AgEagle Announces Third Quarter 2023 Results
WICHITA, Kan., Nov. 14, 2023 (GLOBE NEWSWIRE) -- (NYSE American: UAVS) (“AgEagle” or the “Company”), an industry-leading provider of full stack flight hardware, sensors and software for commercial and government use, today announces its financial results for the three and nine months ended September 30, 2023.
Third Quarter 2023 Financial Highlights
- Revenues totaled $3.48 million for the three months ended September 30, 2023, decreasing 37% from $5.49 million reported for the same three-month period in the prior year. Nine-month revenues totaled $10.81 million in 2023, which were down 26% from $14.62 million for the first nine months of 2022.
- The decrease in revenues was largely due to lower sales of the Company’s eBee™ series of drones – a decline that was expected in conjunction with the commercial launch of AgEagle’s new eBee VISION in September 2023.
- Total operating expenses increased minimally to $7.20 million from $7.23 million for the three-month reporting periods ended September 30, 2023 and 2022. They were reduced by 28% to $19.24 million from $24.01 million for the comparable nine-month reporting periods.
- Loss from operations increased 14% to $5.99 million from $5.15 million for the three months ended September 30, 2023 and 2022, respectively; and were reduced 17% to $15.02 million from $18.02 million for the nine months ended September 30, 2023 and 2022, respectively.
- As of June 30, 2023, AgEagle’s cash position was $1.6 million, which compared to cash of $4.35 million as of December 31, 2022.
For more detailed information relating to the Company’s second quarter financial performance, please refer to the Interim Report on Form 10-Q filed yesterday afternoon with the U.S. Securities and Exchange Commission and accessible at or on AgEagle’s website at .
Third Quarter 2023 Operational Highlights
- The Company announced that , a global leader in the development, design and production of electrical, long range Vertical Take-Off and Landing (“VTOL”) drones, is the first to fully integrate AgEagle’s latest sensor innovation, the , in its new .
- Commercial production of the Company’s next generation fixed-wing unmanned aerial system, the commenced and orders for the systems are now being accepted.
- , a privately-owned Finnish company engaged in the design, manufacture and operation of autonomous airships for aerial environmental and critical infrastructure monitoring and surveillance announced it has chosen to equip its growing fleet of unmanned airships with AgEagle’s high performance RedEdge-P™ multispectral cameras for collection of high-quality images and sensor data.
- AgEagle completed an offering of 16,720,000 shares of common stock and 25,080,000 common stock purchase warrants (the "common warrant") to purchase 25,080,000 shares of common stock at a combined price of $0.25 per share and accompanying common warrants for aggregate gross proceeds of approximately $4.2 million, before deducting placement agent fees and other offering expenses.
Barrett Mooney, AgEagle’s Chairman and CEO, stated, “We enter the fourth quarter of 2023 optimistic about the Company’s long-term growth potential following the commercial release of our new eBee VISION drone. Given the rise in geopolitical conflicts and correlating increase in drone usage, we believe that AgEagle is well-positioned to support the increasing demand while remaining committed to achieving cost and productivity efficiencies and executing ongoing product innovation and our global marketing strategies.”
About AgEagle Aerial Systems Inc.
Through its three centers of excellence, AgEagle is actively engaged in designing and delivering best-in-class flight hardware, sensors and software that solve important problems for its customers. Founded in 2010, AgEagle was originally formed to pioneer proprietary, professional-grade, fixed-winged drones and aerial imagery-based data collection and analytics solutions for the agriculture industry. Today, AgEagle is a leading provider of full stack drone solutions for customers worldwide in the energy, construction, agriculture, and government verticals. For additional information, please visit our website at .
Forward-Looking Statements
This press release may contain “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Such statements involve risks and uncertainties that could negatively affect our business, operating results, financial condition, and stock price. Factors that could cause actual results to differ materially from management’s current expectations include those risks and uncertainties relating to our competitive position, the industry environment, potential growth opportunities, and the effects of regulation and events outside of our control, such as natural disasters, wars, or health epidemics. We expressly disclaim any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements contained herein to reflect any change in our expectations or any changes in events, conditions, or circumstances on which any such statement is based, except as required by law.
