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(“AgEagle” or the “Company”, “our”, “we”, or “us”), through its wholly-owned subsidiaries, AgEagle Aerial, Inc., DBA MicaSense™, Inc. (“MicaSense”), Measure Global, Inc. (“Measure”), senseFly SA and senseFly Inc. (collectively “senseFly”), is actively engaged in designing and delivering best-in-class drones, sensors and software that solve important problems for its customers in a wide range of industry verticals, including energy/utilities, infrastructure, agriculture and government.</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 33.75pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify; text-indent: 0.5in"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Founded in 2010, AgEagle was originally formed to pioneer proprietary, professional-grade, fixed-winged drones and aerial imagery-based data collection and analytics solutions for the agriculture industry. Today, the Company is earning distinction as a globally respected market leader offering customer-centric, advanced, autonomous unmanned aerial systems (“UAS”) which drive revenue at the intersection of flight hardware, sensors and software for industries that include agriculture, military/defense, public safety, surveying/mapping and utilities/engineering, among others. AgEagle has also achieved numerous regulatory firsts, including earning governmental approvals for its commercial and tactical drones to fly Beyond Visual Line of Sight (“BVLOS”) and/or Operations Over People (“OOP”) in the United States, Canada, Brazil and the European Union.</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 33.75pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify; text-indent: 0.5in"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">AgEagle’s shift and expansion from solely manufacturing fixed-wing farm drones in 2018, to offering what the Company believes is one of the industry’s best fixed-wing, full-stack drone solutions, culminated in 2021 when the Company acquired three market-leading companies engaged in producing UAS airframes, sensors and software for commercial and government use. In addition to a robust portfolio of proprietary, connected hardware and software products; an established global network of over 200 UAS resellers; and enterprise customers worldwide; these acquisitions also brought AgEagle a workforce comprised largely of experienced engineers and technologists with deep expertise in the fields of robotics, automation, manufacturing and data science. In 2022, the Company succeeded in integrating all three acquired companies with AgEagle to form one global company focused on taking autonomous flight performance to a higher level.</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 33.75pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify; text-indent: 0.5in"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The business acquisitions completed by the Company during the year ended December 31, 2021 of 100% of the outstanding stock of MicaSense, Measure and senseFly, respectively, are collectively referred to as the “2021 Business Acquisitions.”</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 33.75pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify; text-indent: 0.5in"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The Company is currently headquartered in Wichita, Kansas, where it houses its sensor manufacturing operations and Lausanne, Switzerland where it operates its drone manufacturing operations.</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 33.75pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify; text-indent: 0.5in"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i>Basis of Presentation</i> – The condensed consolidated financial statements of the Company are presented in United States dollars and have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”). In the opinion of management, the Company has made all necessary adjustments, which include normal recurring adjustments, for a fair statement of the Company’s consolidated financial position and results of operations for the periods presented. Certain information and disclosures included in the annual consolidated financial statements prepared in accordance with U.S. GAAP have been condensed or omitted pursuant to the U.S. Securities and Exchange Commission (“SEC”) rules. These condensed consolidated financial statements should be read in conjunction with the audited condensed consolidated financial statements and accompanying notes for the year ended December 31, 2022, included in the Company’s Annual Report on Form 10-K, as filed with the SEC on April 4, 2023. The results for the three- and nine-month periods ended September 30, 2023 and 2022, are not necessarily indicative of the results to be expected for a full year, any other interim periods or any future year or periods.</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 33.75pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b> </b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>AGEAGLE AERIAL SYSTEMS INC. AND SUBSIDIARIES</b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS</b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2023 AND 2022</b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>(UNAUDITED)</b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Note 1 – Description of the Business and Basis of Presentation - Continued</b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify; text-indent: 0.5in"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The condensed consolidated financial statements include the accounts of AgEagle and its wholly-owned subsidiaries, AgEagle Aerial, Inc.; Measure Global, Inc.; senseFly S.A. and senseFly Inc. All significant intercompany balances and transactions have been eliminated in consolidation.</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 33.75pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify; text-indent: 0.5in"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">A description of certain of the Company’s accounting policies and other financial information is included in the Company’s audited consolidated financial statements filed with the SEC on Form 10-K for the year ended December 31, 2022. The summary of significant accounting policies presented below is designed to assist in understanding the Company’s condensed consolidated financial statements. Such condensed consolidated financial statements and accompanying notes are the representations of the Company’s management, who are responsible for their integrity and objectivity.</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 33.75pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify; text-indent: 0.5in"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i>Liquidity and Going Concern </i>– In pursuit of the Company’s long-term growth strategy and acquisitions, the Company has sustained continued operating losses. During the nine months ended September 30, 2023, the Company incurred a net loss of $<span id="xdx_90A_eus-gaap--NetIncomeLoss_iN_di_c20230101__20230930_zPM6yRUH2gl6" title="Net loss">17,910,210 </span></span></span><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">and used cash in operating activities of $<span id="xdx_90C_eus-gaap--NetCashProvidedByUsedInOperatingActivities_iN_di_c20230101__20230930_zgTuso4cbBs6" title="Cash used in operating activities">8,829,669</span></span></span><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">. As of September 30, 2023, the Company has working capital of $<span id="xdx_904_ecustom--WorkingCapital_iI_c20230930_zgIWOaU8op0d" title="Working capital">2,818,220 </span></span></span><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">and an accumulated deficit of $<span id="xdx_90C_eus-gaap--RetainedEarningsAccumulatedDeficit_iNI_di_c20230930_zO8ZAQlDAIGj" title="Accumulated deficit">134,374,548</span></span></span><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">. While the Company has historically been successful in raising capital to meet its working capital needs, the ability to continue raising such capital is not guaranteed. There is substantial doubt about the Company’s ability to continue as a going concern as the Company will require additional liquidity to continue its operations and meet its financial obligations for twelve (12) months from the date these condensed consolidated financial statements were issued. The Company is evaluating strategies to obtain the required additional funding for future operations and the restructuring of operations to grow revenues and reduce expenses.</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 33.75pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify; text-indent: 0.5in"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">If the Company is unable to generate significant sales growth in the near term and raise additional capital, there is a risk that the Company could default on additional obligations; and could be required to discontinue or significantly reduce the scope of its operations if no other means of financing operations are available. The condensed consolidated financial statements do not include any adjustments relating to the recoverability and classification of recorded asset amounts or the amount and classification of liabilities or any other adjustment that might be necessary should the Company be unable to continue as a going concern.</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> -17910210 -8829669 2818220 -134374548 <p id="xdx_80A_eus-gaap--SignificantAccountingPoliciesTextBlock_zPWj115umGIg" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Note 2 – <span id="xdx_82C_zlDNw0osVmZk">Summary of Significant Accounting Policies</span></b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify; text-indent: 0.5in"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The summary of significant accounting policies presented below is designed to assist in understanding the Company’s condensed consolidated financial statements. Such condensed consolidated financial statements and accompanying notes are the representations of the Company’s management, who are responsible for their integrity and objectivity. These accounting policies conform to accounting principles generally accepted in the United States of America (“US GAAP”) in all material respects and have been consistently applied in preparing the accompanying condensed consolidated financial statements.</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 33.75pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p id="xdx_848_eus-gaap--IncomeTaxUncertaintiesPolicy_zNjPElPSNVHk" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify; text-indent: 0.5in"><span style="-sec-ix-redline: true"><span id="xdx_863_zSaUPzm8A2jj" style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i>Risks and Uncertainties</i></span></span> <span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">– Global economic challenges, including the impact of war, pandemics, rising inflation and supply-chain disruptions and adverse labor market conditions could cause economic uncertainty and volatility. The aforementioned risks and their respective impacts on the UAV industry and the Company’s operational and financial performance remain uncertain and outside of the Company’s control. Specifically, because of the aforementioned continuing risks, the Company’s ability to access components and parts needed in order to manufacture its proprietary drones and sensors, and to perform quality testing have been, and continue to be, impacted. If either the Company or any of its third parties in the supply chain for materials used in our manufacturing and assembly processes continue to be adversely impacted, the Company’s supply chain may be further disrupted, limiting its ability to manufacture and assemble products.</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 33.75pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p id="xdx_84C_eus-gaap--UseOfEstimates_zKyz4TyE8V0e" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify; text-indent: 0.5in"><span style="-sec-ix-redline: true"><span id="xdx_866_zerRkRsMdiVj" style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i>Use of Estimates</i></span></span> <span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">– The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the condensed consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Significant estimates include the reserve for obsolete inventory, valuation of stock issued for services and stock options, valuation of intangible assets, valuation of goodwill, and the valuation of deferred tax assets.</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 33.75pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b> </b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>AGEAGLE AERIAL SYSTEMS INC. AND SUBSIDIARIES</b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS</b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2023 AND 2022</b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>(UNAUDITED)</b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Note 2 – Summary of Significant Accounting Policies-Continued</b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 33.75pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p id="xdx_841_eus-gaap--FairValueMeasurementPolicyPolicyTextBlock_zCMY0f1a8HE9" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify; text-indent: 0.5in"><span style="-sec-ix-redline: true"><span id="xdx_865_z8om6Cy7iJOi" style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i>Fair Value Measurements and Disclosures</i></span></span> <span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">– Accounting Standards Codification (“ASC”) Topic 820, <i>Fair Value Measurement</i> (“ASC 820”), requires companies to determine fair value based on the price that would be received to sell the asset or paid to transfer the liability to a market participant. ASC 820 emphasizes that fair value is a market-based measurement, not an entity-specific measurement.</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 33.75pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify; text-indent: 0.5in"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The guidance requires that assets and liabilities carried at fair value be classified and disclosed in one of the following categories:</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif; width: 0.25in"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">●</span></span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Level 1: Quoted market prices in active markets for identical assets or liabilities.</span></span></td></tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></td></tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">●</span></span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Level 2: Observable market-based inputs or unobservable inputs that are corroborated by market data.</span></span></td></tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></td></tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">●</span></span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Level 3: Unobservable inputs that are not corroborated by market data.</span></span></td></tr> </table> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify; text-indent: 0.75in"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">For short-term classes of our financial instruments, which include cash, accounts receivable, prepaid expenses, notes receivable, accounts payable and accrued expenses, their carrying amounts approximate fair value due to their short-term nature. The outstanding loans related to the COVID Loans and promissory note are carried at face value, which approximates fair value. As of September 30, 2023, and December 31, 2022, the Company did not have any financial assets or liabilities measured and recorded at fair value on the Company’s condensed consolidated balance sheets on a recurring basis.</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 45pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p id="xdx_847_eus-gaap--InventoryPolicyTextBlock_zk9VbpRTO00j" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify; text-indent: 0.75in"><span style="-sec-ix-redline: true"><span id="xdx_861_zDRiQDbzZw92" style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i>Inventories </i></span></span><span style="-sec-ix-redline: true"><i><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">–</span></i><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> Inventories, which consist of raw materials, finished goods and work-in-process, are stated at the lower of cost or net realizable value, with cost being determined by the average-cost method, which approximates the first-in, first-out method. Cost components include direct materials and direct labor. At each balance sheet date, the Company evaluates its inventories for excess quantities and obsolescence. This evaluation primarily includes an analysis of forecasted demand in relation to the inventory on hand, among consideration of other factors. The physical condition (e.g., age and quality) of the inventories is also considered in establishing its valuation. Based upon the evaluation, provisions are made to reduce excess or obsolete inventories to their estimated net realizable values. Once established, write-downs are considered permanent adjustments to the cost basis of the respective inventories. These adjustments are estimates, which could vary significantly, either favorably or unfavorably, from the amounts that the Company may ultimately realize upon the disposition of inventories if future economic conditions, customer inventory levels, product discontinuances, sales return levels or competitive conditions differ from the Company’s estimates and expectations.</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 45pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p id="xdx_841_eus-gaap--CashAndCashEquivalentsPolicyTextBlock_z6HzLoehVSK8" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify; text-indent: 0.75in"><span style="-sec-ix-redline: true"><span id="xdx_862_zWUjP2vEnQ7f" style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i>Cash Concentrations</i></span></span> <span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">– The Company maintains its cash balances at financial institutions that are insured by the Federal Deposit Insurance Corporation up to $<span id="xdx_901_eus-gaap--CashFDICInsuredAmount_iI_c20230930_zGY51EeMrYv4">250,000</span></span></span><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">. The Company has significant cash balances at financial institutions which throughout the year regularly exceed the federally insured limit of $<span id="xdx_903_eus-gaap--CashUninsuredAmount_iI_c20230930_zqCJqZVIODd5">250,000</span></span></span><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">. Any loss incurred or a lack of access to such funds could have a significant adverse impact on the Company’s financial condition, results of operations, and cash flows.</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 45pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p id="xdx_847_eus-gaap--RevenueFromContractWithCustomerPolicyTextBlock_z9gaqUwgJGL" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify; text-indent: 0.75in"><span style="-sec-ix-redline: true"><span id="xdx_86C_zJFd8qBHtrO7" style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i>Revenue Recognition and Concentration</i></span></span><span style="-sec-ix-redline: true"><i> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">–</span></i><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> Most of the Company’s revenues are derived primarily through the sales of drones, sensors and related accessories, and software subscriptions. All contracts and agreements are at fixed prices and are accounted for in accordance with ASC Topic 606, <i>Revenue from Contracts with Customers</i>.</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 45pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify; text-indent: 0.75in"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The Company generally recognizes revenue on sales to customers, dealers, and distributors upon satisfaction of performance obligations which generally occurs once controls transfer to customers, which is when product is shipped or delivered depending on specific shipping terms and, where applicable, a customer acceptance has been obtained. The fee is not considered to be fixed or determinable until all material contingencies related to the sales have been resolved. The Company records revenue in the statements of operations and comprehensive income (loss) net of any sales, use, value added, or certain excise taxes imposed by governmental authorities on specific sales transactions and net of any discounts, allowances and returns.</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b> </b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify; text-indent: 0.75in"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The Company’s software subscriptions to its platforms, <i>HempOverview</i> and <i>Ground Control</i>, are offered on a subscription basis. These subscription fees are recognized equally over the membership period as the services are provided.</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b> </b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b> </b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>AGEAGLE AERIAL SYSTEMS INC. AND SUBSIDIARIES</b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS</b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2023 AND 2022</b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>(UNAUDITED)</b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Note 2 – Summary of Significant Accounting Policies-Continued</b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 33.75pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify; text-indent: 0.5in"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Additionally, customer payments received in advance of the Company completing performance obligations are recorded as contract liabilities. Customer deposits represent customer prepayments and are recognized as revenue when the term of the sale or performance obligation is completed. As of September 30, 2023 and December 31, 2022, respectively, contract liabilities represent $<span id="xdx_908_eus-gaap--ContractWithCustomerLiabilityCurrent_iI_c20230930_z5vnKtGSlVbd">329,536 </span></span></span><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">and $<span id="xdx_905_eus-gaap--ContractWithCustomerLiabilityCurrent_iI_c20221231_zvKKbXTYMPv2">496,390</span></span></span><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">.</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 33.75pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p id="xdx_840_eus-gaap--InternalUseSoftwarePolicy_z2nTh3wEcBx5" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify; text-indent: 0.5in"><span style="-sec-ix-redline: true"><span id="xdx_864_zyXu6CNHYof5" style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i>Internal-use Software Costs</i></span></span> <span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">– Internal-use software costs are accounted for in accordance with ASC Topic 350-40, <i>Internal-Use Software</i>. The costs incurred in the preliminary stages of development are expensed as research and development costs as incurred. Once an application has reached the development stage, internal and external costs incurred to develop internal-use software are capitalized and amortized on a straight-line basis over the estimated useful life of the software (typically three to five years). Maintenance and enhancement costs, including those costs in the post-implementation stages, are typically expensed as incurred, unless such costs relate to substantial upgrades and enhancements to the software that result in added functionality, in which case the costs are capitalized and amortized on a straight-line basis over the estimated useful life of the software. The Company reviews the carrying value for impairment whenever facts and circumstances exist that would suggest that assets might be impaired or that the useful lives should be modified. Amortization expense related to capitalized internal-use software development costs is included in general and administrative expenses on the condensed consolidated statements of operations and comprehensive income (loss).</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b> </b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify; text-indent: 0.5in"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">As of September 30, 2023 and December 31, 2022, capitalized software costs for internal-use software related to the Company’s implementation of its enterprise resource planning (“ERP”) software, totaled $<span id="xdx_90B_ecustom--CapitalizedSoftwareDevelopmentCostsForInternaluseSoftware_iI_c20230930_zdKyW0Q81le3">640,448 </span></span></span><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">and $<span id="xdx_90F_ecustom--CapitalizedSoftwareDevelopmentCostsForInternaluseSoftware_iI_c20221231_zbFHYl3Nrcch">721,795</span></span></span><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">, respectively, net of accumulated amortization and are included in intangible assets, net on the condensed consolidated balance sheets. The Company placed its ERP into service on May 1, 2022.</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 33.75pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify; text-indent: 0.5in"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Further, capitalized software costs for internal-use software include costs incurred in connection with our <i>HempOverview </i>and <i>Ground Control which</i> we offer to our customers under SaaS arrangements. We account for these capitalized development costs in accordance with ASC 350-40 as our customer do not have the contractual right to take possession of the software at any time during the hosting period without significant penalty nor is it feasible for our customers to run the hosted software on their own. As of September 30, 2023, and December 31, 2022, respectively, capitalized software development costs for our hosted platforms, net of accumulated amortization, totaled $<span id="xdx_900_eus-gaap--FiniteLivedIntangibleAssetsNet_iI_c20230930__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__custom--PlatformDevelopmentCostsMember_zAAAfDywMRUk">1,100,734 </span></span></span><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">and $<span id="xdx_907_eus-gaap--FiniteLivedIntangibleAssetsNet_iI_c20221231__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__custom--PlatformDevelopmentCostsMember_zZOIlt7g9k94">1,332,516</span></span></span><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">, respectively, and are included in intangible assets, net on the condensed consolidated balance sheets.</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 33.75pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p id="xdx_843_eus-gaap--GoodwillAndIntangibleAssetsPolicyTextBlock_zMAC4HCvncGl" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify; text-indent: 0.5in"><span style="-sec-ix-redline: true"><span id="xdx_863_z2jfwzZB8tIf" style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i>Goodwill and Intangible Assets</i></span></span> <span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">– The assets and liabilities of acquired businesses are recorded under the acquisition method of accounting at their estimated fair values at the date of acquisition. Goodwill represents costs in excess of fair values assigned to the underlying identifiable net assets of acquired businesses. Intangible assets from acquired businesses are recognized at fair value on the acquisition date and consist of customer programs, trademarks, customer relationships, technology and other intangible assets. Customer programs include values assigned to major programs of acquired businesses and represent the aggregate value associated with the customer relationships, contracts, technology and trademarks underlying the associated program and are amortized on a straight-line basis over a period of expected cash flows used to measure fair value, which ranges from four to five years.</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify; text-indent: 0.5in"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">As of September 30, 2023 and December 31, 2022, the goodwill balance was $<span id="xdx_90B_eus-gaap--Goodwill_iI_c20230930_zSE3maj0FiHl">21,679,411 </span></span></span><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">and $<span id="xdx_90F_eus-gaap--Goodwill_iI_c20221231_zR6P32poyBKf">23,179,411</span></span></span><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">, respectively. The Company tests its goodwill for impairment, at least annually, unless events or changes in circumstances indicate the carrying value of goodwill may be impaired, the Company may look to perform such test sooner versus on an annual basis. Such events or changes in circumstances may include a significant deterioration in overall economic conditions, changes in the business climate of our industry, a decline in the Company’s market capitalization, decline in operating performance indicators, competition, or a reorganization of our business. The Company’s goodwill has been allocated to and is tested for impairment at a level referred to as the business segment. The level at which the Company test goodwill for impairment requires it to determine whether the operations below the business segment constitute a self-sustaining business for which discrete financial information is available and segment management regularly reviews the operating results which is referred to as a reporting unit.</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify; text-indent: 0.5in"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">We use a quantitative approach when testing goodwill. To perform the quantitative impairment test, we compare the fair value of a reporting unit to it’s carrying value, including goodwill. If the fair value of a reporting unit exceeds it’s carrying value, goodwill of the reporting unit is not impaired. If the carrying value of the reporting unit, including goodwill, exceeds its fair value, a goodwill impairment loss is recognized in an amount equal to that excess. We generally estimate the fair value of each reporting unit using a combination of a discounted cash flow (“DCF”) analysis and market-based valuation methodologies such as comparable public company trading values and values observed in recent business acquisitions. Determining fair value requires the exercise of significant judgments, including the amount and timing of expected future cash flows, long-term growth rates, discount rates and relevant comparable public company earnings multiples and relevant transaction multiples. </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>AGEAGLE AERIAL SYSTEMS INC. AND SUBSIDIARIES</b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS</b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2023 AND 2022</b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>(UNAUDITED)</b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify; text-indent: 0pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Note 2 – Summary of Significant Accounting Policies - Continued</b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify; text-indent: 0.5in"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Due to a significant decline in our market capitalization and overall economic conditions, as well as the performance of the business, during the third quarter of 2023 we performed a quantitative goodwill impairment test at September 30, 2023 on both our reporting units that had goodwill balances recorded, SaaS and Sensors. Based on this analysis, we concluded that the carrying value of the SaaS reporting unit exceeded its estimated fair value and we recognized a goodwill impairment charge of $<span id="xdx_909_eus-gaap--GoodwillImpairmentLoss_c20230101__20230930_zlBPmKnZ2WMa">1,500,000 </span></span></span><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">for this excess at September 30, 2023. At December 31, 2022, the Company recorded a goodwill impairment charge of $<span id="xdx_903_eus-gaap--GoodwillImpairmentLoss_c20220101__20221231_z7Vo0ZcwwxCh">41,687,871 </span></span></span><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">on two impaired reporting units, SaaS and Drones.</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><span style="-sec-ix-redline: true">Our goodwill balance, after the impairment, of approximately $<span id="xdx_909_eus-gaap--Goodwill_iI_pn5n6_c20230930_zcbT8CTWelxa">21.7</span></span> <span style="-sec-ix-redline: true">million is allocated to our Sensors and SaaS reporting units as follows: $<span id="xdx_90A_eus-gaap--Goodwill_iI_pn6n6_c20230930__srt--ProductOrServiceAxis__custom--SensorsMember_zPWmMuviDbMb">19 </span></span><span style="-sec-ix-redline: true">million and $<span id="xdx_90E_eus-gaap--Goodwill_iI_pn5n6_c20230930__srt--ProductOrServiceAxis__custom--SaaSMember_zmHpiOpNsqLh">2.7 </span></span><span style="-sec-ix-redline: true">million, respectively.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">As of September 30, 2023 and December 31, 2022, our intangible assets balance was $<span id="xdx_90C_eus-gaap--FiniteLivedIntangibleAssetsNet_iI_c20230930_zb67Nta267n1">9,242,659 </span></span></span><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">and $<span id="xdx_908_eus-gaap--FiniteLivedIntangibleAssetsNet_iI_c20221231_z0SKgKsoJ80e">11,507,653</span></span></span><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">, respectively. Finite-lived intangibles are amortized to expense over the applicable useful lives, ranging from five to ten years, based on the nature of the asset and the underlying pattern of economic benefit as reflected by future net cash inflows. We perform an impairment test of finite-lived intangibles whenever events or changes in circumstances indicate their carrying value may be impaired. If events or changes in circumstances indicate the carrying value of a finite-lived intangible may be impaired, the sum of the undiscounted future cash flows expected to result from the use of the asset group would be compared to the asset group’s carrying value. If the asset group’s carrying amount exceeds the sum of the undiscounted future cash flows, we would determine the fair value of the asset group and record an impairment loss in net earnings.</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">As of September 30, 2023 and December 31, 2022, the Company deemed that no impairment was indicated for the carrying value of the finite-lived intangible assets.</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p id="xdx_842_eus-gaap--ForeignCurrencyDisclosureTextBlock_zV8T7QzSHa9f" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><span style="-sec-ix-redline: true"><span id="xdx_86E_zNvtim0OcVW8" style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i>Foreign Currency</i></span></span> <span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">– The Company translates assets and liabilities of its foreign subsidiary, senseFly S.A., predominately in Swiss Franc to their U.S. dollar equivalents at exchange rates in effect as of the balance sheet date. Translation adjustments are not included in determining net income but are recorded in accumulated other comprehensive income on the condensed consolidated balance sheets. The Company translates the condensed consolidated statements of operations and comprehensive income (loss) of its foreign subsidiary at average exchange rates for the applicable period. Foreign currency transaction gains and losses, arising primarily from changes in exchange rates on foreign currency denominated revenues, certain purchases and intercompany transactions are recorded in other income (expense), net in the condensed consolidated statements of operations and comprehensive income (loss).</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 33.75pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p id="xdx_840_ecustom--ShippingCostPolicyTextBlock_zsAqap8tpsJ" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><span style="-sec-ix-redline: true"><span id="xdx_865_zzmOxMInuHnd" style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i>Shipping Costs</i></span></span> <span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">– All shipping costs billed directly to the customer are directly offset to shipping costs resulting in a net expense to the Company, which is included in cost of goods sold in the accompanying condensed consolidated statements of operations and comprehensive income (loss). For the three months ended September 30, 2023 and 2022, shipping costs totaled $<span id="xdx_90E_ecustom--ShippingCosts_c20230701__20230930_zjYwrYROO8lf">68,966</span></span></span> <span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">and $<span id="xdx_902_ecustom--ShippingCosts_c20220701__20220930_zbveTLkAtsha">75,074</span></span></span><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">, respectively. For the nine-month periods ended September 30, 2023 and 2022, shipping costs totaled $<span id="xdx_90C_ecustom--ShippingCosts_c20230101__20230930_zIPCgZDcoUu2">191,447 </span></span></span><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">and $<span id="xdx_900_ecustom--ShippingCosts_c20220101__20220930_zYPRo1Kxelgk">220,049</span></span></span><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">, respectively.</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 33.75pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p id="xdx_84C_eus-gaap--AdvertisingCostsPolicyTextBlock_zv4PQDAbDkT6" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><span style="-sec-ix-redline: true"><span id="xdx_863_zAu8sMLr9pil" style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i>Advertising Costs</i></span></span> <span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">– Advertising costs are charged to operations as incurred and presented in sales and marketing expenses in the condensed consolidated statements of operations and comprehensive income (loss). For the three months ended September 30, 2023 and 2022, advertising costs were $<span id="xdx_90A_eus-gaap--AdvertisingExpense_c20230701__20230930_zip3q9sr41Ee">44,701 </span></span></span><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">and $<span id="xdx_90F_eus-gaap--AdvertisingExpense_c20220701__20220930_zX85rhp3ctu2">139,480</span></span></span><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">, respectively; and for the nine months ended were $<span id="xdx_90D_eus-gaap--AdvertisingExpense_c20230101__20230930_zKTu5ry6KU12">113,119 </span></span></span><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">and $<span id="xdx_900_eus-gaap--AdvertisingExpense_c20220101__20220930_zePXUg1pTybk">303,862</span></span></span><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">, respectively.</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 33.75pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p id="xdx_846_ecustom--VendorConcentrationsPolicyTextBlock_z7KIElTQMXT3" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><span style="-sec-ix-redline: true"><span id="xdx_865_z9HcJO2T5D0g" style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i>Vendor Concentrations</i></span></span><span style="-sec-ix-redline: true"><i> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">– </span></i><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">As of September 30, 2023 and December 31, 2022, there was one significant vendor that the Company relies upon to perform certain services for the Company’s technology platform. This vendor provides services to the Company, which can be replaced by alternative vendors should the need arise.</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 33.75pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p id="xdx_84E_eus-gaap--EarningsPerSharePolicyTextBlock_zhUH0cRbQWAb" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><span style="-sec-ix-redline: true"><span id="xdx_861_z6BCbZMSd6Le" style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i>Loss Per Common Share and Potentially Dilutive Securities</i></span></span> <span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>– </b>Basic loss per share is computed by dividing net loss by the weighted average number of common shares outstanding for the period. Diluted loss per share is computed by dividing net loss by the weighted average number of common shares outstanding plus Common Stock, par value $<span id="xdx_908_eus-gaap--CommonStockParOrStatedValuePerShare_iI_c20230930_zOhR6klzmBT1">0.001</span></span></span> <span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">(“Common Stock”) equivalents (if dilutive) related to warrants, options, and convertible instruments. For the three and nine months ended September 30, 2023 and 2022, the Company has excluded all common equivalent shares outstanding for restricted stock units (“RSUs”) and options to purchase Common Stock from the calculation of diluted net loss per share, because these securities are anti-dilutive for the periods presented. As of September 30, 2023, the Company had <span id="xdx_901_eus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount_c20230101__20230930__us-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareByAntidilutiveSecuritiesAxis__us-gaap--RestrictedStockUnitsRSUMember_z0D8W4IioUej">419,722 </span></span></span><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">unvested RSUs, <span id="xdx_908_eus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount_c20230101__20230930__us-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareByAntidilutiveSecuritiesAxis__us-gaap--EmployeeStockOptionMember_zM5ybWCMeC69">2,777,732 </span></span></span><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">options outstanding to purchase shares of Common Stock and <span id="xdx_902_eus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount_c20230101__20230930__us-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareByAntidilutiveSecuritiesAxis__custom--CommonStockWarrantsMember_zGUqvo4UPwu4">48,351,747 </span></span></span><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">common stock warrants, and <span id="xdx_90E_eus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount_c20230101__20230930__us-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareByAntidilutiveSecuritiesAxis__us-gaap--SeriesFPreferredStockMember_zUYEo9me5lJ3">6,275 </span></span></span><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">of Series F Preferred Stock convertible into <span id="xdx_90C_eus-gaap--ConversionOfStockSharesIssued1_c20230101__20230930__us-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareByAntidilutiveSecuritiesAxis__us-gaap--SeriesFPreferredStockMember_zClb2PsNeRel">25,100,000 </span></span></span><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">shares of common stock. As of September 30, 2022, the Company had <span id="xdx_901_eus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount_c20220101__20220930__us-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareByAntidilutiveSecuritiesAxis__us-gaap--RestrictedStockUnitsRSUMember_zyWBZXhwMRb8">629,367 </span></span></span><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">unvested RSUs, <span id="xdx_903_eus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount_c20220101__20220930__us-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareByAntidilutiveSecuritiesAxis__us-gaap--EmployeeStockOptionMember_zkySD0PCaj64">2,484,373 </span></span></span><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">options outstanding to purchase shares of Common Stock and <span id="xdx_903_eus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount_c20220101__20220930__us-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareByAntidilutiveSecuritiesAxis__us-gaap--SeriesFPreferredStockMember_zFkGebp5IIU7">6,311 </span></span></span><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">shares of Series F Preferred Stock convertible into <span id="xdx_903_eus-gaap--ConversionOfStockSharesIssued1_c20220101__20220930__us-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareByAntidilutiveSecuritiesAxis__us-gaap--SeriesFPreferredStockMember_zj26FRZ0ELeh">10,179,032 </span></span></span><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">shares of Common Stock, and <span id="xdx_909_eus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount_c20220101__20220930__us-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareByAntidilutiveSecuritiesAxis__custom--CommonStockWarrantsMember_z31ozalw50m9">16,129,032 </span></span></span><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Common Stock warrants.</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 33.75pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b> </b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>AGEAGLE AERIAL SYSTEMS INC. AND SUBSIDIARIES</b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS</b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2023 AND 2022</b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>(UNAUDITED)</b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Note 2 – Summary of Significant Accounting Policies </b><i>–</i> <b>Continued</b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p id="xdx_849_eus-gaap--SegmentReportingPolicyPolicyTextBlock_zjeAZz0HLptf" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><span style="-sec-ix-redline: true"><span id="xdx_865_zJVhFwqYxLsj" style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i>Segment Reporting</i></span></span><span style="-sec-ix-redline: true"><i> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">–</span></i><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> In accordance with ASC Topic 280, <i>Segment Reporting</i>, (“ASC 280”), the Company identifies operating segments as components of an entity for which discrete financial information is available and is regularly reviewed by the chief operating decision maker in making decisions regarding resource allocation and performance assessment. The Company defines the term “chief operating decision maker” to be its chief executive officer.</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 33.75pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The Company has determined that it operates in four segments:</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif; width: 0.25in"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></td> <td style="font: 10pt Times New Roman, Times, Serif; width: 0.25in"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">●</span></span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Drones, which comprises revenues earned from contractual arrangements to develop, manufacture and /or modify complex drone related products, and to provide associated engineering, technical and other services according to customer specifications.</span></span></td></tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></td> <td style="font: 10pt Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></td></tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></td> <td style="font: 10pt Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">●</span></span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Sensors, which comprises the revenue earned through the sale of sensors, cameras, and related accessories.</span></span></td></tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></td> <td style="font: 10pt Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></td></tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></td> <td style="font: 10pt Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">●</span></span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">SaaS, which comprises revenue earned through the offering of online-based subscriptions.</span></span></td></tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></td> <td style="font: 10pt Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></td></tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></td> <td style="font: 10pt Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">●</span></span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Corporate, which comprises corporate costs only.</span></span></td></tr> </table> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p id="xdx_847_eus-gaap--NewAccountingPronouncementsPolicyPolicyTextBlock_z60PHlffIVwl" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><span style="-sec-ix-redline: true"><span id="xdx_863_zVdJ3g1KhwH2" style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i>New Accounting Pronouncements</i></span></span><span style="-sec-ix-redline: true"><i> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">– </span></i><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">In March 2022, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2022-02, Financial Instruments-Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures (“ASU 2022-02”), which addresses areas identified by the FASB as part of its post-implementation review of its previously issued credit losses standard, ASU 2016-13, that introduced the Current Expected Credit Loss (“CECL”) model. ASU 2022-02 eliminates the accounting guidance for troubled debt restructurings by creditors that have adopted the CECL model and enhances disclosure requirements for certain loan refinancings and restructurings made with borrowers experiencing financial difficulty. In addition, ASU 2022-02 requires a public business entity to disclose current-period gross write-offs for financing receivables and net investment in leases by year of origination in the vintage disclosures. ASU 2022-02 is effective for the fiscal years beginning after December 15, 2022, and for periods within those fiscal years. Early adoption is permitted. The Company adopted ASU 2022-02 effective January 1, 2023 and it did not have a material impact on the Company’s condensed consolidated financial statements.</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 33.75pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Other recent accounting pronouncements issued by FASB did not or are not believed by management to have a material impact on the Company’s present or future condensed consolidated financial statements.</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 33.75pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p id="xdx_848_eus-gaap--IncomeTaxUncertaintiesPolicy_zNjPElPSNVHk" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify; text-indent: 0.5in"><span style="-sec-ix-redline: true"><span id="xdx_863_zSaUPzm8A2jj" style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i>Risks and Uncertainties</i></span></span> <span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">– Global economic challenges, including the impact of war, pandemics, rising inflation and supply-chain disruptions and adverse labor market conditions could cause economic uncertainty and volatility. The aforementioned risks and their respective impacts on the UAV industry and the Company’s operational and financial performance remain uncertain and outside of the Company’s control. Specifically, because of the aforementioned continuing risks, the Company’s ability to access components and parts needed in order to manufacture its proprietary drones and sensors, and to perform quality testing have been, and continue to be, impacted. If either the Company or any of its third parties in the supply chain for materials used in our manufacturing and assembly processes continue to be adversely impacted, the Company’s supply chain may be further disrupted, limiting its ability to manufacture and assemble products.</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 33.75pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p id="xdx_84C_eus-gaap--UseOfEstimates_zKyz4TyE8V0e" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify; text-indent: 0.5in"><span style="-sec-ix-redline: true"><span id="xdx_866_zerRkRsMdiVj" style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i>Use of Estimates</i></span></span> <span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">– The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the condensed consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Significant estimates include the reserve for obsolete inventory, valuation of stock issued for services and stock options, valuation of intangible assets, valuation of goodwill, and the valuation of deferred tax assets.</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 33.75pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b> </b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>AGEAGLE AERIAL SYSTEMS INC. AND SUBSIDIARIES</b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS</b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2023 AND 2022</b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>(UNAUDITED)</b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Note 2 – Summary of Significant Accounting Policies-Continued</b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 33.75pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p id="xdx_841_eus-gaap--FairValueMeasurementPolicyPolicyTextBlock_zCMY0f1a8HE9" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify; text-indent: 0.5in"><span style="-sec-ix-redline: true"><span id="xdx_865_z8om6Cy7iJOi" style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i>Fair Value Measurements and Disclosures</i></span></span> <span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">– Accounting Standards Codification (“ASC”) Topic 820, <i>Fair Value Measurement</i> (“ASC 820”), requires companies to determine fair value based on the price that would be received to sell the asset or paid to transfer the liability to a market participant. ASC 820 emphasizes that fair value is a market-based measurement, not an entity-specific measurement.</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 33.75pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify; text-indent: 0.5in"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The guidance requires that assets and liabilities carried at fair value be classified and disclosed in one of the following categories:</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif; width: 0.25in"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">●</span></span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Level 1: Quoted market prices in active markets for identical assets or liabilities.</span></span></td></tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></td></tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">●</span></span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Level 2: Observable market-based inputs or unobservable inputs that are corroborated by market data.</span></span></td></tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></td></tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">●</span></span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Level 3: Unobservable inputs that are not corroborated by market data.</span></span></td></tr> </table> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify; text-indent: 0.75in"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">For short-term classes of our financial instruments, which include cash, accounts receivable, prepaid expenses, notes receivable, accounts payable and accrued expenses, their carrying amounts approximate fair value due to their short-term nature. The outstanding loans related to the COVID Loans and promissory note are carried at face value, which approximates fair value. As of September 30, 2023, and December 31, 2022, the Company did not have any financial assets or liabilities measured and recorded at fair value on the Company’s condensed consolidated balance sheets on a recurring basis.</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 45pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p id="xdx_847_eus-gaap--InventoryPolicyTextBlock_zk9VbpRTO00j" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify; text-indent: 0.75in"><span style="-sec-ix-redline: true"><span id="xdx_861_zDRiQDbzZw92" style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i>Inventories </i></span></span><span style="-sec-ix-redline: true"><i><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">–</span></i><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> Inventories, which consist of raw materials, finished goods and work-in-process, are stated at the lower of cost or net realizable value, with cost being determined by the average-cost method, which approximates the first-in, first-out method. Cost components include direct materials and direct labor. At each balance sheet date, the Company evaluates its inventories for excess quantities and obsolescence. This evaluation primarily includes an analysis of forecasted demand in relation to the inventory on hand, among consideration of other factors. The physical condition (e.g., age and quality) of the inventories is also considered in establishing its valuation. Based upon the evaluation, provisions are made to reduce excess or obsolete inventories to their estimated net realizable values. Once established, write-downs are considered permanent adjustments to the cost basis of the respective inventories. These adjustments are estimates, which could vary significantly, either favorably or unfavorably, from the amounts that the Company may ultimately realize upon the disposition of inventories if future economic conditions, customer inventory levels, product discontinuances, sales return levels or competitive conditions differ from the Company’s estimates and expectations.</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 45pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p id="xdx_841_eus-gaap--CashAndCashEquivalentsPolicyTextBlock_z6HzLoehVSK8" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify; text-indent: 0.75in"><span style="-sec-ix-redline: true"><span id="xdx_862_zWUjP2vEnQ7f" style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i>Cash Concentrations</i></span></span> <span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">– The Company maintains its cash balances at financial institutions that are insured by the Federal Deposit Insurance Corporation up to $<span id="xdx_901_eus-gaap--CashFDICInsuredAmount_iI_c20230930_zGY51EeMrYv4">250,000</span></span></span><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">. The Company has significant cash balances at financial institutions which throughout the year regularly exceed the federally insured limit of $<span id="xdx_903_eus-gaap--CashUninsuredAmount_iI_c20230930_zqCJqZVIODd5">250,000</span></span></span><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">. Any loss incurred or a lack of access to such funds could have a significant adverse impact on the Company’s financial condition, results of operations, and cash flows.</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 45pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> 250000 250000 <p id="xdx_847_eus-gaap--RevenueFromContractWithCustomerPolicyTextBlock_z9gaqUwgJGL" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify; text-indent: 0.75in"><span style="-sec-ix-redline: true"><span id="xdx_86C_zJFd8qBHtrO7" style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i>Revenue Recognition and Concentration</i></span></span><span style="-sec-ix-redline: true"><i> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">–</span></i><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> Most of the Company’s revenues are derived primarily through the sales of drones, sensors and related accessories, and software subscriptions. All contracts and agreements are at fixed prices and are accounted for in accordance with ASC Topic 606, <i>Revenue from Contracts with Customers</i>.</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 45pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify; text-indent: 0.75in"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The Company generally recognizes revenue on sales to customers, dealers, and distributors upon satisfaction of performance obligations which generally occurs once controls transfer to customers, which is when product is shipped or delivered depending on specific shipping terms and, where applicable, a customer acceptance has been obtained. The fee is not considered to be fixed or determinable until all material contingencies related to the sales have been resolved. The Company records revenue in the statements of operations and comprehensive income (loss) net of any sales, use, value added, or certain excise taxes imposed by governmental authorities on specific sales transactions and net of any discounts, allowances and returns.</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b> </b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify; text-indent: 0.75in"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The Company’s software subscriptions to its platforms, <i>HempOverview</i> and <i>Ground Control</i>, are offered on a subscription basis. These subscription fees are recognized equally over the membership period as the services are provided.</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b> </b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b> </b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>AGEAGLE AERIAL SYSTEMS INC. AND SUBSIDIARIES</b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS</b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2023 AND 2022</b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>(UNAUDITED)</b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Note 2 – Summary of Significant Accounting Policies-Continued</b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 33.75pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify; text-indent: 0.5in"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Additionally, customer payments received in advance of the Company completing performance obligations are recorded as contract liabilities. Customer deposits represent customer prepayments and are recognized as revenue when the term of the sale or performance obligation is completed. As of September 30, 2023 and December 31, 2022, respectively, contract liabilities represent $<span id="xdx_908_eus-gaap--ContractWithCustomerLiabilityCurrent_iI_c20230930_z5vnKtGSlVbd">329,536 </span></span></span><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">and $<span id="xdx_905_eus-gaap--ContractWithCustomerLiabilityCurrent_iI_c20221231_zvKKbXTYMPv2">496,390</span></span></span><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">.</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 33.75pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> 329536 496390 <p id="xdx_840_eus-gaap--InternalUseSoftwarePolicy_z2nTh3wEcBx5" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify; text-indent: 0.5in"><span style="-sec-ix-redline: true"><span id="xdx_864_zyXu6CNHYof5" style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i>Internal-use Software Costs</i></span></span> <span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">– Internal-use software costs are accounted for in accordance with ASC Topic 350-40, <i>Internal-Use Software</i>. The costs incurred in the preliminary stages of development are expensed as research and development costs as incurred. Once an application has reached the development stage, internal and external costs incurred to develop internal-use software are capitalized and amortized on a straight-line basis over the estimated useful life of the software (typically three to five years). Maintenance and enhancement costs, including those costs in the post-implementation stages, are typically expensed as incurred, unless such costs relate to substantial upgrades and enhancements to the software that result in added functionality, in which case the costs are capitalized and amortized on a straight-line basis over the estimated useful life of the software. The Company reviews the carrying value for impairment whenever facts and circumstances exist that would suggest that assets might be impaired or that the useful lives should be modified. Amortization expense related to capitalized internal-use software development costs is included in general and administrative expenses on the condensed consolidated statements of operations and comprehensive income (loss).</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b> </b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify; text-indent: 0.5in"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">As of September 30, 2023 and December 31, 2022, capitalized software costs for internal-use software related to the Company’s implementation of its enterprise resource planning (“ERP”) software, totaled $<span id="xdx_90B_ecustom--CapitalizedSoftwareDevelopmentCostsForInternaluseSoftware_iI_c20230930_zdKyW0Q81le3">640,448 </span></span></span><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">and $<span id="xdx_90F_ecustom--CapitalizedSoftwareDevelopmentCostsForInternaluseSoftware_iI_c20221231_zbFHYl3Nrcch">721,795</span></span></span><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">, respectively, net of accumulated amortization and are included in intangible assets, net on the condensed consolidated balance sheets. The Company placed its ERP into service on May 1, 2022.</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 33.75pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify; text-indent: 0.5in"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Further, capitalized software costs for internal-use software include costs incurred in connection with our <i>HempOverview </i>and <i>Ground Control which</i> we offer to our customers under SaaS arrangements. We account for these capitalized development costs in accordance with ASC 350-40 as our customer do not have the contractual right to take possession of the software at any time during the hosting period without significant penalty nor is it feasible for our customers to run the hosted software on their own. As of September 30, 2023, and December 31, 2022, respectively, capitalized software development costs for our hosted platforms, net of accumulated amortization, totaled $<span id="xdx_900_eus-gaap--FiniteLivedIntangibleAssetsNet_iI_c20230930__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__custom--PlatformDevelopmentCostsMember_zAAAfDywMRUk">1,100,734 </span></span></span><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">and $<span id="xdx_907_eus-gaap--FiniteLivedIntangibleAssetsNet_iI_c20221231__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__custom--PlatformDevelopmentCostsMember_zZOIlt7g9k94">1,332,516</span></span></span><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">, respectively, and are included in intangible assets, net on the condensed consolidated balance sheets.</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 33.75pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> 640448 721795 1100734 1332516 <p id="xdx_843_eus-gaap--GoodwillAndIntangibleAssetsPolicyTextBlock_zMAC4HCvncGl" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify; text-indent: 0.5in"><span style="-sec-ix-redline: true"><span id="xdx_863_z2jfwzZB8tIf" style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i>Goodwill and Intangible Assets</i></span></span> <span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">– The assets and liabilities of acquired businesses are recorded under the acquisition method of accounting at their estimated fair values at the date of acquisition. Goodwill represents costs in excess of fair values assigned to the underlying identifiable net assets of acquired businesses. Intangible assets from acquired businesses are recognized at fair value on the acquisition date and consist of customer programs, trademarks, customer relationships, technology and other intangible assets. Customer programs include values assigned to major programs of acquired businesses and represent the aggregate value associated with the customer relationships, contracts, technology and trademarks underlying the associated program and are amortized on a straight-line basis over a period of expected cash flows used to measure fair value, which ranges from four to five years.</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify; text-indent: 0.5in"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">As of September 30, 2023 and December 31, 2022, the goodwill balance was $<span id="xdx_90B_eus-gaap--Goodwill_iI_c20230930_zSE3maj0FiHl">21,679,411 </span></span></span><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">and $<span id="xdx_90F_eus-gaap--Goodwill_iI_c20221231_zR6P32poyBKf">23,179,411</span></span></span><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">, respectively. The Company tests its goodwill for impairment, at least annually, unless events or changes in circumstances indicate the carrying value of goodwill may be impaired, the Company may look to perform such test sooner versus on an annual basis. Such events or changes in circumstances may include a significant deterioration in overall economic conditions, changes in the business climate of our industry, a decline in the Company’s market capitalization, decline in operating performance indicators, competition, or a reorganization of our business. The Company’s goodwill has been allocated to and is tested for impairment at a level referred to as the business segment. The level at which the Company test goodwill for impairment requires it to determine whether the operations below the business segment constitute a self-sustaining business for which discrete financial information is available and segment management regularly reviews the operating results which is referred to as a reporting unit.</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify; text-indent: 0.5in"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">We use a quantitative approach when testing goodwill. To perform the quantitative impairment test, we compare the fair value of a reporting unit to it’s carrying value, including goodwill. If the fair value of a reporting unit exceeds it’s carrying value, goodwill of the reporting unit is not impaired. If the carrying value of the reporting unit, including goodwill, exceeds its fair value, a goodwill impairment loss is recognized in an amount equal to that excess. We generally estimate the fair value of each reporting unit using a combination of a discounted cash flow (“DCF”) analysis and market-based valuation methodologies such as comparable public company trading values and values observed in recent business acquisitions. Determining fair value requires the exercise of significant judgments, including the amount and timing of expected future cash flows, long-term growth rates, discount rates and relevant comparable public company earnings multiples and relevant transaction multiples. </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>AGEAGLE AERIAL SYSTEMS INC. AND SUBSIDIARIES</b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS</b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2023 AND 2022</b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>(UNAUDITED)</b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify; text-indent: 0pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Note 2 – Summary of Significant Accounting Policies - Continued</b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify; text-indent: 0.5in"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Due to a significant decline in our market capitalization and overall economic conditions, as well as the performance of the business, during the third quarter of 2023 we performed a quantitative goodwill impairment test at September 30, 2023 on both our reporting units that had goodwill balances recorded, SaaS and Sensors. Based on this analysis, we concluded that the carrying value of the SaaS reporting unit exceeded its estimated fair value and we recognized a goodwill impairment charge of $<span id="xdx_909_eus-gaap--GoodwillImpairmentLoss_c20230101__20230930_zlBPmKnZ2WMa">1,500,000 </span></span></span><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">for this excess at September 30, 2023. At December 31, 2022, the Company recorded a goodwill impairment charge of $<span id="xdx_903_eus-gaap--GoodwillImpairmentLoss_c20220101__20221231_z7Vo0ZcwwxCh">41,687,871 </span></span></span><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">on two impaired reporting units, SaaS and Drones.</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><span style="-sec-ix-redline: true">Our goodwill balance, after the impairment, of approximately $<span id="xdx_909_eus-gaap--Goodwill_iI_pn5n6_c20230930_zcbT8CTWelxa">21.7</span></span> <span style="-sec-ix-redline: true">million is allocated to our Sensors and SaaS reporting units as follows: $<span id="xdx_90A_eus-gaap--Goodwill_iI_pn6n6_c20230930__srt--ProductOrServiceAxis__custom--SensorsMember_zPWmMuviDbMb">19 </span></span><span style="-sec-ix-redline: true">million and $<span id="xdx_90E_eus-gaap--Goodwill_iI_pn5n6_c20230930__srt--ProductOrServiceAxis__custom--SaaSMember_zmHpiOpNsqLh">2.7 </span></span><span style="-sec-ix-redline: true">million, respectively.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">As of September 30, 2023 and December 31, 2022, our intangible assets balance was $<span id="xdx_90C_eus-gaap--FiniteLivedIntangibleAssetsNet_iI_c20230930_zb67Nta267n1">9,242,659 </span></span></span><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">and $<span id="xdx_908_eus-gaap--FiniteLivedIntangibleAssetsNet_iI_c20221231_z0SKgKsoJ80e">11,507,653</span></span></span><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">, respectively. Finite-lived intangibles are amortized to expense over the applicable useful lives, ranging from five to ten years, based on the nature of the asset and the underlying pattern of economic benefit as reflected by future net cash inflows. We perform an impairment test of finite-lived intangibles whenever events or changes in circumstances indicate their carrying value may be impaired. If events or changes in circumstances indicate the carrying value of a finite-lived intangible may be impaired, the sum of the undiscounted future cash flows expected to result from the use of the asset group would be compared to the asset group’s carrying value. If the asset group’s carrying amount exceeds the sum of the undiscounted future cash flows, we would determine the fair value of the asset group and record an impairment loss in net earnings.</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">As of September 30, 2023 and December 31, 2022, the Company deemed that no impairment was indicated for the carrying value of the finite-lived intangible assets.</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> 21679411 23179411 1500000 41687871 21700000 19000000 2700000 9242659 11507653 <p id="xdx_842_eus-gaap--ForeignCurrencyDisclosureTextBlock_zV8T7QzSHa9f" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><span style="-sec-ix-redline: true"><span id="xdx_86E_zNvtim0OcVW8" style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i>Foreign Currency</i></span></span> <span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">– The Company translates assets and liabilities of its foreign subsidiary, senseFly S.A., predominately in Swiss Franc to their U.S. dollar equivalents at exchange rates in effect as of the balance sheet date. Translation adjustments are not included in determining net income but are recorded in accumulated other comprehensive income on the condensed consolidated balance sheets. The Company translates the condensed consolidated statements of operations and comprehensive income (loss) of its foreign subsidiary at average exchange rates for the applicable period. Foreign currency transaction gains and losses, arising primarily from changes in exchange rates on foreign currency denominated revenues, certain purchases and intercompany transactions are recorded in other income (expense), net in the condensed consolidated statements of operations and comprehensive income (loss).</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 33.75pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p id="xdx_840_ecustom--ShippingCostPolicyTextBlock_zsAqap8tpsJ" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><span style="-sec-ix-redline: true"><span id="xdx_865_zzmOxMInuHnd" style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i>Shipping Costs</i></span></span> <span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">– All shipping costs billed directly to the customer are directly offset to shipping costs resulting in a net expense to the Company, which is included in cost of goods sold in the accompanying condensed consolidated statements of operations and comprehensive income (loss). For the three months ended September 30, 2023 and 2022, shipping costs totaled $<span id="xdx_90E_ecustom--ShippingCosts_c20230701__20230930_zjYwrYROO8lf">68,966</span></span></span> <span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">and $<span id="xdx_902_ecustom--ShippingCosts_c20220701__20220930_zbveTLkAtsha">75,074</span></span></span><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">, respectively. For the nine-month periods ended September 30, 2023 and 2022, shipping costs totaled $<span id="xdx_90C_ecustom--ShippingCosts_c20230101__20230930_zIPCgZDcoUu2">191,447 </span></span></span><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">and $<span id="xdx_900_ecustom--ShippingCosts_c20220101__20220930_zYPRo1Kxelgk">220,049</span></span></span><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">, respectively.</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 33.75pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> 68966 75074 191447 220049 <p id="xdx_84C_eus-gaap--AdvertisingCostsPolicyTextBlock_zv4PQDAbDkT6" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><span style="-sec-ix-redline: true"><span id="xdx_863_zAu8sMLr9pil" style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i>Advertising Costs</i></span></span> <span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">– Advertising costs are charged to operations as incurred and presented in sales and marketing expenses in the condensed consolidated statements of operations and comprehensive income (loss). For the three months ended September 30, 2023 and 2022, advertising costs were $<span id="xdx_90A_eus-gaap--AdvertisingExpense_c20230701__20230930_zip3q9sr41Ee">44,701 </span></span></span><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">and $<span id="xdx_90F_eus-gaap--AdvertisingExpense_c20220701__20220930_zX85rhp3ctu2">139,480</span></span></span><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">, respectively; and for the nine months ended were $<span id="xdx_90D_eus-gaap--AdvertisingExpense_c20230101__20230930_zKTu5ry6KU12">113,119 </span></span></span><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">and $<span id="xdx_900_eus-gaap--AdvertisingExpense_c20220101__20220930_zePXUg1pTybk">303,862</span></span></span><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">, respectively.</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 33.75pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> 44701 139480 113119 303862 <p id="xdx_846_ecustom--VendorConcentrationsPolicyTextBlock_z7KIElTQMXT3" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><span style="-sec-ix-redline: true"><span id="xdx_865_z9HcJO2T5D0g" style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i>Vendor Concentrations</i></span></span><span style="-sec-ix-redline: true"><i> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">– </span></i><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">As of September 30, 2023 and December 31, 2022, there was one significant vendor that the Company relies upon to perform certain services for the Company’s technology platform. This vendor provides services to the Company, which can be replaced by alternative vendors should the need arise.</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 33.75pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p id="xdx_84E_eus-gaap--EarningsPerSharePolicyTextBlock_zhUH0cRbQWAb" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><span style="-sec-ix-redline: true"><span id="xdx_861_z6BCbZMSd6Le" style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i>Loss Per Common Share and Potentially Dilutive Securities</i></span></span> <span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>– </b>Basic loss per share is computed by dividing net loss by the weighted average number of common shares outstanding for the period. Diluted loss per share is computed by dividing net loss by the weighted average number of common shares outstanding plus Common Stock, par value $<span id="xdx_908_eus-gaap--CommonStockParOrStatedValuePerShare_iI_c20230930_zOhR6klzmBT1">0.001</span></span></span> <span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">(“Common Stock”) equivalents (if dilutive) related to warrants, options, and convertible instruments. For the three and nine months ended September 30, 2023 and 2022, the Company has excluded all common equivalent shares outstanding for restricted stock units (“RSUs”) and options to purchase Common Stock from the calculation of diluted net loss per share, because these securities are anti-dilutive for the periods presented. As of September 30, 2023, the Company had <span id="xdx_901_eus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount_c20230101__20230930__us-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareByAntidilutiveSecuritiesAxis__us-gaap--RestrictedStockUnitsRSUMember_z0D8W4IioUej">419,722 </span></span></span><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">unvested RSUs, <span id="xdx_908_eus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount_c20230101__20230930__us-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareByAntidilutiveSecuritiesAxis__us-gaap--EmployeeStockOptionMember_zM5ybWCMeC69">2,777,732 </span></span></span><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">options outstanding to purchase shares of Common Stock and <span id="xdx_902_eus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount_c20230101__20230930__us-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareByAntidilutiveSecuritiesAxis__custom--CommonStockWarrantsMember_zGUqvo4UPwu4">48,351,747 </span></span></span><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">common stock warrants, and <span id="xdx_90E_eus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount_c20230101__20230930__us-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareByAntidilutiveSecuritiesAxis__us-gaap--SeriesFPreferredStockMember_zUYEo9me5lJ3">6,275 </span></span></span><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">of Series F Preferred Stock convertible into <span id="xdx_90C_eus-gaap--ConversionOfStockSharesIssued1_c20230101__20230930__us-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareByAntidilutiveSecuritiesAxis__us-gaap--SeriesFPreferredStockMember_zClb2PsNeRel">25,100,000 </span></span></span><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">shares of common stock. As of September 30, 2022, the Company had <span id="xdx_901_eus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount_c20220101__20220930__us-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareByAntidilutiveSecuritiesAxis__us-gaap--RestrictedStockUnitsRSUMember_zyWBZXhwMRb8">629,367 </span></span></span><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">unvested RSUs, <span id="xdx_903_eus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount_c20220101__20220930__us-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareByAntidilutiveSecuritiesAxis__us-gaap--EmployeeStockOptionMember_zkySD0PCaj64">2,484,373 </span></span></span><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">options outstanding to purchase shares of Common Stock and <span id="xdx_903_eus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount_c20220101__20220930__us-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareByAntidilutiveSecuritiesAxis__us-gaap--SeriesFPreferredStockMember_zFkGebp5IIU7">6,311 </span></span></span><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">shares of Series F Preferred Stock convertible into <span id="xdx_903_eus-gaap--ConversionOfStockSharesIssued1_c20220101__20220930__us-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareByAntidilutiveSecuritiesAxis__us-gaap--SeriesFPreferredStockMember_zj26FRZ0ELeh">10,179,032 </span></span></span><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">shares of Common Stock, and <span id="xdx_909_eus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount_c20220101__20220930__us-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareByAntidilutiveSecuritiesAxis__custom--CommonStockWarrantsMember_z31ozalw50m9">16,129,032 </span></span></span><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Common Stock warrants.</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 33.75pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b> </b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>AGEAGLE AERIAL SYSTEMS INC. AND SUBSIDIARIES</b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS</b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2023 AND 2022</b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>(UNAUDITED)</b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Note 2 – Summary of Significant Accounting Policies </b><i>–</i> <b>Continued</b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> 0.001 419722 2777732 48351747 6275 25100000 629367 2484373 6311 10179032 16129032 <p id="xdx_849_eus-gaap--SegmentReportingPolicyPolicyTextBlock_zjeAZz0HLptf" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><span style="-sec-ix-redline: true"><span id="xdx_865_zJVhFwqYxLsj" style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i>Segment Reporting</i></span></span><span style="-sec-ix-redline: true"><i> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">–</span></i><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> In accordance with ASC Topic 280, <i>Segment Reporting</i>, (“ASC 280”), the Company identifies operating segments as components of an entity for which discrete financial information is available and is regularly reviewed by the chief operating decision maker in making decisions regarding resource allocation and performance assessment. The Company defines the term “chief operating decision maker” to be its chief executive officer.</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 33.75pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The Company has determined that it operates in four segments:</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif; width: 0.25in"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></td> <td style="font: 10pt Times New Roman, Times, Serif; width: 0.25in"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">●</span></span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Drones, which comprises revenues earned from contractual arrangements to develop, manufacture and /or modify complex drone related products, and to provide associated engineering, technical and other services according to customer specifications.</span></span></td></tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></td> <td style="font: 10pt Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></td></tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></td> <td style="font: 10pt Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">●</span></span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Sensors, which comprises the revenue earned through the sale of sensors, cameras, and related accessories.</span></span></td></tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></td> <td style="font: 10pt Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></td></tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></td> <td style="font: 10pt Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">●</span></span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">SaaS, which comprises revenue earned through the offering of online-based subscriptions.</span></span></td></tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></td> <td style="font: 10pt Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></td></tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></td> <td style="font: 10pt Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">●</span></span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Corporate, which comprises corporate costs only.</span></span></td></tr> </table> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p id="xdx_847_eus-gaap--NewAccountingPronouncementsPolicyPolicyTextBlock_z60PHlffIVwl" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><span style="-sec-ix-redline: true"><span id="xdx_863_zVdJ3g1KhwH2" style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i>New Accounting Pronouncements</i></span></span><span style="-sec-ix-redline: true"><i> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">– </span></i><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">In March 2022, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2022-02, Financial Instruments-Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures (“ASU 2022-02”), which addresses areas identified by the FASB as part of its post-implementation review of its previously issued credit losses standard, ASU 2016-13, that introduced the Current Expected Credit Loss (“CECL”) model. ASU 2022-02 eliminates the accounting guidance for troubled debt restructurings by creditors that have adopted the CECL model and enhances disclosure requirements for certain loan refinancings and restructurings made with borrowers experiencing financial difficulty. In addition, ASU 2022-02 requires a public business entity to disclose current-period gross write-offs for financing receivables and net investment in leases by year of origination in the vintage disclosures. ASU 2022-02 is effective for the fiscal years beginning after December 15, 2022, and for periods within those fiscal years. Early adoption is permitted. The Company adopted ASU 2022-02 effective January 1, 2023 and it did not have a material impact on the Company’s condensed consolidated financial statements.</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 33.75pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Other recent accounting pronouncements issued by FASB did not or are not believed by management to have a material impact on the Company’s present or future condensed consolidated financial statements.</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 33.75pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p id="xdx_800_eus-gaap--SupplementalBalanceSheetDisclosuresTextBlock_zGyP1NRy9ACl" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Note 3 – <span id="xdx_824_zI3jQmaLSmtl">Balance Sheets</span></b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i>Accounts Receivable, Net</i></b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p id="xdx_890_eus-gaap--ScheduleOfAccountsNotesLoansAndFinancingReceivableTextBlock_ztxfQffYOXK2" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">As of September 30, 2023 and December 31, 2022, accounts receivable, net consist of the following: </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </p> <p style="font: 10pt Times New Roman, Times, Serif; display: none; margin: 0pt 0; text-align: justify"><span style="-sec-ix-redline: true"><span id="xdx_8B3_zY8ImIaIMcDc" style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Schedule of Accounts Receivable, Net</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="font-family: Times New Roman, Times, Serif; vertical-align: bottom"> <td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; font-weight: bold; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td colspan="2" id="xdx_496_20230930_zqhjXomjqNYa" style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; font-weight: bold; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">September 30, 2023</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; font-weight: bold"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; font-weight: bold; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td colspan="2" id="xdx_494_20221231_zTsidtsjhaXa" style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; font-weight: bold; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">December 31, 2022</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; font-weight: bold"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td></tr> <tr id="xdx_40A_eus-gaap--AccountsReceivableGross_iI_maARNCzOx9_zQtQGsCaeYrf" style="font-family: Times New Roman, Times, Serif; vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-family: Times New Roman, Times, Serif; width: 60%; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">Accounts receivable</span></span></td><td style="font-family: Times New Roman, Times, Serif; width: 2%"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; width: 1%; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">$</span></span></td><td style="font-family: Times New Roman, Times, Serif; width: 16%; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">2,110,725</span></span></td><td style="font-family: Times New Roman, Times, Serif; width: 1%; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; width: 2%"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; width: 1%; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">$</span></span></td><td style="font-family: Times New Roman, Times, Serif; width: 16%; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">2,229,840</span></span></td><td style="font-family: Times New Roman, Times, Serif; width: 1%; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td></tr> <tr id="xdx_40C_eus-gaap--AllowanceForDoubtfulAccountsReceivable_iNI_di_msARNCzOx9_z2Jz7HtFBJA9" style="font-family: Times New Roman, Times, Serif; vertical-align: bottom; background-color: White"> <td style="font-family: Times New Roman, Times, Serif; text-align: left; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">Less: Provision for doubtful accounts</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">(95,680</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">)</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">(16,800</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">)</span></span></td></tr> <tr id="xdx_405_eus-gaap--AccountsReceivableNetCurrent_iI_mtARNCzOx9_zfPZIavY8pF3" style="font-family: Times New Roman, Times, Serif; vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-family: Times New Roman, Times, Serif; text-align: left; padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">Accounts receivable, net</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="border-bottom: Black 2.5pt double; font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">$</span></span></td><td style="border-bottom: Black 2.5pt double; font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">2,015,045</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="border-bottom: Black 2.5pt double; font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">$</span></span></td><td style="border-bottom: Black 2.5pt double; font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">2,213,040</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td></tr> </table> <p id="xdx_8A1_zkosmcdcU331" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i> </i></b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>AGEAGLE AERIAL SYSTEMS INC. AND SUBSIDIARIES</b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS</b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2023 AND 2022</b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>(UNAUDITED)</b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Note 3 – Balance Sheets – Continued</b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i> </i></b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i>Inventories, Net</i></b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p id="xdx_897_eus-gaap--ScheduleOfInventoryCurrentTableTextBlock_zQGVnauyiBOk" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">As of September 30, 2023 and December 31, 2022, inventories, net consist of the following:</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </p> <p style="font: 10pt Times New Roman, Times, Serif; display: none; margin: 0pt 0"><span style="-sec-ix-redline: true"><span id="xdx_8B0_zPQdM8k3mvm8" style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Schedule of Inventories</span></span></p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="font-family: Times New Roman, Times, Serif; vertical-align: bottom"> <td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; font-weight: bold; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td colspan="2" id="xdx_495_20230930_zn2t9v0QWVMe" style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; font-weight: bold; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">September 30, 2023</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; font-weight: bold"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; font-weight: bold; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td colspan="2" id="xdx_494_20221231_z9Fsw1twM851" style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; font-weight: bold; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">December 31, 2022</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; font-weight: bold"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td></tr> <tr id="xdx_400_eus-gaap--InventoryRawMaterials_iI_pp0p0_maIGzHYv_zd69hHayT43j" style="font-family: Times New Roman, Times, Serif; vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-family: Times New Roman, Times, Serif; width: 60%; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">Raw materials</span></span></td><td style="font-family: Times New Roman, Times, Serif; width: 2%"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; width: 1%; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">$</span></span></td><td style="font-family: Times New Roman, Times, Serif; width: 16%; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">4,334,765</span></span></td><td style="font-family: Times New Roman, Times, Serif; width: 1%; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; width: 2%"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; width: 1%; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">$</span></span></td><td style="font-family: Times New Roman, Times, Serif; width: 16%; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">5,288,206</span></span></td><td style="font-family: Times New Roman, Times, Serif; width: 1%; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td></tr> <tr id="xdx_401_eus-gaap--InventoryWorkInProcess_iI_pp0p0_maIGzHYv_zeoI1WHAUUmk" style="font-family: Times New Roman, Times, Serif; vertical-align: bottom; background-color: White"> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">Work-in process</span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">714,596</span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">1,106,056</span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td></tr> <tr id="xdx_403_eus-gaap--InventoryFinishedGoods_iI_pp0p0_maIGzHYv_zKsniGVWiDf6" style="font-family: Times New Roman, Times, Serif; vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-family: Times New Roman, Times, Serif; text-align: left; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">Finished goods</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">1,412,710</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">614,400</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td></tr> <tr id="xdx_40E_eus-gaap--InventoryGross_iTI_pp0p0_mtIGzHYv_maINzrT4_zJclMRgqVNlc" style="font-family: Times New Roman, Times, Serif; vertical-align: bottom; background-color: White"> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">Gross inventories</span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">6,462,071</span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">7,008,662</span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td></tr> <tr id="xdx_405_eus-gaap--InventoryValuationReserves_iNI_pp0p0_di_msINzrT4_zyOfNlCZsXge" style="font-family: Times New Roman, Times, Serif; vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-family: Times New Roman, Times, Serif; text-align: left; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">Less: Provision for excess and obsolescence reserve</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">(398,136</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">)</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">(322,815</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">)</span></span></td></tr> <tr id="xdx_408_eus-gaap--InventoryNet_iTI_pp0p0_mtINzrT4_ztPKVCPMh8Sa" style="font-family: Times New Roman, Times, Serif; vertical-align: bottom; background-color: White"> <td style="font-family: Times New Roman, Times, Serif; text-align: left; padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">Inventories, net</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="border-bottom: Black 2.5pt double; font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">$</span></span></td><td style="border-bottom: Black 2.5pt double; font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">6,063,935</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="border-bottom: Black 2.5pt double; font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">$</span></span></td><td style="border-bottom: Black 2.5pt double; font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">6,685,847</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td></tr> </table> <p id="xdx_8A8_zsDyc3ygDDp9" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i> </i></b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i>Prepaid and Other Current Assets</i></b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p id="xdx_891_eus-gaap--DeferredCostsCapitalizedPrepaidAndOtherAssetsDisclosureTextBlock_zMfJHF3dqWq" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">As of September 30, 2023 and December 31, 2022, prepaid and other current assets, consist of the following:</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </p> <p style="font: 10pt Times New Roman, Times, Serif; display: none; margin: 0pt 0; text-align: justify; text-indent: 33.75pt"><span style="-sec-ix-redline: true"><span id="xdx_8BB_zvDOTV9pZC42" style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Schedule of Prepaid and Other Current Assets</span></span></p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="font-family: Times New Roman, Times, Serif; vertical-align: bottom"> <td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; font-weight: bold; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td colspan="2" id="xdx_49F_20230930_z557F7ZgfI19" style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; font-weight: bold; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">September 30, 2023</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; font-weight: bold"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; font-weight: bold; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td colspan="2" id="xdx_494_20221231_zjSdVfWyF0r8" style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; font-weight: bold; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">December 31, 2022</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; font-weight: bold"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td></tr> <tr id="xdx_40D_eus-gaap--Supplies_iI_pp0p0_maPEAOAzgah_zQpwRIGnzOHb" style="font-family: Times New Roman, Times, Serif; vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-family: Times New Roman, Times, Serif; width: 60%; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">Prepaid inventories</span></span></td><td style="font-family: Times New Roman, Times, Serif; width: 2%"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; width: 1%; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">$</span></span></td><td style="font-family: Times New Roman, Times, Serif; width: 16%; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">171,017</span></span></td><td style="font-family: Times New Roman, Times, Serif; width: 1%; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; width: 2%"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; width: 1%; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">$</span></span></td><td style="font-family: Times New Roman, Times, Serif; width: 16%; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">281,484</span></span></td><td style="font-family: Times New Roman, Times, Serif; width: 1%; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td></tr> <tr id="xdx_407_eus-gaap--PrepaidExpenseAndOtherAssets_iI_pp0p0_maPEAOAzgah_zkopx9NySkZ1" style="font-family: Times New Roman, Times, Serif; vertical-align: bottom; background-color: White"> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">Prepaid software licenses and annual fees</span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">244,628</span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">184,429</span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td></tr> <tr id="xdx_403_eus-gaap--PrepaidRent_iI_pp0p0_maPEAOAzgah_ze2iLZyThV0i" style="font-family: Times New Roman, Times, Serif; vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">Prepaid rent</span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">98,751</span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">234,691</span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td></tr> <tr id="xdx_40B_eus-gaap--PrepaidInsurance_iI_pp0p0_maPEAOAzgah_zM7wbwshBdy1" style="font-family: Times New Roman, Times, Serif; vertical-align: bottom; background-color: White"> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">Prepaid insurance</span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">199,046</span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">167,794</span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td></tr> <tr id="xdx_40A_eus-gaap--PrepaidTaxes_iI_pp0p0_maPEAOAzgah_zfRXjM00dZa" style="font-family: Times New Roman, Times, Serif; vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">Prepaid VAT charges</span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">41,030</span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">99,558</span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td></tr> <tr id="xdx_400_eus-gaap--OtherPrepaidExpenseCurrent_iI_pp0p0_maPEAOAzgah_zpEVNvczajw8" style="font-family: Times New Roman, Times, Serif; vertical-align: bottom; background-color: White"> <td style="font-family: Times New Roman, Times, Serif; text-align: left; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">Prepaid other and other current assets</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">77,716</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">61,592</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td></tr> <tr id="xdx_40E_eus-gaap--PrepaidExpenseAndOtherAssetsCurrent_iTI_pp0p0_mtPEAOAzgah_zadkB8zaC7zc" style="font-family: Times New Roman, Times, Serif; vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-family: Times New Roman, Times, Serif; text-align: left; padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">Prepaid and other current assets</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="border-bottom: Black 2.5pt double; font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">$</span></span></td><td style="border-bottom: Black 2.5pt double; font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">832,188</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="border-bottom: Black 2.5pt double; font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">$</span></span></td><td style="border-bottom: Black 2.5pt double; font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">1,029,548</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td></tr> </table> <p id="xdx_8A7_zeL2sNhTA4hb" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i>Property and Equipment, Net</i></b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p id="xdx_898_eus-gaap--PropertyPlantAndEquipmentTextBlock_ziEtt1rLYFzl" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">As of September 30, 2023 and December 31, 2022, property and equipment, net consist of the following:</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </p> <p style="font: 10pt Times New Roman, Times, Serif; display: none; margin: 0pt 0; text-align: justify; text-indent: 33.75pt"><span style="-sec-ix-redline: true"><span id="xdx_8BF_zewD46vDA6Oh" style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Schedule of Property and Equipment, Net</span></span></p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="display: none; font-family: Times New Roman, Times, Serif; vertical-align: bottom"> <td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; font-weight: bold"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td colspan="2" style="font-family: Times New Roman, Times, Serif; font-weight: bold; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">Useful Life</span></span></td><td style="font-family: Times New Roman, Times, Serif; font-weight: bold"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; font-weight: bold"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td colspan="2" id="xdx_496_20230930_zSm3gVv3p7wk" style="font-family: Times New Roman, Times, Serif; font-weight: