Q2 2022 Ageagle Aerial Systems Inc Earnings Call
Speaker 1: which was primarily due to lower sales of our hemp overview and ground control SAS platforms.
Due to lower sales of our hemp ov and ground control SaaS platform the.
Speaker 1: The company's lost from operations to a 5.39 million compared to 4.82 million. The increase is primarily attributable to a decreasing gross margins due to supply chain constraints and higher operating costs as a result of inclusion of a full quarters expenses for the 2021 business acquisition. Offset by the balance of transactional costs incurred for these acquisitions.
The company's loss from operations totaled $5, three 9 million compared to $4 eight 2 million. The increase was primarily attributable to a decrease in gross margins due to supply chain constraints and higher operating costs. As a result of inclusion of a full quarter's expenses for the 2021 business acquisitions offset.
By the balance of transactional costs incurred for these acquisitions.
Speaker 1: Our net loss was $5.6 million or $0.77 loss per share compared to $4.68 million or $0.07 loss per share.
Our net loss was $5 6 million or seven seven loss per share compared to $4, six 8 million or seven cents loss per share.
Speaker 1: Now looking at the results for the six months of 2022, total revenues increased significantly, climbing 151 percent to 9.13 million compared to 3.64 million in the prior year period.
Now looking at the results for the six months of 2022 total revenues increased significantly climbing, 151% to $9 $13 million compared to $3 $64 million in the prior year period.
Speaker 1: We are very pleased with this increase, which was attributable to the growth in our Centers of Excellence during the six-month period, flight hardware, sensors, and software. Despite supply chain constraints and other challenges experienced in Q1 and Q2, our year-to-date revenues reflect the success of our acquisitions and growth strategy.
We are very pleased with this increase.
Which was attributable to the growth in our centers of excellence during the six months period flight hardware sensors and software despite supply chain constraints and other challenges experienced in Q1 and Q2, our year to date revenues reflect the success of our acquisition and growth strategies.
As a result of the frontline acquisition, which occurred in the fourth quarter of 2021. The company recorded incremental revenue for the E. B fixed wing drunk a $5 seven 6 million that were not included in the prior year financials sensor sales totaled $3 3 million compared to $3 $39 million from the prior year as a result.
Speaker 1: As a result of the Sun Fly acquisition, which occurred in the fourth quarter of 2021, the company recorded incremental revenue for the EB fixed-wing drones of $5.76 million that were not included in the prior year finance.
Speaker 1: Center sales totaled 3.3 million compared to 3.39 million from the prior year. As a result.
From the prior year.
Speaker 1: As of June 30, 2022, the order backlog for these centers stood at approximately a million, which is included within contract liabilities on the company's consolidated balance.
As of June 30 of 2022, the order backlog City center stood at approximately $1 million, which is included within contract liabilities on the Companys consolidated balance sheet. In addition, we continue to ship orders to clear a large portion of our backlog, while continuing to rapidly expand our sales pipeline.
Speaker 1: In addition, we continue to ship orders to clear a large portion of our backlog ride continuing to rapidly expand our sales pipe.
Speaker 1: Due to the higher general and administrative R&D and sales and marketing expenses associated with the execution of our 2021 acquisition strategy, loss from operations increased to $12.87 million from $7.78 million.
Due to higher general and administrative R&D and sales and marketing expenses expenses associated with the extra cushion fusion of our 2021 acquisition strategy loss from operations increased to $12 $87 million from $7 $7 million to $8 million.
Speaker 1: Our net cash for the first half, our net loss for the first half of 2022 was $13.2 million, or $0.17 loss per share, compared to net loss of $7.6 million, or $0.12 loss per share for the first half of 2021.
Our net cash for the first half our net loss for the first half of 2022 was $13 2 million or <unk> 17 cents loss per share compared to net loss of $7 6 million or 12 cents loss per share for the first half of 2021.
Speaker 1: Our cash position as of June 30th, 2021 was 13.51 million compared to 14.59 million at the end of 2021. In addition, total stockholders' equity increased 9% to 83.6 million as of June 30th, 2022 compared to 76.58 million as of the end of 2021.
Our cash position as of June 32021 was $13 five 1 million compared to $14 5 million at the end of 2021. In addition, total stockholders equity increased 9% to $83 6 million as of June 32022, compared to $76 five 8 million as of the end of 2021.
Speaker 1: Lastly, I want to provide an update on our capital raising market raising efforts. From January 1 to 2022 through June 30, 2022, we raise net proceeds of 4.5 million by utilizing our ATM with our co-agents, default and Raymond James.
Lastly, I want to provide an update on our capital raising market raising effort from January one to 2022 through June 32022, we raised net proceeds of $4 5 million by utilizing our ATM with our co agents Stifel and Raymond James.
