Drone Aviation Holding Corp (OTCMKTS:DRNE) has been quietly creeping up the charts as of late. While it hasn't captured investor's attention like its competitor Valmie Resources Inc (OTCBB:VMRI), we think that could change. The reason being is that like Valmie, there are some major tailwinds pushing the drone industry forward. Most notably being that the FAA has now finalized the rules for commercial drones.This is a big big deal for the industry because in one fell swoop, the FAA created an $82 billion industry. The new rules will allow Wal-Mart, Amazon and other companies to pursue not only using drones in their warehouses, but also door-to-door delivery. We are firsthand witnessing the birth of a new multi-billion dollar industry.The rules will become effective in August and will allow the use of UAVs weighing up to 55 pounds, traveling as fast as 100 mph for non-hobbyist operations, and flying in an altitude no higher than 400 feet. Operations are limited to daytime, line-of-sight use, in which the pilot can see that UAV at all times. Operations are allowed in uncontrolled airspace (Class G) without air traffic control (ATC) permission, but require ATC permission if flying in controlled airspace (Classes B, C, D, and E), the airspace around commercial airports.These new rules fit into DRNE's plans. The FAA rules include many guidelines believed to be beneficial for the safe operation of DRNE's tethered drones, including the ability to operate a continuous flight up to 400 feet during daylight hours with a single operator maintaining direct line of sight of the drone at all times. The new rules are expected to have a positive impact for state entities exploring how to deploy drones to support first responders as well as commercial entities seeking to expand security for large public venues and commercial facilities. Furthermore, the new rules are expected to greatly facilitate the use of DRNE's tethered drone technology for news gathering and infrastructure inspection applications.Drone Aviation Holding Corp develops and manufactures cost-effective, compact and rapidly deployable aerial platforms, including lighter-than-air aerostats and electric-powered drones designed to provide government and commercial customers with enhanced surveillance and communication capabilities. Utilizing a proprietary tether system, Drone Aviation's products are designed to provide prolonged operational duration capabilities combined with improved reliability, uniquely fulfilling critical requirements in military, law enforcement, commercial, and industrial applications.Last month, the company introduced the Bolt platform, its newest addition to its drone portfolio. Designed to meet a wide range of military applications requiring persistent, heavy lift capabilities, the Bolt coaxial tethered helicopter delivers rapid setup, high mobility and whisper-quiet operations at altitudes up to 800 feet. Bolt was unveiled at the ADS' Warrior Expo East held on July 14th and July 15th at the Virginia Beach Convention Center at Drone Aviation's Booth, #523. Chairman and CEO Jay Nussbaum said:
"Access to altitude for communications and surveillance provides our military and security forces with critical, life-saving advantages, allowing them to see and reach farther and react quicker, which is why we believe Bolt will quickly demonstrate unmatched value from the battlefield to the border. Designed with valuable input from military and civilian customers and partners, the addition of Bolt to our expanding product portfolio will allow us to provide customers with a growing number of cost effective, long duration aerial solutions capable of meeting a diverse range of operational requirements."
Jay Nussbaum became the CEO back in May. He has been one of the company's principal investors and brings to the corner suite an impressive CV. He was an EVP at Oracle Service Industries where he reported directly to Oracle's chairman and CEO, Larry Ellison. At Oracle, he oversaw government, education, health, communications, utilities and financial services operations, helping grow the U.S. government business from less than $60 million to more than $1.5 billion in less than ten years. Nussbaum also served as founder, vice chairman and chief operating officer of Agilex Technologies Inc., successfully growing the start-up business to over $300 million in annual revenue before it was acquired by Accenture Federal Services.In addition, retired Lt. General Michael T. Flynn is Vice Chairman of the Board. He served in the United States Army for more than 33 years. His career includes serving as the Director of the Defense Intelligence Agency, Commander of the Joint Functional Component Command for Intelligence, Surveillance and Reconnaissance, and Chair of the Military Intelligence Board. He's also an adviser to Donald Trump and was considered a possible VP pick. If Trump wins the White House, we feel this will only help DRNE's business considering Flynn's involvement.Currently trading with a market cap of $28 million, DRNE is an exciting story on the OTC Markets. In looking at the company's latest financials, we see that the company reported in the quarter ending March 2016 $443k in total revenue, a net loss of $1.2 million, $1.7 million in cash, $4.1 million in total assets, and just $383k in total liabilities.If you compare DRNE to VMRI, which has a $107 million market cap, DRNE is the better bet in our opinion. Currently, VMRI is generating zero revenues and posting losses. VMRI posted a loss of $83k in the latest quarter and $2.8 million in the prior quarter. We believe drone investors need to keep their eye on DRNE. For the latest updates on DRNE, sign up for our free small cap newsletter today!Disclosure: We have no position in DRNE and have not been compensated for this article.
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