bold; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">September 30,</span></span></td><td style="font-family: Times New Roman, Times, Serif; font-weight: bold"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; font-weight: bold"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td colspan="2" id="xdx_494_20221231_zrsJOaSQBpl5" style="font-family: Times New Roman, Times, Serif; font-weight: bold; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">December 31,</span></span></td><td style="font-family: Times New Roman, Times, Serif; font-weight: bold"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td></tr> <tr style="font-family: Times New Roman, Times, Serif; vertical-align: bottom"> <td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; font-weight: bold"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td colspan="2" style="font-family: Times New Roman, Times, Serif; font-weight: bold; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">Estimated</span></span></td><td style="font-family: Times New Roman, Times, Serif; font-weight: bold"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td colspan="6" style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td></tr> <tr style="font-family: Times New Roman, Times, Serif; vertical-align: bottom"> <td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; font-weight: bold"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td colspan="2" style="font-family: Times New Roman, Times, Serif; font-weight: bold; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">Useful Life</span></span></td><td style="font-family: Times New Roman, Times, Serif; font-weight: bold"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; font-weight: bold"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td colspan="2" style="font-family: Times New Roman, Times, Serif; font-weight: bold; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">September 30,</span></span></td><td style="font-family: Times New Roman, Times, Serif; font-weight: bold"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; font-weight: bold"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td colspan="2" style="font-family: Times New Roman, Times, Serif; font-weight: bold; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">December 31,</span></span></td><td style="font-family: Times New Roman, Times, Serif; font-weight: bold"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td></tr> <tr style="font-family: Times New Roman, Times, Serif; vertical-align: bottom"> <td style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; font-weight: bold"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">Type</span></span></td><td style="font-family: Times New Roman, Times, Serif; font-weight: bold; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; font-weight: bold; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">(Years)</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; font-weight: bold"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; font-weight: bold; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; font-weight: bold; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">2023</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; font-weight: bold"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; font-weight: bold; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; font-weight: bold; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">2022</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; font-weight: bold"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td></tr> <tr id="xdx_40D_eus-gaap--PropertyPlantAndEquipmentGross_iI_hus-gaap--PropertyPlantAndEquipmentByTypeAxis__us-gaap--LeaseholdImprovementsMember_zs5B6bPPEQ67" style="font-family: Times New Roman, Times, Serif; vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-family: Times New Roman, Times, Serif; width: 52%; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">Leasehold improvements</span></span></td><td style="font-family: Times New Roman, Times, Serif; width: 2%"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; width: 1%; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; width: 12%; text-align: center"><span style="-sec-ix-redline: true"><span id="xdx_906_eus-gaap--PropertyPlantAndEquipmentUsefulLife_iI_dtY_c20230930__us-gaap--PropertyPlantAndEquipmentByTypeAxis__us-gaap--LeaseholdImprovementsMember__srt--RangeAxis__srt--MinimumMember_z4jwxvsQf6v" style="font-family: Times New Roman, Times, Serif; font-size: 10pt">3</span></span><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">-<span id="xdx_900_eus-gaap--PropertyPlantAndEquipmentUsefulLife_iI_dtY_c20230930__us-gaap--PropertyPlantAndEquipmentByTypeAxis__us-gaap--LeaseholdImprovementsMember__srt--RangeAxis__srt--MaximumMember_ztWr9FGziJf6">5</span></span></span></td><td style="font-family: Times New Roman, Times, Serif; width: 1%; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; width: 2%"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; width: 1%; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">$</span></span></td><td style="font-family: Times New Roman, Times, Serif; width: 12%; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">106,837</span></span></td><td style="font-family: Times New Roman, Times, Serif; width: 1%; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; width: 2%"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; width: 1%; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">$</span></span></td><td style="font-family: Times New Roman, Times, Serif; width: 12%; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">106,837</span></span></td><td style="font-family: Times New Roman, Times, Serif; width: 1%; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td></tr> <tr id="xdx_40E_eus-gaap--PropertyPlantAndEquipmentGross_iI_hus-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--ProductionToolsAndEquipmentMember_zyhctNGjrUzb" style="font-family: Times New Roman, Times, Serif; vertical-align: bottom; background-color: White"> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">Production tools and equipment</span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: center"><span style="-sec-ix-redline: true"><span id="xdx_900_eus-gaap--PropertyPlantAndEquipmentUsefulLife_iI_dtY_c20230930__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--ProductionToolsAndEquipmentMember_ztlldCbFw10g" style="font-family: Times New Roman, Times, Serif">5</span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">730,565</span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">632,514</span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td></tr> <tr id="xdx_402_eus-gaap--PropertyPlantAndEquipmentGross_iI_hus-gaap--PropertyPlantAndEquipmentByTypeAxis__us-gaap--ComputerEquipmentMember__srt--RangeAxis__srt--MaximumMember_z5CVjwkUdvog" style="font-family: Times New Roman, Times, Serif; vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">Computer and office equipment</span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: center"><span style="-sec-ix-redline: true"><span id="xdx_909_eus-gaap--PropertyPlantAndEquipmentUsefulLife_iI_dtY_c20230930__us-gaap--PropertyPlantAndEquipmentByTypeAxis__us-gaap--ComputerEquipmentMember__srt--RangeAxis__srt--MinimumMember_zQFb8GQN5BFd" style="font-family: Times New Roman, Times, Serif; font-size: 10pt">3</span></span><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">-<span id="xdx_90D_eus-gaap--PropertyPlantAndEquipmentUsefulLife_iI_dtY_c20230930__us-gaap--PropertyPlantAndEquipmentByTypeAxis__us-gaap--ComputerEquipmentMember__srt--RangeAxis__srt--MaximumMember_zFKPzObNg6R">5</span></span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">514,613</span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">507,637</span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td></tr> <tr id="xdx_401_eus-gaap--PropertyPlantAndEquipmentGross_iI_hus-gaap--PropertyPlantAndEquipmentByTypeAxis__us-gaap--FurnitureAndFixturesMember_z8wqHG9YqI52" style="font-family: Times New Roman, Times, Serif; vertical-align: bottom; background-color: White"> <td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">Furniture</span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: center"><span style="-sec-ix-redline: true"><span id="xdx_908_eus-gaap--PropertyPlantAndEquipmentUsefulLife_iI_dtY_c20230930__us-gaap--PropertyPlantAndEquipmentByTypeAxis__us-gaap--FurnitureAndFixturesMember_zDj3Vhs8TZOl" style="font-family: Times New Roman, Times, Serif">5</span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">73,452</span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">77,799</span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td></tr> <tr id="xdx_407_eus-gaap--PropertyPlantAndEquipmentGross_iI_hus-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--DroneEquipmentMember_zaZVCHcSo4We" style="font-family: Times New Roman, Times, Serif; vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-family: Times New Roman, Times, Serif; text-align: left; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">Drone equipment</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; text-align: center"><span style="-sec-ix-redline: true"><span id="xdx_902_eus-gaap--PropertyPlantAndEquipmentUsefulLife_iI_dtY_c20230930__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--DroneEquipmentMember_zV4cYUq8y1Hc" style="font-family: Times New Roman, Times, Serif">3</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">170,109</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">170,109</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td></tr> <tr id="xdx_406_eus-gaap--PropertyPlantAndEquipmentGross_iI_maPPAENz1t8_zz1wdibvkb71" style="font-family: Times New Roman, Times, Serif; vertical-align: bottom; background-color: White"> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">Property and equipment</span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">1,595,576</span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">1,494,896</span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td></tr> <tr id="xdx_40B_eus-gaap--AccumulatedDepreciationDepletionAndAmortizationPropertyPlantAndEquipment_iNI_di_msPPAENz1t8_zFWqyTmKKwN3" style="font-family: Times New Roman, Times, Serif; vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-family: Times New Roman, Times, Serif; text-align: left; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">Less: Accumulated depreciation</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">(997,612</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">)</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">(703,741</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">)</span></span></td></tr> <tr id="xdx_406_eus-gaap--PropertyPlantAndEquipmentNet_iTI_mtPPAENz1t8_zXwjbLLBDLH7" style="font-family: Times New Roman, Times, Serif; vertical-align: bottom; background-color: White"> <td style="font-family: Times New Roman, Times, Serif; text-align: left; padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">Property and equipment, net</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="border-bottom: Black 2.5pt double; font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">$</span></span></td><td style="border-bottom: Black 2.5pt double; font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">597,964</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="border-bottom: Black 2.5pt double; font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">$</span></span></td><td style="border-bottom: Black 2.5pt double; font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">791,155</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td></tr> </table> <p id="xdx_8A7_z2N7DPsgGYed" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>AGEAGLE AERIAL SYSTEMS INC. AND SUBSIDIARIES</b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS</b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2023 AND 2022</b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>(UNAUDITED)</b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Note 3 – Balance Sheets – Continued</b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i> </i></b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i>Property and Equipment Depreciation Expense</i></b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i> </i></b></span></span></p> <p id="xdx_899_eus-gaap--ScheduleOfComprehensiveIncomeLossTableTextBlock_zsPy9b2DXqAc" style="font: 10pt Times New Roman, Times, Serif; display: none; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><span style="-sec-ix-redline: true"><span id="xdx_8BC_zqBB5CPkgYci" style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Schedule of Property and Equipment Depreciation Expense</span></span><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i> </i></span></span></p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="display: none; font-family: Times New Roman, Times, Serif; vertical-align: bottom"> <td style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; font-weight: bold"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">Type</span></span></td><td style="font-family: Times New Roman, Times, Serif; font-weight: bold; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td colspan="2" id="xdx_49B_20230701__20230930_zHq2dMnXme83" style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; font-weight: bold; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">2023</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; font-weight: bold"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; font-weight: bold; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td colspan="2" id="xdx_492_20220701__20220930_zREXeOkpHuZi" style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; font-weight: bold; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">2022</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; font-weight: bold"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; font-weight: bold; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td colspan="2" id="xdx_49B_20230101__20230930_zevHZXyBsUN2" style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; font-weight: bold; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">2023</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; font-weight: bold"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; font-weight: bold; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td colspan="2" id="xdx_493_20220101__20220930_zVT03B1IbiBc" style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; font-weight: bold; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">2022</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; font-weight: bold"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td></tr> <tr style="font-family: Times New Roman, Times, Serif; vertical-align: bottom"> <td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">Classification within the Condensed Consolidated Statements of Operations and Comprehensive Income (Loss)</span></span></td><td style="font-family: Times New Roman, Times, Serif; font-weight: bold; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td colspan="6" style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; font-weight: bold; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">For the Three Months Ended<br/> September 30,</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; font-weight: bold"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; font-weight: bold; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td colspan="6" style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; font-weight: bold; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">For the Nine Months Ended <br/> September 30,</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; font-weight: bold"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td></tr> <tr style="font-family: Times New Roman, Times, Serif; vertical-align: bottom"> <td style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; font-weight: bold"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">Type</span></span></td><td style="font-family: Times New Roman, Times, Serif; font-weight: bold; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; font-weight: bold; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">2023</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; font-weight: bold"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; font-weight: bold; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; font-weight: bold; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">2022</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; font-weight: bold"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; font-weight: bold; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; font-weight: bold; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">2023</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; font-weight: bold"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; font-weight: bold; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; font-weight: bold; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">2022</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; font-weight: bold"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td></tr> <tr id="xdx_40E_eus-gaap--Depreciation_hus-gaap--IncomeStatementLocationAxis__us-gaap--CostOfSalesMember_zz5FNO7Hkbw3" style="font-family: Times New Roman, Times, Serif; vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-family: Times New Roman, Times, Serif; width: 40%"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">Cost of sales</span></span></td><td style="font-family: Times New Roman, Times, Serif; width: 2%"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; width: 1%; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">$</span></span></td><td style="font-family: Times New Roman, Times, Serif; width: 11%; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-hidden: xdx2ixbrl1091">—</span></span></span></td><td style="font-family: Times New Roman, Times, Serif; width: 1%; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; width: 2%"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; width: 1%; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">$</span></span></td><td style="font-family: Times New Roman, Times, Serif; width: 11%; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">61,747</span></span></td><td style="font-family: Times New Roman, Times, Serif; width: 1%; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; width: 2%"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; width: 1%; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">$</span></span></td><td style="font-family: Times New Roman, Times, Serif; width: 11%; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-hidden: xdx2ixbrl1093">—</span></span></span></td><td style="font-family: Times New Roman, Times, Serif; width: 1%; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; width: 2%"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; width: 1%; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">$</span></span></td><td style="font-family: Times New Roman, Times, Serif; width: 11%; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">199,555</span></span></td><td style="font-family: Times New Roman, Times, Serif; width: 1%; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td></tr> <tr id="xdx_405_eus-gaap--Depreciation_hus-gaap--IncomeStatementLocationAxis__us-gaap--GeneralAndAdministrativeExpenseMember_zXNoFiLTwgCd" style="font-family: Times New Roman, Times, Serif; vertical-align: bottom; background-color: White"> <td style="font-family: Times New Roman, Times, Serif; text-align: left; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">General and administrative</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">93,614</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">48,429</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">293,538</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">138,271</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td></tr> <tr id="xdx_406_eus-gaap--Depreciation_zTRMtpv0sWNb" style="font-family: Times New Roman, Times, Serif; vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-family: Times New Roman, Times, Serif; text-align: left; padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">Depreciation expense</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="border-bottom: Black 2.5pt double; font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">$</span></span></td><td style="border-bottom: Black 2.5pt double; font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">93,614</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="border-bottom: Black 2.5pt double; font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">$</span></span></td><td style="border-bottom: Black 2.5pt double; font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">110,176</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="border-bottom: Black 2.5pt double; font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">$</span></span></td><td style="border-bottom: Black 2.5pt double; font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">293,538</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="border-bottom: Black 2.5pt double; font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">$</span></span></td><td style="border-bottom: Black 2.5pt double; font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">337,826</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td></tr> </table> <p id="xdx_8A8_z53oVSouvlMb" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i>Intangible Assets, Net</i></b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p id="xdx_89C_eus-gaap--ScheduleOfFiniteLivedIntangibleAssetsTableTextBlock_zS4DyqSoL5fl" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">As of September 30, 2023 and December 31, 2022, intangible assets, net, other than goodwill, consist of the following:</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; display: none; margin: 0pt 0; text-align: justify; text-indent: 33.75pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> <span id="xdx_8B1_zJzk2UMnjtrg">Schedule of Intangible Assets, Net</span></span></span><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="font-family: Times New Roman, Times, Serif; vertical-align: bottom"> <td style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; font-weight: bold"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">Name</span></span></td><td style="font-family: Times New Roman, Times, Serif; font-weight: bold; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; font-weight: bold; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">Estimated Life (Years)</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; font-weight: bold"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; font-weight: bold; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; font-weight: bold; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">Balance as of December 31, 2022</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; font-weight: bold"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; font-weight: bold; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; font-weight: bold; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">Additions</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; font-weight: bold"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; font-weight: bold; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; font-weight: bold; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">Amortization</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; font-weight: bold"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; font-weight: bold; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; font-weight: bold; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">Balance as of <br/> September 30, 2023</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; font-weight: bold"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td></tr> <tr style="font-family: Times New Roman, Times, Serif; vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-family: Times New Roman, Times, Serif; width: 35%; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">Intellectual property/technology</span></span></td><td style="font-family: Times New Roman, Times, Serif; width: 2%"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; width: 1%; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; width: 9%; text-align: center"><span style="-sec-ix-redline: true"><span id="xdx_90A_eus-gaap--FiniteLivedIntangibleAssetUsefulLife_iI_dtY_c20230930__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--IntellectualPropertyMember__srt--RangeAxis__srt--MinimumMember_zpbg143ld1ok" style="font-family: Times New Roman, Times, Serif; font-size: 10pt">5</span></span><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">-<span id="xdx_90B_eus-gaap--FiniteLivedIntangibleAssetUsefulLife_iI_dtY_c20230930__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--IntellectualPropertyMember__srt--RangeAxis__srt--MaximumMember_ziu7m3Xx3iwh">7</span></span></span></td><td style="font-family: Times New Roman, Times, Serif; width: 1%; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; width: 2%"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; width: 1%; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">$</span></span></td><td id="xdx_98C_eus-gaap--FiniteLivedIntangibleAssetsNet_iS_c20230101__20230930__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--IntellectualPropertyMember_zVPJ4r2AdV53" style="font-family: Times New Roman, Times, Serif; width: 9%; text-align: right" title="Beginning balance"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">4,473,861</span></span></td><td style="font-family: Times New Roman, Times, Serif; width: 1%; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; width: 2%"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; width: 1%; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">$</span></span></td><td id="xdx_984_eus-gaap--FiniteLivedIntangibleAssetsPeriodIncreaseDecrease_c20230101__20230930__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--IntellectualPropertyMember_zSwd2SeHkNg5" style="font-family: Times New Roman, Times, Serif; width: 9%; text-align: right" title="Additions"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-hidden: xdx2ixbrl1112">—</span></span></span></td><td style="font-family: Times New Roman, Times, Serif; width: 1%; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; width: 2%"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; width: 1%; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">$</span></span></td><td id="xdx_981_eus-gaap--AmortizationOfIntangibleAssets_iN_di_c20230101__20230930__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--IntellectualPropertyMember_z3e98qTKV6gc" style="font-family: Times New Roman, Times, Serif; width: 9%; text-align: right" title="Amortization"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">(606,726</span></span></td><td style="font-family: Times New Roman, Times, Serif; width: 1%; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">)</span></span></td><td style="font-family: Times New Roman, Times, Serif; width: 2%"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; width: 1%; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">$</span></span></td><td id="xdx_980_eus-gaap--FiniteLivedIntangibleAssetsNet_iE_c20230101__20230930__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--IntellectualPropertyMember_zAy7kk4b17ad" style="font-family: Times New Roman, Times, Serif; width: 9%; text-align: right" title="Ending balance"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">3,867,135</span></span></td><td style="font-family: Times New Roman, Times, Serif; width: 1%; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td></tr> <tr style="font-family: Times New Roman, Times, Serif; vertical-align: bottom; background-color: White"> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">Customer base</span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: center"><span style="-sec-ix-redline: true"><span id="xdx_902_eus-gaap--FiniteLivedIntangibleAssetUsefulLife_iI_dtY_c20230930__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--CustomerRelatedIntangibleAssetsMember__srt--RangeAxis__srt--MinimumMember_zvYCFrX5IQ85" style="font-family: Times New Roman, Times, Serif; font-size: 10pt">3</span></span><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">-<span id="xdx_90C_eus-gaap--FiniteLivedIntangibleAssetUsefulLife_iI_dtY_c20230930__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--CustomerRelatedIntangibleAssetsMember__srt--RangeAxis__srt--MaximumMember_z7aa4BKpZyLc">10</span></span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td id="xdx_98D_eus-gaap--FiniteLivedIntangibleAssetsNet_iS_c20230101__20230930__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--CustomerRelatedIntangibleAssetsMember_zHDC4cMeR48l" style="font-family: Times New Roman, Times, Serif; text-align: right" title="Beginning balance"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">2,885,657</span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td id="xdx_98E_eus-gaap--FiniteLivedIntangibleAssetsPeriodIncreaseDecrease_c20230101__20230930__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--CustomerRelatedIntangibleAssetsMember_zGlg5xWsFF96" style="font-family: Times New Roman, Times, Serif; text-align: right" title="Additions"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-hidden: xdx2ixbrl1122">—</span></span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td id="xdx_98A_eus-gaap--AmortizationOfIntangibleAssets_iN_di_c20230101__20230930__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--CustomerRelatedIntangibleAssetsMember_zzopGGwa14S3" style="font-family: Times New Roman, Times, Serif; text-align: right" title="Amortization"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">(853,248</span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">)</span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td id="xdx_98F_eus-gaap--FiniteLivedIntangibleAssetsNet_iE_c20230101__20230930__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--CustomerRelatedIntangibleAssetsMember_zzodMKbK0jV2" style="font-family: Times New Roman, Times, Serif; text-align: right" title="Ending balance"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">2,032,409</span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td></tr> <tr style="font-family: Times New Roman, Times, Serif; vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">Tradenames and trademarks</span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: center"><span style="-sec-ix-redline: true"><span id="xdx_900_eus-gaap--FiniteLivedIntangibleAssetUsefulLife_iI_dtY_c20230930__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--TrademarksAndTradeNamesMember__srt--RangeAxis__srt--MinimumMember_zy4lytL2o5Jh" style="font-family: Times New Roman, Times, Serif; font-size: 10pt">5</span></span><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">-<span id="xdx_901_eus-gaap--FiniteLivedIntangibleAssetUsefulLife_iI_dtY_c20230930__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--TrademarksAndTradeNamesMember__srt--RangeAxis__srt--MaximumMember_zR1IoultEWFg">10</span></span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td id="xdx_986_eus-gaap--FiniteLivedIntangibleAssetsNet_iS_c20230101__20230930__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--TrademarksAndTradeNamesMember_zLOdGoMy6aik" style="font-family: Times New Roman, Times, Serif; text-align: right" title="Beginning balance"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">1,757,891</span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td id="xdx_989_eus-gaap--FiniteLivedIntangibleAssetsPeriodIncreaseDecrease_c20230101__20230930__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--TrademarksAndTradeNamesMember_zn89HmAXAnE7" style="font-family: Times New Roman, Times, Serif; text-align: right" title="Additions"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-hidden: xdx2ixbrl1132">—</span></span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td id="xdx_982_eus-gaap--AmortizationOfIntangibleAssets_iN_di_c20230101__20230930__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--TrademarksAndTradeNamesMember_zVqkl8g1RpG" style="font-family: Times New Roman, Times, Serif; text-align: right" title="Amortization"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">(155,958</span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">)</span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td id="xdx_98A_eus-gaap--FiniteLivedIntangibleAssetsNet_iE_c20230101__20230930__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--TrademarksAndTradeNamesMember_z01AB8Gws9xi" style="font-family: Times New Roman, Times, Serif; text-align: right" title="Ending balance"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">1,601,933</span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td></tr> <tr style="font-family: Times New Roman, Times, Serif; vertical-align: bottom; background-color: White"> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">Non-compete agreement</span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: center"><span style="-sec-ix-redline: true"><span id="xdx_90F_eus-gaap--FiniteLivedIntangibleAssetUsefulLife_iI_dtY_c20230930__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--NoncompeteAgreementsMember__srt--RangeAxis__srt--MinimumMember_zSIkaddp5wg7" style="font-family: Times New Roman, Times, Serif; font-size: 10pt">2</span></span><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">-<span id="xdx_900_eus-gaap--FiniteLivedIntangibleAssetUsefulLife_iI_dtY_c20230930__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--NoncompeteAgreementsMember__srt--RangeAxis__srt--MaximumMember_zydVkz9RU7Zf">4</span></span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td id="xdx_986_eus-gaap--FiniteLivedIntangibleAssetsNet_iS_c20230101__20230930__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--NoncompeteAgreementsMember_zFW5cl4JRxq2" style="font-family: Times New Roman, Times, Serif; text-align: right" title="Beginning balance"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">335,933</span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td id="xdx_98F_eus-gaap--FiniteLivedIntangibleAssetsPeriodIncreaseDecrease_c20230101__20230930__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--NoncompeteAgreementsMember_zyBWhDcc5b9a" style="font-family: Times New Roman, Times, Serif; text-align: right" title="Additions"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-hidden: xdx2ixbrl1142">—</span></span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td id="xdx_98D_eus-gaap--AmortizationOfIntangibleAssets_iN_di_c20230101__20230930__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--NoncompeteAgreementsMember_z1NF9yE3nYt4" style="font-family: Times New Roman, Times, Serif; text-align: right" title="Amortization"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">(335,933</span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">)</span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td id="xdx_984_eus-gaap--FiniteLivedIntangibleAssetsNet_iE_c20230101__20230930__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--NoncompeteAgreementsMember_zcuOue4LPXC1" style="font-family: Times New Roman, Times, Serif; text-align: right" title="Ending balance"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-hidden: xdx2ixbrl1146">—</span></span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td></tr> <tr style="font-family: Times New Roman, Times, Serif; vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">Platform development costs</span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: center"><span style="-sec-ix-redline: true"><span id="xdx_90C_eus-gaap--FiniteLivedIntangibleAssetUsefulLife_iI_dtY_c20230930__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__custom--PlatformDevelopmentCostsMember_zajAydM5qTb2" style="font-family: Times New Roman, Times, Serif">3</span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td id="xdx_988_eus-gaap--FiniteLivedIntangibleAssetsNet_iS_c20230101__20230930__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__custom--PlatformDevelopmentCostsMember_zCOfzvR0Prwb" style="font-family: Times New Roman, Times, Serif; text-align: right" title="Beginning balance"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">1,332,516</span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td id="xdx_98A_eus-gaap--FiniteLivedIntangibleAssetsPeriodIncreaseDecrease_c20230101__20230930__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__custom--PlatformDevelopmentCostsMember_zFuHGOGm5TX8" style="font-family: Times New Roman, Times, Serif; text-align: right" title="Additions"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">297,596</span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td id="xdx_986_eus-gaap--AmortizationOfIntangibleAssets_iN_di_c20230101__20230930__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__custom--PlatformDevelopmentCostsMember_zbTdkvG73Kfl" style="font-family: Times New Roman, Times, Serif; text-align: right" title="Amortization"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">(529,378</span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">)</span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td id="xdx_980_eus-gaap--FiniteLivedIntangibleAssetsNet_iE_c20230101__20230930__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__custom--PlatformDevelopmentCostsMember_zUAMQbHvPdCj" style="font-family: Times New Roman, Times, Serif; text-align: right" title="Ending balance"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">1,100,734</span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td></tr> <tr style="font-family: Times New Roman, Times, Serif; vertical-align: bottom; background-color: White"> <td style="font-family: Times New Roman, Times, Serif; text-align: left; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">Internal use software costs</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; text-align: center"><span style="-sec-ix-redline: true"><span id="xdx_90E_eus-gaap--FiniteLivedIntangibleAssetUsefulLife_iI_dtY_c20230930__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--ComputerSoftwareIntangibleAssetMember_zj9ercazGuO7" style="font-family: Times New Roman, Times, Serif">3</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td id="xdx_985_eus-gaap--FiniteLivedIntangibleAssetsNet_iS_c20230101__20230930__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--ComputerSoftwareIntangibleAssetMember_zSWifecW1VOc" style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: right" title="Beginning balance"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">721,795</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td id="xdx_983_eus-gaap--FiniteLivedIntangibleAssetsPeriodIncreaseDecrease_c20230101__20230930__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--ComputerSoftwareIntangibleAssetMember_zjFgT7Upran3" style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: right" title="Additions"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">171,516</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td id="xdx_980_eus-gaap--AmortizationOfIntangibleAssets_iN_di_c20230101__20230930__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--ComputerSoftwareIntangibleAssetMember_zOhH1l8j5BKj" style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: right" title="Amortization"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">(252,863</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">)</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td id="xdx_985_eus-gaap--FiniteLivedIntangibleAssetsNet_iE_c20230101__20230930__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--ComputerSoftwareIntangibleAssetMember_zZzruqFwKRa4" style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: right" title="Ending balance"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">640,448</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td></tr> <tr style="font-family: Times New Roman, Times, Serif; vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-family: Times New Roman, Times, Serif; text-align: left; padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">Intangibles assets, net</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="border-bottom: Black 2.5pt double; font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">$</span></span></td><td id="xdx_98A_eus-gaap--FiniteLivedIntangibleAssetsNet_iS_c20230101__20230930_zWru8JZXb6h5" style="border-bottom: Black 2.5pt double; font-family: Times New Roman, Times, Serif; text-align: right" title="Beginning balance"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">11,507,653</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="border-bottom: Black 2.5pt double; font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">$</span></span></td><td id="xdx_985_eus-gaap--FiniteLivedIntangibleAssetsPeriodIncreaseDecrease_c20230101__20230930_zxWm8jymytml" style="border-bottom: Black 2.5pt double; font-family: Times New Roman, Times, Serif; text-align: right" title="Additions"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">469,112</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="border-bottom: Black 2.5pt double; font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">$</span></span></td><td id="xdx_98F_eus-gaap--AmortizationOfIntangibleAssets_iN_di_c20230101__20230930_zXQUWMiIGFH5" style="border-bottom: Black 2.5pt double; font-family: Times New Roman, Times, Serif; text-align: right" title="Amortization"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">(2,734,106</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">)</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="border-bottom: Black 2.5pt double; font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">$</span></span></td><td id="xdx_987_eus-gaap--FiniteLivedIntangibleAssetsNet_iE_c20230101__20230930_zHWf6dbawsx9" style="border-bottom: Black 2.5pt double; font-family: Times New Roman, Times, Serif; text-align: right" title="Ending balance"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">9,242,659</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td></tr> </table> <p id="xdx_8A2_zhzmd5QrSLmb" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">As of September 30, 2023, the weighted average remaining amortization period in years is <span id="xdx_901_eus-gaap--FiniteLivedIntangibleAssetsRemainingAmortizationPeriod1_iI_dtY_c20230930_z82ahyQ4PAzg">4.07 </span></span></span><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">years. For the three and nine months ended September 30, 2023 and 2022, amortization expense was $<span id="xdx_90B_eus-gaap--AdjustmentForAmortization_c20230701__20230930_zup6hBQsfbRh">919,774 </span></span></span><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">and $<span id="xdx_907_eus-gaap--AdjustmentForAmortization_c20230101__20230930_zi1A2NTeMXW7">932,880</span></span></span><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">, respectively, and $<span id="xdx_90F_eus-gaap--AdjustmentForAmortization_c20220701__20220930_zBemd8RKkM22">2,734,106</span></span></span> <span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">and $<span id="xdx_90F_eus-gaap--AdjustmentForAmortization_c20220101__20220930_zZWjk3ed8uT7">2,549,418</span></span></span><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">, respectively.</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p id="xdx_89C_eus-gaap--ScheduleofFiniteLivedIntangibleAssetsFutureAmortizationExpenseTableTextBlock_zOTqqSaYF1m4" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">For the following years ending, the future amortization expenses consist of the following:</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </p> <p style="font: 10pt Times New Roman, Times, Serif; display: none; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><span style="-sec-ix-redline: true"><span id="xdx_8B1_zLPtrTdxyZRb" style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Schedule of Intangible Assets Future Amortization Expenses</span></span></p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="display: none; font-family: Times New Roman, Times, Serif; vertical-align: bottom"> <td style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; font-weight: bold"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">Name</span></span></td><td style="font-family: Times New Roman, Times, Serif; font-weight: bold; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td colspan="2" id="xdx_480_eus-gaap--FiniteLivedIntangibleAssetsAmortizationExpenseRemainderOfFiscalYear_iI_zKQYVbmpssRa" style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; font-weight: bold; text-align: center"><span style="-sec-ix-redline: true"><span id="xdx_91C_eus-gaap--FiniteLivedIntangibleAssetsAmortizationExpenseRemainderOfFiscalYear_z9aql4wRWNP7" style="font-family: Times New Roman, Times, Serif">(rest of year)</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; font-weight: bold"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; font-weight: bold; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td colspan="2" id="xdx_48A_eus-gaap--FiniteLivedIntangibleAssetsAmortizationExpenseNextTwelveMonths_iI_zFEIw1IKdRv9" style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; font-weight: bold; text-align: center"><span style="-sec-ix-redline: true"><span id="xdx_913_eus-gaap--FiniteLivedIntangibleAssetsAmortizationExpenseNextTwelveMonths_zitwFvmVulch" style="font-family: Times New Roman, Times, Serif">Year One</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; font-weight: bold"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; font-weight: bold; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td colspan="2" id="xdx_480_eus-gaap--FiniteLivedIntangibleAssetsAmortizationExpenseYearTwo_iI_zTwfomrgLDRk" style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; font-weight: bold; text-align: center"><span style="-sec-ix-redline: true"><span id="xdx_91B_eus-gaap--FiniteLivedIntangibleAssetsAmortizationExpenseYearTwo_zgMdPjIL0AE6" style="font-family: Times New Roman, Times, Serif">Year Two</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; font-weight: bold"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; font-weight: bold; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td colspan="2" id="xdx_48F_eus-gaap--FiniteLivedIntangibleAssetsAmortizationExpenseYearThree_iI_zi4r6y72jHid" style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; font-weight: bold; text-align: center"><span style="-sec-ix-redline: true"><span id="xdx_91E_eus-gaap--FiniteLivedIntangibleAssetsAmortizationExpenseYearThree_zeb26gEtmjNe" style="font-family: Times New Roman, Times, Serif">Year Three</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; font-weight: bold"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; font-weight: bold; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td colspan="2" id="xdx_485_eus-gaap--FiniteLivedIntangibleAssetsAmortizationExpenseYearFour_iI_zj46awsILMFg" style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; font-weight: bold; text-align: center"><span style="-sec-ix-redline: true"><span id="xdx_912_eus-gaap--FiniteLivedIntangibleAssetsAmortizationExpenseYearFour_zeyOwLsooaUg" style="font-family: Times New Roman, Times, Serif">Year Four</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; font-weight: bold"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td colspan="2" id="xdx_48E_ecustom--FiniteLivedIntangibleAssetsAmortizationExpenseAfterYearFour_iI_zWacZaFRPQh3" style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> <span id="xdx_914_ecustom--FiniteLivedIntangibleAssetsAmortizationExpenseAfterYearFour_zMnPZ4eP7pD"><b>Thereafter</b></span></span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; font-weight: bold; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td colspan="2" id="xdx_487_eus-gaap--FiniteLivedIntangibleAssetsNet_iI_zbYHHRniHt0a" style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; font-weight: bold; text-align: center"><span style="-sec-ix-redline: true"><span id="xdx_914_eus-gaap--FiniteLivedIntangibleAssetsNet_zRCTBpQ1Eic3" style="font-family: Times New Roman, Times, Serif">Total</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; font-weight: bold"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td></tr> <tr style="font-family: Times New Roman, Times, Serif; vertical-align: bottom"> <td style="font-family: Times New Roman, Times, Serif; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; font-weight: bold; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td colspan="26" style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; font-weight: bold; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">For the Years Ending December 31,</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; font-weight: bold"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td></tr> <tr style="font-family: Times New Roman, Times, Serif; vertical-align: bottom"> <td style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; font-weight: bold"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">Name</span></span></td><td style="font-family: Times New Roman, Times, Serif; font-weight: bold; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; font-weight: bold; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">(rest of year) 2023</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; font-weight: bold"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; font-weight: bold; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; font-weight: bold; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">2024</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; font-weight: bold"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; font-weight: bold; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; font-weight: bold; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">2025</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; font-weight: bold"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; font-weight: bold; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; font-weight: bold; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">2026</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; font-weight: bold"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; font-weight: bold; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; font-weight: bold; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">2027</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; font-weight: bold"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> <b>Thereafter</b></span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; font-weight: bold; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; font-weight: bold; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">Total</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; font-weight: bold"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td></tr> <tr id="xdx_416_20230930__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--IntellectualPropertyMember_zQTie2qlqZ94" style="font-family: Times New Roman, Times, Serif; vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-family: Times New Roman, Times, Serif; width: 37%; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">Intellectual property/technology</span></span></td><td style="font-family: Times New Roman, Times, Serif; width: 2%"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; width: 1%; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">$</span></span></td><td style="font-family: Times New Roman, Times, Serif; width: 5%; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">202,242</span></span></td><td style="font-family: Times New Roman, Times, Serif; width: 1%; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; width: 2%"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; width: 1%; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">$</span></span></td><td style="font-family: Times New Roman, Times, Serif; width: 5%; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">808,968</span></span></td><td style="font-family: Times New Roman, Times, Serif; width: 1%; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; width: 2%"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; width: 1%; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">$</span></span></td><td style="font-family: Times New Roman, Times, Serif; width: 5%; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">808,968</span></span></td><td style="font-family: Times New Roman, Times, Serif; width: 1%; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; width: 2%"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; width: 1%; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">$</span></span></td><td style="font-family: Times New Roman, Times, Serif; width: 5%; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">808,968</span></span></td><td style="font-family: Times New Roman, Times, Serif; width: 1%; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; width: 2%"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; width: 1%; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">$</span></span></td><td style="font-family: Times New Roman, Times, Serif; width: 5%; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">808,968</span></span></td><td style="font-family: Times New Roman, Times, Serif; width: 1%; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; width: 2%"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; width: 1%; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">$</span></span></td><td style="font-family: Times New Roman, Times, Serif; width: 5%; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">429,021</span></span></td><td style="font-family: Times New Roman, Times, Serif; width: 1%; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; width: 2%"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; width: 1%; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">$</span></span></td><td style="font-family: Times New Roman, Times, Serif; width: 5%; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">3,867,135</span></span></td><td style="font-family: Times New Roman, Times, Serif; width: 1%; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td></tr> <tr id="xdx_413_20230930__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--CustomerRelatedIntangibleAssetsMember_zmi768X8jcMf" style="font-family: Times New Roman, Times, Serif; vertical-align: bottom; background-color: White"> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">Customer base</span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">284,417</span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">889,364</span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">141,145</span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">141,145</span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">141,145</span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">435,193</span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">2,032,409</span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td></tr> <tr id="xdx_41B_20230930__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--TrademarksAndTradeNamesMember_z7S0RV9jsiv5" style="font-family: Times New Roman, Times, Serif; vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">Tradenames and trademarks</span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">51,986</span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">207,944</span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">207,944</span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">207,944</span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">207,944</span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">718,171</span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">1,601,933</span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td></tr> <tr id="xdx_415_20230930__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__custom--PlatformDevelopmentCostsMember_z1ZdbnQ3nadf" style="font-family: Times New Roman, Times, Serif; vertical-align: bottom; background-color: White"> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">Platform development costs</span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">190,040</span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">586,950</span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">281,613</span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">42,131</span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-hidden: xdx2ixbrl1212">—</span></span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-hidden: xdx2ixbrl1213">—</span></span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">1,100,734</span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td></tr> <tr id="xdx_413_20230930__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--ComputerSoftwareIntangibleAssetMember_zKL1vYRW1YY2" style="font-family: Times New Roman, Times, Serif; vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-family: Times New Roman, Times, Serif; text-align: left; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">Internal use software costs</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">83,192</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">355,947</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">180,461</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">20,848</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-hidden: xdx2ixbrl1219">—</span></span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-hidden: xdx2ixbrl1220">—</span></span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">640,448</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td></tr> <tr id="xdx_415_20230930_zesPeOT8hFgj" style="font-family: Times New Roman, Times, Serif; vertical-align: bottom; background-color: White"> <td style="font-family: Times New Roman, Times, Serif; text-align: left; padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">Intangible assets, net</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="border-bottom: Black 2.5pt double; font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">$</span></span></td><td style="border-bottom: Black 2.5pt double; font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">811,877</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="border-bottom: Black 2.5pt double; font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">$</span></span></td><td style="border-bottom: Black 2.5pt double; font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">2,849,173</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="border-bottom: Black 2.5pt double; font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">$</span></span></td><td style="border-bottom: Black 2.5pt double; font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">1,620,131</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="border-bottom: Black 2.5pt double; font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">$</span></span></td><td style="border-bottom: Black 2.5pt double; font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">1,221,036</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="border-bottom: Black 2.5pt double; font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">$</span></span></td><td style="border-bottom: Black 2.5pt double; font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">1,158,057</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="border-bottom: Black 2.5pt double; font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">$</span></span></td><td style="border-bottom: Black 2.5pt double; font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">1,582,385</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="border-bottom: Black 2.5pt double; font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">$</span></span></td><td style="border-bottom: Black 2.5pt double; font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">9,242,659</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td></tr> </table> <p id="xdx_8A5_zDdR0KkJlxQd" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b> </b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>AGEAGLE AERIAL SYSTEMS INC. AND SUBSIDIARIES</b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS</b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2023 AND 2022</b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>(UNAUDITED)</b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b> </b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Note 3 – Balance Sheets - Continued</b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i>Accrued Liabilities</i></b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p id="xdx_890_eus-gaap--ScheduleOfAccountsPayableAndAccruedLiabilitiesTableTextBlock_zyxAlTrutnQl" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">As of September 30, 2023 and December 31, 2022, accrued liabilities consist of the following:</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </p> <p style="font: 10pt Times New Roman, Times, Serif; display: none; margin: 0pt 0; text-align: justify; text-indent: 33.75pt"><span style="-sec-ix-redline: true"><span id="xdx_8B3_zw4ov6jYG2F8" style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Schedule of Accrued Expenses</span></span></p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="font-family: Times New Roman, Times, Serif; vertical-align: bottom"> <td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; font-weight: bold; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td colspan="2" id="xdx_494_20230930_zIkLyG1AHUFd" style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; font-weight: bold; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">September 30, 2023</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; font-weight: bold"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; font-weight: bold; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td colspan="2" id="xdx_499_20221231_zf8apbfEAL8" style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; font-weight: bold; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">December 31, 2022</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; font-weight: bold"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td></tr> <tr id="xdx_40E_ecustom--AccruedPurchasesAndCustomerDeposits_iI_pp0p0_maALCANz7Dr_zZw82161fSAl" style="font-family: Times New Roman, Times, Serif; vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-family: Times New Roman, Times, Serif; width: 60%; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">Accrued purchases and customer deposits</span></span></td><td style="font-family: Times New Roman, Times, Serif; width: 2%"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; width: 1%; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">$</span></span></td><td style="font-family: Times New Roman, Times, Serif; width: 16%; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">220,784</span></span></td><td style="font-family: Times New Roman, Times, Serif; width: 1%; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; width: 2%"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; width: 1%; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">$</span></span></td><td style="font-family: Times New Roman, Times, Serif; width: 16%; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">102,319</span></span></td><td style="font-family: Times New Roman, Times, Serif; width: 1%; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td></tr> <tr id="xdx_408_eus-gaap--EmployeeRelatedLiabilitiesCurrentAndNoncurrent_iI_pp0p0_maALCANz7Dr_z4exhV6PfE8d" style="font-family: Times New Roman, Times, Serif; vertical-align: bottom; background-color: White"> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">Accrued compensation and related liabilities</span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">406,739</span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">774,916</span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td></tr> <tr id="xdx_404_eus-gaap--ProductWarrantyAccrualClassifiedCurrent_iI_pp0p0_maALCANz7Dr_zNaEGjiWpZz4" style="font-family: Times New Roman, Times, Serif; vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">Provision for warranty expense</span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">279,394</span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">288,807</span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td></tr> <tr id="xdx_408_eus-gaap--DividendsPayableCurrentAndNoncurrent_iI_pp0p0_maALCANz7Dr_zjELc7bJfGGa" style="font-family: Times New Roman, Times, Serif; vertical-align: bottom; background-color: White"> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">Accrued dividends</span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">342,873</span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">172,596</span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td></tr> <tr id="xdx_402_eus-gaap--InterestPayableCurrent_iI_pp0p0_maALCANz7Dr_zQPf26j9hpwk" style="font-family: Times New Roman, Times, Serif; vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">Accrued interest</span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">236,172</span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-hidden: xdx2ixbrl1245">—</span></span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td></tr> <tr id="xdx_400_eus-gaap--AccruedProfessionalFeesCurrentAndNoncurrent_iI_pp0p0_maALCANz7Dr_zjSI8yiOhGue" style="font-family: Times New Roman, Times, Serif; vertical-align: bottom; background-color: White"> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">Accrued professional fees</span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">138,250</span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">262,737</span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td></tr> <tr id="xdx_40F_eus-gaap--OtherAccruedLiabilitiesCurrent_iI_pp0p0_maALCANz7Dr_zS5VoFJExj1d" style="font-family: Times New Roman, Times, Serif; vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">Other</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">26,397</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">79,331</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td></tr> <tr id="xdx_403_eus-gaap--OtherAccruedLiabilitiesCurrentAndNoncurrent_iI_pp0p0_zHY3GCYkT699" style="display: none; vertical-align: bottom; background-color: White"> <td style="padding-bottom: 1.5pt"><span style="-sec-ix-redline: true">Other </span></td><td style="padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 1.5pt solid; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="border-bottom: Black 1.5pt solid; text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl1253">-</span></td><td style="padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 1.5pt solid; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="border-bottom: Black 1.5pt solid; text-align: right"><span style="-sec-ix-redline: true">354,246</span></td><td style="padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> <tr id="xdx_404_eus-gaap--AccruedLiabilitiesCurrentAndNoncurrent_iTI_pp0p0_mtALCANz7Dr_zgoTarLOwGjl" style="font-family: Times New Roman, Times, Serif; vertical-align: bottom; background-color: White"> <td style="font-family: Times New Roman, Times, Serif; text-align: left; padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">Total accrued liabilities</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="border-bottom: Black 2.5pt double; font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">$</span></span></td><td style="border-bottom: Black 2.5pt double; font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">1,650,609</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="border-bottom: Black 2.5pt double; font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">$</span></span></td><td style="border-bottom: Black 2.5pt double; font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">1,680,706</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td></tr> </table> <p id="xdx_8A6_zBi8imjLbuje" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p id="xdx_890_eus-gaap--ScheduleOfAccountsNotesLoansAndFinancingReceivableTextBlock_ztxfQffYOXK2" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">As of September 30, 2023 and December 31, 2022, accounts receivable, net consist of the following: </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </p> <p style="font: 10pt Times New Roman, Times, Serif; display: none; margin: 0pt 0; text-align: justify"><span style="-sec-ix-redline: true"><span id="xdx_8B3_zY8ImIaIMcDc" style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Schedule of Accounts Receivable, Net</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="font-family: Times New Roman, Times, Serif; vertical-align: bottom"> <td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; font-weight: bold; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td colspan="2" id="xdx_496_20230930_zqhjXomjqNYa" style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; font-weight: bold; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">September 30, 2023</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; font-weight: bold"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; font-weight: bold; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td colspan="2" id="xdx_494_20221231_zTsidtsjhaXa" style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; font-weight: bold; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">December 31, 2022</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; font-weight: bold"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td></tr> <tr id="xdx_40A_eus-gaap--AccountsReceivableGross_iI_maARNCzOx9_zQtQGsCaeYrf" style="font-family: Times New Roman, Times, Serif; vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-family: Times New Roman, Times, Serif; width: 60%; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">Accounts receivable</span></span></td><td style="font-family: Times New Roman, Times, Serif; width: 2%"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; width: 1%; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">$</span></span></td><td style="font-family: Times New Roman, Times, Serif; width: 16%; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">2,110,725</span></span></td><td style="font-family: Times New Roman, Times, Serif; width: 1%; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; width: 2%"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; width: 1%; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">$</span></span></td><td style="font-family: Times New Roman, Times, Serif; width: 16%; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">2,229,840</span></span></td><td style="font-family: Times New Roman, Times, Serif; width: 1%; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td></tr> <tr id="xdx_40C_eus-gaap--AllowanceForDoubtfulAccountsReceivable_iNI_di_msARNCzOx9_z2Jz7HtFBJA9" style="font-family: Times New Roman, Times, Serif; vertical-align: bottom; background-color: White"> <td style="font-family: Times New Roman, Times, Serif; text-align: left; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">Less: Provision for doubtful accounts</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">(95,680</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">)</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">(16,800</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">)</span></span></td></tr> <tr id="xdx_405_eus-gaap--AccountsReceivableNetCurrent_iI_mtARNCzOx9_zfPZIavY8pF3" style="font-family: Times New Roman, Times, Serif; vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-family: Times New Roman, Times, Serif; text-align: left; padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">Accounts receivable, net</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="border-bottom: Black 2.5pt double; font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">$</span></span></td><td style="border-bottom: Black 2.5pt double; font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">2,015,045</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="border-bottom: Black 2.5pt double; font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">$</span></span></td><td style="border-bottom: Black 2.5pt double; font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">2,213,040</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td></tr> </table> 2110725 2229840 95680 16800 2015045 2213040 <p id="xdx_897_eus-gaap--ScheduleOfInventoryCurrentTableTextBlock_zQGVnauyiBOk" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">As of September 30, 2023 and December 31, 2022, inventories, net consist of the following:</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </p> <p style="font: 10pt Times New Roman, Times, Serif; display: none; margin: 0pt 0"><span style="-sec-ix-redline: true"><span id="xdx_8B0_zPQdM8k3mvm8" style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Schedule of Inventories</span></span></p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="font-family: Times New Roman, Times, Serif; vertical-align: bottom"> <td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; font-weight: bold; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td colspan="2" id="xdx_495_20230930_zn2t9v0QWVMe" style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; font-weight: bold; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">September 30, 2023</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; font-weight: bold"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; font-weight: bold; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td colspan="2" id="xdx_494_20221231_z9Fsw1twM851" style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; font-weight: bold; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">December 31, 2022</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; font-weight: bold"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td></tr> <tr id="xdx_400_eus-gaap--InventoryRawMaterials_iI_pp0p0_maIGzHYv_zd69hHayT43j" style="font-family: Times New Roman, Times, Serif; vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-family: Times New Roman, Times, Serif; width: 60%; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">Raw materials</span></span></td><td style="font-family: Times New Roman, Times, Serif; width: 2%"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; width: 1%; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">$</span></span></td><td style="font-family: Times New Roman, Times, Serif; width: 16%; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">4,334,765</span></span></td><td style="font-family: Times New Roman, Times, Serif; width: 1%; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; width: 2%"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; width: 1%; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">$</span></span></td><td style="font-family: Times New Roman, Times, Serif; width: 16%; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">5,288,206</span></span></td><td style="font-family: Times New Roman, Times, Serif; width: 1%; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td></tr> <tr id="xdx_401_eus-gaap--InventoryWorkInProcess_iI_pp0p0_maIGzHYv_zeoI1WHAUUmk" style="font-family: Times New Roman, Times, Serif; vertical-align: bottom; background-color: White"> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">Work-in process</span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">714,596</span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">1,106,056</span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td></tr> <tr id="xdx_403_eus-gaap--InventoryFinishedGoods_iI_pp0p0_maIGzHYv_zKsniGVWiDf6" style="font-family: Times New Roman, Times, Serif; vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-family: Times New Roman, Times, Serif; text-align: left; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">Finished goods</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">1,412,710</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">614,400</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td></tr> <tr id="xdx_40E_eus-gaap--InventoryGross_iTI_pp0p0_mtIGzHYv_maINzrT4_zJclMRgqVNlc" style="font-family: Times New Roman, Times, Serif; vertical-align: bottom; background-color: White"> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">Gross inventories</span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">6,462,071</span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">7,008,662</span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td></tr> <tr id="xdx_405_eus-gaap--InventoryValuationReserves_iNI_pp0p0_di_msINzrT4_zyOfNlCZsXge" style="font-family: Times New Roman, Times, Serif; vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-family: Times New Roman, Times, Serif; text-align: left; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">Less: Provision for excess and obsolescence reserve</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">(398,136</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">)</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">(322,815</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">)</span></span></td></tr> <tr id="xdx_408_eus-gaap--InventoryNet_iTI_pp0p0_mtINzrT4_ztPKVCPMh8Sa" style="font-family: Times New Roman, Times, Serif; vertical-align: bottom; background-color: White"> <td style="font-family: Times New Roman, Times, Serif; text-align: left; padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">Inventories, net</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="border-bottom: Black 2.5pt double; font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">$</span></span></td><td style="border-bottom: Black 2.5pt double; font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">6,063,935</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="border-bottom: Black 2.5pt double; font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">$</span></span></td><td style="border-bottom: Black 2.5pt double; font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">6,685,847</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td></tr> </table> 4334765 5288206 714596 1106056 1412710 614400 6462071 7008662 398136 322815 6063935 6685847 <p id="xdx_891_eus-gaap--DeferredCostsCapitalizedPrepaidAndOtherAssetsDisclosureTextBlock_zMfJHF3dqWq" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">As of September 30, 2023 and December 31, 2022, prepaid and other current assets, consist of the following:</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </p> <p style="font: 10pt Times New Roman, Times, Serif; display: none; margin: 0pt 0; text-align: justify; text-indent: 33.75pt"><span style="-sec-ix-redline: true"><span id="xdx_8BB_zvDOTV9pZC42" style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Schedule of Prepaid and Other Current Assets</span></span></p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="font-family: Times New Roman, Times, Serif; vertical-align: bottom"> <td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; font-weight: bold; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td colspan="2" id="xdx_49F_20230930_z557F7ZgfI19" style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; font-weight: bold; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">September 30, 2023</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; font-weight: bold"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; font-weight: bold; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td colspan="2" id="xdx_494_20221231_zjSdVfWyF0r8" style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; font-weight: bold; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">December 31, 2022</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; font-weight: bold"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td></tr> <tr id="xdx_40D_eus-gaap--Supplies_iI_pp0p0_maPEAOAzgah_zQpwRIGnzOHb" style="font-family: Times New Roman, Times, Serif; vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-family: Times New Roman, Times, Serif; width: 60%; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">Prepaid inventories</span></span></td><td style="font-family: Times New Roman, Times, Serif; width: 2%"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; width: 1%; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">$</span></span></td><td style="font-family: Times New Roman, Times, Serif; width: 16%; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">171,017</span></span></td><td style="font-family: Times New Roman, Times, Serif; width: 1%; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; width: 2%"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; width: 1%; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">$</span></span></td><td style="font-family: Times New Roman, Times, Serif; width: 16%; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">281,484</span></span></td><td style="font-family: Times New Roman, Times, Serif; width: 1%; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td></tr> <tr id="xdx_407_eus-gaap--PrepaidExpenseAndOtherAssets_iI_pp0p0_maPEAOAzgah_zkopx9NySkZ1" style="font-family: Times New Roman, Times, Serif; vertical-align: bottom; background-color: White"> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">Prepaid software licenses and annual fees</span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">244,628</span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">184,429</span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td></tr> <tr id="xdx_403_eus-gaap--PrepaidRent_iI_pp0p0_maPEAOAzgah_ze2iLZyThV0i" style="font-family: Times New Roman, Times, Serif; vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">Prepaid rent</span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">98,751</span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">234,691</span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td></tr> <tr id="xdx_40B_eus-gaap--PrepaidInsurance_iI_pp0p0_maPEAOAzgah_zM7wbwshBdy1" style="font-family: Times New Roman, Times, Serif; vertical-align: bottom; background-color: White"> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">Prepaid insurance</span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">199,046</span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">167,794</span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td></tr> <tr id="xdx_40A_eus-gaap--PrepaidTaxes_iI_pp0p0_maPEAOAzgah_zfRXjM00dZa" style="font-family: Times New Roman, Times, Serif; vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">Prepaid VAT charges</span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">41,030</span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">99,558</span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td></tr> <tr id="xdx_400_eus-gaap--OtherPrepaidExpenseCurrent_iI_pp0p0_maPEAOAzgah_zpEVNvczajw8" style="font-family: Times New Roman, Times, Serif; vertical-align: bottom; background-color: White"> <td style="font-family: Times New Roman, Times, Serif; text-align: left; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">Prepaid other and other current assets</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">77,716</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">61,592</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td></tr> <tr id="xdx_40E_eus-gaap--PrepaidExpenseAndOtherAssetsCurrent_iTI_pp0p0_mtPEAOAzgah_zadkB8zaC7zc" style="font-family: Times New Roman, Times, Serif; vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-family: Times New Roman, Times, Serif; text-align: left; padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">Prepaid and other current assets</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="border-bottom: Black 2.5pt double; font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">$</span></span></td><td style="border-bottom: Black 2.5pt double; font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">832,188</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="border-bottom: Black 2.5pt double; font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">$</span></span></td><td style="border-bottom: Black 2.5pt double; font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">1,029,548</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td></tr> </table> 171017 281484 244628 184429 98751 234691 199046 167794 41030 99558 77716 61592 832188 1029548 <p id="xdx_898_eus-gaap--PropertyPlantAndEquipmentTextBlock_ziEtt1rLYFzl" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">As of September 30, 2023 and December 31, 2022, property and equipment, net consist of the following:</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </p> <p style="font: 10pt Times New Roman, Times, Serif; display: none; margin: 0pt 0; text-align: justify; text-indent: 33.75pt"><span style="-sec-ix-redline: true"><span id="xdx_8BF_zewD46vDA6Oh" style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Schedule of Property and Equipment, Net</span></span></p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="display: none; font-family: Times New Roman, Times, Serif; vertical-align: bottom"> <td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; font-weight: bold"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td colspan="2" style="font-family: Times New Roman, Times, Serif; font-weight: bold; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">Useful Life</span></span></td><td style="font-family: Times New Roman, Times, Serif; font-weight: bold"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; font-weight: bold"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td colspan="2" id="xdx_496_20230930_zSm3gVv3p7wk" style="font-family: Times New Roman, Times, Serif; font-weight: bold; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">September 30,</span></span></td><td style="font-family: Times New Roman, Times, Serif; font-weight: bold"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; font-weight: bold"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td colspan="2" id="xdx_494_20221231_zrsJOaSQBpl5" style="font-family: Times New Roman, Times, Serif; font-weight: bold; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">December 31,</span></span></td><td style="font-family: Times New Roman, Times, Serif; font-weight: bold"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td></tr> <tr style="font-family: Times New Roman, Times, Serif; vertical-align: bottom"> <td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; font-weight: bold"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td colspan="2" style="font-family: Times New Roman, Times, Serif; font-weight: bold; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">Estimated</span></span></td><td style="font-family: Times New Roman, Times, Serif; font-weight: bold"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td colspan="6" style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td></tr> <tr style="font-family: Times New Roman, Times, Serif; vertical-align: bottom"> <td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; font-weight: bold"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td colspan="2" style="font-family: Times New Roman, Times, Serif; font-weight: bold; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">Useful Life</span></span></td><td style="font-family: Times New Roman, Times, Serif; font-weight: bold"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; font-weight: bold"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td colspan="2" style="font-family: Times New Roman, Times, Serif; font-weight: bold; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">September 30,</span></span></td><td style="font-family: Times New Roman, Times, Serif; font-weight: bold"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; font-weight: bold"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td colspan="2" style="font-family: Times New Roman, Times, Serif; font-weight: bold; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">December 31,</span></span></td><td style="font-family: Times New Roman, Times, Serif; font-weight: bold"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td></tr> <tr style="font-family: Times New Roman, Times, Serif; vertical-align: bottom"> <td style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; font-weight: bold"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">Type</span></span></td><td style="font-family: Times New Roman, Times, Serif; font-weight: bold; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; font-weight: bold; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">(Years)</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; font-weight: bold"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; font-weight: bold; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; font-weight: bold; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">2023</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; font-weight: bold"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; font-weight: bold; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; font-weight: bold; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">2022</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; font-weight: bold"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td></tr> <tr id="xdx_40D_eus-gaap--PropertyPlantAndEquipmentGross_iI_hus-gaap--PropertyPlantAndEquipmentByTypeAxis__us-gaap--LeaseholdImprovementsMember_zs5B6bPPEQ67" style="font-family: Times New Roman, Times, Serif; vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-family: Times New Roman, Times, Serif; width: 52%; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">Leasehold improvements</span></span></td><td style="font-family: Times New Roman, Times, Serif; width: 2%"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; width: 1%; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; width: 12%; text-align: center"><span style="-sec-ix-redline: true"><span id="xdx_906_eus-gaap--PropertyPlantAndEquipmentUsefulLife_iI_dtY_c20230930__us-gaap--PropertyPlantAndEquipmentByTypeAxis__us-gaap--LeaseholdImprovementsMember__srt--RangeAxis__srt--MinimumMember_z4jwxvsQf6v" style="font-family: Times New Roman, Times, Serif; font-size: 10pt">3</span></span><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">-<span id="xdx_900_eus-gaap--PropertyPlantAndEquipmentUsefulLife_iI_dtY_c20230930__us-gaap--PropertyPlantAndEquipmentByTypeAxis__us-gaap--LeaseholdImprovementsMember__srt--RangeAxis__srt--MaximumMember_ztWr9FGziJf6">5</span></span></span></td><td style="font-family: Times New Roman, Times, Serif; width: 1%; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; width: 2%"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; width: 1%; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">$</span></span></td><td style="font-family: Times New Roman, Times, Serif; width: 12%; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">106,837</span></span></td><td style="font-family: Times New Roman, Times, Serif; width: 1%; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; width: 2%"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; width: 1%; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">$</span></span></td><td style="font-family: Times New Roman, Times, Serif; width: 12%; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">106,837</span></span></td><td style="font-family: Times New Roman, Times, Serif; width: 1%; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td></tr> <tr id="xdx_40E_eus-gaap--PropertyPlantAndEquipmentGross_iI_hus-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--ProductionToolsAndEquipmentMember_zyhctNGjrUzb" style="font-family: Times New Roman, Times, Serif; vertical-align: bottom; background-color: White"> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">Production tools and equipment</span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: center"><span style="-sec-ix-redline: true"><span id="xdx_900_eus-gaap--PropertyPlantAndEquipmentUsefulLife_iI_dtY_c20230930__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--ProductionToolsAndEquipmentMember_ztlldCbFw10g" style="font-family: Times New Roman, Times, Serif">5</span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">730,565</span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">632,514</span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td></tr> <tr id="xdx_402_eus-gaap--PropertyPlantAndEquipmentGross_iI_hus-gaap--PropertyPlantAndEquipmentByTypeAxis__us-gaap--ComputerEquipmentMember__srt--RangeAxis__srt--MaximumMember_z5CVjwkUdvog" style="font-family: Times New Roman, Times, Serif; vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">Computer and office equipment</span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: center"><span style="-sec-ix-redline: true"><span id="xdx_909_eus-gaap--PropertyPlantAndEquipmentUsefulLife_iI_dtY_c20230930__us-gaap--PropertyPlantAndEquipmentByTypeAxis__us-gaap--ComputerEquipmentMember__srt--RangeAxis__srt--MinimumMember_zQFb8GQN5BFd" style="font-family: Times New Roman, Times, Serif; font-size: 10pt">3</span></span><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">-<span id="xdx_90D_eus-gaap--PropertyPlantAndEquipmentUsefulLife_iI_dtY_c20230930__us-gaap--PropertyPlantAndEquipmentByTypeAxis__us-gaap--ComputerEquipmentMember__srt--RangeAxis__srt--MaximumMember_zFKPzObNg6R">5</span></span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">514,613</span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">507,637</span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td></tr> <tr id="xdx_401_eus-gaap--PropertyPlantAndEquipmentGross_iI_hus-gaap--PropertyPlantAndEquipmentByTypeAxis__us-gaap--FurnitureAndFixturesMember_z8wqHG9YqI52" style="font-family: Times New Roman, Times, Serif; vertical-align: bottom; background-color: White"> <td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">Furniture</span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: center"><span style="-sec-ix-redline: true"><span id="xdx_908_eus-gaap--PropertyPlantAndEquipmentUsefulLife_iI_dtY_c20230930__us-gaap--PropertyPlantAndEquipmentByTypeAxis__us-gaap--FurnitureAndFixturesMember_zDj3Vhs8TZOl" style="font-family: Times New Roman, Times, Serif">5</span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">73,452</span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">77,799</span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td></tr> <tr id="xdx_407_eus-gaap--PropertyPlantAndEquipmentGross_iI_hus-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--DroneEquipmentMember_zaZVCHcSo4We" style="font-family: Times New Roman, Times, Serif; vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-family: Times New Roman, Times, Serif; text-align: left; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">Drone equipment</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; text-align: center"><span style="-sec-ix-redline: true"><span id="xdx_902_eus-gaap--PropertyPlantAndEquipmentUsefulLife_iI_dtY_c20230930__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--DroneEquipmentMember_zV4cYUq8y1Hc" style="font-family: Times New Roman, Times, Serif">3</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">170,109</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">170,109</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td></tr> <tr id="xdx_406_eus-gaap--PropertyPlantAndEquipmentGross_iI_maPPAENz1t8_zz1wdibvkb71" style="font-family: Times New Roman, Times, Serif; vertical-align: bottom; background-color: White"> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">Property and equipment</span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">1,595,576</span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">1,494,896</span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td></tr> <tr id="xdx_40B_eus-gaap--AccumulatedDepreciationDepletionAndAmortizationPropertyPlantAndEquipment_iNI_di_msPPAENz1t8_zFWqyTmKKwN3" style="font-family: Times New Roman, Times, Serif; vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-family: Times New Roman, Times, Serif; text-align: left; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">Less: Accumulated depreciation</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">(997,612</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">)</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">(703,741</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">)</span></span></td></tr> <tr id="xdx_406_eus-gaap--PropertyPlantAndEquipmentNet_iTI_mtPPAENz1t8_zXwjbLLBDLH7" style="font-family: Times New Roman, Times, Serif; vertical-align: bottom; background-color: White"> <td style="font-family: Times New Roman, Times, Serif; text-align: left; padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">Property and equipment, net</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="border-bottom: Black 2.5pt double; font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">$</span></span></td><td style="border-bottom: Black 2.5pt double; font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">597,964</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="border-bottom: Black 2.5pt double; font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">$</span></span></td><td style="border-bottom: Black 2.5pt double; font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">791,155</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td></tr> </table> P3Y P5Y 106837 106837 P5Y 730565 632514 P3Y P5Y 514613 507637 P5Y 73452 77799 P3Y 170109 170109 1595576 1494896 997612 703741 597964 791155 <p id="xdx_899_eus-gaap--ScheduleOfComprehensiveIncomeLossTableTextBlock_zsPy9b2DXqAc" style="font: 10pt Times New Roman, Times, Serif; display: none; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><span style="-sec-ix-redline: true"><span id="xdx_8BC_zqBB5CPkgYci" style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Schedule of Property and Equipment Depreciation Expense</span></span><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i> </i></span></span></p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="display: none; font-family: Times New Roman, Times, Serif; vertical-align: bottom"> <td style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; font-weight: bold"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">Type</span></span></td><td style="font-family: Times New Roman, Times, Serif; font-weight: bold; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td colspan="2" id="xdx_49B_20230701__20230930_zHq2dMnXme83" style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; font-weight: bold; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">2023</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; font-weight: bold"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; font-weight: bold; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td colspan="2" id="xdx_492_20220701__20220930_zREXeOkpHuZi" style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; font-weight: bold; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">2022</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; font-weight: bold"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; font-weight: bold; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td colspan="2" id="xdx_49B_20230101__20230930_zevHZXyBsUN2" style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; font-weight: bold; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">2023</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; font-weight: bold"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; font-weight: bold; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td colspan="2" id="xdx_493_20220101__20220930_zVT03B1IbiBc" style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; font-weight: bold; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">2022</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; font-weight: bold"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td></tr> <tr style="font-family: Times New Roman, Times, Serif; vertical-align: bottom"> <td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">Classification within the Condensed Consolidated Statements of Operations and Comprehensive Income (Loss)</span></span></td><td style="font-family: Times New Roman, Times, Serif; font-weight: bold; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td colspan="6" style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; font-weight: bold; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">For the Three Months Ended<br/> September 30,</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; font-weight: bold"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; font-weight: bold; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td colspan="6" style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; font-weight: bold; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">For the Nine Months Ended <br/> September 30,</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; font-weight: bold"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td></tr> <tr style="font-family: Times New Roman, Times, Serif; vertical-align: bottom"> <td style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; font-weight: bold"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">Type</span></span></td><td style="font-family: Times New Roman, Times, Serif; font-weight: bold; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; font-weight: bold; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">2023</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; font-weight: bold"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; font-weight: bold; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; font-weight: bold; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">2022</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; font-weight: bold"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; font-weight: bold; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; font-weight: bold; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">2023</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; font-weight: bold"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; font-weight: bold; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; font-weight: bold; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">2022</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; font-weight: bold"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td></tr> <tr id="xdx_40E_eus-gaap--Depreciation_hus-gaap--IncomeStatementLocationAxis__us-gaap--CostOfSalesMember_zz5FNO7Hkbw3" style="font-family: Times New Roman, Times, Serif; vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-family: Times New Roman, Times, Serif; width: 40%"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">Cost of sales</span></span></td><td style="font-family: Times New Roman, Times, Serif; width: 2%"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; width: 1%; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">$</span></span></td><td style="font-family: Times New Roman, Times, Serif; width: 11%; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-hidden: xdx2ixbrl1091">—</span></span></span></td><td style="font-family: Times New Roman, Times, Serif; width: 1%; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; width: 2%"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; width: 1%; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">$</span></span></td><td style="font-family: Times New Roman, Times, Serif; width: 11%; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">61,747</span></span></td><td style="font-family: Times New Roman, Times, Serif; width: 1%; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; width: 2%"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; width: 1%; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">$</span></span></td><td style="font-family: Times New Roman, Times, Serif; width: 11%; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-hidden: xdx2ixbrl1093">—</span></span></span></td><td style="font-family: Times New Roman, Times, Serif; width: 1%; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; width: 2%"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; width: 1%; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">$</span></span></td><td style="font-family: Times New Roman, Times, Serif; width: 11%; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">199,555</span></span></td><td style="font-family: Times New Roman, Times, Serif; width: 1%; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td></tr> <tr id="xdx_405_eus-gaap--Depreciation_hus-gaap--IncomeStatementLocationAxis__us-gaap--GeneralAndAdministrativeExpenseMember_zXNoFiLTwgCd" style="font-family: Times New Roman, Times, Serif; vertical-align: bottom; background-color: White"> <td style="font-family: Times New Roman, Times, Serif; text-align: left; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">General and administrative</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">93,614</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">48,429</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">293,538</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">138,271</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td></tr> <tr id="xdx_406_eus-gaap--Depreciation_zTRMtpv0sWNb" style="font-family: Times New Roman, Times, Serif; vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-family: Times New Roman, Times, Serif; text-align: left; padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">Depreciation expense</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="border-bottom: Black 2.5pt double; font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">$</span></span></td><td style="border-bottom: Black 2.5pt double; font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">93,614</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="border-bottom: Black 2.5pt double; font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">$</span></span></td><td style="border-bottom: Black 2.5pt double; font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">110,176</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="border-bottom: Black 2.5pt double; font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">$</span></span></td><td style="border-bottom: Black 2.5pt double; font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">293,538</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="border-bottom: Black 2.5pt double; font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">$</span></span></td><td style="border-bottom: Black 2.5pt double; font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">337,826</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td></tr> </table> 61747 199555 93614 48429 293538 138271 93614 110176 293538 337826 <p id="xdx_89C_eus-gaap--ScheduleOfFiniteLivedIntangibleAssetsTableTextBlock_zS4DyqSoL5fl" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">As of September 30, 2023 and December 31, 2022, intangible assets, net, other than goodwill, consist of the following:</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; display: none; margin: 0pt 0; text-align: justify; text-indent: 33.75pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> <span id="xdx_8B1_zJzk2UMnjtrg">Schedule of Intangible Assets, Net</span></span></span><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="font-family: Times New Roman, Times, Serif; vertical-align: bottom"> <td style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; font-weight: bold"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">Name</span></span></td><td style="font-family: Times New Roman, Times, Serif; font-weight: bold; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; font-weight: bold; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">Estimated Life (Years)</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; font-weight: bold"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; font-weight: bold; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; font-weight: bold; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">Balance as of December 31, 2022</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; font-weight: bold"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; font-weight: bold; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; font-weight: bold; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">Additions</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; font-weight: bold"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; font-weight: bold; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; font-weight: bold; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">Amortization</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; font-weight: bold"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; font-weight: bold; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; font-weight: bold; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">Balance as of <br/> September 30, 2023</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; font-weight: bold"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td></tr> <tr style="font-family: Times New Roman, Times, Serif; vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-family: Times New Roman, Times, Serif; width: 35%; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">Intellectual property/technology</span></span></td><td style="font-family: Times New Roman, Times, Serif; width: 2%"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; width: 1%; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; width: 9%; text-align: center"><span