Cost Balance at December 31, 2019 $ 159,539 Leases acquired in the Acquisition 83,428 Balance at December 31, 2020 $ 242,967 Additions 447,242 Lease removal (7,092 ) Balance at December 31, 2021 $ 683,117 Accumulated depreciation Balance at December 31, 2019 $ 29,545 Charge for the year 69,003 Balance at December 31, 2020 $ 98,548 Historical correction 7,152 Charge for the year 109,311 Balance at December 31, 2021 $ 215,011 Net book value: December 31, 2020 $ 144,419 December 31, 2021 $ 468,106

LEASE LIABILITY (Tables)

LEASE LIABILITY (Tables)	12 Months Ended
LEASE LIABILITY (Tables)	Dec. 31, 2021
Lease Liability
SCHEDULE OF OPERATING LEASE LIABILITIES	SCHEDULE OF OPERATING LEASE LIABILITIES Total Balance at December 31, 2019 $ 136,073 Leases acquired in the Acquisition 87,203 Interest expense 18,290 Lease Payments (83,442 ) Balance at December 31, 2020 $ 158,124 Addition 440,675 Interest expense 26,964 Lease payments (128,995 ) Lease removal (7,645 ) Balance at December 31, 2021 $ 489,123 Which consists of: Current lease liability $ 110,481 Non-current lease liability 378,642 Balance at December 31, 2021 $ 489,123
SCHEDULE OF OPERATING MATURITY ANALYSIS	SCHEDULE OF OPERATING MATURITY ANALYSIS Maturity analysis Total Less than one year $ 150,276 One to three years 251,765 Four to five years 183,473 Greater than five years 5,030 Total undiscounted lease liabilities 590,544 Maturity analysis 590,544 Amount representing implicit interest (101,421 ) Lease liability $ 489,123

TRADE PAYABLES AND ACCRUED LI_2

TRADE PAYABLES AND ACCRUED LIABILITIES (Tables)	12 Months Ended
TRADE PAYABLES AND ACCRUED LIABILITIES (Tables)	Dec. 31, 2021
Trade Payables And Accrued Liabilities
SCHEDULE OF TRADE PAYABLES AND ACCRUED LIABILITIES	SCHEDULE OF TRADE PAYABLES AND ACCRUED LIABILITIES December 31, 2021 December 31, 2020 Trade accounts payable $ 362,890 $ 813,881 Accrued liabilities 402,540 512,205 Due to related parties (Note 23) - 475,628 Government grant payable 33,709 33,709 GST/PST Payable - 21,754 Trade payables and accrued liabilities $ 799,139 $ 1,857,177

CUSTOMER DEPOSITS (Tables)

CUSTOMER DEPOSITS (Tables)	12 Months Ended
CUSTOMER DEPOSITS (Tables)	Dec. 31, 2021
Customer Deposits
SCHEDULE OF CUSTOMER DEPOSITS	SCHEDULE OF CUSTOMER DEPOSITS December 31, 2021 December 31, 2020 Customer deposits $ 172,134 $ 385,449

DEFERRED INCOME (Tables)

DEFERRED INCOME (Tables)	12 Months Ended
DEFERRED INCOME (Tables)	Dec. 31, 2021
SCHEDULE OF DEFERRED INCOME	SCHEDULE OF DEFERRED INCOME December 31, 2021 December 31, 2020 Deferred income from customers $ 80,000 $ - Deferred income from government 5,233 5,062 Deferred income from note receivable accretion (11,947 ) - Deferred Income 73,286 5,062

LOANS PAYABLE (Tables)

LOANS PAYABLE (Tables)	12 Months Ended
LOANS PAYABLE (Tables)	Dec. 31, 2021
Loans Payable
SCHEDULE OF LOANS PAYABLE	SCHEDULE OF LOANS PAYABLE December 31, 2021 December 31, 2020 Opening balance $ 97,916 $ - Acquisition of loans - 120,851 Issuance of loans payable 60,000 60,000 Fair value adjustment (24,576 ) (26,152 ) Repayment of loans payable (44,428 ) (57,873 ) Accretion expense 4,405 1,090 Ending balance $ 93,317 $ 97,916
SCHEDULE OF LOANS	SCHEDULE OF LOANS Start Date Maturity Date Rate Carrying Value December 31, 2021 Carrying Value December 31, 2020 CEBA 2020-05-19 2022-12-31 0 % $ 37,384 $ 34,938 CEBA 2021-04-23 2022-12-31 0 % 37,383 - Vehicle loan 2019-08-30 2024-09-11 6.99 % 18,550 25,295 Shopify loan 2020-08-05 7.00 % - 37,683 Total $ 93,317 $ 97,916

SHARE CAPITAL (Tables)

SHARE CAPITAL (Tables)	12 Months Ended
SHARE CAPITAL (Tables)	Dec. 31, 2021
Share Capital
SCHEDULE OF STOCK OPTIONS OUTSTANDING AND EXERCISABLE	As at December 31, 2021, the Company had the following options outstanding and exercisable: SCHEDULE OF STOCK OPTIONS OUTSTANDING AND EXERCISABLE Grant Date Expiry Date Exercise Price Remaining Contractual Life (years) Number of Options Outstanding Number of Options Exercisable October 30, 2019 October 30, 2029 $ 2.50 7.84 296,665 296,665 November 19, 2019 November 19, 2029 $ 2.50 7.89 50,000 50,000 April 30, 2020 April 30, 2030 $ 2.50 8.33 87,000 78,666 April 30, 2020 April 30, 2030 $ 3.85 8.33 110,000 70,000 July 3, 2020 July 3, 2025 $ 3.20 3.51 200,000 166,666 November 24, 2020 November 24, 2030 $ 2.50 8.90 32,000 21,000 December 11, 2020 December 11, 2030 $ 2.15 8.95 12,500 12,500 February 2, 2021 February 2, 2031 $ 13.20 9.09 30,000 10,000 March 8, 2021 March 8, 2026 $ 13.90 4.19 10,000 5,000 April 27, 2021 April 27, 2031 $ 10.15 9.23 182,000 - September 9, 2021 September 9, 2026 $ 4.84 4.69 25,826 - 1,035,991 710,497
SUMMARY OF CHANGES IN STOCK OPTIONS	SUMMARY OF CHANGES IN STOCK OPTIONS Number of Options Weighted Average Exercise Price Outstanding, December 31, 2019 744,993 $ 2.50 Forfeited (43,334 ) 2.50 Granted 492,000 3.08 Outstanding, December 31, 2020 1,193,659 $ 2.75 Exercised (405,494 ) 2.50 Granted 247,826 10.12 Outstanding, December 31, 2021 1,035,991 $ 4.60
SCHEDULE OF WEIGHTED AVERAGE ASSUMPTIONS	SCHEDULE OF WEIGHTED AVERAGE ASSUMPTIONS Year ended December 31, 2021 2020 2019 Risk free interest rate 0.69% 1.40% 0.43% 0.66% 1.45% 1.46 % Expected volatility 62.84% 113.16% 113.53% 119.03% 100 % Expected life 5 years 5 10 7.5 Expected dividend yield 0 % 0 % 0 % Exercise price $ 4.84 13.90 $ 2.15 3.85 $ 2.50
SUMMARY OF CHANGES IN RESTRICTED STOCK UNITS	As at December 31, 2021, the Company had the following RSUs outstanding: SUMMARY OF CHANGES IN RESTRICTED STOCK UNITS Number of RSUs Outstanding, December 31, 2019 634,997 Vested (199,998 ) Forfeited (68,333 ) Issued 248,000 Outstanding, December 31, 2020 614,666 Vested (448,660 ) Issued 348,826 Outstanding, December 31, 2021 514,832
SCHEDULE OF WARRANT DERIVATIVE LIABILITY	Warrant Derivative Liability SCHEDULE OF WARRANT DERIVATIVE LIABILITY Balance at January 1, 2020 $ - Warrant issuance 281,732 Change in fair value of warrants outstanding 466,902 Balance at December 31, 2020 $ 748,634 Warrant issuance 8,261,511 Exercised (98,048 ) Change in fair value of warrants outstanding (4,046,325 ) Warrant Balance at December 31, 2021 4,865,772 Derivative liability Warrants $ 4,865,772 Contingent consideration (note 4) 694,230 Contingent consideration at December 31, 2021 $ 5,560,002
SCHEDULE OF WARRANTS AND FAIR VALUE OUTSTANDING	SCHEDULE OF WARRANTS AND FAIR VALUE OUTSTANDING Issue Date Exercise Price Number of Warrants Outstanding at December 31, 2021 Fair Value at December 31, 2021 Number of Warrants Outstanding at December 31, 2020 Fair Value at December 31, 2020 November 30, 2020 US$ 3.55 482,425 $ 182,262 511,299 $ 748,634 February 5, 2021 US$ 3.55 1,323,275 951,226 - - March 5, 2021 US$ 3.55 5,154,321 3,731,285 - - July 29, 2021 US$ 5.00 250,000 84,625 - - September 14, 2021 US$ 5.00 4,798 1,685 - - 7,214,819 $ 4,865,772 511,299 $ 748,634
SCHEDULE OF WEIGHTED AVERAGE ASSUMPTION FOR WARRANTS	SCHEDULE OF WEIGHTED AVERAGE ASSUMPTION FOR WARRANTS Year ended December 31, 2021 2020 Risk free interest rate 0.23% - 0.95 0.20% 0.24% Expected volatility 70.95% 144.59% 72.76% 74.10% Expected life 2 3 2 Expected dividend yield 0% 0%
SUMMARY OF CHANGES IN WARRANTS	SUMMARY OF CHANGES IN WARRANTS Number of Warrants Weighted Average Exercise Price Outstanding, December 31, 2019 3,610,340 $ 2.05 Exercised (1,584,775 ) 1.50 Forfeited (120,000 ) 2.50 Issued 511,299 3.55 Outstanding, December 31, 2020 2,416,864 $ 2.95 Exercised (1,939,534 ) 2.54 Forfeited (6,000 ) 2.50 Issued 7,943,489 5.10 Outstanding, December 31, 2021 8,414,819 $ 4.99
SCHEDULE OF WARRANTS OUTSTANDING	As at December 31, 2021, the Company had the following warrants outstanding: SCHEDULE OF WARRANTS OUTSTANDING Date issued Expiry date Exercise price Number of warrants outstanding November 30, 2020 November 30, 2022 US$ 3.55 482,425 February 5, 2021 February 5, 2023 US$ 3.55 1,323,275 March 5, 2021 March 5, 2023 US$ 3.55 5,154,321 March 22, 2021 March 22, 2023 CDN$ 13.35 1,200,000 July 29, 2021 July 29, 2024 US$ 5.00 250,000 September 14, 2021 September 14, 2024 US$ 5.00 4,798 8,414,819

