Financial Data and Key Metrics Changes - The company reported a net loss of $32 million for 2024, but emphasized that it is in the best financial position ever, with more cash in the bank than before and a focus on controlling cash burn [19][20][21] - Cash position improved from $1.7 million at the start of the quarter to $3.8 million at the end, with an additional $2.4 million received from warrant exercises [11][12][24] - Total revenue for the year reached $5.65 million, exceeding the target of $5 million, with a gross margin of 28% for the fourth quarter [13][23] Business Line Data and Key Metrics Changes - The components business started contributing to revenue, representing about 15% of total sales in the fourth quarter [14][35] - Enterprise sales accounted for 15% of the fourth quarter's B2B sales, with expectations to increase this to 50% over the next few quarters [14][54] Market Data and Key Metrics Changes - The U.S. market is seen as favorable for growth in 2025, particularly due to sanctions against T-Motor, which has created a market vacuum for alternative suppliers [40][41] - The company is experiencing accelerated domestic orders, although European market orders have not materialized as expected [36][37] Company Strategy and Development Direction - The company is focusing on aggressive growth, particularly in the components business, and plans to scale production in Orlando [17][41] - Management is optimistic about leveraging tariffs to improve margins and market share against competitors with a larger mix of Chinese products [41][42] Management's Comments on Operating Environment and Future Outlook - The management expressed confidence in the company's financial health and growth potential, despite uncertainties in the political landscape affecting defense spending [33][43] - The company is positioned to take advantage of favorable market conditions and is actively working to fill the void left by sanctioned suppliers [40][72] Other Important Information - The company has eliminated $4 million in debt and increased its fully diluted share count from 11.2 million to 17 million since the IPO [21][30] - Management is implementing stock sales plans to manage tax obligations related to equity grants [15] Q&A Session Summary Question: Impact of tariffs on 2025 - Management indicated that tariffs could lead to a 10% to 15% margin expansion while allowing for competitive pricing on in-house products [48] Question: Key financial metrics to focus on - Management emphasized the importance of cash flow, revenue growth, and gross margin as key metrics [49][50] Question: Enterprise sales pipeline and revenue expectations - The internal target is for B2B sales to represent 50% of revenue within four to six quarters [54] Question: Production capabilities and sourcing - The company is initially using contract suppliers for motor production but plans to build in-house capabilities to increase volumes and margins [57] Question: Financial targets for 2025 - Management plans to provide more detailed financial targets after Q1 2025, depending on tariff implementations and market conditions [59] Question: Aloft acquisition timeline - The acquisition is progressing but not prioritized over immediate production needs due to market demands [62] Question: Future growth opportunities from sanctions - Management sees significant opportunities arising from sanctions against Chinese firms, particularly in the motor segment [84] Question: Current sourcing from China - The company has reduced its reliance on Chinese sourcing significantly since the IPO, with a focus on U.S.-made components [91]

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-K (Exact name of registrant as specified in its charter) ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2024 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT For the transition period from ________ to _________ Commission File Number: 001-41961 Unusual Machines, Inc. (State or other jurisdiction of i ...

Company Analysis - Unusual Machines Inc (NYSE: UMAC) is rated as a hold due to uncertainty from the latest US National Defense Act which calls for the formation of an appropriate agency [1] Analyst Background - First Principles Partners specializes in equity research focusing on technology innovation and sustainability investment [2] - The analyst uses a "First Principles" approach to break down complex problems into basic financial and technological elements to uncover overlooked investment opportunities [2] - The analyst has a strong background in investment private equity and venture capital with a proven track record of delivering strong returns [2] - Articles focus on emerging technologies sustainable investing and the intersection of innovation and finance [2]

Core Viewpoint - Unusual Machines, Inc. (UMAC) has gained significant attention from investors following the appointment of Donald Trump Jr. to its advisory board, leading to a substantial increase in stock price and speculation about its potential as a meme stock [1][4][5] Company Overview - UMAC specializes in manufacturing drone components, focusing on reducing reliance on foreign supply chains. The company has made strategic acquisitions, including FPV market leader Fat Shark and e-commerce platform Rotor Riot, positioning itself to serve growing industries such as public safety and defense [2][3] - The company reported Q3 2024 sales of $1.53 million, reflecting a 9% sequential increase, with gross margins at 26%. UMAC aims to achieve $5 million in sales this year, indicating steady growth [6] Strategic Moves - The appointment of Donald Trump Jr. is seen as a strategic move to enhance UMAC's presence in the U.S. drone market. His involvement aligns with the company's mission to bring drone manufacturing jobs back to America [4][5] - CEO Allan Evans emphasized Trump Jr.'s expertise and influence, suggesting that his guidance could be pivotal for the company's growth during this critical period [5] Market Performance - UMAC's stock has surged nearly 700% in the past month, highlighting its speculative nature driven by low float and increased trading volume. The stock is currently trading at 35 times sales, with a market cap of $125 million and a float of under 5 million shares [6][7] - Despite the stock's rapid rise, analysts have issued a 12-month price forecast of $4.00, indicating a potential downside of 69.23% from current levels [6] Speculative Nature and Future Outlook - The stock's speculative nature is underscored by its micro-float and reliance on retail investor interest, with online buzz contributing to its rally. Long-term potential will depend on UMAC's ability to scale operations and capture market share in the U.S. drone sector [8][9] - Limited analyst coverage exists, with a single Buy rating from ThinkEquity suggesting some institutional confidence, but potential investors are advised to weigh recent gains against the stock's speculative characteristics [9]

