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Balance Sheets | 3 Months Ended
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Mar. 31, 2024
Organization, Consolidation and Presentation of Financial Statements [Abstract] |
Balance Sheets | Note 3 – Balance Sheets Accounts Receivable, Net As of March 31, 2024 and December 31, 2023, accounts receivable, net consist of the following: Schedule of Accounts Receivable, Net
|  | March 31, 2024 |  |  | December 31, 2023 |
Accounts receivable |  | $ | 1,474,539 |  |  | $ | 2,216,235 |
Less: Allowance for credit losses* |  |  | (123,184 | ) |  |  | (158,689 | )
Accounts receivable, net |  | $ | 1,351,355 |  |  | $ | 2,057,546 |
* | Allowance for credit losses - Accounts receivable, net represent amounts billed and due from customers. Substantially all accounts receivable on March 31, 2024 are expected to be collected in 2024.
Inventories, Net As of March 31, 2024 and December 31, 2023, inventories, net consist of the following: Schedule of Inventories
|  | March 31, 2024 |  |  | December 31,2023 |
Raw materials |  | $ | 4,319,010 |  |  | $ | 4,648,966 |
Work in process |  |  | 838,374 |  |  |  | 903,217 |
Finished goods |  |  | 1,653,575 |  |  |  | 1,806,239 |
Gross inventories |  |  | 6,810,959 |  |  |  | 7,358,422 |
Less: Provision for obsolescence |  |  | (372,753 | ) |  |  | (421,442 | )
Inventories, net |  | $ | 6,438,206 |  |  | $ | 6,936,980 |
Prepaids and Other Current Assets As of March 31, 2024 and December 31, 2023, prepaid and other current assets consist of the following: Schedule of Prepaid and Other Current Assets
|  | March 31, 2024 |  |  | December 31, 2023 |
Prepaid inventories |  | $ | 155,482 |  |  | $ | 12,738 |
Prepaid software licenses and annual fees |  |  | 245,442 |  |  |  | 182,510 |
Prepaid rent |  |  | 92,578 |  |  |  | 51,497 |
Prepaid insurance |  |  | 52,847 |  |  |  | 166,210 |
Prepaid value-added tax charges |  |  | 54,552 |  |  |  | 63,209 |
Prepaid other and other current assets |  |  | 119,744 |  |  |  | 72,397 |
Prepaid and other current assets |  | $ | 720,645 |  |  | $ | 548,561 |
AGEAGLE AERIAL SYSTEMS INC. AND SUBSIDIARIES NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS FOR THE THREE MONTHS ENDED MARCH 31, 2024 AND 2023 (UNAUDITED) Note 3 – Balance Sheets-Continued Property and Equipment, Net As of March 31, 2024 and December 31, 2023, property and equipment, net consist of the following: Schedule of Property and Equipment, Net
|  | Estimated |  |  |  |  |  |  |
Type |  | Useful Life (Years) |  |  | March 31, 2024 |  |  | December 31, 2023 |
Leasehold improvements |  |  | 3 |  |  | $ | 89,272 |  |  | $ | 136,382 |
Production tools and equipment |  |  | 5 |  |  |  | 892,527 |  |  |  | 1,003,726 |
Computer and office equipment |  |  | 3-5 |  |  |  | 356,256 |  |  |  | 407,747 |
Furniture |  |  | 5 |  |  |  | 58,843 |  |  |  | 74,420 |
Drone equipment |  |  | 3 |  |  |  | 130,163 |  |  |  | 170,109 |
Total Property and equipment |  |  |  |  |  |  | 1,527,061 |  |  |  | 1,792,384 |
Less: Accumulated depreciation |  |  |  |  |  |  | (860,909 | ) |  |  | (992,492 | )
Total: Property and equipment, net |  |  |  |  |  | $ | 666,152 |  |  | $ | 799,892 |
During the three months ended March 31, 2024 and 2023, depreciation expense was $102,076 and $100,697 respectively, which has been included in general and administrative expenses on the accompanying condensed consolidated statements of operations and comprehensive loss. Intangible Assets, net As of March 31, 2024 and December 31, 2023, intangible assets, net, other than goodwill, consist of following: Schedule of Intangible Assets, Net
