UAVS on NYSE

AgEagle Aerial Systems Inc.

AgEagle Aerial Systems Inc. is an American aircraft company that raised $14.6 million in 2024 (SEC Form D).2 It is headquartered in Neodesha, United States.2 Its shares trade on NYSE under the symbol UAVS.2

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Last updated Oct 21, 2026.

Overview

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  • TickerUAVS on NYSE2
  • IndustryAircraft2
  • HeadquartersNeodesha, United States2
  • Incorporated inNV3
  • Business address505 Century Parkway, Suite 250, Allen, Tx 750133
  • Filer categoryNon-accelerated filer, Smaller reporting company3
  • Legal formCorporation2
  • LEI549300WMGVXDI1SR6C122
  • StatusActive2
  • LEI statusLapsed (not renewed)2
  • Registered addressC/O CSC Services Of Nevada, Inc., 89119 Las Vegas, United States2
  • Registered withBusiness Center (Secretary of State), E0199662015-72

AgEagle™ Aerial Systems Inc. (“AgEagle” or the “Company”, "EagleNXT",“we”, “our” or “us”), through its wholly owned subsidiaries, is actively engaged in designing and delivering best-in-class drones, sensors and software that solve important problems for our 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, the Company is earning distinction as a globally respected market leader offering customer-centric, advanced, autonomous uncrewed aerial systems (“UAS”) which drive revenue at the intersection of flight hardware, sensors and software for industries that include military/defense, public safety, surveying/mapping, agriculture, and utilities/engineering, among others. AgEagle has also achieved numerous regulatory fir…4 From its latest annual report

Financials

From the company’s reports to the SEC. Every number links to the filing it came from.

Key numbers, fiscal 2025

51.8%Gross margin5
-115.0%Operating margin5
-41.2%Net margin5
-4.3%Revenue growth, 20255
-14.8%Return on equity5
0.01×Debt to equity5
-$10.0MFree cash flow5

What sells

Revenue by product, business segment and region, as the company reports it to the SEC.

Business segments

Drones brought in 61% of the revenue AgEagle Aerial Systems Inc. broke down this way in fiscal 2025.

  1. Drones$7.9M561%up 23% from 2024
  2. Sensors$5.0M539%down 26% from 2024
Business segments by year
Business segments20242025
Drones$6.4M$7.9M
Sensors$6.7M$5.0M

Regions

EMEA brought in 60% of the revenue AgEagle Aerial Systems Inc. broke down this way in fiscal 2025.

  1. EMEA$7.7M560%up 24% from 2024
  2. North America$2.0M515%down 52% from 2024
  3. Asia Pacific$1.6M513%down 2% from 2024
  4. Latin America$1.4M511%up 7% from 2024
  5. Other Geographic Areas$165.9K51%down 13% from 2024
Regions by year
Regions20242025
EMEA$6.2M$7.7M
North America$4.1M$2.0M
Asia Pacific$1.6M$1.6M
Latin America$1.3M$1.4M
Other Geographic Areas$191.7K$165.9K

Where the money goes

Where each dollar of revenue went, fiscal 2025

  • Cost of revenue48¢$6.2M
  • Research and development28¢$3.6M
  • Other costs24¢$3.0M

Out of $12.8M in revenue.5 The company lost money this year.

Financial statements

Revenue6789105$12.8M in 2025+4218% since 2019
0$5.0M$10.0M$15.0M$20.0M2019: $296.7K$296.7K20192020: $1.3M$1.3M2020+333%2021: $9.8M$9.8M2021+659%2022: $19.1M$19.1M2022+96%2023: $13.7M$13.7M2023−28%2024: $13.4M$13.4M2024−3%2025: $12.8M$12.8M2025−4%
Gross profit6789105$6.6M in 2025+6917% since 2019
0$2.5M$5.0M$7.5M$10.0M2019: $94.6K$94.6K20192020: $573.7K$573.7K2020+506%2021: $4.3M$4.3M2021+642%2022: $8.2M$8.2M2022+93%2023: $5.5M$5.5M2023−34%2024: $6.3M$6.3M2024+15%2025: $6.6M$6.6M2025+6%
Operating income6789105-$14.7M in 2025+484% since 2019
-$80.0M-$60.0M-$40.0M-$20.0M02019: -$2.5M-$2.5M20192020: -$4.9M-$4.9M2020+96%2021: -$30.3M-$30.3M2021+514%2022: -$64.3M-$64.3M2022+112%2023: -$39.2M-$39.2M2023−39%2024: -$12.6M-$12.6M2024−68%2025: -$14.7M-$14.7M2025+17%
Net income6789105-$5.3M in 2025+109% since 2019
-$60.0M-$40.0M-$20.0M02019: -$2.5M-$2.5M20192020: -$4.9M-$4.9M2020+96%2021: -$30.1M-$30.1M2021+510%2022: -$58.3M-$58.3M2022+93%2023: -$42.4M-$42.4M2023−27%2024: -$35.0M-$35.0M2024−17%2025: -$5.3M-$5.3M2025−85%