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SYSTEMS INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
| As of | |||||||||
| September 30, 2023 | December 31, 2022 | ||||||||
| (unaudited) | |||||||||
| ASSETS | |||||||||
| CURRENT ASSETS: | |||||||||
| Cash | $ | 1,600,143 | $ | 4,349,837 | |||||
| Accounts receivable, net | 2,015,045 | 2,213,040 | |||||||
| Inventories, net | 6,063,935 | 6,685,847 | |||||||
| Prepaid and other current assets | 832,188 | 1,029,548 | |||||||
| Notes receivable | 185,000 | 185,000 | |||||||
| Total current assets | 10,696,311 | 14,463,272 | |||||||
| Property and equipment, net | 597,964 | 791,155 | |||||||
| Right of use assets | 3,498,051 | 3,952,317 | |||||||
| Intangible assets, net | 9,242,659 | 11,507,653 | |||||||
| Goodwill | 21,679,411 | 23,179,411 | |||||||
| Other assets | 336,091 | 291,066 | |||||||
| Total assets | $ | 46,050,487 | $ | 54,184,874 | |||||
| LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||||
| Accounts payable | $ | 2,125,689 | $ | 1,845,135 | |||||
| Accrued liabilities | 1,650,609 | 1,680,706 | |||||||
| Promissory note | 2,625,000 | 287,381 | |||||||
| Contract liabilities | 329,536 | 496,390 | |||||||
| Current portion of lease liabilities | 840,535 | 628,113 | |||||||
| Current portion of COVID loans | 306,722 | 446,456 | |||||||
| Total current liabilities | 7,878,091 | 5,384,181 | |||||||
| Long term portion of lease liabilities | 2,756,056 | 3,161,703 | |||||||
| Long term portion of COVID loans | 509,184 | 446,813 | |||||||
| Defined benefit plan obligation | — | 106,163 | |||||||
| Long term portion of promissory note | 1,470,000 | 1,861,539 | |||||||
| Total liabilities | 12,613,331 | 10,960,399 | |||||||
| COMMITMENTS AND CONTINGENCIES (SEE NOTE 10) | |||||||||
| STOCKHOLDERS’ EQUITY: | |||||||||
| Preferred Stock, $0.001 par value, 25,000,000 shares authorized: | |||||||||
| Preferred Stock, Series F Convertible, $0.001 par value, 35,000 shares authorized, 6,275 shares issued and outstanding as of September 30, 2023, and 5,863 shares issued and outstanding as of December 31, 2022, respectively | 6 | 6 | |||||||
| Common Stock, $0.001 par value, 250,000,000 shares authorized, 117,878,831 and 88,466,613 shares issued and outstanding as of September 30, 2023, and December 31, 2022, respectively | 117,880 | 88,467 | |||||||
| Additional paid-in capital | 167,523,676 | 154,679,363 | |||||||
| Accumulated deficit | (134,374,548 | ) | (111,553,444 | ) | |||||
| Accumulated other comprehensive income | 170,142 | 10,083 | |||||||
| Total stockholders’ equity | 33,437,156 | 43,224,475 | |||||||
| Total liabilities and stockholders’ equity | $ | 46,050,487 | $ | 54,184,874 | |||||
See accompanying notes to these condensed consolidated financial statements.