Speaker 1: We also completed a registered direct offering in which an institutional investment firm purchased 10,000 shares of Series F 5% convertible preferred stock and warrants in exchange for net proceeds of 9.92 million.
We also completed a registered direct offering in which an institutional investment firm purchased 10000 shares of series, 5% series F, 5% convertible preferred stock and warrants in exchange for net proceeds of $9 $92 million.
Our capital formation activities have provided us the resources to pursue our goal of building a full stack solution that we believe will generate significant opportunities for growth across both commercial and government and defense verticals ultimately delivering increased sustainable value to our customers now I'll pass it on back to bear for a detailed review of the state of the industry.
Speaker 1: Our capital formation activities have provided us the resources to pursue our goal of building a full-stack solution that we believe will generate significant opportunities for growth across both commercial and government and defense verticals, ultimately delivering increased sustainable value to our customers.
Speaker 1: Now I'll pass it on back to Barrett for a detailed review of the state of the industry and our vision moving forward. Barrett.
And our vision moving forward spirit.
Great. Thank you Nicole.
Speaker 2: Great, thank you, Nicole. The results we've achieved in the first half of 2022 demonstrates that our efforts in establishing three centers of excellence focused on flight hardware, sensors and software are helping us achieve critical milestones vital to our long-term success and creating sustainable value for our shareholders.
Once we've achieved in the first half of 2022.
Demonstrates that our efforts in establishing three centers of excellence focused on flight hardware sensors and software are helping us achieve critical milestones vital to our long term success and creating sustainable value for our shareholders. As we continue to refine our strategy I've challenged our entire organization to determine what excites us.
Speaker 2: As we continue to refine our strategy, I've challenged our entire organization to determine what excites us and what steps must be taken to ensure that we continue to motivate and inspire our customers, our business partners, and our subscribers.
And what steps must be taken to ensure that we continue to motivate and inspire our customers our business partners and our shareholders and.
Speaker 2: In doing so, we are building the marketplace solutions that improve the automation of data collection and insight derivation, driving our current and future innovations towards data reservation.
In doing so we are building the marketplace solutions that improve the automation of data collection and insight derivation driving current and future innovations towards this aim.
Speaker 2: We are also making progress expanding demonstrations where our technology fits real market needs in the demands of today.
We're also making progress expanding demonstrations, where our technology fits real market needs and the demands of today.
Speaker 2: For example, our EDX was deployed to Keystero Airport, Europe's busiest airport, to assist in developing an intricate 3D digital model of the airport as they evaluated runway expansion plans. Through leveraging our fixed wing drone, they were able to survey much faster and more cost effectively than typical on the ground methods saving the expansion project 20 billion euros and 100,000 projects.
For example, our AVX was deployed to Heathrow Airport, Europe's busiest airports to assist in developing an intricate <unk> digital model of the airport as they evaluated runway expansion plant through leveraging our fixed wing drone. They were able to survey much faster and more cost effectively than typical on the ground methods saving the.
Expansion project 20 billion euros, and 100000 project hours.
The <unk> has also been deployed in various disaster relief efforts, including mapping the Florida landscape affected by wildfires during extremely windy conditions.
Speaker 2: The EBX has also been deployed in various disaster relief efforts, including mapping the Florida landscape affected by wildfires during extremely windy conditions. The EBX was also deployed in the country of Georgia to provide an aerial survey of a 14 meter fissure, and the data collected was utilized to assess reinforcement operations within very high-risk areas.
<unk> was also deployed in the country of Georgia to provide an aerial survey of a 40 meter Fisher and the data collected was utilized to assess reinforcement operations with very high risk area.
Speaker 2: These are just a few select countless examples of our solutions being leveraged across a variety of applications to achieve important objectives.
These are just a few select countless examples of our solution is being leveraged across a variety of applications to achieve important objectives with the products. We are actively marketing. We are looking to continue deploying innovative solutions that take full advantage of our core strengths to penetrate new markets and high growth opportunities.
Speaker 2: With the products we are actively marketing, we are looking to continue deploying innovative solutions that take full advantage of our core strengths to penetrate new markets and high growth opportunities for AGEGLE. Our purpose is to offer customer-centric, advanced autonomous robotic solutions where our unique blend of flight hardware, sensors, and software will present revenue opportunities for our customers and business parts.
For AG Eagle our purpose is to offer customer centric advanced autonomous robotic solutions, where our unique blend of flight hardware sensors and software will present revenue opportunities for our customers and business partners.
Speaker 2: Looking at the big picture, our mission is focused on innovation through automation and sensing, and the products we produce will serve as a catalyst in the creation of new markets and products within the autonomous robotics sector. This in turn will drive market expansion for our existing...