Every line of the income statement as filed: the last 2 fiscal years, latest first.5

Period ending2025-12-312024-12-31
Revenues$12.8M$13.4M
Cost of sales$6.2M$7.1M
Gross profit$6.6M$6.3M
General and administrative$8.9M$9.6M
Research and development$3.6M$4.0M
Sales and marketing$3.1M$2.4M
Asset Impairment Charges$5.8M$2.9M
Total operating expenses$21.4M$18.9M
Loss from operations-$14.7M-$12.6M
Interest expense-$9.6K-$8.4M
Loss on debt extinguishment-$125.2K-$1.6M
Loss on equity financing$0-$15.3M
Gain on change in fair value of warrant liabilities$8.6M$3.1M
Gain (loss) on disposal of fixed assets-$1.4K$13.5K
Other income (expense), net$1.0M-$247.8K
Total other income (expense), net$9.5M-$22.4M
Net loss before provision for income taxes-$5.3M-$35.0M
Provision for income taxes$0$0
Net loss-$5.3M-$35.0M
Accrued dividends on Series F Preferred Stock-$201.9K-$234.4K
Deemed dividends on Series F and G Preferred Stock and Warrants-$7.6M-$17.8M
Net loss attributable to common stockholders-$13.1M-$53.0M
Net loss per common share - Basic and Diluted (in dollars per share)-$0.52-$46.24
Weighted average number of shares outstanding during the period Basic and Diluted (in shares)25.1M shares1.1M shares
Amortization of unrecognized periodic pension costs$16.0K$10.2K
Foreign currency cumulative translation adjustment$261.5K-$202.9K
Total comprehensive loss, net of tax-$5.0M-$35.2M

Compare AgEagle Aerial Systems Inc. with another company

Corporate structure

AgEagle Aerial Systems Inc. sits at the top of its group. 1 entity, 1 country on record. Switch between the flow chart and the network, and select any entity to see its details.

Major holders of AgEagle Aerial Systems Inc.

  • ALPHA CAPITAL ANSTALT Filed SCHEDULE 13G/A on AgEagle Aerial Systems Inc., latest Aug 3, 2026 (3 filings since Jan 31, 2022)
  • Thomas John Corley Filed SCHEDULE 13G/A on AgEagle Aerial Systems Inc., latest Feb 18, 2025 (4 filings since Oct 30, 2024)
  • SEG Opportunity Fund, LLC Filed SCHEDULE 13G/A on AgEagle Aerial Systems Inc., latest Feb 13, 2025 (2 filings since Oct 29, 2024)
  • Mark Manzo Filed SCHEDULE 13G on AgEagle Aerial Systems Inc., latest Nov 19, 2024
  • Joseph Reda Filed SC 13G/A on AgEagle Aerial Systems Inc., latest Oct 28, 2024 (2 filings since Mar 15, 2024)
  • Garrett Patrick Wilson Filed SCHEDULE 13G/A on AgEagle Aerial Systems Inc., latest Aug 2, 2024 (2 filings since Apr 29, 2024)
  • BlackRock Filed SC 13G on AgEagle Aerial Systems Inc., latest Jul 8, 2022 (2 filings since Feb 4, 2022)
  • AgEagle Aerial Systems Inc. Neodesha, Kansas, United States

Built from parent and subsidiary links from GLEIF, the Global Legal Entity Identifier Foundation (CC0); major holders from Schedules 13D and 13G. Each entity in the chart links to its source.

What it owns

What AgEagle Aerial Systems Inc. reports owning in its annual reports to the SEC: buildings, land and equipment, real estate and locations, investments, intangible assets and inventory, at the end of its latest fiscal year and a year before.

