AgEagle Aerial Systems Inc 8-K/A, filed Apr 13, 2021

AgEagle Aerial Systems Inc. (UAVS)

8-K/A 2021-04-13 For: 2021-01-26

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Added on April 08, 2026

About this 8-K/A

AgEagle Aerial Systems Inc filed this 8-K/A on April 13, 2021, reporting on events of January 26, 2021.

Items reported

Item 9.01: Financial statements and exhibits

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Nevada	001-36492	88-0422242
(State or other jurisdiction of Incorporation)	(Commission File Number)	(I.R.S. Employer Identification No.)

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock, par value $0.01 per share	UAVS	NYSE American

23.1	Consent of WithumSmith+Brown, PC, an independent auditor

23.2	Consent of Salberg & Company, P.A., an independent registered public accounting firm

99.1	Audited Financial Statements of MicaSense as of and for the year ended December 31, 2020

99.2	Audited Financial Statements of MicaSense as of and for the years ended December 31, 2019 and 2018

99.3	Unaudited Pro Forma Condensed Consolidated Financial Information.

	AGEAGLE AERIAL SYSTEMS INC.
	(Registrant)

Date: April 13, 2021
	By:	/s/ Nicole Fernandez-McGovern
		Nicole Fernandez-McGovern
		Chief Financial Officer

Current Assets
Cash	$	934,152
Accounts receivable		239,892
Inventories		707,714
Prepaid expenses		101,990
Total current assets		1,983,748

Deposits		25,000
Equipment and Furniture, net		107,528
Total assets	$	2,116,276

Current Liabilities
Accounts payable	$	281,915
Accrued expenses		266,744
Line of credit		250,000
Customer deposits		35,117
Total current liabilities		833,776

Temporary Equity
Preferred stock, no par value; 12,560,000 shares authorized
Series A-1 convertible preferred stock; 6,560,000 shares designated; 6,551,364 shares issued and outstanding (liquidation preference $2,000,000), respectively		1,932,646
Series A-2 convertible preferred stock; 6,000,000 shares designated; 5,425,621 shares issued and outstanding (liquidation preference $7,400,004), respectively		4,903,801
Total Temporary Equity		6,836,447

Stockholders’ Deficit
Common stock, no par value; 35,000,000 shares authorized; 11,064,148 and 8,997,515 shares issued and outstanding, respectively		470,802
Additional paid-in capital		282,531
Accumulated deficit		(6,307,280	)
Total stockholders’ deficit		(5,553,947	)
Total liabilities, temporary equity and stockholders’ deficit	$	2,116,276

INDEPENDENT AUDITOR’S REPORT	3

FINANCIAL STATEMENTS	4

FOOTNOTES TO FINANCIAL STATEMENTS	9

Revenue
Product Income	$	5,958,714
Other Income		106,831
	$	6,065,545
Cost of Revenue
Product COGS		1,922,998
Other COGS		291,927
Inventory Obsolescence and Shrinkage		58,017
		2,272,942
Gross profit		3,792,603

Operating Expenses
Sales and marketing		933,999
Research and development		1,752,689
General and administrative		1,266,025
Total operating expenses		3,952,713
Loss from operations		(160,110	)
Nonoperational Income and Expense
Nonoperational Income		118
Nonoperational Expense		(7,467	)
Net loss	$	(167,459	)

	Common Stock				Additional					Total
	Number of				Paid-In		Accumulated			Stockholders’
	Shares		Amount		Capital		Deficit			Deficit
Balances as of December 31, 2019		11,064,148	$	470,802	$	282,531	$	(6,139,821	)	$	(5,386,488	)
Net loss								(167,459	)		(167,459	)
Balances as of December 31, 2020		11,064,148	$	470,802	$	282,531	$	(6,307,280	)	$	(5,553,947	)

