[Form 10-Q Filing Information](index=1&type=section&id=Form%2010-Q%20Filing%20Information) [Filing Details](index=1&type=section&id=Filing%20Details) This section identifies the Form 10-Q for AgEagle Aerial Systems Inc. for the quarterly period ended September 30, 2023, noting its filer status and shares outstanding - The filing is a Quarterly Report on Form 10-Q for the period ended September 30, 2023[1](index=1&type=chunk) - AgEagle Aerial Systems Inc. is a Nevada corporation[2](index=2&type=chunk) Filer Status and Shares Outstanding | Metric | Value | | :-------------------------- | :-------------------- | | Filer Status | Non-accelerated filer, Smaller reporting company | | Common Stock Outstanding (as of Nov 13, 2023) | 117,878,831 shares | [PART I – FINANCIAL INFORMATION](index=4&type=section&id=PART%20I%20FINANCIAL%20INFORMATION) [ITEM 1. FINANCIAL STATEMENTS](index=4&type=section&id=ITEM%201.%20FINANCIAL%20STATEMENTS) This item presents the unaudited condensed consolidated financial statements, including balance sheets, statements of operations, and cash flows, with accompanying notes for the three and nine months ended September 30, 2023 and 2022 - The financial statements are condensed, consolidated, and unaudited, covering the three and nine months ended September 30, 2023 and 2022[7](index=7&type=chunk)[24](index=24&type=chunk) [Condensed Consolidated Balance Sheets](index=4&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) This section provides a snapshot of the company's financial position, including assets, liabilities, and stockholders' equity Condensed Consolidated Balance Sheet Highlights | Metric | Sep 30, 2023 (unaudited) | Dec 31, 2022 | | :-------------------------- | :----------------------- | :------------------- | | Total Assets | $46,050,487 | $54,184,874 | | Total Liabilities | $12,613,331 | $10,960,399 | | Total Stockholders' Equity | $33,437,156 | $43,224,475 | | Cash | $1,600,143 | $4,349,837 | | Goodwill | $21,679,411 | $23,179,411 | - Total assets decreased by **$8.13 million**, while total liabilities increased by **$1.65 million**, leading to a **$9.79 million** decrease in total stockholders' equity from December 31, 2022, to September 30, 2023[9](index=9&type=chunk) [Condensed Consolidated Statements of Operations and Comprehensive Income (Loss)](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations%20and%20Comprehensive%20Income%20(Loss)) This section details the company's revenues, expenses, and net income or loss for the reporting periods Statements of Operations Highlights (Three Months Ended Sep 30) | Metric | 2023 | 2022 | YoY Change | | :---------------------------------- | :----------- | :----------- | :----------- | | Revenues | $3,483,932 | $5,490,714 | -36.5% | | Gross Profit | $1,214,074 | $2,083,141 | -41.7% | | Loss from Operations | $(5,990,113) | $(5,147,330) | +16.4% (loss increase) | | Net Income (Loss) | $(8,020,128) | $1,664,952 | -581.7% (loss increase) | | Net Income (Loss) Per Common Share – Basic | $(0.07) | $0.02 | - | | Total Other Income (Expense), net | $(2,030,015) | $6,812,282 | - | | Total comprehensive income (loss), net of tax | $(8,027,897) | $1,390,430 | - | | Total comprehensive income (loss) available to common stockholders | $(8,077,019) | $1,295,736 | - | Statements of Operations Highlights (Nine Months Ended Sep 30) | Metric | 2023 | 2022 | YoY Change | | :---------------------------------- | :------------ | :------------ | :----------- | | Revenues | $10,819,213 | $14,620,565 | -26.0% | | Gross Profit | $4,224,240 | $5,998,129 | -29.6% | | Loss from Operations | $(15,023,060) | $(18,017,851) | -16.6% (loss decrease) | | Net Income (Loss) | $(17,910,210) | $(11,533,356) | +55.3% (loss increase) | | Net Income (Loss) Per Common Share – Basic | $(0.18) | $(0.14) | - | | Total Other Income (Expense), net | $(2,887,150) | $6,484,495 | - | | Total comprehensive income (loss), net of tax | $(17,750,151) | $(11,652,929) | - | | Total comprehensive income (loss) available to common stockholders | $(22,831,322) | $(11,747,623) | - | - The shift from other income to other expense was primarily due to promissory note interest and debt extinguishment costs in 2023, contrasting with a non-cash gain on debt extinguishment in 2022[188](index=188&type=chunk)[189](index=189&type=chunk) [Condensed Consolidated Statements of Changes in Stockholders' Equity](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Changes%20in%20Stockholders%27%20Equity) This section outlines the changes in the company's equity accounts over the reporting period Stockholders' Equity Changes (Nine Months Ended Sep 30, 2023) | Metric | Amount | | :------------------------------------------ | :------------- | | Balance as of December 31, 2022 | $43,224,475 | | Net loss | $(17,910,210) | | Sales of common stock, net of issuance costs | $3,817,400 | | Issuance of Preferred Stock, Series F Convertible, net of issuance cost | $3,000,000 | | Deemed dividend on Series F Preferred Stock and warrant | $(4,910,894) | | Stock-based compensation expense | $1,125,209 | | Balance as of September 30, 2023 | $33,437,156 | - Total stockholders' equity decreased by **$9.79 million** from December 31, 2022, to September 30, 2023, primarily due to the net loss and deemed dividends, partially offset by equity issuances[12](index=12&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=12&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) This section reports the cash inflows and outflows from operating, investing, and financing activities Cash Flow Highlights (Nine Months Ended Sep 30) | Metric | 2023 | 2022 | YoY Change | | :---------------------------------- | :----------- | :----------- | :----------- | | Net cash used in operating activities | $(8,829,669) | $(15,168,736) | -41.8% | | Net cash used in investing activities | $(564,116) | $(8,062,741) | -93.0% | | Net cash provided by financing activities | $6,730,348 | $14,404,378 | -53.2% | | Net decrease in cash | $(2,749,694) | $(9,288,079) | -70.4% | | Cash at end of period | $1,600,143 | $5,302,487 | -69.8% | - The decrease in cash used in operating activities was driven by lower sales and operating expenses, including reduced inventory purchases and changes in working capital[193](index=193&type=chunk) - A significant non-cash financing activity was the **$4,910,894** deemed