Company News - Unusual Machines shares soared for a second straight session after Donald Trump Jr joined the drone parts maker's advisory board [1] - The company's CEO Allan Evans stated that Trump Jr's appointment was not aimed at leveraging his connections to secure government contracts [1] - Trump Jr owns more than 331,000 shares of Unusual Machines [2] - Unusual Machines began publicly trading in February and the Trump Jr news sent shares to all-time highs in the past two sessions [2] Stock Performance - Unusual Machines shares were up 32% to $13 03 in recent trading after soaring 85% on Wednesday [2] - The stock price reached $14 10, a 42 57% increase, on November 29, 2024 [4] Industry Perspective - Trump Jr emphasized the need for the US to stop buying Chinese-made drones and drone parts, highlighting the importance of domestic drone manufacturing [2] - He expressed enthusiasm for Unusual Machines' efforts to bring drone manufacturing jobs back to the USA [2]

Revenue and Sales Performance - Q3 2024 revenue was $1.53 million, a 9% quarter-over-quarter increase, with a gross margin of 26%[3] - Total sales through Q3 2024 reached $3.56 million, on track to meet or exceed the 2024 target of $5 million[3] - Revenue for the three months ended September 30, 2024 was $1,531,264, compared to no revenue in the same period in 2023[17] - Gross profit for the three months ended September 30, 2024 was $399,487, compared to no gross profit in the same period in 2023[17] Product and Market Growth - Received orders for nearly 7,000 units of the NDAA-compliant Brave 7 flight controller in the first week of availability, currently shipping over 1,000 units per month[4] - The global drone accessories market is valued at $17.5 billion and is projected to exceed $115 billion by 2032[13] - Enterprise component sales are expected to drive growth in Q4 2024 and throughout 2025[4] - The company anticipates more products to receive Blue UAS Framework certification in Q4 2024, boosting enterprise sales[8] Financial Position and Cash Flow - Cash position at the end of Q3 2024 was $1.69 million, down from $2.2 million at the start of the quarter[6] - Cash and cash equivalents increased to $1.69 million as of September 30, 2024, up from $0.9 million as of December 31, 2023[12] - Net cash used in operating activities for the nine months ended September 30, 2024, was $2,718,513, compared to $1,382,538 in the same period in 2023[21] - Net cash used in investing activities for the nine months ended September 30, 2024, was $852,801, compared to $3,164 in the same period in 2023[21] - Net cash provided by financing activities for the nine months ended September 30, 2024, was $4,362,313, compared to $376,702 used in the same period in 2023[21] - Cash, end of period for September 30, 2024, was $1,685,772, compared to $1,337,018 in the same period in 2023[21] Net Loss and Expenses - Net loss for Q3 2024 was $2.1 million, or $0.30 per share, compared to a net loss of $0.4 million, or $0.11 per share, in Q3 2023[11] - Net loss for the three months ended September 30, 2024 was $(2,144,250), compared to $(353,674) in the same period in 2023[17] - Total operating expenses for the three months ended September 30, 2024 were $1,860,539, compared to $353,674 in the same period in 2023[17] - Net loss per share for the three months ended September 30, 2024 was $(0.30), compared to $(0.11) in the same period in 2023[17] - Net loss for the nine months ended September 30, 2024, was $4,862,490, compared to $1,966,876 in the same period in 2023[21] Equity and Capital Structure - Total stockholders' equity as of September 30, 2024 was $19,226,002, compared to $1,831,505 as of September 30, 2023[20] - Common shares outstanding as of September 30, 2024 were 6,184,983, compared to 3,217,255 as of September 30, 2023[20] - Additional paid-in capital as of September 30, 2024 was $27,959,642, compared to $5,315,790 as of September 30, 2023[20] - Accumulated deficit as of September 30, 2024 was $(8,795,536), compared to $(3,516,460) as of September 30, 2023[20] - Issuance of common shares for initial public offering, net of offering costs, was 1,250,000 shares for $3,849,555 in the nine months ended September 30, 2024[20] - Proceeds from issuance of common shares were $5,000,000 for the nine months ended September 30, 2024[21] - Common share issuance offering costs were $637,687 for the nine months ended September 30, 2024[21] Financing and Capital Raising - Finalized a private placement in October 2024 for $1.955 million, with net proceeds of $1.733 million[5] - Non-cash consideration paid for assets acquired and liabilities assumed was $19,000,000 for the nine months ended September 30, 2024[21] - Deferred acquisition costs were $100,000 for the nine months ended September 30, 2024[21] - Deferred offering costs recorded as reduction of proceeds were $512,758 for the nine months ended September 30, 2024[21]

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2024 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 No. 333-270519 Unusual Machines, Inc. (Exact Name of Registrant as Specified in Its Charter) | --- | ...

As filed with the Securities and Exchange Commission on September 11, 2024 Registration No. 333-_____ UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM S-1 REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933 Unusual Machines, Inc. Table of Contents Allan Evans Chief Executive Officer Unusual Machines, Inc. 4677 L B McLeod Rd Suite J Orlando, FL 32811 (855) 921-4600 (Exact name of Registrant as specified in its charter) (State or other jurisdiction of Nevada 3663 66-0927642 (Pr ...

Exhibit 99.1 Unusual Machines Issues Letter to Shareholders CEO Allan Evans shares Q2 2024 achievements and provides insight into the Company's strategic expansion ORLANDO, Florida – August 14, 2024 (ACCESSWIRE) – Unusual Machines, Inc. (NYSE American: UMAC) ("Unusual Machines" or the "Company"), a drone and drone components manufacturer, today announced it filed its 10-Q with the U.S. Securities and Exchange Commission for the second quarter of 2024 and provided the following letter to its shareholders fro ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2024 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 No. 333-270519 Unusual Machines, Inc. (Exact Name of Registrant as Specified in Its Charter) | --- | --- ...