AgEagle Aerial Systems Inc

For the period ended Jun 30, 2024. Filed Aug 14, 2024.

About this filing

A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.

Jun 30, 2024 · Filed Aug 14, 2024

UAVS$0.37+16.0%Stored close · as of Nov 9, 2026

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Contents

Item 1. FINANCIAL STATEMENTS:

CONDENSED CONSOLIDATED BALANCE SHEETS

	As of
	June 30, 2024 (unaudited)	December 31, 2023
ASSETS
CURRENT ASSETS:
Cash	$977,208	$819,024
Accounts receivable, net	1,538,941	2,057,546
Inventories, net	6,382,209	6,936,980
Prepaid and other current assets	452,762	548,561
Note receivable	—	185,000
Total current assets	9,351,120	10,547,111
Property and equipment, net	597,382	799,892
Right-of-use assets	2,916,300	3,525,406
Intangible assets, net	2,312,333	2,615,281
Goodwill	7,402,644	7,402,644
Other assets	251,057	265,567
Total assets	$22,830,836	$25,155,901
LIABILITIES AND STOCKHOLDERS’ EQUITY
Accounts payable	$3,145,128	$3,062,794
Accrued liabilities	1,663,941	1,944,352
Convertible note	4,264,541	4,504,500
Other short-term loan	1,122,000	—
Contract liabilities	779,993	226,316
Current portion of lease liabilities	892,172	901,925
Current portion of COVID loan	293,158	391,545
Total current liabilities	12,160,933	11,031,432
Long-term portion of lease liabilities	2,119,690	2,721,743
Long-term portion of COVID loan	321,014	489,037
Defined benefit plan obligation	154,725	216,133
Total liabilities	14,756,362	14,458,345
COMMITMENTS AND CONTINGENCIES (NOTE 10)	-	-
STOCKHOLDERS’ EQUITY:
Preferred Stock, $0.001 par value, 25,000,000 shares authorized:
Preferred Stock, Series F Convertible, $0.001 par value, 35,000 shares authorized, 4,295 shares issued and outstanding as of June 30, 2024, and 6,075 shares issued and outstanding as of December 31, 2023	4	6
Common Stock, $0.001 par value, 250,000,000 shares authorized, 13,838,705 and 7,026,297 shares issued and outstanding as of June 30, 2024 and December 31, 2023, respectively	13,840	7,026
Additional paid-in capital	188,192,663	176,167,312
Accumulated deficit	(180,085,841)	(165,583,091)
Accumulated other comprehensive (loss) income	(46,192)	106,303
Total stockholders’ equity	8,074,474	10,697,556
Total liabilities and stockholders’ equity	$22,830,836	$25,155,901

See accompanying notes to these condensed consolidated financial statements.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS

	For the Three Months Ended June 30,		For the Six Months Ended June 30,
	2024	2023	2024	2023
Revenues	$3,392,538	$3,278,212	$7,286,985	$7,335,281
Cost of sales	1,837,963	2,246,678	3,777,988	4,325,115
Gross Profit	1,554,575	1,031,534	3,508,997	3,010,166
Operating expenses:
General and administrative	2,359,105	3,498,761	5,041,763	7,078,283
Research and development	1,082,007	1,369,479	2,212,236	2,951,822
Sales and marketing	653,931	955,845	1,189,354	1,933,720
Lease impairment charge	—	79,287	—	79,287
Total operating expenses	4,095,043	5,903,372	8,443,353	12,043,112
Loss from operations	(2,540,468)	(4,871,838)	(4,934,356)	(9,032,946)
Other income (expense):
Interest expense, net	(349,107)	(289,604)	(4,134,451)	(595,101)
Loss on disposal of fixed assets	—	—	(13,988)	—
Other income (expense), net	(40,133)	(129,141)	(162,500)	(262,035)
Total other expense, net	(389,240)	(418,745)	(4,310,939)	(857,136)
Net loss before provision for income taxes	(2,929,708)	(5,290,583)	(9,245,295)	(9,890,082)
Provision for income taxes	—	—	—	—
Net loss attributable to common stockholders	$(2,929,708)	$(5,290,583)	$(9,245,295)	$(9,890,082)
Net loss per common share - basic and diluted	$(0.24)	$(1.10)	$(0.90)	$(2.13)
Weighted average number of shares outstanding during the period – Basic and Diluted	12,386,396	4,810,897	10,289,418	4,646,127
Comprehensive income (loss):
Net loss attributable to common stockholders	$(2,929,708)	$(5,290,583)	$(9,245,295)	$(9,890,082)
Amortization of unrecognized periodic pension costs	—	699	—	44,044
Foreign currency cumulative translation adjustment	11,158	72,525	(152,495)	123,784
Total comprehensive loss, net of tax	(2,918,550)	(5,217,359)	(9,397,790)	(9,722,254)
Accrued dividends on Series F Preferred Stock	(49,748)	(54,234)	(110,983)	(121,156)
Deemed dividends on Series F Preferred Stock	(7,751)	(4,654,918)	(5,257,455)	(4,910,894)
Total comprehensive loss available to common stockholder	$(2,976,049)	$(9,926,511)	$(14,766,228)	$(14,754,304)

