Safe Pro Group Inc.(SPAI) - 2025 Q2 - Quarterly Report

PART I: FINANCIAL INFORMATION Presents unaudited condensed consolidated financial statements and management's discussion and analysis Item 1. Financial Statements (Unaudited) Presents unaudited condensed consolidated financial statements, including balance sheets, operations, equity, cash flows, and detailed notes Condensed Consolidated Balance Sheets Provides a snapshot of the company's financial position, detailing assets, liabilities, and shareholders' equity | ASSETS (Unaudited) | June 30, 2025 | December 31, 2024 | | :------------------- | :------------ | :---------------- | | Cash | $805,596 | $1,970,719 | | Total current assets | $1,331,838 | $2,750,129 | | Total other assets | $2,207,493 | $2,199,814 | | TOTAL ASSETS | $3,539,331 | $4,949,943 | | LIABILITIES AND SHAREHOLDERS' EQUITY | | | | Total current liabilities | $809,911 | $893,926 | | Total long-term liabilities | $162,192 | $181,592 | | Total liabilities | $972,103 | $1,075,518 | | Total shareholders' equity | $2,567,228 | $3,874,425 | | Total liabilities and shareholders' equity | $3,539,331 | $4,949,943 | Condensed Consolidated Statements of Operations Details the company's revenues, costs, and net loss for the three and six months ended June 30, 2025, and 2024 | (Unaudited) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :-------------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Total Revenues | $92,753 | $642,989 | $277,555 | $950,642 | | Total Cost of Revenues | $61,196 | $458,374 | $184,432 | $638,812 | | Gross Profit | $31,557 | $184,615 | $93,123 | $311,830 | | Total Operating Expenses | $1,954,903 | $1,307,421 | $6,022,159 | $2,519,521 | | Loss from Operations | $(1,923,346) | $(1,122,806) | $(5,929,036) | $(2,207,691) | | Total Other Income (Expense), net | $8,787 | $(92,117) | $49,460 | $(151,092) | | Net loss | $(1,914,559) | $(1,214,923) | $(5,879,576) | $(2,358,783) | | Basic and diluted loss per share | $(0.13) | $(0.14) | $(0.39) | $(0.27) | Condensed Consolidated Statements of Changes in Stockholders' Equity Outlines changes in common stock, additional paid-in capital, and accumulated deficit for the periods presented | (Unaudited) | June 30, 2025 | December 31, 2024 | | :-------------------------------- | :------------ | :---------------- | | Common Stock ( of Shares) | 15,374,685 | 14,534,685 | | Common Stock (Amount) | $1,537 | $1,453 | | Additional Paid-in Capital | $22,696,018 | $18,123,723 | | Accumulated Deficit | $(20,130,327) | $(14,250,751) | | Total Shareholders' Equity | $2,567,228 | $3,874,425 | - For the six months ended June 30, 2025, the company issued 840,000 common shares for stock-based compensation, contributing $3,457,681 to additional paid-in capital. Additionally, 1,050 Series C preferred shares were issued for cash, adding $1,050,000 to additional paid-in capital[14] - The net loss for the six months ended June 30, 2025, was $(5,879,576), significantly increasing the accumulated deficit[14] Condensed Consolidated Statements of Cash Flows Summarizes cash inflows and outflows from operating, investing, and financing activities for the six months | CASH FLOWS (Unaudited) | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :-------------------------------- | :----------------------------- | :----------------------------- | | Net cash used in operating activities | $(1,952,501) | $(1,159,475) | | Net cash used in investing activities | $(225,877) | $(223,509) | | Net cash provided by financing activities | $1,045,563 | $855,569 | | NET DECREASE IN CASH | $(1,132,815) | $(527,415) | | CASH, beginning of period | $1,970,719 | $703,368 | | CASH, end of period | $805,596 | $175,953 | - Cash used in operating activities increased by 68.4% from $(1,159,475) in H1 2024 to $(1,952,501) in H1 2025, primarily due to a larger net loss[18] - Financing activities provided $1,045,563 in H1 2025, mainly from the sale of Series C preferred shares and warrants ($1,050,000), an increase from $855,569 in H1 2024[18] Notes to Unaudited Condensed Consolidated Financial Statements Provides detailed explanations of accounting policies, financial instruments, and segment information NOTE 1 - Nature of Organization, Liquidity and Summary of Significant Accounting Policies Outlines business, liquidity challenges, going concern issues, and key accounting policies including revenue recognition - Safe Pro Group Inc. focuses on innovative security and protection solutions, integrating advanced