AGEAGLE AERIAL SYSTEMS INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS
(UNAUDITED)
| For the Three Months Ended September 30, | For the Nine Months Ended September 30, | |||||||||||||||
| 2023 | 2022 | 2023 | 2022 | |||||||||||||
| Revenues | $ | 3,483,932 | $ | 5,490,714 | $ | 10,819,213 | $ | 14,620,565 | ||||||||
| Cost of sales | 2,269,858 | 3,407,573 | 6,594,973 | 8,622,436 | ||||||||||||
| Gross Profit | 1,214,074 | 2,083,141 | 4,224,240 | 5,998,129 | ||||||||||||
| Operating Expenses: | ||||||||||||||||
| General and administrative | 3,357,550 | 4,175,090 | 10,435,834 | 14,093,655 | ||||||||||||
| Research and development | 1,368,394 | 1,818,540 | 4,320,216 | 6,185,777 | ||||||||||||
| Sales and marketing | 978,243 | 1,236,841 | 2,911,963 | 3,736,548 | ||||||||||||
| Impairment | 1,500,000 | — | 1,579,287 | — | ||||||||||||
| Total Operating Expenses | 7,204,187 | 7,230,471 | 19,247,300 | 24,015,980 | ||||||||||||
| Loss from Operations | (5,990,113 | ) | (5,147,330 | ) | (15,023,060 | ) | (18,017,851 | ) | ||||||||
| Other Income (Expense): | ||||||||||||||||
| Interest expense, net | (399,651 | ) | (6,727 | ) | (994,751 | ) | (29,776 | ) | ||||||||
| Gain (loss) on debt extinguishment | (1,523,867 | ) | 6,486,899 | (1,523,867 | ) | 6,486,899 | ||||||||||
| Other income (expense), net | (106,497 | ) | 332,110 | (368,532 | ) | 27,372 | ||||||||||
| Total Other Income (Expense), net | (2,030,015 | ) | 6,812,282 | (2,887,150 | ) | 6,484,495 | ||||||||||
| Net Income (Loss) Before Income Taxes | (8,020,128 | ) | 1,664,952 | (17,910,210 | ) | (11,533,356 | ) | |||||||||
| Provision for income taxes | — | — | — | — | ||||||||||||
| Net Income (Loss) | $ | (8,020,128 | ) | $ | 1,664,952 | $ | (17,910,210 | ) | $ | (11,533,356 | ) | |||||
| Net Income (Loss) Per Common Share – Basic | $ | (0.07 | ) | $ | 0.02 | $ | (0.18 | ) | $ | (0.14 | ) | |||||
| Net Income (Loss) Per Common Share – Diluted | $ | (0.07 | ) | $ | 0.01 | $ | (0.18 | ) | $ | (0.14 | ) | |||||
| Weighted Average Number of Shares Outstanding During the Period – Basic | 111,083,155 | 85,966,687 | 98,976,085 | 81,004,011 | ||||||||||||
| Weighted Average Number of Shares Outstanding During the Period – Diluted | 111,083,155 | 113,623,789 | 98,976,085 | 81,004,011 | ||||||||||||
| Comprehensive Income (Loss): | ||||||||||||||||
| Net Income (Loss) attributable to common stockholders | $ | (8,020,128 | ) | $ | 1,664,952 | $ | (17,910,210 | ) | $ | (11,533,356 | ) | |||||
| Amortization of unrecognized periodic pension costs | (742 | ) | 97,846 | 43,302 | 100,487 | |||||||||||
| Foreign currency cumulative translation adjustment | (7,027 | ) | (372,368 | ) | 116,757 | (220,060 | ) | |||||||||
| Total comprehensive income (loss), net of tax | (8,027,897 | ) | 1,390,430 | (17,750,151 | ) | (11,652,929 | ) | |||||||||
| Accrued dividends on Series F Preferred Stock | (49,122 | ) | (94,694 | ) | (170,277 | ) | (94,694 | ) | ||||||||
| Deemed dividend on Series F Preferred Stock and warrants | — | — | (4,910,894 | ) | — | |||||||||||
| Total comprehensive income (loss) available to common stockholders | $ | (8,077,019 | ) | $ | 1,295,736 | $ | (22,831,322 | ) | $ | (11,747,623 | ) | |||||
See accompanying notes to these condensed consolidated financial statements.
