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Balance Sheets
 9 Months Ended
Sep. 30, 2024
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Balance Sheets

Note 3 – Balance Sheets

 

Accounts Receivable, Net

 

As of September 30, 2024 and December 31, 2023, accounts receivable, net consist of the following:

 Schedule of Accounts Receivable, Net

   September 30, 2024   December 31, 2023 
Accounts receivable  $2,156,425   $2,216,235 
Less: Allowance for credit losses*   —    (158,689)
Accounts receivable, net  $2,156,425   $2,057,546 

 

* Allowance for credit losses - Accounts receivable, net represent amounts billed and due from customers. Substantially all accounts receivable on September 30, 2024 are expected to be collected in 2024.

 

Inventories, Net

 

As of September 30, 2024 and December 31, 2023, inventories, net consist of the following:

 

   September 30, 2024   December 31, 2023 
Raw materials  $3,695,961   $4,648,966 
Work in process   957,346    903,217 
Finished goods   1,629,947    1,806,239 
Gross inventories   6,283,254    7,358,422 
Less: Provision for obsolescence   (397,896)   (421,442)
Inventories, net  $5,885,358   $6,936,980 

 

Prepaid and Other Current Assets

 

As of September 30, 2024 and December 31, 2023, prepaid and other current assets consist of the following:

 

   September 30, 2024   December 31, 2023 
Prepaid inventories  $125,801   $12,738 
Prepaid software licenses and annual fees   113,858    182,510 
Prepaid rent   48,993    51,497 
Prepaid insurance   74,374    166,210 
Prepaid value-added tax charges   98,512    63,209 
Prepaid other and other current assets   50,945    72,397 
Prepaid and other current assets  $512,483   $548,561 

 

 

AGEAGLE AERIAL SYSTEMS INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2024 AND 2023

(UNAUDITED)

 

Note 3 – Balance Sheets-Continued

 

Property and Equipment, Net

 

As of September 30, 2024 and December 31, 2023, property and equipment, net consist of the following:

 

Type 

Useful Life

(Years)

   September 30, 2024   December 31, 2023 
   Estimated         
Type 

Useful Life

(Years)

   September 30, 2024   December 31, 2023 
Leasehold improvements   3   $89,272   $136,382 
Production tools and equipment   5    912,052    1,003,726 
Computer and office equipment   3-5    376,863    407,747 
Furniture   5    59,712    74,420 
Drone equipment   3    130,163    170,109 
Total property and equipment        1,568,062    1,792,384 
Less: Accumulated depreciation        (1,023,134)   (992,492)
Total Property and equipment, net       $544,928   $799,892 

 

During the three months ended September 30, 2024 and 2023, depreciation expense was $83,315 and $93,614 respectively, for the nine months ended September 30, 2024 and 2023, depreciation expense was $269,642 and $293,538, 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 September 30, 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
September 30,
2024		 
Intellectual property/technology   5-7   $          606,354   $—   $(111,371)  $           494,983 
Customer base   3-10    999,774    —    (105,858)   893,916 
Trade names and trademarks   5-10    427,005    —    (45,212)   381,793 
Internal use software costs   3    582,148    72,102    (283,465)   370,785 
Total intangibles assets, net       $2,615,281   $72,102   $(545,906)  $2,141,477 

 

As of September 30, 2024, the weighted average remaining amortization period in years is 2.59 years. For the three and nine months ended September 30, 2024 and 2023, amortization expense was $184,656 and $919,774, respectively and $545,906 and $2,734,106, respectively.

 

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  $     37,124   $148,495   $148,495   $148,495   $12,374   $—   $494,983 
Customer base   35,286    141,145    141,145    141,145    141,145    294,050    893,916 
Trade names and trademarks   15,071    60,283    60,283    60,283    60,283    125,590    381,793 
Internal use software costs   97,061    215,286    48,523    9,915    —    —    370,785 
Total intangible assets, net  $184,542   $565,209   $398,446   $359,838   $213,802   $419,640   $2,141,477 

 

 

AGEAGLE AERIAL SYSTEMS INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2024 AND 2023

(UNAUDITED)

 

Note 3 – Balance Sheets-Continued

 

Accrued Liabilities

 

As of September 30, 2024 and December 31, 2023, accrued liabilities consist of the following:

 

   September 30, 2024   December 31, 2023 
Accrued purchases  $—   $290,126 
Accrued compensation and related liabilities   724,168    278,794 
Provision for warranty expense   308,216    303,217 
Accrued dividends   671,089    512,227 
Accrued professional fees   180,852    211,086 
Accrued interest   108,446    326,945 
Other   21,456    21,957 
Total accrued liabilities  $2,014,227   $1,944,352