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AgEagle(UAVS) - 2024 Q4 - Annual Report
UAVSAgEagle(UAVS)2025-03-31 16:17

Company Transition and Acquisitions - AgEagle has transitioned from manufacturing fixed-wing farm drones to offering a full-stack drone solution, culminating in the acquisition of three market-leading companies in 2021[17]. - AgEagle has integrated its acquisitions into a single global company focused on enhancing autonomous flight performance[17]. - The company acquired MicaSense, Measure Global, and senseFly for a total of 90million,enhancingitsproductofferingsandmarketposition[55][56][57][58].ProductDevelopmentandInnovations−TheeBeelineofprofessionaldroneshasloggedover500,000flighthoursandmorethanonemillionsuccessfulmissionsoverthepastdecade[26].−TheeBeeTACwasthefirstdroneapprovedfortheU.S.DepartmentofDefense′sBlueUASClearedList,allowingimmediateprocurementwithoutawaiver[26].−TheeBeeXhasachievedBVLOSoperationspermissioninBrazilandhasbeenapprovedforOOPandBVLOSoperationsinCanada[27].−TheeBeeVISION,launchedinDecember2022,hasbeensuccessfullytestedbyEuropeanArmedForcesandisnowincommercialproduction[29].−TheAltum−PTsensor,launchedinearly2022,offerstwicethespatialresolutionofitspredecessor,enablingdeeperanalyticalcapabilitiesandbroaderapplicationsinagricultureandlandmanagement[34].−TheRedEdge−Psensor,alsolaunchedinearly2022,providesthreetimesthecapturespeedandtwicethespatialresolutionoftheRedEdge−MX,enhancingdatacollectionefficiencyforagriculturalandforestryapplications[39].−AgEagle′seBeeXseriesdronesarethefirstintheirclasstocomplywithCategory3oftheFAA′sOperationsofSmallUncrewedAerialSystemsOverPeoplerules,facilitatingbroadercommercialapplications[48].−ThenewRedEdge−P™dualhigh−resolutiondronesensorwasreleasedinMay2023,enhancingaerialimagingcapabilitieswithacoastalbluebandforvegetationanalysis[190].FinancialPerformance−In2024,totalrevenuewas90 million, enhancing its product offerings and market position[55][56][57][58]. Product Development and Innovations - The eBee line of professional drones has logged over 500,000 flight hours and more than one million successful missions over the past decade[26]. - The eBee TAC was the first drone approved for the U.S. Department of Defense's Blue UAS Cleared List, allowing immediate procurement without a waiver[26]. - The eBee X has achieved BVLOS operations permission in Brazil and has been approved for OOP and BVLOS operations in Canada[27]. - The eBee VISION, launched in December 2022, has been successfully tested by European Armed Forces and is now in commercial production[29]. - The Altum-PT sensor, launched in early 2022, offers twice the spatial resolution of its predecessor, enabling deeper analytical capabilities and broader applications in agriculture and land management[34]. - The RedEdge-P sensor, also launched in early 2022, provides three times the capture speed and twice the spatial resolution of the RedEdge-MX, enhancing data collection efficiency for agricultural and forestry applications[39]. - AgEagle's eBee X series drones are the first in their class to comply with Category 3 of the FAA's Operations of Small Uncrewed Aerial Systems Over People rules, facilitating broader commercial applications[48]. - The new RedEdge-P™ dual high-resolution drone sensor was released in May 2023, enhancing aerial imaging capabilities with a coastal blue band for vegetation analysis[190]. Financial Performance - In 2024, total revenue was 13,392,777, a decrease of approximately 2.5% from 13,741,398in2023[52].−Dronesegmentrevenueincreasedto13,741,398 in 2023[52]. - Drone segment revenue increased to 6,410,305 in 2024 from 6,197,049in2023,reflectingagrowthofabout3.46,197,049 in 2023, reflecting a growth of about 3.4%[52]. - Sensor segment revenue decreased to 6,663,196 in 2024 from 7,100,419in2023,representingadeclineofapproximately6.27,100,419 in 2023, representing a decline of approximately 6.2%[52]. - Software-as-a-Service (SaaS) revenue fell to 319,276 in 2024 from 443,930in2023,adecreaseofabout28.1443,930 in 2023, a decrease of about 28.1%[52]. - The company recorded a goodwill impairment charge of 2.9 million in 2024 and 15.8millionin2023,indicatingchallengesinitsSensorandSaaSreportingunits[205][208].−AsofDecember31,2024,thecompanyhadanaccumulateddeficitofapproximately15.8 million in 2023, indicating challenges in its Sensor and SaaS reporting units[205][208]. - As of December 31, 2024, the company had an accumulated deficit of approximately 218.4 million, with net losses of approximately 35.0millionand35.0 million and 42.4 million for the years ended December 31, 2024 and 2023, respectively[73]. - The company incurred a net loss of approximately 35.0millionduringtheyearendedDecember31,2024,andusedcashinoperatingactivitiesofapproximately35.0 million during the year ended December 31, 2024, and used cash in operating activities of approximately 6.6 million[92]. Market and Industry Insights - The global military drone market is projected to grow from USD 24.25 billion in 2025 to USD 56.69 billion by 2033, with a CAGR of 11.20%[33]. - The Drone Infrastructure Inspection Grant Act proposes 100millioningrantsforusingdomesticallymanufactureddronesforcriticalinfrastructureprojects[32].−Thecompanyfacescompetitionfromlargerfirmswithgreaterresources,whichmayleadtolowercontractpaymentsandadverselyaffectmargins[98].−RegulatoryapprovalsforUASuseintheU.S.areuncertain,whichmaylimitthecompany′sabilitytoexpandsalestocommercialcustomers[114].ResearchandDevelopment−Thecompanyhasmadesignificantinvestmentsinresearchanddevelopmenttocreatenewdronetechnologies,althoughtheexactlevelofcapitalexpendituresremainsuncertain[53].