REVENUE (Tables)

REVENUE (Tables)	12 Months Ended
REVENUE (Tables)	Dec. 31, 2021
Revenue
SCHEDULE OF PRODUCT AND SERVICE REVENUE	SCHEDULE OF PRODUCT AND SERVICE REVENUE For the years ended December 31, 2021 2020 2019 Product sales $ 5,103,399 $ 3,087,223 $ 248,939 Drone service 1,304,799 630,532 - Services 645,667 645,756 1,131,488 Revenue $ 7,053,865 $ 4,363,511 $ 1,380,427
SCHEDULE OF GEOGRAPHIC REVENUE	Geographic revenue segmentation is as follows: SCHEDULE OF GEOGRAPHIC REVENUE For the years ended December 31, 2021 2020 2019 Canada $ 4,937,935 $ 2,270,862 $ 127,118 United States 2,071,492 1,982,404 1,251,199 International 44,438 110,245 2,110 Revenue $ 7,053,865 $ 4,363,511 $ 1,380,427
SCHEDULE OF OPERATING SEGMENTS	Non current assets for each geographic segment are as follows: SCHEDULE OF OPERATING SEGMENTS Canada United States International For the years ended December 31, Canada United States International Goodwill $ 2,166,564 $ 3,773,845 $ - Property and equipment 297,043 - - Intangible assets 219,093 374,808 - Investments 291,066 - - Notes receivable - 964,006 - Right of use assets 468,106 - - TOTAL ASSETS $ 3,441,872 $ 5,112,659 $ - Draganfly Inc. Notes to the Consolidated Financial Statements For The Year Ended December 31, 2021 Expressed in Canadian Dollars

OFFICE AND MISCELLANEOUS (Table

OFFICE AND MISCELLANEOUS (Tables)	12 Months Ended
OFFICE AND MISCELLANEOUS (Tables)	Dec. 31, 2021
Office And Miscellaneous
SCHEDULE OF OFFICE AND MISCELLANEOUS EXPENSES	SCHEDULE OF OFFICE AND MISCELLANEOUS EXPENSES 2021 2020 2019 For the years ended December 31, 2021 2020 2019 Advertising, Marketing, and Investor Relations $ 5,165,791 $ 2,610,930 $ 1,356,174 Compliance fees 432,874 122,916 80,525 Contract Work 300,975 399,546 438,601 Other 556,358 254,473 228,432 Office and Miscellaneous Expenses $ 6,455,998 $ 3,387,865 $ 2,103,732

RELATED PARTY TRANSACTIONS (Tab

RELATED PARTY TRANSACTIONS (Tables)	12 Months Ended
RELATED PARTY TRANSACTIONS (Tables)	Dec. 31, 2021
SCHEDULE OF KEY MANAGEMENT TRANSACTIONS	Key management includes the Company’s directors and members of the executive management team. Compensation awarded to key management for the year ended December 31, 2021 and 2020 included: SCHEDULE OF KEY MANAGEMENT TRANSACTIONS For the years ended December 31, 2021 2020 2019 Director fees $ 370,094 $ - $ - Management fees paid to a company controlled by CEO and director 290,225 737,164 186,000 Management fees paid to a company controlled by the President and director 205,691 227,524 - Management fees paid to a company controlled by a former director 500,074 165,000 195,000 Management fees paid to a company 500,074 165,000 195,000 Salaries 722,068 655,799 179,429 Salaries paid to the former owner of the Company - 86,097 149,060 Salaries - 86,097 149,060 Share-based payments 2,475,949 1,614,158 480,158 Total $ 4,564,102 $ 3,485,742 1,189,647

FINANCIAL INSTRUMENTS AND FIN_2

FINANCIAL INSTRUMENTS AND FINANCIAL RISK MANAGEMENT (Tables)	12 Months Ended
	Dec. 31, 2021
Financial Instruments And Financial Risk Management
SCHEDULE OF CHANGES IN FOREIGN EXCHANGE RATES	The following table summarizes the sensitivity of the fair value of the Company’s risk to foreign exchange rates, with all other variables held constant. Fluctuations of 10 percent in the foreign exchange rate between US dollars and Canadian dollars could have resulted in a change impacting net income upon consolidation as follows: SCHEDULE OF CHANGES IN FOREIGN EXCHANGE RATES December 31, 2021 December 31, 2020 Foreign exchange rate $ 150,715 $ 27,018
SCHEDULE OF FINANCIAL ASSETS MEASURED FAIR VALUE THROUGH PROFIT AND LOSS	SCHEDULE OF FINANCIAL ASSETS MEASURED FAIR VALUE THROUGH PROFIT AND LOSS December 31, 2021 Level 1 Level 2 Level 3 Total Equity securities in investee companies $ 164,286 $ 126,780 $ - $ 291,066 Notes receivable - 1,154,176 - 1,154,176 Derivative liability - 5,560,002 5,560,002 Total $ 164,286 $ 1,280,956 $ 5,560,002 $ 7,005,244 December 31, 2021 Level 1 Level 2 Level 3 Total Derivative liability - - 748,634 748,634 Total $ - $ - $ 748,634 $ 748,634
SCHEDULE OF BREAKDOWN CAPITAL	The breakdown of the Company’s capital is as follows: SCHEDULE OF BREAKDOWN CAPITAL December 31, 2021 December 31, 2020 Cash $ 23,075,713 $ 1,982,416 Debt 93,317 97,916 Equity $ 34,926,239 $ 3,848,205

INCOME TAXES (Tables)

INCOME TAXES (Tables)	12 Months Ended
INCOME TAXES (Tables)	Dec. 31, 2021
SCHEDULE OF INCOME TAX	SCHEDULE OF INCOME TAX December 31, 2021 December 31, 2020 December 31, 2019 Loss before income taxes $ 16,202,972 $ 8,015,813 $ 11,095,507 Canadian statutory rates 27 % 27 % Expected income tax recovery 4,196,600 2,164,000 2,996,000 Impact of different foreign statutory tax rates 34,900 - - Non-deductible items 116,400 (687,000 ) (2,043,000 ) Share issue costs 887,600 - - Adjustments to prior years provision versus statutory tax returns 376,500 189,000 (388,000 ) Differences between prior year provision and final tax return (206,000 ) (535,000 ) (18,000 ) Change in deferred tax asset not recognized (5,406,000 ) (1,131,000 ) (547,000 ) Income tax $ - $ - $ -
SCHEDULE OF DEFERRED TAXES	The Company’s unrecognized deductible temporary differences and unused tax losses for which no deferred tax asset is recognized consist of the following amounts: SCHEDULE OF DEFERRED TAXES December 31, 2021 December 31, 2020 December 31, 2019 Deferred income tax assets (liabilities): Share issuance costs $ 728,000 $ 30,000 $ - Non-capital losses 7,043,000 3,656,000 2,439,000 Property and equipment 449,000 457,000 581,000 Capital gain reserve 74,000 - - Scientific Research and Experimental Development 291,000 57,000 49,000 Total deferred income tax assets $ 8,585,000 $ 4,200,000 $ 3,069,000 Deferred income tax not recognized (8,585,000 ) (4,200,000 ) (3,069,000 ) Net deferred tax assets $ - $ - $ -

SCHEDULE OF RESULTS OF OPERATIO

SCHEDULE OF RESULTS OF OPERATIONS (Details)	12 Months Ended
SCHEDULE OF RESULTS OF OPERATIONS (Details)	Dec. 31, 2021
Draganfly Innovations Inc [Member]
Reserve Quantities [Line Items]
Name of subsidiary	Draganfly Innovations Inc.
Country of incorporation of subsidiary	Canada
Proportion of ownership interest in subsidiary	100.00%
Draganfly Innovations USA Inc [Member]
Reserve Quantities [Line Items]
Name of subsidiary	Draganfly Innovations USA, Inc.
Country of incorporation of subsidiary	US
Proportion of ownership interest in subsidiary	100.00%
Dronelogics Systems Inc. [Member]
Reserve Quantities [Line Items]
Name of subsidiary	Dronelogics Systems Inc.
Country of incorporation of subsidiary	Canada
Proportion of ownership interest in subsidiary	100.00%

SCHEDULE OF CLASS OF EQUIPMENT

SCHEDULE OF CLASS OF EQUIPMENT (Details)	12 Months Ended
SCHEDULE OF CLASS OF EQUIPMENT (Details)	Dec. 31, 2021
Computer equipment [member]
IfrsStatementLineItems [Line Items]
Depreciation rate	30.00%
Furniture and Equipment [Member]
IfrsStatementLineItems [Line Items]
Depreciation rate	20.00%
Leasehold improvements [member]
IfrsStatementLineItems [Line Items]
Depreciation rate, description	Over expected life of lease
Computer software [member]
IfrsStatementLineItems [Line Items]
Depreciation rate	30.00%
Vehicles [member]
IfrsStatementLineItems [Line Items]
Depreciation rate	30.00%

SCHEDULE OF PURCHASE PRICE ALLO

SCHEDULE OF PURCHASE PRICE ALLOCATION (Details) - Dronelogics Systems Inc. [Member]	Apr. 30, 2020CAD ($)$ / sharesshares
IfrsStatementLineItems [Line Items]
Number of shares of Draganfly Inc. \| shares	645,088
Fair value of common shares \| $ / shares	$ 4.15
Fair value of shares of Draganfly Inc.	$ 2,178,960
Cash portion of purchase price	500,000
Total	2,678,960
Cash	42,593
Accounts receivable	98,852
Inventory	629,684
Prepaids and deposits	93,997
Other current assets	3,014
Capital assets	54,946
Right-of-use assets	83,428
Accounts payable and accrued liabilities	(222,766)
Customer deposits	(245,959)
Loans	(245,752)
Other current liabilities	(8,437)
Lease liabilities	(87,203)
Total tangible assets acquired	196,397
Customer relationships	197,000
Website	119,000
Total identifiable intangible assets	316,000
Goodwill	2,166,563
Total consideration	$ 2,678,960

