Revenue and Profitability - Revenue for the three months ended September 30, 2025, was $2,134,588, an increase of $603,324 or 39% compared to $1,531,264 in the same period of 2024, driven by growth in both enterprise and retail channels [184]. - Gross profit for the three months ended September 30, 2025, was $840,388, representing an increase of $440,901 or 110% from $399,487 in the same period of 2024, with a gross margin of 39.4% compared to 26.1% in 2024 [186]. - For the three months ended September 30, 2025, net income totaled $1,603,465, an increase of $3,747,715 or 174% compared to a net loss of $2,144,250 for the same period in 2024 [192]. - Revenue for the nine months ended September 30, 2025, was $6,300,857, representing an increase of $2,739,554 or 77% from $3,561,303 in the same period in 2024, driven by growth in the retail channel and enterprise sales [193]. - Gross margin for the nine months ended September 30, 2025, was $2,131,873, an increase of $1,139,779 or 115%, with a gross margin percentage of 33.8% compared to 27.9% in 2024 [195]. Expenses - Operating expenses increased to $636,705 for the three months ended September 30, 2025, up $418,579 or 192% from $218,126 in the same period of 2024, primarily due to costs associated with the new motor factory [187]. - General and administrative expenses increased to $4,730,063 for the three months ended September 30, 2025, up $3,355,074 or 244% from $1,374,989 in the same period of 2024, largely due to increased non-cash stock compensation [190]. - Operating expenses for the nine months ended September 30, 2025, totaled $1,343,584, an increase of $799,364 or 147% from $544,220 in 2024, primarily related to warehouse operations and new motor production facility costs [196]. - General and administrative expenses for the nine months ended September 30, 2025, totaled $15,151,160, an increase of $11,422,411 or 306% from $3,728,749 in 2024, largely due to increased stock-based compensation [199]. Research and Development - Research and development expenses rose to $39,369 for the three months ended September 30, 2025, an increase of $24,369 or 162% compared to $15,000 in the same period of 2024, reflecting ongoing new product development [188]. - Research and development expenses for the nine months ended September 30, 2025, were $110,002, an increase of $67,924 or 161% compared to $42,078 in 2024, focusing on new product development [197]. Cash and Assets - As of September 30, 2025, current assets totaled $91,704,048, with cash balances of $64,285,750 and current liabilities of $5,933,935, resulting in net working capital of $85,770,113 [206]. - As of November 6, 2025, the company had approximately $133.0 million in cash, sufficient to fund operating plans for more than the next 12 months [209]. Orders and Acquisitions - The company secured a $12.8 million defense purchase order from Strategic Logix for NDAA compliant components, covering over 160,000 manufactured components [175]. - A purchase order from the U.S. Army's 101 Airborne Division for 3,500 NDAA-compliant motors was secured, with plans for an additional order of 20,000 components in 2026 [173]. - The acquisition of Rotor Lab Pty Ltd was finalized on September 3, 2025, for $4 million in common stock, with potential additional earnout consideration of up to $3 million [172]. Capital and Executive Appointments - The company entered into a Capital on Demand Sales Agreement to issue and sell up to $300 million worth of common stock, with $72.1 million raised from the sale of 4,666,600 shares at an average price of $15.46 per share in October 2025 [167][169]. - The company appointed several key executives in 2025, including a Vice President of Engineering and a Vice President of Marketing, to enhance its operational capabilities and market presence [179][180].
Unusual Machines(UMAC) - 2025 Q3 - Quarterly Report