Property and equipment

ItemLatestA year beforeChange
Property and equipment, before depreciation$1.6M5 Dec 31, 2025$1.5M5 Dec 31, 2024+7.9%
Accumulated depreciation$1.3M5 Dec 31, 2025$1.1M5 Dec 31, 2024+23.0%
Property and equipment, net$331.8K5 Dec 31, 2025$455.6K5 Dec 31, 2024−27.2%
Operating-lease assets (leased space)$1.9M5 Dec 31, 2025$2.5M5 Dec 31, 2024−25.6%

Investments

ItemLatestA year beforeChange
Cash and cash equivalents$3.6M10 Dec 31, 2024$819.0K10 Dec 31, 2023+341.3%

Intangibles and goodwill

ItemLatestA year beforeChange
Goodwill$05 Dec 31, 2025$4.5M5 Dec 31, 2024−100.0%
Intangible assets, net (excluding goodwill)$56.9K5 Dec 31, 2025$2.0M5 Dec 31, 2024−97.1%
Finite-lived intangibles, gross$13.3M5 Dec 31, 2025$13.3M5 Dec 31, 20240%
Accumulated amortization$7.0M5 Dec 31, 2025$6.5M5 Dec 31, 2024+8.8%
Finite-lived intangibles, net$56.9K5 Dec 31, 2025$2.0M5 Dec 31, 2024−97.1%

Inventory

ItemLatestA year beforeChange
Inventory, total$5.7M5 Dec 31, 2025$5.5M5 Dec 31, 2024+3.4%
Raw materials$3.8M5 Dec 31, 2025$3.5M5 Dec 31, 2024+8.6%
Work in process$820.4K5 Dec 31, 2025$912.4K5 Dec 31, 2024−10.1%
Finished goods$1.5M5 Dec 31, 2025$1.5M5 Dec 31, 2024−0.3%

Properties, in its own words

As of December 31, 2025, the Company is a party to the following non-cancellable operating leases for manufacturing facilities and office space:

Location · Purpose · Initial Term (months) · Lease Expiration Date

The rest of Item 2

8201 E. 34th Street North

Suite 1307

Wichita, Kansas · Manufacturing Facility & Corporate Headquarters · 36 · October 31, 2026

Route de Genève 38

1033 Cheseaux-sur-Lausanne, Switzerland · Distribution & Assembly Facility & Offices · 60 · April 30, 2028

1300 N. Northlake Way

Seattle, Washington (Subleased) · Offices · 60 · January 30, 2026

As of December 31, 2025, the Company held properties in Wichita, KS, Lausanne, Switzerland; and Seattle, Washington and represent non-cancellable lease obligations assumed by the Company as a result of its 2021 business acquisitions of senseFly S.A., senseFly Inc., Measure Global Inc., and MicaSense, Inc., respectively. The Company intends to relocate its headquarters to Allen, Texas in 2026.

Item 2 of the 10-K filed Mar 31, 2026.4

Leadership

Who has led AgEagle Aerial Systems Inc., and when. Pick a name to see everywhere that person has worked.

Board members and other officers (29)

Named in SEC Form D filings

People the company listed in its private-offering notices.

  • DirectorKelly Anderson named Dec 14, 2022 to Apr 18, 202458
  • DirectorThomas Gardner named Dec 14, 2022 to Apr 18, 202458

Former names

  • EnerJex Resources, Inc.Oct 13, 2006 to Mar 30, 20183
  • MILLENNIUM PLASTICS CORPSep 8, 2000 to Sep 22, 20063
  • MILLENIUM PLASTICS CORPDec 6, 1999 to Feb 16, 20003
  • AURORA CORPAug 30, 1999 to Aug 30, 19993