dividend on Series F Preferred stock and warrants[18](index=18&type=chunk) [Notes to Condensed Consolidated Financial Statements](index=14&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) [Note 1 – Description of the Business and Basis of Presentation](index=14&type=section&id=Note%201%20%E2%80%93%20Description%20of%20the%20Business%20and%20Basis%20of%20Presentation) This note describes AgEagle's business, its drone, sensor, and software offerings, and the basis of financial statement presentation - AgEagle designs and delivers drones, sensors, and software for industries including energy/utilities, infrastructure, agriculture, and government[20](index=20&type=chunk) - The company expanded its offerings from fixed-wing farm drones to a full-stack drone solution provider through acquisitions of MicaSense, Measure, and senseFly in 2021[22](index=22&type=chunk)[23](index=23&type=chunk) - AgEagle has achieved regulatory approvals for Beyond Visual Line of Sight (BVLOS) and Operations Over People (OOP) in the US, Canada, Brazil, and the EU[21](index=21&type=chunk) - The company incurred a net loss of **$17,910,210** and used **$8,829,669** in operating cash for the nine months ended September 30, 2023, leading to substantial doubt about its ability to continue as a going concern without additional funding[28](index=28&type=chunk) [Note 2 – Summary of Significant Accounting Policies](index=15&type=section&id=Note%202%20%E2%80%93%20Summary%20of%20Significant%20Accounting%20Policies) This note details the key accounting principles and policies applied in preparing the financial statements - Global economic challenges, including war, pandemics, rising inflation, and supply-chain disruptions, continue to impact the UAV industry and the Company's operational and financial performance, particularly access to components and parts[31](index=31&type=chunk) - Revenue is primarily recognized from sales of drones, sensors, and accessories upon transfer of control, and from software subscriptions (HempOverview and Ground Control) recognized equally over the membership period[37](index=37&type=chunk)[39](index=39&type=chunk) - A goodwill impairment charge of **$1,500,000** was recognized for the SaaS reporting unit in the third quarter of 2023, due to its carrying value exceeding its estimated fair value[47](index=47&type=chunk) Goodwill Allocation (Post-Impairment) as of Sep 30, 2023 | Reporting Unit | Goodwill Balance | | :------------- | :--------------- | | Sensors | $19,000,000 | | SaaS | $2,700,000 | - The Company operates in four segments: Drones, Sensors, SaaS, and Corporate[61](index=61&type=chunk) [Note 3 – Balance Sheets](index=21&type=section&id=Note%203%20%E2%80%93%20Balance%20Sheets) This note provides detailed breakdowns of specific balance sheet accounts Accounts Receivable, Net | Metric | Sep 30, 2023 | Dec 31, 2022 | | :-------------------------- | :----------- | :----------- | | Accounts receivable | $2,110,725 | $2,229,840 | | Less: Provision for doubtful accounts | $(95,680) | $(16,800) | | Accounts receivable, net | $2,015,045 | $2,213,040 | Inventories, Net | Metric | Sep 30, 2023 | Dec 31, 2022 | | :---------------------------------- | :----------- | :----------- | | Gross inventories | $6,462,071 | $7,008,662 | | Less: Provision for excess and obsolescence reserve | $(398,136) | $(322,815) | | Inventories, net | $6,063,935 | $6,685,847 | Intangible Assets, Net (excluding goodwill) | Metric | Sep 30, 2023 | Dec 31, 2022 | | :-------------------------- | :----------- | :----------- | | Intangible assets, net | $9,242,659 | $11,507,653 | Accrued Liabilities | Metric | Sep 30, 2023 | Dec 31, 2022 | | :-------------------------- | :----------- | :----------- | | Total accrued liabilities | $1,650,609 | $1,680,706 | | Accrued interest | $236,172 | $0 | | Accrued dividends | $342,873 | $172,596 | [Note 4 – Notes Receivable](index=24&type=section&id=Note%204%20%E2%80%93%20Notes%20Receivable) This note discusses the company's outstanding notes receivable, including a convertible promissory note with Valqari - The Company has an outstanding convertible promissory note with Valqari, originally for **$500,000**, which matured in April 2021, with a partial payment of **$315,000** made in November 2021[69](index=69&type=chunk)[72](index=72&type=chunk) - Valqari alleges breaches by AgEagle, which AgEagle disputes, and the parties are negotiating a resolution, with AgEagle reserving the right to take legal action[72](index=72&type=chunk) [Note 5 – COVID Loans](index=25&type=section&id=Note%205%20%E2%80%93%20COVID%20Loans) This note details the COVID loans assumed from senseFly S.A. and their repayment schedule - AgEagle assumed two COVID Loans from senseFly S.A., with outstanding obligations of **$815,906** as of September 30, 2023[73](index=73&type=chunk) - One COVID loan's repayment period was extended from December 2023 to June 2025[73](index=73&type=chunk) Scheduled Principal Payments for COVID Loans | Year ending December 31, | Amount | | :----------------------- | :------- | | 2023 (rest of year) | $58,487 | | 2024 | $306,722 | | 2025 | $180,064 | | 2026 | $90,213 | | 2027 | $180,420 | | Total | $815,906 | [Note 6 – Promissory Note and Warrant](index=25&type=section&id=Note%206%20%E2%80%93%20Promissory%20Note%20and%20Warrant) This note describes the promissory note and common stock purchase warrant issued, including subsequent amendments and exchanges - In December 2022, the Company issued an 8% original issue discount promissory note for **$3,500,000** and a common stock purchase warrant for up to **5,000,000** shares[75](index=75&type=chunk) - An August 2023 amendment increased the note's principal by **$595,000** to **$4,095,000** due to missed monthly amortization payments, resulting in a **$1,523,867** loss on debt extinguishment[78](index=78&type=chunk)[79](index=79&type=chunk) - A September 2023 Warrant Exchange Agreement led to the issuance of **5,000,000** shares of common stock in exchange for the original warrant, with an incremental value modification of **$190,500**[80](index=80&type=chunk) Scheduled Principal Payments for Second Amended Note (as of Sep 30, 2023) | Year ending December 31, | Amount | | :----------------------- | :----------- | | 2023 (rest of year) | $525,000 | | 2024 | $3,570,000 | | Total | $4,095,000 | [Note 7 – Stockholders' Equity](index=27&type=section&id=Note%207%20%E2%80%93%20Stockholders%27%20Equity) This note provides details on changes in common stock, preferred stock, warrants, and stock-based compensation - In June 2023, the Company issued **16,720,000** shares of Common Stock and warrants to purchase **25,080,000** shares, raising **$3,817,400** net of issuance costs[85](index=85&type=chunk) - The Series F Convertible Preferred Stock and associated warrants experienced multiple 'down round' anti-dilution triggers in December 2022, March 2023, and June 2023, reducing their conversion/exercise prices[96](index=96&type=chunk)[99](index=99&type=chunk)[101](index=101&type=chunk) - Total deemed dividends on Series F Preferred Stock and warrants for the nine months ended September 30, 2023, amounted to **$4,910,894** due to these down round triggers[103](index=103&type=chunk) Stock-based Compensation Expense (Nine Months Ended Sep 30) | Metric | 2023 | 2022 | | :-------------------------- | :----------- | :----------- | | Stock-based compensation expense | $1,125,209 | $3,058,741 | Restricted Stock Unit (RSU) Activity (Nine Months Ended Sep 30, 2023) | Metric | Shares | | :-------------------------------- | :------- | | Outstanding as of Dec 31, 2022 | 1,028,960 | | Granted | 2,000,645 | | Vested and released | (387,456) | | Unvested as of Sep 30, 2023 | 419,722 | Stock Option Activity (Nine Months Ended Sep 30, 2023) | Metric | Shares | | :-------------------------------- | :------- | | Outstanding as of Dec 31, 2022 | 2,561,231 | | Granted | 325,000 | | Expired/Forfeited | (108,499) | | Outstanding as of Sep 30, 2023 | 2,777,732 | [Note 8 – Leases](index=34&type=section&id=Note%208%20%E2%80%93%20Leases) This note outlines the company's lease obligations and related expenses - A lease impairment charge of **$79,287** was recognized in Q3 2023 due to a sublease agreement for the Seattle facility, where anticipated sublease income is less than the primary lease obligations[130](index=130&type=chunk) Operating Lease Expense (Nine Months Ended Sep 30) | Metric | 2023 | 2022 | | :-------------------------- | :----------- | :----------- | | Operating lease expense payments | $791,558 | $1,254,893 | Operating Lease Liabilities (as of Sep 30, 2023) | Metric | Amount | | :------------------------------------------ | :----------- | | Right of use assets | $3,498,051 | | Total future minimum lease payments, undiscounted | $4,112,273 | [Note 9 – Warrants](index=36&type=section&id=Note%209%20%E2%80%93%20Warrants) This note provides information on outstanding warrants, their exercise prices, and contractual terms Warrant Activity (as of Sep 30, 2023) | Metric | Value | | :-------------------------------- | :----------- | | Warrants Outstanding | 48,351,747 shares | | Weighted Average Exercise Price | $0.32 | | Weighted Average Remaining Contractual Term | 3.81 years | - Multiple 'down round' trigger events in December 2022, March 2023, and June 2023 reduced the exercise prices of previously issued warrants[137](index=137&type=chunk) [Note 10 – Commitments and Contingencies](index=37&type=section&id=Note%2010%20%E2%80%93%20Commitments%20and%20Contingencies) This note details the company's purchase commitments and legal contingencies, including an SEC cease and desist order - As of September 30, 2023, the Company had purchase commitments of **$2,126,081** expected to be realized during the remainder of 2023[141](index=141&type=chunk) - The SEC issued a cease and desist order against AgEagle and its former CFO for failing to timely report Section 16(a) information[142](index=142&type=chunk) - AgEagle agreed to pay **$190,000** in civil penalties, and its former CFO personally paid **$125,000**[143](index=143&type=chunk) [Note 11 – Segment Information](index=37&type=section&id=Note%2011%20%E2%80%93%20Segment%20Information) This note presents financial data broken down by the company's operating segments and geographic areas Goodwill and Assets by Segment (as of Sep 30, 2023) | Segment | Goodwill | Assets | | :-------- | :--------- | :--------- | | Sensors | $18,972,896 | $25,495,556 | | SaaS | $2,706,515 | $5,510,659 | | Corporate | $0 | $2,660,979 | | Drones | $0 | $12,383,293 | Revenues by Segment (Three Months Ended Sep 30) | Segment | 2023 Revenue | 2022 Revenue | YoY Change | | :------ | :----------- | :----------- | :--------- | | Drones | $1,627,177 | $2,081,410 | -21.9% | | Sensors | $1,755,712 | $3,256,797 | -46.1% | | SaaS | $101,043 | $152,507 | -33.8% | | Total | $3,483,932 | $5,490,714 | -36.5% | Revenues by Segment (Nine Months Ended Sep 30) | Segment | 2023 Revenue | 2022 Revenue | YoY Change | | :------ | :----------- | :----------- | :--------- | | Drones | $4,861,260 | $7,856,573 | -38.1% | | Sensors | $5,610,764 | $6,283,907 | -10.7% | | SaaS | $347,189 | $480,085 | -27.7% | | Total | $10,819,213 | $14,620,565 | -26.0% | Revenues by Geographic Area (Three Months Ended Sep 30, 2023) | Region | Revenue | | :-------------------------- | :---------- | | Europe, Middle East and Africa | $1,382,012 | | North America | $1,174,629 | | Latin America | $502,301 | | Asia Pacific | $415,406 | [Note 12 – Subsequent Events](index=39&type=section&id=Note%2012%20%E2%80%93%20Subsequent%20Events) This note reports significant events that occurred after the balance sheet date - A Second Note Amendment Agreement was executed on October 5, 2023, further deferring amortization payments on the promissory note and linking prepayment to equity financing[148](index=148&type=chunk) - A Special Meeting of Stockholders is scheduled for November 14, 2023, to vote on a reverse stock split (1-for-10 to 1-for-20) to maintain NYSE American listing, and to increase shares authorized under the 2017 Omnibus Equity Incentive Plan from **10 million** to **15 million**[149](index=149&type=chunk)[151](index=151&type=chunk) - Ms. Nicole Fernandez-McGovern resigned as Chief Financial Officer effective October 13, 2023, and Mr. Mark DiSiena was appointed Interim Chief Financial Officer[153](index=153&type=chunk)[154](index=154&type=chunk) [ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS](index=41&type=section&id=ITEM%202.