Cash Flows From Operating Activities
Net loss	$	(167,459	)
Adjustments to reconcile net loss to net cash flows provided for operating activities
Depreciation		22,143
Bad Debts		(13,694	)
Inventory Write Off		4,994
Changes in operating assets and liabilities
Accounts receivable		421,204
Inventories		78,396
Prepaid expenses		37,715
Accounts payable		(179,257	)
Accrued expenses		(17,367	)
Customer deposits		(27,281	)
Net cash provided for operating activities		159,394
Cash Flows From Investing Activities
Purchases of equipment and furniture		(23,870	)
Net cash provided for investing activities		(23,870	)
Cash Flows From Financing Activity
Line of Credit		250,000
Net cash provided for financing activities		250,000
Net change in cash		385,524
Cash, beginning of year		548,628
Cash, end of year	$	934,152
Supplemental Cash Flow Information
Cash paid for interest	$	5,339

Materials Expenses	$	94,399
External Contractor Labor		94,785
Collaborative Agreement		(20,000	)
Employee Labor		1,583,505
	$	1,752,689

	●	Phase 1 (3 months) // Concept Research Stage
	●	Phase 2 (6 – 9 months) // Prototyping, Design Optimization, & Validation
	●	Phase 3 (3 months) // Final Validation, Certification, & Mass Production

	% of Total Receivables
Customer A		13	%
Customer B		13	%
Customer C		12	%
Customer D		10	%

	Sales		% of Total Revenues
APAC	$	1,205,904		20	%
EMEA		2,177,212		36	%
NORAM		1,811,162		30	%
Other		871,267		14	%
	$	6,065,545		100	%

Finished goods	$	218,284
Raw Materials held offsite at Contract Manufacturer		249,789
Raw Materials		239,641
Total Inventory	$	707,714

Computers & Equipment	$	203,228
Furniture & Fixtures		118,912
		322,140
Less: accumulated depreciation		(214,612	)
	$	107,528

Accounts Receivable	$	239,892
Accounts Receivable, related parties	$	—
Allowance		—
	$	239,892

2021	$	185,745
2022		208,663
2023		214,923
2024		221,370
2025		227,443
2026		18,954
	$	1,077,098

Affiliate	Revenues		Purchases		Accounts Receivable		Accounts Payable
senseFly, S.A.		102,312		—		—		—
Parrot Inc.		—		—		—		15,589
	$	102,312	$	—	$	—	$	15,589

Pre-Tax financial loss	$	(167,459	)
Federal tax expense computed at the statutory rate		(43,917	)
Change in valuation allowance		45,226
Federal rate change		—
Permanent and other differences		(1,309	)
Net tax expense	$	—

Deferred Tax Assets
Net operating loss carryforwards	$	1,244,554
Fixed Assets		(20,690	)
Other		2,926
Accrued Bonus		18,769
R&D Credits		134,750
		1,380,309
Less: Valuation allowance		(1,380,309	)

Net deferred tax asset	$	—

Report of Independent Registered Public Accounting Firm	3

Financial Statements	5

Balance Sheets	6

Statements of Operations	7

Statements of Changes in Stockholders’ Deficit	8

Statements of Cash Flows	9

Footnotes to Financial Statements	10

	2019			2018
Current Assets
Cash and cash equivalents	$	548,628		$	812,454
Accounts receivable		474,741			120,905
Accounts receivable, related parties		172,661			9,650
Inventories		786,110			322,891
Prepaid expenses		139,705			127,703
Total current assets		2,121,845			1,393,603

Deposits		25,000			25,000
Inventories not expected to be realized in one year		4,995			4,995
Equipment and Furniture, net		105,800			62,194
Total assets	$	2,257,640		$	1,485,792

Current Liabilities
Accounts payable	$	430,851		$	791,994
Accounts payable, related parties		30,321			216
Accrued expenses		284,111			179,425
Customer deposits		62,398			117,137
Total current liabilities		807,681			1,088,772

Commitments and Contingencies (Note 8)
Temporary Equity
Preferred stock, no par value; 12,560,000 shares authorized
Series A-1 convertible preferred stock; 6,560,000 shares designated; 6,551,364 shares issued and outstanding (liquidation preference $2,000,000), respectively		1,932,646			1,932,646
Series A-2 convertible preferred stock; 6,000,000 shares designated; 5,425,621 shares issued and outstanding (liquidation preference $7,400,004), respectively		4,903,801			4,903,801
Total Temporary Equity		6,836,447			6,836,447

