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AgEagle Announces Third Quarter 2023 Results

WICHITA, Kan., Nov. 14, 2023 (GLOBE NEWSWIRE) -- AgEagle Aerial Systems Inc. (NYSE American: UAVS) (“AgEagle” or the “Company”), an ​industry-leading​ provider of full stack flight hardware, sensors and software for commercial and government use, today announces its financial results for the three and nine months ended September 30, 2023.

Third Quarter 2023 Financial Highlights

For more detailed information relating to the Company’s second quarter financial performance, please refer to the Interim Report on Form 10-Q filed yesterday afternoon with the U.S. Securities and Exchange Commission and accessible at  www.sec.gov or on AgEagle’s website at  www.ageagle.com.

Third Quarter 2023 Operational Highlights

Barrett Mooney, AgEagle’s Chairman and CEO, stated, “We enter the fourth quarter of 2023 optimistic about the Company’s long-term growth potential following the commercial release of our new eBee VISION drone. Given the rise in geopolitical conflicts and correlating increase in drone usage, we believe that AgEagle is well-positioned to support the increasing demand while remaining committed to achieving cost and productivity efficiencies and executing ongoing product innovation and our global marketing strategies.”

About AgEagle Aerial Systems Inc.

Through its three centers of excellence, AgEagle is actively engaged in designing and delivering best-in-class flight hardware, sensors and software that solve important problems for its customers. Founded in 2010, AgEagle was originally formed to pioneer proprietary, professional-grade, fixed-winged drones and aerial imagery-based data collection and analytics solutions for the agriculture industry. Today, AgEagle is a leading provider of full stack drone solutions for customers worldwide in the energy, construction, agriculture, and government verticals. For additional information, please visit our website at  www.ageagle.com.

Forward-Looking Statements

This press release may contain “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Such statements involve risks and uncertainties that could negatively affect our business, operating results, financial condition, and stock price. Factors that could cause actual results to differ materially from management’s current expectations include those risks and uncertainties relating to our competitive position, the industry environment, potential growth opportunities, and the effects of regulation and events outside of our control, such as natural disasters, wars, or health epidemics. We expressly disclaim any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements contained herein to reflect any change in our expectations or any changes in events, conditions, or circumstances on which any such statement is based, except as required by law.

AgEagle Aerial Systems Contacts:

Investor Relations:
Email UAVS@ageagle.com
Media: 
Email:  media@ageagle.com

SYSTEMS INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS

  As of 
  September 30, 2023   December 31, 2022 
  (unaudited)    
ASSETS        
CURRENT ASSETS:        
Cash $1,600,143   $4,349,837 
Accounts receivable, net  2,015,045    2,213,040 
Inventories, net  6,063,935    6,685,847 
Prepaid and other current assets  832,188    1,029,548 
Notes receivable  185,000    185,000 
Total current assets  10,696,311    14,463,272 
         
Property and equipment, net  597,964    791,155 
Right of use assets  3,498,051    3,952,317 
Intangible assets, net  9,242,659    11,507,653 
Goodwill  21,679,411    23,179,411 
Other assets  336,091    291,066 
Total assets $46,050,487   $54,184,874 
         
LIABILITIES AND STOCKHOLDERS’ EQUITY        
Accounts payable $2,125,689   $1,845,135 
Accrued liabilities  1,650,609    1,680,706 
Promissory note  2,625,000    287,381 
Contract liabilities  329,536    496,390 
Current portion of lease liabilities  840,535    628,113 
Current portion of COVID loans  306,722    446,456 
Total current liabilities  7,878,091    5,384,181 
         
Long term portion of lease liabilities  2,756,056    3,161,703 
Long term portion of COVID loans  509,184    446,813 
Defined benefit plan obligation      106,163 
Long term portion of promissory note  1,470,000    1,861,539 
Total liabilities  12,613,331    10,960,399 
         
COMMITMENTS AND CONTINGENCIES (SEE 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, 6,275 shares issued and outstanding as of September 30, 2023, and 5,863 shares issued and outstanding as of December 31, 2022, respectively  6    6 
         
Common Stock, $0.001 par value, 250,000,000 shares authorized, 117,878,831 and 88,466,613 shares issued and outstanding as of September 30, 2023, and December 31, 2022, respectively  117,880    88,467 
Additional paid-in capital  167,523,676    154,679,363 
Accumulated deficit  (134,374,548)   (111,553,444)
Accumulated other comprehensive income  170,142    10,083 
Total stockholders’ equity  33,437,156    43,224,475 
Total liabilities and stockholders’ equity $46,050,487   $54,184,874 

See accompanying notes to these condensed consolidated financial statements.

