Unusual Machines, Inc. (NYSE American: UMAC) (“Unusual
Machines” or the “Company”), a drone and drone components
manufacturer, today announced it filed its 10-Q with the U.S.
Securities and Exchange Commission for the first quarter of 2024
and provided the following letter to its shareholders from CEO
Allan Evans.
Dear Shareholders,
We are excited to present our first shareholder
letter following our recent IPO. This marks a milestone in our
journey and we are incredibly grateful for your support and
confidence in Unusual Machines. The IPO, financial results, and
recent press releases have led to a significant number of questions
from shareholders. We would like to take this opportunity to
provide more context and hopefully a deeper of our operations and
what these represent for Unusual Machines’ future.
Recent IPO and Acquisitions
In our first quarter, we successfully completed
our initial public offering (IPO) on the NYSE American, raising
gross proceeds of $5 million. Simultaneously, we closed the
acquisitions of Rotor Riot and Fat Shark from Red Cat Holdings. The
costs associated with our public listing and these strategic
acquisitions are detailed in our 10-Q filing. These one-time
expenses impact our short-term financials and can make it
challenging to discern the basic operations of the company from the
financial statements alone.
Cash Position
We view managing our cash position and cash flow
as the most important aspect of our business. During the first
quarter, we incurred one-time expenses as we finalized our IPO and
had costs related to the integration of Fat Shark and Rotor Riot.
We will continue to streamline and closely manage our cash spend.
We ended the quarter with approximately $3.2 million in cash, which
we believe provides sufficient operating capacity to achieve our
growth objectives as discussed below.
Operational Overview
Rotor Riot and Fat Shark form the underpinning
of Unusual Machines operations. Historically, Rotor Riot has
generated revenue through the sale of first-person view (FPV)
drones and drone parts via its e-commerce platform. Fat Shark is
the basis of our B2B sales, supplying products through the Rotor
Riot store and to other retailers. For the 45 days post-acquisition
in the first quarter, we generated approximately $619,000 in
combined sales. While it is a limited operating period, we achieved
over 30% gross margins combined, which we aim to sustain and
improve as we scale.
Importantly, the Rotor Riot e-commerce site has
consistently grown 20-30% over the past few years. We intend to
continue leveraging this platform as our primary consumer sales
channel. Meanwhile, Fat Shark will be integrated with our other
premium branded products like Hype Train Motors as we expand our
customized B2B sales offerings.
Expanding into the Defense
Sector
Historically, our operations have focused on
producing and selling drone parts to enthusiasts through our
e-commerce channel. Recognizing the growing importance of drones in
combat, we have initiated a strategic initiative to begin
developing NDAA-compliant drone components for the defense sector.
The critical role drones have played in recent conflicts, such as
in Ukraine and Israel, has heightened the U.S. Department of
Defense’s demand for cost-effective drones and a reliable
non-Chinese supply chain. We are confident that our expertise and
partnerships Initiative will position us to start to win business
and secure necessary Blue UAS certifications that will enable us to
rapidly enter this emerging market.
Corporate Changes
Since our IPO, we have implemented several
strategic corporate changes. We relocated our headquarters to
Orlando to better align with our operations and reincorporated in
Nevada to reduce costs. Additionally, we appointed a new auditor
and worked with them to finalize our first quarter 10-Q filing with
the SEC. These steps underscore our commitment to financial
transparency and integrity as we grow.
Looking Ahead
Our priorities moving forward are
clear:
- Rotor Riot: As our
primary revenue source, we will continue to invest in and expand
Rotor Riot’s operations, driving both top-line growth and improved
margins while finalizing the transition from Red Cat.
- NDAA-Compliant
Production: We are progressing towards domestic production
of drone components, with our first product, a flight controller,
expected by the end of June. We expect this to be the first product
that will get Blue UAS certification. This is a crucial step in
accessing the U.S. B2B market.
- Defense
Components: Developing products for the defense sector is
a focal point for growth. The current demand for drone technology
also provides opportunities for non-dilutive financing. This
segment is cyclical due to the government fiscal year ending in
September so it is our current primary business development focus
through the second and third quarters.
We are enthusiastic about the future of Unusual
Machines. The acquisitions and our strategic shift towards the
defense market present significant opportunities along with some
uncertainty. Your support is invaluable, and we thank you for your
trust and confidence in our vision. We are a small company
and appreciate your feedback. Please reach out with any questions
or comments.
Sincerely,Allan EvansCEO of Unusual Machines
First Quarter Financial
Results
- Sales totaled approximately $0.6
million for the period since acquisitions of Fat Shark and Rotor
Riot of February 16, 2024 through March 31, 2024. We did not have
any sales prior in the prior year or prior to the completion of the
acquisitions.