−Thecompanyisfocusedoninnovationandcustomerneeds,establishingthreeCentersofExcellencetodrivethedevelopmentofautonomousroboticsolutions[42].−Thecompanyisexploringnewproductdevelopmentsinthefieldofthermalimagingandsensortechnology,asevidencedbyitsrecentpatentgrantsandapplications[68].IntellectualPropertyandPatents−Thecompanyholdsseveralregisteredtrademarksandpatentsforitsproprietarytechnologies,indicatingastrongfocusonintellectualpropertyprotection[65].−Thecompanyregisteredmultiplepatentsacrossvariouscountries,includingtheUS,Canada,andAustralia,withapplicationnumberssuchas62/160732and15/154719[67].−Thecompanyhasastrongfocusonexpandingitspatentportfolio,withmultipleapplicationsfiledinvariousjurisdictions,includingEuropeandJapan[68].OperationalChallenges−Thecompanyexperiencedsupplydelaysin2023duetohighinterestratesandtighterborrowingrequirements,whichmaycontinueinto2025[51].−Thecompanymayfacechallengesingeneratingsufficientrevenuetoachievesustainableprofitabilityinrapidlyevolvingmarkets[94].−Thecompanyhasahistoryofoperatinglossesandexpectstoincursignificantadditionaloperatingexpensesasitcontinuestoinvestinitsbusinessstrategy[73].−Thecompanymayneedtodelay,curtail,oreliminateoneormoreofitsresearchanddevelopmentprogramsorcommercializationeffortsifitisunabletoraiseadditionalcapital[75].FundingandCapitalStructure−Thecompanyraised100 million in grants for using domestically manufactured drones for critical infrastructure projects[32]. - The company faces competition from larger firms with greater resources, which may lead to lower contract payments and adversely affect margins[98]. - Regulatory approvals for UAS use in the U.S. are uncertain, which may limit the company's ability to expand sales to commercial customers[114]. Research and Development - The company has made significant investments in research and development to create new drone technologies, although the exact level of capital expenditures remains uncertain[53]. - The company is focused on innovation and customer needs, establishing three Centers of Excellence to drive the development of autonomous robotic solutions[42]. - The company is exploring new product developments in the field of thermal imaging and sensor technology, as evidenced by its recent patent grants and applications[68]. Intellectual Property and Patents - The company holds several registered trademarks and patents for its proprietary technologies, indicating a strong focus on intellectual property protection[65]. - The company registered multiple patents across various countries, including the US, Canada, and Australia, with application numbers such as 62/160732 and 15/154719[67]. - The company has a strong focus on expanding its patent portfolio, with multiple applications filed in various jurisdictions, including Europe and Japan[68]. Operational Challenges - The company experienced supply delays in 2023 due to high interest rates and tighter borrowing requirements, which may continue into 2025[51]. - The company may face challenges in generating sufficient revenue to achieve sustainable profitability in rapidly evolving markets[94]. - The company has a history of operating losses and expects to incur significant additional operating expenses as it continues to invest in its business strategy[73]. - The company may need to delay, curtail, or eliminate one or more of its research and development programs or commercialization efforts if it is unable to raise additional capital[75]. Funding and Capital Structure - The company raised 3,000,000 in gross proceeds from the issuance of 3,000 shares of Series F convertible preferred stock on March 10, 2023[76]. - On June 5, 2023, the company raised gross sales proceeds of 4,180,000fromtheissuanceof16,720sharesofcommonstockandwarrantstopurchaseupto25,080sharesofcommonstock[77].−Thecompanyisevaluatingstrategiestoobtainadditionalfundingforfutureoperationsandrestructuringtogrowrevenuesandreduceexpenses[92].CybersecurityandRiskManagement−Thecompanyhasestablishedacybersecurityriskmanagementprogramtoprotectcriticalsystemsandinformation[147].−TheAuditCommitteeoverseestheimplementationofthecybersecurityriskmanagementprogramandreceivesupdatesatleastannually[153].−Cybersecurityrisksremainsignificant,withpotentialunauthorizedaccesstosensitivedata,whichcouldleadtoreputationaldamageandoperationaldisruptions[118].ShareholderandStockInformation−Thecompany′sCommonStockisquotedontheNYSEAmericanunderthesymbol"UAVS,"withsignificantpricefluctuationsobservedinthepasttwofiscalyears[166].−ThehighestclosingpriceforCommonStockinQ12024was4,180,000 from the issuance of 16,720 shares of common stock and warrants to purchase up to 25,080 shares of common stock[77]. - The company is evaluating strategies to obtain additional funding for future operations and restructuring to grow revenues and reduce expenses[92]. Cybersecurity and Risk Management - The company has established a cybersecurity risk management program to protect critical systems and information[147]. - The Audit Committee oversees the implementation of the cybersecurity risk management program and receives updates at least annually[153]. - Cybersecurity risks remain significant, with potential unauthorized access to sensitive data, which could lead to reputational damage and operational disruptions[118]. Shareholder and Stock Information - The company's Common Stock is quoted on the NYSE American under the symbol "UAVS," with significant price fluctuations observed in the past two fiscal years[166]. - The highest closing price for Common Stock in Q1 2024 was 2.25 pre-split, equating to $112.40 post 50:1 reverse stock split[167]. - As of March 31, 2025, the company had approximately 285 individual shareholders of record, with a greater number of beneficial owners[167].