AgEagle Aerial Systems Reports Decreased Revenue and Net Loss for Nine Months Ended September 30, 2024

AgEagle Aerial Systems Inc. reported its financial results for the nine months ended September 30, 2024, revealing a decrease in revenue and net loss compared to the same period in 2023. Total revenues for the nine months were $10.57 million, down 2.3% from $10.82 million in 2023. The decline was primarily attributed to a decrease in eBee drone product sales and SaaS subscription services, partially offset by an increase in sensor sales.

For the third quarter of 2024, revenues were $3.28 million, a 6% decrease from $3.48 million in Q3 2023. This decline was linked to a significant drop in sensor sales, which was expected due to seasonality, although eBee drone product revenues increased. Gross profit for the nine months ended September 30, 2024, was $5.14 million, reflecting a 21.8% increase from $4.22 million in the prior year, with a gross margin improvement from 39% to 49%.

Operating expenses for the nine months decreased by 38% to $11.94 million, driven by reductions in general and administrative expenses and research and development costs. The company reported a net loss of $12.71 million for the nine months, a 29.1% improvement from a net loss of $17.91 million in the same period last year. The net loss for Q3 2024 was $3.46 million, down 56.9% from $8.02 million in Q3 2023.

As of September 30, 2024, AgEagle's cash balance was $265,126, a significant decrease from $819,024 at the end of 2023. The company reported a working capital deficit of $4.54 million and highlighted the need for additional liquidity to sustain operations over the next twelve months, raising concerns about its ability to continue as a going concern.

Strategically, AgEagle has undergone executive changes, appointing Bill Irby as CEO in April 2024, succeeding Grant Begley. The company is also focusing on enhancing its market position in the defense and security sectors while continuing to innovate in agriculture and other commercial markets. Additionally, AgEagle is evaluating strategies for obtaining additional funding and restructuring operations to improve revenue and reduce expenses.

The company identified a material weakness in its internal controls related to the computation of net loss attributable to common stockholders, which resulted in an understatement of earnings per share. AgEagle has engaged an external consultant to assist with accounting for significant transactions and improve its financial reporting processes.