This is a significant win for us because as we prove that platform out with them over the course of this next six months or eight months. It presumably, I hope we will become that recommendation. I think we’re well down that path for the rest of the industry in this particular energy industry, which has a potential to thousands of drones annually. A couple of the last few operational highlights that I will just mentioned, is certainly the unveiling of our Commander 3XL hybrid. This is the first time we’ve got into the gas engine business. It’s not the first gas engine drill that we’ve made. But in terms of doing it at scale, this is the first side that we’ve done, and we’ve really, I think, nailed this particular product. And again, the pipeline is not quite yet the order book yet, but the order book is significant.
But that pipeline is much bigger than we expected on this thing. The other thing I wanted to mention here is we had our first customer what we call the Draganflyer Xperience. So our first user event or our first customer event at our Joint A.I.R Center down in Texas. And Joint A.I.R Center has become a real strategic differentiator for us, it’s allowing us to bring in multiple groups and give them time on the stick, give them time with the software, run use case scenarios, do everything from land mine detection right through to hostile situation, right through to combat scenario, right through to the leasing scenarios, mapping survey, energy inspection. It is really a differentiator for us. And it’s anything of size, we’re actually pushing people to go through to use the equipment and to take the training there even ahead of time, because it really allows us to build a relationship with them, it really gets their confidence up in terms of what this product is, how it’s been built, how it’s really been thought about as pilots doing the designing and actually coming up and working with these use cases and our customers.
So we look forward to that having a very, very busy year at the Joint A.I.R center in Texas. But I can’t stress enough the new manufacturing plants. I was ask the question today, when are we really going to see this industry scale and who is scaling in the industry. And I’ve talked about a number of companies who have some fantastic products, but the fact is nobody is yet in North America has scaled. It has got nothing to do with the demand signals are all there. There’s no question about it. The issue is that the manufacturing base has still been so young and immature that it has not had been able to be at the point of where it can commit to and guarantee the demand signal that is coming. So you don’t get a government customer that comes up and says, hey, we want 100 or 200 or 500 of these things, can you produce them?
Anybody can say yes, but the next thing they’ll do is they will go and they will check out your facilities, check out your infrastructure, your processes and ensure that you can produce 500 in the next month or two. And if you don’t have that capacity, you don’t get the order, no matter how good your equipment is, so right now, the industry is all about who can produce. And so I really want to stress it again, just how impressed I am with the team that have put the new plan together where we stand on them and the capacity that we’re now able to meet. On that note, I’m going to turn it over to Paul Sun, our CFO, to review the financials. Paul?
Paul Sun: Yes. Thanks, Cam. Thanks, everyone, for joining. Yeah, this is a quick snapshot for Q3. As Cam mentioned at the outset, Q3 revenue did represent our best Q3 to date. Revenue for the third quarter was up 14% to $2.1 million, up from $1.8 million in the third quarter of last year. Third quarter revenue comprised of $1.65 million from product sales with the balance coming from drone services, and the increase in revenue is due primarily to higher product sales versus a year ago. Gross profit, Cam mentioned $895 million, actually would have been a bit higher at $903 million, excluding a small onetime cash write-down of inventory. Gross margin as a percentage of revenue was 42% and would have been a little bit higher than that, 42.2% this quarter, up 44.1% from Q3 of last year.
The increase in gross margin as a percentage was primarily a result of the sale that was using inventory that had previously been written off, which made the margin higher. Total comprehensive loss for the quarter was $5.5 million, compared to a comprehensive loss of $5 million in the same quarter last year. This quarter includes a non-cash change comprised of a small write-down of $8,600 of inventory and an impairment of note receivable of $105,000 and would otherwise be a comprehensive loss of $5.4 million. In Q3 of 2022, there was a loss that included a gain in fair value of derivative liability of $305,000 and we otherwise been a loss of $5.3 million. So as a result, the year-over-year change in loss was minimal and mostly driven by the benefit of an FX translation from last year, as SG&A expenses this year was down this quarter year-over-year.