Name |  | Estimated Life (Years) |  |  | Balance as of December 31, 2023 |  |  | Additions |  |  | Amortization |  |  | Balance as of March 31, 2024 |
Intellectual property/technology |  |  | 5-7 |  |  | $ | 606,354 |  |  | $ | — |  |  | $ | (37,124 | ) |  | $ | 569,230 |
Customer base |  |  | 3-10 |  |  |  | 999,774 |  |  |  | — |  |  |  | (35,286 | ) |  |  | 964,488 |
Trade names and trademarks |  |  | 5-10 |  |  |  | 427,005 |  |  |  | — |  |  |  | (15,071 | ) |  |  | 411,934 |
Internal use software costs |  |  | 3 |  |  |  | 582,148 |  |  |  | 20,683 |  |  |  | (91,891 | ) |  |  | 510,940 |
Total intangibles assets, net |  |  |  |  |  | $ | 2,615,281 |  |  | $ | 20,683 |  |  | $ | (179,372 | ) |  | $ | 2,456,592 |
As of March 31, 2024, the weighted average remaining amortization period in years is 3.12 years. For the three months ended March 31, 2024 and 2023, amortization expense was $179,372 and $900,641, respectively. AGEAGLE AERIAL SYSTEMS INC. AND SUBSIDIARIES NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS FOR THE THREE MONTHS ENDED MARCH 31, 2024 AND 2023 (UNAUDITED) Note 3 – Balance Sheets-Continued For the following years ending, the future amortization expense consists of the following: Schedule of Intangible Assets Future Amortization Expenses
|  |  | (Rest of year) 2024 |  |  |  | 2025 |  |  |  | 2026 |  |  |  | 2027 |  |  |  | 2028 |  |  |  | Thereafter |  |  |  | Total |
|  | For the Years Ending December 31, |
|  | (rest of year) 2024 |  |  | 2025 |  |  | 2026 |  |  | 2027 |  |  | 2028 |  |  | Thereafter |  |  | Total |
Intellectual property/technology |  | $ | 111,371 |  |  | $ | 148,495 |  |  | $ | 148,495 |  |  | $ | 148,495 |  |  | $ | 12,374 |  |  | $ | — |  |  | $ | 569,230 |
Customer base |  |  | 105,859 |  |  |  | 141,145 |  |  |  | 141,145 |  |  |  | 141,145 |  |  |  | 141,145 |  |  |  | 294,049 |  |  |  | 964,488 |
Trade names and trademarks |  |  | 45,215 |  |  |  | 60,283 |  |  |  | 60,283 |  |  |  | 60,283 |  |  |  | 60,283 |  |  |  | 125,587 |  |  |  | 411,934 |
Internal use software costs |  |  | 281,988 |  |  |  | 198,146 |  |  |  | 30,806 |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 510,940 |
Total intangible assets, net |  | $ | 544,433 |  |  | $ | 548,069 |  |  | $ | 380,729 |  |  | $ | 349,923 |  |  | $ | 213,802 |  |  | $ | 419,636 |  |  | $ | 2,456,592 |
Accrued Liabilities As of March 31, 2024 and December 31, 2023, accrued liabilities consist of the following: Schedule of Accrued Liabilities
|  | March 31, 2024 |  |  | December 31, 2023 |
Accrued purchases |  | $ | — |  |  | $ | 290,126 |
Accrued compensation and related liabilities |  |  | 379,119 |  |  |  | 278,794 |
Provision for warranty expense |  |  | 286,818 |  |  |  | 303,217 |
Accrued dividends |  |  | 573,462 |  |  |  | 512,227 |
Accrued professional fees |  |  | 352,459 |  |  |  | 211,086 |
Accrued interest |  |  | 82,558 |  |  |  | 326,945 |
Other |  |  | 16,224 |  |  |  | 21,957 |
Total accrued liabilities |  | $ | 1,690,640 |  |  | $ | 1,944,352 |

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- Definition The entire disclosure for supplemental balance sheet disclosures, including descriptions and amounts for assets, liabilities, and equity. + References Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef -Topic 210 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/210/tableOfContent + Details
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