style="-sec-ix-redline: true"><span id="xdx_90A_eus-gaap--FiniteLivedIntangibleAssetUsefulLife_iI_dtY_c20230930__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--IntellectualPropertyMember__srt--RangeAxis__srt--MinimumMember_zpbg143ld1ok" style="font-family: Times New Roman, Times, Serif; font-size: 10pt">5</span></span><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">-<span id="xdx_90B_eus-gaap--FiniteLivedIntangibleAssetUsefulLife_iI_dtY_c20230930__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--IntellectualPropertyMember__srt--RangeAxis__srt--MaximumMember_ziu7m3Xx3iwh">7</span></span></span></td><td style="font-family: Times New Roman, Times, Serif; width: 1%; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; width: 2%"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; width: 1%; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">$</span></span></td><td id="xdx_98C_eus-gaap--FiniteLivedIntangibleAssetsNet_iS_c20230101__20230930__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--IntellectualPropertyMember_zVPJ4r2AdV53" style="font-family: Times New Roman, Times, Serif; width: 9%; text-align: right" title="Beginning balance"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">4,473,861</span></span></td><td style="font-family: Times New Roman, Times, Serif; width: 1%; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; width: 2%"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; width: 1%; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">$</span></span></td><td id="xdx_984_eus-gaap--FiniteLivedIntangibleAssetsPeriodIncreaseDecrease_c20230101__20230930__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--IntellectualPropertyMember_zSwd2SeHkNg5" style="font-family: Times New Roman, Times, Serif; width: 9%; text-align: right" title="Additions"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-hidden: xdx2ixbrl1112">—</span></span></span></td><td style="font-family: Times New Roman, Times, Serif; width: 1%; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; width: 2%"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; width: 1%; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">$</span></span></td><td id="xdx_981_eus-gaap--AmortizationOfIntangibleAssets_iN_di_c20230101__20230930__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--IntellectualPropertyMember_z3e98qTKV6gc" style="font-family: Times New Roman, Times, Serif; width: 9%; text-align: right" title="Amortization"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">(606,726</span></span></td><td style="font-family: Times New Roman, Times, Serif; width: 1%; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">)</span></span></td><td style="font-family: Times New Roman, Times, Serif; width: 2%"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; width: 1%; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">$</span></span></td><td id="xdx_980_eus-gaap--FiniteLivedIntangibleAssetsNet_iE_c20230101__20230930__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--IntellectualPropertyMember_zAy7kk4b17ad" style="font-family: Times New Roman, Times, Serif; width: 9%; text-align: right" title="Ending balance"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">3,867,135</span></span></td><td style="font-family: Times New Roman, Times, Serif; width: 1%; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td></tr> <tr style="font-family: Times New Roman, Times, Serif; vertical-align: bottom; background-color: White"> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">Customer base</span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: center"><span style="-sec-ix-redline: true"><span id="xdx_902_eus-gaap--FiniteLivedIntangibleAssetUsefulLife_iI_dtY_c20230930__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--CustomerRelatedIntangibleAssetsMember__srt--RangeAxis__srt--MinimumMember_zvYCFrX5IQ85" style="font-family: Times New Roman, Times, Serif; font-size: 10pt">3</span></span><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">-<span id="xdx_90C_eus-gaap--FiniteLivedIntangibleAssetUsefulLife_iI_dtY_c20230930__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--CustomerRelatedIntangibleAssetsMember__srt--RangeAxis__srt--MaximumMember_z7aa4BKpZyLc">10</span></span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td id="xdx_98D_eus-gaap--FiniteLivedIntangibleAssetsNet_iS_c20230101__20230930__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--CustomerRelatedIntangibleAssetsMember_zHDC4cMeR48l" style="font-family: Times New Roman, Times, Serif; text-align: right" title="Beginning balance"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">2,885,657</span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td id="xdx_98E_eus-gaap--FiniteLivedIntangibleAssetsPeriodIncreaseDecrease_c20230101__20230930__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--CustomerRelatedIntangibleAssetsMember_zGlg5xWsFF96" style="font-family: Times New Roman, Times, Serif; text-align: right" title="Additions"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-hidden: xdx2ixbrl1122">—</span></span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td id="xdx_98A_eus-gaap--AmortizationOfIntangibleAssets_iN_di_c20230101__20230930__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--CustomerRelatedIntangibleAssetsMember_zzopGGwa14S3" style="font-family: Times New Roman, Times, Serif; text-align: right" title="Amortization"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">(853,248</span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">)</span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td id="xdx_98F_eus-gaap--FiniteLivedIntangibleAssetsNet_iE_c20230101__20230930__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--CustomerRelatedIntangibleAssetsMember_zzodMKbK0jV2" style="font-family: Times New Roman, Times, Serif; text-align: right" title="Ending balance"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">2,032,409</span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td></tr> <tr style="font-family: Times New Roman, Times, Serif; vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">Tradenames and trademarks</span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: center"><span style="-sec-ix-redline: true"><span id="xdx_900_eus-gaap--FiniteLivedIntangibleAssetUsefulLife_iI_dtY_c20230930__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--TrademarksAndTradeNamesMember__srt--RangeAxis__srt--MinimumMember_zy4lytL2o5Jh" style="font-family: Times New Roman, Times, Serif; font-size: 10pt">5</span></span><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">-<span id="xdx_901_eus-gaap--FiniteLivedIntangibleAssetUsefulLife_iI_dtY_c20230930__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--TrademarksAndTradeNamesMember__srt--RangeAxis__srt--MaximumMember_zR1IoultEWFg">10</span></span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td id="xdx_986_eus-gaap--FiniteLivedIntangibleAssetsNet_iS_c20230101__20230930__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--TrademarksAndTradeNamesMember_zLOdGoMy6aik" style="font-family: Times New Roman, Times, Serif; text-align: right" title="Beginning balance"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">1,757,891</span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td id="xdx_989_eus-gaap--FiniteLivedIntangibleAssetsPeriodIncreaseDecrease_c20230101__20230930__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--TrademarksAndTradeNamesMember_zn89HmAXAnE7" style="font-family: Times New Roman, Times, Serif; text-align: right" title="Additions"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-hidden: xdx2ixbrl1132">—</span></span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td id="xdx_982_eus-gaap--AmortizationOfIntangibleAssets_iN_di_c20230101__20230930__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--TrademarksAndTradeNamesMember_zVqkl8g1RpG" style="font-family: Times New Roman, Times, Serif; text-align: right" title="Amortization"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">(155,958</span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">)</span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td id="xdx_98A_eus-gaap--FiniteLivedIntangibleAssetsNet_iE_c20230101__20230930__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--TrademarksAndTradeNamesMember_z01AB8Gws9xi" style="font-family: Times New Roman, Times, Serif; text-align: right" title="Ending balance"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">1,601,933</span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td></tr> <tr style="font-family: Times New Roman, Times, Serif; vertical-align: bottom; background-color: White"> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">Non-compete agreement</span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: center"><span style="-sec-ix-redline: true"><span id="xdx_90F_eus-gaap--FiniteLivedIntangibleAssetUsefulLife_iI_dtY_c20230930__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--NoncompeteAgreementsMember__srt--RangeAxis__srt--MinimumMember_zSIkaddp5wg7" style="font-family: Times New Roman, Times, Serif; font-size: 10pt">2</span></span><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">-<span id="xdx_900_eus-gaap--FiniteLivedIntangibleAssetUsefulLife_iI_dtY_c20230930__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--NoncompeteAgreementsMember__srt--RangeAxis__srt--MaximumMember_zydVkz9RU7Zf">4</span></span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td id="xdx_986_eus-gaap--FiniteLivedIntangibleAssetsNet_iS_c20230101__20230930__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--NoncompeteAgreementsMember_zFW5cl4JRxq2" style="font-family: Times New Roman, Times, Serif; text-align: right" title="Beginning balance"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">335,933</span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td id="xdx_98F_eus-gaap--FiniteLivedIntangibleAssetsPeriodIncreaseDecrease_c20230101__20230930__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--NoncompeteAgreementsMember_zyBWhDcc5b9a" style="font-family: Times New Roman, Times, Serif; text-align: right" title="Additions"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-hidden: xdx2ixbrl1142">—</span></span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td id="xdx_98D_eus-gaap--AmortizationOfIntangibleAssets_iN_di_c20230101__20230930__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--NoncompeteAgreementsMember_z1NF9yE3nYt4" style="font-family: Times New Roman, Times, Serif; text-align: right" title="Amortization"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">(335,933</span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">)</span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td id="xdx_984_eus-gaap--FiniteLivedIntangibleAssetsNet_iE_c20230101__20230930__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--NoncompeteAgreementsMember_zcuOue4LPXC1" style="font-family: Times New Roman, Times, Serif; text-align: right" title="Ending balance"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-hidden: xdx2ixbrl1146">—</span></span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td></tr> <tr style="font-family: Times New Roman, Times, Serif; vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">Platform development costs</span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: center"><span style="-sec-ix-redline: true"><span id="xdx_90C_eus-gaap--FiniteLivedIntangibleAssetUsefulLife_iI_dtY_c20230930__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__custom--PlatformDevelopmentCostsMember_zajAydM5qTb2" style="font-family: Times New Roman, Times, Serif">3</span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td id="xdx_988_eus-gaap--FiniteLivedIntangibleAssetsNet_iS_c20230101__20230930__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__custom--PlatformDevelopmentCostsMember_zCOfzvR0Prwb" style="font-family: Times New Roman, Times, Serif; text-align: right" title="Beginning balance"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">1,332,516</span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td id="xdx_98A_eus-gaap--FiniteLivedIntangibleAssetsPeriodIncreaseDecrease_c20230101__20230930__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__custom--PlatformDevelopmentCostsMember_zFuHGOGm5TX8" style="font-family: Times New Roman, Times, Serif; text-align: right" title="Additions"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">297,596</span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td id="xdx_986_eus-gaap--AmortizationOfIntangibleAssets_iN_di_c20230101__20230930__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__custom--PlatformDevelopmentCostsMember_zbTdkvG73Kfl" style="font-family: Times New Roman, Times, Serif; text-align: right" title="Amortization"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">(529,378</span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">)</span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td id="xdx_980_eus-gaap--FiniteLivedIntangibleAssetsNet_iE_c20230101__20230930__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__custom--PlatformDevelopmentCostsMember_zUAMQbHvPdCj" style="font-family: Times New Roman, Times, Serif; text-align: right" title="Ending balance"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">1,100,734</span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td></tr> <tr style="font-family: Times New Roman, Times, Serif; vertical-align: bottom; background-color: White"> <td style="font-family: Times New Roman, Times, Serif; text-align: left; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">Internal use software costs</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; text-align: center"><span style="-sec-ix-redline: true"><span id="xdx_90E_eus-gaap--FiniteLivedIntangibleAssetUsefulLife_iI_dtY_c20230930__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--ComputerSoftwareIntangibleAssetMember_zj9ercazGuO7" style="font-family: Times New Roman, Times, Serif">3</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td id="xdx_985_eus-gaap--FiniteLivedIntangibleAssetsNet_iS_c20230101__20230930__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--ComputerSoftwareIntangibleAssetMember_zSWifecW1VOc" style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: right" title="Beginning balance"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">721,795</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td id="xdx_983_eus-gaap--FiniteLivedIntangibleAssetsPeriodIncreaseDecrease_c20230101__20230930__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--ComputerSoftwareIntangibleAssetMember_zjFgT7Upran3" style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: right" title="Additions"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">171,516</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td id="xdx_980_eus-gaap--AmortizationOfIntangibleAssets_iN_di_c20230101__20230930__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--ComputerSoftwareIntangibleAssetMember_zOhH1l8j5BKj" style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: right" title="Amortization"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">(252,863</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">)</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td id="xdx_985_eus-gaap--FiniteLivedIntangibleAssetsNet_iE_c20230101__20230930__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--ComputerSoftwareIntangibleAssetMember_zZzruqFwKRa4" style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: right" title="Ending balance"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">640,448</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td></tr> <tr style="font-family: Times New Roman, Times, Serif; vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-family: Times New Roman, Times, Serif; text-align: left; padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">Intangibles assets, net</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="border-bottom: Black 2.5pt double; font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">$</span></span></td><td id="xdx_98A_eus-gaap--FiniteLivedIntangibleAssetsNet_iS_c20230101__20230930_zWru8JZXb6h5" style="border-bottom: Black 2.5pt double; font-family: Times New Roman, Times, Serif; text-align: right" title="Beginning balance"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">11,507,653</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="border-bottom: Black 2.5pt double; font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">$</span></span></td><td id="xdx_985_eus-gaap--FiniteLivedIntangibleAssetsPeriodIncreaseDecrease_c20230101__20230930_zxWm8jymytml" style="border-bottom: Black 2.5pt double; font-family: Times New Roman, Times, Serif; text-align: right" title="Additions"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">469,112</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="border-bottom: Black 2.5pt double; font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">$</span></span></td><td id="xdx_98F_eus-gaap--AmortizationOfIntangibleAssets_iN_di_c20230101__20230930_zXQUWMiIGFH5" style="border-bottom: Black 2.5pt double; font-family: Times New Roman, Times, Serif; text-align: right" title="Amortization"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">(2,734,106</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">)</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="border-bottom: Black 2.5pt double; font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">$</span></span></td><td id="xdx_987_eus-gaap--FiniteLivedIntangibleAssetsNet_iE_c20230101__20230930_zHWf6dbawsx9" style="border-bottom: Black 2.5pt double; font-family: Times New Roman, Times, Serif; text-align: right" title="Ending balance"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">9,242,659</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td></tr> </table> P5Y P7Y 4473861 606726 3867135 P3Y P10Y 2885657 853248 2032409 P5Y P10Y 1757891 155958 1601933 P2Y P4Y 335933 335933 P3Y 1332516 297596 529378 1100734 P3Y 721795 171516 252863 640448 11507653 469112 2734106 9242659 P4Y25D 919774 932880 2734106 2549418 <p id="xdx_89C_eus-gaap--ScheduleofFiniteLivedIntangibleAssetsFutureAmortizationExpenseTableTextBlock_zOTqqSaYF1m4" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">For the following years ending, the future amortization expenses consist of the following:</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </p> <p style="font: 10pt Times New Roman, Times, Serif; display: none; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><span style="-sec-ix-redline: true"><span id="xdx_8B1_zLPtrTdxyZRb" style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Schedule of Intangible Assets Future Amortization Expenses</span></span></p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="display: none; font-family: Times New Roman, Times, Serif; vertical-align: bottom"> <td style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; font-weight: bold"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">Name</span></span></td><td style="font-family: Times New Roman, Times, Serif; font-weight: bold; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td colspan="2" id="xdx_480_eus-gaap--FiniteLivedIntangibleAssetsAmortizationExpenseRemainderOfFiscalYear_iI_zKQYVbmpssRa" style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; font-weight: bold; text-align: center"><span style="-sec-ix-redline: true"><span id="xdx_91C_eus-gaap--FiniteLivedIntangibleAssetsAmortizationExpenseRemainderOfFiscalYear_z9aql4wRWNP7" style="font-family: Times New Roman, Times, Serif">(rest of year)</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; font-weight: bold"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; font-weight: bold; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td colspan="2" id="xdx_48A_eus-gaap--FiniteLivedIntangibleAssetsAmortizationExpenseNextTwelveMonths_iI_zFEIw1IKdRv9" style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; font-weight: bold; text-align: center"><span style="-sec-ix-redline: true"><span id="xdx_913_eus-gaap--FiniteLivedIntangibleAssetsAmortizationExpenseNextTwelveMonths_zitwFvmVulch" style="font-family: Times New Roman, Times, Serif">Year One</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; font-weight: bold"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; font-weight: bold; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td colspan="2" id="xdx_480_eus-gaap--FiniteLivedIntangibleAssetsAmortizationExpenseYearTwo_iI_zTwfomrgLDRk" style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; font-weight: bold; text-align: center"><span style="-sec-ix-redline: true"><span id="xdx_91B_eus-gaap--FiniteLivedIntangibleAssetsAmortizationExpenseYearTwo_zgMdPjIL0AE6" style="font-family: Times New Roman, Times, Serif">Year Two</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; font-weight: bold"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; font-weight: bold; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td colspan="2" id="xdx_48F_eus-gaap--FiniteLivedIntangibleAssetsAmortizationExpenseYearThree_iI_zi4r6y72jHid" style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; font-weight: bold; text-align: center"><span style="-sec-ix-redline: true"><span id="xdx_91E_eus-gaap--FiniteLivedIntangibleAssetsAmortizationExpenseYearThree_zeb26gEtmjNe" style="font-family: Times New Roman, Times, Serif">Year Three</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; font-weight: bold"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; font-weight: bold; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td colspan="2" id="xdx_485_eus-gaap--FiniteLivedIntangibleAssetsAmortizationExpenseYearFour_iI_zj46awsILMFg" style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; font-weight: bold; text-align: center"><span style="-sec-ix-redline: true"><span id="xdx_912_eus-gaap--FiniteLivedIntangibleAssetsAmortizationExpenseYearFour_zeyOwLsooaUg" style="font-family: Times New Roman, Times, Serif">Year Four</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; font-weight: bold"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td colspan="2" id="xdx_48E_ecustom--FiniteLivedIntangibleAssetsAmortizationExpenseAfterYearFour_iI_zWacZaFRPQh3" style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> <span id="xdx_914_ecustom--FiniteLivedIntangibleAssetsAmortizationExpenseAfterYearFour_zMnPZ4eP7pD"><b>Thereafter</b></span></span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; font-weight: bold; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td colspan="2" id="xdx_487_eus-gaap--FiniteLivedIntangibleAssetsNet_iI_zbYHHRniHt0a" style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; font-weight: bold; text-align: center"><span style="-sec-ix-redline: true"><span id="xdx_914_eus-gaap--FiniteLivedIntangibleAssetsNet_zRCTBpQ1Eic3" style="font-family: Times New Roman, Times, Serif">Total</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; font-weight: bold"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td></tr> <tr style="font-family: Times New Roman, Times, Serif; vertical-align: bottom"> <td style="font-family: Times New Roman, Times, Serif; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; font-weight: bold; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td colspan="26" style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; font-weight: bold; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">For the Years Ending December 31,</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; font-weight: bold"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td></tr> <tr style="font-family: Times New Roman, Times, Serif; vertical-align: bottom"> <td style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; font-weight: bold"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">Name</span></span></td><td style="font-family: Times New Roman, Times, Serif; font-weight: bold; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; font-weight: bold; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">(rest of year) 2023</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; font-weight: bold"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; font-weight: bold; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; font-weight: bold; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">2024</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; font-weight: bold"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; font-weight: bold; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; font-weight: bold; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">2025</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; font-weight: bold"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; font-weight: bold; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; font-weight: bold; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">2026</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; font-weight: bold"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; font-weight: bold; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; font-weight: bold; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">2027</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; font-weight: bold"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> <b>Thereafter</b></span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; font-weight: bold; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; font-weight: bold; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">Total</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; font-weight: bold"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td></tr> <tr id="xdx_416_20230930__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--IntellectualPropertyMember_zQTie2qlqZ94" style="font-family: Times New Roman, Times, Serif; vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-family: Times New Roman, Times, Serif; width: 37%; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">Intellectual property/technology</span></span></td><td style="font-family: Times New Roman, Times, Serif; width: 2%"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; width: 1%; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">$</span></span></td><td style="font-family: Times New Roman, Times, Serif; width: 5%; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">202,242</span></span></td><td style="font-family: Times New Roman, Times, Serif; width: 1%; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; width: 2%"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; width: 1%; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">$</span></span></td><td style="font-family: Times New Roman, Times, Serif; width: 5%; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">808,968</span></span></td><td style="font-family: Times New Roman, Times, Serif; width: 1%; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; width: 2%"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; width: 1%; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">$</span></span></td><td style="font-family: Times New Roman, Times, Serif; width: 5%; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">808,968</span></span></td><td style="font-family: Times New Roman, Times, Serif; width: 1%; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; width: 2%"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; width: 1%; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">$</span></span></td><td style="font-family: Times New Roman, Times, Serif; width: 5%; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">808,968</span></span></td><td style="font-family: Times New Roman, Times, Serif; width: 1%; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; width: 2%"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; width: 1%; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">$</span></span></td><td style="font-family: Times New Roman, Times, Serif; width: 5%; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">808,968</span></span></td><td style="font-family: Times New Roman, Times, Serif; width: 1%; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; width: 2%"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; width: 1%; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">$</span></span></td><td style="font-family: Times New Roman, Times, Serif; width: 5%; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">429,021</span></span></td><td style="font-family: Times New Roman, Times, Serif; width: 1%; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; width: 2%"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; width: 1%; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">$</span></span></td><td style="font-family: Times New Roman, Times, Serif; width: 5%; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">3,867,135</span></span></td><td style="font-family: Times New Roman, Times, Serif; width: 1%; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td></tr> <tr id="xdx_413_20230930__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--CustomerRelatedIntangibleAssetsMember_zmi768X8jcMf" style="font-family: Times New Roman, Times, Serif; vertical-align: bottom; background-color: White"> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">Customer base</span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">284,417</span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">889,364</span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">141,145</span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">141,145</span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">141,145</span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">435,193</span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">2,032,409</span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td></tr> <tr id="xdx_41B_20230930__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--TrademarksAndTradeNamesMember_z7S0RV9jsiv5" style="font-family: Times New Roman, Times, Serif; vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">Tradenames and trademarks</span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">51,986</span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">207,944</span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">207,944</span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">207,944</span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">207,944</span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">718,171</span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">1,601,933</span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td></tr> <tr id="xdx_415_20230930__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__custom--PlatformDevelopmentCostsMember_z1ZdbnQ3nadf" style="font-family: Times New Roman, Times, Serif; vertical-align: bottom; background-color: White"> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">Platform development costs</span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">190,040</span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">586,950</span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">281,613</span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">42,131</span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-hidden: xdx2ixbrl1212">—</span></span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-hidden: xdx2ixbrl1213">—</span></span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">1,100,734</span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td></tr> <tr id="xdx_413_20230930__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--ComputerSoftwareIntangibleAssetMember_zKL1vYRW1YY2" style="font-family: Times New Roman, Times, Serif; vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-family: Times New Roman, Times, Serif; text-align: left; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">Internal use software costs</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">83,192</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">355,947</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">180,461</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">20,848</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-hidden: xdx2ixbrl1219">—</span></span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-hidden: xdx2ixbrl1220">—</span></span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">640,448</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td></tr> <tr id="xdx_415_20230930_zesPeOT8hFgj" style="font-family: Times New Roman, Times, Serif; vertical-align: bottom; background-color: White"> <td style="font-family: Times New Roman, Times, Serif; text-align: left; padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">Intangible assets, net</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="border-bottom: Black 2.5pt double; font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">$</span></span></td><td style="border-bottom: Black 2.5pt double; font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">811,877</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="border-bottom: Black 2.5pt double; font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">$</span></span></td><td style="border-bottom: Black 2.5pt double; font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">2,849,173</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="border-bottom: Black 2.5pt double; font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">$</span></span></td><td style="border-bottom: Black 2.5pt double; font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">1,620,131</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="border-bottom: Black 2.5pt double; font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">$</span></span></td><td style="border-bottom: Black 2.5pt double; font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">1,221,036</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="border-bottom: Black 2.5pt double; font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">$</span></span></td><td style="border-bottom: Black 2.5pt double; font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">1,158,057</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="border-bottom: Black 2.5pt double; font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">$</span></span></td><td style="border-bottom: Black 2.5pt double; font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">1,582,385</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="border-bottom: Black 2.5pt double; font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">$</span></span></td><td style="border-bottom: Black 2.5pt double; font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">9,242,659</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td></tr> </table> 202242 808968 808968 808968 808968 429021 3867135 284417 889364 141145 141145 141145 435193 2032409 51986 207944 207944 207944 207944 718171 1601933 190040 586950 281613 42131 1100734 83192 355947 180461 20848 640448 811877 2849173 1620131 1221036 1158057 1582385 9242659 <p id="xdx_890_eus-gaap--ScheduleOfAccountsPayableAndAccruedLiabilitiesTableTextBlock_zyxAlTrutnQl" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">As of September 30, 2023 and December 31, 2022, accrued liabilities consist of the following:</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </p> <p style="font: 10pt Times New Roman, Times, Serif; display: none; margin: 0pt 0; text-align: justify; text-indent: 33.75pt"><span style="-sec-ix-redline: true"><span id="xdx_8B3_zw4ov6jYG2F8" style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Schedule of Accrued Expenses</span></span></p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="font-family: Times New Roman, Times, Serif; vertical-align: bottom"> <td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; font-weight: bold; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td colspan="2" id="xdx_494_20230930_zIkLyG1AHUFd" style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; font-weight: bold; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">September 30, 2023</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; font-weight: bold"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; font-weight: bold; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td colspan="2" id="xdx_499_20221231_zf8apbfEAL8" style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; font-weight: bold; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">December 31, 2022</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; font-weight: bold"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td></tr> <tr id="xdx_40E_ecustom--AccruedPurchasesAndCustomerDeposits_iI_pp0p0_maALCANz7Dr_zZw82161fSAl" style="font-family: Times New Roman, Times, Serif; vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-family: Times New Roman, Times, Serif; width: 60%; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">Accrued purchases and customer deposits</span></span></td><td style="font-family: Times New Roman, Times, Serif; width: 2%"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; width: 1%; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">$</span></span></td><td style="font-family: Times New Roman, Times, Serif; width: 16%; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">220,784</span></span></td><td style="font-family: Times New Roman, Times, Serif; width: 1%; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; width: 2%"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; width: 1%; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">$</span></span></td><td style="font-family: Times New Roman, Times, Serif; width: 16%; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">102,319</span></span></td><td style="font-family: Times New Roman, Times, Serif; width: 1%; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td></tr> <tr id="xdx_408_eus-gaap--EmployeeRelatedLiabilitiesCurrentAndNoncurrent_iI_pp0p0_maALCANz7Dr_z4exhV6PfE8d" style="font-family: Times New Roman, Times, Serif; vertical-align: bottom; background-color: White"> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">Accrued compensation and related liabilities</span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">406,739</span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">774,916</span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td></tr> <tr id="xdx_404_eus-gaap--ProductWarrantyAccrualClassifiedCurrent_iI_pp0p0_maALCANz7Dr_zNaEGjiWpZz4" style="font-family: Times New Roman, Times, Serif; vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">Provision for warranty expense</span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">279,394</span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">288,807</span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td></tr> <tr id="xdx_408_eus-gaap--DividendsPayableCurrentAndNoncurrent_iI_pp0p0_maALCANz7Dr_zjELc7bJfGGa" style="font-family: Times New Roman, Times, Serif; vertical-align: bottom; background-color: White"> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">Accrued dividends</span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">342,873</span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">172,596</span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td></tr> <tr id="xdx_402_eus-gaap--InterestPayableCurrent_iI_pp0p0_maALCANz7Dr_zQPf26j9hpwk" style="font-family: Times New Roman, Times, Serif; vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">Accrued interest</span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">236,172</span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-hidden: xdx2ixbrl1245">—</span></span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td></tr> <tr id="xdx_400_eus-gaap--AccruedProfessionalFeesCurrentAndNoncurrent_iI_pp0p0_maALCANz7Dr_zjSI8yiOhGue" style="font-family: Times New Roman, Times, Serif; vertical-align: bottom; background-color: White"> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">Accrued professional fees</span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">138,250</span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">262,737</span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td></tr> <tr id="xdx_40F_eus-gaap--OtherAccruedLiabilitiesCurrent_iI_pp0p0_maALCANz7Dr_zS5VoFJExj1d" style="font-family: Times New Roman, Times, Serif; vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">Other</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">26,397</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">79,331</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td></tr> <tr id="xdx_403_eus-gaap--OtherAccruedLiabilitiesCurrentAndNoncurrent_iI_pp0p0_zHY3GCYkT699" style="display: none; vertical-align: bottom; background-color: White"> <td style="padding-bottom: 1.5pt"><span style="-sec-ix-redline: true">Other </span></td><td style="padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 1.5pt solid; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="border-bottom: Black 1.5pt solid; text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl1253">-</span></td><td style="padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 1.5pt solid; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="border-bottom: Black 1.5pt solid; text-align: right"><span style="-sec-ix-redline: true">354,246</span></td><td style="padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> <tr id="xdx_404_eus-gaap--AccruedLiabilitiesCurrentAndNoncurrent_iTI_pp0p0_mtALCANz7Dr_zgoTarLOwGjl" style="font-family: Times New Roman, Times, Serif; vertical-align: bottom; background-color: White"> <td style="font-family: Times New Roman, Times, Serif; text-align: left; padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">Total accrued liabilities</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="border-bottom: Black 2.5pt double; font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">$</span></span></td><td style="border-bottom: Black 2.5pt double; font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">1,650,609</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="border-bottom: Black 2.5pt double; font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">$</span></span></td><td style="border-bottom: Black 2.5pt double; font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">1,680,706</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td></tr> </table> 220784 102319 406739 774916 279394 288807 342873 172596 236172 138250 262737 26397 79331 354246 1650609 1680706 <p id="xdx_80C_eus-gaap--LoansNotesTradeAndOtherReceivablesDisclosureTextBlock_z4NzGiEx0gZ7" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Note 4 – <span id="xdx_82B_zem5nPJxlKah">Notes Receivable</span></b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i>Valqari</i></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">On October 14, 2020, in connection with, and as an incentive to the entry into a two-year exclusive manufacturing agreement (the “Manufacturing Agreement”) to produce a patented Drone Delivery Station for Valqari, LLC (“Valqari), the Company entered into, as payee, a Convertible Promissory Note pursuant to which the Company made a loan to Valqari in the principal aggregate amount of $<span id="xdx_906_eus-gaap--DebtInstrumentFaceAmount_iI_c20201014__us-gaap--DebtInstrumentAxis__us-gaap--ConvertibleNotesPayableMember_zfimUgJNeO81">500,000 </span></span></span><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">(the “Note”). The Note accrues interest at a rate of three percent per annum.</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 33.75pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The Note matured on April 15, 2021 (the “Maturity Date”), at which time all outstanding principal and interest that had accrued, but remained, unpaid was due. The Note provides for an automatic six-month extension of the Maturity Date under the following circumstances (i) Valqari has received in writing, (x) a good faith acquisition offer at a consideration value greater than $<span id="xdx_904_ecustom--GoodFaithAcquisitionOfconsideration_c20211015__20211015_zCZ0RhrpNnl9">15,000,000</span></span></span><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">, (y) such offer, upon consummation, would result in a change in control (as defined in the note) of Valqari, and (z) at such time Valqari, is actively engaged in the negotiation or finalization of such acquisition transaction; or (ii) Valqari has initiated, or is in the process of initiating, a conversion to a “C-Corporation” under the Internal Revenue Code, whereas such conversion will be completed no later than one day prior to the extended Maturity Date. Valqari was not permitted to prepay the Note prior to the Maturity Date.</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The Note is subject to customary representations and warranties by Valqari, as well as events of default, which may lead to acceleration of the payment of the Note such as (i) failure to pay all of the outstanding principal, plus accrued interest on the Maturity Date or Extended Maturity Date, (ii) Valqari filing a petition or action under any bankruptcy, or other law, or (iii) an involuntary petition is filed again Valqari under any bankruptcy statute (that is not dismissed or discharged within 60 days). The indebtedness evidenced by the Note is subordinated in right of payment to the prior payment in full of any senior indebtedness (as defined in the Note) in existence on the date of the Note or incurred thereafter.</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 33.75pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">On the Maturity Date, AgEagle demanded payment of the Note, including accrued interest, however, Valqari alleged that the Maturity Date was automatically extended to October 14, 2021 (“Extended Maturity Date”), for an additional six months. Upon the Extended Maturity Date, AgEagle demanded payment of the Note, including accrued interest; however, Valqari sought a substantial discount on the amount due under the Note to compensate for alleged breaches by AgEagle under the Manufacturing Agreement. AgEagle disputes the allegations of breach and believes that it is owed a net amount by Valqari under the Manufacturing Agreement, in addition to the amount due under the Note. On November 24, 2021, Valqari made a payment of principal on the Note of $<span id="xdx_902_eus-gaap--RepaymentsOfDebt_c20211124__20211124__us-gaap--DebtInstrumentAxis__us-gaap--ConvertibleNotesPayableMember_z0PlNw85WKec">315,000</span></span></span><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">. The parties are continuing to negotiate in an attempt to reach an amicable resolution of their disputes; however, AgEagle reserves the right to take legal action to collect the Note in the event that a settlement is not reached.</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b> </b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 33.75pt"></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>AGEAGLE AERIAL SYSTEMS INC. AND SUBSIDIARIES</b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS</b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2023 AND 2022</b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>(UNAUDITED)</b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 33.75pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> 500000 15000000 315000 <p id="xdx_80E_ecustom--CovidLoanDisclosuretextBlock_zsvA7GqbYgt6" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Note 5 – <span id="xdx_828_zFVdUaxu8oT9">COVID Loans</span></b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">In connection with the senseFly Acquisition, the Company assumed the obligations for two COVID Loans originally made by the SBA to senseFly S.A. on July 27, 2020 (“senseFly COVID Loans”). As of senseFly Acquisition Date, the fair value of the COVID Loan was $<span id="xdx_907_eus-gaap--BusinessCombinationRecognizedIdentifiableAssetsAcquiredAndLiabilitiesAssumedFinancialLiabilities_iI_c20230930__us-gaap--BusinessAcquisitionAxis__custom--SenseflyMember_zgn2zyV25n01">1,440,046 </span></span></span><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">(“senseFly COVID Loans”). For the three and nine months ended September 30, 2023, senseFly S.A. made the required payments on the senseFly COVID Loans, including principal and accrued interest, aggregating approximately $<span id="xdx_903_eus-gaap--RepaymentsOfDebt_c20220101__20220331__us-gaap--DebtInstrumentAxis__custom--SenseflyMember_z6j78fDCy52b"><span id="xdx_904_eus-gaap--RepaymentsOfDebt_c20220101__20220930__us-gaap--DebtInstrumentAxis__custom--SenseflyMember_z9FtoA53rpn4">87,052</span> </span></span></span><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">for the three and nine months ended September 30, 2022, respectively, <span id="xdx_909_eus-gaap--RepaymentsOfDebt_do_c20230101__20230930__us-gaap--DebtInstrumentAxis__custom--SenseflyMember_z8X2oVCC2Pj5">no </span></span></span><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">payments of principal and interest were required. As of September 30, 2023, the Company’s outstanding obligations under the senseFly COVID Loans are $<span id="xdx_90B_eus-gaap--DebtInstrumentCarryingAmount_iI_c20230930__us-gaap--DebtInstrumentAxis__custom--SenseflyCovidLoansMember_zxj4qBhtOjQ6">815,906</span></span></span><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">. On August 25, 2023, the Company modified one (1) its existing agreements to extend the repayment period of the COVID Loan from a maturity date of December 2023 to June 2025. The other COVID loan remains unchanged.</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 33.75pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p id="xdx_898_eus-gaap--ScheduleOfMaturitiesOfLongTermDebtTableTextBlock_zrhkJxlREM5d" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 33.75pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">As of September 30, 2023, scheduled principal payments due under the senseFly COVID Loans are as follows:</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 33.75pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; display: none; margin: 0pt 0; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> <span id="xdx_8BC_zc7gJW2vowb9">Schedule of Maturity of SenseFly Covid Loans</span></span></span></p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="display: none; font-family: Times New Roman, Times, Serif; vertical-align: bottom; background-color: White"> <td style="font-family: Times New Roman, Times, Serif; text-align: center"><span style="-sec-ix-redline: true"> </span></td><td style="font-family: Times New Roman, Times, Serif; text-align: center"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: center; font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"> </span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: center"><span style="-sec-ix-redline: true"> </span></td><td id="xdx_49C_20230930__us-gaap--DebtInstrumentAxis__custom--SenseflyCovidLoansMember_zwy7z5Px05D3" style="font-family: Times New Roman, Times, Serif; text-align: center"><span style="-sec-ix-redline: true"> </span></td><td style="font-family: Times New Roman, Times, Serif; text-align: center"><span style="-sec-ix-redline: true"> </span></td></tr> <tr style="font-family: Times New Roman, Times, Serif; vertical-align: bottom"> <td style="font-family: Times New Roman, Times, Serif; text-align: left; font-weight: bold"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">Year ending December 31,</span></span></td><td style="font-family: Times New Roman, Times, Serif; font-weight: bold"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td colspan="2" style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td></tr> <tr id="xdx_402_eus-gaap--LongTermDebtMaturitiesRepaymentsOfPrincipalRemainderOfFiscalYear_iI_pp0p0" style="font-family: Times New Roman, Times, Serif; vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-family: Times New Roman, Times, Serif; width: 77%; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">2023 (rest of year)</span></span></td><td style="font-family: Times New Roman, Times, Serif; width: 1%; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; width: 2%"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; width: 1%; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">$</span></span></td><td style="font-family: Times New Roman, Times, Serif; width: 18%; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">58,487</span></span></td><td style="font-family: Times New Roman, Times, Serif; width: 1%; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td></tr> <tr id="xdx_405_eus-gaap--LongTermDebtMaturitiesRepaymentsOfPrincipalInNextTwelveMonths_iI_pp0p0" style="font-family: Times New Roman, Times, Serif; vertical-align: bottom; background-color: White"> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">2024</span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">306,722</span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td></tr> <tr id="xdx_40A_eus-gaap--LongTermDebtMaturitiesRepaymentsOfPrincipalInYearTwo_iI_pp0p0" style="font-family: Times New Roman, Times, Serif; vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">2025</span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">180,064</span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td></tr> <tr id="xdx_400_eus-gaap--LongTermDebtMaturitiesRepaymentsOfPrincipalInYearThree_iI_pp0p0" style="font-family: Times New Roman, Times, Serif; vertical-align: bottom; background-color: White"> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">2026</span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">90,213</span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td></tr> <tr id="xdx_406_eus-gaap--LongTermDebtMaturitiesRepaymentsOfPrincipalInYearFour_iI_pp0p0" style="font-family: Times New Roman, Times, Serif; vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">2027</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">180,420</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td></tr> <tr id="xdx_40E_eus-gaap--LongTermDebtMaturitiesRepaymentsOfPrincipalInYearFive_iI_pp0p0_zd5iQpkFcdt2" style="display: none; font-family: Times New Roman, Times, Serif; vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">Thereafter</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"></span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td></tr> <tr id="xdx_404_eus-gaap--LongTermDebt_iI_pp0p0" style="font-family: Times New Roman, Times, Serif; vertical-align: bottom; background-color: White"> <td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Total</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="border-bottom: Black 2.5pt double; font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">$</span></span></td><td style="border-bottom: Black 2.5pt double; font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">815,906</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td></tr> </table> <p id="xdx_8A4_z5FuGeF1D2v7" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b> </b></span></span></p> 1440046 87052 87052 815906 <p id="xdx_898_eus-gaap--ScheduleOfMaturitiesOfLongTermDebtTableTextBlock_zrhkJxlREM5d" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 33.75pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">As of September 30, 2023, scheduled principal payments due under the senseFly COVID Loans are as follows:</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 33.75pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; display: none; margin: 0pt 0; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> <span id="xdx_8BC_zc7gJW2vowb9">Schedule of Maturity of SenseFly Covid Loans</span></span></span></p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="display: none; font-family: Times New Roman, Times, Serif; vertical-align: bottom; background-color: White"> <td style="font-family: Times New Roman, Times, Serif; text-align: center"><span style="-sec-ix-redline: true"> </span></td><td style="font-family: Times New Roman, Times, Serif; text-align: center"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: center; font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"> </span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: center"><span style="-sec-ix-redline: true"> </span></td><td id="xdx_49C_20230930__us-gaap--DebtInstrumentAxis__custom--SenseflyCovidLoansMember_zwy7z5Px05D3" style="font-family: Times New Roman, Times, Serif; text-align: center"><span style="-sec-ix-redline: true"> </span></td><td style="font-family: Times New Roman, Times, Serif; text-align: center"><span style="-sec-ix-redline: true"> </span></td></tr> <tr style="font-family: Times New Roman, Times, Serif; vertical-align: bottom"> <td style="font-family: Times New Roman, Times, Serif; text-align: left; font-weight: bold"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">Year ending December 31,</span></span></td><td style="font-family: Times New Roman, Times, Serif; font-weight: bold"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td colspan="2" style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td></tr> <tr id="xdx_402_eus-gaap--LongTermDebtMaturitiesRepaymentsOfPrincipalRemainderOfFiscalYear_iI_pp0p0" style="font-family: Times New Roman, Times, Serif; vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-family: Times New Roman, Times, Serif; width: 77%; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">2023 (rest of year)</span></span></td><td style="font-family: Times New Roman, Times, Serif; width: 1%; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; width: 2%"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; width: 1%; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">$</span></span></td><td style="font-family: Times New Roman, Times, Serif; width: 18%; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">58,487</span></span></td><td style="font-family: Times New Roman, Times, Serif; width: 1%; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td></tr> <tr id="xdx_405_eus-gaap--LongTermDebtMaturitiesRepaymentsOfPrincipalInNextTwelveMonths_iI_pp0p0" style="font-family: Times New Roman, Times, Serif; vertical-align: bottom; background-color: White"> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">2024</span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">306,722</span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td></tr> <tr id="xdx_40A_eus-gaap--LongTermDebtMaturitiesRepaymentsOfPrincipalInYearTwo_iI_pp0p0" style="font-family: Times New Roman, Times, Serif; vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">2025</span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">180,064</span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td></tr> <tr id="xdx_400_eus-gaap--LongTermDebtMaturitiesRepaymentsOfPrincipalInYearThree_iI_pp0p0" style="font-family: Times New Roman, Times, Serif; vertical-align: bottom; background-color: White"> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">2026</span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">90,213</span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td></tr> <tr id="xdx_406_eus-gaap--LongTermDebtMaturitiesRepaymentsOfPrincipalInYearFour_iI_pp0p0" style="font-family: Times New Roman, Times, Serif; vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">2027</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">180,420</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td></tr> <tr id="xdx_40E_eus-gaap--LongTermDebtMaturitiesRepaymentsOfPrincipalInYearFive_iI_pp0p0_zd5iQpkFcdt2" style="display: none; font-family: Times New Roman, Times, Serif; vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">Thereafter</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"></span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td></tr> <tr id="xdx_404_eus-gaap--LongTermDebt_iI_pp0p0" style="font-family: Times New Roman, Times, Serif; vertical-align: bottom; background-color: White"> <td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Total</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="border-bottom: Black 2.5pt double; font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">$</span></span></td><td style="border-bottom: Black 2.5pt double; font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">815,906</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td></tr> </table> 58487 306722 180064 90213 180420 815906 <p id="xdx_808_eus-gaap--ShortTermDebtTextBlock_z8rmICwp7xJl" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Note 6 – <span id="xdx_821_zWbLCvBrITc1">Promissory Note and Warrant</span></b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">On December 6, 2022, the Company entered into a Securities Purchase Agreement (the “Promissory Note Purchase Agreement”) with an institutional investor (the “Investor”) which is an existing shareholder of the Company. Pursuant to the terms of the Promissory Note Purchase Agreement, the Company has agreed to issue to the Investor (i) an 8% original issue discount promissory note (the “Note”) in the aggregate principal amount of $<span id="xdx_905_eus-gaap--DebtInstrumentFaceAmount_iI_c20221206_zLJv1qTNiuZ9">3,500,000</span></span></span><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">, and (ii) a common stock purchase warrant (the “Promissory Note Warrant”) to purchase up to <span id="xdx_90F_eus-gaap--ClassOfWarrantOrRightNumberOfSecuritiesCalledByWarrantsOrRights_iI_c20221206_zAoh2CdBnP49">5,000,000 </span></span></span><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">shares of the Company’s Common Stock (the “Shares”) at an exercise price of $<span id="xdx_904_eus-gaap--ClassOfWarrantOrRightExercisePriceOfWarrantsOrRights1_iI_pid_c20221206_zEPvxqWxvk1f">0.44 </span></span></span><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">per share, subject to standard anti-dilution adjustments. The Note is an unsecured obligation of the Company. It has an original issue discount of <span id="xdx_90B_ecustom--DebtInstrumentOriginalIssueDiscountPercent_pid_dp_uPure_c20221206__20221206_zd8ZuFIAGn5h">4</span></span></span><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">% and bears interest at <span id="xdx_90B_eus-gaap--DebtInstrumentInterestRateStatedPercentage_iI_pid_dp_uPure_c20221206_zQooZSQfSi01">8</span></span></span><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">% per annum. The Company received net proceeds of $<span id="xdx_908_eus-gaap--ProceedsFromNotesPayable_c20221206__20221206_zOdJAWAnPuV2">3,285,000 </span></span></span><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">net of the original issue discount of $<span id="xdx_908_eus-gaap--InvestmentIncomeAmortizationOfDiscount_c20221206__20221206_zXggnpUC0I3">140,000</span></span></span> <span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">and $<span id="xdx_904_eus-gaap--DeferredFinanceCostsNet_iI_c20221206_zyr7OOc8zW99">75,000</span></span></span> <span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">of issuance costs. The Promissory Note Warrant was not exercisable for the first six months after issuance and had a five-year term from the initial exercise date of June 6, 2023.</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 33.75pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The Company determined the estimated fair value of the common stock warrants issued with the Note to be $<span id="xdx_906_eus-gaap--FairValueAdjustmentOfWarrants_c20230101__20230930_zQOKXfFBG1ha">1,847,200 </span></span></span><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">using a Black-Scholes pricing model. In accordance with ASC <i>470-20 Debt</i>, the Company recorded a discount of $<span id="xdx_907_eus-gaap--InvestmentIncomeAmortizationOfDiscount_c20230101__20230930_zdy7ioMK57wb">1,182,349 </span></span></span><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">on the Note based on the relative fair value of the warrants and total proceeds. At Note issuance, the Company recorded a total discount on the debt of $<span id="xdx_90E_ecustom--DebtInstrumentDiscountIncludingFairValueOfWarrants_c20230101__20230930_zHIdVWAxZ8g8">1,397,350 </span></span></span><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">comprised of the relative fair value of the warrants, the original issue discount, and the issuance costs. The aggregate discount was being amortized into interest expense over the approximate two-year term of the Note. The Company used the following assumptions in determining the fair value of the warrants: expected term of five years, volatility rate of <span id="xdx_90D_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExpectedVolatilityRate_pid_dp_uPure_c20230101__20230930__us-gaap--StatementEquityComponentsAxis__us-gaap--WarrantMember_zbghxP7UHZp5">135.8</span></span></span><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">%, risk free rate of <span id="xdx_908_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsRiskFreeInterestRate_pid_dp_uPure_c20230101__20230930__us-gaap--StatementEquityComponentsAxis__us-gaap--WarrantMember_zAwXPLElxhL9">3.73</span></span></span><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">%, and dividend rate of <span id="xdx_90F_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExpectedDividendRate_pid_dp_uPure_c20230101__20230930__us-gaap--StatementEquityComponentsAxis__us-gaap--WarrantMember_z7CMzA9dBWp">0</span></span></span><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">%.</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 33.75pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Beginning June 1, 2023, and on the first business day of each month thereafter, the Company shall pay 1/20^th ($<span id="xdx_904_eus-gaap--DebtInstrumentIssuedPrincipal_c20230601__20230601_zceocbPxRM21">175,000</span></span></span><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">) of the original principal amount (the “Monthly Amortization Payments”) of the Note plus any accrued but unpaid interest, with any remaining principal plus accrued interest payable in full upon the maturity date of December 31, 2024 or the occurrence of an Event of Default (as defined in the Note). In addition, to the extent the Company raises any equity capital (by private placement, public offering or otherwise), the Company shall utilize 50% of the net proceeds from such equity financing to prepay the Note, within two business days of the Company’s receipt of such funds. In the event such equity financing is provided by the Investor, pursuant to the terms of that certain Securities Purchase Agreement, dated as June 26, 2022, or otherwise (an “Additional Investment”), the Investor shall agree to accept 50% less warrant coverage in connection with such Additional Investment, up to $<span id="xdx_90B_eus-gaap--InvestmentsInAndAdvancesToAffiliatesAtFairValueGrossAdditions_c20220626__20220626_z6XvY1nph0Jb">3,300,000 </span></span></span><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">of such Additional Investment.</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>AGEAGLE AERIAL SYSTEMS INC. AND SUBSIDIARIES</b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS</b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2023 AND 2022</b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>(UNAUDITED)</b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Note 6 – Promissory Note and Warrant – Continued</b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 33.75pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">On August 14, 2023, the Company and Investor entered into a Note Amendment Agreement due to the Company not making the Monthly Amortization Payments for the months of June – August 2023. Pursuant to the Note Amendment Agreement, the parties agreed to amend the Note as follows:</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 33.75pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif; width: 0.5in"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></td> <td style="font: 10pt Times New Roman, Times, Serif; width: 0.5in"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">(i)</span></span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">defer payment of the Monthly Amortization Payments for June 2023, July 2023 and August 2023 in the aggregate amount of $<span id="xdx_900_eus-gaap--AmortizationOfFinancingCosts_c20230801__20230831_zPEFN9LwPssh">525,000 </span></span></span><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">(the “Deferred Payments”), and the September Monthly Amortization Payment, in the amount of $<span id="xdx_907_eus-gaap--AmortizationOfFinancingCosts_c20230914__20230915_z5hCdB0OcMK1">175,000</span></span></span><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">, until September 15, 2023. As of September 30, 2023, the Deferred Payments per the terms of the Amended Note were not made (see below).</span></span></td></tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></td> <td style="font: 10pt Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></td></tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></td> <td style="font: 10pt Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">(ii)</span></span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">increase the principal amount of the Note by $<span id="xdx_90D_eus-gaap--DebtInstrumentAnnualPrincipalPayment_iI_c20230814__srt--RangeAxis__srt--MinimumMember_zZ1pKpfbnQIc">595,000 </span></span></span><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">so that the current principal amount of the Note is $<span id="xdx_90D_eus-gaap--DebtInstrumentAnnualPrincipalPayment_iI_c20230814__srt--RangeAxis__srt--MaximumMember_zxq0sbkPmyCl">4,095,000</span></span></span><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">.</span></span></td></tr> </table> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 33.75pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The Note Amendment Agreement resulted in a debt extinguishment due to the modified terms of the Note being substantially different than the original terms primarily due to the substantial increase in principal of $<span id="xdx_90A_eus-gaap--DebtInstrumentIncreaseAccruedInterest_c20230101__20230930_zJ8Ybl7Hwttf">595,000</span></span></span><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">. In accordance with ASC 470-50-40-2, the Company recorded a loss on debt extinguishment of $<span id="xdx_90A_eus-gaap--GainsLossesOnExtinguishmentOfDebt_iN_di_c20230101__20230930_z0rTFNhPaoy5">1,523,867 </span></span></span><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">for the difference between the reacquisition price of the debt, of $<span id="xdx_90A_eus-gaap--DebtInstrumentAnnualPrincipalPayment_iI_c20230930_z6yVOOAj2d9c">4,095,000</span></span></span> <span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">and the net carrying amount of the extinguished debt of $<span id="xdx_903_ecustom--GainsLossesOnExtinguishmentOfDebtNet_c20230101__20230930_z6rlpeuccjW3">2,571,133 </span></span></span><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">comprised of $<span id="xdx_902_eus-gaap--DebtInstrumentFaceAmount_iI_c20230930_zwi9VGBcsEl">3,500,000 </span></span></span><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">of principal less $<span id="xdx_90F_eus-gaap--DebtInstrumentUnamortizedDiscountCurrent_iI_c20230930_z3gcLQ7GIjG9">928,867 </span></span></span><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">of unamortized debt discounts and issuance costs on the original debt.</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 33.75pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">On September 15, 2023, the Company and Investor entered into a Warrant Exchange Agreement pursuant to which the Company agreed to issue to the Investor <span id="xdx_90C_eus-gaap--StockIssuedDuringPeriodSharesNewIssues_c20230915__20230915__us-gaap--StatementEquityComponentsAxis__us-gaap--CommonStockMember__us-gaap--TypeOfArrangementAxis__custom--WarrantExchangeAgreementMember_z2jT1QDq12Ya">5,000,000 </span></span></span><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">shares of common stock in exchange for the Warrant for no consideration. The Company accounted for the incremental value of the Promissory Note Warrant modification of $<span id="xdx_905_ecustom--IncrementalValuePromissoryNote_c20230915__20230915__us-gaap--StatementEquityComponentsAxis__us-gaap--CommonStockMember__us-gaap--TypeOfArrangementAxis__custom--WarrantExchangeAgreementMember_z4ITgjJjiSR8">190,500 </span></span></span><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">as an increase in additional paid-in capital and interest expense on the condensed consolidated statements of operations and comprehensive income (loss). The incremental value was computed using a Black-Scholes pricing model pre and post modification and the following inputs: stock price $<span id="xdx_90E_eus-gaap--WarrantsAndRightsOutstandingMeasurementInput_iI_pid_uPure_c20230915__us-gaap--MeasurementInputTypeAxis__us-gaap--MeasurementInputSharePriceMember_zByt048cXlm2">.19</span></span></span><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">, exercise price $<span id="xdx_909_eus-gaap--WarrantsAndRightsOutstandingMeasurementInput_iI_pid_uPure_c20230915__us-gaap--MeasurementInputTypeAxis__custom--MeasurementInputExercisePricePreModificationMember_zgZoFaHhhDe5">.44 </span></span></span><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">(pre modification) and $<span id="xdx_901_eus-gaap--WarrantsAndRightsOutstandingMeasurementInput_iI_pid_uPure_c20230915__us-gaap--MeasurementInputTypeAxis__custom--MeasurementInputExercisePricePostModificationMember_znT1MGTk4TKk">0 </span></span></span><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">(post modification), volatility of <span id="xdx_90F_eus-gaap--WarrantsAndRightsOutstandingMeasurementInput_iI_pid_uPure_c20230915__us-gaap--MeasurementInputTypeAxis__us-gaap--MeasurementInputPriceVolatilityMember_zo1OdZoA8DM7">129</span></span></span><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">%, and discount rate of <span id="xdx_900_eus-gaap--WarrantsAndRightsOutstandingMeasurementInput_iI_pid_uPure_c20230915__us-gaap--MeasurementInputTypeAxis__us-gaap--MeasurementInputDiscountRateMember_zwlJK8umQAL4">4.45</span></span></span><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">%.</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 33.75pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">On October 5, 2023, the Company and the Investor entered into a Second Note Amendment Agreement (the “Second Amendment”), which provides for the following:</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif; width: 0.5in"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></td> <td style="font: 10pt Times New Roman, Times, Serif; width: 0.5in"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">(i)</span></span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">the Deferred Payments shall be due and payable on December 15, 2023; </span></span></td></tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></td> <td style="font: 10pt Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></td></tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></td> <td style="font: 10pt Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">(ii)</span></span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">the Amortization Payments (defined in the Note) scheduled for September 15, 2023, October 1, 2023, and November 1, 2023, shall be deferred and made part of the Amortization Payments commencing in January 2024; and </span></span></td></tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></td> <td style="font: 10pt Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></td></tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></td> <td style="font: 10pt Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">(iii)</span></span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><span style="-sec-ix-redline: true"><span id="xdx_90B_ecustom--NetProceedsPercentage_pid_dp_uPure_c20231005__20231005_zu48ID12iIbh" style="font-family: Times New Roman, Times, Serif; font-size: 10pt">50</span></span><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">% of any net proceeds above $<span id="xdx_904_eus-gaap--ProceedsFromDebtNetOfIssuanceCosts_c20231005__20231005_zFoYPi0XtR39">2,000,000 </span></span></span><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">from any equity financing between the date of the Second Amendment and December 15, 2023, shall be used to prepay the Note. The Second Amendment also partially waives the Event of Default in Section 3 (a)(vii) of the Note as a result of the resignation of a majority of the officers listed therein.</span></span></td></tr> </table> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">During the three and nine months ended September 30, 2023, the Company recognized $<span id="xdx_90A_eus-gaap--InterestExpense_c20230701__20230930_zYnHqZzEJvB1">84,443 </span></span></span><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">and $<span id="xdx_908_eus-gaap--InterestExpense_c20230101__20230930_zr09uVcwLdV9">412,188 </span></span></span><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">respectively, of interest expense related to the amortization of the discounts prior to the debt extinguishment which has been included in interest expense on the condensed consolidated statements of operations and comprehensive income (loss). As of September 30, 2023, the unamortized discount was $<span id="xdx_90F_eus-gaap--DebtInstrumentUnamortizedDiscount_iI_c20230930_zBbYEkNZY3t">0</span></span></span><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">.</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">During the three and nine months ended September 30, 2023, the Company recorded $<span id="xdx_90E_eus-gaap--InterestExpense_c20220701__20220930_zAFBJHGNSnKk">75,950 </span></span></span><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">and $<span id="xdx_90F_eus-gaap--InterestExpense_c20220101__20220930_z907Ibxhpsb2">236,172</span></span></span><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">, respectively, of interest expense related to the Note in the condensed consolidated statements of operations and comprehensive income (loss), and as of September 30, 2023, there is $<span id="xdx_90C_eus-gaap--InterestExpense_c20220101__20220930_zGY6CfSEFWfg">236,172 </span></span></span><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">of accrued interest included in accrued liabilities on the unaudited condensed consolidated balance sheets.</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>AGEAGLE AERIAL SYSTEMS INC. AND SUBSIDIARIES</b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS</b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2023 AND 2022</b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>(UNAUDITED)</b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Note 6 – Promissory Note and Warrant – Continued</b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b> </b></span></span></p> <p id="xdx_89A_ecustom--ScheduleOfPrincipalPaymentsDueTableTextBlock_zX94rA4i2v8k" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">As of September 30, 2023, scheduled principal payments due under the Second Amended Note are as follows:</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </p> <p style="font: 10pt Times New Roman, Times, Serif; display: none; margin: 0pt 0; text-align: justify; text-indent: 33.75pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> <span id="xdx_8B2_zOMWvfFTyh7">Schedule of Principal Payments Due</span></span></span></p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="font-family: Times New Roman, Times, Serif; vertical-align: bottom"> <td style="font-family: Times New Roman, Times, Serif; text-align: left; font-weight: bold"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">Year ending December 31,</span></span></td><td style="font-family: Times New Roman, Times, Serif; font-weight: bold"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td colspan="2" id="xdx_494_20230930__us-gaap--DebtInstrumentAxis__custom--SecondAmendedNoteMember_zb65i5xDxvBj" style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td></tr> <tr id="xdx_40D_eus-gaap--LongTermDebtMaturitiesRepaymentsOfPrincipalRemainderOfFiscalYear_iI_pp0p0_znZeuToz41ql" style="font-family: Times New Roman, Times, Serif; vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-family: Times New Roman, Times, Serif; width: 77%; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">2023 (rest of year)</span></span></td><td style="font-family: Times New Roman, Times, Serif; width: 1%; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; width: 2%"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; width: 1%; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">$</span></span></td><td style="font-family: Times New Roman, Times, Serif; width: 18%; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">525,000</span></span></td><td style="font-family: Times New Roman, Times, Serif; width: 1%; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td></tr> <tr id="xdx_400_eus-gaap--LongTermDebtMaturitiesRepaymentsOfPrincipalInNextTwelveMonths_iI_pp0p0_zELWWJQaX0Jh" style="font-family: Times New Roman, Times, Serif; vertical-align: bottom; background-color: White"> <td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">2024</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">3,570,000</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td></tr> <tr id="xdx_408_eus-gaap--LongTermDebt_iTI_pp0p0_z6DSlI139r7f" style="font-family: Times New Roman, Times, Serif; vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Total</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="border-bottom: Black 2.5pt double; font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">$</span></span></td><td style="border-bottom: Black 2.5pt double; font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">4,095,000</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td></tr> </table> <p id="xdx_8AA_zWgaBUs7YNO4" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b> </b></span></span></p> 3500000 5000000 0.44 0.04 0.08 3285000 140000 75000 1847200 1182349 1397350 1.358 0.0373 0 175000 3300000 525000 175000 595000 4095000 595000 -1523867 4095000 2571133 3500000 928867 5000000 190500 0.19 0.44 0 129 4.45 0.50 2000000 84443 412188 0 75950 236172 236172 <p id="xdx_89A_ecustom--ScheduleOfPrincipalPaymentsDueTableTextBlock_zX94rA4i2v8k" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">As of September 30, 2023, scheduled principal payments due under the Second Amended Note are as follows:</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </p> <p style="font: 10pt Times New Roman, Times, Serif; display: none; margin: 0pt 0; text-align: justify; text-indent: 33.75pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> <span id="xdx_8B2_zOMWvfFTyh7">Schedule of Principal Payments Due</span></span></span></p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="font-family: Times New Roman, Times, Serif; vertical-align: bottom"> <td style="font-family: Times New Roman, Times, Serif; text-align: left; font-weight: bold"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">Year ending December 31,</span></span></td><td style="font-family: Times New Roman, Times, Serif; font-weight: bold"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td colspan="2" id="xdx_494_20230930__us-gaap--DebtInstrumentAxis__custom--SecondAmendedNoteMember_zb65i5xDxvBj" style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td></tr> <tr id="xdx_40D_eus-gaap--LongTermDebtMaturitiesRepaymentsOfPrincipalRemainderOfFiscalYear_iI_pp0p0_znZeuToz41ql" style="font-family: Times New Roman, Times, Serif; vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-family: Times New Roman, Times, Serif; width: 77%; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">2023 (rest of year)</span></span></td><td style="font-family: Times New Roman, Times, Serif; width: 1%; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; width: 2%"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; width: 1%; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">$</span></span></td><td style="font-family: Times New Roman, Times, Serif; width: 18%; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">525,000</span></span></td><td style="font-family: Times New Roman, Times, Serif; width: 1%; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td></tr> <tr id="xdx_400_eus-gaap--LongTermDebtMaturitiesRepaymentsOfPrincipalInNextTwelveMonths_iI_pp0p0_zELWWJQaX0Jh" style="font-family: Times New Roman, Times, Serif; vertical-align: bottom; background-color: White"> <td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">2024</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">3,570,000</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td></tr> <tr id="xdx_408_eus-gaap--LongTermDebt_iTI_pp0p0_z6DSlI139r7f" style="font-family: Times New Roman, Times, Serif; vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Total</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="border-bottom: Black 2.5pt double; font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">$</span></span></td><td style="border-bottom: Black 2.5pt double; font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">4,095,000</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td></tr> </table> 525000 3570000 4095000 <p id="xdx_803_eus-gaap--StockholdersEquityNoteDisclosureTextBlock_z6GR5RtMEbVd" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Note 7 – <span id="xdx_82B_zBhnb3DOXqZ5">Stockholders’ Equity</span></b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 33.75pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i>Common Stock and Warrant Transaction</i></b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">On June 5, 2023, the Company entered into a Securities Purchase Agreement (the “Purchase Agreement”) with certain accredited investors (the “Investors”). Pursuant to the terms of the Purchase Agreement, the Company has agreed to issue and sell to Investors (i) <span class="xdx_phnt_RGlzY2xvc3VyZSAtIFN0b2NraG9sZGVyc5IgRXF1aXR5IChEZXRhaWxzIE5hcnJhdGl2ZSAxKQA_" id="xdx_909_eus-gaap--SaleOfStockNumberOfSharesIssuedInTransaction_c20230605__20230605__us-gaap--TypeOfArrangementAxis__custom--PurchaseAgreementMember__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__us-gaap--InvestorMember_zcChEqrxcdpc">16,720,000 </span></span></span><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">shares of Common Stock (the “Offering Shares”) at $<span class="xdx_phnt_RGlzY2xvc3VyZSAtIFN0b2NraG9sZGVyc5IgRXF1aXR5IChEZXRhaWxzIE5hcnJhdGl2ZSAxKQA_" id="xdx_90A_eus-gaap--SaleOfStockPricePerShare_iI_pid_c20230605__us-gaap--TypeOfArrangementAxis__custom--PurchaseAgreementMember__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__us-gaap--InvestorMember_zaxVutG61R5k">0.25 </span></span></span><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">per share and (ii) warrants to purchase up to <span class="xdx_phnt_RGlzY2xvc3VyZSAtIFN0b2NraG9sZGVyc5IgRXF1aXR5IChEZXRhaWxzIE5hcnJhdGl2ZSAxKQA_" id="xdx_904_eus-gaap--ClassOfWarrantOrRightNumberOfSecuritiesCalledByWarrantsOrRights_iI_c20230605__us-gaap--TypeOfArrangementAxis__custom--PurchaseAgreementMember__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__us-gaap--InvestorMember_zThqrDp0oCLf">25,080,000 </span></span></span><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">shares of common stock (the “Warrants”), exercisable at $<span class="xdx_phnt_RGlzY2xvc3VyZSAtIFN0b2NraG9sZGVyc5IgRXF1aXR5IChEZXRhaWxzIE5hcnJhdGl2ZSAxKQA_" id="xdx_90B_eus-gaap--ClassOfWarrantOrRightExercisePriceOfWarrantsOrRights1_iI_pid_c20230605__us-gaap--TypeOfArrangementAxis__custom--PurchaseAgreementMember__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__us-gaap--InvestorMember_zoIwuDCrcm4a">0.38 </span></span></span><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">per share (the “Warrant Shares” together with the Warrants and Offering Shares, the “Securities”) and raised gross sales proceeds of $<span class="xdx_phnt_RGlzY2xvc3VyZSAtIFN0b2NraG9sZGVyc5IgRXF1aXR5IChEZXRhaWxzIE5hcnJhdGl2ZSAxKQA_" id="xdx_906_eus-gaap--ProceedsFromIssuanceOfWarrants_c20230605__20230605__us-gaap--TypeOfArrangementAxis__custom--PurchaseAgreementMember__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__us-gaap--InvestorMember_zAwvs5u5TEPa">4,180,000</span></span></span><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">. The Warrant is for a term of <span class="xdx_phnt_RGlzY2xvc3VyZSAtIFN0b2NraG9sZGVyc5IgRXF1aXR5IChEZXRhaWxzIE5hcnJhdGl2ZSAxKQA_" id="xdx_90E_eus-gaap--WarrantsAndRightsOutstandingTerm_iI_dtY_c20230605__us-gaap--TypeOfArrangementAxis__custom--PurchaseAgreementMember_zMQSN2lloIg4">5.5 </span></span></span><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">years commencing on the closing date but is not exercisable for the first six months after closing. As a result, pursuant to the Purchase Agreement the Company issued <span class="xdx_phnt_RGlzY2xvc3VyZSAtIFN0b2NraG9sZGVyc5IgRXF1aXR5IChEZXRhaWxzIE5hcnJhdGl2ZSAxKQA_" id="xdx_907_eus-gaap--StockIssuedDuringPeriodSharesNewIssues_c20230605__20230605__us-gaap--TypeOfArrangementAxis__custom--PurchaseAgreementMember_zgsRxtGDqjx9">16,720,000 </span></span></span><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">shares of Common Stock for proceeds of $<span class="xdx_phnt_RGlzY2xvc3VyZSAtIFN0b2NraG9sZGVyc5IgRXF1aXR5IChEZXRhaWxzIE5hcnJhdGl2ZSAxKQA_" id="xdx_90B_eus-gaap--ProceedsFromIssuanceOfCommonStock_c20230605__20230605__us-gaap--TypeOfArrangementAxis__custom--PurchaseAgreementMember_zD92iGy6yx4l">3,817,400</span></span></span><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">, net of issuance costs from the offering and warrants to purchase up to <span class="xdx_phnt_RGlzY2xvc3VyZSAtIFN0b2NraG9sZGVyc5IgRXF1aXR5IChEZXRhaWxzIE5hcnJhdGl2ZSAxKQA_" id="xdx_905_eus-gaap--ClassOfWarrantOrRightNumberOfSecuritiesCalledByWarrantsOrRights_iI_c20230605__us-gaap--TypeOfArrangementAxis__custom--PurchaseAgreementMember_ziwbjgnGkbBi">25,080,000 </span></span></span><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">shares of common stock exercisable at $<span class="xdx_phnt_RGlzY2xvc3VyZSAtIFN0b2NraG9sZGVyc5IgRXF1aXR5IChEZXRhaWxzIE5hcnJhdGl2ZSAxKQA_" id="xdx_909_eus-gaap--ClassOfWarrantOrRightExercisePriceOfWarrantsOrRights1_iI_pid_c20230605__us-gaap--TypeOfArrangementAxis__custom--PurchaseAgreementMember_zcGUHfovXX45">0.38 </span></span></span><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">per share.</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 33.75pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Pursuant to the terms of the Purchase Agreement, the Company has agreed to certain restrictions on future stock offerings, including that during the 90 day period following the date of the execution of the Purchase Agreement, the Company will not (i) issue (or enter into any agreement to issue) any shares of common stock or common stock equivalents, subject to certain exceptions, or (ii) file any registration statement or any amendment or supplement thereto relating to the offering or resale of any shares of the Company or any securities convertible into or exercisable or exchangeable for shares of Company, subject to certain exceptions. From the date of the execution of the Purchase Agreement until the six (6) month anniversary of the date of closing, neither the Company nor any Subsidiary shall effect or enter into an agreement to effect any issuance by the Company or any of its Subsidiaries of shares of common stock or common stock equivalents (or a combination of units thereof) involving a variable rate transaction, subject to certain exceptions.</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 33.75pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b> </b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>AGEAGLE AERIAL SYSTEMS INC. AND SUBSIDIARIES</b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS</b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2023 AND 2022</b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>(UNAUDITED)</b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b> </b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Note 7 – Stockholders’ Equity – Continued</b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 33.75pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">For twelve (12) months following the closing date of the Offering, in the event the Company or any of its subsidiaries proposes to offer and sell shares of Common Stock or common stock equivalents (the “Offered Securities”) to investors primarily for capital raising purposes (each, a “Future Offering”), the Investors shall have the right, but not the obligation, to participate in each such Future Offering in an amount of up to <span class="xdx_phnt_RGlzY2xvc3VyZSAtIFN0b2NraG9sZGVyc5IgRXF1aXR5IChEZXRhaWxzIE5hcnJhdGl2ZSAxKQA_" id="xdx_908_ecustom--PercentageOfAggregateOfTheOfferedSecurities_iI_pid_dp_uPure_c20230930_zUDMYznNW6rg">50</span></span></span><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">% in the aggregate of the Offered Securities.</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 33.75pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The Offering Shares were issued pursuant to a prospectus supplement and was filed with the Securities and Exchange Commission (the “Commission”) on June 7, 2023, and the prospectus included in the Company’s Registration Statement on Form S-3 (Registration No. 333-252801), which was filed with the Commission on April 23, 2021, and was declared effective on May 6, 2021. The Warrants were issued in a concurrent private placement under Section 4(a)(2) of the Securities Act of 1933, as amended (the “Securities Act”) and have not been registered under the Securities Act, or applicable state securities laws.</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 33.75pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The Warrants were issued on the date of closing. The exercise price of the Warrants and the number of Warrant Shares issuable upon the exercise thereof will be subject to adjustment in the event of any stock dividends and splits, reverse stock split, recapitalization, reorganization, or similar transaction, as described in the Warrants, but has no anti-dilution protection provisions. The Warrants will be exercisable on a “cashless” basis only in the event there is no effective registration statement registering, or the prospectus contained therein is not available for the sale of the Warrant Shares. The Warrants contain a beneficial ownership limitation, such that none of such Warrants may be exercised, if, at the time of such exercise, the holder would become the beneficial owner of more than <span class="xdx_phnt_RGlzY2xvc3VyZSAtIFN0b2NraG9sZGVyc5IgRXF1aXR5IChEZXRhaWxzIE5hcnJhdGl2ZSAxKQA_" id="xdx_905_ecustom--PercentageOfBeneficialOwnershipLimitation_pid_dp_uPure_c20230101__20230930__srt--RangeAxis__srt--MinimumMember_zzpUSQbYHheg">4.99</span></span></span><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">% or <span class="xdx_phnt_RGlzY2xvc3VyZSAtIFN0b2NraG9sZGVyc5IgRXF1aXR5IChEZXRhaWxzIE5hcnJhdGl2ZSAxKQA_" id="xdx_906_ecustom--PercentageOfBeneficialOwnershipLimitation_pid_dp_uPure_c20230101__20230930__srt--RangeAxis__srt--MaximumMember_zCYfR5JZNuza">9.99</span></span></span><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">%, as determined by the Investor, of the Company’s outstanding shares of Common Stock following the exercise of such Warrant.</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 33.75pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Pursuant to the terms of the Purchase Agreement, the Company filed a registration statement on Form S-1 Registration No. 333-273332), which was declared effective on July 27, 2023, providing for the resale by the Investors of the Warrant Shares issuable upon exercise of the Warrants.</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 33.75pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">In connection with the Offering, the Company also entered into a Lock-up Agreement with the Investors and each officer and director of the Company (collectively, the “Shareholders”), for the benefit of the Investors, with respect to the shares beneficially owned the Shareholders. The restrictions on the disposition of the shares was for a period of 30 days from the date of the closing of the Offering, except for the continuous use of any existing Rule 10b5-1 trading plan and other customary exceptions.</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 33.75pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 33.75pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i>Preferred Series F Convertible Stock and Warrant Transaction</i></b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 33.75pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">On June 26, 2022 (the “Series F Closing Date”), the Company entered into a Securities Purchase Agreement (the “Series F Agreement”) with Alpha Capital Anstalt (“Alpha”). Pursuant to the terms of the Series F Agreement, the Board of Directors of the Company (the “Board”) designated a new series of Preferred Stock, the Series F 5% Preferred Convertible Stock (“Series F”), and authorized the sale and issuance of up to <span class="xdx_phnt_RGlzY2xvc3VyZSAtIFN0b2NraG9sZGVyc5IgRXF1aXR5IChEZXRhaWxzIE5hcnJhdGl2ZSAxKQA_" id="xdx_906_eus-gaap--PreferredStockSharesAuthorized_iI_c20220626__us-gaap--TypeOfArrangementAxis__custom--SeriesFAgreementMember__us-gaap--StatementClassOfStockAxis__custom--PreferredSeriesFConvertibleStockMember_zyq43qwUvZGl">35,000 </span></span></span><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">shares of Series F. The Company issued to Alpha <span class="xdx_phnt_RGlzY2xvc3VyZSAtIFN0b2NraG9sZGVyc5IgRXF1aXR5IChEZXRhaWxzIE5hcnJhdGl2ZSAxKQA_" id="xdx_90E_eus-gaap--StockIssuedDuringPeriodSharesNewIssues_c20220626__20220626__us-gaap--TypeOfArrangementAxis__custom--SeriesFAgreementMember__us-gaap--StatementClassOfStockAxis__custom--PreferredSeriesFConvertibleStockMember_zmrlSLiZfPfa">10,000 </span></span></span><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">shares of Series F for an aggregate purchase price and gross proceeds of $<span class="xdx_phnt_RGlzY2xvc3VyZSAtIFN0b2NraG9sZGVyc5IgRXF1aXR5IChEZXRhaWxzIE5hcnJhdGl2ZSAxKQA_" id="xdx_909_eus-gaap--StockIssuedDuringPeriodValueNewIssues_c20220626__20220626__us-gaap--TypeOfArrangementAxis__custom--SeriesFAgreementMember__us-gaap--StatementClassOfStockAxis__custom--PreferredSeriesFConvertibleStockMember_zNTUw14GitE7">10,000,000</span></span></span><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">, however the company received proceeds of $<span class="xdx_phnt_RGlzY2xvc3VyZSAtIFN0b2NraG9sZGVyc5IgRXF1aXR5IChEZXRhaWxzIE5hcnJhdGl2ZSAxKQA_" id="xdx_904_eus-gaap--ProceedsFromIssuanceOfConvertiblePreferredStock_c20220626__20220626__us-gaap--TypeOfArrangementAxis__custom--SeriesFAgreementMember__us-gaap--StatementClassOfStockAxis__custom--PreferredSeriesFConvertibleStockMember_zGnjgElBzGWc">9,920,000 </span></span></span><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">net of issuance costs. The <span class="xdx_phnt_RGlzY2xvc3VyZSAtIFN0b2NraG9sZGVyc5IgRXF1aXR5IChEZXRhaWxzIE5hcnJhdGl2ZSAxKQA_" id="xdx_902_eus-gaap--PreferredStockSharesIssued_iI_c20220626__us-gaap--TypeOfArrangementAxis__custom--SeriesFAgreementMember__us-gaap--StatementClassOfStockAxis__custom--PreferredSeriesFConvertibleStockMember_zmH09Onw4CEe">10,000 </span></span></span><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">shares of Series F are convertible into <span class="xdx_phnt_RGlzY2xvc3VyZSAtIFN0b2NraG9sZGVyc5IgRXF1aXR5IChEZXRhaWxzIE5hcnJhdGl2ZSAxKQA_" id="xdx_902_eus-gaap--ConvertiblePreferredStockSharesIssuedUponConversion_iI_c20220626__us-gaap--TypeOfArrangementAxis__custom--SeriesFAgreementMember__us-gaap--StatementClassOfStockAxis__custom--PreferredSeriesFConvertibleStockMember_zt5GUb4jN06h">16,129,032 </span></span></span><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">shares of Common Stock at $<span class="xdx_phnt_RGlzY2xvc3VyZSAtIFN0b2NraG9sZGVyc5IgRXF1aXR5IChEZXRhaWxzIE5hcnJhdGl2ZSAxKQA_" id="xdx_906_eus-gaap--PreferredStockConvertibleConversionPrice_iI_pid_c20220626__us-gaap--TypeOfArrangementAxis__custom--SeriesFAgreementMember__us-gaap--StatementClassOfStockAxis__custom--PreferredSeriesFConvertibleStockMember_zifo3TiYZSE5">0.62 </span></span></span><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">per share, subject to adjustment. Alpha will be entitled to receive cumulative dividends at the rate per share (as a percentage of the $<span class="xdx_phnt_RGlzY2xvc3VyZSAtIFN0b2NraG9sZGVyc5IgRXF1aXR5IChEZXRhaWxzIE5hcnJhdGl2ZSAxKQA_" id="xdx_909_eus-gaap--PreferredStockValue_iI_c20220626__us-gaap--StatementClassOfStockAxis__custom--PreferredSeriesFConvertibleStockMember_zhIx9oJ1SCx3">1,000 </span></span></span><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">stated par value per share of Series F) of <span class="xdx_phnt_RGlzY2xvc3VyZSAtIFN0b2NraG9sZGVyc5IgRXF1aXR5IChEZXRhaWxzIE5hcnJhdGl2ZSAxKQA_" id="xdx_901_eus-gaap--PreferredStockDividendRatePercentage_pid_dp_uPure_c20220626__20220626__us-gaap--StatementClassOfStockAxis__custom--PreferredSeriesFConvertibleStockMember_zwdZbylGUDh4">5</span></span></span><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">% per annum, payable on January 1, April 1, July 1 and October 1, beginning on the first conversion date and subsequent conversion dates.</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 33.75pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">In connection with the Series F Agreement, the Company issued a warrant to Alpha to purchase <span class="xdx_phnt_RGlzY2xvc3VyZSAtIFN0b2NraG9sZGVyc5IgRXF1aXR5IChEZXRhaWxzIE5hcnJhdGl2ZSAxKQA_" id="xdx_908_eus-gaap--ClassOfWarrantOrRightNumberOfSecuritiesCalledByEachWarrantOrRight_iI_c20230930__us-gaap--TypeOfArrangementAxis__custom--SeriesFAgreementMember__us-gaap--ClassOfWarrantOrRightAxis__custom--SeriesFWarrantsMember_zsXLL9sMCaa">16,129,032 </span></span></span><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">shares of Common Stock, par value $<span class="xdx_phnt_RGlzY2xvc3VyZSAtIFN0b2NraG9sZGVyc5IgRXF1aXR5IChEZXRhaWxzIE5hcnJhdGl2ZSAxKQA_" id="xdx_90D_eus-gaap--CommonStockParOrStatedValuePerShare_iI_c20230930_zPGHzCp8bpP9">0.001 </span></span></span><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">per share (“Series F Warrants”) with an exercise price equal to $<span class="xdx_phnt_RGlzY2xvc3VyZSAtIFN0b2NraG9sZGVyc5IgRXF1aXR5IChEZXRhaWxzIE5hcnJhdGl2ZSAxKQA_" id="xdx_906_eus-gaap--ClassOfWarrantOrRightExercisePriceOfWarrantsOrRights1_iI_pid_c20230930__us-gaap--TypeOfArrangementAxis__custom--SeriesFAgreementMember__us-gaap--ClassOfWarrantOrRightAxis__custom--SeriesFWarrantsMember_zn6cjBLmpjYg">0.96</span></span></span><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">, subject to adjustment, per share of Common Stock. The Series F Warrant, and the shares of Common Stock underling the Series F Warrant are collectively referred to as the “Series F Warrant Shares”. The Series F Warrant was not exercisable for the first six months after its issuance and has a three-year term from its exercise date. Upon exercise of the Series F Warrants in full by Alpha, the Company would receive additional gross proceeds of approximately $<span class="xdx_phnt_RGlzY2xvc3VyZSAtIFN0b2NraG9sZGVyc5IgRXF1aXR5IChEZXRhaWxzIE5hcnJhdGl2ZSAxKQA_" id="xdx_902_eus-gaap--ProceedsFromWarrantExercises_c20230101__20230930__us-gaap--TypeOfArrangementAxis__custom--SeriesFAgreementMember__us-gaap--ClassOfWarrantOrRightAxis__custom--SeriesFWarrantsMember_zzSZot0JtVoe">10,000,000</span></span></span><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">.</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b> </b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>AGEAGLE AERIAL SYSTEMS INC. AND SUBSIDIARIES</b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS</b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2023 AND 2022</b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>(UNAUDITED)</b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b> </b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Note 7 – Stockholders’ Equity – Continued</b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 33.75pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Alpha has the right, subject to certain conditions, including shareholder approval, which was obtained on February 3, 2023, to purchase up to $<span class="xdx_phnt_RGlzY2xvc3VyZSAtIFN0b2NraG9sZGVyc5IgRXF1aXR5IChEZXRhaWxzIE5hcnJhdGl2ZSAxKQA_" id="xdx_90E_ecustom--NumberOfAdditionalSharesToPurchase_c20230101__20230630__us-gaap--StatementClassOfStockAxis__custom--SeriesFOptionMember_zzus7RsjM8O2">25,000,000 </span></span></span><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">of additional shares of Series F and Series F Warrants (collectively the “Series F Option”). The Series F Option will be available for a period of eighteen months after such shareholder approval at a purchase price equal to the average of the volume weighted average price for three trading days prior to the date that Alpha gives notice to the Company that it will exercise the Series F Option.</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Commencing from the Series F Closing Date and for a period of six months thereafter, upon any issuance by the Company or any of its Subsidiaries of Common Stock or Common Stock equivalents for cash consideration, indebtedness or a combination of units thereof (a “Subsequent Financing”), Alpha will have the right to participate in up to an amount of the Subsequent Financing equal to 50% of the Subsequent Financing on the same terms, conditions and price provided for in the Subsequent Financing. Preferred Stock has no voting rights, except that the Company shall not undertake certain corporate actions as set forth in the Certificate of Designation that would materially impact the holders of Preferred Stock without their consent.</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 33.75pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">On December 6, 2022, upon the issuance of the promissory note and common stock warrants with an exercise price of $<span class="xdx_phnt_RGlzY2xvc3VyZSAtIFN0b2NraG9sZGVyc5IgRXF1aXR5IChEZXRhaWxzIE5hcnJhdGl2ZSAxKQA_" id="xdx_904_eus-gaap--ClassOfWarrantOrRightExercisePriceOfWarrantsOrRights1_iI_c20221206__us-gaap--ClassOfWarrantOrRightAxis__custom--CommonStockWarrantsMember_zdLbWKHCa8O9">0.44 </span></span></span><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">(see Note 6), <span class="xdx_phnt_RGlzY2xvc3VyZSAtIFN0b2NraG9sZGVyc5IgRXF1aXR5IChEZXRhaWxzIE5hcnJhdGl2ZSAxKQA_" id="xdx_90B_ecustom--DescriptionOfDownRoundOrAntiDilutionTriggerEvent_c20221206__20221206_zI0huwxQCjP" title="Description of down round or anti dilution trigger event">a down round or anti-dilution trigger event occurred resulting in the conversion rate on the Series F and the exercise price of the Series F Warrants issued with the Series F adjusting down to $0.44 from $</span></span></span><span style="-sec-ix-redline: true"><span class="xdx_phnt_RGlzY2xvc3VyZSAtIFN0b2NraG9sZGVyc5IgRXF1aXR5IChEZXRhaWxzIE5hcnJhdGl2ZSAxKQA_" id="xdx_900_eus-gaap--PreferredStockConvertibleConversionPrice_iI_pid_c20221206__us-gaap--StatementClassOfStockAxis__custom--PreferredSeriesFConvertibleStockMember_zCQlLGYPhRAf" style="font-family: Times New Roman, Times, Serif; font-size: 10pt">0.62 </span></span><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">and $</span></span><span style="-sec-ix-redline: true"><span class="xdx_phnt_RGlzY2xvc3VyZSAtIFN0b2NraG9sZGVyc5IgRXF1aXR5IChEZXRhaWxzIE5hcnJhdGl2ZSAxKQA_" id="xdx_905_eus-gaap--ClassOfWarrantOrRightExercisePriceOfWarrantsOrRights1_iI_c20221206__us-gaap--ClassOfWarrantOrRightAxis__custom--SeriesFWarrantsMember_zkrV2BM2YGd8" style="font-family: Times New Roman, Times, Serif; font-size: 10pt">0.96</span></span><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">, respectively (the “December Down Round Trigger”).</span></span> <span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The December Down Round Trigger resulted in the Company recognizing a deemed dividend on the common stock warrants and Series F of $<span class="xdx_phnt_RGlzY2xvc3VyZSAtIFN0b2NraG9sZGVyc5IgRXF1aXR5IChEZXRhaWxzIE5hcnJhdGl2ZSAxKQA_" id="xdx_903_ecustom--DeemedDividendOnCommonStockWarrants_c20230101__20230930__us-gaap--ClassOfWarrantOrRightAxis__custom--CommonStockWarrantsMember_zDOLfJTX3oT2">565,161 </span></span></span><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">and $<span class="xdx_phnt_RGlzY2xvc3VyZSAtIFN0b2NraG9sZGVyc5IgRXF1aXR5IChEZXRhaWxzIE5hcnJhdGl2ZSAxKQA_" id="xdx_900_eus-gaap--DividendsPreferredStockStock_c20230101__20230930__us-gaap--StatementClassOfStockAxis__custom--PreferredSeriesFConvertibleStockMember_z5D6eZEIymXl">1,680,216</span></span></span><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">, respectively, or aggregate deemed dividend of $<span class="xdx_phnt_RGlzY2xvc3VyZSAtIFN0b2NraG9sZGVyc5IgRXF1aXR5IChEZXRhaWxzIE5hcnJhdGl2ZSAxKQA_" id="xdx_901_ecustom--AggregateDeemedDividend_c20230101__20230930_zaHibs7zKsI8">2,245,377</span></span></span><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">, for the incremental value to the warrant and Series F holder resulting from the reduction in exercise price and conversion price.