%20MANAGEMENT%27S%20DISCUSSION%20AND%20ANALYSIS%20OF%20FINANCIAL%20CONDITION%20AND%20RESULTS%20OF%20OPERATIONS) Management discusses AgEagle's financial performance, strategic direction, and operational highlights, addressing market challenges - AgEagle's core business involves designing and delivering best-in-class drones, sensors, and software solutions[160](index=160&type=chunk) - Key growth strategies include leveraging proprietary full-stack drone solutions, capturing larger market share in agriculture, energy/utilities, infrastructure, and government/military verticals, and growth through strategic acquisitions[163](index=163&type=chunk)[164](index=164&type=chunk)[166](index=166&type=chunk) - Competitive strengths include proprietary technologies, in-house manufacturing, ISO:9001 international certification, customer-centric innovation, and a global reseller network of over 200 partners in 75+ countries[166](index=166&type=chunk)[172](index=172&type=chunk) - Recent product innovations include the eBee™ VISION for intelligence/surveillance/reconnaissance, the RedEdge-P™ dual sensor for vegetation analysis, and Field Check for Measure Ground Control mobile app for on-site imagery validation[167](index=167&type=chunk)[168](index=168&type=chunk)[169](index=169&type=chunk) - The company was awarded a five-year GSA Multiple Award Schedule (MAS) Contract in April 2023 and achieved C2 and C6 class identification labels for its eBee X series drones under EASA/EU regulations, enhancing operational capabilities[170](index=170&type=chunk)[171](index=171&type=chunk)[172](index=172&type=chunk) - Global economic challenges, inflation, and supply-chain disruptions continue to negatively impact the company's ability to access components and manufacture products, with these effects expected to persist[173](index=173&type=chunk)[199](index=199&type=chunk) [Three and Nine Months Ended September 30, 2023 as Compared to Three and Nine Months Ended September 30, 2022](index=45&type=section&id=Three%20and%20Nine%20Months%20Ended%20September%2030%2C%202023%20as%20Compared%20to%20Three%20and%20Nine%20Months%20Ended%20September%2030%2C%202022) This section compares the company's financial results for the three and nine months ended September 30, 2023, against the same periods in 2022 Revenue Performance (Q3 and 9M Ended Sep 30) | Metric | Q3 2023 | Q3 2022 | Q3 YoY Change | 9M 2023 | 9M 2022 | 9M YoY Change | | :-------------------------- | :----------- | :----------- | :------------ | :------------ | :------------ | :------------ | | Total Revenues | $3,483,932 | $5,490,714 | -36.5% | $10,819,213 | $14,620,565 | -26.0% | | Decline from Sensors | $1,501,085 | - | - | $673,143 | - | - | | Decline from Drones | $454,233 | - | - | $2,995,313 | - | - | | Decline from SaaS | $51,464 | - | - | $132,896 | - | - | Gross Profit Performance (Q3 and 9M Ended Sep 30) | Metric | Q3 2023 | Q3 2022 | Q3 YoY Change | 9M 2023 | 9M 2022 | 9M YoY Change | | :-------------------------- | :----------- | :----------- | :------------ | :------------ | :------------ | :------------ | | Gross Profit | $1,214,074 | $2,083,141 | -41.7% | $4,224,240 | $5,998,129 | -29.6% | | Gross Margin | 34.8% | 37.9% | -3.1 pp | 39.0% | 41.0% | -2.0 pp | - Gross profit decline was attributed to reduced sensor and drone revenues, significant price reductions for eBee products to compete with Chinese manufacturers, and increased raw component and labor costs for sensors[176](index=176&type=chunk)[177](index=177&type=chunk) Operating Expenses (Q3 and 9M Ended Sep 30) | Metric | Q3 2023 | Q3 2022 | Q3 YoY Change | 9M 2023 | 9M 2022 | 9M YoY Change | | :-------------------------- | :----------- | :----------- | :------------ | :------------ | :------------ | :------------ | | Total Operating Expenses | $7,204,187 | $7,230,471 | -0.4% | $19,247,300 | $24,015,980 | -19.9% | | General and administrative | $3,357,550 | $4,175,090 | -19.6% | $10,435,834 | $14,093,655 | -26.0% | | Research and development | $1,368,394 | $1,818,540 | -24.8% | $4,320,216 | $6,185,777 | -30.2% | | Sales and marketing | $978,243 | $1,236,841 | -20.9% | $2,911,963 | $3,736,548 | -22.1% | | Impairment | $1,500,000 | $0 | - | $1,579,287 | $0 | - | - Operating expenses decreased primarily due to integration efficiencies from 2021 acquisitions, leading to reductions in professional fees, payroll, and consulting costs[181](index=181&type=chunk)[183](index=183&type=chunk)[185](index=185&type=chunk) - Other income (expense), net, shifted from a **$6.81 million** income in Q3 2022 to a **$2.03 million** expense in Q3 2023, largely due to a **$1.52 million** debt extinguishment loss and foreign currency transaction losses in 2023, compared to a non-cash gain on debt extinguishment in 2022[188](index=188&type=chunk)[189](index=189&type=chunk) Net Income (Loss) (Q3 and 9M Ended Sep 30) | Metric | Q3 2023 | Q3 2022 | Q3 YoY Change | 9M 2023 | 9M 2022 | 9M YoY Change | | :-------------------------- | :----------- | :----------- | :------------ | :------------ | :------------ | :------------ | | Net Income (Loss) | $(8,020,128) | $1,664,952 | +581.7% (loss increase) | $(17,910,210) | $(11,533,356) | +55.3% (loss increase) | [Cash Flows](index=47&type=section&id=Cash%20Flows) This section analyzes the changes in cash flows from operating, investing, and financing activities Cash Flow Summary (Nine Months Ended Sep 30) | Metric | 2023 | 2022 | YoY Change | | :---------------------------------- | :----------- | :----------- | :----------- | | Net cash used in operating activities | $(8,829,669) | $(15,168,736) | -41.8% | | Net cash used in investing activities | $(564,116) | $(8,062,741) | -93.0% | | Net cash provided by financing activities | $6,730,348 | $14,404,378 | -53.2% | - The decrease in cash used in investing activities was mainly due to lower acquisition-related liabilities and reduced capitalized platform and internal use software costs[194](index=194&type=chunk) - The decrease in cash provided by financing activities was due to less sales of common stock through an at-the-market offering and warrant exercises in the prior year, partially offset by Series F Preferred stock issuance[195](index=195&type=chunk) [Liquidity and Capital Resources](index=48&type=section&id=Liquidity%20and%20Capital%20Resources) This section assesses the company's ability to meet its short-term and long-term financial obligations Liquidity Metrics (as of Sep 30, 2023) | Metric | Amount | | :-------------------------- | :----------- | | Working Capital | $2,818,220 | | Loss from Operations (9M 2023) | $15,023,060 | - The company faces substantial doubt about its ability to continue as a going concern and is evaluating strategies to obtain additional funding and restructure operations to grow revenues and reduce expenses[196](index=196&type=chunk) - During the nine months ended September 30, 2023, the company raised **$6,817,400** in equity from the additional sale of Series F Preferred Stock and Common Stock[197](index=197&type=chunk) [Off-Balance Sheet Arrangements](index=48&type=section&id=Off-Balance%20Sheet%20Arrangements) This section discloses any material off-balance sheet arrangements - As of September 30, 2023, the company had no material off-balance sheet arrangements other than standard operating leases[198](index=198&type=chunk) [Inflation](index=48&type=section&id=Inflation) This section discusses the impact of inflation on the company's business - Inflation negatively impacted the UAV industry and the company's business during the nine months ended September 30, 2023, affecting access to components, parts, and labor, and causing supply chain disruptions, with these negative impacts expected to continue[199](index=199&type=chunk) [Climate Change](index=48&type=section&id=Climate%20Change) This section states management's assessment of climate change's impact on operations - Management believes climate change and related governmental regulations have not had, nor are expected to have, any material effect on the company's operations[200](index=200&type=chunk) [New Accounting Pronouncements](index=48&type=section&id=New%20Accounting%20Pronouncements) This section addresses the expected impact of recently issued accounting pronouncements - Recently issued FASB accounting pronouncements are not expected to have a material impact on the company's consolidated financial position, results of operations, or cash flows[201](index=201&type=chunk) [ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK](index=48&type=section&id=ITEM%203.%20QUANTITATIVE%20AND%20QUALITATIVE%20DISCLOSURES%20ABOUT%20MARKET%20RISK) As a smaller reporting company, AgEagle is exempt from providing detailed quantitative and qualitative disclosures about market risk - The company is not required to provide quantitative and qualitative disclosures about market risk as it is a 'smaller reporting company'[202](index=202&type=chunk) [ITEM 4. CONTROLS AND PROCEDURES](index=48&type=section&id=ITEM%204.%20CONTROLS%20AND%20PROCEDURES) The company's Chief Executive Officer and Interim Chief Financial Officer concluded that AgEagle's disclosure controls and procedures were effective as of September 30, 2023, with no material changes in internal control over financial reporting - The CEO and Interim CFO evaluated and concluded that the company's disclosure controls and procedures were effective as of September 30, 2023[203](index=203&type=chunk) - There were no material changes in internal control over financial reporting during the nine months ended September 30, 2023[204](index=204&type=chunk) [PART II – OTHER INFORMATION](index=50&type=section&id=PART%20II%20OTHER%20INFORMATION) [ITEM 1. LEGAL PROCEEDINGS](index=50&type=section&id=ITEM%201.%20LEGAL%20PROCEEDINGS) This item refers to Note 10 – Commitments and Contingencies for a discussion of current legal proceedings - Current legal proceedings are discussed in Note 10 – Commitments and Contingencies[207](index=207&type=chunk) [ITEM 1A. RISK FACTORS](index=50&type=section&id=ITEM%201A.%20RISK%20FACTORS) As a smaller reporting company, AgEagle is not required to provide risk factor information under this item - The company is not required to provide risk factor information as it is a 'smaller reporting company'[208](index=208&type=chunk) [ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES, USE OF PROCEEDS AND ISSUER PURCHASES OF EQUITY SECURITIES](index=50&type=section&id=ITEM%202.%20UNREGISTERED%20SALES%20OF%20EQUITY%20SECURITIES%2C%20USE%20OF%20PROCEEDS%20AND%20ISSUER%20PURCHASES%20OF%20EQUITY%20SECURITIES) The company reported no unregistered sales of equity securities, use of proceeds, or issuer purchases of equity securities for the period - No unregistered sales of equity securities, use of proceeds, or issuer purchases of equity securities were reported[209](index=209&type=chunk) [ITEM 3. DEFAULT UPON SENIOR SECURITIES](index=50&type=section&id=ITEM%203.%20DEFAULT%20UPON%20SENIOR%20SECURITIES) The company reported no defaults upon senior securities for the period - No defaults upon senior securities were reported[210](index=210&type=chunk) [ITEM 4. MINE SAFETY DISCLOSURES](index=50&type=section&id=ITEM%204.%20MINE%20SAFETY%20DISCLOSURES) This item is not applicable to the company - Mine safety disclosures are not applicable to the company[211](index=211&type=chunk) [ITEM 5. OTHER INFORMATION](index=50&type=section&id=ITEM%205.%20OTHER%20INFORMATION) The company reported no other information for the period - No other information was reported[212](index=212&type=chunk) [ITEM 6. EXHIBITS](index=50&type=section&id=ITEM%206.%20EXHIBITS) This item lists the exhibits filed with the Form 10-Q, including various certifications and XBRL documents - Exhibits include Rule 13(a)-14(a)/15(d)-14(a) Certifications, Section 1350 Certifications, and Inline XBRL documents[213](index=213&type=chunk) [SIGNATURES](index=51&type=section&id=SIGNATURES) [Report Signatories](index=51&type=section&id=Report%20Signatories) The report was signed by Barrett Mooney, Chief Executive Officer, and Mark DiSiena, Interim Chief Financial Officer, on November 13, 2023 - The report was signed by Barrett Mooney, Chief Executive Officer, and Mark DiSiena, Interim Chief Financial Officer[216](index=216&type=chunk)[217](index=217&type=chunk) - The signing date for the report was November 13, 2023[216](index=216&type=chunk)[217](index=217&type=chunk)

AgEagle Aerial Systems, Inc. (NYSE:UAVS) Q2 2023 Earnings Conference Call August 15, 2023 4:30 PM ET Company Participants Barrett Mooney - CEO Nicole Fernandez-McGovern - EVP, Operations & CFO Conference Call Participants Operator Good afternoon, everyone, and welcome to AgEagle Aerial Systems 2023 Second Quarter Results Webcast. Presenting on today's webcast are AgEagle's Chairman and CEO, Barrett Mooney; and Nicole Fernandez-McGovern, the company's Chief Financial Officer and Executive Vice President of O ...

