AGEAGLE AERIAL SYSTEMS INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)
|
For the Nine Months Ended
September 30, | ||||||||
| 2023 | 2022 | |||||||
| CASH FLOWS FROM OPERATING ACTIVITIES: | ||||||||
| Net loss | $ | (17,910,210 | ) | $ | (11,533,356 | ) | ||
| Adjustments to reconcile net loss to net cash used in operating activities: | ||||||||
| Stock-based compensation | 1,125,209 | 3,058,741 | ||||||
| Depreciation and amortization | 3,027,644 | 2,887,244 | ||||||
| Defined benefit plan obligation and other | (188,653 | ) | (148,851 | ) | ||||
| Amortization of debt discount and warrant modification | 612,712 | — | ||||||
| (Loss) gain on debt extinguishment | 1,523,867 | (6,486,899 | ) | |||||
| Goodwill impairment | 1,500,000 | — | ||||||
| Lease impairment charge | 79,287 | |||||||
| Changes in assets and liabilities: | ||||||||
| Accounts receivable, net | 223,208 | (396,617 | ) | |||||
| Inventories, net | 660,208 | (2,221,569 | ) | |||||
| Prepaid expenses and other assets | 237,815 | 22,579 | ||||||
| Accounts payable | 264,123 | (281,937 | ) | |||||
| Accrued expenses and other liabilities | (28,133 | ) | (193,818 | ) | ||||
| Contract liabilities | (169,352 | ) | (307,610 | ) | ||||
| Other | 212,606 | 433,357 | ||||||
| Net cash used in operating activities | (8,829,669 | ) | (15,168,736 | ) | ||||
| CASH FLOWS FROM INVESTING ACTIVITIES: | ||||||||
| Purchases of property and equipment | (95,004 | ) | (250,379 | ) | ||||
| Payment of acquisition-related liabilities | — | (6,610,900 | ) | |||||
| Capitalization of platform development costs | (297,596 | ) | (635,568 | ) | ||||
| Capitalization of internal use software costs | (171,516 | ) | (565,894 | ) | ||||
| Net cash used in investing activities | (564,116 | ) | (8,062,741 | ) | ||||
| CASH FLOWS FROM FINANCING ACTIVITIES: | ||||||||
| Sales of Common Stock, net of issuance costs | 3,817,400 | 4,583,341 | ||||||
| Sale of Preferred Stock, Series F Convertible, net of issuance costs | 3,000,000 | 9,920,000 | ||||||
| Exercise of stock options | — | 74,350 | ||||||
| Repayments on COVID loans | (87,052 | ) | (173,313 | ) | ||||
| Net cash provided by financing activities | 6,730,348 | 14,404,378 | ||||||
| Effects of foreign exchange rates on cash flows | (86,257 | ) | (460,980 | ) | ||||
| Net decrease in cash | (2,749,694 | ) | (9,288,079 | ) | ||||
| Cash at beginning of period | 4,349,837 | 14,590,566 | ||||||
| Cash at end of period | $ | 1,600,143 | $ | 5,302,487 | ||||
| SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION: | ||||||||
| Interest cash paid | $ | — | $ | — | ||||
| Income taxes paid | $ | — | $ | — | ||||
| NON-CASH INVESTING AND FINANCING ACTIVITIES: | ||||||||
| Conversion of Preferred Stock, Series F Convertible to Common Stock | $ | 7,305 | $ | 5,950 | ||||
| Issuance of Restricted Common Stock | $ | 388 | $ | 316 | ||||
| Dividends on Series F Preferred Stock | $ | 170,277 | $ | 94,694 | ||||
| Deemed dividend on Series F Preferred stock and warrant | $ | 4,910,894 | $ | — | ||||
| Stock consideration for senseFly Acquisition | $ | — | $ | 3,000,000 | ||||
| Settlement of Common Stock from contingent liability related to Measure | $ | — | $ | 2,812,500 | ||||
See accompanying notes to condensed consolidated financial statements.