AGEAGLE AERIAL SYSTEMS INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)
| For the Nine Months Ended September 30, | ||||||||
| 2023 | 2022 | |||||||
| CASH FLOWS FROM OPERATING ACTIVITIES: | ||||||||
| Net loss | $ | (17,910,210 | ) | $ | (11,533,356 | ) | ||
| Adjustments to reconcile net loss to net cash used in operating activities: | ||||||||
| Stock-based compensation | 1,125,209 | 3,058,741 | ||||||
| Depreciation and amortization | 3,027,644 | 2,887,244 | ||||||
| Defined benefit plan obligation and other | (188,653 | ) | (148,851 | ) | ||||
| Amortization of debt discount and warrant modification | 612,712 | — | ||||||
| (Loss) gain on debt extinguishment | 1,523,867 | (6,486,899 | ) | |||||
| Goodwill impairment | 1,500,000 | — | ||||||
| Lease impairment charge | 79,287 | |||||||
| Changes in assets and liabilities: | ||||||||
| Accounts receivable, net | 223,208 | (396,617 | ) | |||||
| Inventories, net | 660,208 | (2,221,569 | ) | |||||
| Prepaid expenses and other assets | 237,815 | 22,579 | ||||||
| Accounts payable | 264,123 | (281,937 | ) | |||||
| Accrued expenses and other liabilities | (28,133 | ) | (193,818 | ) | ||||
| Contract liabilities | (169,352 | ) | (307,610 | ) | ||||
| Other | 212,606 | 433,357 | ||||||
| Net cash used in operating activities | (8,829,669 | ) | (15,168,736 | ) | ||||
| CASH FLOWS FROM INVESTING ACTIVITIES: | ||||||||
| Purchases of property and equipment | (95,004 | ) | (250,379 | ) | ||||
| Payment of acquisition-related liabilities | — | (6,610,900 | ) | |||||
| Capitalization of platform development costs | (297,596 | ) | (635,568 | ) | ||||
| Capitalization of internal use software costs | (171,516 | ) | (565,894 | ) | ||||
| Net cash used in investing activities | (564,116 | ) | (8,062,741 | ) | ||||
| CASH FLOWS FROM FINANCING ACTIVITIES: | ||||||||
| Sales of Common Stock, net of issuance costs | 3,817,400 | 4,583,341 | ||||||
| Sale of Preferred Stock, Series F Convertible, net of issuance costs | 3,000,000 | 9,920,000 | ||||||
| Exercise of stock options | — | 74,350 | ||||||
| Repayments on COVID loans | (87,052 | ) | (173,313 | ) | ||||
| Net cash provided by financing activities | 6,730,348 | 14,404,378 | ||||||
| Effects of foreign exchange rates on cash flows | (86,257 | ) | (460,980 | ) | ||||
| Net decrease in cash | (2,749,694 | ) | (9,288,079 | ) | ||||
| Cash at beginning of period | 4,349,837 | 14,590,566 | ||||||
| Cash at end of period | $ | 1,600,143 | $ | 5,302,487 | ||||
| SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION: | ||||||||
| Interest cash paid | $ | — | $ | — | ||||
| Income taxes paid | $ | — | $ | — | ||||
| NON-CASH INVESTING AND FINANCING ACTIVITIES: | ||||||||
| Conversion of Preferred Stock, Series F Convertible to Common Stock | $ | 7,305 | $ | 5,950 | ||||
| Issuance of Restricted Common Stock | $ | 388 | $ | 316 | ||||
| Dividends on Series F Preferred Stock | $ | 170,277 | $ | 94,694 | ||||
| Deemed dividend on Series F Preferred stock and warrant | $ | 4,910,894 | $ | — | ||||
| Stock consideration for senseFly Acquisition | $ | — | $ | 3,000,000 | ||||
| Settlement of Common Stock from contingent liability related to Measure | $ | — | $ | 2,812,500 | ||||
See accompanying notes to condensed consolidated financial statements.