Looking at the Big picture, our mission is focused on innovation through automation and sensing and the products. We produce will serve as a catalyst and the creation of new markets and products within the autonomous robotics sector. This in turn will drive market expansion for our existing offerings to achieve our mission, we must make a point of staying on the leading edge and remaining ahead of our peers on a.
Speaker 2: To achieve our mission, we must make a point of staying on the leading edge and remaining ahead of our peers on the global regulatory front, understanding and anticipating our customers evolving needs and identifying future opportunities. We must continue engineering products and solutions that excite, motivate and inspire. As we move forward with this mission, we must make a point of staying on the leading edge and identifying future opportunities and supporting our customers evolving needs and identifying future opportunities. We must continue engineering products and solutions that excite, motivate and inspire. We must continue engineering products and supporting our customers evolving needs and describing future opportunities.
Global regulatory front understanding and anticipating our customers evolving needs and identifying future opportunity, we must continue engineering products and solutions that excite motivate and inspire as.
As we move forward with this mission, let's take a moment provides.
Speaker 2: provide some updates on our exciting products and some specific examples where our products are changing, starting with our flight heart.
Provide some updates on our exciting products and some specific examples where our products are changing starting with our flight hardware.
Speaker 2: Last month, we submitted a Freedom of Information Act request to the FAA to access all U.S. commercial drone registration data from 2016 to the end of 2021. According to our analysis of the data, we confirmed that our EB was the commercial small UAS choice for the U.S. commercial drone operators, outnumbering all other fixed-wing registered, including vertical take-off and landing aircraft by a large margin. The results revealed that we hold a 41% market share of the U.S. fixed-wing market...
Last month, we submitted a freedom of information Act request to the FAA to access all U S commercial drone registration data from 2016.
Through the end of 2021.
According to our analysis of the data we confirmed that our E. B was the commercial small UAS choice for the U S. Commercial drone operators outnumbering all other fixed wing registered including vertical takeoff and landing aircraft by a large margin. The results revealed that we hold a 41% market share of the U S fixed wing market we.
Speaker 2: We view this as an important affirmation of the U.S. market's recognition of the EV's superior performance, ease of use, and flight safety profile.
We view this as an important affirmation of the U S. Market's recognition of the EV superior performance ease of use and flight safety profile.
Speaker 2: Our EBTAC became the first small unmanned aerial system to be added to the blue UAS cleared list by the Department of Defense Innovation Unit as part of the blue SUAS 2.0 project. This means that DOD agencies, including all branches of the military, are free to purchase the EBTAC and fly without a waiver to operate.
Our EBIT tax became the first small unmanned aerial system to be added to the Blue UAS cleared list by the Department of Defense Innovation unit as part of the Blue Suas 2.0 project. This means the Dod agencies, including all branches of the military.
Our free to purchase <unk> and fly without a waiver to operate.
Speaker 2: Following being named to the Blue UAS list, the EDTAC was showcased at the Association for Uncrewed Vehicle Systems International, a UVSI annual exponential conference in Orlando, Florida. In addition to the EDTAC receiving an excellence in technology award and the hardware and systems design category, our representatives hosted numerous meetings and product discussions with key officials from several US government agencies, including the US Department of Defense, Defense Innovation Unit, and the US Department of Homeland Security among others.
Following being named to the Blue UAS list. The EBIT Tac was showcased at the association for Unproved vehicle systems International <unk> Si annual exponential conference in Orlando, Florida. In addition to the E V Tach, receiving an excellence in Technology award in the hardware and system design category All representative posted numerous meetings.
And product discussions with key officials from several U S government agencies, including the U S Department of Defense Defense Innovation unit in the U S Department of Homeland security among others.
Speaker 2: The EVTAC also took center stage at the USGIF Geo-Int Supposium. 2022 held in Aurora, Colorado this spring. It's part of a featured presentation by the Director of the National Geospatial Intelligence Agency, Vice Admiral Robert G. Sharpe. In support of growing interest in the EVTAC from government and military agencies, we expanded our sales team to include the appointment of a new Director of Government Relations. As we also expect this to be a major...
But <unk> also took center stage at the U S. G. I F. G O N. Suppose your 2022 held in Aurora, Colorado. This spring as part of a featured presentation by the director of the National Geospatial Intelligence Agency, Vice Admiral Robert E Sharp and support a growing interest in the EBIT Tac from government and military agencies, we expanded our <unk>.
Sales team to include the appointment of a new director of government relations.
As we also expect this to be a major contributor to our future success.
We achieved another industry first with the <unk>, where we received design verification essential for beyond visual line of sight in operations over people from the European Union Aviation Safety agency or EASA. This was a huge accomplishment for us and is there and is reflective of the great work done by our regulatory team.
Speaker 2: We achieved another industry first with the EBTAC, where we received design verification, essential for beyond visual line of sight and operations over people from the European Union Aviation Safety Agency, or EASA. This was a huge accomplishment for us and is reflective of the great work done by our regulatory team.
