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Leases

12 Months Ended

Dec. 31, 2024

Note 12 – Leases

The Company has an operating lease in Wichita, Kansas, which serves as its corporate offices. The lease commencement date was November 1, 2023, and will expire on October 31, 2025, unless sooner terminated or extended. The estimated cash rent payments due through the expiration of this operating lease total $146,674.

As a result of the MicaSense Acquisition, the Company assumed an operating lease for office space in Seattle, Washington, that expires in January 2026 with a 3% per year increase, and two months of abated rent for December 2020 and January 2021. The estimated cash rent payments due through the expiration of this operating lease total approximately $246,396. Starting late 2022, the Company engaged in consolidating its business and manufacturing operations from multiple offices to two centralized locations in Wichita, Kansas and Lausanne, Switzerland. In May 2023, the Company executed a sublease agreement for their facility located in Seattle, Washington; however, the Company remains the primary obligor under the original lease.

As a result of the senseFly Acquisition, the Company assumed the operating leases for office spaces in Raleigh, North Carolina and Lausanne, Switzerland. The operating lease in Raleigh expired in July 2023 and the operating lease in Lausanne was set to expire in April 2023. The Company was required to notify the landlord of its intention to not renew the lease in March 2022. The Company neglected to provide such notification, therefore, a five year renewal option was automatically triggered in March 2022. The Lausanne lease is now set to expire in April 2028. The estimated cash rent payments due through the expiration of this operating lease total approximately $2,408,227.

AGEAGLE AERIAL SYSTEMS INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEARS ENDED DECEMBER 31, 2024 AND 2023

Note 12 – Leases – Continued

As of December 31, 2024 and 2023, balance sheet information related to the Company’s operating leases is as follows:

Schedule of Company's operating leases

	Balance Sheet Location	2024		2023
		December 31,
	Balance Sheet Location	2024		2023
Right-of-use assets	Right-of-use assets	$	2,511,572	$	3,525,406
Current portion of operating lease liability	Current portion of lease liabilities	$	921,038	$	901,925
Long-term portion of operating lease liability	Long-term portion of lease liabilities	$	1,646,878	$	2,721,743

For the years ended December 31, 2024 and 2023, operating lease expense payments were $1,054,116 and $1,039,685, respectively, and are included in general and administrative expenses in the consolidated statements of operations and comprehensive loss.

As of December 31, 2024, scheduled future maturities of the Company’s lease liabilities are as follows:

Schedule of Company's lease liabilities

Year Ending December 31,
2025	$	1,048,440
2026		826,617
2027		740,993
2028		185,248
Total future minimum lease payments, undiscounted		2,801,298
Less: Amount representing interest		(233,382	)
Present value of future minimum lease payments		2,567,916
Present value of future minimum lease payments – current		921,038
Present value of future minimum lease payments – long-term	$	1,646,878

As of December 31, 2024 and 2023, the weighted average lease-term and discount rate of the Company’s leases are as follows:

	Years Ended December 31,
Other Information	2024			2023
Weighted-average remaining lease terms (in years)		3.0			3.9
Weighted-average discount rate		6.1	%		6.1	%

For the years ended December 31, 2024 and 2023, supplemental cash flow information related to leases is as follows:

Other Information	2024		2023
	Years Ended December 31,
Other Information	2024		2023
Cash paid for amounts included in the measurement of liabilities: Operating cash flows for operating leases	$	1,060,847	$	1,054,847

AGEAGLE AERIAL SYSTEMS INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEARS ENDED DECEMBER 31, 2024 AND 2023