AI/ML, drone-based remote sensing, and personal protective gear through its subsidiaries Safe-Pro USA, Airborne Response, and Safe Pro AI[20] - The company has incurred a net loss of $5,879,576 and used $1,952,501 in cash from operations for the six months ended June 30, 2025, resulting in an accumulated deficit of $20,130,327 and raising substantial doubt about its ability to continue as a going concern[21][23] - Management plans to address going concern risk by submitting bids for new customer business and seeking additional equity financing, while also investing in R&D and 'SpotlightAI' for future revenue growth[23] - On May 9, 2025, the Company closed a private offering, selling 1,050 shares of Series C convertible preferred stock for $1.05 million and three-year warrants to purchase common stock[24] NOTE 2 – Accounts Receivable and Other Receivables Details composition of accounts and other receivables, noting no allowance for doubtful accounts | Accounts Receivable | June 30, 2025 | December 31, 2024 | | :------------------ | :------------ | :---------------- | | Accounts receivable | $38,559 | $123,686 | | Less: allowance for doubtful accounts | - | - | | Accounts receivable, net | $38,559 | $123,686 | | Other Receivables | June 30, 2025 | December 31, 2024 | | :---------------- | :------------ | :---------------- | | Other receivables | $142,526 | $142,526 | | Less: allowance for doubtful other receivables | $(142,526) | $(142,526) | | Other receivables, net | $- | $- | - The company had no performance bonds receivable and outstanding as of June 30, 2025, and December 31, 2024, as the full amount was offset by an allowance for doubtful receivables[51] NOTE 3 – Inventory Breaks down inventory into raw materials, work in process, and finished goods, showing a slight decrease | Inventory | June 30, 2025 | December 31, 2024 | | :-------------------------- | :------------ | :---------------- | | Raw materials | $273,530 | $259,658 | | Work in process | $10,548 | $60,229 | | Finished goods | $22,210 | $22,174 | | Less reserve for obsolete inventory | - | - | | Total | $306,288 | $342,061 | NOTE 4 – Property and Equipment Details property and equipment, net of depreciation, showing a decrease in total net assets | Property and Equipment | June 30, 2025 | December 31, 2024 | | :--------------------- | :------------ | :---------------- | | Manufacturing equipment | $340,009 | $340,009 | | Drones and related equipment | $129,537 | $115,423 | | Software library | $10,000 | $10,000 | | Furniture, fixtures and office equipment | $14,249 | $7,329 | | Less accumulated depreciation | $(196,863) | $(157,880) | | Total | $296,932 | $314,881 | - Depreciation expense for the three months ended June 30, 2025, was $19,957, and for the six months ended June 30, 2025, was $24,649[54] NOTE 5 – Intangible Assets and Goodwill Provides details on intangible assets, primarily SpotlightAI™ software, and goodwill, including amortization - The acquisition of Safe Pro AI on March 9, 2023, resulted in a $545,625 increase in finite-lived intangible assets, primarily the SpotlightAI™ software, used by the Ukrainian government and humanitarian aid organizations[55] | Intangible Assets (June 30, 2025) | Amortization period (years) | Gross Amount | Accumulated Amortization | Net finite intangible assets | | :---------------------------------- | :-------------------------- | :----------- | :----------------------- | :--------------------------- | | Customer relationships | 5 | $388,000 | $(222,300) | $165,700 | | Contractual employment agreements | 3 | $310,000 | $(307,652) | $2,348 | | Acquired capitalized internal-use software development costs | 3 | $1,123,056 | $(171,943) | $951,113 | | Total | | $1,721,325 | $(701,895) | $1,119,161 | - Amortization of intangible assets for the six months ended June 30, 2025, was $174,327, an increase from $90,383 in the prior year period[59] | Goodwill | June 30, 2025 | December 31, 2024 | | :---------------- | :------------ | :---------------- | | Safe-Pro USA | $518,255 | $518,255 | | Airborne Response | $166,612 | $166,612 | | Total goodwill | $684,867 | $684,867 | NOTE 6 – Note Payable Details the company's long-term SBA COVID-19 EIDL Loan, secured by company assets - The company has a $146,000 SBA COVID-19 EIDL Loan, accruing interest at 3.75% per annum, with payments deferred until 30 months from the note date and a term of 30 years[61] | Notes Payable | June 30, 2025 | December 31, 2024 | | :-------------------------- | :------------ | :---------------- | | Notes payable | $146,000 | $146,000 | | Less: current portion of notes payable | - | - | | Notes payable – long-term | $146,000 | $146,000 | | Future Note Payable Principal Payments | Amount | | :------------------------------------- | :----- | | 2025 | $- | | 2026 | $2,535 | | 2027 | $3,219 | | 2028 | $3,342 | | 2029 | $3,469 | | 2030 | $3,602 | | Thereafter | $129,833 | | Total note payable | $146,000 | NOTE 7 – Convertible Notes Payable Details convertible debt agreements from 2023 and 2024, which were converted into common shares - In December 2023, the Company received $475,000 from a convertible debt agreement with a 15% interest rate, maturing December 2024, and warrants to purchase 148,438 common shares at $1.00[64] - In March 2024, an additional $275,001 was received from a similar convertible debt agreement, maturing March 2025, with warrants for 85,938 common shares at $1.00[65] - Both convertible notes, totaling $750,001 in principal and $58,531 in accrued interest, were converted into 252,666 common shares on August 27, 2024[66] NOTE 8 – Stockholders' Equity Provides comprehensive details on preferred and common stock issuances, warrants, and stock options - Series A and B Preferred shares were converted into common stock in August 2024, while Series C Preferred Stock was designated in May 2025, with a stated value of $1,100 per share and a conversion price of $2.25[71][74][75][77] - For the six months ended June 30, 2025, the company issued 840,000 common shares for stock-based compensation and services, totaling $3,457,765 in value[14][81][82][83][84][85][86][87] - As of June 30, 2025, 651,366 warrants were outstanding with a weighted average exercise price of $3.18, and 672,500 stock options were outstanding with a weighted average exercise price of $5.46[93][102] - The 2025 Equity Incentive Plan, approved by stockholders in June 2025, reserves 5,000,000 shares of common stock for issuance and includes an evergreen increase of 5% of outstanding common stock annually[105][106] NOTE 9 – Commitments and Contingencies Addresses legal matters, product liability insurance, and a contingent liability to former Safe-Pro USA members - The company is not currently involved in any pending or threatened legal proceedings that are expected to have a material adverse effect on its financial condition[117][229] - Safe-Pro USA carries a product liability policy covering up to $2,000,000 in claims retroactive to June 26, 2020[118] - A contingent liability of $381,581 is due to former Safe-Pro USA members, payable only from proceeds related to contracts with the Bangladesh Ministry of Defense customer[119] NOTE 10 – Concentrations Highlights concentrations of credit risk, geographic sales, customer base, and suppliers - The company uses an Insured Cash Sweep Service (ICS) to distribute deposits exceeding $250,000 across multiple institutions, mitigating FDIC insurance limits[121] - For the six months ended June 30, 2025, 77.6% of total sales were to a customer in the United States and 22.4% to Canada. Three customers accounted for approximately 88.5% of total sales[122][123] - For the six months ended June 30, 2025, approximately 93.8% of inventory was purchased from four suppliers, indicating a high supplier concentration[126] NOTE 11 – Related Party Transactions Details transactions with related parties, including liabilities, waived salaries, and inventory purchases - As of June 30, 2025, $381,581 is due to former Safe-Pro USA members (a current director), payable only from proceeds from Bangladesh Ministry of Defense contracts[129] - Mr. Borkar, CEO, and his spouse waived accrued salaries totaling $56,538 each as of March 31, 2025, with portions recorded as contributed capital and offsets to wages[130][131] - The company purchased $5,299 in inventory and services from a company owned by Mr. Borkar's spouse during the six months ended June 30, 2025[134] NOTE 12 – Operating Lease Right-of-Use ("ROU") Assets and Operating Lease Liabilities Outlines operating lease agreements for office space and a vehicle, detailing ROU assets and lease liabilities - The company renewed an office lease through July 31, 2026, incurring an additional ROU asset and lease liability of $33,084[136] | ROU Assets | June 30, 2025 | December 31, 2024 | | :-------------------------- | :------------ | :---------------- | | Office lease right of use assets | $310,598 | $277,514 | | Auto lease right of use asset | $19,583 | $19,583 | | Less: accumulated