AgEagle Aerial Systems, Inc.

Good day, everyone, and thank you for participating in today's conference call. Joining us today from AgEagle is Chief Executive Officer and Chairman of the Board, Barrett Mooney, and Nicole Fernandez-McGovern, AgEagle's Chief Financial Officer and Executive Vice President of Operations. Following Barrett and Nicole's prepared remarks, both company officers will respond to questions that were previously submitted via email by analysts and investors. Before I turn it over to Barrett, I would like to remind you that during today's call, including the question and answer session, statements that are not historical facts, including any projections, statements regarding future events or future financial performance, or statements of intent or belief, are forward-looking statements that are covered by the safe harbor disclaimers contained in the company's public filings with the SEC. Actual outcomes and results may differ materially from what is expressed in or implied by these forward-looking statements. With that said, I'll turn the call over to AgEagle's CEO. Barrett, please go ahead.

Thank you, Taryn, and good afternoon, everyone. I'd like to start this call off by inviting Nicole to review AgEagle's key financial highlights related to our performance during the second quarter and the first half of 2022, after which I'll walk through several important developments that have helped drive our Q2 results and then provide you with details on our strategy for the rest of 2022. With that said, I'll turn it over to Nicole for review of our financials. Nicole, over to you.

Great. Thanks, Barrett, and thanks all for joining us today. Yesterday, we filed our 10-Q with the SEC, which is accessible on the SEC website and on the investor relations section of the AgEagle website. Additionally, we announced some key highlights from our 10-Q via a press release this morning, which I'd like to recap here. For the three months ended June 30, 2022, total revenues were $5.29 million compared to $1.94 million in the prior year, an increase of $3.35 million, or 173%. This increase was primarily attributable to sales of our EB drone products that came as a result of an acquisition of the SensFly acquisition in the fourth quarter of 2021 and strong continued demand for our advanced multispectral sensors. As we continue to look further into revenue results, the SenseFly acquisition led to the company recording incremental revenue of our EB fixed wing drones totaling $3.04 million that were not included in the prior year of financials. In addition, continued strong demand for the company's new Altum PT and RedEdge P multispectral sensors introduced to the market in the fall of 2021 resulted in sensor revenues rising 23% to 2.10 million from 1.71 million. Our software subscription sales declined to 158,000 compared to 229,000 in the prior year's second quarter, which was primarily due to lower sales of our hemp overview and ground control SaaS platforms. The company's loss from operations totaled 5.39 million compared to 4.82 million The increase is 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. Our net loss was $5.6 million, or $0.07 loss per share, compared to $4.68 million, or $0.07 loss per share. 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. We are very pleased with this increase, which was attributable to the growth in our centers of excellence during the six-month period, despite 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 strategies. As a result of the SenSly 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 financials. Sensor sales totaled 3.3 million compared to 3.39 million from the prior year as a result from the prior year. 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 sheet. In addition, we continue to ship orders to clear a large portion of our backlog while continuing to rapidly expand our sales pipeline. 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. 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 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. Lastly, I want to provide an update on our capital market raising efforts. From January 1 to 2022 through June 30, 2022, we raised net proceeds of $4.5 million by utilizing our ATM with our co-agents, CFO and Raymond James. We also completed a registered direct offering in which an institutional investment firm purchased 10,000 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 Barrett for a detailed review of the state of the industry and our vision moving forward. Barrett.