See accompanying notes to these condensed consolidated financial statements.

FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2024

	Par $0.001 Preferred Stock, Series F Convertible Shares	Preferred Stock, Series F Convertible Amount	Par $0.001 Common Stock	Common Stock Amount	Additional Paid-In Capital	Accumulated Other Comprehensive Income (Loss)	Accumulated Deficit	Total Stockholders’ Equity
Balance as of March 31, 2024	3,945	$4	10,891,427	$10,892	$186,247,756	$(57,350)	$(177,148,382)	$9,052,920
Issuance of Preferred Stock, Series F Convertible, net of issuance cost	2,100	2	—	—	2,074,998	—	—	2,075,000
Conversion of Preferred Stock, Series F Convertible shares to Common Stock	(1,750)	(2)	2,916,667	2,917	(2,915)	—	—	—
Dividends on Series F Preferred Stock	—	—	—	—	(49,748)	—	—	(49,748)
Stock-based compensation expense	—	—	—	—	28,535	—	—	28,535
Issuance of Restricted Common Stock	—	—	30,611	31	(31)	—	—	—
Deemed dividend on Series F Preferred Stock	—	—	—	—	7,751	—	(7,751)	—
Issuance costs for sale of Preferred Stock	—	—	—	—	(113,683)	—	—	(113,683)
Foreign currency cumulative translation adjustment	—	—	—	—	—	11,158	—	11,158
Net loss	—	—	—	—	—	—	(2,929,708)	(2,929,708)
Balance as of June 30, 2024	4,295	$4	13,838,705	$13,840	$188,192,663	$(46,192)	$(180,085,841)	$8,074,474

	Par $0.001 Preferred Stock, Series F Convertible Shares	Preferred Stock, Series F Convertible Amount	Par $0.001 Common Stock	Common Stock Amount	Additional Paid-In Capital	Accumulated Other Comprehensive Income (Loss)	Accumulated Deficit	Total Stockholders’ Equity
Balance as of December 31, 2023	6,075	$6	140,520,163	$140,521	$176,033,817	$106,303	$(165,583,091)	$10,697,556
Effect on existing shares due to Reverse Split on February 9, 2024	—	—	(133,493,864)	(133,495)	133,495	—	—	—
Issuance of Preferred Stock, Series F Convertible, net of issuance cost	3,100	3	—	—	3,024,997	—	—	3,025,000
Conversion of Preferred Stock, Series F Convertible shares to Common Stock	(4,880)	(5)	5,868,717	5,869	(5,864)	—	—	—
Conversion of Convertible Note principal to Common Stock	—	—	79,828	80	99,920	—	—	100,000
Dividends on Series F Preferred Stock	—	—	—	—	(110,983)	—	—	(110,983)
Exercise of warrants issued with Series F	—	—	829,500	830	496,871	—	—	497,701
Stock-based compensation expense	—	—	—	—	47,115	—	—	47,115
Issuance of Restricted Common Stock	—	—	34,361	35	(35)	—	—	—
Conversion Price of Promissory Note on Exchange Agreement	—	—	—	—	3,488,851	—	—	3,488,851
Deemed dividend on Series F Preferred Stock	—	—	—	—	5,257,455	—	(5,257,455)	—
Issuance costs for sale of Preferred Stock	—	—	—	—	(272,976)	—	—	(272,976)
Foreign currency cumulative translation adjustment	—	—	—	—	—	(152,495)	—	(152,495)
Net loss	—	—	—	—	—	—	(9,245,295)	(9,245,295)
Balance as of June 30, 2024	4,295	$4	13,838,705	$13,840	$188,192,663	$(46,192)	$(180,085,841)	$8,074,474

FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2023

	Par $0.001 Preferred Stock, Series F Convertible Shares	Preferred Stock, Series F Convertible Amount	Par $0.001 Common Stock	Common Stock Amount	Additional Paid-In Capital	Accumulated Other Comprehensive Income	Accumulated Deficit	Total Stockholders’ Equity
Balance as of March 31, 2023	7,865	$8	90,771,375	$90,772	$158,378,640	$104,687	$(116,408,919)	$42,165,188
Effect on existing shares due to Reverse Split on February 9, 2024	—	—	(86,232,806)	(86,233)	86,233	—	—	—
Sales of common stock, net of issuance costs	—	—	836,000	836	3,816,564	—	—	3,817,400
Conversion of Preferred Stock, Series F Convertible shares to Common Stock	(840)	(1)	100,000	100	(99)	—	—	—
Dividends on Series F Preferred Stock	—	—	—	—	(54,234)	—	—	(54,234)
Deemed dividend on Series F Preferred Stock and warrant	—	—	—	—	4,654,918	—	(4,654,918)	—
Stock-based compensation expense	—	—	—	—	469,835	—	—	469,835
Amortization of unrecognized periodic pension costs	—	—	—	—	—	699	—	699
Foreign currency cumulative translation adjustment	—	—	—	—	—	72,525	—	72,525
Net loss	—	—	—	—	—	—	(5,290,583)	(5,290,583)
Balance as of June 30, 2023	7,025	$7	5,474,569	$5,475	$167,351,857	$177,911	$(126,354,420)	$41,180,830

FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2023

	Par $0.001 Preferred Stock, Series F Convertible Shares	Preferred Stock, Series F Convertible Amount	Par $0.001 Common Stock Shares	Common Stock Amount	Additional Paid-In Capital	Accumulated Other Comprehensive Income	Accumulated Deficit	Total Stockholders’ Equity
Balance as of December 31, 2022	5,863	$6	88,466,613	$88,467	$154,679,363	$10,083	$(111,553,444)	$43,224,475
Effect on existing shares due to Reverse Split on February 9, 2024	—	—	(84,043,282)	(84,043)	84,043	—	—	—
Sales of common stock, net of issuance costs	—	—	836,000	836	3,816,564	—	—	3,817,400
Issuance of Preferred Stock, Series F Convertible, net of issuance cost	3,000	3	—	—	2,999,997	—	—	3,000,000
Conversion of Preferred Stock, Series F Convertible shares to Common Stock	(1,838)	(2)	215,238	215	(213)	—	—	—
Dividends on Series F Preferred Stock	—	—	—	—	(121,156)	—	—	(121,156)
Deemed dividend on Series F Preferred Stock and warrant	—	—	—	—	4,910,894	—	(4,910,894)	—
Stock-based compensation expense	—	—	—	—	982,365	—	—	982,365
Amortization of unrecognized periodic pension costs	—	—	—	—	—	44,044	—	44,044
Foreign currency cumulative translation adjustment	—	—	—	—	—	123,784	—	123,784
Net loss	—	—	—	—	—	—	(9,890,082)	(9,890,082)
Balance as of June 30, 2023	7,025	$7	5,474,569	$5,475	$167,351,857	$177,911	$(126,354,420)	$41,180,830

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The text of this filing, as the company filed it with the SEC, without its images or exhibits. This is not investment advice.