Technology

Elsight’s drone tracking tech picked up by US flying doctor service

Thu 30 Jun 22, 1:53pm (AEST)
A drone flies at a high altitude
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Key Points

  • Air Methods, the US equivalent to the flying doctor service, has picked up Elsight’s tracking tech for UAVs
  • Air Method’s subsidiary Spright moving into drone-based delivery of medical supplies
  • Spright will adopt Halo technology into its existing UAV fleet, and become a US reseller

Elsight (ASX:ELS) shares are up 1.27% as the company announces its ‘Halo’ drone tracking tech is being picked up by Spright. 

Spright is the subsidiary of US company Air Methods, which provides emergency evacuation services in medical emergencies. 

Australian investors will likely see key similarities between Air Methods and the Royal Flying Doctor Service. 

Spright’s delivery drones to use Halo 

Ultimately, the fleet of UAVs (drones) Spright owns and uses to deliver supplies to consumers and other parties will now use Elsight’s Halo tech on-board. 

Halo is a high-impact offering which uses AI to “guarantee constant uptime and connection between drones and ground control stations.” 

The benefits here are obvious: less risk of lag or disconnection in real-time tracking of medical supply delivery, which could derail critical response events. 

The company notes Spright’s drones are also used to deliver biological specimen samples to laboratories. 

To get an idea of what Elsight are angling for here, it could be beneficial to look at projections of growth in the UAV market per sector
To get an idea of what Elsight are angling for here, it could be beneficial to look at projections of growth in the UAV market per sector

Humble start to a promising relationship 

At this time, Elsight stands to make $130,000 from the deal (US$90k). 

However, management describes today’s contract execution as the “launching pad” for an ongoing relationship with Air Method’s Spright. 

The subsidiary is intending to expand into Europe in the coming years. 

Elsight steady through turbulence 

Elsight listed in early July 2017 trading at 15c. By the 1st of December that year, it was worth $1.47c — the all time high for the price. 

Clearly, enthusiasm was overwrought (or overbought) — by May 2018, the price had fallen to 43c. 

Within that range it has remained since. In July of 2020, the first year of covid, the price dipped to 26c, but quickly recovered in the same year. 

Despite ongoing tech sell offs across world markets in recent months, Elsight has largely remained steady around 40c, though this may be a consequence of relatively low liquidity. 

At the end of third quarter FY22, the company had $1.14m cash in hand. 

It spent $810,000 across the quarter — depending on the look of its full year results, it’s conceivable the company may need to raise money soon. 

Elsight's three month charts compared to the tech index (XIJ)
Elsight's three month charts compared to the tech index (XIJ)

 

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Written By

Jonathon Davidson

Finance Writer

Jonathon is a journalism graduate and avid market watcher with exposure to governance, NGO and mining environments. He was most recently hired as an oil and gas specialist for a trade publication. Email Jon at [email protected].

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