amortization | $(233,448) | $(195,476) | | Balance of ROU assets | $96,733 | $101,621 | | Operating Lease Liabilities | June 30, 2025 | December 31, 2024 | | :-------------------------- | :------------ | :---------------- | | Lease liabilities related to office lease right of use assets | $87,678 | $91,113 | | Lease liabilities related to auto lease right of use asset | $6,075 | $7,595 | | Less: current portion of lease liabilities | $(77,561) | $(63,115) | | Lease liabilities – long-term | $16,192 | $35,592 | | Future Minimum Base Lease Payments (June 30, 2025) | Amount | | :------------------------------------------------- | :----- | | 2025 | $40,901 | | 2026 | $56,963 | | 2027 | $1,183 | | Total minimum non-cancellable operating lease payments | $99,047 | | Less: discount to fair value | $(5,295) | | Total lease liabilities on June 30, 2025 | $93,752 | NOTE 13 – Segment Reporting Presents financial information for the company's three reportable business segments: Safe-Pro USA, Airborne Response, and Safe Pro AI - The company operates in three segments: Safe-Pro USA (personal protective gear), Airborne Response (drone-based services), and Safe Pro AI (AI/ML software)[145] | Segment Revenues | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :----------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Safe-Pro USA | $48,748 | $430,039 | $189,348 | $652,395 | | Airborne Response | $14,673 | $212,950 | $18,877 | $298,247 | | Safe Pro AI | $29,333 | $- | $69,330 | $- | | Total Revenues | $92,753 | $642,989 | $277,555 | $950,642 | | Segment Net (Loss) Income | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :------------------------ | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Safe-Pro USA | $(100,303) | $(6,694) | $(165,993) | $(70,171) | | Airborne Response | $(127,403) | $(140,317) | $(273,828) | $(284,984) | | Safe Pro AI | $(172,019) | $(590) | $(318,949) | $(86,527) | | Other | $(1,514,834) | $(1,067,322) | $(5,120,806) | $(1,917,101) | | Total Net Loss | $(1,914,559) | $(1,214,923) | $(5,879,576) | $(2,358,783) | | Identifiable Long-Lived Tangible Assets, net by segment | June 30, 2025 | December 31, 2024 | | :------------------------------------------------------ | :------------ | :---------------- | | Safe-Pro USA | $193,261 | $217,134 | | Airborne Response | $68,084 | $71,444 | | Safe Pro AI | $31,095 | $22,143 | | Other | $4,492 | $4,160 | | Total | $296,932 | $314,881 | NOTE 14 – Subsequent Events Discloses events after the reporting period, including preferred stock conversion and additional stock-based compensation - In July 2025, 875 shares of Preferred Series C were converted into 427,779 common shares, and 145 shares were converted into 70,889 common shares[151] - The Compensation Committee approved the issuance of 145,000 shares for services ($562,600) and 150,000 shares for compensation ($582,000) in July 2025, pursuant to the 2022 Equity Plan[152][153] Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations Provides management's perspective on financial condition, operational results, liquidity, capital resources, and critical accounting policies Cautionary Note Regarding Forward-Looking Statements Highlights that the report contains subjective forward-looking statements with inherent risks and uncertainties - This section emphasizes that the report contains forward-looking statements that are subjective and involve known and unknown risks, uncertainties, and other important factors that could cause actual results to differ materially from expectations[158][160][161] Business Overview Introduces Safe Pro Group Inc. as a parent company focusing on AI/ML software, PPE, and drone services - Safe Pro Group Inc. is a parent company of Airborne Response Corp., Safe-Pro USA, LLC, and Safe Pro AI LLC, focusing on advanced AI/ML software, personal protective equipment, and drone-based aerial managed services[162] - The company expects to realize revenue from its Safe Pro AI segment and its Spotlight AI™ ecosystem, which has analyzed over 1.66 million drone images and identified over 28,000 threats across 6,705 hectares in Ukraine[165] Significant Components of Our Results of Operations Explains key drivers of revenues, gross profit, and operating expenses, including anticipated increases in R&D and S,G&A - Revenues are primarily generated from product sales (PPE, ballistic protective equipment) and aerial managed services (drones), recognized at shipment or service completion[171] - Gross profit is influenced by