Speaker 2: As previously mentioned, safety and control are a big focus for us, as we are expanding our economist robotics capability. This is a key differentiator for AgEagle and one that clearly sets us apart in the
As previously mentioned safety and control are a big focus for us as we are expanding our autonomous robotics capability. This is a key differentiator for AG Eagle and one that clearly sets us apart in the industry.
Speaker 2: The EASA Design Verification Report demonstrates that the EVX needs the highest possible quality and ground risk safety standard, and that, to its lightweight design, effective ground impact are reduced. As such, drone operators conducting advanced drone operations in 27 European member states.
Assay design verification report demonstrates.
Demonstrates that the <unk> meets the highest possible quality in ground risk safety standards and that too.
It's lightweight design effective ground impact are reduced.
As such drone operators conducting advanced drone operations in 27 European member States Eifler.
Speaker 2: Iceland, Lichtenstein, Norway, and Switzerland can obtain the high or median robustness level for the end-to-medication without additional verification from the EASA.
Iceland, Liechtenstein, Norway, and Switzerland can obtain the high or medium robustness level, what the <unk> mitigation without additional verification from EASA and facts.
Speaker 2: Two of our customers have already received approval from their respective Civil Aviation Authority, thanks to this EASAM-2 certificate. One in Ireland for visual line of site missions in a populated area and one in Romania for beyond visual line of site operations at high altitude and sparsely pockets.
Two of our customers have already received approval from their respective civil Aviation authority. Thanks to this EASA and two certificates one in Ireland for visual line of sight missions in a populated area and one in Romania for beyond visual line of sight operation at high altitude and sparsely populated areas.
Speaker 2: Earlier last month, the Brazilian National Civil Aviation Agency approved the Bibi Laws or beyond visual line of sight flights to be carried out in Brazil using AGIGO's EDGO and EDAG fixed ring drone.
Earlier last month, the Brazilian National Civil Aviation Agency approved a busy loss or beyond visual line of sight flights to be carried out in Brazil, using aggregate <unk> and <unk> AG fixed wing drunk.
Speaker 2: We're working in collaboration with technical partners, technical partners, A.L. drones, a drone engineering and consulting specialist and Geotechnology company in Santiago and Centra Geotechnologies us in the design authorization from A.N.A.C. with secured for Bibi-Los slight clearance.
In collaboration with technical partners Technical partners a L drones.
A drone engineering and consulting specialists and geotechnical Legit company in Santiago in Cintra Geo technology in the design authorization from a NAC was secured for BV loss of flight clearance. The <unk> received approval by demonstrating the safety requirements of the a N AC RV AC <unk> 94.
Speaker 2: The EB-GEO and the EB-AG drones received approval by demonstrating the safety requirements of the ANAC RBAC E94 regulation unmanned aircraft through detailed engineering analysis and in-depth flight.
Regulation unmanned aircraft through detailed engineering analysis and in depth flight test.
Following the.
Speaker 2: Following the certification, the EVGO and the EV Ag drone operators in Brazil now only need to acquire a CAER or special air-worthiness certificate for RPA for the aircraft with Santiago and Centro before flying beyond visual line of sight opera.
Certification the <unk> drone operators in Brazil, now only need to acquire a CAGR or special airworthiness certificate for RPI for the aircrafts with Santiago and central before flying beyond visual line of sight operations.
Speaker 2: Overall, these regulatory milestones are very important stepping stone in generating meaningful revenue growth, meaningful revenue growth across a variety of industries with particular emphasis on surveying, mining, construction, agriculture, environmental monitoring, military and defense and public safety, among other birds.
Overall these regulatory milestones are very important stepping stone and generating meaningful revenue growth.
Meaningful revenue growth across a variety of industries with particular emphasis on surveying mining construction agriculture, environmental monitoring military and defense and public safety among other vertical.
There is much to be excited about in our flight hardware division and as market leaders, we will continue to innovate and develop our portfolio to tackle the global market through these ample certifications, we've earned and consistent innovation with our product we've positioned ourselves to pursue multiple opportunities in the coming quarters, and we remain committed sales leaders in our industry.
Speaker 2: There is much to be excited about in our Flight Hardware Division. And as market leaders, we will continue to innovate and develop our portfolio to tackle the global market. Through these ample certifications, we've earned a consistent innovation with our product, we've positioned ourselves to pursue multiple opportunities in the coming quarters, and we remain committed sales leaders in our industry.
Speaker 2: Moving to our sensors, we're really beginning to hit our stride in the sales and production of our sensors.
Moving to our sensors.
We're really beginning to hit our stride in the sales and production of our sensors.