</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 33.75pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The deemed dividend on the Series F Warrants represents the difference between fair value of the Series F Warrants under the original terms before the December Down Round Trigger and the fair value of the Series F Warrants after December Down Round Trigger at the reduced exercise price. The fair value of the Series F Warrants was determined using a Black-Scholes pricing model and the following assumptions: expected life of <span class="xdx_phnt_RGlzY2xvc3VyZSAtIFN0b2NraG9sZGVyc5IgRXF1aXR5IChEZXRhaWxzIE5hcnJhdGl2ZSAxKQA_" id="xdx_900_eus-gaap--SharebasedCompensationArrangementBySharebasedPaymentAwardFairValueAssumptionsExpectedTerm1_dtY_c20221206__20221206__us-gaap--StatementClassOfStockAxis__custom--SeriesFWarrantsMember_zC80AFy5ill7">3 </span></span></span><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">years, volatility of <span class="xdx_phnt_RGlzY2xvc3VyZSAtIFN0b2NraG9sZGVyc5IgRXF1aXR5IChEZXRhaWxzIE5hcnJhdGl2ZSAxKQA_" id="xdx_909_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExpectedVolatilityRate_pid_dp_uPure_c20221206__20221206__us-gaap--StatementClassOfStockAxis__custom--SeriesFWarrantsMember_zdkwq2x9D18f">150</span></span></span><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">%, risk free rate of <span class="xdx_phnt_RGlzY2xvc3VyZSAtIFN0b2NraG9sZGVyc5IgRXF1aXR5IChEZXRhaWxzIE5hcnJhdGl2ZSAxKQA_" id="xdx_908_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsRiskFreeInterestRate_pid_dp_uPure_c20221206__20221206__us-gaap--StatementClassOfStockAxis__custom--SeriesFWarrantsMember_zOHPelrLgzVl">3.77</span></span></span><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">%, and dividend rate of <span class="xdx_phnt_RGlzY2xvc3VyZSAtIFN0b2NraG9sZGVyc5IgRXF1aXR5IChEZXRhaWxzIE5hcnJhdGl2ZSAxKQA_" id="xdx_900_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExpectedDividendRate_pid_dp_uPure_c20221206__20221206__us-gaap--StatementClassOfStockAxis__custom--SeriesFWarrantsMember_zR9mQaOrw2le">0</span></span></span><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">%.</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 33.75pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">On March 9, 2023, the Company received an Investor Notice from Alpha to purchase an additional <span class="xdx_phnt_RGlzY2xvc3VyZSAtIFN0b2NraG9sZGVyc5IgRXF1aXR5IChEZXRhaWxzIE5hcnJhdGl2ZSAxKQA_" id="xdx_90A_ecustom--AdditionalSharesPurchased_c20230309__20230309__us-gaap--StatementClassOfStockAxis__custom--AdditionalSeriesFPreferredMember_zKXFCVjES4tb">3,000 </span></span></span><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">shares of Series F Convertible Preferred (the “Additional Series F Preferred”). Each share of Additional Series F Preferred is convertible into <span class="xdx_phnt_RGlzY2xvc3VyZSAtIFN0b2NraG9sZGVyc5IgRXF1aXR5IChEZXRhaWxzIE5hcnJhdGl2ZSAxKQA_" id="xdx_903_eus-gaap--ConvertiblePreferredStockSharesIssuedUponConversion_iI_c20230309__us-gaap--StatementClassOfStockAxis__custom--AdditionalSeriesFPreferredMember_zYMvQST7MYd1">2,381 </span></span></span><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">shares of the Company’s Common Stock per $<span class="xdx_phnt_RGlzY2xvc3VyZSAtIFN0b2NraG9sZGVyc5IgRXF1aXR5IChEZXRhaWxzIE5hcnJhdGl2ZSAxKQA_" id="xdx_90D_eus-gaap--PreferredStockValue_iI_c20230309__us-gaap--StatementClassOfStockAxis__custom--AdditionalSeriesFPreferredMember_zFbSCLDmofOb">1,000 </span></span></span><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Stated Value per share of Series F Preferred Stock, at a conversion price of $<span class="xdx_phnt_RGlzY2xvc3VyZSAtIFN0b2NraG9sZGVyc5IgRXF1aXR5IChEZXRhaWxzIE5hcnJhdGl2ZSAxKQA_" id="xdx_909_eus-gaap--PreferredStockConvertibleConversionPrice_iI_pid_c20230309__us-gaap--StatementClassOfStockAxis__custom--AdditionalSeriesFPreferredMember_zDkp7lebwVrb">0.42 </span></span></span><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">per share and associated common stock warrants to purchase up to <span class="xdx_phnt_RGlzY2xvc3VyZSAtIFN0b2NraG9sZGVyc5IgRXF1aXR5IChEZXRhaWxzIE5hcnJhdGl2ZSAxKQA_" id="xdx_906_eus-gaap--ClassOfWarrantOrRightNumberOfSecuritiesCalledByWarrantsOrRights_iI_c20230309__us-gaap--ClassOfWarrantOrRightAxis__custom--AdditionalWarrantMember_zm1gGZXmBcY9">7,142,715 </span></span></span><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">shares of Common Stock at the exercise price of $<span class="xdx_phnt_RGlzY2xvc3VyZSAtIFN0b2NraG9sZGVyc5IgRXF1aXR5IChEZXRhaWxzIE5hcnJhdGl2ZSAxKQA_" id="xdx_90F_eus-gaap--ClassOfWarrantOrRightExercisePriceOfWarrantsOrRights1_iI_c20230309__us-gaap--ClassOfWarrantOrRightAxis__custom--AdditionalWarrantMember_zje5MDRllYK3">0.42 </span></span></span><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">per share warrant (the “Additional Warrant”) for an aggregate purchase price of $<span class="xdx_phnt_RGlzY2xvc3VyZSAtIFN0b2NraG9sZGVyc5IgRXF1aXR5IChEZXRhaWxzIE5hcnJhdGl2ZSAxKQA_" id="xdx_908_ecustom--AggregatePurchasePriceOfWarrant_c20230309__20230309__us-gaap--ClassOfWarrantOrRightAxis__custom--AdditionalWarrantMember_zMgd0XmAzuEi">3,000,000</span></span></span><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">. The Additional Warrant is exercisable upon issuance and has a three-year term. On March 10, 2023, the Company issued and sold the Additional Series F Preferred and the Additional Warrant.</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 33.75pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">As a result of issuing the additional <span class="xdx_phnt_RGlzY2xvc3VyZSAtIFN0b2NraG9sZGVyc5IgRXF1aXR5IChEZXRhaWxzIE5hcnJhdGl2ZSAxKQA_" id="xdx_900_eus-gaap--CommonStockSharesIssued_iI_c20230309__us-gaap--StatementClassOfStockAxis__custom--SeriesFConvertiblePreferredStockMember_zeI9fNpXfnv2">3,000 </span></span></span><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">shares of Series F Convertible Preferred, a down round or anti-dilution trigger event occurred, resulting in the conversion rate on the Series F and the exercise price of the Series F Warrants issued with the Series F adjusting down to $<span class="xdx_phnt_RGlzY2xvc3VyZSAtIFN0b2NraG9sZGVyc5IgRXF1aXR5IChEZXRhaWxzIE5hcnJhdGl2ZSAxKQA_" id="xdx_90D_eus-gaap--PreferredStockConvertibleConversionPrice_iI_pid_c20230309__us-gaap--StatementClassOfStockAxis__custom--PreferredSeriesFConvertibleStockMember_zHsgO8oaNble">0.42 </span></span></span><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">from $<span class="xdx_phnt_RGlzY2xvc3VyZSAtIFN0b2NraG9sZGVyc5IgRXF1aXR5IChEZXRhaWxzIE5hcnJhdGl2ZSAxKQA_" id="xdx_90E_eus-gaap--ClassOfWarrantOrRightExercisePriceOfWarrantsOrRights1_iI_c20230309__us-gaap--ClassOfWarrantOrRightAxis__custom--SeriesFWarrantsMember_z5hYJP5kTq77">0.44 </span></span></span><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">(the “March Down Round Trigger”). The March Down Round Trigger resulted in the Company recognizing a deemed dividend on the common stock warrants and Series F Preferred Stock of $<span class="xdx_phnt_RGlzY2xvc3VyZSAtIFN0b2NraG9sZGVyc5IgRXF1aXR5IChEZXRhaWxzIE5hcnJhdGl2ZSAxKQA_" id="xdx_907_eus-gaap--DividendsPreferredStockStock_c20230309__20230309__us-gaap--StatementClassOfStockAxis__custom--CommonStockWarrantsMember_zTivMhn13nYk">38,226 </span></span></span><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">and $<span class="xdx_phnt_RGlzY2xvc3VyZSAtIFN0b2NraG9sZGVyc5IgRXF1aXR5IChEZXRhaWxzIE5hcnJhdGl2ZSAxKQA_" id="xdx_901_eus-gaap--DividendsPreferredStockStock_c20230309__20230309__us-gaap--StatementClassOfStockAxis__custom--SeriesFConvertiblePreferredStockMember_ziD31EtqEQFb">217,750</span></span></span><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">, respectively, or aggregate deemed dividend of $<span class="xdx_phnt_RGlzY2xvc3VyZSAtIFN0b2NraG9sZGVyc5IgRXF1aXR5IChEZXRhaWxzIE5hcnJhdGl2ZSAxKQA_" id="xdx_907_ecustom--AggregateDeemedDividend_c20230309__20230309_z9VeZnnzIoB7">255,976</span></span></span><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">, for the incremental value to the warrant and Series F holder resulting from the reduction in exercise price and conversion price.</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The deemed dividend on the Series F Warrants represents the difference between fair value of the Series F Warrants under the original terms before the March Down Round Trigger and the fair value of the Series F Warrants after March Down Round Trigger at the reduced exercise price. The fair value of the Series F Warrants was determined using a Black-Scholes pricing model and the following assumptions: expected life of <span class="xdx_phnt_RGlzY2xvc3VyZSAtIFN0b2NraG9sZGVyc5IgRXF1aXR5IChEZXRhaWxzIE5hcnJhdGl2ZSAxKQA_" id="xdx_90F_eus-gaap--SharebasedCompensationArrangementBySharebasedPaymentAwardFairValueAssumptionsExpectedTerm1_dtY_c20230309__20230309__us-gaap--StatementClassOfStockAxis__custom--SeriesFWarrantsMember_zFCcWwLaFHej">3 </span></span></span><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">years, volatility of <span class="xdx_phnt_RGlzY2xvc3VyZSAtIFN0b2NraG9sZGVyc5IgRXF1aXR5IChEZXRhaWxzIE5hcnJhdGl2ZSAxKQA_" id="xdx_90E_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExpectedVolatilityRate_pid_dp_uPure_c20230309__20230309__us-gaap--StatementClassOfStockAxis__custom--SeriesFWarrantsMember_zUvcCxVZX9V8">131</span></span></span><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">%, risk free rate of <span class="xdx_phnt_RGlzY2xvc3VyZSAtIFN0b2NraG9sZGVyc5IgRXF1aXR5IChEZXRhaWxzIE5hcnJhdGl2ZSAxKQA_" id="xdx_906_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsRiskFreeInterestRate_pid_dp_uPure_c20230309__20230309__us-gaap--StatementClassOfStockAxis__custom--SeriesFWarrantsMember_zdqUwvxBIdy3">4.46</span></span></span><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">%, and dividend rate of <span class="xdx_phnt_RGlzY2xvc3VyZSAtIFN0b2NraG9sZGVyc5IgRXF1aXR5IChEZXRhaWxzIE5hcnJhdGl2ZSAxKQA_" id="xdx_902_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExpectedDividendRate_pid_dp_uPure_c20230309__20230309__us-gaap--StatementClassOfStockAxis__custom--SeriesFWarrantsMember_zNseEFF4bvgk">0</span></span></span><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">%.</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b> </b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>AGEAGLE AERIAL SYSTEMS INC. AND SUBSIDIARIES</b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS</b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2023 AND 2022</b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>(UNAUDITED)</b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Note 7 – Stockholders’ Equity – Continued</b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 33.75pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 33.75pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Upon the issuance of the Offering Shares and Warrants on June 8, 2023, a down round or anti-dilution trigger event occurred resulting in the conversion price of the remaining Series F Preferred Stock and the exercise price of the Series F Warrants adjusting down from $<span class="xdx_phnt_RGlzY2xvc3VyZSAtIFN0b2NraG9sZGVyc5IgRXF1aXR5IChEZXRhaWxzIE5hcnJhdGl2ZSAxKQA_" id="xdx_90C_eus-gaap--PreferredStockConvertibleConversionPrice_iI_pid_c20230608__us-gaap--StatementClassOfStockAxis__custom--PreferredSeriesFConvertibleStockMember_z3uG9MRi5AB5">0.42 </span></span></span><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">per share to $<span class="xdx_phnt_RGlzY2xvc3VyZSAtIFN0b2NraG9sZGVyc5IgRXF1aXR5IChEZXRhaWxzIE5hcnJhdGl2ZSAxKQA_" id="xdx_903_eus-gaap--ClassOfWarrantOrRightExercisePriceOfWarrantsOrRights1_iI_c20230608__us-gaap--ClassOfWarrantOrRightAxis__custom--SeriesFWarrantsMember_zTaGuiAF12ud">0.25 </span></span></span><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">per share (the “June Down Round Trigger”). The June Down Round Trigger resulted in the Company recognizing a deemed dividend on the common stock warrants and Series F Preferred Stock of $<span class="xdx_phnt_RGlzY2xvc3VyZSAtIFN0b2NraG9sZGVyc5IgRXF1aXR5IChEZXRhaWxzIE5hcnJhdGl2ZSAxKQA_" id="xdx_907_eus-gaap--DividendsPreferredStockStock_c20230608__20230608__us-gaap--StatementClassOfStockAxis__custom--CommonStockWarrantsMember_zbcOmWzCik7f">787,823 </span></span></span><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">and $<span class="xdx_phnt_RGlzY2xvc3VyZSAtIFN0b2NraG9sZGVyc5IgRXF1aXR5IChEZXRhaWxzIE5hcnJhdGl2ZSAxKQA_" id="xdx_904_eus-gaap--DividendsPreferredStockStock_c20230608__20230608__us-gaap--StatementClassOfStockAxis__custom--SeriesFConvertiblePreferredStockMember_zxCMHdJ3s6xd">3,867,095</span></span></span><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">, respectively, or an aggregate deemed dividend of $<span class="xdx_phnt_RGlzY2xvc3VyZSAtIFN0b2NraG9sZGVyc5IgRXF1aXR5IChEZXRhaWxzIE5hcnJhdGl2ZSAxKQA_" id="xdx_907_ecustom--AggregateDeemedDividend_c20230608__20230608_zPlUIzLvypI2">4,654,918</span></span></span><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">, for the incremental value to the warrant and Series F holder resulting from the reduction in exercise price and conversion price.</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 33.75pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The deemed dividend on the Series F Warrants represents the difference between fair value of the Series F Warrants under the original terms before the down round trigger and the fair value of the Series F Warrants after down round trigger at the reduced exercise price. The fair value of the Series F Warrants was determined using a Black-Scholes pricing model and the following assumptions: expected life of <span class="xdx_phnt_RGlzY2xvc3VyZSAtIFN0b2NraG9sZGVyc5IgRXF1aXR5IChEZXRhaWxzIE5hcnJhdGl2ZSAxKQA_" id="xdx_903_eus-gaap--SharebasedCompensationArrangementBySharebasedPaymentAwardFairValueAssumptionsExpectedTerm1_dtY_c20230101__20230930__us-gaap--StatementClassOfStockAxis__custom--SeriesFWarrantsMember_zumjtiKoRtD7">2.5 </span></span></span><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">years, volatility of <span class="xdx_phnt_RGlzY2xvc3VyZSAtIFN0b2NraG9sZGVyc5IgRXF1aXR5IChEZXRhaWxzIE5hcnJhdGl2ZSAxKQA_" id="xdx_903_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExpectedVolatilityRate_pid_dp_uPure_c20230101__20230930__us-gaap--StatementClassOfStockAxis__custom--SeriesFWarrantsMember_zZcuYZNZ71E7">106</span></span></span><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">%, risk free rate of <span class="xdx_phnt_RGlzY2xvc3VyZSAtIFN0b2NraG9sZGVyc5IgRXF1aXR5IChEZXRhaWxzIE5hcnJhdGl2ZSAxKQA_" id="xdx_906_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsRiskFreeInterestRate_pid_dp_uPure_c20230101__20230930__us-gaap--StatementClassOfStockAxis__custom--SeriesFWarrantsMember_zzO82NUdKP8h">4.28</span></span></span><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">%, and dividend rate of <span class="xdx_phnt_RGlzY2xvc3VyZSAtIFN0b2NraG9sZGVyc5IgRXF1aXR5IChEZXRhaWxzIE5hcnJhdGl2ZSAxKQA_" id="xdx_908_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExpectedDividendRate_pid_dp_uPure_c20230101__20230930__us-gaap--StatementClassOfStockAxis__custom--SeriesFWarrantsMember_zoCivR8Vx2nd">0</span></span></span><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">%.</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 33.75pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 33.75pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">All deemed dividends to the Series F stockholder were recorded as additional paid in capital and an increase to accumulated deficit and as an increase to total comprehensive loss attributable to Common Stockholders in computing earnings per share on the condensed consolidated statements of operations and comprehensive income (loss).</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 33.75pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 33.75pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">During the three and nine months ended September 30, 2023, Alpha converted <span class="xdx_phnt_RGlzY2xvc3VyZSAtIFN0b2NraG9sZGVyc5IgRXF1aXR5IChEZXRhaWxzIE5hcnJhdGl2ZSAxKQA_" id="xdx_908_eus-gaap--ConversionOfStockSharesConverted1_c20230701__20230930__us-gaap--StatementClassOfStockAxis__custom--SeriesFConvertiblePreferredStockMember_zn38JHgACkCf">750 </span></span></span><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">and <span class="xdx_phnt_RGlzY2xvc3VyZSAtIFN0b2NraG9sZGVyc5IgRXF1aXR5IChEZXRhaWxzIE5hcnJhdGl2ZSAxKQA_" id="xdx_90B_eus-gaap--ConversionOfStockSharesConverted1_c20230101__20230930__us-gaap--StatementClassOfStockAxis__custom--SeriesFConvertiblePreferredStockMember_zWznKtJC8H3b">2,588 </span></span></span><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">shares of Series F into <span class="xdx_phnt_RGlzY2xvc3VyZSAtIFN0b2NraG9sZGVyc5IgRXF1aXR5IChEZXRhaWxzIE5hcnJhdGl2ZSAxKQA_" id="xdx_905_eus-gaap--ConversionOfStockSharesIssued1_c20230701__20230930__us-gaap--StatementClassOfStockAxis__custom--SeriesFConvertiblePreferredStockMember_zpU0rryO3uCc">3,000,000 </span></span></span><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">and <span class="xdx_phnt_RGlzY2xvc3VyZSAtIFN0b2NraG9sZGVyc5IgRXF1aXR5IChEZXRhaWxzIE5hcnJhdGl2ZSAxKQA_" id="xdx_90F_eus-gaap--ConversionOfStockSharesIssued1_c20230101__20230930__us-gaap--StatementClassOfStockAxis__custom--SeriesFConvertiblePreferredStockMember_z9Y3w5jkdEGi">7,304,762 </span></span></span><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">shares of Common Stock, respectively. As a result, for the same periods, the Company recorded $<span class="xdx_phnt_RGlzY2xvc3VyZSAtIFN0b2NraG9sZGVyc5IgRXF1aXR5IChEZXRhaWxzIE5hcnJhdGl2ZSAxKQA_" id="xdx_907_eus-gaap--Dividends_c20230701__20230930_zOUTrFzEqiW5">49,122 </span></span></span><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">and $<span class="xdx_phnt_RGlzY2xvc3VyZSAtIFN0b2NraG9sZGVyc5IgRXF1aXR5IChEZXRhaWxzIE5hcnJhdGl2ZSAxKQA_" id="xdx_90C_eus-gaap--Dividends_c20230101__20230930_z5fWKEYbJYQh">170,277 </span></span></span><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">cumulative dividends, respectively, which are included in accrued expenses on the unaudited condensed consolidated balance sheets, at the rate per share (as a percentage of the $<span class="xdx_phnt_RGlzY2xvc3VyZSAtIFN0b2NraG9sZGVyc5IgRXF1aXR5IChEZXRhaWxzIE5hcnJhdGl2ZSAxKQA_" id="xdx_905_eus-gaap--PreferredStockValue_iI_c20220630_zbYNuJhOz5dj">1,000</span></span></span> <span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">stated par value per share of Series F) of 5% per annum, beginning on the first conversation date of June 30, 2022.</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 33.75pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 33.75pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">As of September 30, 2023, the Company has outstanding common stock warrants of <span class="xdx_phnt_RGlzY2xvc3VyZSAtIFN0b2NraG9sZGVyc5IgRXF1aXR5IChEZXRhaWxzIE5hcnJhdGl2ZSAxKQA_" id="xdx_905_eus-gaap--ClassOfWarrantOrRightOutstanding_iI_c20230930__us-gaap--StatementClassOfStockAxis__custom--CommonStockWarrantsMember_zDNIOOCi6DW6">48,351,747 </span></span></span><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">with an exercise prices ranging from $<span class="xdx_phnt_RGlzY2xvc3VyZSAtIFN0b2NraG9sZGVyc5IgRXF1aXR5IChEZXRhaWxzIE5hcnJhdGl2ZSAxKQA_" id="xdx_901_eus-gaap--WarrantExercisePriceDecrease_c20230101__20230930__us-gaap--StatementClassOfStockAxis__custom--CommonStockWarrantsMember_zJjy0F41g105">.25 </span></span></span><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">- $<span class="xdx_phnt_RGlzY2xvc3VyZSAtIFN0b2NraG9sZGVyc5IgRXF1aXR5IChEZXRhaWxzIE5hcnJhdGl2ZSAxKQA_" id="xdx_90C_eus-gaap--WarrantExercisePriceIncrease_c20230101__20230930__us-gaap--StatementClassOfStockAxis__custom--CommonStockWarrantsMember_zYMQxSYXijl7">.38 </span></span></span><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">and a weighted-average contractual term remaining of <span class="xdx_phnt_RGlzY2xvc3VyZSAtIFN0b2NraG9sZGVyc5IgRXF1aXR5IChEZXRhaWxzIE5hcnJhdGl2ZSAxKQA_" id="xdx_90E_eus-gaap--WarrantsAndRightsOutstandingTerm_iI_dtY_c20230930__us-gaap--StatementClassOfStockAxis__custom--CommonStockWarrantsMember_zAEsJko6eREg">3.79</span> years that were issued in connection with the transaction discussed above (see also Note 9).</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i> </i></b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 33.75pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i>At-the-Market Sales Agreement</i></b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 33.75pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 33.75pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">In accordance with a May 25, 2021, at-the-market Sales Agreement with Stifel, Nicolaus &amp; Company, Incorporated and Raymond James &amp; Associates, Inc. as sales agents, the Company sold <span class="xdx_phnt_RGlzY2xvc3VyZSAtIFN0b2NraG9sZGVyc5IgRXF1aXR5IChEZXRhaWxzIE5hcnJhdGl2ZSAyKQA_" id="xdx_905_eus-gaap--SaleOfStockNumberOfSharesIssuedInTransaction_c20220101__20221231__us-gaap--TypeOfArrangementAxis__custom--AtTheMarketSalesAgreementMember_z8Nn0K0G0vqh">4,251,151 </span></span></span><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">shares of Common Stock at a share price between $<span class="xdx_phnt_RGlzY2xvc3VyZSAtIFN0b2NraG9sZGVyc5IgRXF1aXR5IChEZXRhaWxzIE5hcnJhdGl2ZSAyKQA_" id="xdx_909_eus-gaap--SharePrice_iI_pid_c20221231__srt--RangeAxis__srt--MinimumMember__us-gaap--TypeOfArrangementAxis__custom--AtTheMarketSalesAgreementMember_zGWdKey0igBd">1.04 </span></span></span><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">and $<span class="xdx_phnt_RGlzY2xvc3VyZSAtIFN0b2NraG9sZGVyc5IgRXF1aXR5IChEZXRhaWxzIE5hcnJhdGl2ZSAyKQA_" id="xdx_902_eus-gaap--SharePrice_iI_pid_c20221231__srt--RangeAxis__srt--MaximumMember__us-gaap--TypeOfArrangementAxis__custom--AtTheMarketSalesAgreementMember_zi6xwQGtJU33">1.18</span></span></span><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">, for proceeds of $<span class="xdx_phnt_RGlzY2xvc3VyZSAtIFN0b2NraG9sZGVyc5IgRXF1aXR5IChEZXRhaWxzIE5hcnJhdGl2ZSAyKQA_" id="xdx_900_eus-gaap--SaleOfStockConsiderationReceivedPerTransaction_c20220101__20221231__us-gaap--TypeOfArrangementAxis__custom--AtTheMarketSalesAgreementMember_zRhNym1v8356">4,583,341</span></span></span><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">, net of issuance costs of $<span class="xdx_phnt_RGlzY2xvc3VyZSAtIFN0b2NraG9sZGVyc5IgRXF1aXR5IChEZXRhaWxzIE5hcnJhdGl2ZSAyKQA_" id="xdx_901_eus-gaap--DeferredFinanceCostsNet_iI_c20221231__us-gaap--TypeOfArrangementAxis__custom--AtTheMarketSalesAgreementMember_zWnmjMfAvfgc">141,754</span></span></span><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">, in 2022. For the three and nine months ended September 30, 2023, there were no at-the-market sales.</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 33.75pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i> </i></b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 33.75pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i>Acquisition of senseFly</i></b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 33.75pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 33.75pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">In accordance with the terms of the senseFly S.A. Purchase Agreement, the Company issued <span class="xdx_phnt_RGlzY2xvc3VyZSAtIFN0b2NraG9sZGVyc5IgRXF1aXR5IChEZXRhaWxzIE5hcnJhdGl2ZSAzKQA_" id="xdx_900_eus-gaap--StockIssuedDuringPeriodSharesAcquisitions_c20220101__20220131__us-gaap--BusinessAcquisitionAxis__custom--SenseflyMember__us-gaap--TypeOfArrangementAxis__custom--SenseFlySAPurchaseAgreementMember_zyAHQV6hEVji">1,927,407 </span></span></span><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">shares of Common Stock to Parrot Drones S.A.S.(“Parrot”) in January 2022 having an aggregate value of $<span class="xdx_phnt_RGlzY2xvc3VyZSAtIFN0b2NraG9sZGVyc5IgRXF1aXR5IChEZXRhaWxzIE5hcnJhdGl2ZSAzKQA_" id="xdx_90E_eus-gaap--StockIssuedDuringPeriodValueAcquisitions_c20220101__20220131__us-gaap--BusinessAcquisitionAxis__custom--SenseflyMember__us-gaap--TypeOfArrangementAxis__custom--SenseFlySAPurchaseAgreementMember_zbFpNCa9KlJc">3,000,000</span></span></span><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">, based on a volume weighted average trading price of the Common Stock over a ten consecutive trading day period prior to the date of issuance of the shares of Common Stock to Parrot.</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 33.75pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 33.75pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i>Acquisition of Measure</i></b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 33.75pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i> </i></b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; background-color: white">Pursuant to the terms of the Measure Acquisition Purchase Agreement (the “Purchase Agreement”) the Company issued an aggregate of <span class="xdx_phnt_RGlzY2xvc3VyZSAtIFN0b2NraG9sZGVyc5IgRXF1aXR5IChEZXRhaWxzIE5hcnJhdGl2ZSAzKQA_" id="xdx_904_eus-gaap--StockIssuedDuringPeriodSharesAcquisitions_c20220101__20220131__us-gaap--TypeOfArrangementAxis__custom--MeasureAcquisitionPurchaseAgreementMember__us-gaap--StatementClassOfStockAxis__us-gaap--CommonStockMember_zMV1eOnSwAB3">5,319,145 </span></span></span><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; background-color: white">shares of the Company’s common stock to the Sellers of Measure as part of the consideration for the acquisition, of which <span class="xdx_phnt_RGlzY2xvc3VyZSAtIFN0b2NraG9sZGVyc5IgRXF1aXR5IChEZXRhaWxzIE5hcnJhdGl2ZSAzKQA_" id="xdx_900_ecustom--StockIssuedDuringPeriodSharesAcquisitionsHeld_c20220101__20220131__us-gaap--TypeOfArrangementAxis__custom--MeasureAcquisitionPurchaseAgreementMember__us-gaap--StatementClassOfStockAxis__us-gaap--CommonStockMember_zmX20Cy6tlKe">997,338 </span></span></span><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; background-color: white">shares were held back (the “Heldback Shares”) to cover post-closing indemnification claims and to satisfy any purchase price adjustments (see also disclosure above). Pursuant to the terms of the Purchase Agreement, the Heldback Shares were scheduled to be released in three tranches, on the 12-month, 18-month and 24-month anniversary of the closing date of the acquisition. The Company made a claim for indemnification against the Heldback Shares. Pursuant to the Settlement Agreement entered on August 22, 2022 the Company released all the Measure shares held in escrow along with any disputes regarding the <span class="xdx_phnt_RGlzY2xvc3VyZSAtIFN0b2NraG9sZGVyc5IgRXF1aXR5IChEZXRhaWxzIE5hcnJhdGl2ZSAzKQA_" id="xdx_907_eus-gaap--StockIssuedDuringPeriodSharesAcquisitions_c20220822__20220822__us-gaap--TypeOfArrangementAxis__custom--SettlementAgreementMember__us-gaap--StatementClassOfStockAxis__us-gaap--CommonStockMember_zV3QdCBlYCmc">997,338 </span></span></span><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; background-color: white">Heldback Shares. As a result, <span class="xdx_phnt_RGlzY2xvc3VyZSAtIFN0b2NraG9sZGVyc5IgRXF1aXR5IChEZXRhaWxzIE5hcnJhdGl2ZSAzKQA_" id="xdx_90B_ecustom--StockIssuedDuringPeriodSharesAcquisitionsHeldBack_c20220822__20220822__us-gaap--TypeOfArrangementAxis__custom--SettlementAgreementMember__us-gaap--StatementClassOfStockAxis__us-gaap--CommonStockMember_znyStcvnBiH3">498,669 </span></span></span><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; background-color: white">of the Heldback Shares were released to the Measure Sellers with the remaining <span class="xdx_phnt_RGlzY2xvc3VyZSAtIFN0b2NraG9sZGVyc5IgRXF1aXR5IChEZXRhaWxzIE5hcnJhdGl2ZSAzKQA_" id="xdx_906_ecustom--StockIssuedDuringPeriodSharesAcquisitionsHeldBack_c20220822__20220822__us-gaap--TypeOfArrangementAxis__custom--SettlementAgreementMember__us-gaap--StatementClassOfStockAxis__us-gaap--CommonStockMember_zrnB3x19H76h">498,669 </span></span></span><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; background-color: white">Heldback Shares being cancelled by the Company which reduced the issued and outstanding common stock and causing an increase to stockholders’ equity of $<span class="xdx_phnt_RGlzY2xvc3VyZSAtIFN0b2NraG9sZGVyc5IgRXF1aXR5IChEZXRhaWxzIE5hcnJhdGl2ZSAzKQA_" id="xdx_902_ecustom--StockIssuedDuringPeriodValueSettlementOfHeldbackSharesFromContingentLiabilityRelatedToMeasureAcquisition_c20220822__20220822__us-gaap--TypeOfArrangementAxis__custom--SettlementAgreementMember__us-gaap--StatementClassOfStockAxis__us-gaap--CommonStockMember_z1cORyRmcje8">2,812,500</span></span></span><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; background-color: white">.</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b> </b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>AGEAGLE AERIAL SYSTEMS INC. AND SUBSIDIARIES</b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS</b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2023 AND 2022</b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>(UNAUDITED)</b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b> </b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Note 7 – Stockholders’ Equity – Continued</b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 33.75pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i> </i></b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 33.75pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i>Exercise of Common Stock Options</i></b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 33.75pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 33.75pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">For the three and nine months ended September 30, 2023, there was no exercise of stock options. For the three and nine months ended September 30, 2022, <span class="xdx_phnt_RGlzY2xvc3VyZSAtIFN0b2NraG9sZGVyc5IgRXF1aXR5IChEZXRhaWxzIE5hcnJhdGl2ZSA0KQA_" id="xdx_908_eus-gaap--StockIssuedDuringPeriodSharesNewIssues_c20220701__20220930__us-gaap--StatementClassOfStockAxis__custom--ExerciseofCommonStockOptionsMember_z5l6841P1gD">35,000 </span></span></span><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">and <span class="xdx_phnt_RGlzY2xvc3VyZSAtIFN0b2NraG9sZGVyc5IgRXF1aXR5IChEZXRhaWxzIE5hcnJhdGl2ZSA0KQA_" id="xdx_90D_eus-gaap--StockIssuedDuringPeriodSharesNewIssues_c20220101__20220930__us-gaap--StatementClassOfStockAxis__custom--ExerciseofCommonStockOptionsMember_zUVKi9FC51gi">185,000 </span></span></span><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">shares of Common Stock were issued respectively in connection with the exercise of stock options previously granted at exercise price between $<span class="xdx_phnt_RGlzY2xvc3VyZSAtIFN0b2NraG9sZGVyc5IgRXF1aXR5IChEZXRhaWxzIE5hcnJhdGl2ZSA0KQA_" id="xdx_900_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingWeightedAverageExercisePrice_iI_c20220930__us-gaap--StatementClassOfStockAxis__custom--ExerciseofCommonStockOptionsMember_zK5TWVLE9UE6">0.31 </span></span></span><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">and $<span class="xdx_phnt_RGlzY2xvc3VyZSAtIFN0b2NraG9sZGVyc5IgRXF1aXR5IChEZXRhaWxzIE5hcnJhdGl2ZSA0KQA_" id="xdx_907_eus-gaap--SharebasedCompensationSharesAuthorizedUnderStockOptionPlansExercisePriceRangeExercisableOptionsWeightedAverageExercisePrice1_iI_c20220930__us-gaap--StatementClassOfStockAxis__custom--ExerciseofCommonStockOptionsMember_zxpPb4rppCbh">0.41 </span></span></span><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">resulting in gross proceeds of $<span class="xdx_phnt_RGlzY2xvc3VyZSAtIFN0b2NraG9sZGVyc5IgRXF1aXR5IChEZXRhaWxzIE5hcnJhdGl2ZSA0KQA_" id="xdx_90E_eus-gaap--ProceedsFromIssuanceOfCommonStock_c20220101__20220930__us-gaap--StatementClassOfStockAxis__custom--ExerciseofCommonStockOptionsMember_zR10FOCMiR9e">74,350</span></span></span><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">.</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 33.75pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i> </i></b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 33.75pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i>Stock-based Compensation</i></b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 33.75pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i> </i></b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 33.75pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The Company determines the fair value of awards granted under the Equity Plan based on the fair value of its Common Stock on the date of grant. Stock-based compensation expenses related to grants under the Equity Plan are included in general and administrative expenses on the condensed consolidated statements of operations and comprehensive income (loss). For the three and nine months ended September 30, 2023, the Company recorded $<span class="xdx_phnt_RGlzY2xvc3VyZSAtIFN0b2NraG9sZGVyc5IgRXF1aXR5IChEZXRhaWxzIE5hcnJhdGl2ZSA0KQA_" id="xdx_901_eus-gaap--AllocatedShareBasedCompensationExpense_c20230701__20230930_zIn3Ub4Kn6hg">142,845 </span></span></span><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">and $<span class="xdx_phnt_RGlzY2xvc3VyZSAtIFN0b2NraG9sZGVyc5IgRXF1aXR5IChEZXRhaWxzIE5hcnJhdGl2ZSA0KQA_" id="xdx_908_eus-gaap--AllocatedShareBasedCompensationExpense_c20230101__20230930_zRpOf0I5q0Ak">1,125,209 </span></span></span><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">respectively, of stock-based compensation. For the same periods during 2022, $<span class="xdx_phnt_RGlzY2xvc3VyZSAtIFN0b2NraG9sZGVyc5IgRXF1aXR5IChEZXRhaWxzIE5hcnJhdGl2ZSA0KQA_" id="xdx_905_eus-gaap--AllocatedShareBasedCompensationExpense_c20220701__20220930_zTSSsAhJPvTh">556,837 </span></span></span><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">and $<span class="xdx_phnt_RGlzY2xvc3VyZSAtIFN0b2NraG9sZGVyc5IgRXF1aXR5IChEZXRhaWxzIE5hcnJhdGl2ZSA0KQA_" id="xdx_900_eus-gaap--AllocatedShareBasedCompensationExpense_c20220101__20220930_zhlHq2AzLTg7">3,058,741 </span></span></span><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">were recorded, respectively.</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 33.75pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 33.75pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i>Pension Costs</i></b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 33.75pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i> </i></b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 33.75pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">senseFly S.A. sponsors a defined benefit pension plan (the “Defined Benefit Plan”) covering all its employees. The Defined Benefit Plan provides benefits in the event of retirement, death or disability, with benefits based on age and salary. The Defined Benefit Plan is funded through contributions paid by senseFly S.A. and its employees, respectively. The Defined Benefit Plan assets are Groupe Mutuel Prévoyance (“GMP”), which invests these plan assets in cash and cash equivalents, equities, bonds, real estate and alternative investments.</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 33.75pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 33.75pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The Projected Benefit Obligation (“PBO”) includes in full the accrued liability for the plan death and disability benefits, irrespective of the extent to which these benefits may be reinsured with an insurer. The actuarial valuations are based on the census data as of December 31, 2022, provided by GMP.</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 33.75pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 33.75pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The Defined Benefit Plan has a PBO in excess of Defined Benefit Plan liabilities. For the three and nine months ended September 30, 2023, the amounts recognized in accumulated other comprehensive loss related to the Defined Benefit Plan were $<span class="xdx_phnt_RGlzY2xvc3VyZSAtIFN0b2NraG9sZGVyc5IgRXF1aXR5IChEZXRhaWxzIE5hcnJhdGl2ZSA0KQA_" id="xdx_90A_ecustom--AmortizationOfUnrecognizedPeriodicPensionCosts_c20230701__20230930__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--SponsorMember_zL2YNpu4afAj">(742</span></span></span><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">) and $<span class="xdx_phnt_RGlzY2xvc3VyZSAtIFN0b2NraG9sZGVyc5IgRXF1aXR5IChEZXRhaWxzIE5hcnJhdGl2ZSA0KQA_" id="xdx_904_ecustom--AmortizationOfUnrecognizedPeriodicPensionCosts_c20230101__20230930__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--SponsorMember_zM9w1GxnJAf5">43,302</span></span></span><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">, respectively. For the three and nine months ended September 30, 2022, the amounts recognized in accumulated other comprehensive income (loss) related to the Defined Benefit Plan were $<span class="xdx_phnt_RGlzY2xvc3VyZSAtIFN0b2NraG9sZGVyc5IgRXF1aXR5IChEZXRhaWxzIE5hcnJhdGl2ZSA0KQA_" id="xdx_909_ecustom--AmortizationOfUnrecognizedPeriodicPensionCosts_c20220701__20220930__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--SponsorMember_zSIGg6zShS9a">97,846 </span></span></span><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">and $<span class="xdx_phnt_RGlzY2xvc3VyZSAtIFN0b2NraG9sZGVyc5IgRXF1aXR5IChEZXRhaWxzIE5hcnJhdGl2ZSA0KQA_" id="xdx_908_ecustom--AmortizationOfUnrecognizedPeriodicPensionCosts_c20220101__20220930__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--SponsorMember_zMClFCfn1QY9">100,487</span></span></span><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">, respectively.</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i> </i></b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 33.75pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i>Restricted Stock Units</i></b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 33.75pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p id="xdx_898_eus-gaap--ScheduleOfShareBasedCompensationRestrictedStockUnitsAwardActivityTableTextBlock_gL3SOSBCRSUAA-PXI_za4fJWgXEbHf" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 33.75pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">For the nine months ended September 30, 2023, a summary of RSU activity is as follows:</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 33.75pt"> </p> <p style="font: 10pt Times New Roman, Times, Serif; display: none; margin: 0pt 0; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> <span id="xdx_8B2_zyw0kyFVJB31" style="display: none">Schedule of Restricted Stock Unit Activity</span></span></span></p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="font-family: Times New Roman, Times, Serif; vertical-align: bottom"> <td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; font-weight: bold; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; font-weight: bold; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">Shares</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; font-weight: bold"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; font-weight: bold; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; font-weight: bold; text-align: center"><p style="margin-top: 0; margin-bottom: 0"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">Weighted Average</span></span></p> <p style="margin-top: 0; margin-bottom: 0"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">Grant Date</span></span></p> <p style="margin-top: 0; margin-bottom: 0"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">Fair Value</span></span></p></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; font-weight: bold"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td></tr> <tr style="font-family: Times New Roman, Times, Serif; vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-family: Times New Roman, Times, Serif; width: 64%"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">Outstanding as of December 31, 2022</span></span></td><td style="font-family: Times New Roman, Times, Serif; width: 2%"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; width: 1%; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td id="xdx_98D_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsNonvestedNumber_iS_c20230101__20230930__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockUnitsRSUMember_zWwtzwn61aH5" style="font-family: Times New Roman, Times, Serif; width: 14%; text-align: right" title="Number of shares,Beginning"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">1,028,960</span></span></td><td style="font-family: Times New Roman, Times, Serif; width: 1%; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; width: 2%"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; width: 1%; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">$</span></span></td><td id="xdx_98F_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsNonvestedWeightedAverageGrantDateFairValue_iS_pid_c20230101__20230930__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockUnitsRSUMember_zfDpwYkliDV" style="font-family: Times New Roman, Times, Serif; width: 14%; text-align: right" title="Weighted average grant date fair value,Beginning"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">2.31</span></span></td><td style="font-family: Times New Roman, Times, Serif; width: 1%; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td></tr> <tr style="font-family: Times New Roman, Times, Serif; vertical-align: bottom; background-color: White"> <td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">Granted</span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td id="xdx_980_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsGrantsInPeriod_c20230101__20230930__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockUnitsRSUMember_zufXXVJxMyw4" style="font-family: Times New Roman, Times, Serif; text-align: right" title="Granted"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">2,000,645</span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td id="xdx_98D_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsGrantsInPeriodWeightedAverageGrantDateFairValue_pid_c20230101__20230930__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockUnitsRSUMember_zYb7YMBlLLSa" style="font-family: Times New Roman, Times, Serif; text-align: right" title="Weighted average grant date fair value,Granted"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">0.36</span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td></tr> <tr style="font-family: Times New Roman, Times, Serif; vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">Canceled</span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td id="xdx_98A_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsForfeitedInPeriod_iN_di_c20230101__20230930__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockUnitsRSUMember_zOmFirq7vLNc" style="font-family: Times New Roman, Times, Serif; text-align: right" title="Canceled"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">(152,253</span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">)</span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td id="xdx_98B_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsForfeituresWeightedAverageGrantDateFairValue_pid_c20230101__20230930__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockUnitsRSUMember_zDGiWPEdjQu1" style="font-family: Times New Roman, Times, Serif; text-align: right" title="Weighted average grant date fair value,Canceled"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">1.58</span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td></tr> <tr style="font-family: Times New Roman, Times, Serif; vertical-align: bottom; background-color: White"> <td style="font-family: Times New Roman, Times, Serif; text-align: left; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">Vested and released</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td id="xdx_987_ecustom--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsVestedAndReleasedInPeriod_iN_di_c20230101__20230930__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockUnitsRSUMember_zRprw76EiJu" style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: right" title="Vested and released"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">(387,456</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">)</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td id="xdx_986_ecustom--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsVestedAndReleasedWeightedAverageGrantDateFairValue_pid_c20230101__20230930__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockUnitsRSUMember_zPsc10zEEGkd" style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: right" title="Weighted average grant date fair value,Vested and released"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">0.38</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td></tr> <tr style="font-family: Times New Roman, Times, Serif; vertical-align: bottom; background-color: White"> <td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">Outstanding as of September 30, 2023</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="border-bottom: Black 2.5pt double; font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td id="xdx_98C_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsNonvestedNumber_iE_c20230101__20230930__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockUnitsRSUMember_zIG26Khb2eag" style="border-bottom: Black 2.5pt double; font-family: Times New Roman, Times, Serif; text-align: right" title="Number of shares,Ending"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">2,489,896</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="border-bottom: Black 2.5pt double; font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true">$</span></td><td id="xdx_98F_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsNonvestedWeightedAverageGrantDateFairValue_iE_pid_c20230101__20230930__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockUnitsRSUMember_zvTlvBeqhDO" style="border-bottom: Black 2.5pt double; font-family: Times New Roman, Times, Serif; text-align: right" title="Weighted average grant date fair value,Ending"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">1.08</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td></tr> <tr style="font-family: Times New Roman, Times, Serif; vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">Vested as of September 30, 2023</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="border-bottom: Black 2.5pt double; font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td id="xdx_980_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsVestedInPeriod_c20230101__20230930__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockUnitsRSUMember_zYYm6BbmSc12" style="border-bottom: Black 2.5pt double; font-family: Times New Roman, Times, Serif; text-align: right" title="Vested"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">2,070,174</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="border-bottom: Black 2.5pt double; font-family: Times New Roman, Times, Serif; text-align: left"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><span style="-sec-ix-redline: true">$</span></p></td><td id="xdx_98F_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsVestedInPeriodWeightedAverageGrantDateFairValue_pid_c20230101__20230930__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockUnitsRSUMember_zYvdk8ySS8Vd" style="border-bottom: Black 2.5pt double; font-family: Times New Roman, Times, Serif; text-align: right" title="Weighted average grant date fair value,Vested"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">1.01</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td></tr> <tr style="font-family: Times New Roman, Times, Serif; vertical-align: bottom; background-color: White"> <td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">Unvested as of September 30, 2023</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="border-bottom: Black 2.5pt double; font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td id="xdx_98D_ecustom--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsNonvestedInPeriod_c20230101__20230930__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockUnitsRSUMember_zCgLN0aDsPHe" style="border-bottom: Black 2.5pt double; font-family: Times New Roman, Times, Serif; text-align: right" title="Nonvested"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">419,722</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="border-bottom: Black 2.5pt double; font-family: Times New Roman, Times, Serif; text-align: left"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><span style="-sec-ix-redline: true">$</span></p> <span style="font-family: Times New Roman, Times, Serif"></span></td><td id="xdx_98A_ecustom--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsUnvestedInPeriodWeightedAverageGrantDateFairValue_pid_c20230101__20230930__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockUnitsRSUMember_zz7VEQKsRx3g" style="border-bottom: Black 2.5pt double; font-family: Times New Roman, Times, Serif; text-align: right" title="Weighted average grant date fair value,Unvested"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">1.43</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td></tr> </table> <p id="xdx_8AD_zs1vCzzms18e" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b> </b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>AGEAGLE AERIAL SYSTEMS INC. AND SUBSIDIARIES</b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS</b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2023 AND 2022</b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>(UNAUDITED)</b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b> </b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Note 7 – Stockholders’ Equity - Continued</b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 33.75pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 33.75pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">For the nine months ended September 30, 2023, the aggregate fair value of RSU awards at the time of vesting was $<span class="xdx_phnt_RGlzY2xvc3VyZSAtIFN0b2NraG9sZGVyc5IgRXF1aXR5IChEZXRhaWxzIE5hcnJhdGl2ZSA1KQA_" id="xdx_907_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsVestedInPeriodTotalFairValue_c20230101__20230930_zuYQARbZsFya">710,769</span></span></span><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">.</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 33.75pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 33.75pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">For the three and nine months ended September 30, 2023, the Company recognized $<span class="xdx_phnt_RGlzY2xvc3VyZSAtIFN0b2NraG9sZGVyc5IgRXF1aXR5IChEZXRhaWxzIE5hcnJhdGl2ZSA1KQA_" id="xdx_908_eus-gaap--AllocatedShareBasedCompensationExpense_c20230701__20230930__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockUnitsRSUMember_zYopEOiIXMW1">86,905 </span></span></span><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">and $<span class="xdx_phnt_RGlzY2xvc3VyZSAtIFN0b2NraG9sZGVyc5IgRXF1aXR5IChEZXRhaWxzIE5hcnJhdGl2ZSA1KQA_" id="xdx_909_eus-gaap--AllocatedShareBasedCompensationExpense_c20230101__20230930__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockUnitsRSUMember_zVfagyEjcQQ9">821,321 </span></span></span><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">of stock compensation expense, respectively, and had approximately $<span class="xdx_phnt_RGlzY2xvc3VyZSAtIFN0b2NraG9sZGVyc5IgRXF1aXR5IChEZXRhaWxzIE5hcnJhdGl2ZSA1KQA_" id="xdx_901_eus-gaap--EmployeeServiceShareBasedCompensationNonvestedAwardsTotalCompensationCostNotYetRecognized_iI_c20230930__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockUnitsRSUMember_z6xUPsdZ0oc4">72,542 </span></span></span><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">of unrecognized stock-based compensation expense related to RSUs, which will be amortized over approximately 15 months.</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b> </b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 33.75pt"><span style="-sec-ix-redline: true"><span id="xdx_C02_gL3SOSBCRSUAA-PXI_z9obGms0tNy2" style="font-family: Times New Roman, Times, Serif; font-size: 10pt">For the nine months ended September 30, 2022, a summary of RSU activity is as follows:</span></span></p> <div id="xdx_C0E_gL3SOSBCRSUAA-PXI_zu3i7wWTzuhl"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 33.75pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <table cellpadding="0" cellspacing="0" id="xdx_307_134_zRBuempVn147" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%" summary="xdx: Disclosure - Schedule of Restricted Stock Unit Activity (Details)"> <tr style="font-family: Times New Roman, Times, Serif; vertical-align: bottom"> <td style="font-family: Times New Roman, Times, Serif; font-weight: bold; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; font-weight: bold; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; font-weight: bold; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">Shares</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; font-weight: bold"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; font-weight: bold; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; font-weight: bold; text-align: center"><p style="margin-top: 0; margin-bottom: 0"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">Weighted Average</span></span></p> <p style="margin-top: 0; margin-bottom: 0"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">Grant Date</span></span></p> <p style="margin-top: 0; margin-bottom: 0"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">Fair Value</span></span></p></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; font-weight: bold"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td></tr> <tr style="font-family: Times New Roman, Times, Serif; vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-family: Times New Roman, Times, Serif; width: 64%"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">Outstanding as of December 31, 2021</span></span></td><td style="font-family: Times New Roman, Times, Serif; width: 2%"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; width: 1%; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td id="xdx_989_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsNonvestedNumber_iS_c20220101__20220930__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockUnitsRSUMember_z7gbBdujEw0d" style="font-family: Times New Roman, Times, Serif; width: 14%; text-align: right" title="Number of shares,Beginning"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">1,147,250</span></span></td><td style="font-family: Times New Roman, Times, Serif; width: 1%; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; width: 2%"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; width: 1%; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">$</span></span></td><td id="xdx_98C_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsNonvestedWeightedAverageGrantDateFairValue_iS_pid_c20220101__20220930__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockUnitsRSUMember_zmZUxbql0bFd" style="font-family: Times New Roman, Times, Serif; width: 14%; text-align: right" title="Weighted average grant date fair value,Beginning"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">3.78</span></span></td><td style="font-family: Times New Roman, Times, Serif; width: 1%; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td></tr> <tr style="font-family: Times New Roman, Times, Serif; vertical-align: bottom; background-color: White"> <td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">Granted</span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td id="xdx_980_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsGrantsInPeriod_c20220101__20220930__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockUnitsRSUMember_z9OjO1hc5Zf1" style="font-family: Times New Roman, Times, Serif; text-align: right" title="Granted"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">457,091</span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td id="xdx_98B_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsGrantsInPeriodWeightedAverageGrantDateFairValue_pid_c20220101__20220930__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockUnitsRSUMember_zMs3RjiQf5qe" style="font-family: Times New Roman, Times, Serif; text-align: right" title="Weighted average grant date fair value,Granted"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">1.18</span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td></tr> <tr style="font-family: Times New Roman, Times, Serif; vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">Canceled</span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td id="xdx_986_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsForfeitedInPeriod_iN_di_c20220101__20220930__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockUnitsRSUMember_zgduOWivoahc" style="font-family: Times New Roman, Times, Serif; text-align: right" title="Canceled"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">(168,250</span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">)</span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td id="xdx_982_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsForfeituresWeightedAverageGrantDateFairValue_pid_c20220101__20220930__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockUnitsRSUMember_zlX6yuZJUBHe" style="font-family: Times New Roman, Times, Serif; text-align: right" title="Weighted average grant date fair value,Canceled"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">2.81</span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td></tr> <tr style="font-family: Times New Roman, Times, Serif; vertical-align: bottom; background-color: White"> <td style="font-family: Times New Roman, Times, Serif; text-align: left; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">Vested and released</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td id="xdx_989_ecustom--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsVestedAndReleasedInPeriod_iN_di_c20220101__20220930__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockUnitsRSUMember_z8GDWqvYjYm3" style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: right" title="Vested and released"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">(429,107</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">)</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td id="xdx_985_ecustom--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsVestedAndReleasedWeightedAverageGrantDateFairValue_pid_c20220101__20220930__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockUnitsRSUMember_z7TY2HpeCQ3b" style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: right" title="Weighted average grant date fair value,Vested and released"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">3.44</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td></tr> <tr style="font-family: Times New Roman, Times, Serif; vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">Outstanding as of September 30, 2022</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="border-bottom: Black 2.5pt double; font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td id="xdx_983_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsNonvestedNumber_iE_c20220101__20220930__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockUnitsRSUMember_zx7vC24rA3pj" style="border-bottom: Black 2.5pt double; font-family: Times New Roman, Times, Serif; text-align: right" title="Number of shares,Ending"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">1,006,984</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="border-bottom: Black 2.5pt double; font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">$</span></span></td><td id="xdx_983_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsNonvestedWeightedAverageGrantDateFairValue_iE_pid_c20220101__20220930__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockUnitsRSUMember_zstGNfa1UBMf" style="border-bottom: Black 2.5pt double; font-family: Times New Roman, Times, Serif; text-align: right" title="Weighted average grant date fair value,Ending"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">2.90</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td></tr> <tr style="font-family: Times New Roman, Times, Serif; vertical-align: bottom; background-color: White"> <td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">Vested as of September 30, 2022</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="border-bottom: Black 2.5pt double; font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td id="xdx_98E_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsVestedInPeriod_c20220101__20220930__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockUnitsRSUMember_zainrs3QV9oh" style="border-bottom: Black 2.5pt double; font-family: Times New Roman, Times, Serif; text-align: right" title="Vested"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">377,617</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="border-bottom: Black 2.5pt double; font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">$</span></span></td><td id="xdx_98F_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsVestedInPeriodWeightedAverageGrantDateFairValue_pid_c20220101__20220930__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockUnitsRSUMember_zmjjTQUMC3vf" style="border-bottom: Black 2.5pt double; font-family: Times New Roman, Times, Serif; text-align: right" title="Weighted average grant date fair value,Vested"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">3.72</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td></tr> <tr style="font-family: Times New Roman, Times, Serif; vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">Unvested as of September 30, 2022</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="border-bottom: Black 2.5pt double; font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td id="xdx_98A_ecustom--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsNonvestedInPeriod_c20220101__20220930__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockUnitsRSUMember_z4B3Foj0qFSa" style="border-bottom: Black 2.5pt double; font-family: Times New Roman, Times, Serif; text-align: right" title="Nonvested"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">629,367</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="border-bottom: Black 2.5pt double; font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">$</span></span></td><td id="xdx_981_ecustom--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsUnvestedInPeriodWeightedAverageGrantDateFairValue_pid_c20220101__20220930__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockUnitsRSUMember_zoQBx43zgca3" style="border-bottom: Black 2.5pt double; font-family: Times New Roman, Times, Serif; text-align: right" title="Weighted average grant date fair value,Unvested"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">2.41</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td></tr> </table> </div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="-sec-ix-redline: true"><span id="xdx_C01_gL3SOSBCRSUAA-PXI_zxHUriXdI9Uh" style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b> </b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 33.75pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">For the nine months ended September 30, 2022, the aggregate fair value of RSU awards at the time of vesting was $<span class="xdx_phnt_RGlzY2xvc3VyZSAtIFN0b2NraG9sZGVyc5IgRXF1aXR5IChEZXRhaWxzIE5hcnJhdGl2ZSA1KQA_" id="xdx_902_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsVestedInPeriodTotalFairValue_c20220101__20220930_zv8K1koVjm4e">538,198</span></span></span><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">.</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 33.75pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 33.75pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">For the three and nine months ended September 30, 2022, the Company recognized $<span class="xdx_phnt_RGlzY2xvc3VyZSAtIFN0b2NraG9sZGVyc5IgRXF1aXR5IChEZXRhaWxzIE5hcnJhdGl2ZSA1KQA_" id="xdx_90C_eus-gaap--AllocatedShareBasedCompensationExpense_c20220701__20220930__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockUnitsRSUMember_zYzMBtiWePug">221,925 </span></span></span><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">and $<span class="xdx_phnt_RGlzY2xvc3VyZSAtIFN0b2NraG9sZGVyc5IgRXF1aXR5IChEZXRhaWxzIE5hcnJhdGl2ZSA1KQA_" id="xdx_90A_eus-gaap--AllocatedShareBasedCompensationExpense_c20220101__20220930__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockUnitsRSUMember_zI2nld98Bfxg">1,786,517 </span></span></span><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">of stock compensation expense, respectively, and had approximately $<span class="xdx_phnt_RGlzY2xvc3VyZSAtIFN0b2NraG9sZGVyc5IgRXF1aXR5IChEZXRhaWxzIE5hcnJhdGl2ZSA1KQA_" id="xdx_90C_eus-gaap--EmployeeServiceShareBasedCompensationNonvestedAwardsTotalCompensationCostNotYetRecognized_iI_c20220930__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockUnitsRSUMember_zZ0ehlG9Qyob">540,635 </span></span></span><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">of unrecognized stock-based compensation expense related to RSUs, which will be amortized over approximately 13 months.</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 33.75pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 33.75pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i>Issuance of RSUs to Current Officers and Directors of the Company</i></b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 33.75pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 33.75pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">On September 29, 2023, upon recommendation of the Compensation Committee of the Board (“Compensation Committee”), in lieu of the payment of $<span class="xdx_phnt_RGlzY2xvc3VyZSAtIFN0b2NraG9sZGVyc5IgRXF1aXR5IChEZXRhaWxzIE5hcnJhdGl2ZSA2KQA_" id="xdx_905_ecustom--LieuPayment_iI_c20230929_z8TcyaKz7nL7">15,000</span></span></span> <span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">for each Board member or a total of $<span class="xdx_phnt_RGlzY2xvc3VyZSAtIFN0b2NraG9sZGVyc5IgRXF1aXR5IChEZXRhaWxzIE5hcnJhdGl2ZSA2KQA_" id="xdx_90D_eus-gaap--CompensationAndBenefitsTrust_iI_c20230929__srt--TitleOfIndividualAxis__custom--BoardMember_zDRh0g92NYT4">45,000 </span></span></span><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">as quarterly cash compensation, three (3) non-executive directors each received <span class="xdx_phnt_RGlzY2xvc3VyZSAtIFN0b2NraG9sZGVyc5IgRXF1aXR5IChEZXRhaWxzIE5hcnJhdGl2ZSA2KQA_" id="xdx_901_eus-gaap--CompensationAndBenefitsTrust_iI_c20230929__srt--TitleOfIndividualAxis__custom--NonExecutiveDirectorsMember_zkBXi7WyMF0h">88,235</span></span></span><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">, totaling <span class="xdx_phnt_RGlzY2xvc3VyZSAtIFN0b2NraG9sZGVyc5IgRXF1aXR5IChEZXRhaWxzIE5hcnJhdGl2ZSA2KQA_" id="xdx_90D_eus-gaap--CompensationAndBenefitsTrust_iI_c20230929__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockUnitsRSUMember_zn4JDE8vWG21">264,705 </span></span></span><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">RSUs equal to $<span class="xdx_phnt_RGlzY2xvc3VyZSAtIFN0b2NraG9sZGVyc5IgRXF1aXR5IChEZXRhaWxzIE5hcnJhdGl2ZSA2KQA_" id="xdx_90D_eus-gaap--CompensationAndBenefitsTrust_iI_c20230929__srt--TitleOfIndividualAxis__custom--BoardMember_zQ4NPRoQbVYg">45,000</span></span></span><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">, which were immediately vested, also in lieu of the issuance of stock options for the purchase of <span class="xdx_phnt_RGlzY2xvc3VyZSAtIFN0b2NraG9sZGVyc5IgRXF1aXR5IChEZXRhaWxzIE5hcnJhdGl2ZSA2KQA_" id="xdx_905_eus-gaap--ClassOfWarrantOrRightNumberOfSecuritiesCalledByWarrantsOrRights_iI_c20230929__us-gaap--DerivativeInstrumentRiskAxis__us-gaap--StockOptionMember_zD8qadcLt1a9">30,000 </span></span></span><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">shares of common stock, for each of these three (3) non-executive directors received a total of <span class="xdx_phnt_RGlzY2xvc3VyZSAtIFN0b2NraG9sZGVyc5IgRXF1aXR5IChEZXRhaWxzIE5hcnJhdGl2ZSA2KQA_" id="xdx_904_eus-gaap--StockIssuedDuringPeriodSharesRestrictedStockAwardGross_c20230929__20230929__us-gaap--DerivativeInstrumentRiskAxis__us-gaap--StockOptionMember__srt--TitleOfIndividualAxis__custom--NonExecutiveDirectorsMember_zoI2BaBdyqx3">90,000 </span></span></span><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">in restricted stock awards, which vested immediately for a fair value of $<span class="xdx_phnt_RGlzY2xvc3VyZSAtIFN0b2NraG9sZGVyc5IgRXF1aXR5IChEZXRhaWxzIE5hcnJhdGl2ZSA2KQA_" id="xdx_906_eus-gaap--StockIssuedDuringPeriodSharesRestrictedStockAwardGross_c20230929__20230929__us-gaap--DerivativeInstrumentRiskAxis__us-gaap--StockOptionMember_zTLZJ7b1GsSb">15,300 </span></span></span><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">in the aggregate or $<span class="xdx_phnt_RGlzY2xvc3VyZSAtIFN0b2NraG9sZGVyc5IgRXF1aXR5IChEZXRhaWxzIE5hcnJhdGl2ZSA2KQA_" id="xdx_90C_eus-gaap--StockIssuedDuringPeriodSharesRestrictedStockAwardNetOfForfeitures_c20230929__20230929__us-gaap--DerivativeInstrumentRiskAxis__us-gaap--StockOptionMember_zK82lD6jzPwc">5,100 </span></span></span><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">each.</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 33.75pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 33.75pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">On May 11, 2023, upon recommendation of the Compensation Committee of the Board (“Compensation Committee”), the Board granted to the officers of the Company in connection with the 2022 executive compensation plan <span class="xdx_phnt_RGlzY2xvc3VyZSAtIFN0b2NraG9sZGVyc5IgRXF1aXR5IChEZXRhaWxzIE5hcnJhdGl2ZSA2KQA_" id="xdx_901_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsGrantsInPeriod_c20230511__20230511__us-gaap--TypeOfArrangementAxis__custom--TwoThousandTwentyTwoExecutiveCompensationPlanMember__srt--TitleOfIndividualAxis__srt--OfficerMember_zJ7SalGccvWl">968,690 </span></span></span><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">RSUs, which vested immediately.</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b> </b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 33.75pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">On March 29, 2023, upon recommendation of the Compensation Committee, the Board granted to the officers of the Company in connection with the 2022 executive compensation plan <span class="xdx_phnt_RGlzY2xvc3VyZSAtIFN0b2NraG9sZGVyc5IgRXF1aXR5IChEZXRhaWxzIE5hcnJhdGl2ZSA2KQA_" id="xdx_90B_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsGrantsInPeriod_c20230329__20230329__us-gaap--TypeOfArrangementAxis__custom--TwoThousandTwentyTwoExecutiveCompensationPlanMember__srt--TitleOfIndividualAxis__srt--OfficerMember_zoOfJfIHmNo2">640,000 </span></span></span><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">RSUs, which vested immediately.</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 33.75pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 33.75pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">For the three and nine months ended September 30, 2023, the Company recognized stock-based compensation expense of $<span class="xdx_phnt_RGlzY2xvc3VyZSAtIFN0b2NraG9sZGVyc5IgRXF1aXR5IChEZXRhaWxzIE5hcnJhdGl2ZSA2KQA_" id="xdx_909_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsGrantsInPeriod_c20230701__20230930__us-gaap--TypeOfArrangementAxis__custom--TwoThousandTwentyTwoExecutiveCompensationPlanMember__srt--TitleOfIndividualAxis__srt--OfficerMember_zImOxw7XFYFc">60,300 </span></span></span><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">and $<span class="xdx_phnt_RGlzY2xvc3VyZSAtIFN0b2NraG9sZGVyc5IgRXF1aXR5IChEZXRhaWxzIE5hcnJhdGl2ZSA2KQA_" id="xdx_90A_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsGrantsInPeriod_c20230101__20230930__us-gaap--TypeOfArrangementAxis__custom--TwoThousandTwentyTwoExecutiveCompensationPlanMember__srt--TitleOfIndividualAxis__srt--OfficerMember_zV6TkaYL7Aed">700,205</span></span></span><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">, respectively, based upon the market price of its Common Stock between $<span class="xdx_phnt_RGlzY2xvc3VyZSAtIFN0b2NraG9sZGVyc5IgRXF1aXR5IChEZXRhaWxzIE5hcnJhdGl2ZSA2KQA_" id="xdx_90F_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsGrantsInPeriodWeightedAverageGrantDateFairValue_pid_c20230701__20230930__srt--TitleOfIndividualAxis__srt--OfficerMember__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockUnitsRSUMember_za4GbCtjXi2k">0.17 </span></span></span><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">and $<span class="xdx_phnt_RGlzY2xvc3VyZSAtIFN0b2NraG9sZGVyc5IgRXF1aXR5IChEZXRhaWxzIE5hcnJhdGl2ZSA2KQA_" id="xdx_907_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsGrantsInPeriodWeightedAverageGrantDateFairValue_pid_c20230101__20230930__srt--TitleOfIndividualAxis__srt--OfficerMember__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockUnitsRSUMember_zgaqSPQoaCB9">0.42 </span></span></span><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">per share on the date of grant of these RSUs.</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 33.75pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b> </b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>AGEAGLE AERIAL SYSTEMS INC. AND SUBSIDIARIES</b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS</b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2023 AND 2022</b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>(UNAUDITED)</b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b> </b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Note 7 – Stockholders’ Equity – Continued</b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 33.75pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i> </i></b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 33.75pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i>Stock Options</i></b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 33.75pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p id="xdx_89C_eus-gaap--ScheduleOfShareBasedCompensationStockOptionsActivityTableTextBlock_gL3SOSBCSOATT-QCQ_z4vcbhvU8p9k" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 33.75pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">For the nine months ended September 30, 2023, a summary of the options activity is as follows:</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 33.75pt"> </p> <p style="font: 10pt Times New Roman, Times, Serif; display: none; margin: 0pt 0; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> <span id="xdx_8B9_zPEY03dlaIYf" style="display: none">Summary of Options Activity</span></span></span></p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="font-family: Times New Roman, Times, Serif; vertical-align: bottom"> <td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; font-weight: bold; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; font-weight: bold; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">Shares</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; font-weight: bold"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; font-weight: bold; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; font-weight: bold; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">Weighted Average Exercise Price</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; font-weight: bold"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; font-weight: bold; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; font-weight: bold; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">Weighted Average Fair Value</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; font-weight: bold"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; font-weight: bold; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; font-weight: bold; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">Weighted Average Remaining Contractual Term (Years)</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; font-weight: bold"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; font-weight: bold; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; font-weight: bold; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">Aggregate Intrinsic Value</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; font-weight: bold"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td></tr> <tr style="font-family: Times New Roman, Times, Serif; vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-family: Times New Roman, Times, Serif; width: 35%"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">Outstanding as of December 31, 2022</span></span></td><td style="font-family: Times New Roman, Times, Serif; width: 2%"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; width: 1%; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td id="xdx_98B_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingNumber_iS_c20230101__20230930_zeGtybzQXbf7" style="font-family: Times New Roman, Times, Serif; width: 9%; text-align: right" title="Number of shares,Beginning"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">2,561,231</span></span></td><td style="font-family: Times New Roman, Times, Serif; width: 1%; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; width: 2%"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; width: 1%; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">$</span></span></td><td id="xdx_982_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingWeightedAverageExercisePrice_iS_c20230101__20230930_zcPwflolFcpk" style="font-family: Times New Roman, Times, Serif; width: 9%; text-align: right" title="Weighted average exercise price,Beginning"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">2.18</span></span></td><td style="font-family: Times New Roman, Times, Serif; width: 1%; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; width: 2%"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; width: 1%; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">$</span></span></td><td id="xdx_988_eus-gaap--SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsNonvestedWeightedAverageGrantDateFairValue_iS_c20230101__20230930_zgc9Nh4fy603" style="font-family: Times New Roman, Times, Serif; width: 9%; text-align: right" title="Weighted average fair value,Beginning"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">1.19</span></span></td><td style="font-family: Times New Roman, Times, Serif; width: 1%; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; width: 2%"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; width: 1%; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; width: 9%; text-align: right"><span style="-sec-ix-redline: true"><span id="xdx_90C_eus-gaap--SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsOutstandingWeightedAverageRemainingContractualTerm2_dtY_c20220101__20221231_zL5zlZzvGFNk" style="font-family: Times New Roman, Times, Serif">3.33</span></span></td><td style="font-family: Times New Roman, Times, Serif; width: 1%; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; width: 2%"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; width: 1%; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">$</span></span></td><td id="xdx_983_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingIntrinsicValue_iS_c20230101__20230930_zPpxX5QPd9wi" style="font-family: Times New Roman, Times, Serif; width: 9%; text-align: right" title="Aggregate intrinsic value, Beginning"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">31,124</span></span></td><td style="font-family: Times New Roman, Times, Serif; width: 1%; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td></tr> <tr style="font-family: Times New Roman, Times, Serif; vertical-align: bottom; background-color: White"> <td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">Granted</span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td id="xdx_982_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsGrantsInPeriodGross_c20230101__20230930_zz4HE96yy7w6" style="font-family: Times New Roman, Times, Serif; text-align: right" title="Number of shares,Granted"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">325,000</span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td id="xdx_98E_eus-gaap--ShareBasedCompensationArrangementsByShareBasedPaymentAwardOptionsGrantsInPeriodWeightedAverageExercisePrice_c20230101__20230930_z5GjyOXI3BBa" style="font-family: Times New Roman, Times, Serif; text-align: right" title="Weighted average exercise price,Granted"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">0.32</span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td id="xdx_982_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsGrantsInPeriodWeightedAverageGrantDateFairValue_c20230101__20230930_zTdJLMX00JV4" style="font-family: Times New Roman, Times, Serif; text-align: right" title="Weighted average fair value,Granted"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">0.15</span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span id="xdx_904_ecustom--SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsOutstandingWeightedAverageRemainingContractualTermGranted_dtY_c20230101__20230930_zrSVUH2pIMK4" style="font-family: Times New Roman, Times, Serif">3.02</span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">—</span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td></tr> <tr style="font-family: Times New Roman, Times, Serif; vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">Expired/Forfeited</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td id="xdx_984_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsForfeituresAndExpirationsInPeriod_iN_di_c20230101__20230930_z223rizsvKPa" style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: right" title="Number of shares,Expired/Forfeited"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">(108,499</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">)</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td id="xdx_98C_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsForfeituresAndExpirationsInPeriodWeightedAverageExercisePrice_c20230101__20230930_zYSh0leHmfv6" style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: right" title="Weighted average exercise price,Expired/Forfeited"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">4.46</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td id="xdx_98C_eus-gaap--SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsNonvestedOptionsForfeitedWeightedAverageGrantDateFairValue_c20230101__20230930_zfmA8XG4Fs2b" style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: right" title="Weighted average fair value,Expired/Forfeited"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">2.47</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">—</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">—</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td></tr> <tr style="font-family: Times New Roman, Times, Serif; vertical-align: bottom; background-color: White"> <td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">Outstanding as of September 30, 2023</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="border-bottom: Black 2.5pt double; font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td id="xdx_987_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingNumber_iE_c20230101__20230930_zAMCv7PLNmw9" style="border-bottom: Black 2.5pt double; font-family: Times New Roman, Times, Serif; text-align: right" title="Number of shares,Ending"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">2,777,732</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="border-bottom: Black 2.5pt double; font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">$</span></span></td><td style="border-bottom: Black 2.5pt double; font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">$<span id="xdx_907_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingWeightedAverageExercisePrice_iE_c20230101__20230930_zfktSSOhNYph">1.88</span></span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="border-bottom: Black 2.5pt double; font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">$</span></span></td><td id="xdx_98E_eus-gaap--SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsNonvestedWeightedAverageGrantDateFairValue_iE_c20230101__20230930_zmyw3Bwl6Yta" style="border-bottom: Black 2.5pt double; font-family: Times New Roman, Times, Serif; text-align: right" title="Weighted average fair value,Ending"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">1.02</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="border-bottom: Black 2.5pt double; font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="border-bottom: Black 2.5pt double; font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span id="xdx_905_eus-gaap--SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsOutstandingWeightedAverageRemainingContractualTerm2_dtY_c20230101__20230930_zm5OTTPcekQ7" style="font-family: Times New Roman, Times, Serif">2.84</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="border-bottom: Black 2.5pt double; font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">$</span></span></td><td id="xdx_981_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingIntrinsicValue_iE_c20230101__20230930_zTYhoDB7mjE9" style="border-bottom: Black 2.5pt double; font-family: Times New Roman, Times, Serif; text-align: right" title="Aggregate intrinsic value, Ending"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">6,194</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td></tr> <tr style="font-family: Times New Roman, Times, Serif; vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">Exercisable as of September 30, 2023</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="border-bottom: Black 2.5pt double; font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td id="xdx_98D_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsExercisableNumber_iI_c20230930_z9hy8B3QZbzd" style="border-bottom: Black 2.5pt double; font-family: Times New Roman, Times, Serif; text-align: right" title="Number of shares,Exercisable"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">2,297,691</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="border-bottom: Black 2.5pt double; font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">$</span></span></td><td id="xdx_98E_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsExercisableWeightedAverageExercisePrice_iI_c20230930_z6X16By2spE4" style="border-bottom: Black 2.5pt double; font-family: Times New Roman, Times, Serif; text-align: right" title="Weighted average exercise price,Exercisable"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">2.18</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="border-bottom: Black 2.5pt double; font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">$</span></span></td><td id="xdx_982_ecustom--SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsExercisableWeightedAverageFairValue_iI_c20230930_zmtB3QvBQMN" style="border-bottom: Black 2.5pt double; font-family: Times New Roman, Times, Serif; text-align: right" title="Weighted average fair value,Exercisable"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">1.18</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="border-bottom: Black 2.5pt double; font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="border-bottom: Black 2.5pt double; font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span id="xdx_902_eus-gaap--SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsExercisableWeightedAverageRemainingContractualTerm1_dtY_c20230101__20230930_zfR5w4wSc46d" style="font-family: Times New Roman, Times, Serif">2.53</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="border-bottom: Black 2.5pt double; font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">$</span></span></td><td id="xdx_98B_eus-gaap--SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsExercisableIntrinsicValue1_iI_c20230930_zIQUPINyXVkd" style="border-bottom: Black 2.5pt double; font-family: Times New Roman, Times, Serif; text-align: right" title="Aggregate intrinsic value, Exercisable"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">6,194</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td></tr> </table> <p id="xdx_8A9_zXnfElDA587g" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b> </b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 33.75pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">For the three and nine months ended September 30, 2023, the Company recognized $<span class="xdx_phnt_RGlzY2xvc3VyZSAtIFN0b2NraG9sZGVyc5IgRXF1aXR5IChEZXRhaWxzIE5hcnJhdGl2ZSA2KQA_" id="xdx_901_eus-gaap--AllocatedShareBasedCompensationExpense_c20230701__20230930__us-gaap--AwardTypeAxis__us-gaap--EmployeeStockOptionMember_zgAaQi9yZRnb">55,940 </span></span></span><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">and $<span class="xdx_phnt_RGlzY2xvc3VyZSAtIFN0b2NraG9sZGVyc5IgRXF1aXR5IChEZXRhaWxzIE5hcnJhdGl2ZSA2KQA_" id="xdx_905_eus-gaap--AllocatedShareBasedCompensationExpense_c20230101__20230930__us-gaap--AwardTypeAxis__us-gaap--EmployeeStockOptionMember_zmslbfqNiC6d">303,888</span></span></span><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">, respectively, of stock compensation expense and had approximately $<span class="xdx_phnt_RGlzY2xvc3VyZSAtIFN0b2NraG9sZGVyc5IgRXF1aXR5IChEZXRhaWxzIE5hcnJhdGl2ZSA2KQA_" id="xdx_906_eus-gaap--EmployeeServiceShareBasedCompensationNonvestedAwardsTotalCompensationCostNotYetRecognized_iI_c20230930__us-gaap--AwardTypeAxis__us-gaap--EmployeeStockOptionMember_z0DWOvxDytlh">100,971 </span></span></span><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">of total unrecognized compensation cost related to stock options, which will be amortized through September 30, 2025.</span></span></p> <div id="xdx_C09_gL3SOSBCSOATT-QCQ_ztcKmQggkZy5"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 33.75pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">For the nine months ended September 30, 2022, a summary of the options activity is as follows:</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <table cellpadding="0" cellspacing="0" id="xdx_30D_134_zIE6cXTTt5Nb" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%" summary="xdx: Disclosure - Summary of Options Activity (Details)"> <tr style="font-family: Times New Roman, Times, Serif; vertical-align: bottom"> <td style="font-family: Times New Roman, Times, Serif; font-weight: bold"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; font-weight: bold; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; font-weight: bold; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">Shares</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; font-weight: bold"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; font-weight: bold; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; font-weight: bold; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">Weighted Average Exercise Price</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; font-weight: bold"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; font-weight: bold; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; font-weight: bold; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">Weighted Average Fair Value</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; font-weight: bold"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; font-weight: bold; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; font-weight: bold; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">Weighted Average Remaining Contractual Term (Years)</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; font-weight: bold"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; font-weight: bold; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; font-weight: bold; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">Aggregate Intrinsic Value</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; font-weight: bold"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td></tr> <tr style="font-family: Times New Roman, Times, Serif; vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-family: Times New Roman, Times, Serif; width: 35%"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">Outstanding as of December 31, 2021</span></span></td><td style="font-family: Times New Roman, Times, Serif; width: 2%"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; width: 1%; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td id="xdx_986_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingNumber_iS_c20220101__20220930_zaM64vZxdXb7" style="font-family: Times New Roman, Times, Serif; width: 9%; text-align: right" title="Number of shares,Beginning"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">2,541,667</span></span></td><td style="font-family: Times New Roman, Times, Serif; width: 1%; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; width: 2%"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; width: 1%; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">$</span></span></td><td id="xdx_984_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingWeightedAverageExercisePrice_iS_c20220101__20220930_zpXEzPPoM7Cd" style="font-family: Times New Roman, Times, Serif; width: 9%; text-align: right" title="Weighted average exercise price,Beginning"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">2.88</span></span></td><td style="font-family: Times New Roman, Times, Serif; width: 1%; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; width: 2%"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; width: 1%; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">$</span></span></td><td id="xdx_98C_eus-gaap--SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsNonvestedWeightedAverageGrantDateFairValue_iS_c20220101__20220930_ziHMzmCnAfJf" style="font-family: Times New Roman, Times, Serif; width: 9%; text-align: right" title="Weighted average fair value,Beginning"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">1.57</span></span></td><td style="font-family: Times New Roman, Times, Serif; width: 1%; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; width: 2%"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; width: 1%; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; width: 9%; text-align: right"><span style="-sec-ix-redline: true"><span id="xdx_90B_eus-gaap--SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsOutstandingWeightedAverageRemainingContractualTerm2_dtY_c20210101__20211231_zbQ3RbvCGiYi" style="font-family: Times New Roman, Times, Serif">4.27</span></span></td><td style="font-family: Times New Roman, Times, Serif; width: 1%; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; width: 2%"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; width: 1%; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">$</span></span></td><td id="xdx_98E_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingIntrinsicValue_iS_c20220101__20220930_zFN9IeTidkpa" style="font-family: Times New Roman, Times, Serif; width: 9%; text-align: right" title="Aggregate intrinsic value, Beginning"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">1,244,029</span></span></td><td style="font-family: Times New Roman, Times, Serif; width: 1%; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td></tr> <tr style="font-family: Times New Roman, Times, Serif; vertical-align: bottom; background-color: White"> <td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">Granted</span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td id="xdx_985_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsGrantsInPeriodGross_c20220101__20220930_z9N1yQo5hbr8" style="font-family: Times New Roman, Times, Serif; text-align: right" title="Number of shares,Granted"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">395,000</span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td id="xdx_984_eus-gaap--ShareBasedCompensationArrangementsByShareBasedPaymentAwardOptionsGrantsInPeriodWeightedAverageExercisePrice_c20220101__20220930_z1sIVdfZ6RLb" style="font-family: Times New Roman, Times, Serif; text-align: right" title="Weighted average exercise price,Granted"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">0.76</span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td id="xdx_98B_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsGrantsInPeriodWeightedAverageGrantDateFairValue_c20220101__20220930_ztvt3FnxnJCj" style="font-family: Times New Roman, Times, Serif; text-align: right" title="Weighted average fair value,Granted"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">0.36</span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span id="xdx_90E_ecustom--SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsOutstandingWeightedAverageRemainingContractualTermGranted_dtY_c20220101__20220930_zs9g0GxO6Vlb" style="font-family: Times New Roman, Times, Serif">3.02</span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">—</span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td></tr> <tr style="font-family: Times New Roman, Times, Serif; vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">Exercised</span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td id="xdx_983_eus-gaap--StockIssuedDuringPeriodSharesStockOptionsExercised_iN_di_c20220101__20220930_zPzjtetT3k2j" style="font-family: Times New Roman, Times, Serif; text-align: right" title="Number of shares,Exercised"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">(185,000</span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">)</span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td id="xdx_988_eus-gaap--ShareBasedCompensationArrangementsByShareBasedPaymentAwardOptionsExercisesInPeriodWeightedAverageExercisePrice_c20220101__20220930_z8kseljNjyjg" style="font-family: Times New Roman, Times, Serif; text-align: right" title="Weighted average exercise price,Exercised"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">0.40</span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td id="xdx_98A_ecustom--SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsExercisedWeightedAverageGrantDateFairValue_c20220101__20220930_zBZ1RHJnZSx9" style="font-family: Times New Roman, Times, Serif; text-align: right" title="Weighted average fair value,Exercised"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">0.29</span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">—</span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td id="xdx_98A_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsExercisesInPeriodTotalIntrinsicValue_c20220101__20220930_zQquVjfCVRQ5" style="font-family: Times New Roman, Times, Serif; text-align: right" title="Aggregate intrinsic value, Exercised"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">10,750</span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td></tr> <tr style="font-family: Times New Roman, Times, Serif; vertical-align: bottom; background-color: White"> <td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">Expired/Forfeited</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td id="xdx_98A_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsForfeituresAndExpirationsInPeriod_iN_di_c20220101__20220930_zeN0EJzmLs95" style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: right" title="Number of shares,Expired/Forfeited"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">(267,294</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">)</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td id="xdx_980_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsForfeituresAndExpirationsInPeriodWeightedAverageExercisePrice_c20220101__20220930_zoJXBqon2syg" style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: right" title="Weighted average exercise price,Expired/Forfeited"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">6.22</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td id="xdx_98D_eus-gaap--SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsNonvestedOptionsForfeitedWeightedAverageGrantDateFairValue_c20220101__20220930_z9RutVt01ai7" style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: right" title="Weighted average fair value,Expired/Forfeited"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">3.34</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">—</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">—</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td></tr> <tr style="font-family: Times New Roman, Times, Serif; vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">Outstanding as of September 30, 2022</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="border-bottom: Black 2.5pt double; font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td id="xdx_984_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingNumber_iE_c20220101__20220930_zHzRHsgmrpDb" style="border-bottom: Black 2.5pt double; font-family: Times New Roman, Times, Serif; text-align: right" title="Number of shares,Ending"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">2,484,373</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="border-bottom: Black 2.5pt double; font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">$</span></span></td><td id="xdx_98B_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingWeightedAverageExercisePrice_iE_c20220101__20220930_zX1mAn0G6Zpk" style="border-bottom: Black 2.5pt double; font-family: Times New Roman, Times, Serif; text-align: right" title="Weighted average exercise price,Ending"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">2.37</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="border-bottom: Black 2.5pt double; font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">$</span></span></td><td id="xdx_98B_eus-gaap--SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsNonvestedWeightedAverageGrantDateFairValue_iE_c20220101__20220930_zqRN08Ocf9b7" style="border-bottom: Black 2.5pt double; font-family: Times New Roman, Times, Serif; text-align: right" title="Weighted average fair value,Ending"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">1.29</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="border-bottom: Black 2.5pt double; font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="border-bottom: Black 2.5pt double; font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span id="xdx_902_eus-gaap--SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsOutstandingWeightedAverageRemainingContractualTerm2_dtY_c20220101__20220930_zoFpDTgvN4k1" style="font-family: Times New Roman, Times, Serif">3.47</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="border-bottom: Black 2.5pt double; font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">$</span></span></td><td id="xdx_981_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingIntrinsicValue_iE_c20220101__20220930_zgyWwRSxvjN8" style="border-bottom: Black 2.5pt double; font-family: Times New Roman, Times, Serif; text-align: right" title="Aggregate intrinsic value, Ending"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">89,334</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td></tr> <tr style="font-family: Times New Roman, Times, Serif; vertical-align: bottom; background-color: White"> <td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">Exercisable as of September 30, 2022</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="border-bottom: Black 2.5pt double; font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td id="xdx_98D_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsExercisableNumber_iI_c20220930_zumhp5ciZJ4d" style="border-bottom: Black 2.5pt double; font-family: Times New Roman, Times, Serif; text-align: right" title="Number of shares,Exercisable"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">1,836,095</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="border-bottom: Black 2.5pt double; font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">$</span></span></td><td id="xdx_983_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsExercisableWeightedAverageExercisePrice_iI_c20220930_zoSVV6EEpdBh" style="border-bottom: Black 2.5pt double; font-family: Times New Roman, Times, Serif; text-align: right" title="Weighted average exercise price,Exercisable"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">2.42</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="border-bottom: Black 2.5pt double; font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">$</span></span></td><td id="xdx_98B_ecustom--SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsExercisableWeightedAverageFairValue_iI_c20220930_zbX88x4FFExa" style="border-bottom: Black 2.5pt double; font-family: Times New Roman, Times, Serif; text-align: right" title="Weighted average fair value,Exercisable"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">1.33</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="border-bottom: Black 2.5pt double; font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="border-bottom: Black 2.5pt double; font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span id="xdx_903_eus-gaap--SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsExercisableWeightedAverageRemainingContractualTerm1_dtY_c20220101__20220930_z2fijwhveOkk" style="font-family: Times New Roman, Times, Serif">3.16</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="border-bottom: Black 2.5pt double; font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">$</span></span></td><td id="xdx_981_eus-gaap--SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsExercisableIntrinsicValue1_iI_c20220930_zJ4P73MrfX28" style="border-bottom: Black 2.5pt double; font-family: Times New Roman, Times, Serif; text-align: right" title="Aggregate intrinsic value, Exercisable"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">89,334</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td></tr> </table> </div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><span style="-sec-ix-redline: true"><span id="xdx_C02_gL3SOSBCSOATT-QCQ_zXeOX7iZusKi" style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">For the three and nine months ended September 30, 2022, the Company recognized $<span class="xdx_phnt_RGlzY2xvc3VyZSAtIFN0b2NraG9sZGVyc5IgRXF1aXR5IChEZXRhaWxzIE5hcnJhdGl2ZSA2KQA_" id="xdx_901_eus-gaap--AllocatedShareBasedCompensationExpense_c20220701__20220930__us-gaap--AwardTypeAxis__us-gaap--EmployeeStockOptionMember_zLyGIrw31PQ7">345,606 </span></span></span><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">and $<span class="xdx_phnt_RGlzY2xvc3VyZSAtIFN0b2NraG9sZGVyc5IgRXF1aXR5IChEZXRhaWxzIE5hcnJhdGl2ZSA2KQA_" id="xdx_90B_eus-gaap--AllocatedShareBasedCompensationExpense_c20220101__20220930__us-gaap--AwardTypeAxis__us-gaap--EmployeeStockOptionMember_z81EoSmv0uoj">1,272,226</span></span></span><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">, respectively, in stock compensation expense, and had $<span class="xdx_phnt_RGlzY2xvc3VyZSAtIFN0b2NraG9sZGVyc5IgRXF1aXR5IChEZXRhaWxzIE5hcnJhdGl2ZSA2KQA_" id="xdx_909_eus-gaap--EmployeeServiceShareBasedCompensationNonvestedAwardsTotalCompensationCostNotYetRecognized_iI_c20220930__us-gaap--AwardTypeAxis__us-gaap--EmployeeStockOptionMember_zruFAaLFZ2h3">741,497 </span></span></span><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">of total unrecognized compensation cost related to stock options, which will be amortized over approximately 27 months.</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 33.75pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 33.75pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Intrinsic value is measured using the fair market value at the date of exercise (for shares exercised) or as of September 30, 2023 (for outstanding options), less the applicable exercise price.