DRONELOGICS ACQUISITION (Detail

DRONELOGICS ACQUISITION (Details Narrative)	Apr. 30, 2020CAD ($)shares	Apr. 30, 2020CAD ($)shares$ / shares	Dec. 31, 2020CAD ($)	Dec. 31, 2021CAD ($)shares	Dec. 31, 2020CAD ($)shares	Dec. 31, 2019CAD ($)
IfrsStatementLineItems [Line Items]
Number of share options granted in share-based payment arrangement				247,826	492,000
Revenue \| $				$ 7,053,865	$ 4,363,511	$ 1,380,427
Profit (loss) \| $				$ (16,202,972)	$ (8,015,813)	$ (11,095,057)
Restricted Stock Units [Member]
IfrsStatementLineItems [Line Items]
Number of other equity instruments exercised or vested in share-based payment arrangement				124,999
Employee [Member]
IfrsStatementLineItems [Line Items]
Number of share options granted in share-based payment arrangement				30,000	89,000
Dronelogics Systems Inc. [Member]
IfrsStatementLineItems [Line Items]
Acquisition date fair value of total consideration cash transferred \| $	$ 500,000	$ 500,000
Acquisition date shares transferred	645,088
Advisors fees expenses \| $		160,000
Advisiors fees paid in value of shares \| $		$ 100,000
Advisory fees expenses paid in shares		40,000
Advisory fees expenses value per share \| $ / shares		$ 2.50
Advisors fees paid in cash \| $		$ 60,000
Number of other equity instruments exercised or vested in share-based payment arrangement		14,000
Attribution rate percentage		0.15
Discount rate		0.18
Royalty percentage		0.005
Royalty discount percentage		0.17
Revenue \| $			$ 4,086,350
Profit (loss) \| $			$ 434,528
Dronelogics Systems Inc. [Member] \| First and Second Anniversary [Member]
IfrsStatementLineItems [Line Items]
Number of other equity instruments exercised or vested in share-based payment arrangement		70,000
Dronelogics Systems Inc. [Member] \| Employee [Member]
IfrsStatementLineItems [Line Items]
Number of share options granted in share-based payment arrangement		89,000
Dronelogics Systems Inc. [Member] \| Certain Directors and Officers [Member] \| Restricted Stock Units [Member]
IfrsStatementLineItems [Line Items]
Number of other equity instruments exercised or vested in share-based payment arrangement		75,000

SCHEDULE OF CONTINGENT CONSIDER

SCHEDULE OF CONTINGENT CONSIDERATION (Details)	12 Months Ended
SCHEDULE OF CONTINGENT CONSIDERATION (Details)	Dec. 31, 2021CAD ($)
Vital Intelligence Acquisition
Fair value of contingent consideration	$ 4,797,717
Change in fair value of contingent consideration	(4,103,487)
Contingent consideration at December 31, 2021 (note 20)	$ 694,230

SCHEDULE OF PURCHASE PRICE AL_2

SCHEDULE OF PURCHASE PRICE ALLOCATION FOR VITAL INTELLIGENCE (Details) - CAD ($)	Mar. 25, 2021	Dec. 31, 2021	Dec. 31, 2020
Reserve Quantities [Line Items]
Goodwill		$ 5,940,409	$ 2,166,563
Vital Intelligence Inc [Member]
Reserve Quantities [Line Items]
Number of units of Draganfly Inc.	578,248
Fair value of units	$ 14.43
Fair value of units of Draganfly Inc.	$ 8,342,966
Cash portion of purchase price	466,643
Total	8,809,609
Identifiable intangible assets, Brand	23,000
Identifiable intangible assets, Software	433,000
Identifiable intangible assets	456,000
Goodwill	8,353,609
Total consideration	$ 8,809,609

VITAL INTELLIGENCE ACQUISITIO_2

VITAL INTELLIGENCE ACQUISITION (Details Narrative)	Aug. 19, 2021CAD ($)shares	Mar. 25, 2021CAD ($)$ / sharesshares	Dec. 31, 2021CAD ($)shares	Dec. 31, 2021CAD ($)shares	Dec. 31, 2020CAD ($)	Dec. 31, 2019CAD ($)
Reserve Quantities [Line Items]
Shares held in escrow \| shares	900,000
Derivative financial liabilities	$ 4,797,717
Increase (decrease) in credit derivative, fair value				$ 694,230
Revenue				7,053,865	$ 4,363,511	$ 1,380,427
Profit (loss)				$ (16,202,972)	$ (8,015,813)	$ (11,095,057)
Vital Intelligence Inc [Member]
Reserve Quantities [Line Items]
Revenue			$ 115,369
Profit (loss)			$ 203,231
Escrow Agreement One [Member]
Reserve Quantities [Line Items]
Stock issued, shares \| shares	300,000
Escrow Agreement Two [Member]
Reserve Quantities [Line Items]
Stock issued, shares \| shares	300,000
Shares issued, amount	$ 2,000,000
Escrow Agreement Three [Member]
Reserve Quantities [Line Items]
Stock issued, shares \| shares	300,000
Shares issued, amount	$ 4,000,000
Escrow Agreement Four [Member]
Reserve Quantities [Line Items]
Stock issued, shares \| shares	300,000
Shares issued, amount	$ 6,000,000
Vital Intelligence Inc [Member]
Reserve Quantities [Line Items]
Number of shares issued \| shares			1,200,000	1,200,000
Vital Intelligence Inc [Member] \| Brand [Member]
Reserve Quantities [Line Items]
Royalty Percentage		0.0025
Royalty discount percentage		0.144
Vital Intelligence Inc [Member] \| Software [Member]
Reserve Quantities [Line Items]
Royalty Percentage		0.050
Royalty discount percentage		0.144
Vital Intelligence Inc [Member] \| Asset Purchase Agreement [Member]
Reserve Quantities [Line Items]
Payment to acquire assets		$ 500,000
Number of shares issued \| shares		1,200,000
Explanation of nature and amount of significant transactions		the Company with each unit being comprised of one common share and one warrant (the “Acquisition”). Each warrant will entitle the holder to acquire one common share for a period of 24 ‎months following closing for $13.35 and the Company will be able ‎to accelerate the expiry date of the warrants after one year in the event the underlying common shares ‎have a value of at least 30% greater than the exercise price of the warrants. The units will be held in ‎escrow with 300,000 units being released at closing and the remainder to be released ‎upon the Company reaching certain revenue milestones received from the purchased assets.
Warrant exercise price per share \| $ / shares		$ 13.35
Warrant expiration term		1 year
Escrow deposit units \| shares		300,000
Description for Number of Shares Issued		The units were issued on March 22, 2021
Vital Intelligence Inc [Member] \| Asset Purchase Agreement [Member] \| Maximum [Member]
Reserve Quantities [Line Items]
Final payment	250,000
Vital Intelligence Inc [Member] \| Asset Purchase Agreement [Member] \| Minimum [Member]
Reserve Quantities [Line Items]
Final payment	$ 227,984

SUMMARY OF HISTORICAL FINANCIAL

SUMMARY OF HISTORICAL FINANCIAL INFORMATION (Details) - CAD ($)	Aug. 15, 2019	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Number of shares of Draganfly Inc.	2,100,000
Fair value of common shares in concurrent financing	$ 2.50
Fair value of shares of Draganfly Inc.	$ 5,250,001
Fair value of warrants	1,645,193
Fair value of shares issued for transaction fees	1,000,000
Net assets acquired	(90,335)
Listing expense	7,804,859			$ 7,804,859
Cash	28,538
Accounts receivable	4,991
Loans receivable	963,269
Accounts payable and accrued liabilities	(406,463)
Subscription receipts	(500,000)
Net of liabilities	$ 90,335	$ 7,187,001	$ 3,252,362

SUMMARY OF FAIR VALUE MEASUREME

SUMMARY OF FAIR VALUE MEASUREMENT INPUTS AND VALUATION TECHNIQUES (Details)	Feb. 04, 2021	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
IfrsStatementLineItems [Line Items]
Expected volatility				100.00%
Expected dividend yield		0.00%	0.00%	0.00%
Warrant reserve [member]
IfrsStatementLineItems [Line Items]
Risk-free interest rate	0.86%
Estimated life	1.48
Expected volatility	100.00%
Expected dividend yield	0.00%

AMALGAMATION (Details Narrative

AMALGAMATION (Details Narrative) - CAD ($)	Feb. 04, 2021	Aug. 15, 2019	Jan. 31, 2019	Dec. 31, 2019
IfrsStatementLineItems [Line Items]
Transaction fees		$ 1,000,000
Fair value of warrants				$ 8,833
Draganfly Innovations Shares [Member]
IfrsStatementLineItems [Line Items]
Exchange of common stocks		8,527,671		8,517,671
Common stock, issued		10,500,001	222,965
Exercisable warrant price	$ 0.50	$ 2.50
Transaction fees			$ 1,000,000
Fair value of warrants	$ 1,645,193
Proceeds from subscription receipts		$ 7,025,750
Draganfly Innovations Shares [Member] \| Warrant reserve [member]
IfrsStatementLineItems [Line Items]
Common stock, issued	800,000

SCHEDULE OF CASH AND CASH EQUIV

SCHEDULE OF CASH AND CASH EQUIVALENTS (Details) - CAD ($)	Dec. 31, 2021	Dec. 31, 2020
Cash held in banks	$ 22,729,212	$ 1,839,871
Guaranteed investment certificates	346,501	142,545
Cash and Cash Equivalents	$ 23,075,713	$ 1,982,416

CASH AND CASH EQUIVALENTS (Deta

CASH AND CASH EQUIVALENTS (Details Narrative) - Guaranteed Investment Certificate [Member] - CAD ($)	Dec. 21, 2021	May 28, 2021	Mar. 27, 2021	Mar. 27, 2020
IfrsStatementLineItems [Line Items]
Purchase of financial instrument	$ 50,000	$ 140,000		$ 142,000
Financial instrument term	1 year	1 year		1 year
Average effective Instrument rate	0.05%	0.35%		0.50%
Renew of financial instruments			$ 142,710
Renewed financial instrument term			1 year
Renewed effective instrument rate			0.10%

SCHEDULE OF AMOUNTS RECEIVABLE

SCHEDULE OF AMOUNTS RECEIVABLE (Details) - CAD ($)	Dec. 31, 2021	Dec. 31, 2020
Schedule Of Amounts Receivable
Trade accounts receivable	$ 951,314	$ 780,254
Corporate taxes receivable	182,820
GST receivable	272,993
SR&ED receivable		30,537
Trade and other receivables	$ 1,407,127	$ 810,791

SCHEDULE OF INVENTORIES (Detail

SCHEDULE OF INVENTORIES (Details) - CAD ($)	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Finished goods	$ 3,017,363	$ 1,155,871
Parts	373,459	77,748	48,653
Inventories	$ 3,390,822	$ 1,233,619	$ 48,653

SCHEDULE OF COST OF SALES (Deta

SCHEDULE OF COST OF SALES (Details) - CAD ($)	12 Months Ended
SCHEDULE OF COST OF SALES (Details) - CAD ($)	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Inventory	$ 3,420,713	$ 2,257,797	$ 118,626
Consulting and services	679,345	164,119	86,280
Other	310,719	181,995	13,894
Cost of sales	$ 4,410,777	$ 2,603,911	$ 218,800

INVENTORY (Details Narrative)