- Gross margin for the three months
ended March 31, 2024 was approximately 33%. We did not have any
sales or gross profit in the prior year.
- Our loss from operations was
approximately $1.1 million for the three months ended March 31,
2024 as compared to a loss of $0.6 million for the three months
ended March 31, 2023.
- Net loss attributable to common
shareholders for the first quarter 2024 was approximately $1.1
million or $0.18 per share as compared to a net loss of
approximately $0.6 million for the first quarter 2023 or $0.17 per
share. The decrease primarily relates to additional expenses as it
relates to the completion of our IPO and acquisitions and
additional costs incurred related to the transition and integration
of Fat Shark and Rotor Riot.
- We had approximately $3.2 million
of cash as of March 31, 2024 as compared to $0.9 million as of
December 31, 2023. The increase in cash primarily relates to the
closing of our IPO for gross proceeds of $5.0 million in February
2024 offset by our increase in net loss and cash used as
consideration related to the acquisitions of Fat Shark and Rotor
Riot.
For further information concerning our financial
results, see the tables attached to this shareholders’ letter.
About Unusual Machines
Unusual Machines manufactures and sells drone
components and drones across a diversified brand portfolio, which
includes Fat Shark, the leader in FPV (first-person view) ultra-low
latency video goggles for drone pilots. The Company also retails
small, acrobatic FPV drones and equipment directly to consumers
through the curated Rotor Riot e-commerce store. With a changing
regulatory environment, Unusual Machines seeks to be a dominant
Tier-1 parts supplier to the fast-growing multi-billion-dollar US
drone industry and the global defense business. According to
Fact.MR, the global drone accessories market is currently valued at
$17.5 billion and is set to top $115 billion by 2032.
For more information visit Unusual Machines
at https://www.unusualmachines.com/.
Safe Harbor Statement
This press release contains forward-looking
statements within the meaning of the Private Securities Litigation
Reform Act of 1995. The words “believe,” “may,” “estimate,”
“continue,” “anticipate,” “intend,” “should,” “plan,” “could,”
“target,” “potential,” “is likely,” “will,” “expect” and similar
expressions, as they relate to us, are intended to identify
forward-looking statements. These statements include: our
investment in an expansion of Rotor Riot’s operations to drive
top-line growth and improved margins, our ability to get Blue UAS
certification, our ability to sell our components to the Department
of Defense and our ability to secure non-dilutive financing. The
results expected by some or all of these forward-looking statements
may not occur. Factors that affect our ability to achieve these
results include our ability to select, negotiate and close any
acquisition targets, the sufficiency of our cash resources and
future stock price, our ability to enhance our existing products,
develop new products and create new services for our customers and
future customers, and the risk factors contained in our filings
with the SEC, including our Annual Report on Form 10-K for the year
ended December 31, 2023 and on our investor call scheduled for May
15, 2024, a transcript of which is available on our website. .
Factors or events that could cause our actual results to differ may
emerge from time to time, and it is not possible for us to predict
all of them. Any forward-looking statement made by us herein speaks
only as of the date on which it is made. We undertake no obligation
to update any forward-looking statement, whether as a result of new
information, future developments or otherwise, except as may be
required by law.
SOURCE: Unusual Machines, Inc.
Unusual Machines, Inc.Consolidated
Condensed Balance Sheets |
|
|
|
|
|
|
|
|
March 31,2024 |
|
|
December 31, 2023 |
|
|
|
(Unaudited) |
|
|
|
|
ASSETS |
|
|