Timeline

  1. Oct 9, 20268-K Executive or director change59
  2. Aug 14, 20268-K Results of operations60
  3. Jun 18, 20268-K Shareholder vote61
  4. May 15, 20268-K Other events62
  5. Apr 14, 20268-K Entered a material agreement; Other events63
  6. Mar 31, 20268-K Results of operations64
  7. Mar 6, 20268-K Entered a material agreement; Other events65
  8. Feb 6, 20268-K Entered a material agreement66
  9. Jan 26, 20268-K Shareholder vote67
  10. Nov 17, 20258-K Results of operations68
  11. Nov 10, 20258-K Entered a material agreement; Change to shareholders' rights; Bylaws or fiscal year changed69
  12. Nov 6, 20258-K Entered a material agreement; Change to shareholders' rights; Regulation FD disclosure70
  13. Sep 5, 2024New chief executive William Gordon Irby becomes CEO14
  14. Jan 3, 2024New chief executive Grant A. Begley becomes CEO13
  15. Dec 1, 2020New chief executive Michael Drozd becomes CEO15
  16. Aug 7, 2018New chief executive Barrett Mooney becomes CEO17
  17. Apr 5, 2018New chief executive Bret Chilcott becomes CEO16
  18. Feb 23, 2017New chief executive Louis G. Schott becomes CEO18
  19. Jan 7, 2011New chief executive Robert G. Watson becomes CEO19
  20. Aug 1, 2008New chief executive Steve Cochennet becomes CEO20

Calendar

Coming up

  1. Nov 13, 2026Reports results for the quarter ending Sep/202671

When it reported results

  1. Aug 14, 2026Reported quarterly or annual results60
  2. Mar 31, 2026Reported quarterly or annual results64
  3. Nov 17, 2025Reported quarterly or annual results68
  4. Aug 15, 2025Reported quarterly or annual results72
  5. May 16, 2025Reported quarterly or annual results73
  6. Mar 31, 2025Reported quarterly or annual results74
  7. Dec 6, 2022Reported quarterly or annual results75

Upcoming dates from Nasdaq's calendar; past results from the company's 8-K filings (Item 2.02). The full markets calendar

Filings

376 filings to the SEC since October 2021: 6 annual reports, 15 quarterly reports, 92 major events, 128 insider forms, 16 large holders, 6 private raises, 113 other. The latest 20:

  1. Oct 9, 20268-K EDGAR
  2. Sep 15, 20264 EDGAR
  3. Sep 15, 20264 EDGAR
  4. Sep 10, 20264 EDGAR
  5. Sep 1, 20264 EDGAR
  6. Aug 31, 20264 EDGAR
  7. Aug 31, 20264 EDGAR
  8. Aug 21, 20264 EDGAR
  9. Aug 21, 20264 EDGAR
  10. Aug 19, 20264 EDGAR
  11. Aug 14, 20268-K EDGAR
  12. Aug 14, 202610-Q EDGAR
  13. Aug 3, 2026SCHEDULE 13G/A EDGAR
  14. Jun 18, 20268-K EDGAR
  15. Jun 8, 20264 EDGAR
  16. Jun 8, 20264 EDGAR
  17. Jun 3, 20264 EDGAR
  18. May 29, 20264 EDGAR
  19. May 28, 20264 EDGAR
  20. May 27, 20264 EDGAR

The 376 filings since October 2021 can be filtered by form type and year here when JavaScript is on.

Every filing from the last five years, summarized. The full record is on SEC EDGAR.

Insider trades

16 open-market trades by officers, directors and large owners since October 2021: 5 buys and 11 sales. Grants, option exercises and gifts are left out.

DateWhoTradeSharesPriceValueFiling
Sep 11, 2026Begley Grant AChairman of the BoardBuy5,000$0.98$4.9KForm 4
Sep 11, 2026Klavon BrentDirectorBuy5,050$0.99$5.0KForm 4
Sep 3, 2025Begley Grant AChairman of the BoardSale70$1.86$130Form 4
May 22, 2025DAY L BDirectorBuy4,000$0.78$3.1KForm 4
Apr 7, 2025DAY L BDirectorBuy1,000$1.02$1.0KForm 4
Apr 3, 2024Irby William GordonChief Executive OfficerBuy372$0.63$234Form 4
Aug 15, 2022Mooney BarrettChairman and CEOSale35,000$0.75$26.2KForm 4
Aug 15, 2022Fernandez-McGovern Nicole M.Chief Financial OfficerSale75,000$0.75$56.2KForm 4
Jun 21, 2022Mooney BarrettChairman and CEOSale25,000$0.86$21.5KForm 4
May 17, 2022Mooney BarrettChairman and CEOSale25,000$0.77$19.2KForm 4
Apr 12, 2022Mooney BarrettChairman and CEOSale25,000$1.05$26.2KForm 4
Mar 15, 2022Mooney BarrettChairman and CEOSale25,000$0.93$23.2KForm 4
Feb 15, 2022Mooney BarrettChairman and CEOSale25,000$1.04$26.0KForm 4
Jan 11, 2022Mooney BarrettChairman and CEOSale25,000$1.44$36.0KForm 4
Oct 26, 2021Begley Grant AChairman of the BoardSale10,000$2.85$28.5KForm 4
Oct 19, 2021Mooney BarrettChairman and CEOSale5,000$2.95$14.8KForm 4

From Forms 4 filed with the SEC.