Speaker 2: Since the market launch of AgEagle's latest drone sensor innovations in the fourth quarter of 2021, market demand for the Alton PT and the Red HP has been skyrocketing due largely to escalating global adoption of advanced sensor technology and agriculture, plant research, land management and forestream.
Since the market launch of AGGY goes latest drone sensor innovations in the fourth quarter of 2021.
Market demand for the ultimate PT in the Red HP has been skyrocketing due largely to escalating global adoption of advanced sensor technology and agriculture plant research land management and Forestry management. We are pleased to report that our efforts to overcome bottlenecks in our supply chain for electronic components used in the production of our sensors have been proven successful.
Speaker 2: We are pleased to report that our efforts to overcome bottlenecks in our supply chain for electronic components used in the production of our sensors have been proven success.
Speaker 2: positioning the company to regain momentum on fulfilling millions of dollars in back orders. We've received over the past three quarters.
Positioning the company to regain momentum on fulfilling millions of dollars in back orders, we've received over the past three quarters.
Speaker 2: During the first half of this year, we began an initiative to increase our sensor manufacturing and assembly operation, improving consistency and customer order fulfillment. This initiative has resulted in achieving consistent and continuous production of both the Alton PT and the Red Edge P. Our plan is to increase our manufacturing capacity over the next year to achieve notably higher production rates while simultaneously developing new sensors for our core industry version.
During the first half of this year, we began an initiative to increase our sensor manufacturing and assembly operation improving consistency and customer order fulfillment. This initiative has resulted in achieving consistent and continuous production of both the often PT and the Red HP. Our plan is to increase our manufacturing capacity over the next year to achieve notably higher production.
While simultaneously developing new sensors for our core industry verticals.
Speaker 2: Our software division has also experienced an ongoing ramp up through the first half.
Our software Division has also experienced an ongoing ramp up through the first half of this year.
Speaker 2: And may we announce that we completed several new and enhanced technological features and capabilities to measure ground control, helping drive greater value from autonomous drone operations for enterprise customers and professional drone service providers.
In May we announced that we completed several new and enhanced technological features and capabilities to measure ground control, helping drive greater value from autonomous drone operation for enterprise customers and professional drone service providers.
With the aim of empowering aggregate customers measure ground control users can now planned missions via KML files build a greater waypoint flight check aerospace for L. A L. A ANC authorization and confirm whether local weather conditions are favorable.
Speaker 2: With the aim of empowering Aggie Gold customers, measured ground control users can now plan missions via KML files, build a grid or weight point flight, check airspace for LLA and LAANC authorization and confirm whether local weather conditions are fair.
Speaker 2: Through GPS-aided manual control or automated grid and waypoint patterns, users can fly and push web-based flight plans to mobile devices to ground-based infield control. They can also capture flight and imagery data using multiple spectral cameras like reddit, like AggieGo's reddit, GP and all of them PT while automatically converting these images to organize.
Through June GPS aided menu.
Emmanuel control or automated grid and waypoint patterns users can fly and push web based flight plans to mobile devices for ground based infield control. They can also capture slightly imagery data using multi spectral cameras like red like AGGY goes red HP and <unk> will automatically converting these images to organize mapped.
Speaker 2: Captured imagery can be processed into high quality data products and then used to create digital surface models and contour maps to the software.
Captured imagery can be processed into high quality data products, and then used to create digital surface models and contour maps to the software.
Speaker 2: Additionally, users could analyze drone data and other 2D data files on an interactive, account-wide map, and support operations with flight logs, playbacks, and incident flagging, efficiently managing equipment and workflows with automatic usage tracking.
Additionally, users can analyze their own data and other two D data files on an interactive account wide map and support operations with flight logs paybacks and incident flagging efficiently managing equipment and workflows with automatic usage tracking capability.
With our platform being more powerful than ever we are committed to delivering industry, leading customer support and service to ensure that all users can benefit from our technology, we've been particularly successful in use cases within the utility industry. For example, averaging an investor owned utility company, serving communities across Kansas and Missouri utilized our.
Speaker 2: With our platform being more powerful than ever, we are committed to delivering industry-leading, customer support and service to ensure that all users can benefit from our technology. We've been particularly successful in use cases within the utility industry. For example, Evergy, an investor-owned utility company serving communities across Kansas and Missouri utilize our fleet management software to successfully scale their drone program, which has improved the company's safety and reliability for their visual inspection of us.
Fleet management software to successfully scaled our drone program, which has improved the company's safety and reliability for their visual inspection of assets.
Baltimore gas and electric also implemented our fleet management system within their drone inspection program, which gave them significantly better insights into their mission planning and the data they were collecting ground.
Speaker 2: Baltimore Gas and Electric also implemented our fleet management system within their drone inspection program, which gave them significantly better insights into their mission planning and the data they were collecting.
Ground control has proven.