Company Growth and Acquisitions - AgEagle achieved significant growth by acquiring three market-leading companies in 2021, enhancing its capabilities in UAS airframes, sensors, and software for commercial and government use[162] - The company has successfully integrated its acquisitions, forming a unified global entity focused on advancing autonomous flight performance[162] - AgEagle's global reseller network includes over 200 providers in 75+ countries, enhancing brand reach and revenue growth opportunities[174] Product Development and Technological Advancements - The launch of the RedEdge-P™ dual sensor in May 2023 represents a technological advancement, doubling analytical capabilities with a single camera workflow[170] - AgEagle's eBee™ VISION drones were delivered to three branches of European military forces in 2023, showcasing the company's commitment to enhancing situational awareness for critical missions[169] - AgEagle's eBee TAC UAS is positioned as a mission-critical tool for the U.S. military, expected to drive significant growth in 2023[174] - The company has achieved regulatory approvals for its drones to operate Beyond Visual Line of Sight (BVLOS) and Operations Over People (OOP) in multiple regions, including the U.S. and EU[163] - AgEagle's commitment to research and development is aimed at delivering innovative autonomous robotics systems, addressing market needs beyond current target markets[168] Financial Performance - For the three months ended June 30, 2023, revenues decreased to $3,278,212, down 38.0% from $5,287,873 in the same period of 2022, primarily due to declines in eBee drone products and SaaS subscription services[175] - For the six months ended June 30, 2023, revenues were $7,335,281, a decrease of 19.7% compared to $9,129,851 for the same period in 2022, with significant declines in eBee drone products offset by an increase in sensor sales[176] - Gross profit for the three months ended June 30, 2023, was $1,031,534, representing a gross margin of 31%, down from 48% in the same period of 2022, due to revenue declines and price reductions[177] - Operating expenses for the three months ended June 30, 2023, were $5,903,372, a decrease of 25.6% from $7,938,675 in the same period of 2022, driven by integration of business acquisitions[179] - The net loss for the three months ended June 30, 2023, was $5,290,583, a slight improvement of 5.6% compared to a net loss of $5,601,736 in the same period of 2022[190] - Cash used in operations for the six months ended June 30, 2023, was $6,783,320, a decrease of 41.3% from $11,628,089 in the same period of 2022, primarily due to lower sales and operating expenses[193] - Cash provided by financing activities for the six months ended June 30, 2023, was $6,776,473, a decrease of 53.2% compared to $14,564,841 in the same period of 2022, due to reduced sales of common stock[195] - As of June 30, 2023, the company had working capital of $7,537,254 and incurred a loss from operations of $9,032,946, a decrease of 29.8% from the previous year[196] - The company raised $6,817,400 in equity during the six months ended June 30, 2023, from the sale of Series F Preferred Stock and common stock offerings[197] Operational Challenges - The company continues to face challenges from inflation impacting supply chain and manufacturing processes, which may further disrupt operations[200]

AgEagle Aerial Systems, Inc. (NYSE:UAVS) Q1 2023 Earnings Conference Call May 16, 2023 4:30 PM ET Company Participants Barrett Mooney - Chief Executive Officer Conference Call Participants Operator Good day everyone, and thank you for logging into AgEagle's Corporate Update Webcast. Joining us from AgEagle is Chief Executive Officer and Chairman of the Board, Barrett Mooney. Before I turn it over to Barrett, I would like to remind you that during today's call, including the question-and-answer session, stat ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 OR (Mark One) (State or other jurisdiction of incorporation or organization) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2023 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _______ to ________ Form 10-Q Commission file number: 001-36492 AGEAGLE AERIAL SYSTEMS INC. (Exact name o ...

Financial Data and Key Metrics Changes - Total revenues for 2022 reached a record $19.1 million, up 96% from $9.8 million in the previous year [19] - Total sensor sales increased by 27% to $8.7 million compared to $6.8 million in the prior year [12] - Revenues from software subscriptions rose by 11% to nearly $600,000, compared to approximately $538,000 in the prior year [13] - The net loss for 2022 was $58.3 million, compared to $30.1 million for 2021, impacted by higher operating costs due to acquisitions [48] Business Line Data and Key Metrics Changes - Revenue from eBee fixed-wing drones was $9.8 million in 2022, significantly up from $2.4 million in 2021 [20] - The sensor segment was the strongest performer in 2022, with significant demand growth noted in the third and fourth quarters [30] - The company is actively expanding its government sales team to pursue military and government opportunities, particularly with the eBee VISION drone [5][6] Market Data and Key Metrics Changes - The company is focusing on the global defense markets, leveraging existing products to serve military customers [6] - There is a growing interest in the eBee VISION drone among military forces in the US and globally, indicating potential for future sales growth [28] Company Strategy and Development Direction - The company aims to unify its operations and provide a full stack solution of drones, sensors, and software, which is expected to enhance cost structure and profitability [22] - The strategy includes expanding the reseller network to increase geographical coverage and sales consistency [52] - The company is evaluating M&A opportunities to enhance its offerings while maintaining strict financial discipline [65][66] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving stronger financial growth in 2023, emphasizing a well-defined growth plan [51][38] - The company acknowledges macroeconomic challenges but believes that autonomous solutions will drive efficiency and reduce labor costs for organizations [37] - Management is optimistic about the potential for improved profitability and cash flow in the coming quarters [71][78] Other Important Information - The company raised $3 million through a private placement of Series F convertible preferred shares [21] - The company has successfully relocated operations to reduce costs and support profitability efforts [35] Q&A Session Summary Question: Is a reverse stock split being considered? - Management indicated that a reverse stock split is not currently being pursued, but it may be considered in the future if it aligns with strategic goals [40][69] Question: What are the intentions regarding the drone delivery market? - The company is focusing on regulatory and safety advancements to enable drone delivery but is currently seeking appropriate partners for this market [76][77] Question: What are the capital allocation priorities for 2023? - Management highlighted the focus on M&A opportunities and emphasized the importance of maintaining a disciplined approach to capital allocation [79]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 10-K (Mark One) ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2022 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _______ to ________ Commission file number: 001-36492 AGEAGLE AERIAL SYSTEMS INC. (Exact name of registrant as specified in its charter) Nevada 88-0422242 (State o ...