Stockholders’ Deficit
Common stock, no par value; 35,000,000 shares authorized; 11,064,148 and 8,997,515 shares issued and outstanding, at December 31, 2019 and 2018, respectively		470,802			55,497
Additional paid-in capital		282,531			264,773
Accumulated deficit		(6,139,821	)		(6,759,697	)
Total stockholders’ deficit		(5,386,488	)		(6,439,427	)
Total liabilities, temporary and stockholders’ deficit	$	2,257,640		$	1,485,792

	2019			2018
	% of Total			% of Total
	Receivables			Receivables
Customer A		27	%
Customer B		14	%
Customer C				25%
Customer D				15%
Customer E				15%

	2019			2018
Computer equipment	$	194,607		$	116,524
Furniture	$	103,663		$	92,071
	$	298,270		$	208,595
Less: accumulated depreciation	$	(192,470	)	$	(146,401	)
	$	105,800		$	62,194

						Weighted-Average
	Number of			Weighted-Average		Remaining
	Options			5 Price		Contractual Life
Options outstanding at December 31, 2017		1,931,563			0
Options exercised by employees		(20,548	)		0.23
Options forfeited or expired		(190,808	)		0.26
Options outstanding at December 31, 2018		1,720,207			0.27		0.2 years
Options exercised by employees		(317,034	)		0.25
Options terminated in conjunction with Call Notice		(1,356,205	)		0.27
Options forfeited or expired		(46,968	)		0.28
Options outstanding at December 31, 2019		—		$	—		—
Options exercisable at December 31, 2019		—		$	—		—

				Weighted-Average
	Restricted			Grant Date
	Stock			Fair Value
Non-vested restricted stock at December 31, 2017		152,085		$	0.06
Vested		(122,838	)		0.06
Cancelled or expired		(19,498	)		0.06
Non-vested restricted stock at December 31, 2018		9,749			0.06
Vested		(9,749	)		0.06
Cancelled or expired		—			0.06
Non-vested restricted stock at December 31, 2019		—		$	0.06

	At December 31,
	2019			2018
Pre-Tax financial income	$	620		$	(29	)
Federal tax expense computed at the statutory rate		130			(6	)
Change in valuation allowance		(135	)		(35	)
Federal rate change		—			—
Permanent and other differences		5			41
Net tax expense		—			—

2020	$	—
2021		185,745
2022		208,663
2023		214,923
2024		221,370
2025		227,443
2026		18,954
Lease Extension (signed 20 April 2020)	$	1,077,098
	$	1,228,854

	AgEagle Aerial									AgEagle Aerial
	Systems Inc.									Systems Inc.
	And Subsidiaries		MicaSense, Inc.		Pro Forma					And Subsidiaries
	Historical		Historical		Adjustments			Note 4		Pro Forma

ASSETS
CURRENT ASSETS:
Cash	$	23,940,333	$	934,152	($	13,875,394	)		(A)	$	10,999,091
Accounts receivable		—		239,892		—					239,892
Inventories, net		135,647		707,714		—					843,361
Prepaid and other current assets		122,011		101,990		—					224,001
Notes receivable		600,000		—		—					600,000
Total current assets		24,797,991		1,983,748		(13,875,394	)				12,906,345

Property and equipment, net		122,589		107,528		—					230,117
Right of use asset		257,363		—		—					257,363
Intangible assets, net		440,527		—		3,133,141			(B)		3,573,668
Goodwill		3,108,000		—		17,755,867			(B)		20,863,867
Other assets		—		25,000		—					25,000
Total assets	$	28,726,470	$	2,116,276	$	7,013,614				$	37,856,360

LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Accounts payable	$	159,812	$	281,915		—				$	441,727
Accrued expenses		1,844,825		266,744		(59,389	)		(A)		2,052,180
Contract liabilities and customer deposits		2,302		35,117		—					37,419
Current portion of lease liability		85,895		—		—					85,895
Current portion of promissory note		89,533		—		—					89,533
Line of credit		—		250,000		(250,000	)		(A)		—
Total current liabilities		2,182,367		833,776		(309,389	)				2,706,754