To be a platform that our customers rely upon and we are constantly searching for improvements to remain an industry leader and our software division.
Speaker 2: to be a platform that our customers rely upon and we are constantly searching for improvements to remain an industry leader in our software. We are constantly searching for improvements to remain an industry leader in our software.
Speaker 2: As we work on expanding Ag Eagles offering and on refining our accelerated growth strategy, each of our three centers of excellence will be instrumental and unlocking the full potential of this company. I'd like to take this time to survive.
As we work on expanding <unk> offering and on refining our accelerated growth strategy. Each of our three centers of excellence will be instrumental in unlocking the full potential of this company.
I'd like to take this time to provide some other corporate updates.
Speaker 2: In the first half of this year, we expanded Michael O'Sullivan's role as managing director of our operations in Musons, Switzerland, with his appointment to chief commercial officer. We also promoted Edward Rousseau as EVP of technical-
In the first half of this year, we expanded Michael O'sullivan role as managing director of our operations in Luzon, Switzerland with his appointment to Chief Commercial Officer. We also promoted Edvard Rose and EVP of technology. We have continued to solidify our management team with talented personnel in the right roles and I believe that both Michael and Edward have the.
Speaker 2: We have continued to solidify our management team with talented personnel in the right roles, and I believe that both Michael and Edward have the experience and leadership skills to lead AgEagle into our next chapter.
<unk> and leadership skills to lead AGGY go into our next chapter of growth.
Speaker 2: We also implemented a new ERP system, which will allow our teams to better track and process our back and upper areas.
We also implemented a new ERP system, which will allow our teams to better track and process. Our backend operations as we expand our company and continue on our high growth trajectory, we must have robust tracking capabilities across our operations and we believe that our new ERP system will allow us to remain efficient and organized on our journey.
Speaker 2: As we expand our company and continue on our high growth trajectory, we must have robust tracking capabilities across our operations. And we believe that our new ERP system will allow us to remain efficient and organized on our journey.
Speaker 2: In the coming weeks, we will also be collapsing our disparate website, those being AgEagle, SenseVly, Micasense, and Measure, into one website found at agegold.com.
In the coming weeks, we will also be collapsing our disparate website those being AG eagle since lie micro sense and measure into one website found at <unk> Dot com.
Speaker 2: I'm excited for our audience experience, the new look and feel of our newly designed.
I'm excited for our audio for audience experience, the new look and feel of our newly designed site.
Overall Q2 was a solid quarter for agnico building on a good start to the year looking forward. We expect another strong quarter in Q3, where and we remained focused on clearing the backlog for our sensors pursuing large sales opportunities for our <unk> and sensors and pressing hard on our new innovation program with the goal of introducing next gen products to market later this year.
Speaker 2: Overall, Q2 was a solid quarter for AgEgo, building on a good start to the year. Looking forward, we expect another strong quarter in Q3, wherein re-remains focus on clearing the backlog for our sensors, pursuing large sales opportunities for our E.D. and sensors, and pressing hard on our new innovations program with the goal of introducing next-gen products to market later.
Speaker 2: In managing our business and our future growth, we are adopting an internal entrepreneurial approach to quickly incubate new innovation and bring to the market strong commercialization plan.
And managing our business and our future growth, we are adopting an internal entrepreneurial approach quickly incubate new innovation and bring to the market strong commercialization plan.
Speaker 2: and so will allow us to more carefully weigh the realities of today's global markets and prepare ourselves to weather a possible recessionary storm.
This will allow us to more carefully weigh the realities of today's global market and prepare ourselves to weather a possible recessionary store.
Speaker 2: We believe companies like ours, with an innovative team and a clear method for commercializing new technology, will be able to continue growing and ultimately achieve great growth in the face of economic headwind.
We believe companies like ours with an innovative team and a clear method for commercializing new technology will be able to continue growing and ultimately achieve great growth in the face of economic headwinds.
Speaker 2: Achieving cash flow break even is the key to unlocking the future of our business. It will give us the opportunity.
Achieving cash flow breakeven is the key to unlocking the future of our business.
It will give us the opportunity to dictate our future.
Speaker 2: That being said, we are aware of the current burn rates within the company, and it is the focus of this management team that we know break even. I'll repeat is the key to unlocking the future of our business. We are keeping a close eye on the burn and focused on growth.
That being said we are aware of the current burn rates within the company and it is the focus of this management team that we know breakeven I'll repeat is the key to unlocking the future of our business. We are keeping a close eye on the burn and focused on growth.
For a successful future.
Speaker 2: At that point, we get to decide where we are going to reinvest and what new markets we are going to attack. Therefore, being cash-positive is our main priority. In this regard, our team will remain hyper-budget conscious, particularly in the current environment, but we must grow and grow we will. Now, I'll turn it over to Nicole.