Financial Data and Key Metrics Changes - Total revenues for Q3 2022 were $5.5 million, a 172% increase from $2 million in the prior year period, primarily driven by eBee drone sales from the senseFly acquisition [5] - Loss from operations increased to $5.1 million from $3.8 million year-over-year, attributed to higher general and administrative costs and new product development expenses [6] - Net income rose to $1.7 million compared to a net loss of $3.8 million in Q3 2021, with total comprehensive net income attributable to common shareholders at $1.3 million or $0.01 per share [6] - For the first nine months of 2022, total revenues climbed to $14.6 million, up 158% from the prior year, with software subscription revenues increasing by 33% to $480,000 [7][8] Business Line Data and Key Metrics Changes - The eBee line of drones contributed $2.1 million in revenue this quarter, with strong demand following its addition to the Department of Defense's Blue UAS Cleared List [5][11] - Sensor sales increased by 71% to $3.3 million, driven by the Altum-PT and RedEdge-P sensors [5] - Software subscription sales increased by 36% to $163,000, largely due to a rise in subscriptions for Measure Ground Control [5] Market Data and Key Metrics Changes - The company reported strong demand across various industries, including construction, energy, and utilities, as evidenced by participation in trade shows [10] - The eBee drones received FAA approval for operations over people and moving vehicles, enhancing their marketability and potential use cases [12] Company Strategy and Development Direction - The company aims to capitalize on regulatory approvals to drive additional commercial orders and expand its market presence [12][13] - A focus on reducing operating costs through consolidation of US operations and a centralized location in North Carolina is planned to improve efficiency and corporate culture [15][16] - The company is committed to long-term profitability and is evaluating programs to improve operating margins [16] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the growth trajectory of the fixed wing segment and the potential of the eBee line, with ongoing R&D efforts for next-generation UAVs [10][19] - The company is closely monitoring the M&A landscape and is interested in potential partnerships to enhance value offerings [21][22] - Management emphasized the importance of collaboration in a fragmented drone industry to drive growth and expand market reach [22] Other Important Information - The company achieved a gain on extinguishment of debt of $6.5 million related to its 2021 acquisitions, contributing to the increase in net income [6] - Cash position as of September 30, 2022, was $5.3 million, down from $14.6 million at the end of 2021, while stockholders' equity increased by 15.3% to $88.3 million [8] Q&A Session Summary Question: What is the future outlook for the eBee line following recent FAA approvals? - Management sees significant growth potential in the fixed wing drone market and is working on next-generation UAVs [19] Question: Will the sales model shift to a B2B focus with direct sales? - Management values the current value-added reseller model and sees it as beneficial for customer experience, while also exploring direct sales opportunities for large enterprises [20] Question: What is the M&A strategy in the near to mid-term? - The company is currently focused on unifying past acquisitions and evaluating the market for future M&A opportunities [21] Question: Are there partnerships in the pipeline with other drone manufacturers? - Management believes partnerships are key to success and is actively reviewing potential collaborations to enhance customer experience [22] Question: Will the company move away from its agricultural roots? - While the company has expanded into other industries, it remains committed to serving the agriculture sector and providing value to its customers [23]

[PART I FINANCIAL INFORMATION](index=4&type=section&id=PART%20I%20FINANCIAL%20INFORMATION) [Financial Statements](index=4&type=section&id=ITEM%201.%20FINANCIAL%20STATEMENTS%3A) AgEagle Aerial Systems Inc. presents unaudited condensed consolidated financial statements for Q3 2022, highlighting acquisition-driven revenue growth, a Q3 net income from debt extinguishment, and ongoing liquidity challenges [Condensed Consolidated Balance Sheets](index=4&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of September 30, 2022, total assets decreased to **$95.3 million** from **$104.7 million**, total liabilities decreased to **$7.1 million** from **$28.1 million**, and stockholders' equity increased to **$88.3 million** from **$76.6 million** Condensed Consolidated Balance Sheet Highlights (in thousands) | Balance Sheet Item | Sep 30, 2022 (unaudited) | Dec 31, 2021 | | :--- | :--- | :--- | | **Assets** | | | | Cash | $5,302 | $14,591 | | Total current assets | $15,993 | $22,996 | | Goodwill | $64,867 | $64,867 | | Total assets | $95,344 | $104,683 | | **Liabilities & Equity** | | | | Total current liabilities | $5,772 | $17,149 | | Total liabilities | $7,066 | $28,106 | | Total stockholders' equity | $88,278 | $76,577 | | Total liabilities and stockholders' equity | $95,344 | $104,683 | [Condensed Consolidated Statements of Operations](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations%20and%20Comprehensive%20Income%20%28Loss%29) Q3 2022 saw a net income of **$1.7 million** (vs. **$3.8 million** net loss in Q3 2021) driven by a **$6.5 million** debt extinguishment gain, with revenues growing **172%** to **$5.5 million** Statement of Operations Highlights (in thousands) | Metric | Q3 2022 | Q3 2021 | YoY Change | Nine Months 2022 | Nine Months 2021 | YoY Change | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Revenues | $5,491 | $2,022 | +172% | $14,621 | $5,661 | +158% | | Gross Profit | $2,083 | $795 | +162% | $5,998 | $2,776 | +116% | | Loss from Operations | ($5,147) | ($3,800) | +35% | ($18,018) | ($11,581) | +56% | | Net Income (Loss) | $1,665 | ($3,771) | N/A | ($11,533) | ($11,380) | +1% | | EPS (Basic) | $0.02 | ($0.05) | N/A | ($0.14) | ($0.17) | N/A | [Condensed Consolidated Statements of Changes in Stockholders' Equity](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Changes%20in%20Stockholders%27%20Equity) Stockholders' equity increased to **$88.3 million** by September 30, 2022, from **$76.6 million** at year-end 2021, driven by **$9.9 