supply chain changes, product mix, operating performance, and production costs, with expected fluctuations[172] - Operating expenses are categorized into salaries, wages and payroll taxes, research and development, professional fees, selling, general and administrative expenses, and depreciation and amortization[173] - The company anticipates increases in R&D, selling, general and administrative expenses as it expands operations, sales, and marketing efforts for new products and services[175][177][191] Results of Operations Analyzes the company's financial performance, detailing changes in revenues, costs, and net loss for the periods presented Comparison of the Three months Ended June 30, 2025 and 2024 Compares financial performance for the three months, highlighting significant decreases in revenue and increases in net loss | Financial Metric | June 30, 2025 | June 30, 2024 | Change ($) | Change (%) | | :----------------------------------- | :------------ | :------------ | :--------- | :--------- | | Total Revenues | $92,753 | $642,989 | $(550,236) | (85.6)% | | Total Cost of Revenues | $61,196 | $458,374 | $(397,178) | (86.6)% | | Gross profit | $31,557 | $184,615 | $(153,058) | (82.9)% | | Total operating expenses | $1,954,903 | $1,307,421 | $647,482 | 49.5% | | Loss from operations | $(1,923,346) | $(1,122,806) | $(800,540) | 71.3% | | Total other income (expense) | $8,787 | $(92,117) | $100,904 | (109.5)% | | Net loss | $(1,914,559) | $(1,214,923) | $(699,636) | 57.6% | - Total revenues decreased by 85.6% due to a one-time contract for EOD gear completed in the prior period, with Safe-Pro USA sales down 88.7% and Airborne Response sales down 93.1%. Safe Pro AI generated $29,333 in revenue from $0 in the prior year[182][184] - Operating expenses increased by 49.5%, driven by a 10.0% increase in salaries, wages, and payroll taxes, a significant increase in professional fees (68.7%), and a 98.3% increase in depreciation and amortization[181][185][186][188][190] Comparison of the Six months Ended June 30, 2025 and 2024 Compares financial performance for the six months, showing substantial declines in revenue and a significant increase in net loss | Financial Metric | June 30, 2025 | June 30, 2024 | Change ($) | Change (%) | | :----------------------------------- | :------------ | :------------ | :--------- | :--------- | | Total Revenues | $277,555 | $950,642 | $(673,087) | (70.8)% | | Total Cost of Revenues | $184,432 | $638,812 | $(454,380) | (71.1)% | | Gross profit | $93,123 | $311,830 | $(218,707) | (70.1)% | | Total operating expenses | $6,022,159 | $2,519,521 | $3,502,638 | 139.0% | | Loss from operations | $(5,929,036) | $(2,207,691) | $(3,721,345) | 168.6% | | Total other income (expense) | $49,640 | $(151,092) | $200,732 | (132.7)% | | Net loss | $(5,879,576) | $(2,358,783) | $(3,520,793) | 149.3% | - Total revenues decreased by 70.8% for the six months, with Safe-Pro USA sales down 71.1% and Airborne Response sales down 93.7%. Safe Pro AI generated $69,330 in revenue[183] - Operating expenses surged by 139.0%, primarily due to a 196.5% increase in salaries, wages, and payroll taxes (driven by $1,606,070 in non-cash stock compensation) and a 145.2% increase in professional fees (due to $1,753,695 in non-cash share-based professional fees)[185][186][188] - Net loss increased by 149.3% to $(5,879,576) for the six months ended June 30, 2025, compared to $(2,358,783) in the prior year, mainly due to increased operating expenses[193] Liquidity and Capital Resources Discusses the company's cash position, working capital, and sources and uses of cash from operating, investing, and financing activities | Balance Sheet Data | June 30, 2025 | December 31, 2024 | Change ($) | Change (%) | | :------------------------- | :------------ | :---------------- | :--------- | :--------- | | Cash | $805,596 | $1,970,719 | $(1,165,123) | (59.1)% | | Current assets | $1,331,838 | $2,750,129 | $(1,418,291) | (51.6)% | | Current liabilities | $809,911 | $893,926 | $(84,015) | (9.4)% | | Working capital | $521,927 | $1,856,203 | $(1,334,276) | (71.9)% | | Total stockholders' equity | $2,567,228 | $3,874,425 | $(1,307,197) | (33.7)% | - Cash decreased by 59.1% to $805,596, and working capital decreased by 71.9% to $521,927 as of June 30, 2025, primarily due to funding working capital needs from decreased revenue[195][196] - Net cash used in operating activities was $(1,952,500) for the six months ended June 30, 2025, mainly due to the net loss, partially