</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 33.75pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b> </b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>AGEAGLE AERIAL SYSTEMS INC. AND SUBSIDIARIES</b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS</b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2023 AND 2022</b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>(UNAUDITED)</b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b> </b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Note 7 – Stockholders’ Equity – Continued</b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 33.75pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 33.75pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">For the nine months ended September 30, 2023 and 2022, the significant assumptions relating to the valuation of the Company’s stock options granted were as follows:</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 33.75pt"> </p> <p id="xdx_89C_eus-gaap--ScheduleOfShareBasedPaymentAwardStockOptionsValuationAssumptionsTableTextBlock_zgtjwGIReRB1" style="font: 10pt Times New Roman, Times, Serif; display: none; margin: 0pt 0; text-align: justify; text-indent: 33.75pt"><span style="-sec-ix-redline: true"><span id="xdx_8B7_z67fg3HwaMn4" style="display: none; font-family: Times New Roman, Times, Serif; font-size: 10pt">Schedule of Significant Weighted Average Assumptions</span></span><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="display: none; font-family: Times New Roman, Times, Serif; vertical-align: bottom; background-color: White"> <td style="font-family: Times New Roman, Times, Serif; text-align: center"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: center; font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"> </span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: center"><span style="-sec-ix-redline: true"> </span></td><td id="xdx_494_20230101__20230930_zc3ve8dBwrge" style="font-family: Times New Roman, Times, Serif; text-align: center"><span style="-sec-ix-redline: true"> </span></td><td style="font-family: Times New Roman, Times, Serif; text-align: center"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: center; font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"> </span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: center"><span style="-sec-ix-redline: true"> </span></td><td id="xdx_49F_20220101__20220930_z0AzbMcBOpJl" style="font-family: Times New Roman, Times, Serif; text-align: center"><span style="-sec-ix-redline: true"> </span></td><td style="font-family: Times New Roman, Times, Serif; text-align: center"><span style="-sec-ix-redline: true"> </span></td></tr> <tr style="font-family: Times New Roman, Times, Serif; vertical-align: bottom"> <td style="font-family: Times New Roman, Times, Serif; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; font-weight: bold; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td colspan="6" style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; font-weight: bold; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">September 30,</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; font-weight: bold"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td></tr> <tr style="font-family: Times New Roman, Times, Serif; vertical-align: bottom"> <td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; font-weight: bold; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; font-weight: bold; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">2023</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; font-weight: bold"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; font-weight: bold; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; font-weight: bold; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">2022</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; font-weight: bold"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td></tr> <tr style="font-family: Times New Roman, Times, Serif; vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-family: Times New Roman, Times, Serif; width: 64%"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">Stock price</span></span></td><td style="font-family: Times New Roman, Times, Serif; width: 2%"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; width: 1%; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">$</span></span></td><td style="font-family: Times New Roman, Times, Serif; width: 14%; text-align: right"><span style="-sec-ix-redline: true"><span id="xdx_905_eus-gaap--SharePrice_iI_c20230930_zCw71SEHpWQ3" style="font-family: Times New Roman, Times, Serif">0.32</span></span></td><td style="font-family: Times New Roman, Times, Serif; width: 1%; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; width: 2%"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; width: 1%; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">$</span></span></td><td style="font-family: Times New Roman, Times, Serif; width: 14%; text-align: right"><span style="-sec-ix-redline: true"><span id="xdx_907_eus-gaap--SharePrice_iI_c20220930_z5upM0Qq23Hh" style="font-family: Times New Roman, Times, Serif">0.46</span></span></td><td style="font-family: Times New Roman, Times, Serif; width: 1%; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td></tr> <tr id="xdx_401_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExpectedDividendRate_dp_zuJyK6DEggcc" style="font-family: Times New Roman, Times, Serif; vertical-align: bottom; background-color: White"> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">Dividend yield</span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-hidden: xdx2ixbrl1627">—</span></span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">%</span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><span style="-sec-ix-hidden: xdx2ixbrl1628">—</span></span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">%</span></span></td></tr> <tr style="font-family: Times New Roman, Times, Serif; vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">Expected life (years)</span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span id="xdx_907_eus-gaap--SharebasedCompensationArrangementBySharebasedPaymentAwardFairValueAssumptionsExpectedTerm1_dtY_c20230101__20230930_zF0YNFJzt8yi" style="font-family: Times New Roman, Times, Serif">3.02</span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span id="xdx_905_eus-gaap--SharebasedCompensationArrangementBySharebasedPaymentAwardFairValueAssumptionsExpectedTerm1_dtY_c20220101__20220930_zAszKab9kL43" style="font-family: Times New Roman, Times, Serif">3.02</span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td></tr> <tr id="xdx_400_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExpectedVolatilityRate_dp_zLu3435L76I9" style="font-family: Times New Roman, Times, Serif; vertical-align: bottom; background-color: White"> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">Expected volatility</span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">63.64</span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">%</span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">69.84.</span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">%</span></span></td></tr> <tr id="xdx_407_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsRiskFreeInterestRate_dp_zeyDcCyIgs94" style="font-family: Times New Roman, Times, Serif; vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">Risk-free interest rate</span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">4.22</span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">%</span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">3.25</span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">%</span></span></td></tr> </table> <p id="xdx_8A1_z0Edb4l6TyD5" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 33.75pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i>Issuances of Options to Officers</i></b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 33.75pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">On September 30, 2023, the Company issued to officers options to purchase <span class="xdx_phnt_RGlzY2xvc3VyZSAtIFN0b2NraG9sZGVyc5IgRXF1aXR5IChEZXRhaWxzIE5hcnJhdGl2ZSA2KQA_" id="xdx_90D_eus-gaap--RestrictedStockSharesIssuedNetOfSharesForTaxWithholdings_c20230101__20230930__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--IssuancesOfOptionsToOfficersAndDirectorsMember_zxtTkfHTWUA6">50,000 </span></span></span><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">shares of Common Stock at an exercise price of $<span class="xdx_phnt_RGlzY2xvc3VyZSAtIFN0b2NraG9sZGVyc5IgRXF1aXR5IChEZXRhaWxzIE5hcnJhdGl2ZSA2KQA_" id="xdx_905_eus-gaap--ShareBasedCompensationArrangementsByShareBasedPaymentAwardOptionsExercisesInPeriodWeightedAverageExercisePrice_c20230101__20230930__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--IssuancesOfOptionsToOfficersAndDirectorsMember_z2bWGGU4aWd8">0.17 </span></span></span><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">per share, which vests over a period of two years from the date of grant and expires on September 29, 2028. The Company determined the fair market value of these unvested options to be $<span class="xdx_phnt_RGlzY2xvc3VyZSAtIFN0b2NraG9sZGVyc5IgRXF1aXR5IChEZXRhaWxzIE5hcnJhdGl2ZSA2KQA_" id="xdx_907_ecustom--FairMarketValues_c20230101__20230930__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--IssuancesOfOptionsToOfficersAndDirectorsMember_zdkDj16f9aQ3">3,750</span></span></span><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">. For the three and nine months ended September 30, 2023, the Company recognized stock-based compensation expense of $<span class="xdx_phnt_RGlzY2xvc3VyZSAtIFN0b2NraG9sZGVyc5IgRXF1aXR5IChEZXRhaWxzIE5hcnJhdGl2ZSA2KQA_" id="xdx_90A_eus-gaap--EmployeeBenefitsAndShareBasedCompensation_c20230101__20230630__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--IssuancesOfOptionsToOfficersAndDirectorsMember__us-gaap--AwardTypeAxis__custom--SeptemberThirtyTwentyTwentyThreeMember_zn815MMHSqz2">5</span></span></span><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">, respectively, based upon the fair value market price of $<span class="xdx_phnt_RGlzY2xvc3VyZSAtIFN0b2NraG9sZGVyc5IgRXF1aXR5IChEZXRhaWxzIE5hcnJhdGl2ZSA2KQA_" id="xdx_902_ecustom--FairValueMarketPrice_iI_c20230930__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--IssuancesOfOptionsToOfficersAndDirectorsMember_z8tpYkyUczJ6">0.08</span></span></span><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">.</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 33.75pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 33.75pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">On June 30, 2023, the Company issued to directors and officers options to purchase <span class="xdx_phnt_RGlzY2xvc3VyZSAtIFN0b2NraG9sZGVyc5IgRXF1aXR5IChEZXRhaWxzIE5hcnJhdGl2ZSA2KQA_" id="xdx_908_eus-gaap--RestrictedStockSharesIssuedNetOfSharesForTaxWithholdings_c20230101__20230630__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--IssuancesOfOptionsToOfficersAndDirectorsMember_zhrYhOVf8h85">125,000 </span></span></span><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">shares of Common Stock at an exercise price of $<span class="xdx_phnt_RGlzY2xvc3VyZSAtIFN0b2NraG9sZGVyc5IgRXF1aXR5IChEZXRhaWxzIE5hcnJhdGl2ZSA2KQA_" id="xdx_903_eus-gaap--ShareBasedCompensationArrangementsByShareBasedPaymentAwardOptionsExercisesInPeriodWeightedAverageExercisePrice_c20230101__20230630__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--IssuancesOfOptionsToOfficersAndDirectorsMember_zTlIYHmGmSH6">0.23 </span></span></span><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">per share, which vests over a period of two years from the date of grant and expires on June 29, 2028. The Company determined the fair market value of these unvested options to be $<span class="xdx_phnt_RGlzY2xvc3VyZSAtIFN0b2NraG9sZGVyc5IgRXF1aXR5IChEZXRhaWxzIE5hcnJhdGl2ZSA2KQA_" id="xdx_900_ecustom--FairMarketValues_c20230101__20230630__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--IssuancesOfOptionsToOfficersAndDirectorsMember_z7dYtyeD6jOj">13,000</span></span></span><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">. For the three and nine months ended September 30, 2023, the Company recognized stock-based compensation expense of $<span class="xdx_phnt_RGlzY2xvc3VyZSAtIFN0b2NraG9sZGVyc5IgRXF1aXR5IChEZXRhaWxzIE5hcnJhdGl2ZSA2KQA_" id="xdx_90B_eus-gaap--EmployeeBenefitsAndShareBasedCompensation_c20230401__20230930__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--IssuancesOfOptionsToOfficersAndDirectorsMember__us-gaap--AwardTypeAxis__custom--JuneThirtyTwentyTwentyThreeMember_zhFOhjZKTNMc">1,625 </span></span></span><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">and $<span class="xdx_phnt_RGlzY2xvc3VyZSAtIFN0b2NraG9sZGVyc5IgRXF1aXR5IChEZXRhaWxzIE5hcnJhdGl2ZSA2KQA_" id="xdx_901_eus-gaap--EmployeeBenefitsAndShareBasedCompensation_c20230101__20230930__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--IssuancesOfOptionsToOfficersAndDirectorsMember__us-gaap--AwardTypeAxis__custom--JuneThirtyTwentyTwentyThreeMember_z1OUUOiC5Gs7">1,642</span></span></span><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">, respectively, based upon the fair value market price of $<span class="xdx_phnt_RGlzY2xvc3VyZSAtIFN0b2NraG9sZGVyc5IgRXF1aXR5IChEZXRhaWxzIE5hcnJhdGl2ZSA2KQA_" id="xdx_906_ecustom--FairValueMarketPrice_iI_c20230630__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--IssuancesOfOptionsToOfficersAndDirectorsMember_z5Pw6O2CTgZ">0.10</span></span></span><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">.</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 33.75pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 33.75pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">On March 31, 2023, the Company issued to directors and officers options to purchase <span class="xdx_phnt_RGlzY2xvc3VyZSAtIFN0b2NraG9sZGVyc5IgRXF1aXR5IChEZXRhaWxzIE5hcnJhdGl2ZSA2KQA_" id="xdx_901_eus-gaap--RestrictedStockSharesIssuedNetOfSharesForTaxWithholdings_c20230101__20230331__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--IssuancesOfOptionsToOfficersAndDirectorsMember_z22uWE961goe">150,000 </span></span></span><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">shares of Common Stock at an exercise price of $<span class="xdx_phnt_RGlzY2xvc3VyZSAtIFN0b2NraG9sZGVyc5IgRXF1aXR5IChEZXRhaWxzIE5hcnJhdGl2ZSA2KQA_" id="xdx_901_eus-gaap--ShareBasedCompensationArrangementsByShareBasedPaymentAwardOptionsExercisesInPeriodWeightedAverageExercisePrice_c20230101__20230331__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--IssuancesOfOptionsToOfficersAndDirectorsMember_zGC9jRLviQU">0.45 </span></span></span><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">per share, which vests over a period of two years from the date of grant, and expire on March 30, 2028. The Company determined the fair market value of these unvested options to be $<span class="xdx_phnt_RGlzY2xvc3VyZSAtIFN0b2NraG9sZGVyc5IgRXF1aXR5IChEZXRhaWxzIE5hcnJhdGl2ZSA2KQA_" id="xdx_90C_ecustom--FairMarketValues_c20230101__20230331__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--IssuancesOfOptionsToOfficersAndDirectorsMember_zpPRbxsGHByi">31,350</span></span></span><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">. For the three and nine months ended September 30, 2023, the Company recognized stock-based compensation expense of $<span class="xdx_phnt_RGlzY2xvc3VyZSAtIFN0b2NraG9sZGVyc5IgRXF1aXR5IChEZXRhaWxzIE5hcnJhdGl2ZSA2KQA_" id="xdx_90F_eus-gaap--EmployeeBenefitsAndShareBasedCompensation_c20230701__20230930__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--IssuancesOfOptionsToOfficersAndDirectorsMember__us-gaap--AwardTypeAxis__custom--MarchThirtyFirstTwentyTwentyThreeMember_zPdXLnU3EPW5">3,919 </span></span></span><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">and $<span class="xdx_phnt_RGlzY2xvc3VyZSAtIFN0b2NraG9sZGVyc5IgRXF1aXR5IChEZXRhaWxzIE5hcnJhdGl2ZSA2KQA_" id="xdx_90A_eus-gaap--EmployeeBenefitsAndShareBasedCompensation_c20230101__20230930__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--IssuancesOfOptionsToOfficersAndDirectorsMember__us-gaap--AwardTypeAxis__custom--MarchThirtyFirstTwentyTwentyThreeMember_zt4yXQcA5Jy2">7,880</span></span></span><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">, respectively, based upon the fair value market price of $<span class="xdx_phnt_RGlzY2xvc3VyZSAtIFN0b2NraG9sZGVyc5IgRXF1aXR5IChEZXRhaWxzIE5hcnJhdGl2ZSA2KQA_" id="xdx_907_ecustom--FairValueMarketPrice_iI_c20220930__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--IssuancesOfOptionsToOfficersAndDirectorsMember_zJUIZUUaYFa4">0.21</span></span></span><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">.</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i> </i></b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 33.75pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i>Cancellations of Options</i></b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b> </b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">For the three and nine months ended September 30, 2023, as a result of employee terminations and options expirations, stock options aggregating <span class="xdx_phnt_RGlzY2xvc3VyZSAtIFN0b2NraG9sZGVyc5IgRXF1aXR5IChEZXRhaWxzIE5hcnJhdGl2ZSA2KQA_" id="xdx_907_eus-gaap--StockRepurchasedDuringPeriodShares_c20230701__20230930__us-gaap--AwardTypeAxis__custom--CancellationsOfOptionsMember_zKRz6LCC3dra">51,250 </span></span></span><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">and <span class="xdx_phnt_RGlzY2xvc3VyZSAtIFN0b2NraG9sZGVyc5IgRXF1aXR5IChEZXRhaWxzIE5hcnJhdGl2ZSA2KQA_" id="xdx_905_eus-gaap--StockRepurchasedDuringPeriodShares_c20230101__20230930__us-gaap--AwardTypeAxis__custom--CancellationsOfOptionsMember_zWYcgo4ihoVb">108,499</span></span></span><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">, respectively, with fair market values of approximately $<span class="xdx_phnt_RGlzY2xvc3VyZSAtIFN0b2NraG9sZGVyc5IgRXF1aXR5IChEZXRhaWxzIE5hcnJhdGl2ZSA2KQA_" id="xdx_90B_ecustom--FairMarketValues_c20230701__20230930__us-gaap--AwardTypeAxis__custom--CancellationsOfOptionsMember_zf7BzT7Hn5qa">91,453 </span></span></span><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">and $<span class="xdx_phnt_RGlzY2xvc3VyZSAtIFN0b2NraG9sZGVyc5IgRXF1aXR5IChEZXRhaWxzIE5hcnJhdGl2ZSA2KQA_" id="xdx_90D_ecustom--FairMarketValues_c20230101__20230930__us-gaap--AwardTypeAxis__custom--CancellationsOfOptionsMember_zia8dHLonTVh">267,726</span></span></span><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">, respectively, were cancelled. For the three and nine months ended September 30, 2022, as a result of employee terminations and options expirations, stock options aggregating <span class="xdx_phnt_RGlzY2xvc3VyZSAtIFN0b2NraG9sZGVyc5IgRXF1aXR5IChEZXRhaWxzIE5hcnJhdGl2ZSA2KQA_" id="xdx_901_eus-gaap--StockRepurchasedDuringPeriodShares_c20220701__20220930__us-gaap--AwardTypeAxis__custom--CancellationsOfOptionsMember_zHEJ0dmHGkQ7">67,875 </span></span></span><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">and <span class="xdx_phnt_RGlzY2xvc3VyZSAtIFN0b2NraG9sZGVyc5IgRXF1aXR5IChEZXRhaWxzIE5hcnJhdGl2ZSA2KQA_" id="xdx_908_eus-gaap--StockRepurchasedDuringPeriodShares_c20220101__20220930__us-gaap--AwardTypeAxis__custom--CancellationsOfOptionsMember_zWk8DH4zSTw2">267,294</span></span></span><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">, respectively, with fair market values of approximately $<span class="xdx_phnt_RGlzY2xvc3VyZSAtIFN0b2NraG9sZGVyc5IgRXF1aXR5IChEZXRhaWxzIE5hcnJhdGl2ZSA2KQA_" id="xdx_906_ecustom--FairMarketValues_c20220701__20220930__us-gaap--AwardTypeAxis__custom--CancellationsOfOptionsMember_zvZUPOSWU49f">237,926 </span></span></span><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">and $<span class="xdx_phnt_RGlzY2xvc3VyZSAtIFN0b2NraG9sZGVyc5IgRXF1aXR5IChEZXRhaWxzIE5hcnJhdGl2ZSA2KQA_" id="xdx_902_ecustom--FairMarketValues_c20220101__20220930__us-gaap--AwardTypeAxis__custom--CancellationsOfOptionsMember_zJDmeH8sGcke">892,227</span></span></span><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">, respectively, were cancelled.</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b> </b></span></span></p> 16720000 0.25 25080000 0.38 4180000 P5Y6M 16720000 3817400 25080000 0.38 0.50 0.0499 0.0999 35000 10000 10000000 9920000 10000 16129032 0.62 1000 0.05 16129032 0.001 0.96 10000000 25000000 0.44 a down round or anti-dilution trigger event occurred resulting in the conversion rate on the Series F and the exercise price of the Series F Warrants issued with the Series F adjusting down to $0.44 from $ 0.62 0.96 565161 1680216 2245377 P3Y 1.50 0.0377 0 3000 2381 1000 0.42 7142715 0.42 3000000 3000 0.42 0.44 38226 217750 255976 P3Y 1.31 0.0446 0 0.42 0.25 787823 3867095 4654918 P2Y6M 1.06 0.0428 0 750 2588 3000000 7304762 49122 170277 1000 48351747 0.25 0.38 P3Y9M14D 4251151 1.04 1.18 4583341 141754 1927407 3000000 5319145 997338 997338 498669 498669 2812500 35000 185000 0.31 0.41 74350 142845 1125209 556837 3058741 -742 43302 97846 100487 <p id="xdx_898_eus-gaap--ScheduleOfShareBasedCompensationRestrictedStockUnitsAwardActivityTableTextBlock_gL3SOSBCRSUAA-PXI_za4fJWgXEbHf" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 33.75pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">For the nine months ended September 30, 2023, a summary of RSU activity is as follows:</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 33.75pt"> </p> <p style="font: 10pt Times New Roman, Times, Serif; display: none; margin: 0pt 0; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> <span id="xdx_8B2_zyw0kyFVJB31" style="display: none">Schedule of Restricted Stock Unit Activity</span></span></span></p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="font-family: Times New Roman, Times, Serif; vertical-align: bottom"> <td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; font-weight: bold; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; font-weight: bold; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">Shares</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; font-weight: bold"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; font-weight: bold; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; font-weight: bold; text-align: center"><p style="margin-top: 0; margin-bottom: 0"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">Weighted Average</span></span></p> <p style="margin-top: 0; margin-bottom: 0"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">Grant Date</span></span></p> <p style="margin-top: 0; margin-bottom: 0"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">Fair Value</span></span></p></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; font-weight: bold"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td></tr> <tr style="font-family: Times New Roman, Times, Serif; vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-family: Times New Roman, Times, Serif; width: 64%"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">Outstanding as of December 31, 2022</span></span></td><td style="font-family: Times New Roman, Times, Serif; width: 2%"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; width: 1%; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td id="xdx_98D_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsNonvestedNumber_iS_c20230101__20230930__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockUnitsRSUMember_zWwtzwn61aH5" style="font-family: Times New Roman, Times, Serif; width: 14%; text-align: right" title="Number of shares,Beginning"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">1,028,960</span></span></td><td style="font-family: Times New Roman, Times, Serif; width: 1%; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; width: 2%"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; width: 1%; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">$</span></span></td><td id="xdx_98F_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsNonvestedWeightedAverageGrantDateFairValue_iS_pid_c20230101__20230930__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockUnitsRSUMember_zfDpwYkliDV" style="font-family: Times New Roman, Times, Serif; width: 14%; text-align: right" title="Weighted average grant date fair value,Beginning"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">2.31</span></span></td><td style="font-family: Times New Roman, Times, Serif; width: 1%; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td></tr> <tr style="font-family: Times New Roman, Times, Serif; vertical-align: bottom; background-color: White"> <td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">Granted</span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td id="xdx_980_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsGrantsInPeriod_c20230101__20230930__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockUnitsRSUMember_zufXXVJxMyw4" style="font-family: Times New Roman, Times, Serif; text-align: right" title="Granted"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">2,000,645</span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td id="xdx_98D_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsGrantsInPeriodWeightedAverageGrantDateFairValue_pid_c20230101__20230930__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockUnitsRSUMember_zYb7YMBlLLSa" style="font-family: Times New Roman, Times, Serif; text-align: right" title="Weighted average grant date fair value,Granted"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">0.36</span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td></tr> <tr style="font-family: Times New Roman, Times, Serif; vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">Canceled</span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td id="xdx_98A_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsForfeitedInPeriod_iN_di_c20230101__20230930__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockUnitsRSUMember_zOmFirq7vLNc" style="font-family: Times New Roman, Times, Serif; text-align: right" title="Canceled"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">(152,253</span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">)</span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td id="xdx_98B_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsForfeituresWeightedAverageGrantDateFairValue_pid_c20230101__20230930__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockUnitsRSUMember_zDGiWPEdjQu1" style="font-family: Times New Roman, Times, Serif; text-align: right" title="Weighted average grant date fair value,Canceled"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">1.58</span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td></tr> <tr style="font-family: Times New Roman, Times, Serif; vertical-align: bottom; background-color: White"> <td style="font-family: Times New Roman, Times, Serif; text-align: left; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">Vested and released</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td id="xdx_987_ecustom--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsVestedAndReleasedInPeriod_iN_di_c20230101__20230930__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockUnitsRSUMember_zRprw76EiJu" style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: right" title="Vested and released"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">(387,456</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">)</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td id="xdx_986_ecustom--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsVestedAndReleasedWeightedAverageGrantDateFairValue_pid_c20230101__20230930__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockUnitsRSUMember_zPsc10zEEGkd" style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: right" title="Weighted average grant date fair value,Vested and released"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">0.38</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td></tr> <tr style="font-family: Times New Roman, Times, Serif; vertical-align: bottom; background-color: White"> <td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">Outstanding as of September 30, 2023</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="border-bottom: Black 2.5pt double; font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td id="xdx_98C_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsNonvestedNumber_iE_c20230101__20230930__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockUnitsRSUMember_zIG26Khb2eag" style="border-bottom: Black 2.5pt double; font-family: Times New Roman, Times, Serif; text-align: right" title="Number of shares,Ending"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">2,489,896</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="border-bottom: Black 2.5pt double; font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true">$</span></td><td id="xdx_98F_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsNonvestedWeightedAverageGrantDateFairValue_iE_pid_c20230101__20230930__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockUnitsRSUMember_zvTlvBeqhDO" style="border-bottom: Black 2.5pt double; font-family: Times New Roman, Times, Serif; text-align: right" title="Weighted average grant date fair value,Ending"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">1.08</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td></tr> <tr style="font-family: Times New Roman, Times, Serif; vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">Vested as of September 30, 2023</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="border-bottom: Black 2.5pt double; font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td id="xdx_980_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsVestedInPeriod_c20230101__20230930__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockUnitsRSUMember_zYYm6BbmSc12" style="border-bottom: Black 2.5pt double; font-family: Times New Roman, Times, Serif; text-align: right" title="Vested"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">2,070,174</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="border-bottom: Black 2.5pt double; font-family: Times New Roman, Times, Serif; text-align: left"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><span style="-sec-ix-redline: true">$</span></p></td><td id="xdx_98F_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsVestedInPeriodWeightedAverageGrantDateFairValue_pid_c20230101__20230930__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockUnitsRSUMember_zYvdk8ySS8Vd" style="border-bottom: Black 2.5pt double; font-family: Times New Roman, Times, Serif; text-align: right" title="Weighted average grant date fair value,Vested"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">1.01</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td></tr> <tr style="font-family: Times New Roman, Times, Serif; vertical-align: bottom; background-color: White"> <td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">Unvested as of September 30, 2023</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="border-bottom: Black 2.5pt double; font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td id="xdx_98D_ecustom--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsNonvestedInPeriod_c20230101__20230930__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockUnitsRSUMember_zCgLN0aDsPHe" style="border-bottom: Black 2.5pt double; font-family: Times New Roman, Times, Serif; text-align: right" title="Nonvested"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">419,722</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="border-bottom: Black 2.5pt double; font-family: Times New Roman, Times, Serif; text-align: left"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><span style="-sec-ix-redline: true">$</span></p> <span style="font-family: Times New Roman, Times, Serif"></span></td><td id="xdx_98A_ecustom--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsUnvestedInPeriodWeightedAverageGrantDateFairValue_pid_c20230101__20230930__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockUnitsRSUMember_zz7VEQKsRx3g" style="border-bottom: Black 2.5pt double; font-family: Times New Roman, Times, Serif; text-align: right" title="Weighted average grant date fair value,Unvested"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">1.43</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td></tr> </table> For the nine months ended September 30, 2022, a summary of RSU activity is as follows:<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 33.75pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <table cellpadding="0" cellspacing="0" id="xdx_307_134_zRBuempVn147" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%" summary="xdx: Disclosure - Schedule of Restricted Stock Unit Activity (Details)"> <tr style="font-family: Times New Roman, Times, Serif; vertical-align: bottom"> <td style="font-family: Times New Roman, Times, Serif; font-weight: bold; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; font-weight: bold; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; font-weight: bold; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">Shares</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; font-weight: bold"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; font-weight: bold; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; font-weight: bold; text-align: center"><p style="margin-top: 0; margin-bottom: 0"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">Weighted Average</span></span></p> <p style="margin-top: 0; margin-bottom: 0"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">Grant Date</span></span></p> <p style="margin-top: 0; margin-bottom: 0"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">Fair Value</span></span></p></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; font-weight: bold"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td></tr> <tr style="font-family: Times New Roman, Times, Serif; vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-family: Times New Roman, Times, Serif; width: 64%"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">Outstanding as of December 31, 2021</span></span></td><td style="font-family: Times New Roman, Times, Serif; width: 2%"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; width: 1%; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td id="xdx_989_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsNonvestedNumber_iS_c20220101__20220930__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockUnitsRSUMember_z7gbBdujEw0d" style="font-family: Times New Roman, Times, Serif; width: 14%; text-align: right" title="Number of shares,Beginning"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">1,147,250</span></span></td><td style="font-family: Times New Roman, Times, Serif; width: 1%; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; width: 2%"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; width: 1%; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">$</span></span></td><td id="xdx_98C_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsNonvestedWeightedAverageGrantDateFairValue_iS_pid_c20220101__20220930__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockUnitsRSUMember_zmZUxbql0bFd" style="font-family: Times New Roman, Times, Serif; width: 14%; text-align: right" title="Weighted average grant date fair value,Beginning"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">3.78</span></span></td><td style="font-family: Times New Roman, Times, Serif; width: 1%; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td></tr> <tr style="font-family: Times New Roman, Times, Serif; vertical-align: bottom; background-color: White"> <td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">Granted</span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td id="xdx_980_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsGrantsInPeriod_c20220101__20220930__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockUnitsRSUMember_z9OjO1hc5Zf1" style="font-family: Times New Roman, Times, Serif; text-align: right" title="Granted"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">457,091</span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td id="xdx_98B_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsGrantsInPeriodWeightedAverageGrantDateFairValue_pid_c20220101__20220930__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockUnitsRSUMember_zMs3RjiQf5qe" style="font-family: Times New Roman, Times, Serif; text-align: right" title="Weighted average grant date fair value,Granted"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">1.18</span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td></tr> <tr style="font-family: Times New Roman, Times, Serif; vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">Canceled</span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td id="xdx_986_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsForfeitedInPeriod_iN_di_c20220101__20220930__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockUnitsRSUMember_zgduOWivoahc" style="font-family: Times New Roman, Times, Serif; text-align: right" title="Canceled"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">(168,250</span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">)</span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td id="xdx_982_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsForfeituresWeightedAverageGrantDateFairValue_pid_c20220101__20220930__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockUnitsRSUMember_zlX6yuZJUBHe" style="font-family: Times New Roman, Times, Serif; text-align: right" title="Weighted average grant date fair value,Canceled"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">2.81</span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td></tr> <tr style="font-family: Times New Roman, Times, Serif; vertical-align: bottom; background-color: White"> <td style="font-family: Times New Roman, Times, Serif; text-align: left; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">Vested and released</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td id="xdx_989_ecustom--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsVestedAndReleasedInPeriod_iN_di_c20220101__20220930__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockUnitsRSUMember_z8GDWqvYjYm3" style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: right" title="Vested and released"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">(429,107</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">)</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td id="xdx_985_ecustom--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsVestedAndReleasedWeightedAverageGrantDateFairValue_pid_c20220101__20220930__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockUnitsRSUMember_z7TY2HpeCQ3b" style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: right" title="Weighted average grant date fair value,Vested and released"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">3.44</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td></tr> <tr style="font-family: Times New Roman, Times, Serif; vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">Outstanding as of September 30, 2022</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="border-bottom: Black 2.5pt double; font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td id="xdx_983_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsNonvestedNumber_iE_c20220101__20220930__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockUnitsRSUMember_zx7vC24rA3pj" style="border-bottom: Black 2.5pt double; font-family: Times New Roman, Times, Serif; text-align: right" title="Number of shares,Ending"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">1,006,984</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="border-bottom: Black 2.5pt double; font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">$</span></span></td><td id="xdx_983_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsNonvestedWeightedAverageGrantDateFairValue_iE_pid_c20220101__20220930__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockUnitsRSUMember_zstGNfa1UBMf" style="border-bottom: Black 2.5pt double; font-family: Times New Roman, Times, Serif; text-align: right" title="Weighted average grant date fair value,Ending"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">2.90</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td></tr> <tr style="font-family: Times New Roman, Times, Serif; vertical-align: bottom; background-color: White"> <td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">Vested as of September 30, 2022</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="border-bottom: Black 2.5pt double; font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td id="xdx_98E_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsVestedInPeriod_c20220101__20220930__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockUnitsRSUMember_zainrs3QV9oh" style="border-bottom: Black 2.5pt double; font-family: Times New Roman, Times, Serif; text-align: right" title="Vested"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">377,617</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="border-bottom: Black 2.5pt double; font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">$</span></span></td><td id="xdx_98F_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsVestedInPeriodWeightedAverageGrantDateFairValue_pid_c20220101__20220930__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockUnitsRSUMember_zmjjTQUMC3vf" style="border-bottom: Black 2.5pt double; font-family: Times New Roman, Times, Serif; text-align: right" title="Weighted average grant date fair value,Vested"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">3.72</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td></tr> <tr style="font-family: Times New Roman, Times, Serif; vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">Unvested as of September 30, 2022</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="border-bottom: Black 2.5pt double; font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td id="xdx_98A_ecustom--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsNonvestedInPeriod_c20220101__20220930__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockUnitsRSUMember_z4B3Foj0qFSa" style="border-bottom: Black 2.5pt double; font-family: Times New Roman, Times, Serif; text-align: right" title="Nonvested"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">629,367</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="border-bottom: Black 2.5pt double; font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">$</span></span></td><td id="xdx_981_ecustom--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsUnvestedInPeriodWeightedAverageGrantDateFairValue_pid_c20220101__20220930__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockUnitsRSUMember_zoQBx43zgca3" style="border-bottom: Black 2.5pt double; font-family: Times New Roman, Times, Serif; text-align: right" title="Weighted average grant date fair value,Unvested"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">2.41</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td></tr> </table> <b> </b> 1028960 2.31 2000645 0.36 152253 1.58 387456 0.38 2489896 1.08 2070174 1.01 419722 1.43 710769 86905 821321 72542 1147250 3.78 457091 1.18 168250 2.81 429107 3.44 1006984 2.90 377617 3.72 629367 2.41 538198 221925 1786517 540635 15000 45000 88235 264705 45000 30000 90000 15300 5100 968690 640000 60300 700205 0.17 0.42 <p id="xdx_89C_eus-gaap--ScheduleOfShareBasedCompensationStockOptionsActivityTableTextBlock_gL3SOSBCSOATT-QCQ_z4vcbhvU8p9k" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 33.75pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">For the nine months ended September 30, 2023, a summary of the options activity is as follows:</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 33.75pt"> </p> <p style="font: 10pt Times New Roman, Times, Serif; display: none; margin: 0pt 0; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> <span id="xdx_8B9_zPEY03dlaIYf" style="display: none">Summary of Options Activity</span></span></span></p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="font-family: Times New Roman, Times, Serif; vertical-align: bottom"> <td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; font-weight: bold; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; font-weight: bold; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">Shares</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; font-weight: bold"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; font-weight: bold; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; font-weight: bold; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">Weighted Average Exercise Price</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; font-weight: bold"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; font-weight: bold; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; font-weight: bold; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">Weighted Average Fair Value</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; font-weight: bold"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; font-weight: bold; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; font-weight: bold; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">Weighted Average Remaining Contractual Term (Years)</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; font-weight: bold"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; font-weight: bold; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; font-weight: bold; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">Aggregate Intrinsic Value</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; font-weight: bold"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td></tr> <tr style="font-family: Times New Roman, Times, Serif; vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-family: Times New Roman, Times, Serif; width: 35%"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">Outstanding as of December 31, 2022</span></span></td><td style="font-family: Times New Roman, Times, Serif; width: 2%"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; width: 1%; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td id="xdx_98B_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingNumber_iS_c20230101__20230930_zeGtybzQXbf7" style="font-family: Times New Roman, Times, Serif; width: 9%; text-align: right" title="Number of shares,Beginning"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">2,561,231</span></span></td><td style="font-family: Times New Roman, Times, Serif; width: 1%; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; width: 2%"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; width: 1%; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">$</span></span></td><td id="xdx_982_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingWeightedAverageExercisePrice_iS_c20230101__20230930_zcPwflolFcpk" style="font-family: Times New Roman, Times, Serif; width: 9%; text-align: right" title="Weighted average exercise price,Beginning"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">2.18</span></span></td><td style="font-family: Times New Roman, Times, Serif; width: 1%; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; width: 2%"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; width: 1%; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">$</span></span></td><td id="xdx_988_eus-gaap--SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsNonvestedWeightedAverageGrantDateFairValue_iS_c20230101__20230930_zgc9Nh4fy603" style="font-family: Times New Roman, Times, Serif; width: 9%; text-align: right" title="Weighted average fair value,Beginning"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">1.19</span></span></td><td style="font-family: Times New Roman, Times, Serif; width: 1%; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; width: 2%"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; width: 1%; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; width: 9%; text-align: right"><span style="-sec-ix-redline: true"><span id="xdx_90C_eus-gaap--SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsOutstandingWeightedAverageRemainingContractualTerm2_dtY_c20220101__20221231_zL5zlZzvGFNk" style="font-family: Times New Roman, Times, Serif">3.33</span></span></td><td style="font-family: Times New Roman, Times, Serif; width: 1%; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; width: 2%"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; width: 1%; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">$</span></span></td><td id="xdx_983_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingIntrinsicValue_iS_c20230101__20230930_zPpxX5QPd9wi" style="font-family: Times New Roman, Times, Serif; width: 9%; text-align: right" title="Aggregate intrinsic value, Beginning"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">31,124</span></span></td><td style="font-family: Times New Roman, Times, Serif; width: 1%; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td></tr> <tr style="font-family: Times New Roman, Times, Serif; vertical-align: bottom; background-color: White"> <td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">Granted</span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td id="xdx_982_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsGrantsInPeriodGross_c20230101__20230930_zz4HE96yy7w6" style="font-family: Times New Roman, Times, Serif; text-align: right" title="Number of shares,Granted"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">325,000</span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td id="xdx_98E_eus-gaap--ShareBasedCompensationArrangementsByShareBasedPaymentAwardOptionsGrantsInPeriodWeightedAverageExercisePrice_c20230101__20230930_z5GjyOXI3BBa" style="font-family: Times New Roman, Times, Serif; text-align: right" title="Weighted average exercise price,Granted"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">0.32</span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td id="xdx_982_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsGrantsInPeriodWeightedAverageGrantDateFairValue_c20230101__20230930_zTdJLMX00JV4" style="font-family: Times New Roman, Times, Serif; text-align: right" title="Weighted average fair value,Granted"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">0.15</span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span id="xdx_904_ecustom--SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsOutstandingWeightedAverageRemainingContractualTermGranted_dtY_c20230101__20230930_zrSVUH2pIMK4" style="font-family: Times New Roman, Times, Serif">3.02</span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">—</span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td></tr> <tr style="font-family: Times New Roman, Times, Serif; vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">Expired/Forfeited</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td id="xdx_984_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsForfeituresAndExpirationsInPeriod_iN_di_c20230101__20230930_z223rizsvKPa" style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: right" title="Number of shares,Expired/Forfeited"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">(108,499</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">)</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td id="xdx_98C_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsForfeituresAndExpirationsInPeriodWeightedAverageExercisePrice_c20230101__20230930_zYSh0leHmfv6" style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: right" title="Weighted average exercise price,Expired/Forfeited"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">4.46</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td id="xdx_98C_eus-gaap--SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsNonvestedOptionsForfeitedWeightedAverageGrantDateFairValue_c20230101__20230930_zfmA8XG4Fs2b" style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: right" title="Weighted average fair value,Expired/Forfeited"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">2.47</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">—</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">—</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td></tr> <tr style="font-family: Times New Roman, Times, Serif; vertical-align: bottom; background-color: White"> <td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">Outstanding as of September 30, 2023</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="border-bottom: Black 2.5pt double; font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td id="xdx_987_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingNumber_iE_c20230101__20230930_zAMCv7PLNmw9" style="border-bottom: Black 2.5pt double; font-family: Times New Roman, Times, Serif; text-align: right" title="Number of shares,Ending"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">2,777,732</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="border-bottom: Black 2.5pt double; font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">$</span></span></td><td style="border-bottom: Black 2.5pt double; font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">$<span id="xdx_907_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingWeightedAverageExercisePrice_iE_c20230101__20230930_zfktSSOhNYph">1.88</span></span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="border-bottom: Black 2.5pt double; font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">$</span></span></td><td id="xdx_98E_eus-gaap--SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsNonvestedWeightedAverageGrantDateFairValue_iE_c20230101__20230930_zmyw3Bwl6Yta" style="border-bottom: Black 2.5pt double; font-family: Times New Roman, Times, Serif; text-align: right" title="Weighted average fair value,Ending"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">1.02</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="border-bottom: Black 2.5pt double; font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="border-bottom: Black 2.5pt double; font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span id="xdx_905_eus-gaap--SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsOutstandingWeightedAverageRemainingContractualTerm2_dtY_c20230101__20230930_zm5OTTPcekQ7" style="font-family: Times New Roman, Times, Serif">2.84</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="border-bottom: Black 2.5pt double; font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">$</span></span></td><td id="xdx_981_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingIntrinsicValue_iE_c20230101__20230930_zTYhoDB7mjE9" style="border-bottom: Black 2.5pt double; font-family: Times New Roman, Times, Serif; text-align: right" title="Aggregate intrinsic value, Ending"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">6,194</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td></tr> <tr style="font-family: Times New Roman, Times, Serif; vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">Exercisable as of September 30, 2023</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="border-bottom: Black 2.5pt double; font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td id="xdx_98D_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsExercisableNumber_iI_c20230930_z9hy8B3QZbzd" style="border-bottom: Black 2.5pt double; font-family: Times New Roman, Times, Serif; text-align: right" title="Number of shares,Exercisable"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">2,297,691</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="border-bottom: Black 2.5pt double; font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">$</span></span></td><td id="xdx_98E_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsExercisableWeightedAverageExercisePrice_iI_c20230930_z6X16By2spE4" style="border-bottom: Black 2.5pt double; font-family: Times New Roman, Times, Serif; text-align: right" title="Weighted average exercise price,Exercisable"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">2.18</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="border-bottom: Black 2.5pt double; font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">$</span></span></td><td id="xdx_982_ecustom--SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsExercisableWeightedAverageFairValue_iI_c20230930_zmtB3QvBQMN" style="border-bottom: Black 2.5pt double; font-family: Times New Roman, Times, Serif; text-align: right" title="Weighted average fair value,Exercisable"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">1.18</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="border-bottom: Black 2.5pt double; font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="border-bottom: Black 2.5pt double; font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span id="xdx_902_eus-gaap--SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsExercisableWeightedAverageRemainingContractualTerm1_dtY_c20230101__20230930_zfR5w4wSc46d" style="font-family: Times New Roman, Times, Serif">2.53</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="border-bottom: Black 2.5pt double; font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">$</span></span></td><td id="xdx_98B_eus-gaap--SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsExercisableIntrinsicValue1_iI_c20230930_zIQUPINyXVkd" style="border-bottom: Black 2.5pt double; font-family: Times New Roman, Times, Serif; text-align: right" title="Aggregate intrinsic value, Exercisable"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">6,194</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td></tr> </table> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 33.75pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">For the nine months ended September 30, 2022, a summary of the options activity is as follows:</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <table cellpadding="0" cellspacing="0" id="xdx_30D_134_zIE6cXTTt5Nb" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%" summary="xdx: Disclosure - Summary of Options Activity (Details)"> <tr style="font-family: Times New Roman, Times, Serif; vertical-align: bottom"> <td style="font-family: Times New Roman, Times, Serif; font-weight: bold"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; font-weight: bold; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; font-weight: bold; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">Shares</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; font-weight: bold"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; font-weight: bold; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; font-weight: bold; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">Weighted Average Exercise Price</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; font-weight: bold"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; font-weight: bold; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; font-weight: bold; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">Weighted Average Fair Value</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; font-weight: bold"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; font-weight: bold; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; font-weight: bold; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">Weighted Average Remaining Contractual Term (Years)</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; font-weight: bold"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; font-weight: bold; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; font-weight: bold; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">Aggregate Intrinsic Value</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; font-weight: bold"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td></tr> <tr style="font-family: Times New Roman, Times, Serif; vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-family: Times New Roman, Times, Serif; width: 35%"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">Outstanding as of December 31, 2021</span></span></td><td style="font-family: Times New Roman, Times, Serif; width: 2%"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; width: 1%; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td id="xdx_986_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingNumber_iS_c20220101__20220930_zaM64vZxdXb7" style="font-family: Times New Roman, Times, Serif; width: 9%; text-align: right" title="Number of shares,Beginning"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">2,541,667</span></span></td><td style="font-family: Times New Roman, Times, Serif; width: 1%; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; width: 2%"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; width: 1%; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">$</span></span></td><td id="xdx_984_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingWeightedAverageExercisePrice_iS_c20220101__20220930_zpXEzPPoM7Cd" style="font-family: Times New Roman, Times, Serif; width: 9%; text-align: right" title="Weighted average exercise price,Beginning"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">2.88</span></span></td><td style="font-family: Times New Roman, Times, Serif; width: 1%; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; width: 2%"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; width: 1%; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">$</span></span></td><td id="xdx_98C_eus-gaap--SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsNonvestedWeightedAverageGrantDateFairValue_iS_c20220101__20220930_ziHMzmCnAfJf" style="font-family: Times New Roman, Times, Serif; width: 9%; text-align: right" title="Weighted average fair value,Beginning"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">1.57</span></span></td><td style="font-family: Times New Roman, Times, Serif; width: 1%; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; width: 2%"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; width: 1%; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; width: 9%; text-align: right"><span style="-sec-ix-redline: true"><span id="xdx_90B_eus-gaap--SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsOutstandingWeightedAverageRemainingContractualTerm2_dtY_c20210101__20211231_zbQ3RbvCGiYi" style="font-family: Times New Roman, Times, Serif">4.27</span></span></td><td style="font-family: Times New Roman, Times, Serif; width: 1%; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; width: 2%"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; width: 1%; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">$</span></span></td><td id="xdx_98E_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingIntrinsicValue_iS_c20220101__20220930_zFN9IeTidkpa" style="font-family: Times New Roman, Times, Serif; width: 9%; text-align: right" title="Aggregate intrinsic value, Beginning"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">1,244,029</span></span></td><td style="font-family: Times New Roman, Times, Serif; width: 1%; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td></tr> <tr style="font-family: Times New Roman, Times, Serif; vertical-align: bottom; background-color: White"> <td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">Granted</span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td id="xdx_985_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsGrantsInPeriodGross_c20220101__20220930_z9N1yQo5hbr8" style="font-family: Times New Roman, Times, Serif; text-align: right" title="Number of shares,Granted"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">395,000</span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td id="xdx_984_eus-gaap--ShareBasedCompensationArrangementsByShareBasedPaymentAwardOptionsGrantsInPeriodWeightedAverageExercisePrice_c20220101__20220930_z1sIVdfZ6RLb" style="font-family: Times New Roman, Times, Serif; text-align: right" title="Weighted average exercise price,Granted"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">0.76</span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td id="xdx_98B_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsGrantsInPeriodWeightedAverageGrantDateFairValue_c20220101__20220930_ztvt3FnxnJCj" style="font-family: Times New Roman, Times, Serif; text-align: right" title="Weighted average fair value,Granted"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">0.36</span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span id="xdx_90E_ecustom--SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsOutstandingWeightedAverageRemainingContractualTermGranted_dtY_c20220101__20220930_zs9g0GxO6Vlb" style="font-family: Times New Roman, Times, Serif">3.02</span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">—</span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td></tr> <tr style="font-family: Times New Roman, Times, Serif; vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">Exercised</span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td id="xdx_983_eus-gaap--StockIssuedDuringPeriodSharesStockOptionsExercised_iN_di_c20220101__20220930_zPzjtetT3k2j" style="font-family: Times New Roman, Times, Serif; text-align: right" title="Number of shares,Exercised"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">(185,000</span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">)</span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td id="xdx_988_eus-gaap--ShareBasedCompensationArrangementsByShareBasedPaymentAwardOptionsExercisesInPeriodWeightedAverageExercisePrice_c20220101__20220930_z8kseljNjyjg" style="font-family: Times New Roman, Times, Serif; text-align: right" title="Weighted average exercise price,Exercised"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">0.40</span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td id="xdx_98A_ecustom--SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsExercisedWeightedAverageGrantDateFairValue_c20220101__20220930_zBZ1RHJnZSx9" style="font-family: Times New Roman, Times, Serif; text-align: right" title="Weighted average fair value,Exercised"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">0.29</span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">—</span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td id="xdx_98A_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsExercisesInPeriodTotalIntrinsicValue_c20220101__20220930_zQquVjfCVRQ5" style="font-family: Times New Roman, Times, Serif; text-align: right" title="Aggregate intrinsic value, Exercised"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">10,750</span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td></tr> <tr style="font-family: Times New Roman, Times, Serif; vertical-align: bottom; background-color: White"> <td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">Expired/Forfeited</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td id="xdx_98A_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsForfeituresAndExpirationsInPeriod_iN_di_c20220101__20220930_zeN0EJzmLs95" style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: right" title="Number of shares,Expired/Forfeited"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">(267,294</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">)</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td id="xdx_980_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsForfeituresAndExpirationsInPeriodWeightedAverageExercisePrice_c20220101__20220930_zoJXBqon2syg" style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: right" title="Weighted average exercise price,Expired/Forfeited"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">6.22</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td id="xdx_98D_eus-gaap--SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsNonvestedOptionsForfeitedWeightedAverageGrantDateFairValue_c20220101__20220930_z9RutVt01ai7" style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: right" title="Weighted average fair value,Expired/Forfeited"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">3.34</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">—</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">—</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td></tr> <tr style="font-family: Times New Roman, Times, Serif; vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">Outstanding as of September 30, 2022</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="border-bottom: Black 2.5pt double; font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td id="xdx_984_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingNumber_iE_c20220101__20220930_zHzRHsgmrpDb" style="border-bottom: Black 2.5pt double; font-family: Times New Roman, Times, Serif; text-align: right" title="Number of shares,Ending"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">2,484,373</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="border-bottom: Black 2.5pt double; font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">$</span></span></td><td id="xdx_98B_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingWeightedAverageExercisePrice_iE_c20220101__20220930_zX1mAn0G6Zpk" style="border-bottom: Black 2.5pt double; font-family: Times New Roman, Times, Serif; text-align: right" title="Weighted average exercise price,Ending"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">2.37</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="border-bottom: Black 2.5pt double; font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">$</span></span></td><td id="xdx_98B_eus-gaap--SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsNonvestedWeightedAverageGrantDateFairValue_iE_c20220101__20220930_zqRN08Ocf9b7" style="border-bottom: Black 2.5pt double; font-family: Times New Roman, Times, Serif; text-align: right" title="Weighted average fair value,Ending"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">1.29</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="border-bottom: Black 2.5pt double; font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="border-bottom: Black 2.5pt double; font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span id="xdx_902_eus-gaap--SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsOutstandingWeightedAverageRemainingContractualTerm2_dtY_c20220101__20220930_zoFpDTgvN4k1" style="font-family: Times New Roman, Times, Serif">3.47</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="border-bottom: Black 2.5pt double; font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">$</span></span></td><td id="xdx_981_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingIntrinsicValue_iE_c20220101__20220930_zgyWwRSxvjN8" style="border-bottom: Black 2.5pt double; font-family: Times New Roman, Times, Serif; text-align: right" title="Aggregate intrinsic value, Ending"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">89,334</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td></tr> <tr style="font-family: Times New Roman, Times, Serif; vertical-align: bottom; background-color: White"> <td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">Exercisable as of September 30, 2022</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="border-bottom: Black 2.5pt double; font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td id="xdx_98D_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsExercisableNumber_iI_c20220930_zumhp5ciZJ4d" style="border-bottom: Black 2.5pt double; font-family: Times New Roman, Times, Serif; text-align: right" title="Number of shares,Exercisable"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">1,836,095</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="border-bottom: Black 2.5pt double; font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">$</span></span></td><td id="xdx_983_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsExercisableWeightedAverageExercisePrice_iI_c20220930_zoSVV6EEpdBh" style="border-bottom: Black 2.5pt double; font-family: Times New Roman, Times, Serif; text-align: right" title="Weighted average exercise price,Exercisable"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">2.42</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="border-bottom: Black 2.5pt double; font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">$</span></span></td><td id="xdx_98B_ecustom--SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsExercisableWeightedAverageFairValue_iI_c20220930_zbX88x4FFExa" style="border-bottom: Black 2.5pt double; font-family: Times New Roman, Times, Serif; text-align: right" title="Weighted average fair value,Exercisable"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">1.33</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="border-bottom: Black 2.5pt double; font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="border-bottom: Black 2.5pt double; font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span id="xdx_903_eus-gaap--SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsExercisableWeightedAverageRemainingContractualTerm1_dtY_c20220101__20220930_z2fijwhveOkk" style="font-family: Times New Roman, Times, Serif">3.16</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="border-bottom: Black 2.5pt double; font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">$</span></span></td><td id="xdx_981_eus-gaap--SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsExercisableIntrinsicValue1_iI_c20220930_zJ4P73MrfX28" style="border-bottom: Black 2.5pt double; font-family: Times New Roman, Times, Serif; text-align: right" title="Aggregate intrinsic value, Exercisable"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">89,334</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td></tr> </table>   2561231 2.18 1.19 P3Y3M29D 31124 325000 0.32 0.15 P3Y7D 108499 4.46 2.47 2777732 1.88 1.02 P2Y10M2D 6194 2297691 2.18 1.18 P2Y6M10D 6194 55940 303888 100971 2541667 2.88 1.57 P4Y3M7D 1244029 395000 0.76 0.36 P3Y7D 185000 0.40 0.29 10750 267294 6.22 3.34 2484373 2.37 1.29 P3Y5M19D 89334 1836095 2.42 1.33 P3Y1M28D 89334 345606 1272226 741497 <p id="xdx_89C_eus-gaap--ScheduleOfShareBasedPaymentAwardStockOptionsValuationAssumptionsTableTextBlock_zgtjwGIReRB1" style="font: 10pt Times New Roman, Times, Serif; display: none; margin: 0pt 0; text-align: justify; text-indent: 33.75pt"><span style="-sec-ix-redline: true"><span id="xdx_8B7_z67fg3HwaMn4" style="display: none; font-family: Times New Roman, Times, Serif; font-size: 10pt">Schedule of Significant Weighted Average Assumptions</span></span><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="display: none; font-family: Times New Roman, Times, Serif; vertical-align: bottom; background-color: White"> <td style="font-family: Times New Roman, Times, Serif; text-align: center"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: center; font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"> </span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: center"><span style="-sec-ix-redline: true"> </span></td><td id="xdx_494_20230101__20230930_zc3ve8dBwrge" style="font-family: Times New Roman, Times, Serif; text-align: center"><span style="-sec-ix-redline: true"> </span></td><td style="font-family: Times New Roman, Times, Serif; text-align: center"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: center; font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"> </span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: center"><span style="-sec-ix-redline: true"> </span></td><td id="xdx_49F_20220101__20220930_z0AzbMcBOpJl" style="font-family: Times New Roman, Times, Serif; text-align: center"><span style="-sec-ix-redline: true"> </span></td><td style="font-family: Times New Roman, Times, Serif; text-align: center"><span style="-sec-ix-redline: true"> </span></td></tr> <tr style="font-family: Times New Roman, Times, Serif; vertical-align: bottom"> <td style="font-family: Times New Roman, Times, Serif; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; font-weight: bold; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td colspan="6" style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; font-weight: bold; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">September 30,</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; font-weight: bold"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td></tr> <tr style="font-family: Times New Roman, Times, Serif; vertical-align: bottom"> <td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; font-weight: bold; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; font-weight: bold; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">2023</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; font-weight: bold"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; font-weight: bold; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; font-weight: bold; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">2022</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; font-weight: bold"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td></tr> <tr style="font-family: Times New Roman, Times, Serif; vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-family: Times New Roman, Times, Serif; width: 64%"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">Stock price</span></span></td><td style="font-family: Times New Roman, Times, Serif; width: 2%"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; width: 1%; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">$</span></span></td><td style="font-family: Times New Roman, Times, Serif; width: 14%; text-align: right"><span style="-sec-ix-redline: true"><span id="xdx_905_eus-gaap--SharePrice_iI_c20230930_zCw71SEHpWQ3" style="font-family: Times New Roman, Times, Serif">0.32</span></span></td><td style="font-family: Times New Roman, Times, Serif; width: 1%; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; width: 2%"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; width: 1%; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">$</span></span></td><td style="font-family: Times New Roman, Times, Serif; width: 14%; text-align: right"><span style="-sec-ix-redline: true"><span id="xdx_907_eus-gaap--SharePrice_iI_c20220930_z5upM0Qq23Hh" style="font-family: Times New Roman, Times, Serif">0.46</span></span></td><td style="font-family: Times New Roman, Times, Serif; width: 1%; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td></tr> <tr id="xdx_401_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExpectedDividendRate_dp_zuJyK6DEggcc" style="font-family: Times New Roman, Times, Serif; vertical-align: bottom; background-color: White"> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">Dividend yield</span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-hidden: xdx2ixbrl1627">—</span></span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">%</span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><span style="-sec-ix-hidden: xdx2ixbrl1628">—</span></span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">%</span></span></td></tr> <tr style="font-family: Times New Roman, Times, Serif; vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">Expected life (years)</span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span id="xdx_907_eus-gaap--SharebasedCompensationArrangementBySharebasedPaymentAwardFairValueAssumptionsExpectedTerm1_dtY_c20230101__20230930_zF0YNFJzt8yi" style="font-family: Times New Roman, Times, Serif">3.02</span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span id="xdx_905_eus-gaap--SharebasedCompensationArrangementBySharebasedPaymentAwardFairValueAssumptionsExpectedTerm1_dtY_c20220101__20220930_zAszKab9kL43" style="font-family: Times New Roman, Times, Serif">3.02</span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td></tr> <tr id="xdx_400_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExpectedVolatilityRate_dp_zLu3435L76I9" style="font-family: Times New Roman, Times, Serif; vertical-align: bottom; background-color: White"> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">Expected volatility</span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">63.64</span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">%</span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">69.84.</span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">%</span></span></td></tr> <tr id="xdx_407_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsRiskFreeInterestRate_dp_zeyDcCyIgs94" style="font-family: Times New Roman, Times, Serif; vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">Risk-free interest rate</span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">4.22</span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">%</span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">3.25</span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">%</span></span></td></tr> </table> 0.32 0.46 P3Y7D P3Y7D 0.6364 0.6984 0.0422 0.0325 50000 0.17 3750 5 0.08 125000 0.23 13000 1625 1642 0.10 150000 0.45 31350 3919 7880 0.21 51250 108499 91453 267726 67875 267294 237926 892227 <p id="xdx_80E_eus-gaap--OperatingLeasesOfLessorDisclosureTextBlock_z6vqg2DHZ0tj" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Note 8 – <span id="xdx_824_z6yl5BXDsBb3">Leases</span></b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i>Operating Leases</i></b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i> </i></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">In May 2023, the Company executed a sublease agreement for their facility located in Seattle, Washington; however, the Company remains the primary obligor under the original lease. The sublease commenced June 1, 2023 and requires a total of $<span id="xdx_902_ecustom--OperatingLeasesRentExpenseSubleaseRentals_c20230101__20230930_zGNoj9mfOUQ8">433,137 </span></span></span><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">rental payments over a thirty-two-month term. Due to the anticipated sublease income being less than the total rental payments required on the primary lease, we recorded an impairment charge on the right-of-use asset associated with this lease of $<span id="xdx_901_eus-gaap--OperatingLeaseImpairmentLoss_c20230101__20230930_zGqfgWGfhBgj">79,287 </span></span></span><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">which has been included on the accompanying condensed consolidated statements of operations and comprehensive income (loss) as a lease impairment charge which is included in “Impairment” on the accompanying condensed consolidated statement of operations and comprehensive loss (income). During the nine months ended September 30, 2023, we recognized $<span id="xdx_909_eus-gaap--OperatingLeaseLeaseIncome_c20230101__20230930_zRZZM9KRfEgf">24,284</span></span></span> <span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">of rental income on the straight-line basis as an offset to rent expenses within general and administrative expenses.</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>AGEAGLE AERIAL SYSTEMS INC. AND SUBSIDIARIES</b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS</b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2023 AND 2022</b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>(UNAUDITED)</b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b> </b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Note 8 – Leases – Continued</b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b> </b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 33.75pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">For the three and nine months ended September 30, 2023, and 2022, operating lease expense payments were $<span id="xdx_90F_eus-gaap--OperatingLeaseExpense_c20230701__20230930_ziW1x3weOKlk">267,745 </span></span></span><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">and $<span id="xdx_902_eus-gaap--OperatingLeaseExpense_c20230101__20230930_zO0BJK6xYre4">791,558</span></span></span><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">, respectively, and $<span id="xdx_908_eus-gaap--OperatingLeaseExpense_c20220701__20220930_zy5P6d8URngk">326,542</span></span></span> <span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">and $<span id="xdx_902_eus-gaap--OperatingLeaseExpense_c20220101__20220930_zOTkRxrZUsYd">1,254,893</span></span></span><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">, respectively. Operating lease expense payments are included in general and administrative expenses on the condensed consolidated statements of operations and comprehensive income (loss).</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 33.75pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p id="xdx_890_ecustom--ScheduleOfCompanyOperatingLeasesTableTextBlock_zMM80SH0Wrif" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 33.75pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">As of September 30, 2023 and December 31, 2022, balance sheet information related to the Company’s operating leases is as follows:</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 33.75pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; display: none; margin: 0pt 0; text-align: justify; text-indent: 33.75pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span><span id="xdx_8B1_zeTsTZ74orFc" style="display: none">Schedule of Company's Operating Leases</span></span></p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="font-family: Times New Roman, Times, Serif; vertical-align: bottom"> <td style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; font-weight: bold"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">Balance Sheet Location</span></span></td><td style="font-family: Times New Roman, Times, Serif; font-weight: bold; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td colspan="2" id="xdx_49F_20230930_ziMq1MHTjlIl" style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; font-weight: bold; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">September 30, 2023</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; font-weight: bold"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; font-weight: bold; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td colspan="2" id="xdx_493_20221231_zIzKdLT5FQgl" style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; font-weight: bold; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">December 31, 2022</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; font-weight: bold"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td></tr> <tr id="xdx_40C_eus-gaap--OperatingLeaseRightOfUseAsset_iI_ztTKJVO3JLul" style="font-family: Times New Roman, Times, Serif; vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-family: Times New Roman, Times, Serif; width: 60%; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">Right of use assets</span></span></td><td style="font-family: Times New Roman, Times, Serif; width: 2%"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; width: 1%; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">$</span></span></td><td style="font-family: Times New Roman, Times, Serif; width: 16%; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">3,498,051</span></span></td><td style="font-family: Times New Roman, Times, Serif; width: 1%; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; width: 2%"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; width: 1%; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">$</span></span></td><td style="font-family: Times New Roman, Times, Serif; width: 16%; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">3,952,317</span></span></td><td style="font-family: Times New Roman, Times, Serif; width: 1%; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td></tr> <tr id="xdx_403_eus-gaap--OperatingLeaseLiabilityCurrent_iI_zG2KMLfhhL85" style="font-family: Times New Roman, Times, Serif; vertical-align: bottom; background-color: White"> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">Current portion of lease liabilities</span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">$</span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">840,535</span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">$</span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">628,113</span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td></tr> <tr id="xdx_40F_eus-gaap--OperatingLeaseLiabilityNoncurrent_iI_zfccJn31o3e1" style="font-family: Times New Roman, Times, Serif; vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">Long-term portion lease liabilities</span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">$</span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">2,756,056</span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">$</span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">3,161,703</span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td></tr> </table> <p id="xdx_8AF_z2PkBG6k7YA8" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p id="xdx_89C_eus-gaap--LesseeOperatingLeaseLiabilityMaturityTableTextBlock_zYJ5DEOUgYKl" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">As of September 30, 2023, scheduled future maturities of the Company’s lease liabilities are as follows:</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </p> <p style="font: 10pt Times New Roman, Times, Serif; display: none; margin: 0pt 0; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span><span id="xdx_8B3_zxqDuGI9qVpf" style="display: none">Schedule of Future Maturities Lease Liabilities</span></span></p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="font-family: Times New Roman, Times, Serif; vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-family: Times New Roman, Times, Serif; text-align: left; font-weight: bold"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">Year Ending December 31,</span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td id="xdx_496_20230930_zVpzSezeuS8e" style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td></tr> <tr style="font-family: Times New Roman, Times, Serif; vertical-align: bottom; background-color: White"> <td style="font-family: Times New Roman, Times, Serif; text-align: left; width: 80%"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">2023 (rest of year)</span></span></td><td style="font-family: Times New Roman, Times, Serif; width: 2%"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; width: 1%; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">$</span></span></td><td id="xdx_984_eus-gaap--LesseeOperatingLeaseLiabilityPaymentsRemainderOfFiscalYear_c20230930_pp0p0" style="font-family: Times New Roman, Times, Serif; width: 16%; text-align: right" title="Remainder of Fiscal Year"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">312,009</span></span></td><td style="font-family: Times New Roman, Times, Serif; width: 1%; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td></tr> <tr style="font-family: Times New Roman, Times, Serif; vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">2024</span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td id="xdx_982_eus-gaap--LesseeOperatingLeaseLiabilityPaymentsDueNextTwelveMonths_c20230930_pp0p0" style="font-family: Times New Roman, Times, Serif; text-align: right" title="Year One"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">1,032,155</span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td></tr> <tr style="font-family: Times New Roman, Times, Serif; vertical-align: bottom; background-color: White"> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">2025</span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td id="xdx_985_eus-gaap--LesseeOperatingLeaseLiabilityPaymentsDueYearTwo_c20230930_pp0p0" style="font-family: Times New Roman, Times, Serif; text-align: right" title="Year Two"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">1,038,228</span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td></tr> <tr style="font-family: Times New Roman, Times, Serif; vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">2026</span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td id="xdx_988_eus-gaap--LesseeOperatingLeaseLiabilityPaymentsDueYearThree_c20230930_pp0p0" style="font-family: Times New Roman, Times, Serif; text-align: right" title="Year Three"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">816,405</span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td></tr> <tr style="font-family: Times New Roman, Times, Serif; vertical-align: bottom; background-color: White"> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">2027</span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td id="xdx_98A_eus-gaap--LesseeOperatingLeaseLiabilityPaymentsDueYearFour_c20230930_pp0p0" style="font-family: Times New Roman, Times, Serif; text-align: right" title="Year Four"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">730,781</span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td></tr> <tr style="font-family: Times New Roman, Times, Serif; vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-family: Times New Roman, Times, Serif; text-align: left; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">Thereafter</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td id="xdx_983_ecustom--LesseeOperatingLeaseLiabilityPaymentsDueAfterYearFour_iI_pp0p0_c20230930_zQXVKispB8Hf" style="font-family: Times New Roman, Times, Serif; text-align: right" title="After Year Four"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">182,695</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td></tr> <tr style="display: none; font-family: Times New Roman, Times, Serif; vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-family: Times New Roman, Times, Serif; text-align: left; padding-bottom: 1.5pt"> </td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt"> </td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"> </td><td id="xdx_980_eus-gaap--LesseeOperatingLeaseLiabilityPaymentsDueYearFive_c20230930_pp0p0" style="font-family: Times New Roman, Times, Serif; text-align: right" title="Year Five"><span style="-sec-ix-hidden: xdx2ixbrl1697">-</span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; text-align: left"> </td></tr> <tr style="display: none; font-family: Times New Roman, Times, Serif; vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-family: Times New Roman, Times, Serif; text-align: left; padding-bottom: 1.5pt"> </td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: left"> </td><td id="xdx_98C_eus-gaap--LesseeOperatingLeaseLiabilityPaymentsDueAfterYearFive_iI_pp0p0_c20230930_zAsZQW1XXUP" style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: right" title="After Year Five"><span style="-sec-ix-hidden: xdx2ixbrl1699">-</span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; text-align: left"> </td></tr> <tr id="xdx_40D_eus-gaap--OperatingLeaseLiability_iTI_mtOLLzALR_zNVzptcKNjuj" style="font-family: Times New Roman, Times, Serif; vertical-align: bottom; background-color: White"> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">Total future minimum lease payments, undiscounted</span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">4,112,273</span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td></tr> <tr id="xdx_40A_eus-gaap--LesseeOperatingLeaseLiabilityUndiscountedExcessAmount_iNI_di_zQFXJZji0Bz" style="font-family: Times New Roman, Times, Serif; vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-family: Times New Roman, Times, Serif; text-align: left; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">Less: Amount representing interest</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">(515,682</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">)</span></span></td></tr> <tr id="xdx_406_eus-gaap--LesseeOperatingLeaseLiabilityPaymentsDue_iTI_zGoic5c4Ihvb" style="font-family: Times New Roman, Times, Serif; vertical-align: bottom; background-color: White"> <td style="font-family: Times New Roman, Times, Serif; text-align: left; padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">Present value of future minimum lease payments</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="border-bottom: Black 2.5pt double; font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">$</span></span></td><td style="border-bottom: Black 2.5pt double; font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">3,596,591</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td></tr> <tr id="xdx_40B_eus-gaap--OperatingLeaseLiabilityCurrent_iI_zcj1jKka7DMg" style="font-family: Times New Roman, Times, Serif; vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-family: Times New Roman, Times, Serif; text-align: left; padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">Present value of future minimum lease payments – current</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="border-bottom: Black 2.5pt double; font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">$</span></span></td><td style="border-bottom: Black 2.5pt double; font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">840,535</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td></tr> <tr id="xdx_407_eus-gaap--OperatingLeaseLiabilityNoncurrent_iI_zLljI0sgqWW5" style="font-family: Times New Roman, Times, Serif; vertical-align: bottom; background-color: White"> <td style="font-family: Times New Roman, Times, Serif; text-align: left; padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">Present value of future minimum lease payments – long-term</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="border-bottom: Black 2.5pt double; font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">$</span></span></td><td style="border-bottom: Black 2.5pt double; font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">2,756,056</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td></tr> </table> <p id="xdx_8AE_zwJBwy0odVIf" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p id="xdx_898_ecustom--ScheduleOfWeightedAverageLeaseTermAndDiscountRateLeasesTableTextBlock_zy2EtHUkp313" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 33.75pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">As of September 30, 2023 and December 31, 2022, the weighted average lease-term and discount rate of the Company’s leases are as follows:</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 33.75pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; display: none; margin: 0pt 0; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span><span id="xdx_8BA_zSSrM0gwW2Mb" style="display: none">Schedule of Weighted Average Lease-term and Discount Rate Leases</span></span></p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="font-family: Times New Roman, Times, Serif; vertical-align: bottom"> <td style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; font-weight: bold"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">Other Information</span></span></td><td style="font-family: Times New Roman, Times, Serif; font-weight: bold; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; font-weight: bold; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">September 30, 2023</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; font-weight: bold"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; font-weight: bold; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; font-weight: bold; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">December 31, 2022</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; font-weight: bold"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td></tr> <tr style="font-family: Times New Roman, Times, Serif; vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-family: Times New Roman, Times, Serif; width: 60%; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">Weighted-average remaining lease terms (in years)</span></span></td><td style="font-family: Times New Roman, Times, Serif; width: 2%"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; width: 1%; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; width: 16%; text-align: right"><span style="-sec-ix-redline: true"><span id="xdx_901_eus-gaap--AcquiredFiniteLivedIntangibleAssetsWeightedAverageUsefulLife_dtY_c20230101__20230930_zFrrdXZNLYd7" style="font-family: Times New Roman, Times, Serif">4.1</span></span></td><td style="font-family: Times New Roman, Times, Serif; width: 1%; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; width: 2%"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; width: 1%; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; width: 16%; text-align: right"><span style="-sec-ix-redline: true"><span id="xdx_903_eus-gaap--AcquiredFiniteLivedIntangibleAssetsWeightedAverageUsefulLife_dtY_c20220101__20221231_zBmWCcZFACVg" style="font-family: Times New Roman, Times, Serif">4.8</span></span></td><td style="font-family: Times New Roman, Times, Serif; width: 1%; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td></tr> <tr style="font-family: Times New Roman, Times, Serif; vertical-align: bottom; background-color: White"> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">Weighted-average discount rate</span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td id="xdx_98B_eus-gaap--OperatingLeaseWeightedAverageDiscountRatePercent_iI_dp_uPure_c20230930_zgD8ixj7PBP6" style="font-family: Times New Roman, Times, Serif; text-align: right" title="Weighted-average discount rate"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">6.0</span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">%</span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td id="xdx_982_eus-gaap--OperatingLeaseWeightedAverageDiscountRatePercent_iI_dp_uPure_c20221231_zBFDbukC4kY" style="font-family: Times New Roman, Times, Serif; text-align: right" title="Weighted-average discount rate"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">6.0</span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">%</span></span></td></tr> </table> <p id="xdx_8A0_znN1KvdnW1g3" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p id="xdx_892_eus-gaap--ScheduleOfCashFlowSupplementalDisclosuresTableTextBlock_z2vtGwqkwCp2" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 33.75pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">For the three and nine months ended September 30, 2023 and 2022, supplemental cash flow information related to leases is as follows:</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 33.75pt"> </p> <p style="font: 10pt Times New Roman, Times, Serif; display: none; margin: 0pt 0; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span><span id="xdx_8BC_zRLOZy4DVul6" style="display: none">Schedule of Cash Flow Supplemental Information</span></span></p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="display: none; vertical-align: bottom"> <td style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; font-weight: bold"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">Other Information</span></span></td><td style="font-family: Times New Roman, Times, Serif; font-weight: bold; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td colspan="2" id="xdx_494_20230701__20230930_z3MCoObDUzGg" style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; font-weight: bold; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">2023</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; font-weight: bold"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; font-weight: bold; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td colspan="2" id="xdx_49B_20220701__20220930_zSloQcmhVeEa" style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; font-weight: bold; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">2022</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; font-weight: bold"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; font-weight: bold; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td colspan="2" id="xdx_495_20230101__20230930_z8DXB6jkxcA2" style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; font-weight: bold; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">2023</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; font-weight: bold"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; font-weight: bold; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td colspan="2" id="xdx_491_20220101__20220930_zvOzlXijGly4" style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; font-weight: bold; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">2022</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; font-weight: bold"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td></tr> <tr style="font-family: Times New Roman, Times, Serif; vertical-align: bottom"> <td style="font-family: Times New Roman, Times, Serif; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; font-weight: bold; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td colspan="6" style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; font-weight: bold; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">For the Three Months Ended<br/> September 30,</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; font-weight: bold"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; font-weight: bold; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td colspan="6" style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; font-weight: bold; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">For the Nine Months Ended<br/> September 30,</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; font-weight: bold"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td></tr> <tr style="font-family: Times New Roman, Times, Serif; vertical-align: bottom"> <td style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; font-weight: bold"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">Other Information</span></span></td><td style="font-family: Times New Roman, Times, Serif; font-weight: bold; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; font-weight: bold; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">2023</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; font-weight: bold"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; font-weight: bold; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; font-weight: bold; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">2022</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; font-weight: bold"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; font-weight: bold; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; font-weight: bold; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">2023</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; font-weight: bold"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; font-weight: bold; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; font-weight: bold; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">2022</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; font-weight: bold"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td></tr> <tr id="xdx_40A_ecustom--CashPaidForAmountsIncludedInMeasurementOfLiabilitiesOperatingCashFlowsForOperatingLeases_zvFZH2aSwVL4" style="font-family: Times New Roman, Times, Serif; vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-family: Times New Roman, Times, Serif; width: 40%; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">Cash paid for amounts included in the measurement of liabilities: Operating cash flows for operating leases</span></span></td><td style="font-family: Times New Roman, Times, Serif; width: 2%"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; width: 1%; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">$</span></span></td><td style="font-family: Times New Roman, Times, Serif; width: 11%; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">262,445</span></span></td><td style="font-family: Times New Roman, Times, Serif; width: 1%; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; width: 2%"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; width: 1%; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">$</span></span></td><td style="font-family: Times New Roman, Times, Serif; width: 11%; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">326,542</span></span></td><td style="font-family: Times New Roman, Times, Serif; width: 1%; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; width: 2%"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; width: 1%; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">$</span></span></td><td style="font-family: Times New Roman, Times, Serif; width: 11%; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">790,783</span></span></td><td style="font-family: Times New Roman, Times, Serif; width: 1%; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; width: 2%"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; width: 1%; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">$</span></span></td><td style="font-family: Times New Roman, Times, Serif; width: 11%; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">1,245,893</span></span></td><td style="font-family: Times New Roman, Times, Serif; width: 1%; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td></tr> </table> <p id="xdx_8A6_zIrRZA1w4o4f" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b> </b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>AGEAGLE AERIAL SYSTEMS INC. AND SUBSIDIARIES</b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS</b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2023 AND 2022</b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>(UNAUDITED)</b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b> </b></span></span></p> 433137 79287 24284 267745 791558 326542 1254893 <p id="xdx_890_ecustom--ScheduleOfCompanyOperatingLeasesTableTextBlock_zMM80SH0Wrif" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 33.75pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">As of September 30, 2023 and December 31, 2022, balance sheet information related to the Company’s operating leases is as follows:</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 33.75pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; display: none; margin: 0pt 0; text-align: justify; text-indent: 33.75pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span><span id="xdx_8B1_zeTsTZ74orFc" style="display: none">Schedule of Company's Operating Leases</span></span></p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="font-family: Times New Roman, Times, Serif; vertical-align: bottom"> <td style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; font-weight: bold"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">Balance Sheet Location</span></span></td><td style="font-family: Times New Roman, Times, Serif; font-weight: bold; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td colspan="2" id="xdx_49F_20230930_ziMq1MHTjlIl" style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; font-weight: bold; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">September 30, 2023</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; font-weight: bold"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; font-weight: bold; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td colspan="2" id="xdx_493_20221231_zIzKdLT5FQgl" style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; font-weight: bold; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">December 31, 2022</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; font-weight: bold"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td></tr> <tr id="xdx_40C_eus-gaap--OperatingLeaseRightOfUseAsset_iI_ztTKJVO3JLul" style="font-family: Times New Roman, Times, Serif; vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-family: Times New Roman, Times, Serif; width: 60%; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">Right of use assets</span></span></td><td style="font-family: Times New Roman, Times, Serif; width: 2%"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; width: 1%; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">$</span></span></td><td style="font-family: Times New Roman, Times, Serif; width: 16%; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">3,498,051</span></span></td><td style="font-family: Times New Roman, Times, Serif; width: 1%; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; width: 2%"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; width: 1%; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">$</span></span></td><td style="font-family: Times New Roman, Times, Serif; width: 16%; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">3,952,317</span></span></td><td style="font-family: Times New Roman, Times, Serif; width: 1%; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td></tr> <tr id="xdx_403_eus-gaap--OperatingLeaseLiabilityCurrent_iI_zG2KMLfhhL85" style="font-family: Times New Roman, Times, Serif; vertical-align: bottom; background-color: White"> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">Current portion of lease liabilities</span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">$</span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">840,535</span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">$</span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">628,113</span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td></tr> <tr id="xdx_40F_eus-gaap--OperatingLeaseLiabilityNoncurrent_iI_zfccJn31o3e1" style="font-family: Times New Roman, Times, Serif; vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">Long-term portion lease