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Balance Sheets
 3 Months Ended
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:

 

   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:

 

   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:

 

   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:

 

                
   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:

  

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:

 

    (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:

 

   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