Long term portion of lease liability		171,468		—		—					171,468
Long term portion of promissory note		17,906		—		—					17,906
Total Liabilities		2,371,741		833,776		(309,389	)				2,896,128

STOCKHOLDERS' EQUITY:
Total stockholders' equity		26,354,729		1,282,500		7,323,003			(A)(B)(C)		34,960,232
Total liabilities and stockholders' equity	$	28,726,470	$	2,116,276	$	7,013,614				$	37,856,360

	AgEagle Aerial										AgEagle Aerial
	Systems, Inc.										Systems, Inc.
	And Subsidiaries			MicaSense, Inc.			Pro Forma				And Subsidiaries
	Historical			Historical			Adjustments		Note 4		Pro Forma

Revenues		1,285,383			6,065,545			—				7,350,928
Cost of sales		711,650			2,272,942			—				2,984,592
Gross Profit		573,733			3,792,603			—				4,366,336

Operating Expenses:
Selling expenses		40,003			—			—				40,003
General and administrative		2,732,274			1,266,025			—				3,998,299
Professional fees		2,703,371			—			—				2,703,371
Research and development		29,392			1,752,689			—				1,782,081
Sales and marketing		—			933,999			—				933,999
Total Operating Expenses		5,505,040			3,952,713			—				9,457,753
Loss from Operations		(4,931,307	)		(160,110	)		—				(5,091,417	)

Other Expenses:
Loss on disposal of fixed assets		(594	)		(2,128	)		2,128		(C)		(594	)
Interest expense, net		(549	)		(5,221	)		5,221		(C)		(549	)
Total Other Expenses		(1,143	)		(7,349	)		7,349				(1,143	)
Loss Before Income Taxes		(4,932,450	)		(167,459	)		7,349				(5,092,560	)
Provision for income taxes		—			—			—				—
Net Loss	($	4,932,450	)	($	167,459	)	$	7,349			($	5,092,560	)
Deemed dividends on redemption of Series D Preferred Stock		(3,763,591	)		—			—				(3,763,591	)
Deemed dividends on Series C Preferred Stock and Series D warrants		(4,050,838	)		—			—				(4,050,838	)
Deemed dividends on issuance and repurchase of Series E Preferred Stock		(1,227,120	)		—			—				(1,227,120	)
Series D Preferred stock dividends		(69,778	)		—			—				(69,778	)

Net Loss Available to Common Stockholders		(14,043,777	)		(167,459	)		7,349				(14,203,887	)

Net Loss Per Common Share - Basic and Diluted	$	(0.35	)	$	—		$	—			$	(0.35	)

Weighted Average Number of Shares Outstanding During the Period -- Basic and Diluted		40,688,019			—			—				40,688,019

Calculation of Goodwill:
Net purchase price	$	22,301,446

Plus fair value of liabilities assumed:
Deferred revenue		40,812
Fair value of liabilities assumed	$	40,812

Less fair value of assets acquired:
Cash & short-term investments		885,272
Other tangible assets		542,978
Identifiable intangibles		3,133,141

Fair value of assets acquired	$	4,520,579

Net nonoperating assets		25,000
Goodwill	$	17,755,867

(A)	Adjustments to pay the sellers in the transaction and remove liabilities as per the purchase agreement upon closing:
	Cash paid to sellers per the purchase agreement	$	12,837,931
	Cash paid to remove debt and accrued interest associated with MicaSense per the purchase agreement		250,970
	Cash paid for transaction expenses per the purchase agreement		786,493
		$	13,875,394

(B)	Adjustments to record intangibles and goodwill per valuation report of MicaSense as part of purchase price accounting:
	To record intangibles as identified per valuation report of MicaSense	$	3,133,141
	To record goodwill as identified per valuation report of MicaSense		17,755,867

(C)	Adjustments to MicaSense's existing interest expense and other expense related to debt and other assets eliminated at closing:
	To remove interest expense related to debt	$	5,221
	To remove other expense		2,128