Major holders

Investors who own more than 5% of the shares must tell the SEC: a 13D if they may seek to influence the company, a 13G if they hold passively.

  • ALPHA CAPITAL ANSTALTSCHEDULE 13G/A, 3 filings Jan 31, 2022 to Aug 3, 202676
  • Thomas John CorleySCHEDULE 13G/A, 4 filings Oct 30, 2024 to Feb 18, 202577
  • SEG Opportunity Fund, LLCSCHEDULE 13G/A, 2 filings Oct 29, 2024 to Feb 13, 202578
  • Mark ManzoSCHEDULE 13G, 1 filing Nov 19, 202479
  • Joseph RedaSC 13G/A, 2 filings Mar 15, 2024 to Oct 28, 202480
  • Garrett Patrick WilsonSCHEDULE 13G/A, 2 filings Apr 29, 2024 to Aug 2, 202481
  • BlackRockSC 13G, 2 filings Feb 4, 2022 to Jul 8, 202282

Executive pay

What the company paid its top executives, from the summary compensation table in its proxy statement. Total pay includes salary, bonus, stock and option awards and other pay, as the company valued them.

YearExecutiveAgeSalaryTotal pay
2025William Irby60$375.0K$574.9K83
2025Alison Burgett48$231.2K$320.1K83
2025Brent Pope55$220.5K$312.0K83
2024Chief Executive Officer$329.3K$401.1K83
2024Chief Operating Officer$210.5K$224.7K83

Money raised

Private offerings the company reported to the SEC on Form D.

  1. Apr 17, 2024Raised $1.1 million in a private offering of equity Form D: 1 investor so far Form D
  2. Mar 7, 2024Raised $1 million in a private offering of equity Form D: 8 investors so far Form D
  3. Nov 24, 2023Raised $2 million in a private offering of equity Form D: 12 investors so far Form D
  4. Jun 5, 2023Raised $4.2 million in a private offering of securities Form D: 3 investors so far Form D
  5. Mar 10, 2023Raised $3 million in a private offering of equity Form D: 1 investor so far Form D
  6. Dec 6, 2022Raised $3.4 million in a private offering of debt Form D: 1 investor so far Form D

Held by these funds

The largest holders among investment managers' 13F reports for the quarter ending Jun 30, 2026, the top 25 of 56. Change is in shares since the quarter before.

FundSharesValueShare of the fundChange
Vanguard Capital Management LLC2,478,584$2.2M0.0%+658,409
UBS Group AG629,767$561.1K0.0%+341,019
BlackRock, Inc.582,322$519.0K0.0%+203,523
Geode Capital Management, LLC572,717$510.6K0.0%+70,181
Vanguard Fiduciary Trust Co345,156$307.5K0.0%+103,169
Calamos Wealth Management LLC301,671$268.9K0.0%−1
State Street Corp210,342$187.5K0.0%+59,600
Northern Trust Corp132,755$118.3K0.0%+36,875
Kingsbury Capital Investment Advisors LLC125,579$111.9K0.1%−33,588
Kmt Wealth Management, LLC125,579$111.9K0.1%New
Goldman Sachs Group Inc92,853$82.8K0.0%+76,206
Centiva Capital, LP86,173$76.8K0.0%+5,207
Raymond James Financial Inc65,366$58.3K0.0%+48,865
XTX Topco Ltd56,720$50.6K0.0%New
Millennium Management LLC52,280$46.6K0.0%New
Bridgeway Capital Management, LLC50,500$45.0K0.0%No change
Hughes Financial Services, LLC41,024$36.6K0.0%+9,090
Connective Capital Management, LLC36,508$32.5K0.0%New
Marshall Wace, Llp34,877$31.0K0.0%New
Osaic Holdings, Inc.34,821$31.0K0.0%+9,999
Two Sigma Securities, LLC25,590$22.8K0.0%−10,497
J.w. Cole Advisors, Inc.25,000$22.3K0.0%New
StoneX Group Inc.20,106$19.1K0.0%New
R Squared Ltd20,802$18.5K0.0%New
Bank of New York Mellon Corp17,411$15.5K0.0%New

13F reports cover disclosed long positions in U.S. stocks only.