INVENTORY (Details Narrative) - CAD ($)	12 Months Ended
INVENTORY (Details Narrative) - CAD ($)	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
IfrsStatementLineItems [Line Items]
Cost of sales	$ 4,410,777	$ 2,603,911	$ 218,800
Inventory write-down		23,955
Inventory [Member]
IfrsStatementLineItems [Line Items]
Cost of sales	$ 3,420,713	$ 2,257,797	$ 118,826

DISCLOSURE OF NOTES RECEIVABLE

DISCLOSURE OF NOTES RECEIVABLE (Details)	12 Months Ended
DISCLOSURE OF NOTES RECEIVABLE (Details)	Dec. 31, 2021CAD ($)
IfrsStatementLineItems [Line Items]
Principal	$ 1,988,815
Interest	39,794
Accretion	17,038
Impairment loss	(891,471)
Note receivable	$ 1,154,176
Note One [Member]
IfrsStatementLineItems [Line Items]
Start Date	Apr. 21, 2021	[1]
Maturity Date	Oct. 21, 2022	[1]
Interest Rate	0.00%	[1]
Principal	$ 180,597	[1]
Interest		[1]
Accretion	9,573	[1]
Impairment loss		[1]
Note receivable	$ 190,170	[1]
Note Two [Member]
IfrsStatementLineItems [Line Items]
Start Date	Jun. 1, 2021	[1]
Maturity Date	Jun. 1, 2023	[1]
Interest Rate	8.00%	[1]
Principal	$ 114,833	[1]
Interest	5,378	[1]
Accretion		[1]
Impairment loss	(120,211)	[1]
Note receivable		[1]
Note 3 [Member]
IfrsStatementLineItems [Line Items]
Start Date	Sep. 22, 2021	[1]
Maturity Date	Sep. 22, 2024	[1]
Interest Rate	5.00%	[1]
Principal	$ 943,385	[1]
Interest	13,156	[1]
Accretion	7,465	[1]
Impairment loss		[1]
Note receivable	$ 964,006	[1]
Note 4 [Member]
IfrsStatementLineItems [Line Items]
Start Date	Nov. 17, 2021
Maturity Date	Apr. 26, 2022	[1]
Interest Rate	8.00%
Principal	$ 750,000
Interest	21,260
Accretion
Impairment loss	(771,260)
Note receivable

[1]	These notes are denominated in US dollars and are converted to Canadian dollars at the reporting date.

NOTES RECEIVABLE (Details Narra

NOTES RECEIVABLE (Details Narrative)	12 Months Ended
NOTES RECEIVABLE (Details Narrative)	Dec. 31, 2021CAD ($)
Note Two [Member]
IfrsStatementLineItems [Line Items]
Note receivable interest rate	8.00%	[1]
Loans written down
Note 3 [Member]
IfrsStatementLineItems [Line Items]
Note receivable interest rate	5.00%	[1]
Note 4 [Member]
IfrsStatementLineItems [Line Items]
Note receivable interest rate	8.00%
Loans written down

[1]	These notes are denominated in US dollars and are converted to Canadian dollars at the reporting date.

SCHEDULE OF PREPAID EXPENSES AN

SCHEDULE OF PREPAID EXPENSES AND DEPOSITS (Details) - CAD ($)	Dec. 31, 2021	Dec. 31, 2020
Insurance	$ 2,938,246	$ 992
Prepaid director fees	107,763
Prepaid interest	6,969
Prepaid marketing services	1,638,179	187,826
Prepaid rent		3,583
Prepaid subscriptions	35,687	5,953
Deposits	768,033	136,668
Prepaid expenses and deposits	$ 5,494,877	$ 335,022

SCHEDULE OF INVESTMENTS (Detail

SCHEDULE OF INVESTMENTS (Details)	12 Months Ended
SCHEDULE OF INVESTMENTS (Details)	Dec. 31, 2021CAD ($)
IfrsStatementLineItems [Line Items]
Balance at December 31, 2020
Investments	623,706
Change in fair value	(332,640)
Balance at December 31, 2021	291,066
Public Company Shares [Member]
IfrsStatementLineItems [Line Items]
Balance at December 31, 2021	142,857
Public Company Warrants [Member]
IfrsStatementLineItems [Line Items]
Balance at December 31, 2021	21,429
Private Company Shares [Member]
IfrsStatementLineItems [Line Items]
Balance at December 31, 2021	$ 126,780

SCHEDULE OF WEIGHTED AVERAGE AS

SCHEDULE OF WEIGHTED AVERAGE ASSUMPTION FOR FAIR VALUES WARRANTS (Details)	Mar. 10, 2021	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
IfrsStatementLineItems [Line Items]
Expected volatility				100.00%
Expected life		5 years		7 years 6 months
Expected dividend yield		0.00%	0.00%	0.00%
Warrants [Member]
IfrsStatementLineItems [Line Items]
Risk free interest rate	0.28%	0.91%
Expected volatility	150.88%	124.09%
Expected life	2 years	2 years	2 years
Expected dividend yield	0.00%	0.00%	0.00%

INVESTMENTS (Details Narrative)

INVESTMENTS (Details Narrative) - CAD ($)	Oct. 27, 2021	Mar. 10, 2021
Disclosure Investments Abstract
Number of shares purchased	50,000	1,428,571
Number of shares purchased, value	$ 100,000	$ 500,000
warrant, exercise price		$ 0.50
Warrants expiration date		Mar. 17, 2023

SCHEDULE OF PROPERTY, PLANT AND

SCHEDULE OF PROPERTY, PLANT AND EQUIPMENT (Details) - CAD ($)	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020
IfrsStatementLineItems [Line Items]
Property, plant and equipment, beginning balance	$ 257,974	$ 179,140
Additions	212,579	23,888
Net assets acquired in the Transaction		54,946
Revaluation	(3,619)
Property, plant and equipment, ending balance	466,934	257,974
Accumulated depreciation Property, plant and equipment, beginning balance	104,104	63,999
Charge for the year	65,787	40,105
Accumulated depreciation Property, plant and equipment, ending balance	169,891	104,104
Property, plant and equipment	297,043	153,870
Computer equipment [member]
IfrsStatementLineItems [Line Items]
Property, plant and equipment, beginning balance	24,397	7,000
Additions	29,713	2,028
Net assets acquired in the Transaction		15,369
Revaluation
Property, plant and equipment, ending balance	54,110	24,397
Accumulated depreciation Property, plant and equipment, beginning balance	12,392	6,761
Charge for the year	12,899	5,631
Accumulated depreciation Property, plant and equipment, ending balance	25,291	12,392
Property, plant and equipment	28,819	12,005
Furniture and Equipment [Member]
IfrsStatementLineItems [Line Items]
Property, plant and equipment, beginning balance	171,606	142,173
Additions	170,866	21,860
Net assets acquired in the Transaction		7,573
Revaluation
Property, plant and equipment, ending balance	342,472	171,606
Accumulated depreciation Property, plant and equipment, beginning balance	59,963	37,944
Charge for the year	42,314	22,019
Accumulated depreciation Property, plant and equipment, ending balance	102,277	59,963
Property, plant and equipment	240,195	111,643
Leasehold improvements [member]
IfrsStatementLineItems [Line Items]
Property, plant and equipment, beginning balance	4,352
Additions
Net assets acquired in the Transaction		4,352
Revaluation
Property, plant and equipment, ending balance	4,352	4,352
Accumulated depreciation Property, plant and equipment, beginning balance	3,220
Charge for the year	1,132	3,220
Accumulated depreciation Property, plant and equipment, ending balance	4,352	3,220
Property, plant and equipment		1,132
Computer software [member]
IfrsStatementLineItems [Line Items]
Property, plant and equipment, beginning balance	29,967	29,967
Additions
Net assets acquired in the Transaction
Revaluation
Property, plant and equipment, ending balance	29,967	29,967
Accumulated depreciation Property, plant and equipment, beginning balance	22,496	19,294
Charge for the year	2,241	3,202
Accumulated depreciation Property, plant and equipment, ending balance	24,737	22,496
Property, plant and equipment	5,230	7,471
Vehicles [member]
IfrsStatementLineItems [Line Items]
Property, plant and equipment, beginning balance	27,652
Additions	12,000
Net assets acquired in the Transaction		27,652
Revaluation	(3,619)
Property, plant and equipment, ending balance	36,033	27,652
Accumulated depreciation Property, plant and equipment, beginning balance	6,033
Charge for the year	7,201	6,033
Accumulated depreciation Property, plant and equipment, ending balance	13,234	6,033
Property, plant and equipment	$ 22,799	$ 21,619

SCHEDULE OF INTELLECTUAL PROPER

SCHEDULE OF INTELLECTUAL PROPERTY (Details) - CAD ($)	12 Months Ended
SCHEDULE OF INTELLECTUAL PROPERTY (Details) - CAD ($)	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
IfrsStatementLineItems [Line Items]
Intellectual properties and goodwill, beginning balance	$ 2,524,494	$ 41,931
Intangible assets acquired in the Acquisition	8,809,609	2,482,563
Impairment of goodwill	(4,579,763)
Intellectual properties and goodwill, Ending balance	6,754,340	2,524,494	41,931
Accumulated amortization, beginning balance	84,064	40,546
Change for the year	135,966	43,518
Accumulated amortization, ending balance	220,030	84,064	40,546
Intellectual properties and goodwill	6,534,310	2,440,430
Patent [Member]
IfrsStatementLineItems [Line Items]
Intellectual properties and goodwill, beginning balance	41,931	41,931
Intangible assets acquired in the Acquisition
Impairment of goodwill
Intellectual properties and goodwill, Ending balance	41,931	41,931	41,931
Accumulated amortization, beginning balance	41,931	40,546
Change for the year		1,385
Accumulated amortization, ending balance	41,931	41,931	40,546
Intellectual properties and goodwill
Customer Relationship [Member]
IfrsStatementLineItems [Line Items]
Intellectual properties and goodwill, beginning balance	197,000
Intangible assets acquired in the Acquisition		197,000
Impairment of goodwill
Intellectual properties and goodwill, Ending balance	197,000	197,000
Accumulated amortization, beginning balance	26,267
Change for the year	34,147	26,267
Accumulated amortization, ending balance	60,414	26,267
Intellectual properties and goodwill	136,586	170,733
Brand [Member]
IfrsStatementLineItems [Line Items]
Intellectual properties and goodwill, beginning balance
Intangible assets acquired in the Acquisition	23,000
Impairment of goodwill
Intellectual properties and goodwill, Ending balance	23,000
Accumulated amortization, beginning balance
Change for the year	3,450
Accumulated amortization, ending balance	3,450
Intellectual properties and goodwill	19,550
Software [Member]
IfrsStatementLineItems [Line Items]
Intellectual properties and goodwill, beginning balance	119,000
Intangible assets acquired in the Acquisition	433,000	119,000
Impairment of goodwill
Intellectual properties and goodwill, Ending balance	552,000	119,000
Accumulated amortization, beginning balance	15,866
Change for the year	98,369	15,866
Accumulated amortization, ending balance	114,235	15,866
Intellectual properties and goodwill	437,765	103,134
Goodwill [member]
IfrsStatementLineItems [Line Items]
Intellectual properties and goodwill, beginning balance	2,166,563
Intangible assets acquired in the Acquisition	8,353,609	2,166,563
Impairment of goodwill	(4,579,763)
Intellectual properties and goodwill, Ending balance	5,940,409	2,166,563
Accumulated amortization, beginning balance
Change for the year
Accumulated amortization, ending balance
Intellectual properties and goodwill	$ 5,940,409	$ 2,166,563