liabilities</span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">$</span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">2,756,056</span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">$</span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">3,161,703</span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td></tr> </table> 3498051 3952317 840535 628113 2756056 3161703 <p id="xdx_89C_eus-gaap--LesseeOperatingLeaseLiabilityMaturityTableTextBlock_zYJ5DEOUgYKl" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">As of September 30, 2023, scheduled future maturities of the Company’s lease liabilities are as follows:</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </p> <p style="font: 10pt Times New Roman, Times, Serif; display: none; margin: 0pt 0; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span><span id="xdx_8B3_zxqDuGI9qVpf" style="display: none">Schedule of Future Maturities Lease Liabilities</span></span></p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="font-family: Times New Roman, Times, Serif; vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-family: Times New Roman, Times, Serif; text-align: left; font-weight: bold"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">Year Ending December 31,</span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td id="xdx_496_20230930_zVpzSezeuS8e" style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td></tr> <tr style="font-family: Times New Roman, Times, Serif; vertical-align: bottom; background-color: White"> <td style="font-family: Times New Roman, Times, Serif; text-align: left; width: 80%"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">2023 (rest of year)</span></span></td><td style="font-family: Times New Roman, Times, Serif; width: 2%"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; width: 1%; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">$</span></span></td><td id="xdx_984_eus-gaap--LesseeOperatingLeaseLiabilityPaymentsRemainderOfFiscalYear_c20230930_pp0p0" style="font-family: Times New Roman, Times, Serif; width: 16%; text-align: right" title="Remainder of Fiscal Year"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">312,009</span></span></td><td style="font-family: Times New Roman, Times, Serif; width: 1%; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td></tr> <tr style="font-family: Times New Roman, Times, Serif; vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">2024</span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td id="xdx_982_eus-gaap--LesseeOperatingLeaseLiabilityPaymentsDueNextTwelveMonths_c20230930_pp0p0" style="font-family: Times New Roman, Times, Serif; text-align: right" title="Year One"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">1,032,155</span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td></tr> <tr style="font-family: Times New Roman, Times, Serif; vertical-align: bottom; background-color: White"> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">2025</span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td id="xdx_985_eus-gaap--LesseeOperatingLeaseLiabilityPaymentsDueYearTwo_c20230930_pp0p0" style="font-family: Times New Roman, Times, Serif; text-align: right" title="Year Two"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">1,038,228</span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td></tr> <tr style="font-family: Times New Roman, Times, Serif; vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">2026</span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td id="xdx_988_eus-gaap--LesseeOperatingLeaseLiabilityPaymentsDueYearThree_c20230930_pp0p0" style="font-family: Times New Roman, Times, Serif; text-align: right" title="Year Three"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">816,405</span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td></tr> <tr style="font-family: Times New Roman, Times, Serif; vertical-align: bottom; background-color: White"> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">2027</span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td id="xdx_98A_eus-gaap--LesseeOperatingLeaseLiabilityPaymentsDueYearFour_c20230930_pp0p0" style="font-family: Times New Roman, Times, Serif; text-align: right" title="Year Four"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">730,781</span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td></tr> <tr style="font-family: Times New Roman, Times, Serif; vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-family: Times New Roman, Times, Serif; text-align: left; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">Thereafter</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td id="xdx_983_ecustom--LesseeOperatingLeaseLiabilityPaymentsDueAfterYearFour_iI_pp0p0_c20230930_zQXVKispB8Hf" style="font-family: Times New Roman, Times, Serif; text-align: right" title="After Year Four"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">182,695</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td></tr> <tr style="display: none; font-family: Times New Roman, Times, Serif; vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-family: Times New Roman, Times, Serif; text-align: left; padding-bottom: 1.5pt"> </td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt"> </td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"> </td><td id="xdx_980_eus-gaap--LesseeOperatingLeaseLiabilityPaymentsDueYearFive_c20230930_pp0p0" style="font-family: Times New Roman, Times, Serif; text-align: right" title="Year Five"><span style="-sec-ix-hidden: xdx2ixbrl1697">-</span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; text-align: left"> </td></tr> <tr style="display: none; font-family: Times New Roman, Times, Serif; vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-family: Times New Roman, Times, Serif; text-align: left; padding-bottom: 1.5pt"> </td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: left"> </td><td id="xdx_98C_eus-gaap--LesseeOperatingLeaseLiabilityPaymentsDueAfterYearFive_iI_pp0p0_c20230930_zAsZQW1XXUP" style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: right" title="After Year Five"><span style="-sec-ix-hidden: xdx2ixbrl1699">-</span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; text-align: left"> </td></tr> <tr id="xdx_40D_eus-gaap--OperatingLeaseLiability_iTI_mtOLLzALR_zNVzptcKNjuj" style="font-family: Times New Roman, Times, Serif; vertical-align: bottom; background-color: White"> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">Total future minimum lease payments, undiscounted</span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">4,112,273</span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td></tr> <tr id="xdx_40A_eus-gaap--LesseeOperatingLeaseLiabilityUndiscountedExcessAmount_iNI_di_zQFXJZji0Bz" style="font-family: Times New Roman, Times, Serif; vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-family: Times New Roman, Times, Serif; text-align: left; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">Less: Amount representing interest</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">(515,682</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">)</span></span></td></tr> <tr id="xdx_406_eus-gaap--LesseeOperatingLeaseLiabilityPaymentsDue_iTI_zGoic5c4Ihvb" style="font-family: Times New Roman, Times, Serif; vertical-align: bottom; background-color: White"> <td style="font-family: Times New Roman, Times, Serif; text-align: left; padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">Present value of future minimum lease payments</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="border-bottom: Black 2.5pt double; font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">$</span></span></td><td style="border-bottom: Black 2.5pt double; font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">3,596,591</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td></tr> <tr id="xdx_40B_eus-gaap--OperatingLeaseLiabilityCurrent_iI_zcj1jKka7DMg" style="font-family: Times New Roman, Times, Serif; vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-family: Times New Roman, Times, Serif; text-align: left; padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">Present value of future minimum lease payments – current</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="border-bottom: Black 2.5pt double; font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">$</span></span></td><td style="border-bottom: Black 2.5pt double; font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">840,535</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td></tr> <tr id="xdx_407_eus-gaap--OperatingLeaseLiabilityNoncurrent_iI_zLljI0sgqWW5" style="font-family: Times New Roman, Times, Serif; vertical-align: bottom; background-color: White"> <td style="font-family: Times New Roman, Times, Serif; text-align: left; padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">Present value of future minimum lease payments – long-term</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="border-bottom: Black 2.5pt double; font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">$</span></span></td><td style="border-bottom: Black 2.5pt double; font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">2,756,056</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td></tr> </table> 312009 1032155 1038228 816405 730781 182695 4112273 515682 3596591 840535 2756056 <p id="xdx_898_ecustom--ScheduleOfWeightedAverageLeaseTermAndDiscountRateLeasesTableTextBlock_zy2EtHUkp313" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 33.75pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">As of September 30, 2023 and December 31, 2022, the weighted average lease-term and discount rate of the Company’s leases are as follows:</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 33.75pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; display: none; margin: 0pt 0; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span><span id="xdx_8BA_zSSrM0gwW2Mb" style="display: none">Schedule of Weighted Average Lease-term and Discount Rate Leases</span></span></p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="font-family: Times New Roman, Times, Serif; vertical-align: bottom"> <td style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; font-weight: bold"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">Other Information</span></span></td><td style="font-family: Times New Roman, Times, Serif; font-weight: bold; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; font-weight: bold; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">September 30, 2023</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; font-weight: bold"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; font-weight: bold; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; font-weight: bold; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">December 31, 2022</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; font-weight: bold"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td></tr> <tr style="font-family: Times New Roman, Times, Serif; vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-family: Times New Roman, Times, Serif; width: 60%; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">Weighted-average remaining lease terms (in years)</span></span></td><td style="font-family: Times New Roman, Times, Serif; width: 2%"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; width: 1%; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; width: 16%; text-align: right"><span style="-sec-ix-redline: true"><span id="xdx_901_eus-gaap--AcquiredFiniteLivedIntangibleAssetsWeightedAverageUsefulLife_dtY_c20230101__20230930_zFrrdXZNLYd7" style="font-family: Times New Roman, Times, Serif">4.1</span></span></td><td style="font-family: Times New Roman, Times, Serif; width: 1%; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; width: 2%"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; width: 1%; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; width: 16%; text-align: right"><span style="-sec-ix-redline: true"><span id="xdx_903_eus-gaap--AcquiredFiniteLivedIntangibleAssetsWeightedAverageUsefulLife_dtY_c20220101__20221231_zBmWCcZFACVg" style="font-family: Times New Roman, Times, Serif">4.8</span></span></td><td style="font-family: Times New Roman, Times, Serif; width: 1%; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td></tr> <tr style="font-family: Times New Roman, Times, Serif; vertical-align: bottom; background-color: White"> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">Weighted-average discount rate</span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td id="xdx_98B_eus-gaap--OperatingLeaseWeightedAverageDiscountRatePercent_iI_dp_uPure_c20230930_zgD8ixj7PBP6" style="font-family: Times New Roman, Times, Serif; text-align: right" title="Weighted-average discount rate"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">6.0</span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">%</span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td id="xdx_982_eus-gaap--OperatingLeaseWeightedAverageDiscountRatePercent_iI_dp_uPure_c20221231_zBFDbukC4kY" style="font-family: Times New Roman, Times, Serif; text-align: right" title="Weighted-average discount rate"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">6.0</span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">%</span></span></td></tr> </table> P4Y1M6D P4Y9M18D 0.060 0.060 <p id="xdx_892_eus-gaap--ScheduleOfCashFlowSupplementalDisclosuresTableTextBlock_z2vtGwqkwCp2" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 33.75pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">For the three and nine months ended September 30, 2023 and 2022, supplemental cash flow information related to leases is as follows:</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 33.75pt"> </p> <p style="font: 10pt Times New Roman, Times, Serif; display: none; margin: 0pt 0; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span><span id="xdx_8BC_zRLOZy4DVul6" style="display: none">Schedule of Cash Flow Supplemental Information</span></span></p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="display: none; vertical-align: bottom"> <td style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; font-weight: bold"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">Other Information</span></span></td><td style="font-family: Times New Roman, Times, Serif; font-weight: bold; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td colspan="2" id="xdx_494_20230701__20230930_z3MCoObDUzGg" style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; font-weight: bold; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">2023</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; font-weight: bold"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; font-weight: bold; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td colspan="2" id="xdx_49B_20220701__20220930_zSloQcmhVeEa" style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; font-weight: bold; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">2022</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; font-weight: bold"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; font-weight: bold; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td colspan="2" id="xdx_495_20230101__20230930_z8DXB6jkxcA2" style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; font-weight: bold; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">2023</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; font-weight: bold"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; font-weight: bold; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td colspan="2" id="xdx_491_20220101__20220930_zvOzlXijGly4" style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; font-weight: bold; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">2022</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; font-weight: bold"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td></tr> <tr style="font-family: Times New Roman, Times, Serif; vertical-align: bottom"> <td style="font-family: Times New Roman, Times, Serif; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; font-weight: bold; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td colspan="6" style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; font-weight: bold; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">For the Three Months Ended<br/> September 30,</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; font-weight: bold"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; font-weight: bold; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td colspan="6" style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; font-weight: bold; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">For the Nine Months Ended<br/> September 30,</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; font-weight: bold"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td></tr> <tr style="font-family: Times New Roman, Times, Serif; vertical-align: bottom"> <td style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; font-weight: bold"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">Other Information</span></span></td><td style="font-family: Times New Roman, Times, Serif; font-weight: bold; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; font-weight: bold; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">2023</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; font-weight: bold"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; font-weight: bold; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; font-weight: bold; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">2022</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; font-weight: bold"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; font-weight: bold; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; font-weight: bold; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">2023</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; font-weight: bold"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; font-weight: bold; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; font-weight: bold; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">2022</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; font-weight: bold"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td></tr> <tr id="xdx_40A_ecustom--CashPaidForAmountsIncludedInMeasurementOfLiabilitiesOperatingCashFlowsForOperatingLeases_zvFZH2aSwVL4" style="font-family: Times New Roman, Times, Serif; vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-family: Times New Roman, Times, Serif; width: 40%; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">Cash paid for amounts included in the measurement of liabilities: Operating cash flows for operating leases</span></span></td><td style="font-family: Times New Roman, Times, Serif; width: 2%"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; width: 1%; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">$</span></span></td><td style="font-family: Times New Roman, Times, Serif; width: 11%; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">262,445</span></span></td><td style="font-family: Times New Roman, Times, Serif; width: 1%; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; width: 2%"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; width: 1%; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">$</span></span></td><td style="font-family: Times New Roman, Times, Serif; width: 11%; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">326,542</span></span></td><td style="font-family: Times New Roman, Times, Serif; width: 1%; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; width: 2%"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; width: 1%; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">$</span></span></td><td style="font-family: Times New Roman, Times, Serif; width: 11%; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">790,783</span></span></td><td style="font-family: Times New Roman, Times, Serif; width: 1%; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; width: 2%"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; width: 1%; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">$</span></span></td><td style="font-family: Times New Roman, Times, Serif; width: 11%; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">1,245,893</span></span></td><td style="font-family: Times New Roman, Times, Serif; width: 1%; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td></tr> </table> 262445 326542 790783 1245893 <p id="xdx_803_eus-gaap--ProductWarrantyDisclosureTextBlock_zeihycwgQqC6" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Note 9 – <span id="xdx_82D_zyB0zUlfr9k8">Warrants</span></b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i>Warrants Issued</i></b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">On June 5, 2023, the Company entered into a Securities Purchase Agreement (the “Purchase Agreement”) with certain accredited and institutional investors (the “Investors”) pursuant to which the Company issued warrants to purchase up to <span id="xdx_901_eus-gaap--ClassOfWarrantOrRightNumberOfSecuritiesCalledByWarrantsOrRights_iI_c20230605__us-gaap--StatementEquityComponentsAxis__us-gaap--CommonStockMember__us-gaap--TypeOfArrangementAxis__custom--SecuritiesPurchaseAgreementMember_zZOvacxEeOHi" title="Common stock purchase of warrant">25,080,000 </span></span></span><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">shares of common stock (the “Warrants”), exercisable at $<span id="xdx_906_eus-gaap--ClassOfWarrantOrRightExercisePriceOfWarrantsOrRights1_iI_c20230605__us-gaap--StatementEquityComponentsAxis__us-gaap--CommonStockMember__us-gaap--TypeOfArrangementAxis__custom--SecuritiesPurchaseAgreementMember_z7jM8gYCRo4i" title="Exercise price">0.38</span> </span></span><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">per share (the “Offering”) (see Note 7 for further disclosures).</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 33.75pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 33.75pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">On March 9, 2023, the Company received an Investor Notice from Alpha (described above in Note 8) resulting in the issuance of a Common Stock warrant to purchase up to <span id="xdx_905_eus-gaap--ClassOfWarrantOrRightNumberOfSecuritiesCalledByWarrantsOrRights_iI_c20230309__us-gaap--StatementEquityComponentsAxis__us-gaap--CommonStockMember__us-gaap--TypeOfArrangementAxis__custom--SecuritiesPurchaseAgreementMember_zeG8DWyVreq4" title="Common stock purchase of warrant">7,142,715</span> </span></span><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">shares of Common Stock at the exercise price of $<span id="xdx_90D_eus-gaap--ClassOfWarrantOrRightExercisePriceOfWarrantsOrRights1_iI_c20230309__us-gaap--StatementEquityComponentsAxis__us-gaap--CommonStockMember__us-gaap--TypeOfArrangementAxis__custom--SecuritiesPurchaseAgreementMember_zId5a59B0Zxh" title="Exercise price">0.42</span> </span></span><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">per share warrant (the “Additional Warrant”) for an aggregate purchase price of $<span id="xdx_90E_eus-gaap--ProceedsFromWarrantExercises_c20230309__20230309__us-gaap--StatementEquityComponentsAxis__us-gaap--CommonStockMember__us-gaap--TypeOfArrangementAxis__custom--SecuritiesPurchaseAgreementMember_zay18Hx1EKI9" title="Additional gross proceeds">3,000,000</span></span></span><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">. The Additional Warrant is exercisable upon issuance and has a three-year term. On March 10, 2023, the Company issued and sold the Additional Series F Preferred along with the associated Additional Warrant. On June 5, 2023, upon entering the Purchase Agreement a Down Round was triggered reducing the exercise price of the Additional Warrant to $<span id="xdx_900_eus-gaap--WarrantExercisePriceDecrease_c20230605__20230605__us-gaap--StatementEquityComponentsAxis__us-gaap--CommonStockMember__us-gaap--TypeOfArrangementAxis__custom--SecuritiesPurchaseAgreementMember_z6Ga9twvHmhl" title="Reducing warrant price">0.25</span></span></span><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">.</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 33.75pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 33.75pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">On December 6, 2022, the Company entered into a Promissory Note Purchase Agreement (described above in Note 7), pursuant to which the Company issued the right to purchase up to <span id="xdx_905_eus-gaap--ClassOfWarrantOrRightNumberOfSecuritiesCalledByWarrantsOrRights_iI_c20221206__us-gaap--StatementEquityComponentsAxis__us-gaap--CommonStockMember__us-gaap--TypeOfArrangementAxis__custom--SecuritiesPurchaseAgreementMember_z3LOhgBb4sTg" title="Common stock purchase of warrant">5,000,000</span> </span></span><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">shares of Common Stock at an exercise price of $<span id="xdx_90D_eus-gaap--ClassOfWarrantOrRightExercisePriceOfWarrantsOrRights1_iI_c20221206__us-gaap--StatementEquityComponentsAxis__us-gaap--CommonStockMember__us-gaap--TypeOfArrangementAxis__custom--SecuritiesPurchaseAgreementMember_zVQ8sLgVIUD5" title="Exercise price">0.44</span> </span></span><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">per share (see Note 8 for further disclosures), subject to standard anti-dilution adjustments. The Promissory Note Warrant was not exercisable for the first six months after issuance and has a five-year term from the initial exercise date of June 6, 2023. <span style="background-color: white">On September 15, 2023, the Company and the Investor entered into a Warrant Exchange Agreement pursuant to which the Company has agreed to issue to the Investor <span id="xdx_90E_eus-gaap--DebtConversionConvertedInstrumentSharesIssued1_c20221206__20221206__us-gaap--StatementEquityComponentsAxis__us-gaap--CommonStockMember__us-gaap--TypeOfArrangementAxis__custom--SecuritiesPurchaseAgreementMember_zJ2choCTeh86" title="Shares issued for debt conversion">5,000,000</span> </span></span></span><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; background-color: white">shares of common stock in exchange for the Promissory Note Warrant. The Promissory Note Warrant has since been cancelled and is now no longer outstanding.</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 33.75pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 33.75pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">On June 26, 2022, the Company entered into a Securities Purchase Agreement (described above in Note 7) with Alpha. In connection with the Series F Agreement the Company issued a warrant to Alpha to purchase <span id="xdx_901_eus-gaap--ClassOfWarrantOrRightNumberOfSecuritiesCalledByWarrantsOrRights_iI_c20220626__us-gaap--StatementEquityComponentsAxis__us-gaap--CommonStockMember__us-gaap--TypeOfArrangementAxis__custom--SecuritiesPurchaseAgreementMember_zsJou702CSXa" title="Common stock purchase of warrant">16,129,032</span> </span></span><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">shares of Common Stock, par value $<span id="xdx_90F_eus-gaap--CommonStockParOrStatedValuePerShare_iI_c20220626__us-gaap--StatementEquityComponentsAxis__us-gaap--CommonStockMember__us-gaap--TypeOfArrangementAxis__custom--SecuritiesPurchaseAgreementMember_zK98s3Tagblk" title="Common stock par value">0.001</span> </span></span><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">per share Series F Warrant with an exercise price equal to $<span id="xdx_90F_eus-gaap--ClassOfWarrantOrRightExercisePriceOfWarrantsOrRights1_iI_c20220626__us-gaap--ClassOfWarrantOrRightAxis__custom--SeriesFWarrantsMember__us-gaap--TypeOfArrangementAxis__custom--SecuritiesPurchaseAgreementMember_zsAOoqY6kPS7" title="Exercise price">0.96</span></span></span><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">, subject to adjustment, per share of Common Stock. The Series F Warrants were not exercisable for the first six months after its issuance and have a three-year term from its initial exercise date of December 30, 2022. Upon the issuance of the <span id="xdx_90E_eus-gaap--StockIssuedDuringPeriodSharesNewIssues_c20220626__20220626__us-gaap--StatementEquityComponentsAxis__custom--CommonStockWarrantMember_zqsdwgMKjI1e" title="Common stock, shares, issued">5,000,000</span> </span></span><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">shares of Common Stock warrants at $<span id="xdx_90F_eus-gaap--SharePrice_iI_c20220626__us-gaap--StatementEquityComponentsAxis__custom--CommonStockWarrantMember_zLaJTRdIcDb3" title="Common stock, shares, issued">0.44</span> </span></span><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">per share, the Series F Warrant exercise price was reduced to $<span id="xdx_902_eus-gaap--WarrantExercisePriceDecrease_c20220626__20220626__us-gaap--ClassOfWarrantOrRightAxis__custom--SeriesFWarrantsMember_zgSMnCZADZz9" title="Warrant price">0.44</span></span></span><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">, the warrants were further reduced in March upon issuance of additional Series F Preferred shares to $<span id="xdx_903_eus-gaap--WarrantExercisePriceDecrease_c20220301__20220331__us-gaap--ClassOfWarrantOrRightAxis__custom--SeriesFWarrantsMember_zHZAjkz2RA0b" title="Warrant price">0.42</span> </span></span><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">and in June to $<span id="xdx_900_eus-gaap--WarrantExercisePriceDecrease_c20220601__20220630__us-gaap--ClassOfWarrantOrRightAxis__custom--SeriesFWarrantsMember_zsUKd9UH2DFi" title="Warrant price">0.25</span> </span></span><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">upon entering the Purchase Agreement (see Note 7 for explanation regarding the December, March and June Down Rounds along with any other further disclosures related to Series F Preferred Stock).</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p id="xdx_894_eus-gaap--ScheduleOfWeightedAverageNumberOfSharesTableTextBlock_ze6DbwJAwlBk" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 33.75pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">A summary of activity related to warrants for the periods presented is as follows:</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 33.75pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; display: none; margin: 0pt 0; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span><span id="xdx_8B6_zORKxTHkOVhk" style="display: none">Schedule of Summary of Activity Related to Warrants</span></span></p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="font-family: Times New Roman, Times, Serif; vertical-align: bottom"> <td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; font-weight: bold; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; font-weight: bold; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">Shares</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; font-weight: bold"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; font-weight: bold; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; font-weight: bold; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">Weighted Average Exercise Price</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; font-weight: bold"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; font-weight: bold; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; font-weight: bold; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">Weighted Average Remaining Contractual Term</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; font-weight: bold"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td></tr> <tr style="font-family: Times New Roman, Times, Serif; vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">Outstanding as of December 31, 2021</span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td id="xdx_98C_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardNonOptionEquityInstrumentsOutstandingNumber_iS_c20220101__20221231__us-gaap--StatementEquityComponentsAxis__us-gaap--WarrantMember_zSld7P7WNnN9" style="font-family: Times New Roman, Times, Serif; text-align: right" title="Warrants Outstanding, Beginning Balance"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-hidden: xdx2ixbrl1764">—</span></span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">$</span></span></td><td id="xdx_98E_ecustom--ShareBasedCompensationArrangementByShareBasedPaymentAwardNonOptionsOutstandingWeightedAverageExercisePrice_iS_c20220101__20221231__us-gaap--StatementEquityComponentsAxis__us-gaap--WarrantMember_fKg_____zlzC5hpmB9ud" style="font-family: Times New Roman, Times, Serif; text-align: right" title="Weighted Average Exercise Price Outstanding, Ending balance"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-hidden: xdx2ixbrl1766">—</span></span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">—</span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td></tr> <tr style="font-family: Times New Roman, Times, Serif; vertical-align: bottom; background-color: White"> <td style="font-family: Times New Roman, Times, Serif; padding-left: 10pt; width: 46%"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">Issued</span></span></td><td style="font-family: Times New Roman, Times, Serif; width: 2%"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; width: 1%; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td id="xdx_986_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardNonOptionEquityInstrumentsGranted_c20220101__20221231__us-gaap--StatementEquityComponentsAxis__us-gaap--WarrantMember_zlaxXd62axk4" style="font-family: Times New Roman, Times, Serif; width: 14%; text-align: right" title="Warrants Issued"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">21,129,032</span></span></td><td style="font-family: Times New Roman, Times, Serif; width: 1%; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; width: 2%"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; width: 1%; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td id="xdx_988_ecustom--ShareBasedCompensationArrangementsByShareBasedPaymentAwardNonOptionsGrantsInPeriodWeightedAverageExercisePriceOne_c20220101__20221231__us-gaap--StatementEquityComponentsAxis__us-gaap--WarrantMember_fKg_____zn06ctrgYXej" style="font-family: Times New Roman, Times, Serif; width: 14%; text-align: right" title="Weighted Average Exercise Price, Warrants Issued"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">0.29</span></span></td><td style="font-family: Times New Roman, Times, Serif; width: 1%; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">*</span></span></td><td style="font-family: Times New Roman, Times, Serif; width: 2%"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; width: 1%; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; width: 14%; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">—</span></span></td><td style="font-family: Times New Roman, Times, Serif; width: 1%; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td></tr> <tr style="font-family: Times New Roman, Times, Serif; vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-family: Times New Roman, Times, Serif; padding-left: 10pt; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">Exercised</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td id="xdx_98D_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardNonOptionEquityInstrumentsExercised_iN_di_c20220101__20221231__us-gaap--StatementEquityComponentsAxis__us-gaap--WarrantMember_zWxS4scqSORj" style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: right" title="Warrants Exercised"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-hidden: xdx2ixbrl1772">—</span></span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td id="xdx_98F_ecustom--ShareBasedCompensationArrangementsByShareBasedPaymentAwardNonOptionsExercisedInPeriodWeightedAverageExercisePrice_c20220101__20221231__us-gaap--StatementEquityComponentsAxis__us-gaap--WarrantMember_zee3MIhAUkDk" style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: right" title="Weighted Average Exercise Price, Warrants Issued"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-hidden: xdx2ixbrl1774">—</span></span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">—</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td></tr> <tr style="font-family: Times New Roman, Times, Serif; vertical-align: bottom; background-color: White"> <td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">Outstanding as of December 31, 2022</span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td id="xdx_98A_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardNonOptionEquityInstrumentsOutstandingNumber_iS_c20230101__20230930__us-gaap--StatementEquityComponentsAxis__us-gaap--WarrantMember_zbkGQxPuNth5" style="font-family: Times New Roman, Times, Serif; text-align: right" title="Warrants Outstanding, Beginning Balance"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">21,129,032</span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">$</span></span></td><td id="xdx_98F_ecustom--ShareBasedCompensationArrangementByShareBasedPaymentAwardNonOptionsOutstandingWeightedAverageExercisePriceOne_iS_c20230101__20230930__us-gaap--StatementEquityComponentsAxis__us-gaap--WarrantMember_fKg_____ze0fEBWJuUvk" style="font-family: Times New Roman, Times, Serif; text-align: right" title="Weighted Average Exercise Price Outstanding, Beginning balance"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">0.29</span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">*</span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">—</span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td></tr> <tr style="font-family: Times New Roman, Times, Serif; vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-family: Times New Roman, Times, Serif; padding-left: 10pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">Issued - March 2023</span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td id="xdx_98D_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardNonOptionEquityInstrumentsGranted_c20230101__20230930__us-gaap--StatementEquityComponentsAxis__us-gaap--WarrantMember__us-gaap--AwardDateAxis__custom--MarchTwoThousandTwentyThreeMember_zX1GV4BjK1Ca" style="font-family: Times New Roman, Times, Serif; text-align: right" title="Warrants Issued"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">7,142,715</span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td id="xdx_98F_ecustom--ShareBasedCompensationArrangementsByShareBasedPaymentAwardNonOptionsGrantsInPeriodWeightedAverageExercisePrice_c20230101__20230930__us-gaap--StatementEquityComponentsAxis__us-gaap--WarrantMember__us-gaap--AwardDateAxis__custom--MarchTwoThousandTwentyThreeMember_fKg_____zZccrYmhIwce" style="font-family: Times New Roman, Times, Serif; text-align: right" title="Weighted Average Exercise Price, Warrants Issued"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">0.25</span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">*</span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">—</span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td></tr> <tr style="font-family: Times New Roman, Times, Serif; vertical-align: bottom; background-color: White"> <td style="font-family: Times New Roman, Times, Serif; padding-left: 10pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">Issued - June 2023</span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td id="xdx_987_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardNonOptionEquityInstrumentsGranted_c20230101__20230930__us-gaap--StatementEquityComponentsAxis__us-gaap--WarrantMember__us-gaap--AwardDateAxis__custom--JuneTwoThousandTwentyThreeMember_zqWlsDVLfa8e" style="font-family: Times New Roman, Times, Serif; text-align: right" title="Warrants Issued"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">25,080,000</span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td id="xdx_983_ecustom--ShareBasedCompensationArrangementsByShareBasedPaymentAwardNonOptionsGrantsInPeriodWeightedAverageExercisePrice_c20230101__20230930__us-gaap--StatementEquityComponentsAxis__us-gaap--WarrantMember__us-gaap--AwardDateAxis__custom--JuneTwoThousandTwentyThreeMember_zwmGfD58HO2h" style="font-family: Times New Roman, Times, Serif; text-align: right" title="Weighted Average Exercise Price, Warrants Issued"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">0.38</span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">—</span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td></tr> <tr style="font-family: Times New Roman, Times, Serif; vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">Exercised</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td id="xdx_989_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardNonOptionEquityInstrumentsExercised_iN_di_c20230101__20230930__us-gaap--StatementEquityComponentsAxis__us-gaap--WarrantMember_zRKVPI4WeXgd" style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: right" title="Warrants Exercised"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">(5,000,000</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">)</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td id="xdx_98F_ecustom--ShareBasedCompensationArrangementsByShareBasedPaymentAwardNonOptionsExercisedInPeriodWeightedAverageExercisePrice_c20230101__20230930__us-gaap--StatementEquityComponentsAxis__us-gaap--WarrantMember_zkHP24kdqzx6" style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: right" title="Exercise price"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">0.44</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">—</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td></tr> <tr style="font-family: Times New Roman, Times, Serif; vertical-align: bottom; background-color: White"> <td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">Outstanding as of September 30, 2023</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td id="xdx_98F_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardNonOptionEquityInstrumentsOutstandingNumber_iE_c20230101__20230930__us-gaap--StatementEquityComponentsAxis__us-gaap--WarrantMember_zlhUi35o2M7f" style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: right" title="Warrants Outstanding, Beginning Balance"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">48,351,747</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td id="xdx_982_ecustom--ShareBasedCompensationArrangementByShareBasedPaymentAwardNonOptionsOutstandingWeightedAverageExercisePrice_iE_c20230101__20230930__us-gaap--StatementEquityComponentsAxis__us-gaap--WarrantMember_fKg_____zaOVk7GMKmh9" style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: right" title="Weighted Average Exercise Price Outstanding, Ending balance"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">0.32</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">*</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span id="xdx_908_ecustom--SharebasedCompensationArrangementBySharebasedPaymentAwardNonOptionsOutstandingWeightedAverageRemainingContractualTerm_dtY0_c20230101__20230930__us-gaap--StatementEquityComponentsAxis__us-gaap--WarrantMember_zxV8c5lFC" style="font-family: Times New Roman, Times, Serif">3.81</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td></tr> <tr style="font-family: Times New Roman, Times, Serif; vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">Exercisable as of September 30, 2023</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="border-bottom: Black 2.5pt double; font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td id="xdx_98D_ecustom--ShareBasedCompensationArrangementByShareBasedPaymentAwardNonOptionEquityInstrumentsExercisableNumber_iE_c20230101__20230930__us-gaap--StatementEquityComponentsAxis__us-gaap--WarrantMember_zkQhz3BP34T8" style="border-bottom: Black 2.5pt double; font-family: Times New Roman, Times, Serif; text-align: right" title="Warrants Exercisable at end"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">23,271,747</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="border-bottom: Black 2.5pt double; font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td id="xdx_986_ecustom--ShareBasedCompensationArrangementByShareBasedPaymentAwardNonOptionsExercisableWeightedAverageExercisePrice_iE_c20230101__20230930__us-gaap--StatementEquityComponentsAxis__us-gaap--WarrantMember_fKg_____zS2fXvMZGxrb" style="border-bottom: Black 2.5pt double; font-family: Times New Roman, Times, Serif; text-align: right" title="Weighted Average Exercise Price, Warrants Exercise price"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">0.25</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">*</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="border-bottom: Black 2.5pt double; font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="border-bottom: Black 2.5pt double; font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span id="xdx_906_ecustom--SharebasedCompensationArrangementBySharebasedPaymentAwardNonOptionsExercisableWeightedAverageRemainingContractualTerm_dtY0_c20230101__20230930__us-gaap--StatementEquityComponentsAxis__us-gaap--WarrantMember_zW0l0DLXYFDf" style="font-family: Times New Roman, Times, Serif">2.31</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td></tr> </table> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%"> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif; width: 0.25in; text-align: right"><span style="-sec-ix-redline: true"><span id="xdx_F02_z8x0feKxSNUl" style="font-family: Times New Roman, Times, Serif; font-size: 10pt">*</span></span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><span style="-sec-ix-redline: true"><span id="xdx_F1B_zMXbuaQuyzHa" style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Reflects the exercise price after the Down Round Trigger events on December 6, 2022, March 9, 2023, and June 6, 2023 (see Note 7).</span></span></td></tr> </table> <p id="xdx_8A4_zYOoFgnBGEI7" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">As of September 30, 2023, the intrinsic value of the warrants was <span id="xdx_903_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsGrantsInPeriodIntrinsicValue_dxL_c20230101__20230930_zYI5gK6BmX3j" title="::XDX::-"><span style="-sec-ix-hidden: xdx2ixbrl1802">nil</span></span></span></span><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">.</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b> </b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b> </b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>AGEAGLE AERIAL SYSTEMS INC. AND SUBSIDIARIES</b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS</b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2023 AND 2022</b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>(UNAUDITED)</b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b> </b></span></span></p> 25080000 0.38 7142715 0.42 3000000 0.25 5000000 0.44 5000000 16129032 0.001 0.96 5000000 0.44 0.44 0.42 0.25 <p id="xdx_894_eus-gaap--ScheduleOfWeightedAverageNumberOfSharesTableTextBlock_ze6DbwJAwlBk" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 33.75pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">A summary of activity related to warrants for the periods presented is as follows:</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 33.75pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; display: none; margin: 0pt 0; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span><span id="xdx_8B6_zORKxTHkOVhk" style="display: none">Schedule of Summary of Activity Related to Warrants</span></span></p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="font-family: Times New Roman, Times, Serif; vertical-align: bottom"> <td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; font-weight: bold; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; font-weight: bold; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">Shares</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; font-weight: bold"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; font-weight: bold; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; font-weight: bold; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">Weighted Average Exercise Price</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; font-weight: bold"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; font-weight: bold; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; font-weight: bold; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">Weighted Average Remaining Contractual Term</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; font-weight: bold"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td></tr> <tr style="font-family: Times New Roman, Times, Serif; vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">Outstanding as of December 31, 2021</span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td id="xdx_98C_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardNonOptionEquityInstrumentsOutstandingNumber_iS_c20220101__20221231__us-gaap--StatementEquityComponentsAxis__us-gaap--WarrantMember_zSld7P7WNnN9" style="font-family: Times New Roman, Times, Serif; text-align: right" title="Warrants Outstanding, Beginning Balance"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-hidden: xdx2ixbrl1764">—</span></span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">$</span></span></td><td id="xdx_98E_ecustom--ShareBasedCompensationArrangementByShareBasedPaymentAwardNonOptionsOutstandingWeightedAverageExercisePrice_iS_c20220101__20221231__us-gaap--StatementEquityComponentsAxis__us-gaap--WarrantMember_fKg_____zlzC5hpmB9ud" style="font-family: Times New Roman, Times, Serif; text-align: right" title="Weighted Average Exercise Price Outstanding, Ending balance"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-hidden: xdx2ixbrl1766">—</span></span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">—</span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td></tr> <tr style="font-family: Times New Roman, Times, Serif; vertical-align: bottom; background-color: White"> <td style="font-family: Times New Roman, Times, Serif; padding-left: 10pt; width: 46%"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">Issued</span></span></td><td style="font-family: Times New Roman, Times, Serif; width: 2%"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; width: 1%; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td id="xdx_986_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardNonOptionEquityInstrumentsGranted_c20220101__20221231__us-gaap--StatementEquityComponentsAxis__us-gaap--WarrantMember_zlaxXd62axk4" style="font-family: Times New Roman, Times, Serif; width: 14%; text-align: right" title="Warrants Issued"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">21,129,032</span></span></td><td style="font-family: Times New Roman, Times, Serif; width: 1%; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; width: 2%"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; width: 1%; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td id="xdx_988_ecustom--ShareBasedCompensationArrangementsByShareBasedPaymentAwardNonOptionsGrantsInPeriodWeightedAverageExercisePriceOne_c20220101__20221231__us-gaap--StatementEquityComponentsAxis__us-gaap--WarrantMember_fKg_____zn06ctrgYXej" style="font-family: Times New Roman, Times, Serif; width: 14%; text-align: right" title="Weighted Average Exercise Price, Warrants Issued"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">0.29</span></span></td><td style="font-family: Times New Roman, Times, Serif; width: 1%; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">*</span></span></td><td style="font-family: Times New Roman, Times, Serif; width: 2%"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; width: 1%; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; width: 14%; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">—</span></span></td><td style="font-family: Times New Roman, Times, Serif; width: 1%; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td></tr> <tr style="font-family: Times New Roman, Times, Serif; vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-family: Times New Roman, Times, Serif; padding-left: 10pt; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">Exercised</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td id="xdx_98D_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardNonOptionEquityInstrumentsExercised_iN_di_c20220101__20221231__us-gaap--StatementEquityComponentsAxis__us-gaap--WarrantMember_zWxS4scqSORj" style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: right" title="Warrants Exercised"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-hidden: xdx2ixbrl1772">—</span></span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td id="xdx_98F_ecustom--ShareBasedCompensationArrangementsByShareBasedPaymentAwardNonOptionsExercisedInPeriodWeightedAverageExercisePrice_c20220101__20221231__us-gaap--StatementEquityComponentsAxis__us-gaap--WarrantMember_zee3MIhAUkDk" style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: right" title="Weighted Average Exercise Price, Warrants Issued"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-hidden: xdx2ixbrl1774">—</span></span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">—</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td></tr> <tr style="font-family: Times New Roman, Times, Serif; vertical-align: bottom; background-color: White"> <td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">Outstanding as of December 31, 2022</span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td id="xdx_98A_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardNonOptionEquityInstrumentsOutstandingNumber_iS_c20230101__20230930__us-gaap--StatementEquityComponentsAxis__us-gaap--WarrantMember_zbkGQxPuNth5" style="font-family: Times New Roman, Times, Serif; text-align: right" title="Warrants Outstanding, Beginning Balance"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">21,129,032</span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">$</span></span></td><td id="xdx_98F_ecustom--ShareBasedCompensationArrangementByShareBasedPaymentAwardNonOptionsOutstandingWeightedAverageExercisePriceOne_iS_c20230101__20230930__us-gaap--StatementEquityComponentsAxis__us-gaap--WarrantMember_fKg_____ze0fEBWJuUvk" style="font-family: Times New Roman, Times, Serif; text-align: right" title="Weighted Average Exercise Price Outstanding, Beginning balance"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">0.29</span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">*</span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">—</span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td></tr> <tr style="font-family: Times New Roman, Times, Serif; vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-family: Times New Roman, Times, Serif; padding-left: 10pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">Issued - March 2023</span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td id="xdx_98D_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardNonOptionEquityInstrumentsGranted_c20230101__20230930__us-gaap--StatementEquityComponentsAxis__us-gaap--WarrantMember__us-gaap--AwardDateAxis__custom--MarchTwoThousandTwentyThreeMember_zX1GV4BjK1Ca" style="font-family: Times New Roman, Times, Serif; text-align: right" title="Warrants Issued"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">7,142,715</span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td id="xdx_98F_ecustom--ShareBasedCompensationArrangementsByShareBasedPaymentAwardNonOptionsGrantsInPeriodWeightedAverageExercisePrice_c20230101__20230930__us-gaap--StatementEquityComponentsAxis__us-gaap--WarrantMember__us-gaap--AwardDateAxis__custom--MarchTwoThousandTwentyThreeMember_fKg_____zZccrYmhIwce" style="font-family: Times New Roman, Times, Serif; text-align: right" title="Weighted Average Exercise Price, Warrants Issued"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">0.25</span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">*</span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">—</span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td></tr> <tr style="font-family: Times New Roman, Times, Serif; vertical-align: bottom; background-color: White"> <td style="font-family: Times New Roman, Times, Serif; padding-left: 10pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">Issued - June 2023</span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td id="xdx_987_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardNonOptionEquityInstrumentsGranted_c20230101__20230930__us-gaap--StatementEquityComponentsAxis__us-gaap--WarrantMember__us-gaap--AwardDateAxis__custom--JuneTwoThousandTwentyThreeMember_zqWlsDVLfa8e" style="font-family: Times New Roman, Times, Serif; text-align: right" title="Warrants Issued"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">25,080,000</span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td id="xdx_983_ecustom--ShareBasedCompensationArrangementsByShareBasedPaymentAwardNonOptionsGrantsInPeriodWeightedAverageExercisePrice_c20230101__20230930__us-gaap--StatementEquityComponentsAxis__us-gaap--WarrantMember__us-gaap--AwardDateAxis__custom--JuneTwoThousandTwentyThreeMember_zwmGfD58HO2h" style="font-family: Times New Roman, Times, Serif; text-align: right" title="Weighted Average Exercise Price, Warrants Issued"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">0.38</span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">—</span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td></tr> <tr style="font-family: Times New Roman, Times, Serif; vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">Exercised</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td id="xdx_989_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardNonOptionEquityInstrumentsExercised_iN_di_c20230101__20230930__us-gaap--StatementEquityComponentsAxis__us-gaap--WarrantMember_zRKVPI4WeXgd" style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: right" title="Warrants Exercised"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">(5,000,000</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">)</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td id="xdx_98F_ecustom--ShareBasedCompensationArrangementsByShareBasedPaymentAwardNonOptionsExercisedInPeriodWeightedAverageExercisePrice_c20230101__20230930__us-gaap--StatementEquityComponentsAxis__us-gaap--WarrantMember_zkHP24kdqzx6" style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: right" title="Exercise price"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">0.44</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">—</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td></tr> <tr style="font-family: Times New Roman, Times, Serif; vertical-align: bottom; background-color: White"> <td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">Outstanding as of September 30, 2023</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td id="xdx_98F_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardNonOptionEquityInstrumentsOutstandingNumber_iE_c20230101__20230930__us-gaap--StatementEquityComponentsAxis__us-gaap--WarrantMember_zlhUi35o2M7f" style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: right" title="Warrants Outstanding, Beginning Balance"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">48,351,747</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td id="xdx_982_ecustom--ShareBasedCompensationArrangementByShareBasedPaymentAwardNonOptionsOutstandingWeightedAverageExercisePrice_iE_c20230101__20230930__us-gaap--StatementEquityComponentsAxis__us-gaap--WarrantMember_fKg_____zaOVk7GMKmh9" style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: right" title="Weighted Average Exercise Price Outstanding, Ending balance"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">0.32</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">*</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span id="xdx_908_ecustom--SharebasedCompensationArrangementBySharebasedPaymentAwardNonOptionsOutstandingWeightedAverageRemainingContractualTerm_dtY0_c20230101__20230930__us-gaap--StatementEquityComponentsAxis__us-gaap--WarrantMember_zxV8c5lFC" style="font-family: Times New Roman, Times, Serif">3.81</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td></tr> <tr style="font-family: Times New Roman, Times, Serif; vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">Exercisable as of September 30, 2023</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="border-bottom: Black 2.5pt double; font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td id="xdx_98D_ecustom--ShareBasedCompensationArrangementByShareBasedPaymentAwardNonOptionEquityInstrumentsExercisableNumber_iE_c20230101__20230930__us-gaap--StatementEquityComponentsAxis__us-gaap--WarrantMember_zkQhz3BP34T8" style="border-bottom: Black 2.5pt double; font-family: Times New Roman, Times, Serif; text-align: right" title="Warrants Exercisable at end"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">23,271,747</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="border-bottom: Black 2.5pt double; font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td id="xdx_986_ecustom--ShareBasedCompensationArrangementByShareBasedPaymentAwardNonOptionsExercisableWeightedAverageExercisePrice_iE_c20230101__20230930__us-gaap--StatementEquityComponentsAxis__us-gaap--WarrantMember_fKg_____zS2fXvMZGxrb" style="border-bottom: Black 2.5pt double; font-family: Times New Roman, Times, Serif; text-align: right" title="Weighted Average Exercise Price, Warrants Exercise price"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">0.25</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">*</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="border-bottom: Black 2.5pt double; font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="border-bottom: Black 2.5pt double; font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span id="xdx_906_ecustom--SharebasedCompensationArrangementBySharebasedPaymentAwardNonOptionsExercisableWeightedAverageRemainingContractualTerm_dtY0_c20230101__20230930__us-gaap--StatementEquityComponentsAxis__us-gaap--WarrantMember_zW0l0DLXYFDf" style="font-family: Times New Roman, Times, Serif">2.31</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td></tr> </table> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%"> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif; width: 0.25in; text-align: right"><span style="-sec-ix-redline: true"><span id="xdx_F02_z8x0feKxSNUl" style="font-family: Times New Roman, Times, Serif; font-size: 10pt">*</span></span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><span style="-sec-ix-redline: true"><span id="xdx_F1B_zMXbuaQuyzHa" style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Reflects the exercise price after the Down Round Trigger events on December 6, 2022, March 9, 2023, and June 6, 2023 (see Note 7).</span></span></td></tr> </table> 21129032 0.29 21129032 0.29 7142715 0.25 25080000 0.38 5000000 0.44 48351747 0.32 P3Y9M21D 23271747 0.25 P2Y3M21D <p id="xdx_80A_eus-gaap--CommitmentsAndContingenciesDisclosureTextBlock_z2KJZlqHoj5c" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Note 10 – <span id="xdx_823_zk1omUYyGqEc">Commitments and Contingencies</span></b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i>Existing Employment and Board Agreements</i></b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 33.75pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The Company has various employment agreements with certain of its executive officers and directors that serve as Board members, which it considers normal and in the ordinary course of business.</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 33.75pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 33.75pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The Company has no other formal employment agreements with our executive officers, nor any compensatory plans or arrangements resulting from the resignation, retirement, or any other termination of our named executive officers, from a change-in-control, or from a change in any executive officer’s responsibilities following a change-in-control. However, it is possible that the Company will enter into formal employment agreements with its executive officers in the future.</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i>Purchase Commitments</i></b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 33.75pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The Company routinely places orders for manufacturing services and materials. As of September 30, 2023, the Company had purchase commitments of $<span id="xdx_908_eus-gaap--OtherCommitment_iI_c20230930_zSEvSHQ4s6mc">2,126,081</span></span></span><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">. These purchase commitments are expected to be realized during the year ending December 31, 2023. As of December 31, 2022, the Company had purchase commitments of $<span id="xdx_904_eus-gaap--OtherCommitment_iI_c20221231_z3P9lcjraEz" title="Other commitment">3,155,867</span></span></span><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">.</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i> </i></b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i>SEC Administrative Proceeding</i></b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The Securities and Exchange Commission announced on September 27,2023 a cease and desist order against officers, directors, and major shareholders of public companies for failing to timely report information about their holdings and transactions in company stock. The charges stem from an SEC enforcement initiative focused on violations of Section 16(a) of the Exchange Act pursuant to which company insiders are required to file certain reports regarding their holdings and transactions in company stock.</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The Company cooperated with the requests for for documents, and information regarding various transactions and disclosures going back to 2018. On September 27 2023, the SEC issued an Order instituting cease-and-desist proceedings against AgEagle and its former Chief Financial Officer. Without admitting or denying the findings, the Company agreed to cease and desist from further Section 13(a) and Section 16(a) violations and to pay $<span id="xdx_90E_eus-gaap--LegalFees_c20230926__20230927_zTkTCizIkGp2">190,000</span></span></span> <span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">in civil penalties and, the Company’s former Chief Financial Officer agreed to cease and desist from further Section 16(a) violations and to personally pay $<span id="xdx_90B_eus-gaap--LegalFees_c20230926__20230927__srt--TitleOfIndividualAxis__srt--ChiefFinancialOfficerMember_z0AWrLMsvNTh" title="Legal fees">125,000 </span></span></span><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">in civil penalties that will not be indemnified by the Company.</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> 2126081 3155867 190000 125000 <p id="xdx_80C_eus-gaap--SegmentReportingDisclosureTextBlock_zekrF2WYwXri" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Note 11 – <span id="xdx_823_z8Zk1Uap7Nsf">Segment Information</span></b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 33.75pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Non-allocated administrative and other expenses are reflected in Corporate. Corporate assets include cash, prepaid expenses, notes receivable, right of use assets and other assets.</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 33.75pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p id="xdx_89F_eus-gaap--ScheduleOfIntangibleAssetsAndGoodwillTableTextBlock_zxLx2L5U1aZ7" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 33.75pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">As of September 30, 2023, and December 31, 2022, and for the three and nine months ended September 30, 2023 and 2022, respectively, information about the Company’s reportable segments consisted of the following:</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i>Goodwill and Assets</i></b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; display: none; margin: 0pt 0; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span><span id="xdx_8B4_zAXkIszbOkYg" style="display: none">Schedule of Goodwill and Assets</span></span></p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="font-family: Times New Roman, Times, Serif; vertical-align: bottom"> <td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; font-weight: bold; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td colspan="2" id="xdx_4BC_us-gaap--StatementBusinessSegmentsAxis_us-gaap--CorporateMember_z9OPMBBUHE1" style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; font-weight: bold; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">Corporate</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; font-weight: bold"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; font-weight: bold; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td colspan="2" id="xdx_4B7_us-gaap--StatementBusinessSegmentsAxis_custom--DronesAndCustomManufacturingMember_zRyaDNBZEi2l" style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; font-weight: bold; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">Drones</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; font-weight: bold"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; font-weight: bold; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td colspan="2" id="xdx_4BC_us-gaap--StatementBusinessSegmentsAxis_custom--SensorsMember_zJsut0Cj9aTd" style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; font-weight: bold; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">Sensors</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; font-weight: bold"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; font-weight: bold; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td colspan="2" id="xdx_4BD_us-gaap--StatementBusinessSegmentsAxis_custom--SaaSMember_zbarAOL9J5mi" style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; font-weight: bold; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">SaaS</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; font-weight: bold"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; font-weight: bold; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td colspan="2" id="xdx_4BD_zcOlQCKkTVO5" style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; font-weight: bold; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">Total</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; font-weight: bold"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td></tr> <tr style="font-family: Times New Roman, Times, Serif; vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-family: Times New Roman, Times, Serif; font-weight: bold"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">As of September 30, 2023</span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td></tr> <tr id="xdx_43F_c20230930_eus-gaap--Goodwill_iI_zzSoZrnNMOnk" style="font-family: Times New Roman, Times, Serif; vertical-align: bottom; background-color: White"> <td style="font-family: Times New Roman, Times, Serif; width: 35%; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">Goodwill</span></span></td><td style="font-family: Times New Roman, Times, Serif; width: 2%; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; width: 1%; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">$</span></span></td><td style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; width: 9%; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-hidden: xdx2ixbrl1816">—</span></span></span></td><td style="font-family: Times New Roman, Times, Serif; width: 1%; padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; width: 2%; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; width: 1%; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">$</span></span></td><td style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; width: 9%; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-hidden: xdx2ixbrl1817">—</span></span></span></td><td style="font-family: Times New Roman, Times, Serif; width: 1%; padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; width: 2%; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; width: 1%; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">$</span></span></td><td style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; width: 9%; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">18,972,896</span></span></td><td style="font-family: Times New Roman, Times, Serif; width: 1%; padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; width: 2%; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; width: 1%; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">$</span></span></td><td style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; width: 9%; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">2,706,515</span></span></td><td style="font-family: Times New Roman, Times, Serif; width: 1%; padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; width: 2%; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; width: 1%; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">$</span></span></td><td style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; width: 9%; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">21,679,411</span></span></td><td style="font-family: Times New Roman, Times, Serif; width: 1%; padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td></tr> <tr id="xdx_435_c20230930_eus-gaap--Assets_iI_zmCK9LuNJzp2" style="font-family: Times New Roman, Times, Serif; vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">Assets</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">$</span></span></td><td style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">2,660,979</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">$</span></span></td><td style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">12,383,293</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">$</span></span></td><td style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">25,495,556</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">$</span></span></td><td style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">5,510,659</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">$</span></span></td><td style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">46,050,487</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td></tr> <tr style="font-family: Times New Roman, Times, Serif; vertical-align: bottom; background-color: White"> <td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td></tr> <tr style="font-family: Times New Roman, Times, Serif; vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-family: Times New Roman, Times, Serif; font-weight: bold"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">As of December 31, 2022</span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td></tr> <tr id="xdx_433_c20221231_eus-gaap--Goodwill_iI_zPxQ8I2uXfRk" style="font-family: Times New Roman, Times, Serif; vertical-align: bottom; background-color: White"> <td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">Goodwill</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">$</span></span></td><td style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-hidden: xdx2ixbrl1828">—</span></span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">$</span></span></td><td style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-hidden: xdx2ixbrl1829">—</span></span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">$</span></span></td><td style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">18,972,896</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">$</span></span></td><td style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">4,206,515</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">$</span></span></td><td style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">23,179,411</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td></tr> <tr id="xdx_43A_c20221231_eus-gaap--Assets_iI_zOZ0PVdkHSJ9" style="font-family: Times New Roman, Times, Serif; vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">Assets</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">$</span></span></td><td style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">4,785,643</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">$</span></span></td><td style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">14,930,789</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">$</span></span></td><td style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">26,081,788</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">$</span></span></td><td style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">8,386,654</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">$</span></span></td><td style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">54,184,874</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td></tr> </table> <p id="xdx_8A3_zohjCaICLZRe" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i> </i></b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i> </i></b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>AGEAGLE AERIAL SYSTEMS INC. AND SUBSIDIARIES</b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS</b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2023 AND 2022</b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>(UNAUDITED)</b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b> </b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Note 11 – Segment Information - Continued</b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b> </b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i>Condensed Consolidated Operating Results</i></b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i> </i></b></span></span></p> <p id="xdx_89B_eus-gaap--ScheduleOfSegmentReportingInformationBySegmentTextBlock_zsbAGVWY8Yd5" style="font: 10pt Times New Roman, Times, Serif; display: none; margin: 0pt 0; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span><span id="xdx_8B6_zQSfL7DYeXb2" style="display: none">Schedule of Segment Reporting Net (Loss) Income</span></span></p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="font-family: Times New Roman, Times, Serif; vertical-align: bottom"> <td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; font-weight: bold; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td colspan="2" id="xdx_4BE_us-gaap--StatementBusinessSegmentsAxis_us-gaap--CorporateMember_zchcbg35h3eh" style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; font-weight: bold; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">Corporate</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; font-weight: bold"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; font-weight: bold; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td colspan="2" id="xdx_4B7_us-gaap--StatementBusinessSegmentsAxis_custom--DronesAndCustomManufacturingMember_zxdy9WYJuYyh" style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; font-weight: bold; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">Drones</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; font-weight: bold"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; font-weight: bold; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td colspan="2" id="xdx_4BD_us-gaap--StatementBusinessSegmentsAxis_custom--SensorsMember_zu3CK8giir3j" style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; font-weight: bold; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">Sensors</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; font-weight: bold"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; font-weight: bold; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td colspan="2" id="xdx_4BD_us-gaap--StatementBusinessSegmentsAxis_custom--SaaSMember_zn3Xoa2C0GC2" style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; font-weight: bold; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">SaaS</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; font-weight: bold"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; font-weight: bold; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td colspan="2" id="xdx_4BD_zN4rPhlv9UGb" style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; font-weight: bold; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">Total</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; font-weight: bold"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td></tr> <tr style="font-family: Times New Roman, Times, Serif; vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-family: Times New Roman, Times, Serif; font-weight: bold"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">Three Months Ended September 30, 2023</span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td></tr> <tr id="xdx_43C_c20230701__20230930_eus-gaap--Revenues_zUPxy0QaAQ96" style="font-family: Times New Roman, Times, Serif; vertical-align: bottom; background-color: White"> <td style="font-family: Times New Roman, Times, Serif; width: 35%"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">Revenues</span></span></td><td style="font-family: Times New Roman, Times, Serif; width: 2%"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; width: 1%; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">$</span></span></td><td style="font-family: Times New Roman, Times, Serif; width: 9%; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-hidden: xdx2ixbrl1842">—</span></span></span></td><td style="font-family: Times New Roman, Times, Serif; width: 1%; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; width: 2%"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; width: 1%; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">$</span></span></td><td style="font-family: Times New Roman, Times, Serif; width: 9%; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">1,627,177</span></span></td><td style="font-family: Times New Roman, Times, Serif; width: 1%; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; width: 2%"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; width: 1%; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">$</span></span></td><td style="font-family: Times New Roman, Times, Serif; width: 9%; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">1,755,712</span></span></td><td style="font-family: Times New Roman, Times, Serif; width: 1%; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; width: 2%"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; width: 1%; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">$</span></span></td><td style="font-family: Times New Roman, Times, Serif; width: 9%; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">101,043</span></span></td><td style="font-family: Times New Roman, Times, Serif; width: 1%; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; width: 2%"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; width: 1%; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">$</span></span></td><td style="font-family: Times New Roman, Times, Serif; width: 9%; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">3,483,932</span></span></td><td style="font-family: Times New Roman, Times, Serif; width: 1%; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td></tr> <tr id="xdx_434_c20230701__20230930_eus-gaap--CostOfRevenue_zMlMVP5hNEIl" style="font-family: Times New Roman, Times, Serif; vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">Cost of sales</span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-hidden: xdx2ixbrl1848">—</span></span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">990,413</span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">990,457</span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">288,988</span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">2,269,858</span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td></tr> <tr id="xdx_436_c20230701__20230930_eus-gaap--OperatingIncomeLoss_zBQCIWLijfYl" style="font-family: Times New Roman, Times, Serif; vertical-align: bottom; background-color: White"> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">Income (loss) from operations</span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">(3,229,837</span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">)</span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">(2,288,870</span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">)</span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">168,820</span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">(640,226</span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">)</span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">(5,990,113</span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">)</span></span></td></tr> <tr id="xdx_434_c20230701__20230930_eus-gaap--OtherNonoperatingIncomeExpense_znd2xoKDCFI2" style="font-family: Times New Roman, Times, Serif; vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-family: Times New Roman, Times, Serif; text-align: left; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">Other income (expense), net</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">(2,063,936</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">)</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">35,322</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">(960</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">)</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">(441</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">)</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">(2,030,015</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">)</span></span></td></tr> <tr id="xdx_435_c20230701__20230930_eus-gaap--NetIncomeLoss_znmO42cizXY2" style="font-family: Times New Roman, Times, Serif; vertical-align: bottom; background-color: White"> <td style="font-family: Times New Roman, Times, Serif; text-align: left; padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">Net income (loss)</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="border-bottom: Black 2.5pt double; font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">$</span></span></td><td style="border-bottom: Black 2.5pt double; font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">(5,293,773</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">)</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="border-bottom: Black 2.5pt double; font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">$</span></span></td><td style="border-bottom: Black 2.5pt double; font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">(2,253,548</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">)</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="border-bottom: Black 2.5pt double; font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">$</span></span></td><td style="border-bottom: Black 2.5pt double; font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">167,860</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="border-bottom: Black 2.5pt double; font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">$</span></span></td><td style="border-bottom: Black 2.5pt double; font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">(640,667</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">)</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="border-bottom: Black 2.5pt double; font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">$</span></span></td><td style="border-bottom: Black 2.5pt double; font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">(8,020,128</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">)</span></span></td></tr> <tr style="font-family: Times New Roman, Times, Serif; vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td></tr> <tr style="font-family: Times New Roman, Times, Serif; vertical-align: bottom; background-color: White"> <td style="font-family: Times New Roman, Times, Serif; font-weight: bold"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">Three Months Ended September 30, 2022</span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td></tr> <tr id="xdx_43F_c20220701__20220930_eus-gaap--Revenues_ztmtUJVsM292" style="font-family: Times New Roman, Times, Serif; vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">Revenues</span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">$</span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-hidden: xdx2ixbrl1872">—</span></span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">$</span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">2,081,410</span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">$</span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">3,256,797</span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">$</span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">152,507</span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">$</span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">5,490,714</span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td></tr> <tr id="xdx_435_c20220701__20220930_eus-gaap--CostOfRevenue_zMGI7vOzOSqa" style="font-family: Times New Roman, Times, Serif; vertical-align: bottom; background-color: White"> <td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">Cost of sales</span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-hidden: xdx2ixbrl1878">—</span></span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">1,180,612</span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">1,851,089</span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">375,872</span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">3,407,573</span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td></tr> <tr id="xdx_43F_c20220701__20220930_eus-gaap--OperatingIncomeLoss_zRn6SGtWdvUc" style="font-family: Times New Roman, Times, Serif; vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">Income (loss) from operations</span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">(2,233,559</span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">)</span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">(2,688,835</span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">)</span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">592,795</span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">(817,731</span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">)</span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">(5,147,330</span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">)</span></span></td></tr> <tr id="xdx_435_c20220701__20220930_eus-gaap--OtherNonoperatingIncomeExpense_z7Fgho5zafe6" style="font-family: Times New Roman, Times, Serif; vertical-align: bottom; background-color: White"> <td style="font-family: Times New Roman, Times, Serif; text-align: left; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">Other income (expense), net</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">6,488,327</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">327,066</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">(1,819</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">)</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">(1,292</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">)</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">6,812,282</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td></tr> <tr id="xdx_433_c20220701__20220930_eus-gaap--NetIncomeLoss_zS94V7gInBj" style="font-family: Times New Roman, Times, Serif; vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-family: Times New Roman, Times, Serif; text-align: left; padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">Net income (loss)</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="border-bottom: Black 2.5pt double; font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">$</span></span></td><td style="border-bottom: Black 2.5pt double; font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">4,254,768</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="border-bottom: Black 2.5pt double; font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">$</span></span></td><td style="border-bottom: Black 2.5pt double; font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">(2,361,769</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">)</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="border-bottom: Black 2.5pt double; font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">$</span></span></td><td style="border-bottom: Black 2.5pt double; font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">590,976</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="border-bottom: Black 2.5pt double; font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">$</span></span></td><td style="border-bottom: Black 2.5pt double; font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">(819,023</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">)</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="border-bottom: Black 2.5pt double; font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">$</span></span></td><td style="border-bottom: Black 2.5pt double; font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">1,664,952</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td></tr> </table> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="font-family: Times New Roman, Times, Serif; vertical-align: bottom"> <td style="font-family: Times New Roman, Times, Serif; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; font-weight: bold; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; font-weight: bold; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">Corporate</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; font-weight: bold"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; font-weight: bold; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; font-weight: bold; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">Drones</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; font-weight: bold"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; font-weight: bold; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; font-weight: bold; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">Sensors</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; font-weight: bold"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; font-weight: bold; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; font-weight: bold; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">SaaS</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; font-weight: bold"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; font-weight: bold; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; font-weight: bold; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">Total</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; font-weight: bold"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td></tr> <tr style="font-family: Times New Roman, Times, Serif; vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-family: Times New Roman, Times, Serif; font-weight: bold"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">Nine Months Ended September 30, 2023</span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td></tr> <tr id="xdx_430_c20230101__20230930_eus-gaap--Revenues_zEO7dEyXWlJ1" style="font-family: Times New Roman, Times, Serif; vertical-align: bottom; background-color: White"> <td style="font-family: Times New Roman, Times, Serif; width: 35%"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">Revenues</span></span></td><td style="font-family: Times New Roman, Times, Serif; width: 2%"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; width: 1%; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">$</span></span></td><td style="font-family: Times New Roman, Times, Serif; width: 9%; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-hidden: xdx2ixbrl1902">—</span></span></span></td><td style="font-family: Times New Roman, Times, Serif; width: 1%; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; width: 2%"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; width: 1%; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">$</span></span></td><td style="font-family: Times New Roman, Times, Serif; width: 9%; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">4,861,260</span></span></td><td style="font-family: Times New Roman, Times, Serif; width: 1%; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; width: 2%"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; width: 1%; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">$</span></span></td><td style="font-family: Times New Roman, Times, Serif; width: 9%; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">5,610,764</span></span></td><td style="font-family: Times New Roman, Times, Serif; width: 1%; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; width: 2%"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; width: 1%; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">$</span></span></td><td style="font-family: Times New Roman, Times, Serif; width: 9%; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">347,189</span></span></td><td style="font-family: Times New Roman, Times, Serif; width: 1%; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; width: 2%"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; width: 1%; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">$</span></span></td><td style="font-family: Times New Roman, Times, Serif; width: 9%; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">10,819,213</span></span></td><td style="font-family: Times New Roman, Times, Serif; width: 1%; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td></tr> <tr id="xdx_432_c20230101__20230930_eus-gaap--CostOfRevenue_zqpZDhzzJz4a" style="font-family: Times New Roman, Times, Serif; vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">Cost of sales</span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-hidden: xdx2ixbrl1908">—</span></span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">2,580,305</span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">3,213,058</span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">801,610</span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">6,594,973</span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td></tr> <tr id="xdx_43A_c20230101__20230930_eus-gaap--OperatingIncomeLoss_z4QEseWuyRi9" style="font-family: Times New Roman, Times, Serif; vertical-align: bottom; background-color: White"> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">Income (loss) from operations</span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">(7,240,686</span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">)</span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">(6,626,668</span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">)</span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">328,404</span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">(1,484,110</span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">)</span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">(15,023,060</span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">)</span></span></td></tr> <tr id="xdx_438_c20230101__20230930_eus-gaap--OtherNonoperatingIncomeExpense_ztbXqV3l4Vff" style="font-family: Times New Roman, Times, Serif; vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-family: Times New Roman, Times, Serif; text-align: left; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">Other expense, net</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">(2,559,654</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">)</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">(326,032</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">)</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">(960</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">)</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">(504</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">)</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">(2,887,150</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">)</span></span></td></tr> <tr id="xdx_439_c20230101__20230930_eus-gaap--NetIncomeLoss_pp0p0_zbXE5F6xkEwh" style="font-family: Times New Roman, Times, Serif; vertical-align: bottom; background-color: White"> <td style="font-family: Times New Roman, Times, Serif; text-align: left; padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">Net income (loss)</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="border-bottom: Black 2.5pt double; font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">$</span></span></td><td style="border-bottom: Black 2.5pt double; font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">(9,800,340</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">)</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="border-bottom: Black 2.5pt double; font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">$</span></span></td><td style="border-bottom: Black 2.5pt double; font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">(6,952,700</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">)</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="border-bottom: Black 2.5pt double; font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">$</span></span></td><td style="border-bottom: Black 2.5pt double; font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">327,444</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="border-bottom: Black 2.5pt double; font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">$</span></span></td><td style="border-bottom: Black 2.5pt double; font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">(1,484,614</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">)</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="border-bottom: Black 2.5pt double; font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">$</span></span></td><td style="border-bottom: Black 2.5pt double; font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">(17,910,210</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">)</span></span></td></tr> <tr style="font-family: Times New Roman, Times, Serif; vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td></tr> <tr style="font-family: Times New Roman, Times, Serif; vertical-align: bottom; background-color: White"> <td style="font-family: Times New Roman, Times, Serif; font-weight: bold"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">Nine Months Ended September 30, 2022</span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td></tr> <tr id="xdx_43F_c20220101__20220930_eus-gaap--Revenues_zTS0D4br4Xu" style="font-family: Times New Roman, Times, Serif; vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">Revenues</span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">$</span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-hidden: xdx2ixbrl1932">—</span></span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">$</span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">7,856,573</span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">$</span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">6,283,907</span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">$</span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">480,085</span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">$</span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">14,620,565</span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td></tr> <tr id="xdx_436_c20220101__20220930_eus-gaap--CostOfRevenue_zmNRGN9ClZ13" style="font-family: Times New Roman, Times, Serif; vertical-align: bottom; background-color: White"> <td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">Cost of sales</span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-hidden: xdx2ixbrl1938">—</span></span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">4,339,712</span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">3,578,184</span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">704,540</span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">8,622,436</span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td></tr> <tr id="xdx_431_c20220101__20220930_eus-gaap--OperatingIncomeLoss_zuHndU2U15oi" style="font-family: Times New Roman, Times, Serif; vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">Loss from operations</span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">(8,194,751</span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">)</span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">(7,204,483</span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">)</span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">(217,328</span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">)</span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">(2,401,289</span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">)</span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">(18,017,851</span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">)</span></span></td></tr> <tr id="xdx_430_c20220101__20220930_eus-gaap--OtherNonoperatingIncomeExpense_zBAFPU5BR5Mb" style="font-family: Times New Roman, Times, Serif; vertical-align: bottom; background-color: White"> <td style="font-family: Times New Roman, Times, Serif; text-align: left; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">Other income (expense), net</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">6,491,117</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">3,114</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">(3,638</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">)</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">(6,098</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">)</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">6,484,495</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td></tr> <tr id="xdx_43C_c20220101__20220930_eus-gaap--NetIncomeLoss_zvkcLidpKUpd" style="font-family: Times New Roman, Times, Serif; vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-family: Times New Roman, Times, Serif; text-align: left; padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">Net loss</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="border-bottom: Black 2.5pt double; font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">$</span></span></td><td style="border-bottom: Black 2.5pt double; font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">(1,703,634</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">)</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="border-bottom: Black 2.5pt double; font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">$</span></span></td><td style="border-bottom: Black 2.5pt double; font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">(7,201,369</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">)</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="border-bottom: Black 2.5pt double; font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">$</span></span></td><td style="border-bottom: Black 2.5pt double; font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">(220,966</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">)</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="border-bottom: Black 2.5pt double; font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">$</span></span></td><td style="border-bottom: Black 2.5pt double; font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">(2,407,387</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">)</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="border-bottom: Black 2.5pt double; font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">$</span></span></td><td style="border-bottom: Black 2.5pt double; font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">(11,533,356</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">)</span></span></td></tr> </table> <p style="font: 10pt Times New Roman, Times, Serif; display: none; margin: 0pt 0; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i> </i></b></span></span></p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; display: none; margin-top: 0; margin-bottom: 6pt; width: 100%"><tr style="vertical-align: top; text-align: justify"> <td style="width: 15pt; text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">⁽¹⁾</span></td><td style="width: 5pt"></td><td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Includes goodwill impairment $<span class="xdx_phnt_RGlzY2xvc3VyZSAtIFNjaGVkdWxlIG9mIFNlZ21lbnQgUmVwb3J0aW5nIE5ldCAoTG9zcykgSW5jb21lIChEZXRhaWxzKSAoUGFyZW50aGV0aWNhbCkA" id="xdx_90B_ecustom--GoodwillImpairmentLosses_c20220101__20221231__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__custom--DroneAndSaaSMember_zFheMLTdbFR1">41,687,871 </span></span><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">for the Drone and SaaS reporting segments</span></td> </tr></table> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; display: none; margin-top: 0; margin-bottom: 6pt; width: 100%"><tr style="vertical-align: top; text-align: justify"> <td style="width: 15pt; text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">⁽²⁾</span></td><td style="width: 5pt"></td><td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Includes goodwill impairment $<span class="xdx_phnt_RGlzY2xvc3VyZSAtIFNjaGVkdWxlIG9mIFNlZ21lbnQgUmVwb3J0aW5nIE5ldCAoTG9zcykgSW5jb21lIChEZXRhaWxzKSAoUGFyZW50aGV0aWNhbCkA" id="xdx_903_ecustom--GoodwillImpairmentLosses_c20220101__20221231__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__custom--SaaSMember_zO3HVqlPkc36">12,357,921 </span></span><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">for the SaaS reporting segment</span></td></tr></table> <p id="xdx_8A0_zlznRHhwi66" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i> </i></b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i>Revenues by Geographic Area</i></b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i> </i></b></span></span></p> <p