AGEAGLE AERIAL SYSTEMS INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS
(UNAUDITED)

  For the Three Months Ended
September 30,
  For the Nine Months Ended
September 30,
 
  2023  2022  2023  2022 
Revenues $3,483,932  $5,490,714  $10,819,213  $14,620,565 
Cost of sales  2,269,858   3,407,573   6,594,973   8,622,436 
Gross Profit  1,214,074   2,083,141   4,224,240   5,998,129 
                 
Operating Expenses:                
General and administrative  3,357,550   4,175,090   10,435,834   14,093,655 
Research and development  1,368,394   1,818,540   4,320,216   6,185,777 
Sales and marketing  978,243   1,236,841   2,911,963   3,736,548 
Impairment  1,500,000      1,579,287    
Total Operating Expenses  7,204,187   7,230,471   19,247,300   24,015,980 
Loss from Operations  (5,990,113)  (5,147,330)  (15,023,060)  (18,017,851)
                 
Other Income (Expense):                
Interest expense, net  (399,651)  (6,727)  (994,751)  (29,776)
Gain (loss) on debt extinguishment  (1,523,867)  6,486,899   (1,523,867)  6,486,899 
Other income (expense), net  (106,497)  332,110   (368,532)  27,372 
Total Other Income (Expense), net  (2,030,015)  6,812,282   (2,887,150)  6,484,495 
Net Income (Loss) Before Income Taxes  (8,020,128)  1,664,952   (17,910,210)  (11,533,356)
Provision for income taxes            
Net Income (Loss) $(8,020,128) $1,664,952  $(17,910,210) $(11,533,356)
                 
Net Income (Loss) Per Common Share – Basic $(0.07) $0.02  $(0.18) $(0.14)
                 
Net Income (Loss) Per Common Share – Diluted $(0.07) $0.01  $(0.18) $(0.14)
                 
Weighted Average Number of Shares Outstanding During the Period – Basic  111,083,155   85,966,687   98,976,085   81,004,011 
                 
Weighted Average Number of Shares Outstanding During the Period – Diluted  111,083,155   113,623,789   98,976,085   81,004,011 
                 
Comprehensive Income (Loss):                
Net Income (Loss) attributable to common stockholders $(8,020,128) $1,664,952  $(17,910,210) $(11,533,356)
                 
Amortization of unrecognized periodic pension costs  (742)  97,846   43,302   100,487 
Foreign currency cumulative translation adjustment  (7,027)  (372,368)  116,757   (220,060)
Total comprehensive income (loss), net of tax  (8,027,897)  1,390,430   (17,750,151)  (11,652,929)
Accrued dividends on Series F Preferred Stock  (49,122)  (94,694)  (170,277)  (94,694)
Deemed dividend on Series F Preferred Stock and warrants        (4,910,894)   
Total comprehensive income (loss) available to common stockholders $(8,077,019) $1,295,736  $(22,831,322) $(11,747,623)

See accompanying notes to these condensed consolidated financial statements. 

AGEAGLE AERIAL SYSTEMS INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)

  For the Nine Months Ended
September 30,
 
  2023  2022 
CASH FLOWS FROM OPERATING ACTIVITIES:        
Net loss $(17,910,210) $(11,533,356)
Adjustments to reconcile net loss to net cash used in operating activities:        
Stock-based compensation  1,125,209   3,058,741 
Depreciation and amortization  3,027,644   2,887,244 
Defined benefit plan obligation and other  (188,653)  (148,851)
Amortization of debt discount and warrant modification  612,712    
(Loss) gain on debt extinguishment  1,523,867   (6,486,899)
Goodwill impairment  1,500,000    
Lease impairment charge  79,287     
Changes in assets and liabilities:        
Accounts receivable, net  223,208   (396,617)
Inventories, net  660,208   (2,221,569)
Prepaid expenses and other assets  237,815   22,579 
Accounts payable  264,123   (281,937)
Accrued expenses and other liabilities  (28,133)  (193,818)
Contract liabilities  (169,352)  (307,610
Other  212,606   433,357 
Net cash used in operating activities  (8,829,669)  (15,168,736)
         
CASH FLOWS FROM INVESTING ACTIVITIES:        
Purchases of property and equipment  (95,004)  (250,379)
Payment of acquisition-related liabilities     (6,610,900)
Capitalization of platform development costs  (297,596)  (635,568)
Capitalization of internal use software costs  (171,516)  (565,894)
Net cash used in investing activities  (564,116)  (8,062,741)
         
CASH FLOWS FROM FINANCING ACTIVITIES:        
Sales of Common Stock, net of issuance costs  3,817,400   4,583,341 
Sale of Preferred Stock, Series F Convertible, net of issuance costs  3,000,000   9,920,000 
Exercise of stock options     74,350 
Repayments on COVID loans  (87,052)  (173,313)
Net cash provided by financing activities  6,730,348   14,404,378 
         
Effects of foreign exchange rates on cash flows  (86,257  (460,980)
         
Net decrease in cash  (2,749,694)  (9,288,079)
Cash at beginning of period  4,349,837   14,590,566 
Cash at end of period $1,600,143  $5,302,487 
         
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:        
Interest cash paid $  $ 
Income taxes paid $  $ 
NON-CASH INVESTING AND FINANCING ACTIVITIES:        
Conversion of Preferred Stock, Series F Convertible to Common Stock $7,305  $5,950 
Issuance of Restricted Common Stock $388  $316 
Dividends on Series F Preferred Stock $170,277  $94,694 
Deemed dividend on Series F Preferred stock and warrant $4,910,894  $ 
Stock consideration for senseFly Acquisition $  $3,000,000 
Settlement of Common Stock from contingent liability related to Measure $  $2,812,500 

See accompanying notes to condensed consolidated financial statements.


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