INTANGIBLE ASSETS AND GOODWIL_2

INTANGIBLE ASSETS AND GOODWILL (Details Narrative) - CAD ($)	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019	Mar. 25, 2021	Apr. 30, 2020
IfrsStatementLineItems [Line Items]
Goodwill	$ 5,940,409	$ 2,166,563
Impairment of goodwill	$ 4,579,763
Assumption discount rates	10.00%
Dronelogics [Member]
IfrsStatementLineItems [Line Items]
[custom:PercentageOfWeightedAverageRevenueGrowthRateEarningsBeforeInterestTaxesDepreciationAndAmortization-0]	14.00%
Percentage of weighted average cost of capital	17.00%
Reduction in value	$ 597,100
Vital [Member]
IfrsStatementLineItems [Line Items]
[custom:PercentageOfWeightedAverageRevenueGrowthRateEarningsBeforeInterestTaxesDepreciationAndAmortization-0]	42.00%
Percentage of weighted average cost of capital	24.00%
Reduction in value	$ 570,133
Vital and Dronelogics [Member]
IfrsStatementLineItems [Line Items]
Percentage of cash flow projection	2.00%
Customer-related intangible assets [member] \| Dronelogics [Member]
IfrsStatementLineItems [Line Items]
Percentage of acquired					100.00%
Customer relationships					$ 197,000
Brand [Member]
IfrsStatementLineItems [Line Items]
Impairment of goodwill
Brand [Member] \| Dronelogics [Member]
IfrsStatementLineItems [Line Items]
Percentage of acquired					100.00%
Customer relationships					$ 119,000
Brand [Member] \| Vital [Member]
IfrsStatementLineItems [Line Items]
Customer relationships				$ 23,000
Computer software [member] \| Vital [Member]
IfrsStatementLineItems [Line Items]
Customer relationships				433,000
Goodwill [member]
IfrsStatementLineItems [Line Items]
Impairment of goodwill	$ 4,579,763
Goodwill [member] \| Dronelogics [Member]
IfrsStatementLineItems [Line Items]
Percentage of acquired					100.00%
Goodwill				$ 8,353,609	$ 2,166,563

SCHEDULE OF RIGHT OF USE ASSETS

SCHEDULE OF RIGHT OF USE ASSETS (Details) - CAD ($)	12 Months Ended
SCHEDULE OF RIGHT OF USE ASSETS (Details) - CAD ($)	Dec. 31, 2021	Dec. 31, 2020
Right Of Use Assets
Right of use assets, at cost, beginning	$ 242,967	$ 159,539
Leases acquired in the Acquisition		83,428
Additions	447,242
Lease removal	(7,092)
Right of use assets, at cost, ending	683,117	242,967
Accumulated amortization, Beginning	98,548	29,545
Charge for the year	109,311	69,003
Historical correction	7,152
Accumulated amortization, ending	215,011	98,548
Right of use assets	$ 468,106	$ 144,419

SCHEDULE OF OPERATING LEASE LIA

SCHEDULE OF OPERATING LEASE LIABILITIES (Details) - CAD ($)	12 Months Ended
SCHEDULE OF OPERATING LEASE LIABILITIES (Details) - CAD ($)	Dec. 31, 2021	Dec. 31, 2020
Lease Liability
Balance - Beginning of period	$ 158,124	$ 136,073
Leases acquired in the Acquisition		87,203
Interest expense	26,964	18,290
Lease Payments	(128,995)	(83,442)
Additions	440,675
Lease removal	(7,645)
Balance - End of period	489,123	158,124
Current lease liabilities	110,481	93,239
Non-current lease liabilities	378,642	64,885
Lease liabilities	$ 489,123	$ 158,124

SCHEDULE OF OPERATING MATURITY

SCHEDULE OF OPERATING MATURITY ANALYSIS (Details) - CAD ($)	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
IfrsStatementLineItems [Line Items]
Maturity analysis	$ 590,544
Amount representing implicit interest	(101,421)
Lease liability	489,123	$ 158,124	$ 136,073
Not later than one year [member]
IfrsStatementLineItems [Line Items]
Maturity analysis	150,276
Later than one year and not later than three years [member]
IfrsStatementLineItems [Line Items]
Maturity analysis	251,765
Later than four years and not later than five years [member]
IfrsStatementLineItems [Line Items]
Maturity analysis	183,473
Later than five years [member]
IfrsStatementLineItems [Line Items]
Maturity analysis	$ 5,030

LEASE LIABILITY (Details Narrat

LEASE LIABILITY (Details Narrative)	12 Months Ended
LEASE LIABILITY (Details Narrative)	Dec. 31, 2021
Lease Liability
Depreciation Lease Liability	The Company leases certain assets under lease agreements. The lease liabilities consist of leases of facilities and vehicles with terms ranging from one to five years. The leases are calculated using incremental borrowing rates ranging from 7.5% to 10.5%

SCHEDULE OF TRADE PAYABLES AND

SCHEDULE OF TRADE PAYABLES AND ACCRUED LIABILITIES (Details) - CAD ($)	Dec. 31, 2021	Dec. 31, 2020
Trade Payables And Accrued Liabilities
Trade accounts payable	$ 362,890	$ 813,881
Accrued liabilities	402,540	512,205
Due to related parties (Note 23)		475,628
Government grant payable	33,709	33,709
GST/PST Payable		21,754
Trade payables and accrued liabilities	$ 799,139	$ 1,857,177

SCHEDULE OF CUSTOMER DEPOSITS (

SCHEDULE OF CUSTOMER DEPOSITS (Details) - CAD ($)	Dec. 31, 2021	Dec. 31, 2020
Customer Deposits
Customer deposits	$ 172,134	$ 385,449

SCHEDULE OF DEFERRED INCOME (De

SCHEDULE OF DEFERRED INCOME (Details) - CAD ($)	Dec. 31, 2021	Dec. 31, 2020
IfrsStatementLineItems [Line Items]
Deferred Income	$ 73,286	$ 5,062
Customers [Member]
IfrsStatementLineItems [Line Items]
Deferred Income	80,000
Government [Member]
IfrsStatementLineItems [Line Items]
Deferred Income	5,233	5,062
Note Receivable Accretion [Member]
IfrsStatementLineItems [Line Items]
Deferred Income	$ (11,947)

SCHEDULE OF LOANS PAYABLE (Deta

SCHEDULE OF LOANS PAYABLE (Details) - CAD ($)	12 Months Ended
SCHEDULE OF LOANS PAYABLE (Details) - CAD ($)	Dec. 31, 2021	Dec. 31, 2020
Loans Payable
Opening balance	$ 97,916
Acquisition of loans		120,851
Issuance of loans payable	60,000	60,000
Fair value adjustment	(24,576)	(26,152)
Repayment of loans payable	(44,428)	(57,873)
Accretion expense	4,405	1,090
Ending balance	$ 93,317	$ 97,916

SCHEDULE OF LOANS (Details)

SCHEDULE OF LOANS (Details) - CAD ($)	May 19, 2020	Dec. 31, 2021	Apr. 23, 2021	Dec. 31, 2020
IfrsStatementLineItems [Line Items]
Rate	25.00%
Total Carrying Value		$ 93,317		$ 97,916
CEBA [Member]
IfrsStatementLineItems [Line Items]
Start Date		May 19, 2020
Maturity Date	three-year term	Dec. 31, 2022
Rate	5.00%	0.00%	5.00%
Total Carrying Value		$ 37,384		34,938
CEBA [Member]
IfrsStatementLineItems [Line Items]
Start Date		Apr. 23, 2021
Maturity Date		Dec. 31, 2022
Rate		0.00%
Total Carrying Value		$ 37,383
Vehicle Loan [Member]
IfrsStatementLineItems [Line Items]
Start Date		Aug. 30, 2019
Maturity Date		Sep. 11, 2024
Rate		6.99%
Total Carrying Value		$ 18,550		25,295
Shopify Loan [Member]
IfrsStatementLineItems [Line Items]
Start Date		Aug. 5, 2020
Rate		7.00%
Total Carrying Value				$ 37,683

LOANS PAYABLE (Details Narrativ

LOANS PAYABLE (Details Narrative) - CAD ($)	Apr. 23, 2021	Dec. 04, 2020	May 19, 2020	Dec. 31, 2021
IfrsStatementLineItems [Line Items]
Interest rate			25.00%
CEBA [Member]
IfrsStatementLineItems [Line Items]
Loan received			$ 40,000
Interest rate	5.00%		5.00%	0.00%
Loans forgivable amount	$ 20,000		$ 10,000
Maturity			three-year term	Dec. 31, 2022
Proceeds from loan		$ 20,000
Loan forgiveness		$ 10,000
Unsecured loan received	$ 60,000