id="xdx_892_eus-gaap--ScheduleOfRevenuesFromExternalCustomersAndLongLivedAssetsByGeographicalAreasTableTextBlock_z0qT5j2agHf" style="font: 10pt Times New Roman, Times, Serif; display: none; margin: 0pt 0; text-align: justify; text-indent: 33.75pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span><span id="xdx_8B5_zLz0N2fIWIgc" style="display: none">Schedule of Segment Revenues by Geographic Area</span></span></p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="font-family: Times New Roman, Times, Serif; vertical-align: bottom"> <td style="font-family: Times New Roman, Times, Serif; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; font-weight: bold; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td colspan="2" id="xdx_4B7_us-gaap--StatementBusinessSegmentsAxis_custom--DronesAndCustomManufacturingMember_zfWrxkuCz888" style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; font-weight: bold; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">Drones</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; font-weight: bold"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; font-weight: bold; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td colspan="2" id="xdx_4B1_us-gaap--StatementBusinessSegmentsAxis_custom--SensorsMember_z0Tu2YkIf4zg" style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; font-weight: bold; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">Sensors</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; font-weight: bold"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; font-weight: bold; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td colspan="2" id="xdx_4B7_us-gaap--StatementBusinessSegmentsAxis_custom--SaaSMember_zWqyESguMD1b" style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; font-weight: bold; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">SaaS</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; font-weight: bold"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; font-weight: bold; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td colspan="2" id="xdx_4BB_zIzIj9S9tmz5" style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; font-weight: bold; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">Total</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; font-weight: bold"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td></tr> <tr style="font-family: Times New Roman, Times, Serif; vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-family: Times New Roman, Times, Serif; font-weight: bold"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">Three Months Ended September 30, 2023</span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td></tr> <tr id="xdx_43D_c20230701__20230930__srt--StatementGeographicalAxis__srt--NorthAmericaMember_eus-gaap--Revenues_zlwQKzWUPNHf" style="font-family: Times New Roman, Times, Serif; vertical-align: bottom; background-color: White"> <td style="font-family: Times New Roman, Times, Serif; width: 40%; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">North America</span></span></td><td style="font-family: Times New Roman, Times, Serif; width: 2%"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; width: 1%; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">$</span></span></td><td style="font-family: Times New Roman, Times, Serif; width: 11%; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">547,012</span></span></td><td style="font-family: Times New Roman, Times, Serif; width: 1%; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; width: 2%"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; width: 1%; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">$</span></span></td><td style="font-family: Times New Roman, Times, Serif; width: 11%; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">570,170</span></span></td><td style="font-family: Times New Roman, Times, Serif; width: 1%; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; width: 2%"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; width: 1%; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">$</span></span></td><td style="font-family: Times New Roman, Times, Serif; width: 11%; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">57,447</span></span></td><td style="font-family: Times New Roman, Times, Serif; width: 1%; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; width: 2%"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; width: 1%; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">$</span></span></td><td style="font-family: Times New Roman, Times, Serif; width: 11%; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">1,174,629</span></span></td><td style="font-family: Times New Roman, Times, Serif; width: 1%; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td></tr> <tr id="xdx_439_c20230701__20230930__srt--StatementGeographicalAxis__srt--LatinAmericaMember_eus-gaap--Revenues_zzePSOU8JeUk" style="font-family: Times New Roman, Times, Serif; vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">Latin America</span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">383,232</span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">80,873</span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">38,196</span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">502,301</span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td></tr> <tr id="xdx_43A_c20230701__20230930__srt--StatementGeographicalAxis__us-gaap--EMEAMember_eus-gaap--Revenues_zw2zaj0IiXof" style="font-family: Times New Roman, Times, Serif; vertical-align: bottom; background-color: White"> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">Europe, Middle East and Africa</span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">628,768</span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">752,583</span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">661</span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">1,382,012</span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td></tr> <tr id="xdx_435_c20230701__20230930__srt--StatementGeographicalAxis__srt--AsiaPacificMember_eus-gaap--Revenues_zK82erfTddnh" style="font-family: Times New Roman, Times, Serif; vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">Asia Pacific</span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">68,165</span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">342,502</span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">4,739</span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">415,406</span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td></tr> <tr id="xdx_435_c20230701__20230930__srt--StatementGeographicalAxis__custom--OtherGeographicAreaMember_eus-gaap--Revenues_zi31sTwPgpN9" style="font-family: Times New Roman, Times, Serif; vertical-align: bottom; background-color: White"> <td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">Other</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-hidden: xdx2ixbrl1986">—</span></span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">9,584</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-hidden: xdx2ixbrl1988">—</span></span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">9,584</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td></tr> <tr id="xdx_432_c20230701__20230930_eus-gaap--Revenues_zqNoS6mfHyS4" style="font-family: Times New Roman, Times, Serif; vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">Total</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="border-bottom: Black 2.5pt double; font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">$</span></span></td><td style="border-bottom: Black 2.5pt double; font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">1,627,177</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="border-bottom: Black 2.5pt double; font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">$</span></span></td><td style="border-bottom: Black 2.5pt double; font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">1,755,712</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="border-bottom: Black 2.5pt double; font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">$</span></span></td><td style="border-bottom: Black 2.5pt double; font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">101,043</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="border-bottom: Black 2.5pt double; font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">$</span></span></td><td style="border-bottom: Black 2.5pt double; font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">3,483,932</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td></tr> <tr style="font-family: Times New Roman, Times, Serif; vertical-align: bottom; background-color: White"> <td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td></tr> <tr style="font-family: Times New Roman, Times, Serif; vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-family: Times New Roman, Times, Serif; font-weight: bold"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">Three Months Ended September 30, 2022</span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td></tr> <tr id="xdx_43F_c20220701__20220930__srt--StatementGeographicalAxis__srt--NorthAmericaMember_eus-gaap--Revenues_zbdJQ7Rglso4" style="font-family: Times New Roman, Times, Serif; vertical-align: bottom; background-color: White"> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">North America</span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">$</span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">1,191,083</span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">$</span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">1,182,218</span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">$</span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">152,507</span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">$</span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">2,525,808</span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td></tr> <tr id="xdx_43D_c20220701__20220930__srt--StatementGeographicalAxis__us-gaap--EMEAMember_eus-gaap--Revenues_zKPHhqBIjV23" style="font-family: Times New Roman, Times, Serif; vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">Europe, Middle East and Africa</span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">603,443</span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">1,250,610</span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-hidden: xdx2ixbrl2003">—</span></span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">1,854,053</span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td></tr> <tr id="xdx_43F_c20220701__20220930__srt--StatementGeographicalAxis__srt--AsiaPacificMember_eus-gaap--Revenues_ziU1lzgFgOmi" style="font-family: Times New Roman, Times, Serif; vertical-align: bottom; background-color: White"> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">Asia Pacific</span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">286,884</span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">696,954</span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-hidden: xdx2ixbrl2008">—</span></span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">983,838</span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td></tr> <tr id="xdx_438_c20220701__20220930__srt--StatementGeographicalAxis__custom--OtherGeographicAreaMember_eus-gaap--Revenues_z8IXkvomk0W6" style="font-family: Times New Roman, Times, Serif; vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">Other</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-hidden: xdx2ixbrl2011">—</span></span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">127,015</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-hidden: xdx2ixbrl2013">—</span></span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">127,015</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td></tr> <tr id="xdx_431_c20220701__20220930_eus-gaap--Revenues_zmSr10wWeQT9" style="font-family: Times New Roman, Times, Serif; vertical-align: bottom; background-color: White"> <td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">Total</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="border-bottom: Black 2.5pt double; font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">$</span></span></td><td style="border-bottom: Black 2.5pt double; font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">2,081,410</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="border-bottom: Black 2.5pt double; font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">$</span></span></td><td style="border-bottom: Black 2.5pt double; font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">3,256,797</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="border-bottom: Black 2.5pt double; font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">$</span></span></td><td style="border-bottom: Black 2.5pt double; font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">152,507</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="border-bottom: Black 2.5pt double; font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">$</span></span></td><td style="border-bottom: Black 2.5pt double; font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">5,490,714</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td></tr> </table> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b> </b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>AGEAGLE AERIAL SYSTEMS INC. AND SUBSIDIARIES</b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS</b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2023 AND 2022</b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>(UNAUDITED)</b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b> </b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Note 11 – Segment Information - Continued</b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="font-family: Times New Roman, Times, Serif; vertical-align: bottom"> <td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; font-weight: bold; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td colspan="2" id="xdx_4B7_us-gaap--StatementBusinessSegmentsAxis_custom--DronesAndCustomManufacturingMember_zx5eeZ3lRx69" style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; font-weight: bold; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">Drones</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; font-weight: bold"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; font-weight: bold; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td colspan="2" id="xdx_4B1_us-gaap--StatementBusinessSegmentsAxis_custom--SensorsMember_zahG7u2SxnWl" style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; font-weight: bold; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">Sensors</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; font-weight: bold"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; font-weight: bold; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td colspan="2" id="xdx_4B7_us-gaap--StatementBusinessSegmentsAxis_custom--SaaSMember_zKuayK7C5ds3" style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; font-weight: bold; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">SaaS</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; font-weight: bold"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; font-weight: bold; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td colspan="2" id="xdx_4BB_z6zyIiM3Aeq8" style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; font-weight: bold; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">Total</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; font-weight: bold"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td></tr> <tr style="font-family: Times New Roman, Times, Serif; vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-family: Times New Roman, Times, Serif; font-weight: bold"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">Nine Months Ended September 30, 2023</span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td></tr> <tr id="xdx_438_c20230101__20230930__srt--StatementGeographicalAxis__srt--NorthAmericaMember_eus-gaap--Revenues_zNP1FY9a9GAa" style="font-family: Times New Roman, Times, Serif; vertical-align: bottom; background-color: White"> <td style="font-family: Times New Roman, Times, Serif; width: 40%; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">North America</span></span></td><td style="font-family: Times New Roman, Times, Serif; width: 2%"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; width: 1%; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">$</span></span></td><td style="font-family: Times New Roman, Times, Serif; width: 11%; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">1,701,100</span></span></td><td style="font-family: Times New Roman, Times, Serif; width: 1%; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; width: 2%"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; width: 1%; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">$</span></span></td><td style="font-family: Times New Roman, Times, Serif; width: 11%; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">1,783,481</span></span></td><td style="font-family: Times New Roman, Times, Serif; width: 1%; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; width: 2%"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; width: 1%; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">$</span></span></td><td style="font-family: Times New Roman, Times, Serif; width: 11%; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">303,593</span></span></td><td style="font-family: Times New Roman, Times, Serif; width: 1%; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; width: 2%"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; width: 1%; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">$</span></span></td><td style="font-family: Times New Roman, Times, Serif; width: 11%; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">3,788,174</span></span></td><td style="font-family: Times New Roman, Times, Serif; width: 1%; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td></tr> <tr id="xdx_431_c20230101__20230930__srt--StatementGeographicalAxis__srt--LatinAmericaMember_eus-gaap--Revenues_zhe0dRjwjYL7" style="font-family: Times New Roman, Times, Serif; vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">Latin America</span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">1,256,429</span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">221,334</span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">38,197</span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">1,515,960</span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td></tr> <tr id="xdx_432_c20230101__20230930__srt--StatementGeographicalAxis__us-gaap--EMEAMember_eus-gaap--Revenues_z2qfIZTjJNjc" style="font-family: Times New Roman, Times, Serif; vertical-align: bottom; background-color: White"> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">Europe, Middle East and Africa</span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">1,714,967</span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">2,611,108</span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">661</span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">4,326,736</span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td></tr> <tr id="xdx_43E_c20230101__20230930__srt--StatementGeographicalAxis__srt--AsiaPacificMember_eus-gaap--Revenues_zd6FMS05Lhg9" style="font-family: Times New Roman, Times, Serif; vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">Asia Pacific</span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">188,764</span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">949,040</span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">4,738</span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">1,142,542</span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td></tr> <tr id="xdx_434_c20230101__20230930__srt--StatementGeographicalAxis__custom--OtherGeographicAreaMember_eus-gaap--Revenues_z7Hozz5iVgNi" style="font-family: Times New Roman, Times, Serif; vertical-align: bottom; background-color: White"> <td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">Other</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-hidden: xdx2ixbrl2041">—</span></span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">45,801</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-hidden: xdx2ixbrl2043">—</span></span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">45,801</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td></tr> <tr id="xdx_437_c20230101__20230930_eus-gaap--Revenues_z3oxqSi66jI3" style="font-family: Times New Roman, Times, Serif; vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">Total</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="border-bottom: Black 2.5pt double; font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">$</span></span></td><td style="border-bottom: Black 2.5pt double; font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">4,861,260</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="border-bottom: Black 2.5pt double; font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">$</span></span></td><td style="border-bottom: Black 2.5pt double; font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">5,610,764</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="border-bottom: Black 2.5pt double; font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">$</span></span></td><td style="border-bottom: Black 2.5pt double; font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">347,189</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="border-bottom: Black 2.5pt double; font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">$</span></span></td><td style="border-bottom: Black 2.5pt double; font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">10,819,213</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td></tr> <tr style="font-family: Times New Roman, Times, Serif; vertical-align: bottom; background-color: White"> <td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td></tr> <tr style="font-family: Times New Roman, Times, Serif; vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-family: Times New Roman, Times, Serif; font-weight: bold"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">Nine Months Ended September 30, 2022</span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td></tr> <tr id="xdx_439_c20220101__20220930__srt--StatementGeographicalAxis__srt--NorthAmericaMember_eus-gaap--Revenues_zDkzTPBENBVj" style="font-family: Times New Roman, Times, Serif; vertical-align: bottom; background-color: White"> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">North America</span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">$</span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">4,473,236</span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">$</span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">2,350,426</span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">$</span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">480,085</span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">$</span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">7,303,747</span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td></tr> <tr id="xdx_439_c20220101__20220930__srt--StatementGeographicalAxis__us-gaap--EMEAMember_eus-gaap--Revenues_zdVxoqqoaID7" style="font-family: Times New Roman, Times, Serif; vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">Europe, Middle East and Africa</span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">2,606,120</span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">2,400,744</span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-hidden: xdx2ixbrl2058">—</span></span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">5,006,864</span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td></tr> <tr id="xdx_433_c20220101__20220930__srt--StatementGeographicalAxis__srt--AsiaPacificMember_eus-gaap--Revenues_z8WBifstBORj" style="font-family: Times New Roman, Times, Serif; vertical-align: bottom; background-color: White"> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">Asia Pacific</span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">777,217</span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">1,241,632</span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-hidden: xdx2ixbrl2063">—</span></span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">2,018,849</span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td></tr> <tr id="xdx_43E_c20220101__20220930__srt--StatementGeographicalAxis__custom--OtherGeographicAreaMember_eus-gaap--Revenues_zB6tHAimY7c7" style="font-family: Times New Roman, Times, Serif; vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">Other</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-hidden: xdx2ixbrl2066">—</span></span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">291,105</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-hidden: xdx2ixbrl2068">—</span></span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">291,105</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td></tr> <tr id="xdx_438_c20220101__20220930_eus-gaap--Revenues_zMc5ybmDDh1d" style="font-family: Times New Roman, Times, Serif; vertical-align: bottom; background-color: White"> <td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">Total</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="border-bottom: Black 2.5pt double; font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">$</span></span></td><td style="border-bottom: Black 2.5pt double; font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">7,856,573</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="border-bottom: Black 2.5pt double; font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">$</span></span></td><td style="border-bottom: Black 2.5pt double; font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">6,283,907</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="border-bottom: Black 2.5pt double; font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">$</span></span></td><td style="border-bottom: Black 2.5pt double; font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">480,085</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="border-bottom: Black 2.5pt double; font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">$</span></span></td><td style="border-bottom: Black 2.5pt double; font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">14,620,565</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td></tr> </table> <p id="xdx_8A4_zpcXDNlHjLTg" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p id="xdx_89F_eus-gaap--ScheduleOfIntangibleAssetsAndGoodwillTableTextBlock_zxLx2L5U1aZ7" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 33.75pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">As of September 30, 2023, and December 31, 2022, and for the three and nine months ended September 30, 2023 and 2022, respectively, information about the Company’s reportable segments consisted of the following:</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i>Goodwill and Assets</i></b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; display: none; margin: 0pt 0; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span><span id="xdx_8B4_zAXkIszbOkYg" style="display: none">Schedule of Goodwill and Assets</span></span></p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="font-family: Times New Roman, Times, Serif; vertical-align: bottom"> <td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; font-weight: bold; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td colspan="2" id="xdx_4BC_us-gaap--StatementBusinessSegmentsAxis_us-gaap--CorporateMember_z9OPMBBUHE1" style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; font-weight: bold; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">Corporate</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; font-weight: bold"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; font-weight: bold; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td colspan="2" id="xdx_4B7_us-gaap--StatementBusinessSegmentsAxis_custom--DronesAndCustomManufacturingMember_zRyaDNBZEi2l" style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; font-weight: bold; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">Drones</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; font-weight: bold"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; font-weight: bold; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td colspan="2" id="xdx_4BC_us-gaap--StatementBusinessSegmentsAxis_custom--SensorsMember_zJsut0Cj9aTd" style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; font-weight: bold; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">Sensors</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; font-weight: bold"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; font-weight: bold; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td colspan="2" id="xdx_4BD_us-gaap--StatementBusinessSegmentsAxis_custom--SaaSMember_zbarAOL9J5mi" style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; font-weight: bold; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">SaaS</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; font-weight: bold"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; font-weight: bold; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td colspan="2" id="xdx_4BD_zcOlQCKkTVO5" style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; font-weight: bold; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">Total</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; font-weight: bold"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td></tr> <tr style="font-family: Times New Roman, Times, Serif; vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-family: Times New Roman, Times, Serif; font-weight: bold"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">As of September 30, 2023</span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td></tr> <tr id="xdx_43F_c20230930_eus-gaap--Goodwill_iI_zzSoZrnNMOnk" style="font-family: Times New Roman, Times, Serif; vertical-align: bottom; background-color: White"> <td style="font-family: Times New Roman, Times, Serif; width: 35%; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">Goodwill</span></span></td><td style="font-family: Times New Roman, Times, Serif; width: 2%; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; width: 1%; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">$</span></span></td><td style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; width: 9%; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-hidden: xdx2ixbrl1816">—</span></span></span></td><td style="font-family: Times New Roman, Times, Serif; width: 1%; padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; width: 2%; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; width: 1%; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">$</span></span></td><td style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; width: 9%; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-hidden: xdx2ixbrl1817">—</span></span></span></td><td style="font-family: Times New Roman, Times, Serif; width: 1%; padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; width: 2%; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; width: 1%; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">$</span></span></td><td style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; width: 9%; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">18,972,896</span></span></td><td style="font-family: Times New Roman, Times, Serif; width: 1%; padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; width: 2%; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; width: 1%; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">$</span></span></td><td style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; width: 9%; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">2,706,515</span></span></td><td style="font-family: Times New Roman, Times, Serif; width: 1%; padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; width: 2%; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; width: 1%; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">$</span></span></td><td style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; width: 9%; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">21,679,411</span></span></td><td style="font-family: Times New Roman, Times, Serif; width: 1%; padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td></tr> <tr id="xdx_435_c20230930_eus-gaap--Assets_iI_zmCK9LuNJzp2" style="font-family: Times New Roman, Times, Serif; vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">Assets</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">$</span></span></td><td style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">2,660,979</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">$</span></span></td><td style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">12,383,293</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">$</span></span></td><td style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">25,495,556</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">$</span></span></td><td style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">5,510,659</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">$</span></span></td><td style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">46,050,487</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td></tr> <tr style="font-family: Times New Roman, Times, Serif; vertical-align: bottom; background-color: White"> <td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td></tr> <tr style="font-family: Times New Roman, Times, Serif; vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-family: Times New Roman, Times, Serif; font-weight: bold"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">As of December 31, 2022</span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td></tr> <tr id="xdx_433_c20221231_eus-gaap--Goodwill_iI_zPxQ8I2uXfRk" style="font-family: Times New Roman, Times, Serif; vertical-align: bottom; background-color: White"> <td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">Goodwill</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">$</span></span></td><td style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-hidden: xdx2ixbrl1828">—</span></span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">$</span></span></td><td style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-hidden: xdx2ixbrl1829">—</span></span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">$</span></span></td><td style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">18,972,896</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">$</span></span></td><td style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">4,206,515</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">$</span></span></td><td style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">23,179,411</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td></tr> <tr id="xdx_43A_c20221231_eus-gaap--Assets_iI_zOZ0PVdkHSJ9" style="font-family: Times New Roman, Times, Serif; vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">Assets</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">$</span></span></td><td style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">4,785,643</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">$</span></span></td><td style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">14,930,789</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">$</span></span></td><td style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">26,081,788</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">$</span></span></td><td style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">8,386,654</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">$</span></span></td><td style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">54,184,874</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td></tr> </table> 18972896 2706515 21679411 2660979 12383293 25495556 5510659 46050487 18972896 4206515 23179411 4785643 14930789 26081788 8386654 54184874 <p id="xdx_89B_eus-gaap--ScheduleOfSegmentReportingInformationBySegmentTextBlock_zsbAGVWY8Yd5" style="font: 10pt Times New Roman, Times, Serif; display: none; margin: 0pt 0; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span><span id="xdx_8B6_zQSfL7DYeXb2" style="display: none">Schedule of Segment Reporting Net (Loss) Income</span></span></p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="font-family: Times New Roman, Times, Serif; vertical-align: bottom"> <td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; font-weight: bold; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td colspan="2" id="xdx_4BE_us-gaap--StatementBusinessSegmentsAxis_us-gaap--CorporateMember_zchcbg35h3eh" style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; font-weight: bold; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">Corporate</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; font-weight: bold"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; font-weight: bold; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td colspan="2" id="xdx_4B7_us-gaap--StatementBusinessSegmentsAxis_custom--DronesAndCustomManufacturingMember_zxdy9WYJuYyh" style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; font-weight: bold; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">Drones</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; font-weight: bold"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; font-weight: bold; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td colspan="2" id="xdx_4BD_us-gaap--StatementBusinessSegmentsAxis_custom--SensorsMember_zu3CK8giir3j" style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; font-weight: bold; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">Sensors</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; font-weight: bold"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; font-weight: bold; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td colspan="2" id="xdx_4BD_us-gaap--StatementBusinessSegmentsAxis_custom--SaaSMember_zn3Xoa2C0GC2" style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; font-weight: bold; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">SaaS</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; font-weight: bold"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; font-weight: bold; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td colspan="2" id="xdx_4BD_zN4rPhlv9UGb" style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; font-weight: bold; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">Total</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; font-weight: bold"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td></tr> <tr style="font-family: Times New Roman, Times, Serif; vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-family: Times New Roman, Times, Serif; font-weight: bold"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">Three Months Ended September 30, 2023</span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td></tr> <tr id="xdx_43C_c20230701__20230930_eus-gaap--Revenues_zUPxy0QaAQ96" style="font-family: Times New Roman, Times, Serif; vertical-align: bottom; background-color: White"> <td style="font-family: Times New Roman, Times, Serif; width: 35%"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">Revenues</span></span></td><td style="font-family: Times New Roman, Times, Serif; width: 2%"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; width: 1%; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">$</span></span></td><td style="font-family: Times New Roman, Times, Serif; width: 9%; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-hidden: xdx2ixbrl1842">—</span></span></span></td><td style="font-family: Times New Roman, Times, Serif; width: 1%; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; width: 2%"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; width: 1%; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">$</span></span></td><td style="font-family: Times New Roman, Times, Serif; width: 9%; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">1,627,177</span></span></td><td style="font-family: Times New Roman, Times, Serif; width: 1%; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; width: 2%"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; width: 1%; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">$</span></span></td><td style="font-family: Times New Roman, Times, Serif; width: 9%; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">1,755,712</span></span></td><td style="font-family: Times New Roman, Times, Serif; width: 1%; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; width: 2%"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; width: 1%; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">$</span></span></td><td style="font-family: Times New Roman, Times, Serif; width: 9%; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">101,043</span></span></td><td style="font-family: Times New Roman, Times, Serif; width: 1%; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; width: 2%"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; width: 1%; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">$</span></span></td><td style="font-family: Times New Roman, Times, Serif; width: 9%; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">3,483,932</span></span></td><td style="font-family: Times New Roman, Times, Serif; width: 1%; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td></tr> <tr id="xdx_434_c20230701__20230930_eus-gaap--CostOfRevenue_zMlMVP5hNEIl" style="font-family: Times New Roman, Times, Serif; vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">Cost of sales</span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-hidden: xdx2ixbrl1848">—</span></span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">990,413</span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">990,457</span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">288,988</span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">2,269,858</span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td></tr> <tr id="xdx_436_c20230701__20230930_eus-gaap--OperatingIncomeLoss_zBQCIWLijfYl" style="font-family: Times New Roman, Times, Serif; vertical-align: bottom; background-color: White"> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">Income (loss) from operations</span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">(3,229,837</span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">)</span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">(2,288,870</span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">)</span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">168,820</span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">(640,226</span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">)</span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">(5,990,113</span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">)</span></span></td></tr> <tr id="xdx_434_c20230701__20230930_eus-gaap--OtherNonoperatingIncomeExpense_znd2xoKDCFI2" style="font-family: Times New Roman, Times, Serif; vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-family: Times New Roman, Times, Serif; text-align: left; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">Other income (expense), net</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">(2,063,936</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">)</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">35,322</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">(960</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">)</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">(441</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">)</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">(2,030,015</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">)</span></span></td></tr> <tr id="xdx_435_c20230701__20230930_eus-gaap--NetIncomeLoss_znmO42cizXY2" style="font-family: Times New Roman, Times, Serif; vertical-align: bottom; background-color: White"> <td style="font-family: Times New Roman, Times, Serif; text-align: left; padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">Net income (loss)</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="border-bottom: Black 2.5pt double; font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">$</span></span></td><td style="border-bottom: Black 2.5pt double; font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">(5,293,773</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">)</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="border-bottom: Black 2.5pt double; font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">$</span></span></td><td style="border-bottom: Black 2.5pt double; font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">(2,253,548</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">)</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="border-bottom: Black 2.5pt double; font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">$</span></span></td><td style="border-bottom: Black 2.5pt double; font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">167,860</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="border-bottom: Black 2.5pt double; font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">$</span></span></td><td style="border-bottom: Black 2.5pt double; font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">(640,667</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">)</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="border-bottom: Black 2.5pt double; font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">$</span></span></td><td style="border-bottom: Black 2.5pt double; font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">(8,020,128</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">)</span></span></td></tr> <tr style="font-family: Times New Roman, Times, Serif; vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td></tr> <tr style="font-family: Times New Roman, Times, Serif; vertical-align: bottom; background-color: White"> <td style="font-family: Times New Roman, Times, Serif; font-weight: bold"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">Three Months Ended September 30, 2022</span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td></tr> <tr id="xdx_43F_c20220701__20220930_eus-gaap--Revenues_ztmtUJVsM292" style="font-family: Times New Roman, Times, Serif; vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">Revenues</span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">$</span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-hidden: xdx2ixbrl1872">—</span></span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">$</span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">2,081,410</span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">$</span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">3,256,797</span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">$</span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">152,507</span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">$</span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">5,490,714</span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td></tr> <tr id="xdx_435_c20220701__20220930_eus-gaap--CostOfRevenue_zMGI7vOzOSqa" style="font-family: Times New Roman, Times, Serif; vertical-align: bottom; background-color: White"> <td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">Cost of sales</span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-hidden: xdx2ixbrl1878">—</span></span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">1,180,612</span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">1,851,089</span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">375,872</span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">3,407,573</span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td></tr> <tr id="xdx_43F_c20220701__20220930_eus-gaap--OperatingIncomeLoss_zRn6SGtWdvUc" style="font-family: Times New Roman, Times, Serif; vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">Income (loss) from operations</span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">(2,233,559</span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">)</span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">(2,688,835</span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">)</span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">592,795</span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">(817,731</span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">)</span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">(5,147,330</span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">)</span></span></td></tr> <tr id="xdx_435_c20220701__20220930_eus-gaap--OtherNonoperatingIncomeExpense_z7Fgho5zafe6" style="font-family: Times New Roman, Times, Serif; vertical-align: bottom; background-color: White"> <td style="font-family: Times New Roman, Times, Serif; text-align: left; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">Other income (expense), net</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">6,488,327</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">327,066</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">(1,819</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">)</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">(1,292</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">)</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">6,812,282</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td></tr> <tr id="xdx_433_c20220701__20220930_eus-gaap--NetIncomeLoss_zS94V7gInBj" style="font-family: Times New Roman, Times, Serif; vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-family: Times New Roman, Times, Serif; text-align: left; padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">Net income (loss)</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="border-bottom: Black 2.5pt double; font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">$</span></span></td><td style="border-bottom: Black 2.5pt double; font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">4,254,768</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="border-bottom: Black 2.5pt double; font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">$</span></span></td><td style="border-bottom: Black 2.5pt double; font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">(2,361,769</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">)</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="border-bottom: Black 2.5pt double; font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">$</span></span></td><td style="border-bottom: Black 2.5pt double; font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">590,976</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="border-bottom: Black 2.5pt double; font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">$</span></span></td><td style="border-bottom: Black 2.5pt double; font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">(819,023</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">)</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="border-bottom: Black 2.5pt double; font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">$</span></span></td><td style="border-bottom: Black 2.5pt double; font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">1,664,952</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td></tr> </table> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="font-family: Times New Roman, Times, Serif; vertical-align: bottom"> <td style="font-family: Times New Roman, Times, Serif; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; font-weight: bold; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; font-weight: bold; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">Corporate</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; font-weight: bold"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; font-weight: bold; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; font-weight: bold; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">Drones</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; font-weight: bold"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; font-weight: bold; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; font-weight: bold; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">Sensors</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; font-weight: bold"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; font-weight: bold; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; font-weight: bold; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">SaaS</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; font-weight: bold"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; font-weight: bold; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; font-weight: bold; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">Total</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; font-weight: bold"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td></tr> <tr style="font-family: Times New Roman, Times, Serif; vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-family: Times New Roman, Times, Serif; font-weight: bold"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">Nine Months Ended September 30, 2023</span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td></tr> <tr id="xdx_430_c20230101__20230930_eus-gaap--Revenues_zEO7dEyXWlJ1" style="font-family: Times New Roman, Times, Serif; vertical-align: bottom; background-color: White"> <td style="font-family: Times New Roman, Times, Serif; width: 35%"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">Revenues</span></span></td><td style="font-family: Times New Roman, Times, Serif; width: 2%"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; width: 1%; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">$</span></span></td><td style="font-family: Times New Roman, Times, Serif; width: 9%; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-hidden: xdx2ixbrl1902">—</span></span></span></td><td style="font-family: Times New Roman, Times, Serif; width: 1%; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; width: 2%"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; width: 1%; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">$</span></span></td><td style="font-family: Times New Roman, Times, Serif; width: 9%; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">4,861,260</span></span></td><td style="font-family: Times New Roman, Times, Serif; width: 1%; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; width: 2%"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; width: 1%; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">$</span></span></td><td style="font-family: Times New Roman, Times, Serif; width: 9%; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">5,610,764</span></span></td><td style="font-family: Times New Roman, Times, Serif; width: 1%; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; width: 2%"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; width: 1%; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">$</span></span></td><td style="font-family: Times New Roman, Times, Serif; width: 9%; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">347,189</span></span></td><td style="font-family: Times New Roman, Times, Serif; width: 1%; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; width: 2%"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; width: 1%; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">$</span></span></td><td style="font-family: Times New Roman, Times, Serif; width: 9%; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">10,819,213</span></span></td><td style="font-family: Times New Roman, Times, Serif; width: 1%; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td></tr> <tr id="xdx_432_c20230101__20230930_eus-gaap--CostOfRevenue_zqpZDhzzJz4a" style="font-family: Times New Roman, Times, Serif; vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">Cost of sales</span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-hidden: xdx2ixbrl1908">—</span></span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">2,580,305</span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">3,213,058</span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">801,610</span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">6,594,973</span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td></tr> <tr id="xdx_43A_c20230101__20230930_eus-gaap--OperatingIncomeLoss_z4QEseWuyRi9" style="font-family: Times New Roman, Times, Serif; vertical-align: bottom; background-color: White"> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">Income (loss) from operations</span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">(7,240,686</span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">)</span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">(6,626,668</span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">)</span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">328,404</span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">(1,484,110</span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">)</span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">(15,023,060</span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">)</span></span></td></tr> <tr id="xdx_438_c20230101__20230930_eus-gaap--OtherNonoperatingIncomeExpense_ztbXqV3l4Vff" style="font-family: Times New Roman, Times, Serif; vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-family: Times New Roman, Times, Serif; text-align: left; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">Other expense, net</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">(2,559,654</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">)</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">(326,032</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">)</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">(960</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">)</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">(504</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">)</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">(2,887,150</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">)</span></span></td></tr> <tr id="xdx_439_c20230101__20230930_eus-gaap--NetIncomeLoss_pp0p0_zbXE5F6xkEwh" style="font-family: Times New Roman, Times, Serif; vertical-align: bottom; background-color: White"> <td style="font-family: Times New Roman, Times, Serif; text-align: left; padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">Net income (loss)</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="border-bottom: Black 2.5pt double; font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">$</span></span></td><td style="border-bottom: Black 2.5pt double; font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">(9,800,340</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">)</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="border-bottom: Black 2.5pt double; font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">$</span></span></td><td style="border-bottom: Black 2.5pt double; font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">(6,952,700</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">)</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="border-bottom: Black 2.5pt double; font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">$</span></span></td><td style="border-bottom: Black 2.5pt double; font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">327,444</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="border-bottom: Black 2.5pt double; font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">$</span></span></td><td style="border-bottom: Black 2.5pt double; font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">(1,484,614</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">)</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="border-bottom: Black 2.5pt double; font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">$</span></span></td><td style="border-bottom: Black 2.5pt double; font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">(17,910,210</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">)</span></span></td></tr> <tr style="font-family: Times New Roman, Times, Serif; vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td></tr> <tr style="font-family: Times New Roman, Times, Serif; vertical-align: bottom; background-color: White"> <td style="font-family: Times New Roman, Times, Serif; font-weight: bold"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">Nine Months Ended September 30, 2022</span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td></tr> <tr id="xdx_43F_c20220101__20220930_eus-gaap--Revenues_zTS0D4br4Xu" style="font-family: Times New Roman, Times, Serif; vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">Revenues</span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">$</span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-hidden: xdx2ixbrl1932">—</span></span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">$</span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">7,856,573</span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">$</span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">6,283,907</span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">$</span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">480,085</span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">$</span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">14,620,565</span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td></tr> <tr id="xdx_436_c20220101__20220930_eus-gaap--CostOfRevenue_zmNRGN9ClZ13" style="font-family: Times New Roman, Times, Serif; vertical-align: bottom; background-color: White"> <td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">Cost of sales</span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-hidden: xdx2ixbrl1938">—</span></span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">4,339,712</span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">3,578,184</span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">704,540</span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">8,622,436</span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td></tr> <tr id="xdx_431_c20220101__20220930_eus-gaap--OperatingIncomeLoss_zuHndU2U15oi" style="font-family: Times New Roman, Times, Serif; vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">Loss from operations</span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">(8,194,751</span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">)</span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">(7,204,483</span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">)</span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">(217,328</span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">)</span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">(2,401,289</span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">)</span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">(18,017,851</span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">)</span></span></td></tr> <tr id="xdx_430_c20220101__20220930_eus-gaap--OtherNonoperatingIncomeExpense_zBAFPU5BR5Mb" style="font-family: Times New Roman, Times, Serif; vertical-align: bottom; background-color: White"> <td style="font-family: Times New Roman, Times, Serif; text-align: left; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">Other income (expense), net</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">6,491,117</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">3,114</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">(3,638</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">)</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">(6,098</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">)</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">6,484,495</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td></tr> <tr id="xdx_43C_c20220101__20220930_eus-gaap--NetIncomeLoss_zvkcLidpKUpd" style="font-family: Times New Roman, Times, Serif; vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-family: Times New Roman, Times, Serif; text-align: left; padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">Net loss</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="border-bottom: Black 2.5pt double; font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">$</span></span></td><td style="border-bottom: Black 2.5pt double; font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">(1,703,634</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">)</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="border-bottom: Black 2.5pt double; font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">$</span></span></td><td style="border-bottom: Black 2.5pt double; font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">(7,201,369</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">)</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="border-bottom: Black 2.5pt double; font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">$</span></span></td><td style="border-bottom: Black 2.5pt double; font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">(220,966</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">)</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="border-bottom: Black 2.5pt double; font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">$</span></span></td><td style="border-bottom: Black 2.5pt double; font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">(2,407,387</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">)</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="border-bottom: Black 2.5pt double; font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">$</span></span></td><td style="border-bottom: Black 2.5pt double; font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">(11,533,356</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">)</span></span></td></tr> </table> <p style="font: 10pt Times New Roman, Times, Serif; display: none; margin: 0pt 0; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i> </i></b></span></span></p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; display: none; margin-top: 0; margin-bottom: 6pt; width: 100%"><tr style="vertical-align: top; text-align: justify"> <td style="width: 15pt; text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">⁽¹⁾</span></td><td style="width: 5pt"></td><td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Includes goodwill impairment $<span class="xdx_phnt_RGlzY2xvc3VyZSAtIFNjaGVkdWxlIG9mIFNlZ21lbnQgUmVwb3J0aW5nIE5ldCAoTG9zcykgSW5jb21lIChEZXRhaWxzKSAoUGFyZW50aGV0aWNhbCkA" id="xdx_90B_ecustom--GoodwillImpairmentLosses_c20220101__20221231__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__custom--DroneAndSaaSMember_zFheMLTdbFR1">41,687,871 </span></span><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">for the Drone and SaaS reporting segments</span></td> </tr></table> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; display: none; margin-top: 0; margin-bottom: 6pt; width: 100%"><tr style="vertical-align: top; text-align: justify"> <td style="width: 15pt; text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">⁽²⁾</span></td><td style="width: 5pt"></td><td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Includes goodwill impairment $<span class="xdx_phnt_RGlzY2xvc3VyZSAtIFNjaGVkdWxlIG9mIFNlZ21lbnQgUmVwb3J0aW5nIE5ldCAoTG9zcykgSW5jb21lIChEZXRhaWxzKSAoUGFyZW50aGV0aWNhbCkA" id="xdx_903_ecustom--GoodwillImpairmentLosses_c20220101__20221231__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__custom--SaaSMember_zO3HVqlPkc36">12,357,921 </span></span><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">for the SaaS reporting segment</span></td></tr></table> 1627177 1755712 101043 3483932 990413 990457 288988 2269858 -3229837 -2288870 168820 -640226 -5990113 -2063936 35322 -960 -441 -2030015 -5293773 -2253548 167860 -640667 -8020128 2081410 3256797 152507 5490714 1180612 1851089 375872 3407573 -2233559 -2688835 592795 -817731 -5147330 6488327 327066 -1819 -1292 6812282 4254768 -2361769 590976 -819023 1664952 4861260 5610764 347189 10819213 2580305 3213058 801610 6594973 -7240686 -6626668 328404 -1484110 -15023060 -2559654 -326032 -960 -504 -2887150 -9800340 -6952700 327444 -1484614 -17910210 7856573 6283907 480085 14620565 4339712 3578184 704540 8622436 -8194751 -7204483 -217328 -2401289 -18017851 6491117 3114 -3638 -6098 6484495 -1703634 -7201369 -220966 -2407387 -11533356 41687871 12357921 <p id="xdx_892_eus-gaap--ScheduleOfRevenuesFromExternalCustomersAndLongLivedAssetsByGeographicalAreasTableTextBlock_z0qT5j2agHf" style="font: 10pt Times New Roman, Times, Serif; display: none; margin: 0pt 0; text-align: justify; text-indent: 33.75pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span><span id="xdx_8B5_zLz0N2fIWIgc" style="display: none">Schedule of Segment Revenues by Geographic Area</span></span></p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="font-family: Times New Roman, Times, Serif; vertical-align: bottom"> <td style="font-family: Times New Roman, Times, Serif; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; font-weight: bold; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td colspan="2" id="xdx_4B7_us-gaap--StatementBusinessSegmentsAxis_custom--DronesAndCustomManufacturingMember_zfWrxkuCz888" style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; font-weight: bold; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">Drones</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; font-weight: bold"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; font-weight: bold; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td colspan="2" id="xdx_4B1_us-gaap--StatementBusinessSegmentsAxis_custom--SensorsMember_z0Tu2YkIf4zg" style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; font-weight: bold; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">Sensors</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; font-weight: bold"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; font-weight: bold; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td colspan="2" id="xdx_4B7_us-gaap--StatementBusinessSegmentsAxis_custom--SaaSMember_zWqyESguMD1b" style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; font-weight: bold; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">SaaS</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; font-weight: bold"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; font-weight: bold; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td colspan="2" id="xdx_4BB_zIzIj9S9tmz5" style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; font-weight: bold; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">Total</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; font-weight: bold"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td></tr> <tr style="font-family: Times New Roman, Times, Serif; vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-family: Times New Roman, Times, Serif; font-weight: bold"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">Three Months Ended September 30, 2023</span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td></tr> <tr id="xdx_43D_c20230701__20230930__srt--StatementGeographicalAxis__srt--NorthAmericaMember_eus-gaap--Revenues_zlwQKzWUPNHf" style="font-family: Times New Roman, Times, Serif; vertical-align: bottom; background-color: White"> <td style="font-family: Times New Roman, Times, Serif; width: 40%; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">North America</span></span></td><td style="font-family: Times New Roman, Times, Serif; width: 2%"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; width: 1%; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">$</span></span></td><td style="font-family: Times New Roman, Times, Serif; width: 11%; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">547,012</span></span></td><td style="font-family: Times New Roman, Times, Serif; width: 1%; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; width: 2%"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; width: 1%; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">$</span></span></td><td style="font-family: Times New Roman, Times, Serif; width: 11%; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">570,170</span></span></td><td style="font-family: Times New Roman, Times, Serif; width: 1%; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; width: 2%"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; width: 1%; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">$</span></span></td><td style="font-family: Times New Roman, Times, Serif; width: 11%; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">57,447</span></span></td><td style="font-family: Times New Roman, Times, Serif; width: 1%; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; width: 2%"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; width: 1%; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">$</span></span></td><td style="font-family: Times New Roman, Times, Serif; width: 11%; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">1,174,629</span></span></td><td style="font-family: Times New Roman, Times, Serif; width: 1%; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td></tr> <tr id="xdx_439_c20230701__20230930__srt--StatementGeographicalAxis__srt--LatinAmericaMember_eus-gaap--Revenues_zzePSOU8JeUk" style="font-family: Times New Roman, Times, Serif; vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">Latin America</span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">383,232</span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">80,873</span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">38,196</span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">502,301</span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td></tr> <tr id="xdx_43A_c20230701__20230930__srt--StatementGeographicalAxis__us-gaap--EMEAMember_eus-gaap--Revenues_zw2zaj0IiXof" style="font-family: Times New Roman, Times, Serif; vertical-align: bottom; background-color: White"> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">Europe, Middle East and Africa</span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">628,768</span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">752,583</span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">661</span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">1,382,012</span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td></tr> <tr id="xdx_435_c20230701__20230930__srt--StatementGeographicalAxis__srt--AsiaPacificMember_eus-gaap--Revenues_zK82erfTddnh" style="font-family: Times New Roman, Times, Serif; vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">Asia Pacific</span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">68,165</span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">342,502</span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">4,739</span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">415,406</span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td></tr> <tr id="xdx_435_c20230701__20230930__srt--StatementGeographicalAxis__custom--OtherGeographicAreaMember_eus-gaap--Revenues_zi31sTwPgpN9" style="font-family: Times New Roman, Times, Serif; vertical-align: bottom; background-color: White"> <td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">Other</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-hidden: xdx2ixbrl1986">—</span></span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">9,584</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-hidden: xdx2ixbrl1988">—</span></span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">9,584</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td></tr> <tr id="xdx_432_c20230701__20230930_eus-gaap--Revenues_zqNoS6mfHyS4" style="font-family: Times New Roman, Times, Serif; vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">Total</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="border-bottom: Black 2.5pt double; font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">$</span></span></td><td style="border-bottom: Black 2.5pt double; font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">1,627,177</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="border-bottom: Black 2.5pt double; font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">$</span></span></td><td style="border-bottom: Black 2.5pt double; font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">1,755,712</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="border-bottom: Black 2.5pt double; font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">$</span></span></td><td style="border-bottom: Black 2.5pt double; font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">101,043</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="border-bottom: Black 2.5pt double; font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">$</span></span></td><td style="border-bottom: Black 2.5pt double; font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">3,483,932</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td></tr> <tr style="font-family: Times New Roman, Times, Serif; vertical-align: bottom; background-color: White"> <td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td></tr> <tr style="font-family: Times New Roman, Times, Serif; vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-family: Times New Roman, Times, Serif; font-weight: bold"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">Three Months Ended September 30, 2022</span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td></tr> <tr id="xdx_43F_c20220701__20220930__srt--StatementGeographicalAxis__srt--NorthAmericaMember_eus-gaap--Revenues_zbdJQ7Rglso4" style="font-family: Times New Roman, Times, Serif; vertical-align: bottom; background-color: White"> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">North America</span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">$</span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">1,191,083</span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">$</span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">1,182,218</span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">$</span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">152,507</span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">$</span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">2,525,808</span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td></tr> <tr id="xdx_43D_c20220701__20220930__srt--StatementGeographicalAxis__us-gaap--EMEAMember_eus-gaap--Revenues_zKPHhqBIjV23" style="font-family: Times New Roman, Times, Serif; vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">Europe, Middle East and Africa</span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">603,443</span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">1,250,610</span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-hidden: xdx2ixbrl2003">—</span></span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">1,854,053</span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td></tr> <tr id="xdx_43F_c20220701__20220930__srt--StatementGeographicalAxis__srt--AsiaPacificMember_eus-gaap--Revenues_ziU1lzgFgOmi" style="font-family: Times New Roman, Times, Serif; vertical-align: bottom; background-color: White"> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">Asia Pacific</span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">286,884</span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">696,954</span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-hidden: xdx2ixbrl2008">—</span></span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">983,838</span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td></tr> <tr id="xdx_438_c20220701__20220930__srt--StatementGeographicalAxis__custom--OtherGeographicAreaMember_eus-gaap--Revenues_z8IXkvomk0W6" style="font-family: Times New Roman, Times, Serif; vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">Other</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-hidden: xdx2ixbrl2011">—</span></span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">127,015</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-hidden: xdx2ixbrl2013">—</span></span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">127,015</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td></tr> <tr id="xdx_431_c20220701__20220930_eus-gaap--Revenues_zmSr10wWeQT9" style="font-family: Times New Roman, Times, Serif; vertical-align: bottom; background-color: White"> <td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">Total</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="border-bottom: Black 2.5pt double; font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">$</span></span></td><td style="border-bottom: Black 2.5pt double; font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">2,081,410</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="border-bottom: Black 2.5pt double; font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">$</span></span></td><td style="border-bottom: Black 2.5pt double; font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">3,256,797</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="border-bottom: Black 2.5pt double; font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">$</span></span></td><td style="border-bottom: Black 2.5pt double; font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">152,507</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="border-bottom: Black 2.5pt double; font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">$</span></span></td><td style="border-bottom: Black 2.5pt double; font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">5,490,714</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td></tr> </table> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b> </b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>AGEAGLE AERIAL SYSTEMS INC. AND SUBSIDIARIES</b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS</b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2023 AND 2022</b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>(UNAUDITED)</b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b> </b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Note 11 – Segment Information - Continued</b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="font-family: Times New Roman, Times, Serif; vertical-align: bottom"> <td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; font-weight: bold; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td colspan="2" id="xdx_4B7_us-gaap--StatementBusinessSegmentsAxis_custom--DronesAndCustomManufacturingMember_zx5eeZ3lRx69" style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; font-weight: bold; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">Drones</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; font-weight: bold"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; font-weight: bold; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td colspan="2" id="xdx_4B1_us-gaap--StatementBusinessSegmentsAxis_custom--SensorsMember_zahG7u2SxnWl" style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; font-weight: bold; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">Sensors</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; font-weight: bold"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; font-weight: bold; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td colspan="2" id="xdx_4B7_us-gaap--StatementBusinessSegmentsAxis_custom--SaaSMember_zKuayK7C5ds3" style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; font-weight: bold; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">SaaS</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; font-weight: bold"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; font-weight: bold; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td colspan="2" id="xdx_4BB_z6zyIiM3Aeq8" style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; font-weight: bold; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">Total</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; font-weight: bold"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td></tr> <tr style="font-family: Times New Roman, Times, Serif; vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-family: Times New Roman, Times, Serif; font-weight: bold"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">Nine Months Ended September 30, 2023</span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td></tr> <tr id="xdx_438_c20230101__20230930__srt--StatementGeographicalAxis__srt--NorthAmericaMember_eus-gaap--Revenues_zNP1FY9a9GAa" style="font-family: Times New Roman, Times, Serif; vertical-align: bottom; background-color: White"> <td style="font-family: Times New Roman, Times, Serif; width: 40%; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">North America</span></span></td><td style="font-family: Times New Roman, Times, Serif; width: 2%"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; width: 1%; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">$</span></span></td><td style="font-family: Times New Roman, Times, Serif; width: 11%; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">1,701,100</span></span></td><td style="font-family: Times New Roman, Times, Serif; width: 1%; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; width: 2%"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; width: 1%; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">$</span></span></td><td style="font-family: Times New Roman, Times, Serif; width: 11%; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">1,783,481</span></span></td><td style="font-family: Times New Roman, Times, Serif; width: 1%; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; width: 2%"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; width: 1%; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">$</span></span></td><td style="font-family: Times New Roman, Times, Serif; width: 11%; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">303,593</span></span></td><td style="font-family: Times New Roman, Times, Serif; width: 1%; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; width: 2%"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; width: 1%; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">$</span></span></td><td style="font-family: Times New Roman, Times, Serif; width: 11%; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">3,788,174</span></span></td><td style="font-family: Times New Roman, Times, Serif; width: 1%; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td></tr> <tr id="xdx_431_c20230101__20230930__srt--StatementGeographicalAxis__srt--LatinAmericaMember_eus-gaap--Revenues_zhe0dRjwjYL7" style="font-family: Times New Roman, Times, Serif; vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">Latin America</span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">1,256,429</span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">221,334</span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">38,197</span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">1,515,960</span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td></tr> <tr id="xdx_432_c20230101__20230930__srt--StatementGeographicalAxis__us-gaap--EMEAMember_eus-gaap--Revenues_z2qfIZTjJNjc" style="font-family: Times New Roman, Times, Serif; vertical-align: bottom; background-color: White"> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">Europe, Middle East and Africa</span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">1,714,967</span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">2,611,108</span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">661</span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">4,326,736</span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td></tr> <tr id="xdx_43E_c20230101__20230930__srt--StatementGeographicalAxis__srt--AsiaPacificMember_eus-gaap--Revenues_zd6FMS05Lhg9" style="font-family: Times New Roman, Times, Serif; vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">Asia Pacific</span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">188,764</span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">949,040</span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">4,738</span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">1,142,542</span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td></tr> <tr id="xdx_434_c20230101__20230930__srt--StatementGeographicalAxis__custom--OtherGeographicAreaMember_eus-gaap--Revenues_z7Hozz5iVgNi" style="font-family: Times New Roman, Times, Serif; vertical-align: bottom; background-color: White"> <td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">Other</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-hidden: xdx2ixbrl2041">—</span></span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">45,801</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-hidden: xdx2ixbrl2043">—</span></span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">45,801</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td></tr> <tr id="xdx_437_c20230101__20230930_eus-gaap--Revenues_z3oxqSi66jI3" style="font-family: Times New Roman, Times, Serif; vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">Total</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="border-bottom: Black 2.5pt double; font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">$</span></span></td><td style="border-bottom: Black 2.5pt double; font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">4,861,260</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="border-bottom: Black 2.5pt double; font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">$</span></span></td><td style="border-bottom: Black 2.5pt double; font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">5,610,764</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="border-bottom: Black 2.5pt double; font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">$</span></span></td><td style="border-bottom: Black 2.5pt double; font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">347,189</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="border-bottom: Black 2.5pt double; font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">$</span></span></td><td style="border-bottom: Black 2.5pt double; font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">10,819,213</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td></tr> <tr style="font-family: Times New Roman, Times, Serif; vertical-align: bottom; background-color: White"> <td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td></tr> <tr style="font-family: Times New Roman, Times, Serif; vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-family: Times New Roman, Times, Serif; font-weight: bold"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">Nine Months Ended September 30, 2022</span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td></tr> <tr id="xdx_439_c20220101__20220930__srt--StatementGeographicalAxis__srt--NorthAmericaMember_eus-gaap--Revenues_zDkzTPBENBVj" style="font-family: Times New Roman, Times, Serif; vertical-align: bottom; background-color: White"> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">North America</span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">$</span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">4,473,236</span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">$</span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">2,350,426</span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">$</span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">480,085</span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">$</span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">7,303,747</span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td></tr> <tr id="xdx_439_c20220101__20220930__srt--StatementGeographicalAxis__us-gaap--EMEAMember_eus-gaap--Revenues_zdVxoqqoaID7" style="font-family: Times New Roman, Times, Serif; vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">Europe, Middle East and Africa</span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">2,606,120</span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">2,400,744</span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-hidden: xdx2ixbrl2058">—</span></span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">5,006,864</span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td></tr> <tr id="xdx_433_c20220101__20220930__srt--StatementGeographicalAxis__srt--AsiaPacificMember_eus-gaap--Revenues_z8WBifstBORj" style="font-family: Times New Roman, Times, Serif; vertical-align: bottom; background-color: White"> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">Asia Pacific</span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">777,217</span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">1,241,632</span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-hidden: xdx2ixbrl2063">—</span></span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">2,018,849</span></span></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td></tr> <tr id="xdx_43E_c20220101__20220930__srt--StatementGeographicalAxis__custom--OtherGeographicAreaMember_eus-gaap--Revenues_zB6tHAimY7c7" style="font-family: Times New Roman, Times, Serif; vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">Other</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-hidden: xdx2ixbrl2066">—</span></span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">291,105</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"><span style="-sec-ix-hidden: xdx2ixbrl2068">—</span></span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">291,105</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td></tr> <tr id="xdx_438_c20220101__20220930_eus-gaap--Revenues_zMc5ybmDDh1d" style="font-family: Times New Roman, Times, Serif; vertical-align: bottom; background-color: White"> <td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">Total</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="border-bottom: Black 2.5pt double; font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">$</span></span></td><td style="border-bottom: Black 2.5pt double; font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">7,856,573</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="border-bottom: Black 2.5pt double; font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">$</span></span></td><td style="border-bottom: Black 2.5pt double; font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">6,283,907</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="border-bottom: Black 2.5pt double; font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">$</span></span></td><td style="border-bottom: Black 2.5pt double; font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">480,085</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td> <td style="border-bottom: Black 2.5pt double; font-family: Times New Roman, Times, Serif; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">$</span></span></td><td style="border-bottom: Black 2.5pt double; font-family: Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif">14,620,565</span></span></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif"> </span></span></td></tr> </table> 547012 570170 57447 1174629 383232 80873 38196 502301 628768 752583 661 1382012 68165 342502 4739 415406 9584 9584 1627177 1755712 101043 3483932 1191083 1182218 152507 2525808 603443 1250610 1854053 286884 696954 983838 127015 127015 2081410 3256797 152507 5490714 1701100 1783481 303593 3788174 1256429 221334 38197 1515960 1714967 2611108 661 4326736 188764 949040 4738 1142542 45801 45801 4861260 5610764 347189 10819213 4473236 2350426 480085 7303747 2606120 2400744 5006864 777217 1241632 2018849 291105 291105 7856573 6283907 480085 14620565 <p id="xdx_809_eus-gaap--SubsequentEventsTextBlock_zcsrq90HM5Ye" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Note 12 – <span id="xdx_829_z9dQdMmZY6t1">Subsequent Events</span></b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b> </b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i>Second Amendment to 8% Original Issue Discount Promissory Note</i></b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b> </b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">On October 5, 2023, the Company and Alpha Capital Anstalt (the “Investor”) entered into a Second Note Amendment Agreement (the “Second Amendment”), which provides for the following:(i) the Deferred Payments (defined in the Note Amendment Agreement) shall be due and payable on December 15, 2023; (ii) the Amortization Payments (defined in the Note) scheduled for September 15, 2023, October 1, 2023, and November 1, 2023 shall be deferred and made part of the Amortization Payments commencing in January 2024; and (iii) <span id="xdx_908_ecustom--NetProceedsPercentage_pid_dp_uPure_c20231004__20231005__us-gaap--TypeOfArrangementAxis__custom--SecondNoteAmendmentAgreemenMember__us-gaap--SubsequentEventTypeAxis__us-gaap--SubsequentEventMember_zLHNlf86Ue0e">50</span></span></span><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">% of any net proceeds above $<span id="xdx_90C_eus-gaap--ProceedsFromNotesPayable_c20231004__20231005__us-gaap--TypeOfArrangementAxis__custom--SecondNoteAmendmentAgreemenMember__us-gaap--SubsequentEventTypeAxis__us-gaap--SubsequentEventMember_zVTevkyXR2O6">2,000,000 </span></span></span><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">from any equity financing between the date of the Second Amendment and December 15, 2023, shall be used to prepay the Note. The Second Amendment also partially waives the Event of Default in Section 3 (a)(vii) of the Note as a result of the resignation of a majority of the officers listed therein.</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i>Notice of Special Meeting of Stockholders</i></b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">On October 10, 2023, the Company filed a Definitive Proxy Statement on Schedule 14A with the SEC, providing notice of a Special Meeting of the Shareholders to be held on November 14, 2023 at 11:00 AM local time at 700 NW 1^st Avenue, Suite 1200, Miami, Florida 33136 for the following purposes:</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">(1) To authorize the Board of Directors (the “Board”), at the discretion of the Board, to file an amendment to the Company’s Articles of Incorporation, as amended to date, to authorize a reverse stock split of the Company’s Common Stock with a ratio in the range between and including <span id="xdx_907_eus-gaap--StockholdersEquityReverseStockSplit_c20231009__20231010__us-gaap--SubsequentEventTypeAxis__us-gaap--SubsequentEventMember_zgYwL8qexhs3">1-for-10 shares and 1-for-20 shares</span></span></span><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">, for the primary purpose of maintaining the Company’s listing on NYSE American (the “Reverse Split Proposal”);</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>AGEAGLE AERIAL SYSTEMS INC. AND SUBSIDIARIES</b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS</b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2023 AND 2022</b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>(UNAUDITED)</b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b> </b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Note 12 – Subsequent Events - Continued</b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b> </b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">(2) To amend the Company’s 2017 Omnibus Equity Incentive Plan to increase the number of shares of Common Stock authorized for issuance under the plan from <span id="xdx_900_eus-gaap--CommonStockSharesAuthorized_iI_pp0d_c20231010__srt--RangeAxis__srt--MinimumMember__us-gaap--SubsequentEventTypeAxis__us-gaap--SubsequentEventMember_zZa6kW3DZdse">10,000,000 </span></span></span><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">shares to <span id="xdx_90E_eus-gaap--CommonStockSharesAuthorized_iI_pp0d_c20231010__srt--RangeAxis__srt--MaximumMember__us-gaap--SubsequentEventTypeAxis__us-gaap--SubsequentEventMember_zr2LPoTtlEJc">15,000,000 </span></span></span><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">shares before the Reverse Split (the “Plan Amendment Proposal”); and</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">(3) To consider and vote upon a proposal to adjourn the Special Meeting to a later date or dates, if necessary, to permit further solicitation and vote of proxies if, based upon the tabulated vote at the time of the Special Meeting, there are not sufficient votes to approve the foregoing Proposals (the “Adjournment Proposal”).</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The Company will also consider any other business that properly comes before the Special Meeting.</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Shareholders of record of the Company’s Common Stock at the close of business on October 6, 2023 are entitled to notice of, and to vote at, the Special Meeting or any adjournment or postponement thereof.</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i>Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers</i></b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">As previously reported, on August 15, 2023, AgEagle Aerial Systems Inc. (the “Company”) received notice (“Notice”) from Ms. Nicole Fernandez-McGovern, the Company’s then current Chief Financial Officer, that she will be exiting the Company and the Board accepted her Notice as a voluntary resignation and not of termination for Good Reason. The Board of Directors, under the terms of her employment offer letter, agreed to allow Ms. Fernandez-McGovern to continue as Chief Financial Officer for a period of up to 90 days after the Notice. Ms. Fernandez-McGovern last day was effective October 13, 2023, after approximately 59 days of service.</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Effective October 13, 2023, Mr. Mark DiSiena was appointed as the Company’s principal financial and accounting officer and serve as Interim Chief Financial Officer until such time as his successor is determined by the Board of Directors. Mr. DiSiena had been our Company’s financial consultant since October 2, 2023.</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">In his role as principal financial and accounting officer, he is replacing Ms. Nicole Fernandez-McGovern whose last day of employment, as determined by the Board of Directors was October 13, 2023. Pursuant to the terms of the Statement of Work Agreement by and between the Company and Mr. DiSiena (the “Agreement”), the Company paid Mr. DiSiena $250 per hour not to exceed 40 hours per week, unless written approval is obtained, for services initially provided in his role as a consultant to the Company as outlined in the addendum to the Agreement. This Agreement and the compensation terms thereunder, will continue in effect with Mr. DiSiena’s appointment to the role as Interim Chief Financial Officer.</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">There is no family relationship between Mr. DiSiena and any other executive officer or director of the Company. There have been no related transactions, and none are currently proposed between or among Mr.DiSiena, the Company, executive officer, director, promoter or control person.</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Grant Begley, an independent member of the Board of Directors since June 2016, has been elected Chairman of the Board; and former Chairman Barrett Mooney will continue to serve as AgEagle’s Chief Executive Officer and as a member of the Board.</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">See also Note 6 – Promissory Note for a Second Note Amendment Agreement executed on October 5, 2023.</span></span></p> 0.50 2000000 1-for-10 shares and 1-for-20 shares 10000000 15000000 4349837 14590566 2213040 2888879 6685847 4038508 1029548 1292570 185000 185000 14463272 22995523 791155 952128 3952317 2019745 11507653 13565494 23179411 64867282 291066 282869 54184874 104683041 1845135 2526829 1680706 1901641 287381 496390 971140 10061501 628113 1235977 446456 451889 5384181 17148977 8875000 3161703 942404 446813 808021 106163 331726 1861539 10960399 28106128 0.001 0.001 25000000 25000000 0.001 0.001 35000 35000 5863 5863 0 0 6 0.001 0.001 250000000 250000000 88466613 88466613 75314988 75314988 88467 75315 154679363 127626536 -111553444 -51054344 10083 -70594 43224475 76576913 54184874 104683041 19094425 9760952 10876308 5504708 8218117 4256244 17757708 14957410 8113774 4082799 4935601 3150886 41687871 12357921 72494954 34549016 -64276837 -30292772 -59785 -7852 108532 6463101 -25960 -3712 -354242 87124 6023114 184092 -58253723 -30108680 -58253723 -30108680 -0.70 -0.70 -0.43 -0.43 83370411 83370411 70055832 70055832 -58253723 -30108680 -135439 67903 54762 2691 -58173046 -30179274 -172596 -2245377 -60591019 -30179274 58636365 58636 47241757 -20945664 26354729 6763091 6763 37175883 37182646 2516778 2517 8302851 8305368 540541 541 2999459 3000000 5319145 5319 24369681 24375000 550000 550 2906450 2907000 505167 505 122465 122970 483901 484 4507990 4508474 -67903 -67903 -2691 -2691 -30108680 -30108680 75314988 75315 127626536 -70594 -51054344 76576913 75314988 75315 127626536 -70594 -51054344 76576913 -498669 -499 2812999 2812500 10000 10 9919990 9920000 -4137 -4 6804545 6805 -6801 -172596 -172596 2245377 -2245377 4251151 4251 4579090 4583341 1927407 1927 2998073 3000000 1182349 1182349 482191 483 -483 185000 185 74165 74350 3420664 3420664 135439 135439 -54762 -54762 -58253723 -58253723 5863 6 88466613 88467 154679363 10083 -111553444 43224475 5863 6 88466613 88467 154679363 10083 -111553444 43224475 -58253723 -30108680 41687871 12357921 3420664 4508474 3938860 1501826 2907000 108532 -305399 215797 17691 -25960 -3712 46270 6463101 -637156 -514265 2605028 1981952 -230688 218493 -681556 552741 -716960 -2892728 -472604 393521 -345484 -179910 -340886 -20107670 -12463127 -315000 313769 525312 3645911 14568897 14916850 2964989 11425493 817029 1097808 618061 278264 -8359759 -42497624 4583341 37182646 8305368 9920000 3285000 74350 122970 17862691 45610984 364009 -10240729 -9349767 14590566 23940333 4349837 14590566 7590 3000000 6805 172596 2245377 483 2812500 5000000 3000000 5625000 24375000 <p id="xdx_803_eus-gaap--BusinessDescriptionAndBasisOfPresentationTextBlock_zgg7XkjdJA49" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Note 1 – <span>Description of Business</span></b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> <span id="xdx_828_zo9PIrs1liOk" style="display: none">Description of the Business and Basis of Presentation</span></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0.5in; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">AgEagle™ Aerial Systems Inc. (“AgEagle” or the “Company”) is actively engaged in designing and delivering best-in-class drones, sensors and software that solve important problems for our customers. Founded in 2010, AgEagle was originally formed to pioneer proprietary, professional-grade, fixed-winged drones and aerial imagery-based data collection and analytics solutions for the agriculture industry. Today, the Company is earning distinction as a globally respected market leader offering customer-centric, advanced, autonomous unmanned aerial systems (“UAS”) which drive revenue at the intersection of flight hardware, sensors and software for industries that include agriculture, military/defense, public safety, surveying/mapping and utilities/engineering, among others. AgEagle has also achieved numerous regulatory firsts, earning governmental approvals for its commercial and tactical drones to fly Beyond Visual Line of Sight (“BVLOS”) and/or Operations Over People (“OOP”) in the United States, Canada, Brazil and the European Union and being awarded Blue UAS certification from the Defense Innovation Unit of the U.S. Department of Defense.</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">                AgEagle’s shift and expansion from solely manufacturing fixed-wing farm drones in 2018, to offering what the Company believes is one of the industry’s best fixed-wing, full-stack drone solutions, culminated in 2021 when the Company acquired three market-leading companies engaged in producing UAS airframes, sensors and software for commercial and government use. In addition to a robust portfolio of proprietary, connected hardware and software products; an established global network of over 200 UAS resellers; and enterprise customers worldwide; these acquisitions also brought AgEagle a highly valuable workforce comprised largely of experienced engineers and technologists with deep expertise in the fields of robotics, automation, manufacturing and data science. In 2022, the Company succeeded in integrating all three acquired companies with AgEagle to form one global company focused on taking autonomous flight performance to a higher level.</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0.5in; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Our core technological capabilities include robotics and robotics systems autonomy; advanced thermal and multispectral sensor design and development; embedded software and firmware; secure wireless digital communications and networks; lightweight airframes; small UAS design, integration and operations; power electronics and propulsion systems; controls and systems integration; fixed wing flight; flight management software; data capture and analytics; human-machine interface development and integrated mission solutions.