SEC filer profile

How AgEagle Aerial Systems Inc. is registered with the Securities and Exchange Commission, from its EDGAR record and the cover page of its latest annual report.

  • Name on EDGARAgEagle Aerial Systems Inc.1
  • CIK0000008504
  • Employer ID (EIN)88-04222424
  • Filer statusNon-accelerated filer not an emerging growth company; a smaller reporting company; not a shell company4
  • Incorporated inNevada4
  • Fiscal year endsDecember 311
  • Industry code (SIC)3721 Aircraft1
  • SEC reviewing officeOffice of Manufacturing, Division of Corporation Finance1
  • Business address505 Century Parkway, Suite 250, Allen, TX 750131
  • Phone(620) 325-63631
  • Shares outstanding62,905,706 as of Aug 14, 202612
  • Public float$21.8M as of Jun 30, 20254
  • AuditorGrassi & Co., CPAs, P.C., Glastonbury, Connecticut PCAOB ID 606; no auditor attestation of internal control over financial reporting4
  • On EDGAR sinceAug 30, 19991
  • Filings1,157 in all: 8-K (279), 4 (236), CORRESP (57), 10-Q (55), 3 (42), UPLOAD (38), 424B3 (28), 10QSB (26)1
    All 65 form types

    EFFECT (26), DEF 14A (22), SC 13D/A (21), SC 13G/A (21), S-1/A (20), SC 13G (19), 10-K (18), NT 10-Q (17), 424B5 (15), 8-K/A (14), D (13), DEFA14A (13), PRE 14A (13), 4/A (12), NT 10-K (12), S-1 (11), S-3 (11), S-3/A (10), 10KSB (8), 425 (8), S-8 (8), 10-Q/A (6), S-4/A (6), SCHEDULE 13G/A (6), 10-K/A (5), PRER14A (5), SC 13D (5), 424B4 (4), RW (4), 10QSB/A (3), POS AM (3), SB-2 (3), SCHEDULE 13G (3), 424B7 (2), 8-A12B (2), ARS (2), DEFM14A (2), RW WD (2), S-4 (2), SB-2/A (2), 10-KT (1), 10KSB/A (1), 10SB12G (1), 15-12B (1), 25-NSE (1), 3/A (1), 424B2 (1), AW (1), CERTNAS (1), CERTNYS (1), CT ORDER (1), D/A (1), DEFR14A (1), POS EX (1), PREM14A (1), REGDEX (1), S-1MEF (1)

  • Latest filingsAnnual report (10-K) Mar 31, 2026
    Quarterly report (10-Q) Aug 14, 2026
    Proxy statement (DEF 14A) Apr 30, 2026
    Latest 8-K (8-K) Oct 9, 2026

Securities registered for trading

ClassSymbolExchange
Common Stock, par value $0.001 per shareUAVSNYSE American

From the cover page of the 10-K filed Mar 31, 2026 (Section 12(b) of the Exchange Act).4

Risk factors and legal proceedings

The risks AgEagle Aerial Systems Inc. names in Item 1A of its 10-K filed Mar 31, 2026: 39 risks under these headings, as written.4

