• 44,455,000 Performance Options vested due to $200M cash receipts milestone
• Company on track for another record year
• Next tranche of Performance Options to have $300M, $400M, and $500M revenue/cash receipts hurdles

DroneShield Limited (ASX:DRO) has announced that 44,455,000 Performance Options with various expiry dates have vested, due to the company reaching the required milestone of $200 million of cash receipts within a 12-month rolling period. Achievement of the performance hurdle has been verified by DroneShield's auditor, HLB Mann Judd. DroneShield's CEO, Oleg Vornik, commented that the Performance Options align the DroneShield team and its investors, enabling the company to attract the best talent and incentivise performance, while reducing the cash burden as it continues to rapidly grow. The company is pleased to reach this $200 million cash receipts 12-month milestone and looks forward to maximising performance for the remainder of this record year, and building a strong foundation for 2026 and beyond. To ensure continued alignment, the company will implement the next generation of its incentive structure, and performance options granted to eligible DroneShield team members will have staged performance hurdles of $300 million, $400 million, and $500 million of either revenue or cash receipts in a rolling 12-month period. The rationale for the new options to be entirely revenue and cash receipt based is to create a simple to understand structure for the company's staff, aligning the whole of the business towards maximising sales, as the demand for counterdrone equipment is relatively inelastic and the high gross profit margin drives leverage in the business as the revenues grow.

DroneShield is on track for another record year by a large magnitude, with the company achieving $200 million in cash receipts within a 12-month rolling period. The next tranche of Performance Options will have performance hurdles of $300 million, $400 million, and $500 million of annual revenues or cash receipts.