million** from Series F Preferred Stock and **$4.6 million** from common stock sales, partially offset by a **$11.5 million** net loss - Key changes in stockholders' equity for the nine months ended September 30, 2022, include **$9.9 million** from Series F Preferred Stock issuance, **$4.6 million** from Common Stock sales, and **$2.8 million** from Measure acquisition contingent liability settlement, offset by a **$11.5 million** net loss[15](index=15&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=11&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) For the nine months ended September 30, 2022, cash decreased by **$9.3 million**, with **$15.3 million** used in operations and **$8.1 million** in investing, partially offset by **$14.6 million** provided by financing activities Cash Flow Summary (Nine Months Ended Sep 30, in thousands) | Cash Flow Activity | 2022 | 2021 | | :--- | :--- | :--- | | Net cash used in operating activities | ($15,342) | ($6,678) | | Net cash used in investing activities | ($8,063) | ($30,642) | | Net cash provided by financing activities | $14,578 | $45,601 | | **Net (decrease) increase in cash** | **($9,288)** | **$8,281** | [Notes to Condensed Consolidated Financial Statements](index=13&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements%20%28unaudited%29) The notes provide critical context to the financial statements, detailing business, accounting policies, and financial items, including a going concern warning, acquisition liability settlements, segment data, and equity financing - The company designs and delivers autonomous unmanned aerial systems, sensors, and software for industries including energy, infrastructure, agriculture, and government[22](index=22&type=chunk) - Due to sustained operating losses and the need for additional liquidity, management has concluded there is substantial doubt about the Company's ability to continue as a going concern[24](index=24&type=chunk) - In Q3 2022, the company settled outstanding holdback liabilities from MicaSense, senseFly, and Measure acquisitions, resulting in a **$6.5 million** debt extinguishment gain[86](index=86&type=chunk)[87](index=87&type=chunk)[90](index=90&type=chunk) - In June 2022, the company issued 10,000 shares of Series F Convertible Preferred Stock for gross proceeds of **$10 million**[97](index=97&type=chunk) [Management's Discussion and Analysis (MD&A)](index=40&type=section&id=ITEM%202.%20MANAGEMENT%27S%20DISCUSSION%20AND%20ANALYSIS%20OF%20FINANCIAL%20CONDITION%20AND%20RESULTS%20OF%20OPERATIONS) Management discusses Q3 2022 financial performance, attributing 172% revenue growth to acquisitions and sensor demand, while addressing increased operating expenses, growth strategies, and significant liquidity challenges with a going concern warning - The company's growth strategy focuses on leveraging its three centers of excellence (software, sensors, airframes), delivering new solutions, and pursuing complementary acquisitions[148](index=148&type=chunk) - Q3 2022 revenue increased **172%** to **$5.5 million**, driven by sales of eBee drone products from the senseFly acquisition and a **71%** increase in sensor sales[152](index=152&type=chunk) - Q3 2022 net income of **$1.7 million** was primarily due to a non-cash gain on debt extinguishment of **$6.5 million** related to acquisition holdback settlements[166](index=166&type=chunk)[168](index=168&type=chunk) - The company acknowledges substantial doubt about its ability to continue as a going concern due to its net losses and working capital needs, and is evaluating strategies to raise additional capital[178](index=178&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=46&type=section&id=ITEM%203.%20QUANTITATIVE%20AND%20QUALITATIVE%20DISCLOSURES%20ABOUT%20MARKET%20RISK) As a smaller reporting company, AgEagle is exempt from providing quantitative and qualitative disclosures about market risk - The company is a "smaller reporting company" and is not required to provide information regarding market risk[183](index=183&type=chunk) [Controls and Procedures](index=46&type=section&id=ITEM%204.%20CONTROLS%20AND%20PROCEDURES) Management concluded that disclosure controls and procedures were effective as of September 30, 2022, with no material changes in internal control over financial reporting during the quarter - The CEO and CFO concluded that the company's disclosure controls and procedures were effective as of September 30, 2022[184](index=184&type=chunk) - No changes in internal control over financial reporting occurred during the third quarter of 2022 that have materially affected, or are reasonably likely to materially affect, internal controls[186](index=186&type=chunk) [PART II - OTHER INFORMATION](index=47&type=section&id=PART%20II) [Legal Proceedings](index=47&type=section&id=ITEM%201.%20LEGAL%20PROCEEDINGS) The company reported no legal proceedings during the period - There are no legal proceedings to report[187](index=187&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=47&type=section&id=ITEM%202.%20UNREGISTERED%20SALES%20OF%20EQUITY%20SECURITIES%20AND%20USE%20OF%20PROCEEDS) The company reported no unregistered sales of equity securities during the period - There were no unregistered sales of equity securities to report[189](index=189&type=chunk) [Defaults Upon Senior Securities](index=47&type=section&id=ITEM%203.%20DEFAULT%20UPON%20SENIOR%20SECURITIES) The company reported no defaults upon senior securities - There were no defaults upon senior securities to report[190](index=190&type=chunk) [Exhibits](index=48&type=section&id=ITEM%206.%20EXHIBITS) This section lists the exhibits filed with the Form 10-Q, including officer certifications and XBRL data files - Exhibits filed include certifications by the principal executive officer and principal financial officer, as well as XBRL instance documents[194](index=194&type=chunk) [Signatures](index=49&type=section&id=SIGNATURES)

AgEagle Aerial Systems, Inc. (NYSE:UAVS) Q2 2022 Earnings Conference Call August 16, 2022 4:30 PM ET Company Participants Barrett Mooney - Chief Executive Officer and Chairman Nicole Fernandez-McGovern - Chief Financial Officer and Executive Vice President, Operations Operator Good day, everyone and thank you for participating in today’s conference call. Joining us today from AgEagle is Chief Executive Officer and Chairman of the Board, Barrett Mooney; and Nicole Fernandez-McGovern, AgEagle’s Chief Financia ...