  • We have a history of operating losses and expect to incur significant additional operating expenses.
  • We will need additional funding and may be unable to raise capital when needed, which would force us to delay, curtail or eliminate one or more of our research and development programs or commercialization efforts.
  • We operate in evolving markets, which makes it difficult to evaluate our business and future prospects.
  • Product development is a long, expensive, and uncertain process.
  • Successful technical development of our products does not guarantee successful commercialization.
  • We face competition from other companies, many of which have substantially greater resources.
  • If we fail to protect our intellectual property rights, we could lose our ability to compete in the marketplace.
  • Other companies may claim that we infringe their intellectual property, which could materially increase our costs and harm our ability to generate future revenue and profit.
  • The nature of our business involves significant risks and uncertainties that may not be covered by insurance or indemnification.
  • We may incur substantial product liability claims relating to our products.
  • We maintain cash deposits in excess of federally insured limits. Adverse developments affecting financial institutions, including bank failures, could adversely affect our liquidity and financial performance.
  • If our subcontractors or suppliers fail to perform their contractual obligations, our performance and reputation as a contractor and our ability to obtain future business could suffer.
The other 27 risks
  • For certain of the components included in our products, there are a limited number of suppliers we can rely upon. If we are unable to obtain these components when needed, we could experience delays in the manufacturing of our products and our financial results could be adversely affected.
  • If we are unable to recruit and retain key management, technical and sales personnel, our business would be negatively affected.
  • If our proposed marketing efforts are unsuccessful, we may not earn enough revenue to become profitable.
  • Our operating margins may be negatively impacted by a reduction in sales or an increase in the cost of products sold.
  • We face a significant risk of failure because we cannot accurately forecast our future revenues and operating results.
  • Rapid technological changes may adversely affect the market acceptance of our products and could adversely affect our business, financial condition, and results of operations.
  • Failure to obtain necessary regulatory approvals from the FAA or other governmental agencies, or limitations put on the use of small UAS in response to public privacy concerns, may prevent us from expanding the sales of our drone solutions to commercial and industrial customers in the United States.
  • We may pursue additional strategic transactions in the future, which could be difficult to implement, disrupt our business or change our business profile significantly.
  • Cyberattacks and other security breaches of network or information technology security could have an adverse effect on our business.
  • We may not be successful in our artificial intelligence initiatives, which could adversely affect our business, reputation, or financial results.
  • The preparation of our financial statements involves use of estimates, judgments and assumptions, and our financial statements may be materially affected if our estimates prove to be inaccurate.
  • Our results of operations can be significantly affected by foreign currency fluctuations and regulations.
  • Our results could be adversely affected by natural disasters, public health crises, political crises, or other catastrophic events.
  • International trade disruptions or disputes could adversely affect our business and operating results.
  • We are subject to the Foreign Corrupt Practices Act (the “FCPA”), which generally prohibits companies and their intermediaries from making payments to non-U.S. government officials for the purpose of obtaining or retaining business or securing any other improper advantage.
  • We are subject to governmental export and import controls that could impair our ability to compete in international markets due to licensing requirements and subject us to liability if we are not in compliance with applicable laws.
  • Worldwide and domestic economic trends and financial market conditions, including an economic decline in the industries we serve, may adversely affect our operating performance.
  • Our senior management and key employees are important to our customer relationships and overall business.
  • We indemnify our officers and directors against liability to us and our security holders, and such indemnification could increase our operating costs.
  • Risks Associated with Our Securities
  • Our executive officers and directors may sell shares of their stock, and these sales could adversely affect our stock price.
  • The market price of our securities may be volatile and may fluctuate in a way that is disproportionate to our operating performance.
  • We do not intend to pay cash dividends. As a result, capital appreciation, if any, will be your sole source of gain.
  • Provisions in our articles of incorporation, our by-laws and Nevada law might discourage, delay or prevent a change in control of our Company or changes in our management and, therefore, depress the trading price of our Common Stock.
  • We incur significant costs as a result of operating as a public reporting company, and our management is required to devote substantial time to regulatory compliance initiatives.
  • We currently have outstanding, and we may in the future issue, instruments which are convertible into shares of Common Stock, which will result in additional dilution to our shareholders.
  • Financial Industry Regulatory Authority, Inc. ("FINRA") sales practice requirements may limit a stockholder’s ability to buy and sell our securities.
  • If securities or industry analysts do not publish research or reports about our business, if they adversely change their recommendations regarding our shares or if our results of operations do not meet their expectations, the price of our securities and trading volume could decline.

Legal proceedings

From time to time, we may become involved in lawsuits and legal proceedings which arise in the ordinary course of business. However, litigation is subject to inherent uncertainties, and an adverse result in these or other matters may arise from time to time that may harm our business. Although we currently maintain liability insurance coverage intended to cover professional liability and certain other claims, we cannot assure that our insurance coverage will be adequate to cover liabilities arising out of claims asserted against us in the future where the outcomes of such claims are unfavorable to us. Liabilities in excess of our insurance coverage, including coverage for professional liability and certain other claims, could have a material adverse effect on our business, financial condition and results of operations.

The opening of Item 3, Legal Proceedings.4

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