|
|
|
|
|
|
Current assets: |
|
|
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
3,208,606 |
|
|
$ |
894,773 |
|
Accounts receivable |
|
|
1,933 |
|
|
|
– |
|
Inventory |
|
|
1,641,839 |
|
|
|
– |
|
Prepaid inventory |
|
|
998,254 |
|
|
|
– |
|
Deferred offering costs |
|
|
– |
|
|
|
512,758 |
|
Other current assets |
|
|
278,258 |
|
|
|
120,631 |
|
Total current assets |
|
|
6,128,890 |
|
|
|
1,528,162 |
|
|
|
|
|
|
|
|
|
|
Non-current assets: |
|
|
|
|
|
|
|
|
Property and equipment, net |
|
|
1,083 |
|
|
|
1,254 |
|
Operating lease right-of-use assets |
|
|
373,131 |
|
|
|
– |
|
Goodwill and intangible assets |
|
|
17,666,162 |
|
|
|
– |
|
Other non-current assets |
|
|
59,426 |
|
|
|
– |
|
Total non-current assets |
|
|
18,099,802 |
|
|
|
1,254 |
|
|
|
|
|
|
|
|
|
|
Total assets |
|
$ |
24,228,692 |
|
|
$ |
1,529,416 |
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY |
|
|
|
|
|
|
|
|
Current liabilities |
|
|
|
|
|
|
|
|
Accounts payable and accrued expenses |
|
$ |
455,764 |
|
|
$ |
114,497 |
|
Operating lease liabilities |
|
|
59,946 |
|
|
|
– |
|
Deferred revenue |
|
|
176,268 |
|
|
|
– |
|
Total current liabilities |
|
|
691,978 |
|
|
|
114,497 |
|
|
|
|
|
|
|
|
|
|
Long-term liabilities |
|
|
|
|
|
|
|
|
Convertible note |
|
|
2,000,000 |
|
|
|
– |
|
Operating lease liabilities – long term |
|
|
313,896 |
|
|
|
– |
|
|
|
|
|
|
|
|
|
|
Total liabilities |
|
|
3,005,875 |
|
|
|
114,497 |
|
|
|
|
|
|
|
|
|
|
Commitments and contingencies
(See note 12) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stockholders’ equity: |
|
|
|
|
|
|
|
|
Series B preferred stock - $0.01 par value, 10,000,000 authorized
and 70 and 190 shares issued and outstanding at March 31, 2024 and
December 31, 2023, respectively |
|
|
1 |
|
|
|
2 |
|
Common stock - $0.01 par value, 500,000,000 authorized and
9,333,341 and 3,217,255 shares issued and outstanding at March 31,
2024 and December 31, 2023, respectively |
|
|
93,334 |
|
|
|
32,173 |
|
Additional paid in capital |
|
|
25,568,529 |
|
|
|
4,715,790 |
|
Accumulated deficit |
|
|
(4,439,047 |
) |
|
|
(3,333,046 |
) |
Total stockholders’ equity |
|
|
21,222,817 |
|
|
|
1,414,919 |
|
|
|
|
|
|
|
|
|
|
Total liabilities and stockholders’ equity |
|
$ |
24,228,692 |
|
|
$ |
1,529,416 |
|
Unusual Machines,
Inc.Consolidated Condensed Statement of
OperationsFor the Three Months Ended March 31,
2024 and 2023(Unaudited) |
|
|
|
Three Months Ended March 31, |
|
|
|
2024 |
|
|
2023 |
|
Sales |
|
$ |
618,915 |
|
|
$ |
– |
|
|
|
|
|
|
|
|
|
|
Cost of goods sold |
|
|
414,748 |
|
|
|
– |
|
|
|
|
|
|
|
|
|
|
Gross profit |
|
|
204,167 |
|
|
|
– |
|
|
|
|
|
|
|
|
|
|
Operating expenses: |
|
|
|
|
|
|
|
|
Operations |
|
|
112,322 |
|
|
|
– |
|
Research and development |
|
|
16,796 |
|
|
|
– |
|
Selling and marketing |
|
|
157,058 |
|
|
|
– |
|
General and administrative |
|
|
998,874 |
|
|
|
588,516 |
|
Depreciation and amortization |
|
|
5,470 |
|
|
|
381 |
|
Total operating expenses |
|
|
1,290,519 |
|
|
|
588,897 |
|
|
|
|
|
|
|
|
|
|
Loss from operations |
|
|
(1,086,352 |
) |
|
|
(588,897 |
) |
|
|
|
|
|
|
|
|
|
Other income and
(expense): |
|
|
|
|
|
|
|
|
Interest expense |
|
|
(19,649 |
) |
|
|
– |
|
Total other income and (expense) |
|
|
(19,649 |
) |
|
|
– |
|
|
|
|
|
|
|
|
|
|
Net loss before income
tax |
|
|
(1,106,001 |
) |
|
|
(588,897 |
) |
|
|
|
|
|
|
|
|
|
Income tax benefit
(expense) |
|
|
– |
|
|
|
– |
|
|
|
|
|
|
|
|
|
|
Net loss |
|
$ |
(1,106,001 |
) |
|
$ |
(588,897 |
) |
|
|
|
|
|
|
|
|
|
Net loss per share
attributable to common stockholders |
|
|
|
|
|
|
|
|
Basic and diluted |
|
$ |
(0.18 |
) |
|
$ |
(0.17 |
) |
|
|
|
|
|
|
|
|
|
Weighted average common shares
outstanding |
|
|
|
|
|
|
|
|
Basic and diluted |
|
|
6,065,857 |
|
|
|
3,412,255 |
|
Contact:
Dave Gentry
RedChip Companies
1-407-644-4256
UMAC@redchip.com
Unusual Machines (AMEX:UMAC)
과거 데이터 주식 차트
부터 9월(9) 2024 으로 10월(10) 2024
Unusual Machines (AMEX:UMAC)
과거 데이터 주식 차트
부터 10월(10) 2023 으로 10월(10) 2024