offset by non-cash expenses like stock-based compensation[198] - Financing activities provided $1,045,563, primarily from the sale of Series C preferred stock and warrants ($1,050,000)[201] Critical Accounting Policies and Estimates Identifies key accounting policies and estimates, including revenue recognition, impairment, and stock-based compensation - Key accounting policies and estimates include allowances for credit losses on accounts receivable, revenue recognition (following ASU Topic 606), valuation of goodwill and intangible assets for impairment, and accounting for business and asset acquisitions[203][205][206][211][214][217][218] - The company recognizes stock-based compensation based on grant-date fair value over the vesting period, electing to recognize forfeitures as they occur[216] Item 3. Quantitative and Qualitative Disclosures About Market Risk States that the company is exempt from providing market risk disclosures due to its smaller reporting company status - The company is exempt from providing quantitative and qualitative disclosures about market risk due to its status as a smaller reporting company[219] Item 4. Controls and Procedures Reports ineffective disclosure controls and a material weakness in internal control over financial reporting, with a remediation plan - Disclosure controls and procedures were deemed ineffective as of June 30, 2025[221] - A material weakness in internal control over financial reporting was identified, specifically concerning segregation of duties and inventory management, attributed to limited resources and reliance on outside consultants[224][225] - The company plans to engage a third party to conduct a full assessment of its controls and procedures to remediate the material weakness[226] PART II. OTHER INFORMATION Provides additional information including legal proceedings, risk factors, equity sales, and other disclosures Item 1. Legal Proceedings Confirms the company is not involved in any material legal proceedings or litigation - The company is not currently involved in any pending legal proceedings or litigation that would likely have a material adverse effect on its business[229] Item 1A. Risk Factors Refers to the Annual Report on Form 10-K for risk factors, noting no material changes - Readers should refer to the 'Risk Factors' section in the Form 10-K for the year ended December 31, 2024, as there have been no material changes to the company's risk factors[231] Item 2. Unregistered Sales of Equity Securities and Use of Proceeds Details the issuance of restricted common shares for services under Section 4(a)(2) of the Securities Act - On June 13, 2025, 165,000 restricted common shares were issued for services at a fair market value of $3.01 per share, resulting in $496,650 recorded as professional fees[232] - These securities were issued pursuant to Section 4(a)(2) of the Securities Act and were not registered[233] Item 3. Defaults Upon Senior Securities Reports no defaults upon senior securities during the period - There were no defaults upon senior securities[234] Item 4. Mine Safety Disclosures States that mine safety disclosures are not applicable to the company - Mine safety disclosures are not applicable to the company[235] Item 5. Other Information Discloses Rule 10b5-1 trading arrangements adopted by the CEO and President of Airborne Response Corp - CEO Daniyel Erdberg adopted a Rule 10b5-1 trading plan on June 11, 2025, for the sale of up to 1,000,000 shares of his common stock, effective until August 31, 2026[236] - Christopher Todd, President of Airborne Response Corp., adopted a Rule 10b5-1 trading plan on June 27, 2025, for the sale of up to 62,500 shares of his common stock, effective until March 17, 2026[237] Item 6. Exhibits Lists exhibits filed with the Form 10-Q, including certificates, warrants, agreements, and certifications - Key exhibits include the Certificate of Designations of Series C Preferred Stock, Form of Warrant, Securities Purchase Agreement, and the Safe Pro Group Inc. 2025 Stock Plan[238] - Certifications by the Principal Executive Officer and Principal Financial Officer pursuant to Sections 302 and 906 of the Sarbanes-Oxley Act of 2002 are also included[238] SIGNATURES Contains the required signatures of the registrant's authorized officers, including the CEO and CFO - The report is signed by Daniyel Erdberg, Chairman and Chief Executive Officer, and Theresa Carlise, Chief Financial Officer, Treasurer & Assistant Secretary, on August 14, 2025[242]