SCHEDULE OF STOCK OPTIONS OUTST

SCHEDULE OF STOCK OPTIONS OUTSTANDING AND EXERCISABLE (Details)	12 Months Ended
	Dec. 31, 2021shares$ / shares	Dec. 31, 2020shares	Dec. 31, 2019shares
IfrsStatementLineItems [Line Items]
Remaining Contractual Life (years)	1 year 2 months 12 days	1 year 25 days
Number of Options	1,035,991	1,193,659	744,993
Exercisable	710,497
Exercise Price One [Member]
IfrsStatementLineItems [Line Items]
Grant date	Oct. 30, 2019
Expiry date	Oct. 30, 2029
Exercise Price \| $ / shares	$ 2.50
Remaining Contractual Life (years)	7 years 10 months 2 days
Number of Options	296,665
Exercisable	296,665
Exercise Price Two [Member]
IfrsStatementLineItems [Line Items]
Grant date	Nov. 19, 2019
Expiry date	Nov. 19, 2029
Exercise Price \| $ / shares	$ 2.50
Remaining Contractual Life (years)	7 years 10 months 20 days
Number of Options	50,000
Exercisable	50,000
Exercise Price Three [Member]
IfrsStatementLineItems [Line Items]
Grant date	Apr. 30, 2020
Expiry date	Apr. 30, 2030
Exercise Price \| $ / shares	$ 2.50
Remaining Contractual Life (years)	8 years 3 months 29 days
Number of Options	87,000
Exercisable	78,666
Exercise Price Four [Member]
IfrsStatementLineItems [Line Items]
Grant date	Apr. 30, 2020
Expiry date	Apr. 30, 2030
Exercise Price \| $ / shares	$ 3.85
Remaining Contractual Life (years)	8 years 3 months 29 days
Number of Options	110,000
Exercisable	70,000
Exercise Price Five [Member]
IfrsStatementLineItems [Line Items]
Grant date	Jul. 3, 2020
Expiry date	Jul. 3, 2025
Exercise Price \| $ / shares	$ 3.20
Remaining Contractual Life (years)	3 years 6 months 3 days
Number of Options	200,000
Exercisable	166,666
Exercise Price Six [Member]
IfrsStatementLineItems [Line Items]
Grant date	Nov. 24, 2020
Expiry date	Nov. 24, 2030
Exercise Price \| $ / shares	$ 2.50
Remaining Contractual Life (years)	8 years 10 months 24 days
Number of Options	32,000
Exercisable	21,000
Exercise Price Seven [Member]
IfrsStatementLineItems [Line Items]
Grant date	Dec. 11, 2020
Expiry date	Dec. 11, 2030
Exercise Price \| $ / shares	$ 2.15
Remaining Contractual Life (years)	8 years 11 months 12 days
Number of Options	12,500
Exercisable	12,500
Exercise Price Eight [Member]
IfrsStatementLineItems [Line Items]
Grant date	Feb. 2, 2021
Expiry date	Feb. 2, 2031
Exercise Price \| $ / shares	$ 13.20
Remaining Contractual Life (years)	9 years 1 month 2 days
Number of Options	30,000
Exercisable	10,000
Exercise Price Nine [Member]
IfrsStatementLineItems [Line Items]
Grant date	Mar. 8, 2021
Expiry date	Mar. 8, 2026
Exercise Price \| $ / shares	$ 13.90
Remaining Contractual Life (years)	4 years 2 months 8 days
Number of Options	10,000
Exercisable	5,000
Exercise Price Ten [Member]
IfrsStatementLineItems [Line Items]
Grant date	Apr. 27, 2021
Expiry date	Apr. 27, 2031
Exercise Price \| $ / shares	$ 10.15
Remaining Contractual Life (years)	9 years 2 months 23 days
Number of Options	182,000
Exercisable
Exercise Price Eleven [Member]
IfrsStatementLineItems [Line Items]
Grant date	Sep. 9, 2021
Expiry date	Sep. 9, 2026
Exercise Price \| $ / shares	$ 4.84
Remaining Contractual Life (years)	4 years 8 months 8 days
Number of Options	25,826
Exercisable

SUMMARY OF CHANGES IN STOCK OPT

SUMMARY OF CHANGES IN STOCK OPTIONS (Details)	12 Months Ended
SUMMARY OF CHANGES IN STOCK OPTIONS (Details)	Dec. 31, 2021shares$ / shares	Dec. 31, 2020shares$ / shares
Share Capital
Number of options outstanding, Beginning Balance \| shares	1,193,659	744,993
Weighted average exercise price, Beginning Balance \| $ / shares	$ 2.75	$ 2.50
Number of options outstanding, forfeited \| shares		(43,334)
Weighted average exercise price, forfeited \| $ / shares		$ 2.50
Number of options outstanding, Granted \| shares	247,826	492,000
Weighted average exercise price, Granted \| $ / shares	$ 10.12	$ 3.08
Number of options outstanding, Exercised \| shares	(405,494)
Weighted average exercise price, Exercised \| $ / shares	$ 2.50
Number of options outstanding, Ending Balance \| shares	1,035,991	1,193,659
Weighted average exercise price, Ending Balance \| $ / shares	$ 4.60	$ 2.75

SCHEDULE OF WEIGHTED AVERAGE _2

SCHEDULE OF WEIGHTED AVERAGE ASSUMPTIONS (Details) - $ / shares	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
IfrsStatementLineItems [Line Items]
Expected volatility			100.00%
Expected life	5 years		7 years 6 months
Expected dividend yield	0.00%	0.00%	0.00%
Exercise price			$ 2.50
Bottom of range [member]
IfrsStatementLineItems [Line Items]
Risk free interest rate	0.69%	0.43%	1.45%
Expected volatility	62.84%	113.53%
Expected life		5 years
Exercise price	$ 4.84	$ 2.15
Top of range [member]
IfrsStatementLineItems [Line Items]
Risk free interest rate	1.40%	0.66%	146.00%
Expected volatility	113.16%	119.03%
Expected life		10 years
Exercise price	$ 13.90	$ 3.85

SUMMARY OF CHANGES IN RESTRICTE

SUMMARY OF CHANGES IN RESTRICTED STOCK UNITS (Details) - shares	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020
IfrsStatementLineItems [Line Items]
Number of RSUs outstanding, Beginning of the period	511,299
Number of RSUs outstanding, Ending of the period	7,214,819	511,299
Restricted Stock Units Rsu [Member]
IfrsStatementLineItems [Line Items]
Number of RSUs outstanding, Beginning of the period	614,666	634,997
Exercised	(448,660)	(199,998)
Forfeited		(68,333)
Issued	348,826	248,000
Number of RSUs outstanding, Ending of the period	514,832	614,666

SCHEDULE OF WARRANT DERIVATIVE

SCHEDULE OF WARRANT DERIVATIVE LIABILITY (Details)	12 Months Ended
SCHEDULE OF WARRANT DERIVATIVE LIABILITY (Details)	Dec. 31, 2021USD ($)	Dec. 31, 2021CAD ($)	Dec. 31, 2020USD ($)
IfrsStatementLineItems [Line Items]
Contingent consideration at December 31, 2021		$ 694,230
Warrants [Member]
IfrsStatementLineItems [Line Items]
Beginning of the period	$ 748,634
Warrants issuance	8,261,511		281,732
Change in fair value of warrants outstanding	(4,046,325)		466,902
Shares issued for exercise of broker warrants of derivatives	(98,048)
End of the period	4,865,772		$ 748,634
Warrants	4,865,772
Contingent consideration	694,230
Contingent consideration at December 31, 2021	$ 5,560,002

SCHEDULE OF WARRANTS AND FAIR V

SCHEDULE OF WARRANTS AND FAIR VALUE OUTSTANDING (Details)	12 Months Ended
SCHEDULE OF WARRANTS AND FAIR VALUE OUTSTANDING (Details)	Dec. 31, 2021USD ($)shares$ / shares	Dec. 31, 2020USD ($)shares
IfrsStatementLineItems [Line Items]
Number of Warrants Outstanding \| shares	7,214,819	511,299
Fair Value of warrants \| $	$ 4,865,772	$ 748,634
Range 1 [member]
IfrsStatementLineItems [Line Items]
Issue Date	Nov. 30, 2020
Exercise price \| $ / shares	$ 3.55
Number of Warrants Outstanding \| shares	482,425	511,299
Fair Value of warrants \| $	$ 182,262	$ 748,634
Range 2 [member]
IfrsStatementLineItems [Line Items]
Issue Date	Feb. 5, 2021
Exercise price \| $ / shares	$ 3.55
Number of Warrants Outstanding \| shares	1,323,275
Fair Value of warrants \| $	$ 951,226
Range 3 [member]
IfrsStatementLineItems [Line Items]
Issue Date	Mar. 5, 2021
Exercise price \| $ / shares	$ 3.55
Number of Warrants Outstanding \| shares	5,154,321
Fair Value of warrants \| $	$ 3,731,285
Range 4 [member]
IfrsStatementLineItems [Line Items]
Issue Date	Jul. 29, 2021
Exercise price \| $ / shares	$ 5
Number of Warrants Outstanding \| shares	250,000
Fair Value of warrants \| $	$ 84,625
Range 5 [member]
IfrsStatementLineItems [Line Items]
Issue Date	Sep. 14, 2021
Exercise price \| $ / shares	$ 5
Number of Warrants Outstanding \| shares	4,798
Fair Value of warrants \| $	$ 1,685

SCHEDULE OF WEIGHTED AVERAGE _3

SCHEDULE OF WEIGHTED AVERAGE ASSUMPTION FOR WARRANTS (Details)	Mar. 10, 2021	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
IfrsStatementLineItems [Line Items]
Expected volatility				100.00%
Expected life		5 years		7 years 6 months
Expected dividend yield		0.00%	0.00%	0.00%
Bottom of range [member]
IfrsStatementLineItems [Line Items]
Risk free interest rate		0.69%	0.43%	1.45%
Expected volatility		62.84%	113.53%
Expected life			5 years
Top of range [member]
IfrsStatementLineItems [Line Items]
Risk free interest rate		1.40%	0.66%	146.00%
Expected volatility		113.16%	119.03%
Expected life			10 years
Warrants [Member]
IfrsStatementLineItems [Line Items]
Risk free interest rate	0.28%	0.91%
Expected volatility	150.88%	124.09%
Expected life	2 years	2 years	2 years
Expected dividend yield	0.00%	0.00%	0.00%
Warrants [Member] \| Bottom of range [member]
IfrsStatementLineItems [Line Items]
Risk free interest rate		0.23%	0.20%
Expected volatility		70.95%	72.76%
Expected life		2 years
Warrants [Member] \| Top of range [member]
IfrsStatementLineItems [Line Items]
Risk free interest rate		0.95%	0.24%
Expected volatility		144.59%	74.10%
Expected life		3 years

SUMMARY OF CHANGES IN WARRANTS

SUMMARY OF CHANGES IN WARRANTS (Details)	12 Months Ended
SUMMARY OF CHANGES IN WARRANTS (Details)	Dec. 31, 2021shares$ / shares	Dec. 31, 2020shares$ / shares
IfrsStatementLineItems [Line Items]
Number of RSUs outstanding, Beginning of the period \| shares	511,299
Weighted Average Exercise Price, Oustanding, Beginning Balance		$ 2.50
Number of RSUs outstanding, Ending of the period \| shares	7,214,819	511,299
Warrants [Member]
IfrsStatementLineItems [Line Items]
Number of RSUs outstanding, Beginning of the period	2,416,864	3,610,340
Weighted Average Exercise Price, Oustanding, Beginning Balance	$ 2.95	$ 2.05
Exercised	(1,939,534)	(1,584,775)
Weighted Average Exercise Price, Exercised	$ 2.54	$ 1.50
Forfeited	(6,000)	(120,000)
Weighted Average Exercise Price, Forfeited	$ 2.50	$ 2.50
Granted	7,943,489	511,299
Weighted Average Exercise Price, Granted	$ 5.10	$ 3.55
Number of RSUs outstanding, Ending of the period	8,414,819	2,416,864
Weighted Average Exercise Price, Oustanding, Ending Balance	$ 4.99	$ 2.95

