In This Story
Unusual Machines Inc. (UMAC-4.51%) has submitted its Form 10-K filing for the fiscal year ended December 31, 2024.
The filing details the company's operations in the commercial drone industry, highlighting the acquisition of Fat Shark Ltd. and Rotor Riot, LLC from Red Cat Holdings, Inc. This acquisition was completed on February 16, 2024, coinciding with the company's Initial Public Offering (IPO).
Unusual Machines reported total revenues of $5,565,319 for the year ended December 31, 2024, compared to no revenues in the previous year. This increase is attributed to the acquisition of Fat Shark and Rotor Riot.
Cost of goods sold for the year was $4,019,068, resulting in a gross margin of $1,546,251. The gross margin as a percentage of sales was 28%.
Operating expenses totaled $18,538,018, which includes a $10,073,326 impairment loss on goodwill related to the acquisitions.
The company recorded a net loss of $31,980,468 for the year, which includes significant non-cash charges related to changes in the fair value of derivatives and warrant liabilities.
Unusual Machines ended the year with $3,757,323 in cash and cash equivalents, and current liabilities of $933,669.
The company completed a private placement in October 2024, raising $1.95 million. Additionally, a subsequent warrant exercise in February 2025 provided $2,436,966 in proceeds.
Unusual Machines continues to focus on expanding its business through strategic acquisitions and the development of its B2B sales channels.
The company faces risks associated with its limited operating history, competition in the drone industry, and reliance on key suppliers. It also highlights potential regulatory challenges related to drone operations.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the Unusual Machines Inc. annual 10-K report dated March 27, 2025. To report an error, please email earnings@qz.com.