At that point, we get to decide where we're going to reinvest.
New markets, we're going to attack therefore being cash positive is our main priority in this regard our team will remain hyper budget conscious, particularly in the current environment, but we must grow and grow we will.
Now I'll turn it over to Nicole for some Q&A.
Speaker 1: Great. Thanks, Barrett. So we've got some questions we've received from our investors that we think we're gonna go through just today this afternoon.
Great. Thanks Barrett.
We got some questions. We've received from our investors that we think we're going to go through today. This afternoon.
Speaker 1: So the first question that came is, this question is, as we continue to receive and reiterating our position in the industry, is Aggie going to pursue opportunities within drone delivery bear?
So the first question that came is this question is as we continue to receive them.
And reiterating our position in the industry is AGGY go going to pursue opportunity within drone delivery there.
Okay.
Speaker 2: That's a good question. We absolutely are advocating and patiently looking forward to a regulatory environment that would support a healthy drone delivery ecosystem.
That's a good question, we absolutely are advocating and patiently looking forward to a regulatory environment that would support a healthy drone delivery ecosystem. In addition, we are constantly looking for opportunities where our experience in the space can be applied in a commercial way. So the short answer is yes. We are interested in pursuing drone delivery opportunities, but this is a market that will require.
Speaker 2: In addition, we are constantly looking for opportunities where our experience in the space can be applied in a commercial way. So the short answer is yes, we are interested in pursuing drone delivery opportunities, but this is a market that will require a strong market position and a broad reach. So we are approaching this market very carefully with collaboration and partnership focus.
Our strong market position and a broad reach so we are approaching this market very carefully with collaboration and partnership focus.
Speaker 1: Perfect. Next question is, is your facility in which it's all currently being used for any manufacturing?
Perfect.
Next question is is your facility in Wichita currently being used for any manufacturing.
Speaker 2: No, absolutely. Absolutely. We strongly believe in having a U.S. domestic manufacturing up.
Oh, absolutely absolutely we strongly believe in having a U S. Domestic manufacturing operations, we have a team of engineers project managers technicians working at the Wichita facility. We also have teams in Seattle, Washington in Raleigh, North Carolina. The team is currently focused on bringing in house, the manufacturing of our Uavs and proprietary camera system.
Speaker 2: We have a team of engineers, project managers, technicians working at the Wichita facility. We also have teams in Seattle, Washington, and Raleigh, North Carolina. The team is currently focused on bringing in-house the manufacturing of our UAVs and proprietary camera systems, but we are evaluating more opportunities for U.S. manufacturing and streamlining our process.
But we are evaluating more opportunities for U S manufacturing and streamlining our processes. It's important that we grow the production to meet our backlog our continued demand for our customers with U S made product production.
Speaker 2: It's important that we grow the production to meet our backlog and our continued demand for our customers with US made production.
So the next question is with the latest capital raise at the end of June what are your capital allocation priorities for the remainder would be up.
Speaker 1: So the next question is, with the latest capital raise at the end of June , what are your capital allocation priorities for the remainder of the year?
Okay.
Speaker 2: Our first priority related to the capillaries early this year was to pay off our debt related to the recent acquisition. We made a public announcement and a press release related to this. So we were really looking for the opportunity to clear the debt off the book.
Our first priority relates to the capital raise earlier this year was to pay off our debts related to the recent acquisition.
Made a public announcement in our press release related to this.
So we were really looking for the opportunity to clear the debt off the books.
Speaker 2: and allow us then to focus the capital expenditures going forward. So it was a great opportunity for the company. We believe this will materially strengthen our balance sheet and empower us to focus on launching new products and successfully transitioning to our expansion and growth to profitability. You know, the key was keep the balance sheet clean and now streamline our operations to focus heavily on our growth in our commercial.
And allow US then to focus the capital expenditures going forward. So it was a great opportunity for the company. We believe this will materially strengthen our balance sheet and empower us to focus on launching new products and successfully transitioning to our expansion and growth to profitability.
<unk> was keep the balance sheet clean and now streamline our operations to focus heavily on our growth and our commercial sectors.
Speaker 1: Great. So in May, you put out a press release regarding strong government demands for the EV tax. Can you speak to any notable government contracts you've received and progress within that sales pipeline?
Great.
So in May you put out a press release regarding strong.
Government demand for the <unk> can you speak to any notable government contracts you receive and progress within that sales pipeline.
Yeah.
Speaker 2: With our government distribution partners, we are seeing increased interest from several governmental agencies and defense department units. We're looking forward to a really strong third and fourth quarters related to government sales and hope to have news out in the future to share these successes with you.
With our government distribution partners, we are seeing an increased interest from several governmental agencies and defense Department unit. We're looking forward to a really strong third and fourth quarters related to government sales and hope to have news out in the future to share the successes with you getting approved on the Blue Blue UAS to point, a list and allowing us to open.
