Unusual Machines(UMAC) - 2024 Q3 - Quarterly Results

Revenue and Sales Performance - Q3 2024 revenue was $1.53 million, a 9$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]