SCHEDULE OF WARRANTS OUTSTANDIN

SCHEDULE OF WARRANTS OUTSTANDING (Details)	12 Months Ended
SCHEDULE OF WARRANTS OUTSTANDING (Details)	Dec. 31, 2021$ / sharesshares
Warrant One [Member]
IfrsStatementLineItems [Line Items]
Date issued	Nov. 30, 2020
Expiry Date	Nov. 30, 2022
Exercise price \| $ / shares	$ 3.55
Number of warrants outstanding	482,425
Warrant Two [Member]
IfrsStatementLineItems [Line Items]
Date issued	Feb. 5, 2021
Expiry Date	Feb. 5, 2023
Exercise price \| $ / shares	$ 3.55
Number of warrants outstanding	1,323,275
Warrant Three [Member]
IfrsStatementLineItems [Line Items]
Date issued	Mar. 5, 2021
Expiry Date	Mar. 5, 2023
Exercise price \| $ / shares	$ 3.55
Number of warrants outstanding	5,154,321
Warrant Four [Member]
IfrsStatementLineItems [Line Items]
Date issued	Mar. 22, 2021
Expiry Date	Mar. 22, 2023
Exercise price \| $ / shares	$ 13.35
Number of warrants outstanding	1,200,000
Warrant Five [Member]
IfrsStatementLineItems [Line Items]
Date issued	Jul. 29, 2021
Expiry Date	Jul. 29, 2024
Exercise price \| $ / shares	$ 5
Number of warrants outstanding	250,000
Warrant Six [Member]
IfrsStatementLineItems [Line Items]
Date issued	Sep. 14, 2021
Expiry Date	Sep. 14, 2024
Exercise price \| $ / shares	$ 5
Number of warrants outstanding	4,798
Warrants [Member]
IfrsStatementLineItems [Line Items]
Number of warrants outstanding	8,414,819

SHARE CAPITAL (Details Narrativ

SHARE CAPITAL (Details Narrative) - CAD ($)	Mar. 22, 2021	Feb. 04, 2021	Aug. 15, 2019	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
IfrsStatementLineItems [Line Items]
Value of stock issued for exercise of warrants				$ 4,929,790
Number of stock units issued for regulation financing				6,488,691	511,299
Stock units issued during period value regulation financing				$ 18,815,485	$ 1,518,845
Share capital issuance, description				Each unit is comprised of one common share and one share purchase warrant. These warrants had a fair value of $0.57 USD allocated to them, have an exercise price of $3.55 USD per warrant, each convert to one common share, and have a life of two years.	Each unit is comprised of one common share and one share purchase warrant. These warrants have an exercise price of $3.55 USD per warrant, each convert to one common share, and have a life of two years, expiring on November 30, 2022.
Warrant derivative liability				$ 8,261,511
Number of stock issued for private placement				5,095,966		2,810,300
Value of stock issued for private placement				$ 25,538,213
Number of stock issued for cash proceeds					192,308
Value of stock issued for cash proceeds					$ 500,000
Number of stock issued for debt settlement					111,082
Recongnized loss					$ 344,354
Comprehensive loss					38,879
Proceeds from issuance of notes payable					123,000	$ 1,137,978
Subscription receivable						153,566
Amounts payable, related party transactions					475,628	$ 9,681
Shares issued of settlement trades payable, shares						9,065
[custom:SharesIssuedOfSettlementTradesPayable]						$ 22,662
Trades payable per share						$ 2.50
Shares issued of settlement convertible debentures and accrued interest, shares						423,698
Shares issued of settlement convertible debentures						$ 740,000
Gain loss on settlement of debt						$ 319,246
Purchases of exercise of warrants, shares						63,388
Purchases of exercise of warrants						$ 8,833
Capital reserve				$ 6,406,117	$ 3,024,007	212,908
Number of options outstanding, Granted				247,826	492,000
Weighted average exercise price, Granted				$ 10.12	$ 3.08
Adjustments for share-based payments				$ 3,952,595	$ 2,668,464	761,559
Weighted average remaining contractual life of outstanding share options				1 year 2 months 12 days	1 year 25 days
Warrants issued	1,200,000
Warrants held in escrow	900,000
Warrants [Member]
IfrsStatementLineItems [Line Items]
Warrants Expiration Date Description				During the year ended December 31, 2020, the Company amended the expiry date of the November 5, 2019 warrants from November 5, 2020 to November 5, 2021 provided that 25% of the warrants were exercised by October 21, 2020 and 25% were exercised by May 5, 2021.
Stock Options [Member]
IfrsStatementLineItems [Line Items]
Adjustments for share-based payments				$ 1,660,894	$ 1,724,853	599,701
Restricted Stock Units [Member]
IfrsStatementLineItems [Line Items]
Number of accelerated vesting shares				323,661
Number of shares vested				124,999
Number of shares granted post consolidation				348,826
Share based payment expense				$ 2,291,701	$ 943,611	$ 161,858
Employee [Member]
IfrsStatementLineItems [Line Items]
Number of options outstanding, Granted				30,000	89,000
Weighted average exercise price, Granted				$ 13.20	$ 2.50
Stock option exercisable year				10 years	10 years
Consultant [Member]
IfrsStatementLineItems [Line Items]
Number of options outstanding, Granted				10,000	120,000
Weighted average exercise price, Granted				$ 13.90	$ 3.85
Stock option exercisable year				5 years	10 years
Employees and Consultant [Member]
IfrsStatementLineItems [Line Items]
Number of options outstanding, Granted				182,000
Weighted average exercise price, Granted				$ 10.15
Stock option exercisable year				10 years
Employee One [Member]
IfrsStatementLineItems [Line Items]
Number of options outstanding, Granted				25,826	200,000
Weighted average exercise price, Granted				$ 4.84	$ 3.20
Stock option exercisable year				5 years	5 years
Employee Two [Member]
IfrsStatementLineItems [Line Items]
Number of options outstanding, Granted					33,000
Weighted average exercise price, Granted					$ 2.50
Stock option exercisable year					10 years
Consultant One [Member]
IfrsStatementLineItems [Line Items]
Number of options outstanding, Granted					50,000
Weighted average exercise price, Granted					$ 2.15
Stock option exercisable year					10 years
Employee and Consultant [Member] \| Restricted Stock Units [Member]
IfrsStatementLineItems [Line Items]
Number of options outstanding, Granted					248,000
Draganfly Innovations Shares [Member]
IfrsStatementLineItems [Line Items]
Stock issued during period value units, shares			8,527,671			8,517,671
Purchases of exercise of warrants		$ 1,645,193
Vital Intelligence Inc [Member]
IfrsStatementLineItems [Line Items]
Share capital issuance, description				Each unit is comprised of one common share and one warrant. These warrants have an exercise price of $13.35 per warrant, each convert to one common share, and have a life of two years.		Each unit consists of one common share and one warrant. These warrants have an exercise price of $2.50 per warrant, each convert to one common share, and have a life of one year, expiring on October 25, 2020
Number of stock units issued for acquisition				1,200,000
Dronelogics Inc [Member]
IfrsStatementLineItems [Line Items]
Number of stock units issued for acquisition					645,088
Stock units issued during period shares common shares finder fees					40,000
Common Stock 1 [Member]
IfrsStatementLineItems [Line Items]
Number of stock issued for exercise of warrants				1,580,525	24,000
Value of stock issued for exercise of warrants				$ 3,951,312	$ 60,000
Number of stock issued for restrcited share units				149,999	7,117
Number of stock issued for exercise of options				392,999
Value of stock issued for exercise of options				$ 987,248
Number of shares issued				15,000		143,985
Proceeds from issuance of notes payable						$ 799,341
Subscription receivable						$ 153,566
Shares issued as transactions fees, shares						222,965
Amounts payable, related party transactions						$ 1,000,000
Common Stock 2 [Member]
IfrsStatementLineItems [Line Items]
Number of stock issued for exercise of warrants				359,009	20,000
Value of stock issued for exercise of warrants				$ 978,478	$ 50,000
Number of stock issued for restrcited share units				298,661	2,040
Number of stock issued for exercise of options				12,500
Value of stock issued for exercise of options				$ 26,875
Number of shares issued				356,901
Common Stock 3 [Member]
IfrsStatementLineItems [Line Items]
Number of stock issued for exercise of warrants					210,320
Value of stock issued for exercise of warrants					$ 105,160
Number of stock issued for restrcited share units					2,647
Common Stock 4 [Member]
IfrsStatementLineItems [Line Items]
Number of stock issued for exercise of warrants					73,000
Value of stock issued for exercise of warrants					$ 36,500
Number of stock issued for restrcited share units					188,194
Common Stock 5 [Member]
IfrsStatementLineItems [Line Items]
Number of stock issued for exercise of warrants					294,840
Value of stock issued for exercise of warrants					$ 147,420
Common Stock 6 [Member]
IfrsStatementLineItems [Line Items]
Number of stock issued for exercise of warrants					121,840
Value of stock issued for exercise of warrants					$ 60,920
Common Stock 7 [Member]
IfrsStatementLineItems [Line Items]
Number of stock issued for exercise of warrants					126,000
Value of stock issued for exercise of warrants					$ 115,000
Common Stock 8 [Member]
IfrsStatementLineItems [Line Items]
Number of stock issued for exercise of warrants					12,000
Value of stock issued for exercise of warrants					$ 30,000
Common Stock 9 [Member]
IfrsStatementLineItems [Line Items]
Number of stock issued for exercise of warrants					45,600
Value of stock issued for exercise of warrants					$ 114,000
Common Stock 10 [Member]
IfrsStatementLineItems [Line Items]
Number of stock issued for exercise of warrants					2,000
Value of stock issued for exercise of warrants					$ 5,000
Common Stock 11 [Member]
IfrsStatementLineItems [Line Items]
Number of stock issued for exercise of warrants					2,200
Value of stock issued for exercise of warrants					$ 5,500
Common Stock 12 [Member]
IfrsStatementLineItems [Line Items]
Number of stock issued for exercise of warrants					637,975
Value of stock issued for exercise of warrants					$ 1,594,938
Common Stock 13 [Member]
IfrsStatementLineItems [Line Items]
Number of stock issued for exercise of warrants					15,000
Value of stock issued for exercise of warrants					$ 37,500