Speaker 2: getting approved on the blue, uh, the blue UAS 2.0 list, uh, and allowing us to open up communications with, uh, parts of the DOD.
Up communications with parts of the Dod.
Speaker 2: and government units has really opened up the dialogue so that we can start to push through to the consummation of those sales deals. So what we really expect is we expect the turning point in this Q3, Q4 period to showcase the fruits of the efforts that we've made around the government.
And government unit has really opened up the dialogue. So that we can start to push through to the consummation of those sales deals. So what we really expect is we expect the turning point in this Q3 Q4 period to showcase the fruits of the efforts that we've made around the government sector.
Yeah.
Speaker 1: And our last question for today, Barrett, is on the last corporate update you spoke to cross-selling as being a focal point of your growth strategy going forward. Has the sales team been able to make any meaningful progress on this front?
And our last question for today Barrett is on our last corporate update you spoke to cross selling as being a focal point of your growth strategy going forward has the sales team been able to make any meaningful progress on this front.
Speaker 2: This is another really great question because as I mentioned earlier about the website, we are really focusing on bringing operational efficiency and streamlining our approach as a committed
This is another really great question, because as I mentioned earlier about the website.
We're really focusing on bringing operational efficiency and streamlining our approach as a committed team instead of being a mixture of several companies under one umbrella. We are one committed team all moving the same direction. So we're making really great strides in integrating our teams to be better positioned for cross selling are exhibiting.
Speaker 2: You know, instead of being a mixture of several companies under one umbrella, we are one committed team all moving the same direction. So we are making really great strides in integrating our teams to be better positioned for cross-selling. Are exhibiting?
Speaker 2: At AUVSI was an example of this, where we had all the teams committed selling in one location. We are doing the same as we go to the commercial UAV show in Las Vegas and GON in Europe this year. So we have two more shows coming up where we're really starting to exhibit this cross-selling approach. The collapsing of our website is, again, is another great move for showcasing how our technologies are interoperable working together in the field.
At ESI was an example of this where we had all of the teams committed to selling in one location. We are doing the same as we go to the commercial UAV show in Las Vegas, and <unk> in Europe . This year. So we have two more shows coming up where we're really starting to exhibit this cross selling approach the collapsing of.
Our website again at another great move.
Showcasing how our technologies are interoperable working together.
In the field, so as we clear our backlog and sensor sales and we move through our government sales strategy on the EDI Tac were looking into markets.
Speaker 2: So as we clear our backlog in center sales and we move through our government sales strategy on the EDPAC, we're looking into market.
Speaker 2: geographic and vertical and industrial that would be most favorable for combined sales strategy.
Geographic and vertical and industrial that would be most favorable for combined sales strategy similar to our participation in how we moved into the into <unk> and the <unk> and <unk> conferences in September and October coming up.
Speaker 2: similar to our participation, you know, in how we moved, you know, into the intergeo and the CUAV and AUVSI conferences in September , October coming up, you know, we've got EVs events where we've just drawn from everybody's expertise and started to offer a combined co-selling approach. So it's taking a bit of time to streamline, but we've actually made quite a bit of a jump in our performance to enable the cross-selling features. And that will be evident both in the website and our upcoming show.
We've got <unk> events, where we've we've just drawn from everybody's expertise and started to offer a combined co selling approach. So it's taking a bit of time to streamline but we've actually made quite a bit of a jump in our performance to enable the cross selling features and that will be evident both in the web site and our upcoming shook it.
Speaker 1: So great. So this is our last question on our Q&A section.
So great. So this is our last question on our Q&A section Barrett I'd like to thank you for for all of that today I think it was great to show not only the vision, but the progress that the company is really making not only in our revenue, but also in our <unk>.
Speaker 1: Barrett, I'd like to thank you for all of that today. I think it was great to show not only the vision, but the progress that the company is really making, not only in our revenue, but also in our operations and streamlining efforts.
Operations and streamlining efforts.
Speaker 1: This has taken a lot of hard work. I know on your part, I personally want to thank you for that. And thank our shareholders for their continued support. And appreciate you staying here with us throughout this journey. Bear in mind, I look forward to sharing our continued progress on our next corporate update, Operator. Back to you.
This has taken a lot of hard work I know on your part I I personally want to thank you for that and.
And thank our shareholders for their continued support and appreciate you staying here with us throughout this journey and I look forward to sharing our continued progress on our next corporate update operator back to you.
Ladies and gentlemen, this does conclude today's teleconference. You may disconnect. Your lines at this time. Thank you for your participation and have a great day.
Speaker 3: Ladies and gentlemen, this does conclude today's teleconference. You may disconnect your lines at this time. Thank you for your participation and have a great day.
Oh.
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