Safe Pro Group Inc. reported significant financial developments in its 10-Q filing for the quarter ending June 30, 2024. The company experienced a substantial increase in total revenues, which reached $642,989 for the three months ended June 30, 2024, compared to $103,008 for the same period in 2023, marking a 524.2% increase. For the six months ended June 30, 2024, total revenues were $950,642, up 99.5% from $476,515 in the prior year. This growth was driven primarily by product sales, which rose to $584,083 from $91,446 year-over-year, and service revenues that increased to $58,906 from $11,562.

Despite the revenue growth, the company reported a net loss of $(1,214,923) for the three months ended June 30, 2024, compared to a net loss of $(731,488) in the same period of 2023. For the six months, the net loss was $(2,358,783), up from $(1,214,474) in 2023. The increase in losses was attributed to a significant rise in operating expenses, which totaled $1,307,421 for the second quarter, a 71.1% increase from $764,121 in 2023. For the first half of 2024, operating expenses reached $2,519,521, an 82.2% increase from $1,383,179 in the previous year.

The company's total assets decreased to $3,018,419 as of June 30, 2024, down from $3,430,199 at the end of 2023. Total liabilities increased significantly to $2,487,040, compared to $1,653,841 at the end of the previous fiscal year. This resulted in a total stockholders’ equity of $531,379, a decrease of 70.1% from $1,776,358.

Strategically, Safe Pro Group has made several acquisitions, including Safe-Pro USA and Airborne Response Corp., which have contributed to its revenue growth. The company also completed the acquisition of Safe Pro AI LLC in March 2023, enhancing its capabilities in AI and drone technology. The company’s focus on expanding its product offerings and market reach is evident, with a notable shift in customer demographics, as sales to Eastern European customers increased significantly compared to the previous year.

In terms of cash flow, the company reported net cash used in operating activities of $(1,159,475) for the six months ended June 30, 2024, slightly improved from $(1,170,373) in 2023. The company raised $855,569 from financing activities during the same period, a significant increase from $83,381 in the prior year, indicating a stronger capital position following its recent IPO on August 29, 2024, which raised gross proceeds of $5,100,000.