SCHEDULE OF PRODUCT AND SERVICE

SCHEDULE OF PRODUCT AND SERVICE REVENUE (Details) - CAD ($)	12 Months Ended
SCHEDULE OF PRODUCT AND SERVICE REVENUE (Details) - CAD ($)	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
IfrsStatementLineItems [Line Items]
Revenue	$ 7,053,865	$ 4,363,511	$ 1,380,427
Product Sales [member]
IfrsStatementLineItems [Line Items]
Revenue	5,103,399	3,087,223	248,939
Drone Service [member]
IfrsStatementLineItems [Line Items]
Revenue	1,304,799	630,532
Services [Member]
IfrsStatementLineItems [Line Items]
Revenue	$ 645,667	$ 645,756	$ 1,131,488

SCHEDULE OF GEOGRAPHIC REVENUE

SCHEDULE OF GEOGRAPHIC REVENUE (Details) - CAD ($)	12 Months Ended
SCHEDULE OF GEOGRAPHIC REVENUE (Details) - CAD ($)	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Reserve Quantities [Line Items]
Revenue	$ 7,053,865	$ 4,363,511	$ 1,380,427
CA Country [member]
Reserve Quantities [Line Items]
Revenue	4,937,935	2,270,862	127,118
US Country [member]
Reserve Quantities [Line Items]
Revenue	2,071,492	1,982,404	1,251,199
International [member]
Reserve Quantities [Line Items]
Revenue	$ 44,438	$ 110,245	$ 2,110

SCHEDULE OF OPERATING SEGMENTS

SCHEDULE OF OPERATING SEGMENTS (Details) - CAD ($)	Dec. 31, 2021	Dec. 31, 2020
IfrsStatementLineItems [Line Items]
Goodwill	$ 5,940,409	$ 2,166,563
Property and equipment	297,043	153,870
Intangible assets	593,901	273,867
Investments	291,066
Notes receivable	964,006
Right of use assets	468,106	144,419
TOTAL ASSETS	42,113,240	$ 7,100,567
Canada [member]
IfrsStatementLineItems [Line Items]
Goodwill	2,166,564
Property and equipment	297,043
Intangible assets	219,093
Investments	291,066
Notes receivable
Right of use assets	468,106
TOTAL ASSETS	3,441,872
United States [member]
IfrsStatementLineItems [Line Items]
Goodwill	3,773,845
Property and equipment
Intangible assets	374,808
Investments
Notes receivable	964,006
Right of use assets
TOTAL ASSETS	5,112,659
International [member]
IfrsStatementLineItems [Line Items]
Goodwill
Property and equipment
Intangible assets
Investments
Notes receivable
Right of use assets
TOTAL ASSETS

REVENUE (Details Narrative)

REVENUE (Details Narrative)	12 Months Ended
REVENUE (Details Narrative)	Dec. 31, 2020CAD ($)
Custom Engineering Services [member]
IfrsStatementLineItems [Line Items]
Service Revenue	$ 474,701

SCHEDULE OF OFFICE AND MISCELLA

SCHEDULE OF OFFICE AND MISCELLANEOUS EXPENSES (Details) - CAD ($)	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Office And Miscellaneous
Advertising, Marketing, and Investor Relations	$ 5,165,791	$ 2,610,930	$ 1,356,174
Compliance fees	432,874	122,916	80,525
Contract Work	300,975	399,546	438,601
Other	556,358	254,473	228,432
Office and Miscellaneous Expenses	$ 6,455,998	$ 3,387,865	$ 2,103,732

SCHEDULE OF KEY MANAGEMENT TRAN

SCHEDULE OF KEY MANAGEMENT TRANSACTIONS (Details) - CAD ($)	12 Months Ended
SCHEDULE OF KEY MANAGEMENT TRANSACTIONS (Details) - CAD ($)	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
IfrsStatementLineItems [Line Items]
Director fees	$ 370,094
Management fees paid to a company	4,445,949	1,762,594	524,101
Salaries	722,068	655,799	179,429
Share-based payments	2,475,949	1,614,158	480,158
Total	4,564,102	3,485,742	1,189,647
CEO and Director [Member]
IfrsStatementLineItems [Line Items]
Management fees paid to a company	290,225	737,164	186,000
President and Director [Member]
IfrsStatementLineItems [Line Items]
Management fees paid to a company	205,691	227,524
Former Director [Member]
IfrsStatementLineItems [Line Items]
Management fees paid to a company	500,074	165,000	195,000
Former Owner [Member]
IfrsStatementLineItems [Line Items]
Salaries		$ 86,097	$ 149,060

RELATED PARTY TRANSACTIONS (Det

RELATED PARTY TRANSACTIONS (Details Narrative) - CAD ($)	12 Months Ended
RELATED PARTY TRANSACTIONS (Details Narrative) - CAD ($)	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
IfrsStatementLineItems [Line Items]
Professional fees	$ 4,445,949	$ 1,762,594	$ 524,101
Amounts payable, related party transactions		475,628	9,681
Business Service Agreement [Member] \| Business Instincts Group [Member]
IfrsStatementLineItems [Line Items]
Professional fees	315,643	177,000	80,000
Consultant Agreement [Member] \| Alberta Ltd [Member]
IfrsStatementLineItems [Line Items]
Professional fees	290,225	525,164	9,000
Amounts payable, related party transactions		321,741	$ 9,450
Executive Agreement [Member] \| Scott Larson [Member]
IfrsStatementLineItems [Line Items]
Professional fees	205,191	227,524
Amounts payable, related party transactions		$ 153,887

SCHEDULE OF CHANGES IN FOREIGN

SCHEDULE OF CHANGES IN FOREIGN EXCHANGE RATES (Details) - CAD ($)	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020
Financial Instruments And Financial Risk Management
Foreign exchange rate	$ 150,715	$ 27,018

SCHEDULE OF FINANCIAL ASSETS ME

SCHEDULE OF FINANCIAL ASSETS MEASURED FAIR VALUE THROUGH PROFIT AND LOSS (Details) - CAD ($)	Dec. 31, 2021	Dec. 31, 2020
IfrsStatementLineItems [Line Items]
Equity securities in investee companies	$ 291,066
Notes receivable	1,154,176
Derivative liability	5,560,002
Total	7,005,244
Level 1 of fair value hierarchy [member]
IfrsStatementLineItems [Line Items]
Equity securities in investee companies	164,286
Notes receivable
Derivative liability
Total	164,286
Level 2 of fair value hierarchy [member]
IfrsStatementLineItems [Line Items]
Equity securities in investee companies	126,780
Notes receivable	1,154,176
Derivative liability
Total	1,280,956
Level 3 of fair value hierarchy [member]
IfrsStatementLineItems [Line Items]
Equity securities in investee companies
Notes receivable
Derivative liability	5,560,002	748,634
Total	$ 5,560,002	$ 748,634

SCHEDULE OF BREAKDOWN CAPITAL (

SCHEDULE OF BREAKDOWN CAPITAL (Details) - CAD ($)	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Financial Instruments And Financial Risk Management
Cash	$ 23,075,713	$ 1,982,416	$ 2,429,375	$ 101,787
Debt	93,317	97,916
Equity	$ 34,926,239	$ 3,848,205

SCHEDULE OF INCOME TAX (Details

SCHEDULE OF INCOME TAX (Details) - CAD ($)	12 Months Ended
SCHEDULE OF INCOME TAX (Details) - CAD ($)	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Loss before income taxes	$ 16,202,972	$ 8,015,813	$ 11,095,507
Canadian statutory rates		27.00%	27.00%
Expected income tax recovery	4,196,600	$ 2,164,000	$ 2,996,000
Impact of different foreign statutory tax rates	34,900
Non-deductible items	116,400	(687,000)	(2,043,000)
Share issue costs	887,600
Adjustments to prior years provision versus statutory tax returns	376,500	189,000	(388,000)
Differences between prior year provision and final tax return	(206,000)	(535,000)	(18,000)
Change in deferred tax asset not recognized	(5,406,000)	(1,131,000)	(547,000)
Income tax

SCHEDULE OF DEFERRED TAXES (Det

SCHEDULE OF DEFERRED TAXES (Details) - CAD ($)	Dec. 31, 2021	Dec. 31, 2020	Jan. 01, 2019
Share issuance costs	$ 728,000	$ 30,000
Non-capital losses	7,043,000	3,656,000	2,439,000
Property and equipment	449,000	457,000	581,000
Capital gain reserve	74,000
Scientific Research and Experimental Development	291,000	57,000	49,000
Total deferred income tax assets	8,585,000	4,200,000	3,069,000
Deferred income tax not recognized	(8,585,000)	(4,200,000)	(3,069,000)
Net deferred tax assets

INCOME TAXES (Details Narrative

INCOME TAXES (Details Narrative)	12 Months Ended
INCOME TAXES (Details Narrative)	Dec. 31, 2021CAD ($)
Tax effect of tax losses	$ 25,487,000

OTHER INCOME (Details Narrative

OTHER INCOME (Details Narrative) - Apr. 27, 2020	USD ($)	CAD ($)
Amount received from sale of investment	$ 854,838	$ 1,179,513

SUPPLEMENTAL CASH FLOW DISCLO_2

SUPPLEMENTAL CASH FLOW DISCLOSURES (Details Narrative) - CAD ($)	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2021
IfrsStatementLineItems [Line Items]
Debt settlement, amount	$ 344,354
Debt settlement, shares issued	111,082
Gai on settlement of debt	$ 28,614
Accounts payable		$ 822,003
Subscription receivable		153,566
Convertible Debentures [member]
IfrsStatementLineItems [Line Items]
Debt settlement, amount		$ 740,000
Vital Intelligence Inc [Member]
IfrsStatementLineItems [Line Items]
Number of shares issued			1,200,000
[custom:WarrantsExercisePrice-0]			$ 13.35
Common Shares [Member]
IfrsStatementLineItems [Line Items]
Number of shares issued		400,000	15,000
Price per share		$ 2.50
Common Shares One [Member]
IfrsStatementLineItems [Line Items]
Number of shares issued			356,901
Fair value of investments other comprehensive loss			$ 332,640

GOVERNMENT ASSISTANCE (Details

GOVERNMENT ASSISTANCE (Details Narrative) - CAD ($)	12 Months Ended
GOVERNMENT ASSISTANCE (Details Narrative) - CAD ($)	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
IfrsStatementLineItems [Line Items]
Wages and salaries	$ 2,768,010	$ 1,649,329	$ 989,083
Canada Emergency Wage Subsidy [member]
IfrsStatementLineItems [Line Items]
Wages and salaries	250,756	490,748
Canada Emergency Rent Subsidy [Member]
IfrsStatementLineItems [Line Items]
Rental expense	22,668
Other receivables
Hardest Hit Business Recovery Program [Member]
IfrsStatementLineItems [Line Items]
Wages and salaries	50,756
Rental expense	3,791
Other receivables	$ 54,548