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 linking statements and 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 very much, Dagmar, and good afternoon, everyone. I'd like to start this call by inviting Nicole to review AgEagle's key financial highlights relating to our performance during the third quarter, after which I'll provide commentary on what we accomplished in Q3 and then provide you with details on our strategy for Q4 and 2023. Nicole, over to you.

Thanks, Ferris, and thank you all for joining us today. Yesterday, we filed our 10-Q with the SEC, which is accessible on the SEC.gov website and on the Arvester Relations section of the AgEagle website. Additionally, we announced some key highlights from our 10-Q VF Press release this morning, which I'd like to recap here. For the three months ended September 30, 2022, total revenues were $5.5 million compared to $2.0 million in the prior year period, an increase of $3.5 million, or 172%. This increase was primarily attributable to revenue generated from our sales of our EB line of drones as part of the SenseFly acquisition that we completed in the fourth quarter of 2021, which contributed to $2.1 million this quarter. Additionally, our quarterly revenue growth was fueled by a 71% increase in the sale of the Altum PT and RedEdge PT sensors, which pushed total sensor sales to 3.3 million compared to 1.9 million in the prior period. Our software subscription sales increased 36% to 153,000 compared to 112,000 in the prior year's third quarter, which was primarily due to an increase in subscriptions for measure ground control. The company's loss from operations totaled $5.1 million compared to $3.8 million in the same year ago. This increase is primarily attributable to increased general and administrative sales costs and increased new product development costs related to our SenseFly acquisition in 2021. The increase was also attributable to a decrease in gross profit margins due to supply chain constraints. During the three months ended September 30th, AgEagle satisfied in full and payment for its 2021 acquisitions of MicaSense, SenseFly, Essay, and Ink at a 50% discount of the original holdback amounts associated with the acquisitions. As a result of this accomplishment, the company realized a gain on extinguishment of debt of $6.5 million, which helped drive a significant increase in net income rising to $1.7 million compared to a net loss of $3.8 million reported for the same three months in 2021. After factoring a foreign currency, cumulative translation adjustment, and accrued dividends on our Series S preferred stock, offset by amortization of unrecognized periodic pension costs in the three-month reporting period September 30, 2022, AgEagle's total comprehensive net income attributable to common shareholders was $1.3 million, or $0.01 per share, compared to a loss of $3.8 million, or $0.05 loss per share. Now looking up, At the results for the first nine months of 2022, total revenues climbed $14.6 million, up 158% to $5.7 million when compared to the prior year period. As part of the SenseFly acquisition, which occurred in the fourth quarter of 2021, the company recorded incremental revenue for our EB drones of $7.9 million, which were not included in the prior year financials. Again, due to strong global demand for the Altum PT and RedHP, total sensor sales increased 19% to $6.3 million compared to $5.3 million in the prior year period. Revenues from software subscriptions increased 33% to $480,000 compared to $360,000 in the prior year period. The improvement in SAS subscriptions was largely attributable to a 207% increase in SAS software subscriptions for measure ground control, which saw sales rise to $389,000 from $127,000, offsetting the increase with a decline in SaaS subscription sales of Hemp Overview, which totaled $91,000, down 26% from $122,000. Due to higher general and administrative R&D in sales and marketing expenses associated with our acquisition of SenseFly in 2021, loss from operations increased to $18 million from $11.6 million. Our net loss for the first nine months of 2022 was $11.5 million compared to a net loss of $11.4 million for the first nine months of 2021. After accounting for the foreign currency cumulative translation adjustment and accrued dividends on our Series F preferred offset by the amortization of unrecognized periodic pension costs, total comprehensive loss available to common stockholders totaled $11.8 million or a $0.14 loss per share. Our cash position as of September 30, 2022 was $5.3 million compared to $14.6 million at the end of 2021. In addition, stockholders' equity increased 15.3% to $88.3 million as of September 30, 2022, compared to $76.6 million at the end of 2021. During the first nine months of 2022, the company raised total net proceeds of approximately $14.6 million in its financing activities, including $4.6 million through its at-the-market offering with co-agents Stiefel and Raymond James at $9.9 million through a registered direct offering with an existing institutional investor. Now, I'll pass it back to Barrett to go over the operational highlights and the review of our strategy moving forward. Go ahead, Barrett.