</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0.5in; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">In January 2021, AgEagle acquired MicaSense™, Inc. (“MicaSense”). Founded in 2014, MicaSense has been at the forefront of advanced drone sensor development since its founding in 2014, having formed integration partnerships with several leading fixed wing and multi-rotor drone manufacturers. MicaSense’s patented, high precision thermal and multispectral sensors serve the aerial mapping and analytics needs of the agriculture market. MicaSense’s high performance proprietary products have global distribution in over 75 countries.</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0.5in; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">In April 2021, AgEagle acquired Measure Global, Inc. (“Measure”). Founded in 2020, Measure serves a world class customer base, Measure enables its customers to realize the transformative benefits of drone technology through its <i>Ground Control</i> solution. Offered as Software-as-a-Service (SaaS), <i>Ground Control </i>is a cloud-based, plug-and-play operating system that empowers pilots and large enterprises with everything they need to operate drone fleets, fly autonomously, collaborate globally, visualize data, and integrate with existing business systems and processes.</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0.5in; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">In October 2021, AgEagle acquired senseFly S.A. and concurrent with the acquisition, AgEagle Aerial, Inc. (“AgEagle Aerial), a wholly-owned subsidiary of the AgEagle, acquired senseFly Inc. Collectively senseFly S.A. and senseFly, Inc. are referred to as “senseFly”. Founded in 2009, senseFly provides fixed-wing drone solutions for commercial and government markets that simplify the collection and analysis of geospatial data, allowing professionals to make better decisions, faster. senseFly develops and produces a proprietary line of <i>eBee</i>-branded, high performance, fixed-wing drones which have flown more than one million flights around the world.</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> <b>AGEAGLE AERIAL SYSTEMS INC. AND SUBSIDIARIES </b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>NOTES TO CONSOLIDATED FINANCIAL STATEMENTS</b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>FOR THE YEARS ENDED DECEMBER 31, 2022 AND 2021</b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Note 1 – Description of Business – Continued</b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0.5in; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Collectively, MicaSense, Measure and senseFly are referred to as the “2021 Acquired Companies.”</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0.5in; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The Company is currently headquartered in Wichita, Kansas, where we house our sensor manufacturing operations, and we operate business and drone manufacturing operations in Raleigh, North Carolina. In addition, the Company operates business and manufacturing operations in Lausanne, Switzerland in support of our international business activities.</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0.5in; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The Company intends to grow our business and preserve our leadership position by developing new drones, sensors and software and capturing a significant share of the global drone market. In addition, we expect to accelerate our growth and expansion through strategic acquisitions of companies offering distinct technological and competitive advantages and have defensible IP protection in place, if applicable.</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p id="xdx_805_eus-gaap--SignificantAccountingPoliciesTextBlock_zFQ2qCQvTZ6f" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Note 2 – <span id="xdx_824_z1Z8xXLG8lX8">Summary of Significant Accounting Policies</span></b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0.5in; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The summary of significant accounting policies presented below is designed to assist in understanding the Company’s consolidated financial statements. Such consolidated financial statements and accompanying notes are the representations of the Company’s management, who are responsible for their integrity and objectivity. These accounting policies conform to accounting principles generally accepted in the United States of America (“US GAAP”) in all material respects and have been consistently applied in preparing the accompanying consolidated financial statements.</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p id="xdx_841_eus-gaap--BasisOfAccountingPolicyPolicyTextBlock_z5sTR9J8fkql" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0.5in; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i><span id="xdx_86B_zTtOVjz4G9k5">Basis of Presentation and Consolidation</span> </i>- These consolidated financial statements are presented in United States dollars and have been prepared in accordance with US GAAP. The Company’s consolidated financial statements are prepared using the accrual method of accounting. The Company has elected December 31st as its fiscal year end. In the opinion of management, the Company has made all necessary adjustments, which include normal recurring adjustments, for a fair statement of the Company’s consolidated financial position and results of operations for the periods presented.</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0.5in; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The consolidated financial statements include the accounts of AgEagle and its wholly-owned subsidiaries, AgEagle Aerial, Inc., MicaSense, Measure and senseFly. All significant intercompany balances and transactions have been eliminated in consolidation.</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p id="xdx_848_ecustom--LiquidityAndGoingConcernPolicyTextBlock_z9IHBw9wUy1h" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0.5in; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i><span id="xdx_867_ziJMTWdlS2ka">Liquidity and Going Concern</span> </i>– In pursuit of the Company’s long-term growth strategy and recent acquisitions the Company has sustained continued operating losses. During the year ended December 31, 2022, the Company incurred a net loss of $<span id="xdx_90F_eus-gaap--NetIncomeLoss_iN_di_c20220101__20221231_zIWQDfrxA3Yl" title="Net loss">58,253,723</span> and used cash in operating activities of $<span id="xdx_904_eus-gaap--NetCashProvidedByUsedInOperatingActivities_iN_di_c20220101__20221231_z2ZBuLfOZqZi" title="Cash used in operating activities">20,107,670</span>. As of December 31, 2022, the Company has working capital of $<span id="xdx_902_ecustom--WorkingCapital_iI_c20221231_zk3s1rEn2HEj" title="Working capital">9,079,091</span>. While the Company has historically been successful in raising capital to meet its working capital needs, the ability to continue raising such capital to enable the Company to continue its growth is not guaranteed. Therefore, there is substantial doubt about the Company’s ability to continue as a going concern as the Company will require additional liquidity to continue its operations and meet its financial obligations for twelve months from the date these consolidated financial statements were issued. The Company is evaluating strategies to obtain the required additional funding for future operations and the restructuring of operations to grow revenues and reduce expenses.</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0.5in; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">If the Company is unable to generate significant sales growth in the near term and raise additional capital, there is a risk that the Company could default on additional obligations; and could be required to discontinue or significantly reduce the scope of its operations if no other means of financing operations are available. The consolidated financial statements do not include any adjustments relating to the recoverability and classification of recorded asset amounts or the amount and classification of liabilities or any other adjustment that might be necessary should the Company be unable to continue as a going concern.</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0.5in; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> <b>AGEAGLE AERIAL SYSTEMS INC. AND SUBSIDIARIES </b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>NOTES TO CONSOLIDATED FINANCIAL STATEMENTS</b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>FOR THE YEARS ENDED DECEMBER 31, 2022 AND 2021</b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Note 2 – Summary of Significant Accounting Policies – Continued</b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p id="xdx_84E_eus-gaap--IncomeTaxUncertaintiesPolicy_z4I6pxWN325e" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0.5in; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i><span id="xdx_863_znDwZ2QMjb12">Risks and Uncertainties</span> </i>– Global economic challenges, including the impact of the war in Ukraine, the COVID-19 pandemic, rising inflation and supply-chain disruptions, adverse labor market conditions could cause economic uncertainty and volatility. During the year ended December 31, 2022, the COVID-19 pandemic continued to have a significant negative impact on the unmanned aerial vehicle (“UAV”) systems industry, the Company’s customers and business globally. The aforementioned risks and their respective impacts on the UAV industry and the Company’s operational and financial performance remains uncertain and outside of the Company’s control. Specifically, because of the aforementioned continuing risks, the Company’s ability to access components and parts needed in order to manufacture its proprietary drones and sensors, and to perform quality testing have been, and continue to be, impacted. If either the Company or any of its third parties in the supply chain for materials used in our manufacturing and assembly processes continue to be adversely impacted, the Company’s supply chain may be further disrupted, limiting its ability to manufacture and assemble products. The Company expects the pandemic, inflation and supply-chain disruptions and its effects to continue to have a significant negative impact on its business for the duration of the pandemic and during the subsequent economic recovery, which could be for an extended period of time.</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p id="xdx_843_eus-gaap--UseOfEstimates_zAPhji5LLrS3" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0.5in; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i><span id="xdx_86A_zB0MwWDRT8W9">Use of Estimates</span> </i>- The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. Significant estimates include the reserve for obsolete inventory, valuation of stock issued for services and stock options, valuation of intangible assets, and the valuation of deferred tax assets.</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p id="xdx_843_eus-gaap--ComprehensiveIncomePolicyPolicyTextBlock_zpzjD0Y7gXF5" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0.5in; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i><span id="xdx_86F_zcnlEGatqZkg">Accumulated Other Comprehensive Income (Loss)</span> – </i>Accumulated Other Comprehensive Income (Loss) refers to revenues, expenses, gains and losses that under US GAAP are included in accumulated other comprehensive (loss) a component of equity within the Consolidated Balance Sheets, rather than net loss in the consolidated statements of operations and comprehensive loss. Under existing accounting standards, other comprehensive income (loss) may include, among other things, unrecognized gains and losses on foreign currency translation and prior service credit related to benefit plans.</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p id="xdx_846_eus-gaap--FairValueMeasurementPolicyPolicyTextBlock_z8fwv9Vm3n0l" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0.5in; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i><span id="xdx_867_z2wyYtXd6ub6">Fair Value Measurements and Disclosures</span> </i>– Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 820, <i>Fair Value Measurement</i> (“ASC 820”), requires companies to determine fair value based on the price that would be received to sell the asset or paid to transfer the liability to a market participant. ASC 820 emphasizes that fair value is a market-based measurement, not an entity-specific measurement.</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0.5in; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The guidance requires that assets and liabilities carried at fair value be classified and disclosed in one of the following categories:</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <table cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; border-spacing: 0; width: 100%"> <tr style="font: 10pt Times New Roman, Times, Serif; height: 15px"> <td style="font: 10pt Times New Roman, Times, Serif; width: 0.25in"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p></td> <td style="font: 10pt Times New Roman, Times, Serif; width: 0.25in; vertical-align: top"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">●</span></span></p></td> <td style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Level 1: Quoted market prices in active markets for identical assets or liabilities.</span></span></p></td></tr> <tr style="font: 10pt Times New Roman, Times, Serif; height: 15px"> <td style="font: 10pt Times New Roman, Times, Serif"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p></td> <td style="font: 10pt Times New Roman, Times, Serif"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p></td> <td style="font: 10pt Times New Roman, Times, Serif"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p></td></tr> <tr style="font: 10pt Times New Roman, Times, Serif; height: 15px"> <td style="font: 10pt Times New Roman, Times, Serif"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p></td> <td style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">●</span></span></p></td> <td style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Level 2: Observable market-based inputs or unobservable inputs that are corroborated by market data.</span></span></p></td></tr> <tr style="font: 10pt Times New Roman, Times, Serif; height: 15px"> <td style="font: 10pt Times New Roman, Times, Serif"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p></td> <td style="font: 10pt Times New Roman, Times, Serif"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p></td> <td style="font: 10pt Times New Roman, Times, Serif"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p></td></tr> <tr style="font: 10pt Times New Roman, Times, Serif; height: 15px"> <td style="font: 10pt Times New Roman, Times, Serif"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p></td> <td style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">●</span></span></p></td> <td style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Level 3: Unobservable inputs that are not corroborated by market data.</span></span></p></td></tr> </table> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> <b>AGEAGLE AERIAL SYSTEMS INC. AND SUBSIDIARIES </b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>NOTES TO CONSOLIDATED FINANCIAL STATEMENTS</b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>FOR THE YEARS ENDED DECEMBER 31, 2022 AND 2021</b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Note 2 – Summary of Significant Accounting Policies – Continued</b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0.5in; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">For short-term classes of our financial instruments, which include cash and cash equivalents, accounts receivable, notes receivable and accounts payable and accrued expenses, and which are not reported at fair value, the carrying amounts approximate fair value due to their short-term nature. The outstanding loans related to the business acquisitions and COVID Loans are carried at face value, which approximates fair value, due to the government backed security which requires payments. The promissory note is carried at face value and approximates fair value due to its prevailing interest rate. As of December 31, 2022 and 2021, the Company did not have any financial assets or liabilities measured and recorded at fair value on the Company’s consolidated balance sheets on a recurring basis.</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p id="xdx_841_eus-gaap--CashAndCashEquivalentsPolicyTextBlock_zTfJhyGGIKt1" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0.5in; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i><span id="xdx_86A_zHDPIsssVhG4">Cash Concentrations</span></i> -The Company maintains its cash balances at financial institutions that are insured by the Federal Deposit Insurance Corporation (“FDIC”) up to $<span id="xdx_905_eus-gaap--CashFDICInsuredAmount_iI_c20221231_zCukQzBRJLz2" title="FDIC insured amount">250,000</span>. The Company has significant cash balances at financial institutions which throughout the year regularly exceed the federally insured limit of $<span id="xdx_902_eus-gaap--CashUninsuredAmount_iI_c20221231_zAVbx5Ad1Khj" title="Cash, uninsured amount">250,000</span>. Any loss incurred or a lack of access to such funds could have a significant adverse impact on the Company’s financial condition, results of operations, and cash flows.</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p id="xdx_84E_eus-gaap--TradeAndOtherAccountsReceivableUnbilledReceivablesPolicy_zLtjQXeF7HMh" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0.5in; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i><span id="xdx_864_zBOkUrrFIq4f">Trade Receivables and Credit Policy</span></i> <i>– </i>Trade receivables due from customers are uncollateralized customer obligations due under normal and customary trade terms. Trade receivables are stated at the amount billed to the customer. The Company generally does not charge interest on overdue customer account balances. Payments of trade receivables are allocated to the specific invoices identified on the customer’s remittance advice or, if unspecified, are applied to the earliest unpaid invoices. The Company estimates an allowance for doubtful accounts based upon an evaluation of the current status of trade receivables, historical experience, and other factors as necessary. It is reasonably possible that the Company’s estimate of the allowance for doubtful accounts will change.</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p id="xdx_84C_eus-gaap--InventoryPolicyTextBlock_zxp5P6AY5IMi" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0.5in; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i><span id="xdx_867_zaKqFsmjWdxc">Inventories</span></i> <i>–</i> Inventories, which consist of raw materials, finished goods and work-in-process, are stated at the lower of cost or net realizable value, with cost being determined by the average-cost method, which approximates the first-in, first-out method. Cost components include direct materials and direct labor. At each balance sheet date, the Company evaluates its inventories for excess quantities and obsolescence. This evaluation primarily includes an analysis of forecasted demand in relation to the inventory on hand, among consideration of other factors. The physical condition (e.g., age and quality) of the inventories is also considered in establishing its valuation. Based upon the evaluation, provisions are made to reduce excess or obsolete inventories to their estimated net realizable values. Once established, write-downs are considered permanent adjustments to the cost basis of the respective inventories. These adjustments are estimates, which could vary significantly, either favorably or unfavorably, from the amounts that the Company may ultimately realize upon the disposition of inventories if future economic conditions, customer inventory levels, product discontinuances, sales return levels or competitive conditions differ from the Company’s estimates and expectations.</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p id="xdx_84F_eus-gaap--BusinessCombinationsPolicy_zREf4c5vMTV" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0.5in; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i><span id="xdx_863_z5iVTx8SrL64">Business Combinations</span></i> - The Company records acquisitions pursuant to ASC Topic 805, <i>Business Combinations,</i> (“ASC 805”). The Company recognizes, with certain exceptions, <span id="xdx_90A_ecustom--PercentageFairValueOfAssetsAcquiredLiabilitiesAssumed_dp_c20220101__20221231_z44Bn561uD5g" title="Percentage fair value of assets acquired, liabilities assumed">100</span>% of the fair value of assets acquired, liabilities assumed, and non-controlling interests when the acquisition constitutes a change in control of the acquired entity. Shares issued in consideration for a business combination, contingent consideration arrangements and pre-acquisition loss and gain contingencies are all measured and recorded at their acquisition-date fair value. Subsequent changes to fair value of contingent consideration arrangements are generally reflected in earnings. Any in-process research and development assets acquired are capitalized as of the acquisition date. Acquisition-related transaction costs are expensed as incurred. The operating results of entities acquired are included in the accompanying consolidated statements of operations and comprehensive loss from the respective dates of acquisition.</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>AGEAGLE AERIAL SYSTEMS INC. AND SUBSIDIARIES </b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>NOTES TO CONSOLIDATED FINANCIAL STATEMENTS</b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>FOR THE YEARS ENDED DECEMBER 31, 2022 AND 2021</b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Note 2 – Summary of Significant Accounting Policies – Continued</b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p id="xdx_84C_eus-gaap--IntangibleAssetsFiniteLivedPolicy_zk3g0qLzwcgk" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 45px; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i><span id="xdx_86D_zKsHs3YeOHEj">Intangible Assets</span></i> - Intangible assets from acquired businesses are recognized at fair value on the acquisition date and consist of customer programs, trademarks, customer relationships, technology, and other intangible assets. Customer programs include values assigned to major programs of acquired businesses and represent the aggregate value associated with the customer relationships, contracts, technology, and trademarks underlying the associated program and are amortized on a straight-line basis over a period of expected cash flows used to measure fair value, which ranges from two to ten years.</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 45px; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; text-align: justify; margin: 0pt; text-indent: 45px"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">In accordance with ASC Topic 350-40, <i>Software - Internal-Use Software </i>(“ASC 350-40”), the Company capitalizes certain direct costs of developing internal-use software that are incurred in the application development stage, when developing or obtaining software for internal use. Once an application has reached the development stage, internal and external costs incurred to develop internal-use software are capitalized and amortized on a straight-line basis over the estimated useful life of the software (typically three to five years). Maintenance and enhancement costs, including those costs in the post-implementation stages, are typically expensed as incurred, unless such costs relate to substantial upgrades and enhancements to the software that result in added functionality, in which case the costs are capitalized and amortized on a straight-line basis over the estimated useful life of the software. The Company reviews the carrying value for impairment whenever facts and circumstances exist that would suggest that assets might be impaired or that the useful lives should be modified. Amortization expense related to capitalized internal-use software development costs is included in general and administrative expenses on the consolidated statements of operations and comprehensive loss. As of December 31, 2022 and December 31, 2021, capitalized software development costs for internal-use software, net of accumulated amortization, totaled $<span id="xdx_900_ecustom--CapitalizedSoftwareDevelopmentCostsForInternaluseSoftware_iI_c20221231_zy9zGqx1Zpd5" title="Capitalized software development costs for internal-use software">721,795</span> and $<span id="xdx_909_ecustom--CapitalizedSoftwareDevelopmentCostsForInternaluseSoftware_iI_c20211231_zMnDmALPi2Ff" title="Capitalized software development costs for internal-use software">278,264</span>, respectively, relate to the Company’s implementation of its enterprise resource planning (“ERP”) software. Internal-use software costs are included in intangibles, net on the consolidated balance sheets.</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 45px"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 45px; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">In accordance with ASC Topic 985-20, Software — Costs of Software to be Sold, Leased or Marketed the company capitalizes software development costs for software to be sold, leased or marketed. Costs associated with the planning and design phase of software development are classified as research and development costs and are expensed as incurred. Once technological feasibility has been established, a portion of the costs incurred in development, including coding, testing and quality assurance, are capitalized until available for general release to customers, and subsequently reported at the lower of unamortized cost or net realizable value. Amortization is recorded per the individual technology software being released and is included in use cost of sales on the consolidated statements of operations and comprehensive loss. Annual amortization is recognized on a straight-line basis over the remaining economic life of the software (typically two years). Unamortized capitalized costs determined to be in excess of the net realizable value of a solution are expensed at the date of such determination. As of December 31, 2022 and December 31, 2021, capitalized software development costs, net of accumulated amortization, totaled $<span id="xdx_908_eus-gaap--CapitalizedSoftwareDevelopmentCostsForSoftwareSoldToCustomers_iI_c20221231_zj3vyOm4TvNh" title="Capitalized software development costs">1,332,516</span> and $<span id="xdx_905_eus-gaap--CapitalizedSoftwareDevelopmentCostsForSoftwareSoldToCustomers_iI_c20211231_zQj40GDqNCg9" title="Capitalized software development costs">995,880</span>, respectively, and are included in intangibles, net on the consolidated balance sheets.</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">  </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0.5in; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Finite-lived intangible assets are evaluated for impairment periodically, or whenever events or changes in circumstances indicate that their related carrying amounts may not be recoverable in accordance with ASC Topic 360-10-15, <i>Impairment or Disposal of Long-Lived Assets</i>, (“ASC 360-10-15”). In evaluating intangible assets for recoverability, the Company uses its best estimate of future cash flows expected to result from the use of the asset and eventual disposition in accordance with ASC 360-10-15. To the extent that estimated future undiscounted net cash flows are less than the carrying amount, an impairment loss is recognized in an amount equal to the difference between the carrying value of such asset and its fair value.</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>AGEAGLE AERIAL SYSTEMS INC. AND SUBSIDIARIES </b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>NOTES TO CONSOLIDATED FINANCIAL STATEMENTS</b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>FOR THE YEARS ENDED DECEMBER 31, 2022 AND 2021</b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Note 2 – Summary of Significant Accounting Policies – Continued</b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0.5in; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Asset recoverability is an area involving management judgment, requiring assessment as to whether the carrying values of assets are supported by their undiscounted future cash flows. In estimating future cash flows, certain assumptions are required to be made in respect of highly uncertain matters such as revenue growth rates, operating expenses and terminal growth rates. For the year ended December 31, 2022, the Company determined the value of intangible assets was recoverable. As of December 31, 2022 and 2021, the Company reviewed the indicators for impairment and concluded that no impairment of its finite-lived intangible assets existed.</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p id="xdx_84D_eus-gaap--GoodwillAndIntangibleAssetsPolicyTextBlock_zhfY0d3e3Gg6" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0.5in; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i><span id="xdx_866_z45FD3MVYIl9">Goodwill</span> –</i> The assets and liabilities of acquired businesses are recorded in accordance with ASC 805. Goodwill represents costs in excess of fair values assigned to the underlying identifiable net assets of acquired businesses. Goodwill is not subject to amortization and is tested annually for impairment, or more frequently if events or changes in circumstances indicate that the carrying value of the goodwill may not be recoverable.</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0.5in; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">During the fourth quarter of 2022 and 2021, respectively, and in accordance with ASC Topic 350, <i>Intangibles – Goodwill and other</i> (“ASC 350”)<i>, </i>the Company performed its annual goodwill impairment test using a quantitative approach by comparing the carrying value of the reporting unit, including goodwill, to its fair value. If the carrying value of the reporting unit, including goodwill, exceeds its fair value, a goodwill impairment loss is recognized in an amount equal to that excess. The Company estimates the fair value of each reporting unit using a discounted cash flow (“DCF”) (Level 3 input) analysis. Determining fair value requires the exercise of significant judgments, including the amount and timing of expected future cash flows, long-term growth rates, discount rates and relevant comparable public company earnings multiples and relevant trading multiples. The cash flows employed in the DCF analysis are based on estimates of future sales, earnings and cash flows after considering factors such as general market conditions, existing firm orders, expected future orders, changes in working capital, long term business plans and recent operating performance. The DCF analysis used a discount rate of ranging from <span id="xdx_901_ecustom--DiscountedCashFlowDiscountRate_dp_c20220101__20221231__srt--RangeAxis__srt--MinimumMember_znKhhj1DghXh" title="Discounted cash flow discount rate">26.5</span>%– <span id="xdx_901_ecustom--DiscountedCashFlowDiscountRate_dp_c20220101__20221231__srt--RangeAxis__srt--MaximumMember_zQ1CezP4Wf15" title="Discounted cash flow discount rate">41.5</span>%.</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p id="xdx_845_eus-gaap--RevenueFromContractWithCustomerPolicyTextBlock_z5T0oBULw6S1" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0.5in; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i><span id="xdx_86E_zlyI1SEccp31">Revenue Recognition and Concentration</span> –</i> Most of the Company’s revenues are derived primarily through the sales of drone, sensors and related accessories, and software subscriptions. All contracts and agreements are a fixed price and are accounted for in accordance with ASC Topic 606, <i>Revenue from Contracts with Customers</i>.</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0.5in; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The Company generally recognizes revenue on sales to customers, dealers, and distributors upon satisfaction of performance obligations which generally occurs once controls transfer to customers, which is when product is shipped or delivered depending on specific shipping terms and, where applicable, a customer acceptance has been obtained. The fee is not considered to be fixed or determinable until all material contingencies related to the sales have been resolved. The Company records revenue in the statements of operations net of any sales, use, value added, or certain excise taxes imposed by governmental authorities on specific sales transactions and net of any discounts, allowances and returns.</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0.5in; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Under fixed-price contracts, the Company agrees to perform the specified work for a pre-determined price. To the extent the Company’s actual costs vary from the estimates upon which the price was negotiated, it will generate more or less profit or could incur a loss. The Company accounts for a contract after it has been approved by all parties to the arrangement, the rights of the parties are identified, payment terms are identified, the contract has commercial substance and collectability of consideration is probable.</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>AGEAGLE AERIAL SYSTEMS INC. AND SUBSIDIARIES </b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>NOTES TO CONSOLIDATED FINANCIAL STATEMENTS</b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>FOR THE YEARS ENDED DECEMBER 31, 2022 AND 2021</b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Note 2 – Summary of Significant Accounting Policies – Continued</b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0.5in; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Additionally, customer payments received in advance of the Company completing performance obligations are recorded as contract liabilities. Customer deposits represent customer prepayments and are recognized as revenue when the term of the sale or performance obligation is completed.</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0.5in; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The Company’s software subscriptions to its platforms, <i>HempOverview</i> and <i>Ground Control</i>, are offered on a subscription basis. These subscription fees are recognized ratably over each monthly membership period as the services are provided.</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p id="xdx_84E_ecustom--ProvisionForWarrantyExpensePolicyTextBlock_zGaiCGFDliN1" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0.5in; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i><span id="xdx_86E_zltjk5AIEJH4">Provision for Warranty Expense</span></i> - The Company provides warranties against defects in materials and workmanship of its drone systems for specified periods of time. For the years ended December 31, 2022 and 2021, drones and sensors sold are covered by the warranty for a period of up to one year from the date of sale by the Company. Estimated warranty expenses are recorded as an accrued expenses in the consolidated balance sheets with a corresponding provision to cost of sales in the consolidated statements of operations. This estimate is recognized concurrent with the recognition of revenue on the sale to a customer. The Company reserve for warranty expense is based on its historical experience and management’s expectation of future conditions, taking into consideration the location and type of customer and the type of drone, which directly correlate to the materials and components under warranty, the duration of the warranty period, and the logistical costs to service the warranty. An increase in warranty claims or in the costs associated with servicing those claims would likely result in an increase in the reserve and a decrease in gross profit.</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p id="xdx_84E_ecustom--ShippingCostPolicyTextBlock_zEaAbT1p8BPk" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0.5in; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i><span id="xdx_86E_z5oRse2AqjSf">Shipping Costs</span> </i><b>– </b>All shipping costs billed directly to the customer are directly offset to shipping costs resulting in a net expense to the Company, which is included in cost of goods sold in the accompanying consolidated statements of operations and comprehensive loss. For the years ended December 31, 2022, and 2021, shipping costs were $<span id="xdx_90B_ecustom--ShippingCosts_c20220101__20221231_zEUPZmHiHHF" title="Shipping costs">339,773</span> and $<span id="xdx_908_ecustom--ShippingCosts_c20210101__20211231_zcEAalPyVDBb" title="Shipping costs">296,100</span>, respectively.</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p id="xdx_842_eus-gaap--AdvertisingCostsPolicyTextBlock_ztRDNTTjddA2" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0.5in; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i><span id="xdx_86B_z4qFicy1Pts8">Advertising Costs</span> </i>– Advertising costs are charged to operations as incurred. For the years ended December 31, 2022, and 2021, advertising costs, included in sales and marketing expenses in the consolidated statements of operations and comprehensive loss, were $<span id="xdx_90A_eus-gaap--AdvertisingExpense_c20220101__20221231_zrsHaP8wbqY8" title="Advertising Expense">351,967</span> and $<span id="xdx_903_eus-gaap--AdvertisingExpense_c20210101__20211231_zrRtxngTbumh" title="Advertising Expense">262,586</span>.</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p id="xdx_842_eus-gaap--ResearchAndDevelopmentExpensePolicy_zJMKWdO5ZRB6" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0.5in; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i><span id="xdx_86B_z3xYO6vyILik">Research and Development</span> </i>– For the years ended December 31, 2022 and 2021, research and development expenses were $<span id="xdx_90C_eus-gaap--ResearchAndDevelopmentExpense_c20220101__20221231_zlJxmPXQNiq5" title="Research and development expenses">8,113,774</span> and $<span id="xdx_905_eus-gaap--ResearchAndDevelopmentExpense_c20210101__20211231_zQJvTIMszOUa" title="Research and development expenses">4,082,799</span>, respectively. Research and development costs are expensed as incurred and are included in the accompanying consolidated statements of operations and comprehensive loss.</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p id="xdx_84D_ecustom--VendorConcentrationsPolicyTextBlock_zsrxXjvl0Mk" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0.5in; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i><span id="xdx_86F_zps7GF4dWxs1">Vendor Concentrations</span> - </i>As of December 31, 2022 and 2021, there was one significant vendor that the Company relies upon to perform certain services for the Company’s technology platform. This vendor provides services to the Company, which can be replaced by alternative vendors should the need arise.</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p id="xdx_84F_eus-gaap--DefinedBenefitPlanAccountingPolicyElectionMeasurementDatePolicyTextBlock_zXi0tD4wGD4a" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0.5in; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i><span id="xdx_860_zwqW1ZsXCQEl">Defined Benefit Plan</span> - </i>The Company estimates liabilities and expenses for its defined benefit plan. Estimated amounts are based on historical information, current information, and estimates regarding future events and circumstances. Significant assumptions used in the valuation of these benefit plan liabilities include the expected return on plan assets, discount rate, and rate of increase in compensation levels.</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p id="xdx_847_eus-gaap--EarningsPerSharePolicyTextBlock_z4cmfXvAGBWh" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0.5in; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i><span id="xdx_86C_zf4Sy9MJNANj">Loss Per Common Share</span></i> <b>–</b> Basic loss per share is computed by dividing net loss by the weighted average number of common shares outstanding for the year. Diluted loss per share is computed by dividing net loss by the weighted average number of common shares outstanding plus Common Stock, par value $<span id="xdx_900_eus-gaap--CommonStockParOrStatedValuePerShare_iI_c20221231__us-gaap--StatementEquityComponentsAxis__us-gaap--CommonStockMember_z2rKsP49aaxk" title="Common stock par value">0.0001</span> (“Common Stock”) equivalents (if dilutive) related to warrants, options, and convertible instruments.</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>AGEAGLE AERIAL SYSTEMS INC. AND SUBSIDIARIES </b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>NOTES TO CONSOLIDATED FINANCIAL STATEMENTS</b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>FOR THE YEARS ENDED DECEMBER 31, 2022 AND 2021</b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Note 2 – Summary of Significant Accounting Policies – Continued</b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p id="xdx_84A_ecustom--PotentiallyDilutiveSecuritiesPolicyTextBlock_zJjcAjmmzXEe" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0.5in; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i><span id="xdx_86B_zXs2EjyfcGgg">Potentially Dilutive Securities</span></i> <b>–</b> The Company has excluded all common equivalent shares outstanding for unvested restricted stock, warrants and options to purchase Common Stock from the calculation of diluted net loss per share, because all such securities are anti-dilutive for the periods presented. As of December 31, 2022, the Company had <span id="xdx_90F_eus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount_c20220101__20221231__us-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareByAntidilutiveSecuritiesAxis__custom--UnvestedRestrictedStockMember_zseHl5cwSp31" title="Antidilutive securities excluded from computation of earnings per share, amount">557,476</span> unvested restricted stock units, <span id="xdx_90A_eus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount_c20220101__20221231__us-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareByAntidilutiveSecuritiesAxis__custom--CommonStockWarrantsMember_zfzoYiVHMAVg" title="Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount">21,129,032</span> common stock warrants and <span id="xdx_90A_eus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount_c20220101__20221231__us-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareByAntidilutiveSecuritiesAxis__us-gaap--OptionMember_zmYDXIJZObRg" title="Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount">2,561,231</span> options outstanding to purchase shares of Common Stock. As of December 31, 2021, the Company had <span id="xdx_900_eus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount_c20210101__20211231__us-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareByAntidilutiveSecuritiesAxis__custom--UnvestedRestrictedStockMember_zZE1IKS4ORrk" title="Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount">821,405</span> unvested restricted stock units and <span id="xdx_906_eus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount_c20210101__20211231__us-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareByAntidilutiveSecuritiesAxis__custom--CommonStockWarrantsMember_zkJbUc33Terj" title="Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount">2,541,667</span> options outstanding to purchase shares of Common Stock.</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p id="xdx_843_eus-gaap--LessorLeasesPolicyTextBlock_zgPlHbxtMfSa" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0.5in; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i><span id="xdx_86D_zPB2S1LIrPSl">Leases</span></i> <b>– </b>The Company accounts for its operating leases in accordance with ASC Topic 842, <i>Leases</i> (“ASC 842”), which requires that lessees recognize a right-of-use asset and a lease liability for virtually all their leases with lease terms of more than twelve months. Consistent with current GAAP, the recognition, measurement, and presentation of expenses and cash flows arising from a lease by a lessee primarily will depend on its classification as a finance or operating lease.</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p id="xdx_845_eus-gaap--IncomeTaxPolicyTextBlock_zwpg3AV95Fg6" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0.5in; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> <i><span id="xdx_86E_z8ncc8WHlSne">Income Taxes</span> </i><b>– </b>The Company accounts for income taxes in accordance with ASC Topic 740, <i>Accounting for Income Taxes</i>, (“ASC 740”) which requires an asset and liability approach for accounting for income taxes. The Company evaluates its tax positions that have been taken or are expected to be taken on income tax returns to determine if an accrual is necessary for uncertain tax positions. The Company will recognize future accrued interest and penalties related to unrecognized tax benefits in income tax expense if incurred. All income tax returns not filed more than three years ago are subject to federal and state tax examinations by tax authorities.</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p id="xdx_845_eus-gaap--CompensationRelatedCostsPolicyTextBlock_zij3W9NiuhPg" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0.5in; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> <i><span id="xdx_86D_z9X2Pn65Wh78">Stock-Based Compensation Awards</span></i> <b>–</b> The Company accounts for its stock-based awards in accordance with ASC Subtopic 718-10, <i>Compensation – Stock Compensation</i> (“ASC 718-10”)<i>, </i>which requires fair value measurement on the grant date and recognition of compensation expense for all stock-based payment awards made to employees and directors. For stock options, the Company estimates the fair value using a closed option valuation (Black-Scholes) model. The estimated fair value is then expensed over the requisite service period of the award, which is generally the vesting period. Stock-based compensation expenses are presented in the consolidated statements of operations and comprehensive loss within general and administrative expenses. The Company recognizes forfeitures at the time they occur.</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0.5in; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The Black-Scholes option-pricing model requires the input of certain assumptions that require the Company’s judgment, including the expected term and the expected stock price volatility of the underlying stock. The assumptions used in calculating the fair value of stock-based compensation represent management’s best estimates, but these estimates involve inherent uncertainties and the application of judgment. As a result, if factors change resulting in the use of different assumptions, stock-based compensation expense could be materially different in the future.</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p id="xdx_842_eus-gaap--SegmentReportingPolicyPolicyTextBlock_z8GpJRFXhmc" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0.5in; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i><span id="xdx_865_zo9nhMvRJG33">Segment Reporting</span> –</i> In accordance with ASC Topic 280, <i>Segment Reporting</i>, (“ASC 280”), the Company identifies operating segments as components of an entity for which discrete financial information is available and is regularly reviewed by the chief operating decision maker in making decisions regarding resource allocation and performance assessment. The Company defines the term “chief operating decision maker” to be its chief executive officer.</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>AGEAGLE AERIAL SYSTEMS INC. AND SUBSIDIARIES </b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>NOTES TO CONSOLIDATED FINANCIAL STATEMENTS</b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>FOR THE YEARS ENDED DECEMBER 31, 2022 AND 2021</b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Note 2 – Summary of Significant Accounting Policies – Continued</b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0.5in; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The Company has determined that operates in three segments:</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"></span></span></p> <table cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; border-spacing: 0; text-align: left; width: 100%"> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif; width: 0.25in"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></td> <td style="font: 10pt Times New Roman, Times, Serif; width: 0.25in"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">●</span></span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Drones, which comprises revenues earned from contractual arrangements to develop, manufacture and /or modify complex drone related products, and to provide associated engineering, technical and other services according to customer specifications.</span></span></td></tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></td> <td style="font: 10pt Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></td></tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></td> <td style="font: 10pt Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">●</span></span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Sensors, which comprises the revenue earned through the sale of sensors, cameras, and related accessories.</span></span></td></tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></td> <td style="font: 10pt Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></td></tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></td> <td style="font: 10pt Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">●</span></span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">SaaS, which comprises revenue earned through the offering of online-based subscriptions.</span></span></td></tr> </table> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p id="xdx_84A_eus-gaap--CommitmentsAndContingenciesPolicyTextBlock_zUXGwnrAVsj8" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 45px; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i><span id="xdx_862_z3cjNAZfhK9a">Contingencies</span> -</i> In the ordinary course of business, the Company is subject to loss contingencies that cover a range of matters. An estimated loss from a loss contingency, such as a legal proceeding or claim, is accrued if it is probable that a liability has been incurred and the amount of the loss can be reasonably estimated. In determining whether a loss should be accrued, the Company evaluates, among other factors, the degree of probability and the ability to reasonably estimate the amount of any such loss.</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p id="xdx_849_eus-gaap--NewAccountingPronouncementsPolicyPolicyTextBlock_zqaO17BF9I22" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i>Recently Issued and Adopted Accounting Pronouncements</i></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0.5in; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Adopted</b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0.5in; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">During the first quarter of 2022, the Company early adopted Accounting Standards Update (“ASU”) ASU 2020-06, <i>Debt – Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging – Contracts in Entity’s Own Equity (Subtopic 815-40)</i> (“ASU 2020-06”). The update simplifies the accounting for convertible debt instruments and convertible preferred stock by reducing the number of accounting models and limiting the number of embedded conversion features separately recognized from the primary contract. The guidance also includes targeted improvements to the disclosures for convertible instruments and earnings per share. For smaller reporting companies, ASU 2020-06 is effective for fiscal years beginning after December 15, 2023, including interim periods within those fiscal years. Early adoption is permitted, but no earlier than fiscal years beginning after December 15, 2020. The Company adopted ASU 2020-06 in the first quarter of 2022 using the modified retrospective method. Prior to its adoption of ASU 2020-06, the Company did not have financial instruments that would have required a cumulative effect to be recognized as an adjustment to its opening balance of accumulated deficit.</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0.5in; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Pending</b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0.5in; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">In March 2022, the FASB issued Accounting Standards Update (“ASU”) No. 2022-02, <i>Financial Instruments-Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures</i> (“ASU 2022-02”), which addresses areas identified by the FASB as part of its post-implementation review of its previously issued credit losses standard, ASU 2016-13, that introduced the Current Expected Credit Loss (“CECL”) model. ASU 2022-02 eliminates the accounting guidance for troubled debt restructurings by creditors that have adopted the CECL model and enhances disclosure requirements for certain loan refinancings and restructurings made with borrowers experiencing financial difficulty. In addition, ASU 2022-02 requires a public business entity to disclose current-period gross write-offs for financing receivables and net investment in leases by year of origination in the vintage disclosures. ASU 2022-02 is effective for the fiscal years beginning after December 15, 2022 and for periods within those fiscal years. Early adoption is permitted. The adoption of ASU 2022-02 is not expected to have a material impact on the Company’s consolidated financial statements.</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>AGEAGLE AERIAL SYSTEMS INC. AND SUBSIDIARIES </b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>NOTES TO CONSOLIDATED FINANCIAL STATEMENTS</b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>FOR THE YEARS ENDED DECEMBER 31, 2022 AND 2021</b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Note 2 – Summary of Significant Accounting Policies – Continued</b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0.5in; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Other recent accounting pronouncements issued by FASB did not or are not believed by management to have a material impact on the Company’s present or future consolidated financial statements.</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p id="xdx_84B_ecustom--ImpactOfTheWarInUkraineAndCovid19OnOurBusinessOperationsPolicyTextBlock_zodEdHFI3eRb" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i><span id="xdx_862_z0WXfWz4bwU7">Impact of the War in Ukraine and COVID-19 On Our Business Operations</span></i></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0.5in; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Global economic challenges, including the impact of the war in Ukraine, the COVID-19 pandemic, rising inflation and supply-chain disruptions, adverse labor market conditions could cause economic uncertainty and volatility. During the year ended December 31, 2022, the COVID-19 pandemic and other supply chain disruptions continued to have a significant negative impact on the UAV industry, our customers and our business globally. The aforementioned risks and their respective impact on the UAV industry and our operational and financial performance remains uncertain and outside of our control. Specifically, as a result of the aforementioned continuing risks, our ability to access components and parts needed in order to manufacture our proprietary drones and sensors, and to perform quality testing have been, and continue to be, impacted. If we or any of our third-parties in the supply chain for materials used in our manufacturing and assembly processes continue to be adversely impacted, our supply-chain may be further disrupted, limiting our ability to manufacture and assemble products. We expect the pandemic, inflation and supply chain disruptions and their effects to continue to have a significant negative impact on our business for the duration of the pandemic and during the subsequent economic recovery, which could be for an extended period.</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0.5in; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">For the year ended December 31, 2022, our supply chain was adversely impacted by the COVID-19 pandemic and other global economic challenges, causing material delays in the delivery of critical components associated with production of our newly developed sensors, that we began to sell in early 2022. These delays resulted in a significant backlog of purchase orders for our sensors. We continue to take steps to expand our supply sources and manufacturing capabilities in order to resolve the majority of our backlogged sensor orders and be better positioned to meet ongoing global market demand in the foreseeable future. While we believe we have largely overcome our supply chain challenges, this is an ongoing situation we will continue to monitor closely.</span></span></p> <p id="xdx_859_zmzf9jr7sbjf" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p id="xdx_841_eus-gaap--BasisOfAccountingPolicyPolicyTextBlock_z5sTR9J8fkql" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0.5in; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i><span id="xdx_86B_zTtOVjz4G9k5">Basis of Presentation and Consolidation</span> </i>- These consolidated financial statements are presented in United States dollars and have been prepared in accordance with US GAAP. The Company’s consolidated financial statements are prepared using the accrual method of accounting. The Company has elected December 31st as its fiscal year end. In the opinion of management, the Company has made all necessary adjustments, which include normal recurring adjustments, for a fair statement of the Company’s consolidated financial position and results of operations for the periods presented.</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0.5in; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The consolidated financial statements include the accounts of AgEagle and its wholly-owned subsidiaries, AgEagle Aerial, Inc., MicaSense, Measure and senseFly. All significant intercompany balances and transactions have been eliminated in consolidation.</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p id="xdx_848_ecustom--LiquidityAndGoingConcernPolicyTextBlock_z9IHBw9wUy1h" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0.5in; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i><span id="xdx_867_ziJMTWdlS2ka">Liquidity and Going Concern</span> </i>– In pursuit of the Company’s long-term growth strategy and recent acquisitions the Company has sustained continued operating losses. During the year ended December 31, 2022, the Company incurred a net loss of $<span id="xdx_90F_eus-gaap--NetIncomeLoss_iN_di_c20220101__20221231_zIWQDfrxA3Yl" title="Net loss">58,253,723</span> and used cash in operating activities of $<span id="xdx_904_eus-gaap--NetCashProvidedByUsedInOperatingActivities_iN_di_c20220101__20221231_z2ZBuLfOZqZi" title="Cash used in operating activities">20,107,670</span>. As of December 31, 2022, the Company has working capital of $<span id="xdx_902_ecustom--WorkingCapital_iI_c20221231_zk3s1rEn2HEj" title="Working capital">9,079,091</span>. While the Company has historically been successful in raising capital to meet its working capital needs, the ability to continue raising such capital to enable the Company to continue its growth is not guaranteed. Therefore, there is substantial doubt about the Company’s ability to continue as a going concern as the Company will require additional liquidity to continue its operations and meet its financial obligations for twelve months from the date these consolidated financial statements were issued. The Company is evaluating strategies to obtain the required additional funding for future operations and the restructuring of operations to grow revenues and reduce expenses.</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0.5in; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">If the Company is unable to generate significant sales growth in the near term and raise additional capital, there is a risk that the Company could default on additional obligations; and could be required to discontinue or significantly reduce the scope of its operations if no other means of financing operations are available. The consolidated financial statements do not include any adjustments relating to the recoverability and classification of recorded asset amounts or the amount and classification of liabilities or any other adjustment that might be necessary should the Company be unable to continue as a going concern.</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0.5in; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> <b>AGEAGLE AERIAL SYSTEMS INC. AND SUBSIDIARIES </b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>NOTES TO CONSOLIDATED FINANCIAL STATEMENTS</b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>FOR THE YEARS ENDED DECEMBER 31, 2022 AND 2021</b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Note 2 – Summary of Significant Accounting Policies – Continued</b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> -58253723 -20107670 9079091 <p id="xdx_84E_eus-gaap--IncomeTaxUncertaintiesPolicy_z4I6pxWN325e" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0.5in; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i><span id="xdx_863_znDwZ2QMjb12">Risks and Uncertainties</span> </i>– Global economic challenges, including the impact of the war in Ukraine, the COVID-19 pandemic, rising inflation and supply-chain disruptions, adverse labor market conditions could cause economic uncertainty and volatility. During the year ended December 31, 2022, the COVID-19 pandemic continued to have a significant negative impact on the unmanned aerial vehicle (“UAV”) systems industry, the Company’s customers and business globally. The aforementioned risks and their respective impacts on the UAV industry and the Company’s operational and financial performance remains uncertain and outside of the Company’s control. Specifically, because of the aforementioned continuing risks, the Company’s ability to access components and parts needed in order to manufacture its proprietary drones and sensors, and to perform quality testing have been, and continue to be, impacted. If either the Company or any of its third parties in the supply chain for materials used in our manufacturing and assembly processes continue to be adversely impacted, the Company’s supply chain may be further disrupted, limiting its ability to manufacture and assemble products. The Company expects the pandemic, inflation and supply-chain disruptions and its effects to continue to have a significant negative impact on its business for the duration of the pandemic and during the subsequent economic recovery, which could be for an extended period of time.</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p id="xdx_843_eus-gaap--UseOfEstimates_zAPhji5LLrS3" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0.5in; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i><span id="xdx_86A_zB0MwWDRT8W9">Use of Estimates</span> </i>- The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. Significant estimates include the reserve for obsolete inventory, valuation of stock issued for services and stock options, valuation of intangible assets, and the valuation of deferred tax assets.</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p id="xdx_843_eus-gaap--ComprehensiveIncomePolicyPolicyTextBlock_zpzjD0Y7gXF5" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0.5in; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i><span id="xdx_86F_zcnlEGatqZkg">Accumulated Other Comprehensive Income (Loss)</span> – </i>Accumulated Other Comprehensive Income (Loss) refers to revenues, expenses, gains and losses that under US GAAP are included in accumulated other comprehensive (loss) a component of equity within the Consolidated Balance Sheets, rather than net loss in the consolidated statements of operations and comprehensive loss. Under existing accounting standards, other comprehensive income (loss) may include, among other things, unrecognized gains and losses on foreign currency translation and prior service credit related to benefit plans.</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p id="xdx_846_eus-gaap--FairValueMeasurementPolicyPolicyTextBlock_z8fwv9Vm3n0l" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0.5in; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i><span id="xdx_867_z2wyYtXd6ub6">Fair Value Measurements and Disclosures</span> </i>– Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 820, <i>Fair Value Measurement</i> (“ASC 820”), requires companies to determine fair value based on the price that would be received to sell the asset or paid to transfer the liability to a market participant. ASC 820 emphasizes that fair value is a market-based measurement, not an entity-specific measurement.</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0.5in; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The guidance requires that assets and liabilities carried at fair value be classified and disclosed in one of the following categories:</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <table cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; border-spacing: 0; width: 100%"> <tr style="font: 10pt Times New Roman, Times, Serif; height: 15px"> <td style="font: 10pt Times New Roman, Times, Serif; width: 0.25in"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p></td> <td style="font: 10pt Times New Roman, Times, Serif; width: 0.25in; vertical-align: top"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">●</span></span></p></td> <td style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Level 1: Quoted market prices in active markets for identical assets or liabilities.</span></span></p></td></tr> <tr style="font: 10pt Times New Roman, Times, Serif; height: 15px"> <td style="font: 10pt Times New Roman, Times, Serif"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p></td> <td style="font: 10pt Times New Roman, Times, Serif"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p></td> <td style="font: 10pt Times New Roman, Times, Serif"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p></td></tr> <tr style="font: 10pt Times New Roman, Times, Serif; height: 15px"> <td style="font: 10pt Times New Roman, Times, Serif"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p></td> <td style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">●</span></span></p></td> <td style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Level 2: Observable market-based inputs or unobservable inputs that are corroborated by market data.</span></span></p></td></tr> <tr style="font: 10pt Times New Roman, Times, Serif; height: 15px"> <td style="font: 10pt Times New Roman, Times, Serif"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p></td> <td style="font: 10pt Times New Roman, Times, Serif"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p></td> <td style="font: 10pt Times New Roman, Times, Serif"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p></td></tr> <tr style="font: 10pt Times New Roman, Times, Serif; height: 15px"> <td style="font: 10pt Times New Roman, Times, Serif"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p></td> <td style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">●</span></span></p></td> <td style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Level 3: Unobservable inputs that are not corroborated by market data.</span></span></p></td></tr> </table> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> <b>AGEAGLE AERIAL SYSTEMS INC. AND SUBSIDIARIES </b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>NOTES TO CONSOLIDATED FINANCIAL STATEMENTS</b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>FOR THE YEARS ENDED DECEMBER 31, 2022 AND 2021</b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Note 2 – Summary of Significant Accounting Policies – Continued</b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0.5in; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">For short-term classes of our financial instruments, which include cash and cash equivalents, accounts receivable, notes receivable and accounts payable and accrued expenses, and which are not reported at fair value, the carrying amounts approximate fair value due to their short-term nature. The outstanding loans related to the business acquisitions and COVID Loans are carried at face value, which approximates fair value, due to the government backed security which requires payments. The promissory note is carried at face value and approximates fair value due to its prevailing interest rate. As of December 31, 2022 and 2021, the Company did not have any financial assets or liabilities measured and recorded at fair value on the Company’s consolidated balance sheets on a recurring basis.</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p id="xdx_841_eus-gaap--CashAndCashEquivalentsPolicyTextBlock_zTfJhyGGIKt1" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0.5in; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i><span id="xdx_86A_zHDPIsssVhG4">Cash Concentrations</span></i> -The Company maintains its cash balances at financial institutions that are insured by the Federal Deposit Insurance Corporation (“FDIC”) up to $<span id="xdx_905_eus-gaap--CashFDICInsuredAmount_iI_c20221231_zCukQzBRJLz2" title="FDIC insured amount">250,000</span>. The Company has significant cash balances at financial institutions which throughout the year regularly exceed the federally insured limit of $<span id="xdx_902_eus-gaap--CashUninsuredAmount_iI_c20221231_zAVbx5Ad1Khj" title="Cash, uninsured amount">250,000</span>. Any loss incurred or a lack of access to such funds could have a significant adverse impact on the Company’s financial condition, results of operations, and cash flows.</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> 250000 250000 <p id="xdx_84E_eus-gaap--TradeAndOtherAccountsReceivableUnbilledReceivablesPolicy_zLtjQXeF7HMh" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0.5in; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i><span id="xdx_864_zBOkUrrFIq4f">Trade Receivables and Credit Policy</span></i> <i>– </i>Trade receivables due from customers are uncollateralized customer obligations due under normal and customary trade terms. Trade receivables are stated at the amount billed to the customer. The Company generally does not charge interest on overdue customer account balances. Payments of trade receivables are allocated to the specific invoices identified on the customer’s remittance advice or, if unspecified, are applied to the earliest unpaid invoices. The Company estimates an allowance for doubtful accounts based upon an evaluation of the current status of trade receivables, historical experience, and other factors as necessary. It is reasonably possible that the Company’s estimate of the allowance for doubtful accounts will change.</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p id="xdx_84C_eus-gaap--InventoryPolicyTextBlock_zxp5P6AY5IMi" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0.5in; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i><span id="xdx_867_zaKqFsmjWdxc">Inventories</span></i> <i>–</i> Inventories, which consist of raw materials, finished goods and work-in-process, are stated at the lower of cost or net realizable value, with cost being determined by the average-cost method, which approximates the first-in, first-out method. Cost components include direct materials and direct labor. At each balance sheet date, the Company evaluates its inventories for excess quantities and obsolescence. This evaluation primarily includes an analysis of forecasted demand in relation to the inventory on hand, among consideration of other factors. The physical condition (e.g., age and quality) of the inventories is also considered in establishing its valuation. Based upon the evaluation, provisions are made to reduce excess or obsolete inventories to their estimated net realizable values. Once established, write-downs are considered permanent adjustments to the cost basis of the respective inventories. These adjustments are estimates, which could vary significantly, either favorably or unfavorably, from the amounts that the Company may ultimately realize upon the disposition of inventories if future economic conditions, customer inventory levels, product discontinuances, sales return levels or competitive conditions differ from the Company’s estimates and expectations.</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p id="xdx_84F_eus-gaap--BusinessCombinationsPolicy_zREf4c5vMTV" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0.5in; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i><span id="xdx_863_z5iVTx8SrL64">Business Combinations</span></i> - The Company records acquisitions pursuant to ASC Topic 805, <i>Business Combinations,</i> (“ASC 805”). The Company recognizes, with certain exceptions, <span id="xdx_90A_ecustom--PercentageFairValueOfAssetsAcquiredLiabilitiesAssumed_dp_c20220101__20221231_z44Bn561uD5g" title="Percentage fair value of assets acquired, liabilities assumed">100</span>% of the fair value of assets acquired, liabilities assumed, and non-controlling interests when the acquisition constitutes a change in control of the acquired entity. Shares issued in consideration for a business combination, contingent consideration arrangements and pre-acquisition loss and gain contingencies are all measured and recorded at their acquisition-date fair value. Subsequent changes to fair value of contingent consideration arrangements are generally reflected in earnings. Any in-process research and development assets acquired are capitalized as of the acquisition date. Acquisition-related transaction costs are expensed as incurred. The operating results of entities acquired are included in the accompanying consolidated statements of operations and comprehensive loss from the respective dates of acquisition.</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>AGEAGLE AERIAL SYSTEMS INC. AND SUBSIDIARIES </b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>NOTES TO CONSOLIDATED FINANCIAL STATEMENTS</b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>FOR THE YEARS ENDED DECEMBER 31, 2022 AND 2021</b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Note 2 – Summary of Significant Accounting Policies – Continued</b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> 1 <p id="xdx_84C_eus-gaap--IntangibleAssetsFiniteLivedPolicy_zk3g0qLzwcgk" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 45px; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i><span id="xdx_86D_zKsHs3YeOHEj">Intangible Assets</span></i> - Intangible assets from acquired businesses are recognized at fair value on the acquisition date and consist of customer programs, trademarks, customer relationships, technology, and other intangible assets. Customer programs include values assigned to major programs of acquired businesses and represent the aggregate value associated with the customer relationships, contracts, technology, and trademarks underlying the associated program and are amortized on a straight-line basis over a period of expected cash flows used to measure fair value, which ranges from two to ten years.</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 45px; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; text-align: justify; margin: 0pt; text-indent: 45px"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">In accordance with ASC Topic 350-40, <i>Software - Internal-Use Software </i>(“ASC 350-40”), the Company capitalizes certain direct costs of developing internal-use software that are incurred in the application development stage, when developing or obtaining software for internal use. Once an application has reached the development stage, internal and external costs incurred to develop internal-use software are capitalized and amortized on a straight-line basis over the estimated useful life of the software (typically three to five years). Maintenance and enhancement costs, including those costs in the post-implementation stages, are typically expensed as incurred, unless such costs relate to substantial upgrades and enhancements to the software that result in added functionality, in which case the costs are capitalized and amortized on a straight-line basis over the estimated useful life of the software. The Company reviews the carrying value for impairment whenever facts and circumstances exist that would suggest that assets might be impaired or that the useful lives should be modified. Amortization expense related to capitalized internal-use software development costs is included in general and administrative expenses on the consolidated statements of operations and comprehensive loss. As of December 31, 2022 and December 31, 2021, capitalized software development costs for internal-use software, net of accumulated amortization, totaled $<span id="xdx_900_ecustom--CapitalizedSoftwareDevelopmentCostsForInternaluseSoftware_iI_c20221231_zy9zGqx1Zpd5" title="Capitalized software development costs for internal-use software">721,795</span> and $<span id="xdx_909_ecustom--CapitalizedSoftwareDevelopmentCostsForInternaluseSoftware_iI_c20211231_zMnDmALPi2Ff" title="Capitalized software development costs for internal-use software">278,264</span>, respectively, relate to the Company’s implementation of its enterprise resource planning (“ERP”) software. Internal-use software costs are included in intangibles, net on the consolidated balance sheets.</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 45px"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 45px; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">In accordance with ASC Topic 985-20, Software — Costs of Software to be Sold, Leased or Marketed the company capitalizes software development costs for software to be sold, leased or marketed. Costs associated with the planning and design phase of software development are classified as research and development costs and are expensed as incurred. Once technological feasibility has been established, a portion of the costs incurred in development, including coding, testing and quality assurance, are capitalized until available for general release to customers, and subsequently reported at the lower of unamortized cost or net realizable value. Amortization is recorded per the individual technology software being released and is included in use cost of sales on the consolidated statements of operations and comprehensive loss. Annual amortization is recognized on a straight-line basis over the remaining economic life of the software (typically two years). Unamortized capitalized costs determined to be in excess of the net realizable value of a solution are expensed at the date of such determination. As of December 31, 2022 and December 31, 2021, capitalized software development costs, net of accumulated amortization, totaled $<span id="xdx_908_eus-gaap--CapitalizedSoftwareDevelopmentCostsForSoftwareSoldToCustomers_iI_c20221231_zj3vyOm4TvNh" title="Capitalized software development costs">1,332,516</span> and $<span id="xdx_905_eus-gaap--CapitalizedSoftwareDevelopmentCostsForSoftwareSoldToCustomers_iI_c20211231_zQj40GDqNCg9" title="Capitalized software development costs">995,880</span>, respectively, and are included in intangibles, net on the consolidated balance sheets.</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">  </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0.5in; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Finite-lived intangible assets are evaluated for impairment periodically, or whenever events or changes in circumstances indicate that their related carrying amounts may not be recoverable in accordance with ASC Topic 360-10-15, <i>Impairment or Disposal of Long-Lived Assets</i>, (“ASC 360-10-15”). In evaluating intangible assets for recoverability, the Company uses its best estimate of future cash flows expected to result from the use of the asset and eventual disposition in accordance with ASC 360-10-15. To the extent that estimated future undiscounted net cash flows are less than the carrying amount, an impairment loss is recognized in an amount equal to the difference between the carrying value of such asset and its fair value.</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>AGEAGLE AERIAL SYSTEMS INC. AND SUBSIDIARIES </b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>NOTES TO CONSOLIDATED FINANCIAL STATEMENTS</b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>FOR THE YEARS ENDED DECEMBER 31, 2022 AND 2021</b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Note 2 – Summary of Significant Accounting Policies – Continued</b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0.5in; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Asset recoverability is an area involving management judgment, requiring assessment as to whether the carrying values of assets are supported by their undiscounted future cash flows. In estimating future cash flows, certain assumptions are required to be made in respect of highly uncertain matters such as revenue growth rates, operating expenses and terminal growth rates. For the year ended December 31, 2022, the Company determined the value of intangible assets was recoverable. As of December 31, 2022 and 2021, the Company reviewed the indicators for impairment and concluded that no impairment of its finite-lived intangible assets existed.</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> 721795 278264 1332516 995880 <p id="xdx_84D_eus-gaap--GoodwillAndIntangibleAssetsPolicyTextBlock_zhfY0d3e3Gg6" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0.5in; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i><span id="xdx_866_z45FD3MVYIl9">Goodwill</span> –</i> The assets and liabilities of acquired businesses are recorded in accordance with ASC 805. Goodwill represents costs in excess of fair values assigned to the underlying identifiable net assets of acquired businesses. Goodwill is not subject to amortization and is tested annually for impairment, or more frequently if events or changes in circumstances indicate that the carrying value of the goodwill may not be recoverable.</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0.5in; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">During the fourth quarter of 2022 and 2021, respectively, and in accordance with ASC Topic 350, <i>Intangibles – Goodwill and other</i> (“ASC 350”)<i>, </i>the Company performed its annual goodwill impairment test using a quantitative approach by comparing the carrying value of the reporting unit, including goodwill, to its fair value. If the carrying value of the reporting unit, including goodwill, exceeds its fair value, a goodwill impairment loss is recognized in an amount equal to that excess. The Company estimates the fair value of each reporting unit using a discounted cash flow (“DCF”) (Level 3 input) analysis. Determining fair value requires the exercise of significant judgments, including the amount and timing of expected future cash flows, long-term growth rates, discount rates and relevant comparable public company earnings multiples and relevant trading multiples. The cash flows employed in the DCF analysis are based on estimates of future sales, earnings and cash flows after considering factors such as general market conditions, existing firm orders, expected future orders, changes in working capital, long term business plans and recent operating performance. The DCF analysis used a discount rate of ranging from <span id="xdx_901_ecustom--DiscountedCashFlowDiscountRate_dp_c20220101__20221231__srt--RangeAxis__srt--MinimumMember_znKhhj1DghXh" title="Discounted cash flow discount rate">26.5</span>%– <span id="xdx_901_ecustom--DiscountedCashFlowDiscountRate_dp_c20220101__20221231__srt--RangeAxis__srt--MaximumMember_zQ1CezP4Wf15" title="Discounted cash flow discount rate">41.5</span>%.</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> 0.265 0.415 <p id="xdx_845_eus-gaap--RevenueFromContractWithCustomerPolicyTextBlock_z5T0oBULw6S1" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0.5in; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i><span id="xdx_86E_zlyI1SEccp31">Revenue Recognition and Concentration</span> –</i> Most of the Company’s revenues are derived primarily through the sales of drone, sensors and related accessories, and software subscriptions. All contracts and agreements are a fixed price and are accounted for in accordance with ASC Topic 606, <i>Revenue from Contracts with Customers</i>.</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0.5in; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The Company generally recognizes revenue on sales to customers, dealers, and distributors upon satisfaction of performance obligations which generally occurs once controls transfer to customers, which is when product is shipped or delivered depending on specific shipping terms and, where applicable, a customer acceptance has been obtained. The fee is not considered to be fixed or determinable until all material contingencies related to the sales have been resolved. The Company records revenue in the statements of operations net of any sales, use, value added, or certain excise taxes imposed by governmental authorities on specific sales transactions and net of any discounts, allowances and returns.</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0.5in; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Under fixed-price contracts, the Company agrees to perform the specified work for a pre-determined price. To the extent the Company’s actual costs vary from the estimates upon which the price was negotiated, it will generate more or less profit or could incur a loss. The Company accounts for a contract after it has been approved by all parties to the arrangement, the rights of the parties are identified, payment terms are identified, the contract has commercial substance and collectability of consideration is probable.</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>AGEAGLE AERIAL SYSTEMS INC. AND SUBSIDIARIES </b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>NOTES TO CONSOLIDATED FINANCIAL STATEMENTS</b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>FOR THE YEARS ENDED DECEMBER 31, 2022 AND 2021</b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Note 2 – Summary of Significant Accounting Policies – Continued</b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0.5in; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Additionally, customer payments received in advance of the Company completing performance obligations are recorded as contract liabilities. Customer deposits represent customer prepayments and are recognized as revenue when the term of the sale or performance obligation is completed.</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0.5in; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The Company’s software subscriptions to its platforms, <i>HempOverview</i> and <i>Ground Control</i>, are offered on a subscription basis. These subscription fees are recognized ratably over each monthly membership period as the services are provided.</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p id="xdx_84E_ecustom--ProvisionForWarrantyExpensePolicyTextBlock_zGaiCGFDliN1" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0.5in; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i><span id="xdx_86E_zltjk5AIEJH4">Provision for Warranty Expense</span></i> - The Company provides warranties against defects in materials and workmanship of its drone systems for specified periods of time. For the years ended December 31, 2022 and 2021, drones and sensors sold are covered by the warranty for a period of up to one year from the date of sale by the Company. Estimated warranty expenses are recorded as an accrued expenses in the consolidated balance sheets with a corresponding provision to cost of sales in the consolidated statements of operations. This estimate is recognized concurrent with the recognition of revenue on the sale to a customer. The Company reserve for warranty expense is based on its historical experience and management’s expectation of future conditions, taking into consideration the location and type of customer and the type of drone, which directly correlate to the materials and components under warranty, the duration of the warranty period, and the logistical costs to service the warranty. An increase in warranty claims or in the costs associated with servicing those claims would likely result in an increase in the reserve and a decrease in gross profit.</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p id="xdx_84E_ecustom--ShippingCostPolicyTextBlock_zEaAbT1p8BPk" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0.5in; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i><span id="xdx_86E_z5oRse2AqjSf">Shipping Costs</span> </i><b>– </b>All shipping costs billed directly to the customer are directly offset to shipping costs resulting in a net expense to the Company, which is included in cost of goods sold in the accompanying consolidated statements of operations and comprehensive loss. For the years ended December 31, 2022, and 2021, shipping costs were $<span id="xdx_90B_ecustom--ShippingCosts_c20220101__20221231_zEUPZmHiHHF" title="Shipping costs">339,773</span> and $<span id="xdx_908_ecustom--ShippingCosts_c20210101__20211231_zcEAalPyVDBb" title="Shipping costs">296,100</span>, respectively.</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> 339773 296100 <p id="xdx_842_eus-gaap--AdvertisingCostsPolicyTextBlock_ztRDNTTjddA2" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0.5in; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i><span id="xdx_86B_z4qFicy1Pts8">Advertising Costs</span> </i>– Advertising costs are charged to operations as incurred. For the years ended December 31, 2022, and 2021, advertising costs, included in sales and marketing expenses in the consolidated statements of operations and comprehensive loss, were $<span id="xdx_90A_eus-gaap--AdvertisingExpense_c20220101__20221231_zrsHaP8wbqY8" title="Advertising Expense">351,967</span> and $<span id="xdx_903_eus-gaap--AdvertisingExpense_c20210101__20211231_zrRtxngTbumh" title="Advertising Expense">262,586</span>.</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> 351967 262586 <p id="xdx_842_eus-gaap--ResearchAndDevelopmentExpensePolicy_zJMKWdO5ZRB6" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0.5in; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i><span id="xdx_86B_z3xYO6vyILik">Research and Development</span> </i>– For the years ended December 31, 2022 and 2021, research and development expenses were $<span id="xdx_90C_eus-gaap--ResearchAndDevelopmentExpense_c20220101__20221231_zlJxmPXQNiq5" title="Research and development expenses">8,113,774</span> and $<span id="xdx_905_eus-gaap--ResearchAndDevelopmentExpense_c20210101__20211231_zQJvTIMszOUa" title="Research and development expenses">4,082,799</span>, respectively. Research and development costs are expensed as incurred and are included in the accompanying consolidated statements of operations and comprehensive loss.</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> 8113774 4082799 <p id="xdx_84D_ecustom--VendorConcentrationsPolicyTextBlock_zsrxXjvl0Mk" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0.5in; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i><span id="xdx_86F_zps7GF4dWxs1">Vendor Concentrations</span> - </i>As of December 31, 2022 and 2021, there was one significant vendor that the Company relies upon to perform certain services for the Company’s technology platform. This vendor provides services to the Company, which can be replaced by alternative vendors should the need arise.</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p id="xdx_84F_eus-gaap--DefinedBenefitPlanAccountingPolicyElectionMeasurementDatePolicyTextBlock_zXi0tD4wGD4a" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0.5in; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i><span id="xdx_860_zwqW1ZsXCQEl">Defined Benefit Plan</span> - </i>The Company estimates liabilities and expenses for its defined benefit plan. Estimated amounts are based on historical information, current information, and estimates regarding future events and circumstances. Significant assumptions used in the valuation of these benefit plan liabilities include the expected return on plan assets, discount rate, and rate of increase in compensation levels.</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p id="xdx_847_eus-gaap--EarningsPerSharePolicyTextBlock_z4cmfXvAGBWh" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0.5in; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i><span id="xdx_86C_zf4Sy9MJNANj">Loss Per Common Share</span></i> <b>–</b> Basic loss per share is computed by dividing net loss by the weighted average number of common shares outstanding for the year. Diluted loss per share is computed by dividing net loss by the weighted average number of common shares outstanding plus Common Stock, par value $<span id="xdx_900_eus-gaap--CommonStockParOrStatedValuePerShare_iI_c20221231__us-gaap--StatementEquityComponentsAxis__us-gaap--CommonStockMember_z2rKsP49aaxk" title="Common stock par value">0.0001</span> (“Common Stock”) equivalents (if dilutive) related to warrants, options, and convertible instruments.</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>AGEAGLE AERIAL SYSTEMS INC. AND SUBSIDIARIES </b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>NOTES TO CONSOLIDATED FINANCIAL STATEMENTS</b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>FOR THE YEARS ENDED DECEMBER 31, 2022 AND 2021</b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Note 2 – Summary of Significant Accounting Policies – Continued</b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> 0.0001 <p id="xdx_84A_ecustom--PotentiallyDilutiveSecuritiesPolicyTextBlock_zJjcAjmmzXEe" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0.5in; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i><span id="xdx_86B_zXs2EjyfcGgg">Potentially Dilutive Securities</span></i> <b>–</b> The Company has excluded all common equivalent shares outstanding for unvested restricted stock, warrants and options to purchase Common Stock from the calculation of diluted net loss per share, because all such securities are anti-dilutive for the periods presented. As of December 31, 2022, the Company had <span id="xdx_90F_eus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount_c20220101__20221231__us-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareByAntidilutiveSecuritiesAxis__custom--UnvestedRestrictedStockMember_zseHl5cwSp31" title="Antidilutive securities excluded from computation of earnings per share, amount">557,476</span> unvested restricted stock units, <span id="xdx_90A_eus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount_c20220101__20221231__us-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareByAntidilutiveSecuritiesAxis__custom--CommonStockWarrantsMember_zfzoYiVHMAVg" title="Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount">21,129,032</span> common stock warrants and <span id="xdx_90A_eus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount_c20220101__20221231__us-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareByAntidilutiveSecuritiesAxis__us-gaap--OptionMember_zmYDXIJZObRg" title="Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount">2,561,231</span> options outstanding to purchase shares of Common Stock. As of December 31, 2021, the Company had <span id="xdx_900_eus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount_c20210101__20211231__us-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareByAntidilutiveSecuritiesAxis__custom--UnvestedRestrictedStockMember_zZE1IKS4ORrk" title="Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount">821,405</span> unvested restricted stock units and <span id="xdx_906_eus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount_c20210101__20211231__us-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareByAntidilutiveSecuritiesAxis__custom--CommonStockWarrantsMember_zkJbUc33Terj" title="Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount">2,541,667</span> options outstanding to purchase shares of Common Stock.</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> 557476 21129032 2561231 821405 2541667 <p id="xdx_843_eus-gaap--LessorLeasesPolicyTextBlock_zgPlHbxtMfSa" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0.5in; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i><span id="xdx_86D_zPB2S1LIrPSl">Leases</span></i> <b>– </b>The Company accounts for its operating leases in accordance with ASC Topic 842, <i>Leases</i> (“ASC 842”), which requires that lessees recognize a right-of-use asset and a lease liability for virtually all their leases with lease terms of more than twelve months. Consistent with current GAAP, the recognition, measurement, and presentation of expenses and cash flows arising from a lease by a lessee primarily will depend on its classification as a finance or operating lease.</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p id="xdx_845_eus-gaap--IncomeTaxPolicyTextBlock_zwpg3AV95Fg6" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0.5in; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> <i><span id="xdx_86E_z8ncc8WHlSne">Income Taxes</span> </i><b>– </b>The Company accounts for income taxes in accordance with ASC Topic 740, <i>Accounting for Income Taxes</i>, (“ASC 740”) which requires an asset and liability approach for accounting for income taxes. The Company evaluates its tax positions that have been taken or are expected to be taken on income tax returns to determine if an accrual is necessary for uncertain tax positions. The Company will recognize future accrued interest and penalties related to unrecognized tax benefits in income tax expense if incurred. All income tax returns not filed more than three years ago are subject to federal and state tax examinations by tax authorities.</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p id="xdx_845_eus-gaap--CompensationRelatedCostsPolicyTextBlock_zij3W9NiuhPg" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0.5in; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> <i><span id="xdx_86D_z9X2Pn65Wh78">Stock-Based Compensation Awards</span></i> <b>–</b> The Company accounts for its stock-based awards in accordance with ASC Subtopic 718-10, <i>Compensation – Stock Compensation</i> (“ASC 718-10”)<i>, </i>which requires fair value measurement on the grant date and recognition of compensation expense for all stock-based payment awards made to employees and directors. For stock options, the Company estimates the fair value using a closed option valuation (Black-Scholes) model. The estimated fair value is then expensed over the requisite service period of the award, which is generally the vesting period. Stock-based compensation expenses are presented in the consolidated statements of operations and comprehensive loss within general and administrative expenses. The Company recognizes forfeitures at the time they occur.</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0.5in; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The Black-Scholes option-pricing model requires the input of certain assumptions that require the Company’s judgment, including the expected term and the expected stock price volatility of the underlying stock. The assumptions used in calculating the fair value of stock-based compensation represent management’s best estimates, but these estimates involve inherent uncertainties and the application of judgment. As a result, if factors change resulting in the use of different assumptions, stock-based compensation expense could be materially different in the future.</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p id="xdx_842_eus-gaap--SegmentReportingPolicyPolicyTextBlock_z8GpJRFXhmc" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0.5in; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i><span id="xdx_865_zo9nhMvRJG33">Segment Reporting</span> –</i> In accordance with ASC Topic 280, <i>Segment Reporting</i>, (“ASC 280”), the Company identifies operating segments as components of an entity for which discrete financial information is available and is regularly reviewed by the chief operating decision maker in making decisions regarding resource allocation and performance assessment. The Company defines the term “chief operating decision maker” to be its chief executive officer.</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>AGEAGLE AERIAL SYSTEMS INC. AND SUBSIDIARIES </b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>NOTES TO CONSOLIDATED FINANCIAL STATEMENTS</b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>FOR THE YEARS ENDED DECEMBER 31, 2022 AND 2021</b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Note 2 – Summary of Significant Accounting Policies – Continued</b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0.5in; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The Company has determined that operates in three segments:</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"></span></span></p> <table cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; border-spacing: 0; text-align: left; width: 100%"> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif; width: 0.25in"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></td> <td style="font: 10pt Times New Roman, Times, Serif; width: 0.25in"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">●</span></span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Drones, which comprises revenues earned from contractual arrangements to develop, manufacture and /or modify complex drone related products, and to provide associated engineering, technical and other services according to customer specifications.</span></span></td></tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></td> <td style="font: 10pt Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></td></tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></td> <td style="font: 10pt Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">●</span></span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Sensors, which comprises the revenue earned through the sale of sensors, cameras, and related accessories.</span></span></td></tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></td> <td style="font: 10pt Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></td></tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></td> <td style="font: 10pt Times New Roman, Times, Serif"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">●</span></span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">SaaS, which comprises revenue earned through the offering of online-based subscriptions.</span></span></td></tr> </table> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p id="xdx_84A_eus-gaap--CommitmentsAndContingenciesPolicyTextBlock_zUXGwnrAVsj8" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 45px; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i><span id="xdx_862_z3cjNAZfhK9a">Contingencies</span> -</i> In the ordinary course of business, the Company is subject to loss contingencies that cover a range of matters. An estimated loss from a loss contingency, such as a legal proceeding or claim, is accrued if it is probable that a liability has been incurred and the amount of the loss can be reasonably estimated. In determining whether a loss should be accrued, the Company evaluates, among other factors, the degree of probability and the ability to reasonably estimate the amount of any such loss.</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p id="xdx_849_eus-gaap--NewAccountingPronouncementsPolicyPolicyTextBlock_zqaO17BF9I22" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i>Recently Issued and Adopted Accounting Pronouncements</i></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0.5in; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Adopted</b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0.5in; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">During the first quarter of 2022, the Company early adopted Accounting Standards Update (“ASU”) ASU 2020-06, <i>Debt – Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging – Contracts in Entity’s Own Equity (Subtopic 815-40)</i> (“ASU 2020-06”). The update simplifies the accounting for convertible debt instruments and convertible preferred stock by reducing the number of accounting models and limiting the number of embedded conversion features separately recognized from the primary contract. The guidance also includes targeted improvements to the disclosures for convertible instruments and earnings per share. For smaller reporting companies, ASU 2020-06 is effective for fiscal years beginning after December 15, 2023, including interim periods within those fiscal years. Early adoption is permitted, but no earlier than fiscal years beginning after December 15, 2020. The Company adopted ASU 2020-06 in the first quarter of 2022 using the modified retrospective method. Prior to its adoption of ASU 2020-06, the Company did not have financial instruments that would have required a cumulative effect to be recognized as an adjustment to its opening balance of accumulated deficit.</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0.5in; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Pending</b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0.5in; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">In March 2022, the FASB issued Accounting Standards Update (“ASU”) No. 2022-02, <i>Financial Instruments-Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures</i> (“ASU 2022-02”), which addresses areas identified by the FASB as part of its post-implementation review of its previously issued credit losses standard, ASU 2016-13, that introduced the Current Expected Credit Loss (“CECL”) model. ASU 2022-02 eliminates the accounting guidance for troubled debt restructurings by creditors that have adopted the CECL model and enhances disclosure requirements for certain loan refinancings and restructurings made with borrowers experiencing financial difficulty. In addition, ASU 2022-02 requires a public business entity to disclose current-period gross write-offs for financing receivables and net investment in leases by year of origination in the vintage disclosures. ASU 2022-02 is effective for the fiscal years beginning after December 15, 2022 and for periods within those fiscal years. Early adoption is permitted. The adoption of ASU 2022-02 is not expected to have a material impact on the Company’s consolidated financial statements.</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>AGEAGLE AERIAL SYSTEMS INC. AND SUBSIDIARIES </b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>NOTES TO CONSOLIDATED FINANCIAL STATEMENTS</b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>FOR THE YEARS ENDED DECEMBER 31, 2022 AND 2021</b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Note 2 – Summary of Significant Accounting Policies – Continued</b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0.5in; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Other recent accounting pronouncements issued by FASB did not or are not believed by management to have a material impact on the Company’s present or future consolidated financial statements.</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p id="xdx_84B_ecustom--ImpactOfTheWarInUkraineAndCovid19OnOurBusinessOperationsPolicyTextBlock_zodEdHFI3eRb" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i><span id="xdx_862_z0WXfWz4bwU7">Impact of the War in Ukraine and COVID-19 On Our Business Operations</span></i></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0.5in; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Global economic challenges, including the impact of the war in Ukraine, the COVID-19 pandemic, rising inflation and supply-chain disruptions, adverse labor market conditions could cause economic uncertainty and volatility. During the year ended December 31, 2022, the COVID-19 pandemic and other supply chain disruptions continued to have a significant negative impact on the UAV industry, our customers and our business globally. The aforementioned risks and their respective impact on the UAV industry and our operational and financial performance remains uncertain and outside of our control. Specifically, as a result of the aforementioned continuing risks, our ability to access components and parts needed in order to manufacture our proprietary drones and sensors, and to perform quality testing have been, and continue to be, impacted. If we or any of our third-parties in the supply chain for materials used in our manufacturing and assembly processes continue to be adversely impacted, our supply-chain may be further disrupted, limiting our ability to manufacture and assemble products. We expect the pandemic, inflation and supply chain disruptions and their effects to continue to have a significant negative impact on our business for the duration of the pandemic and during the subsequent economic recovery, which could be for an extended period.</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0.5in; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">For the year ended December 31, 2022, our supply chain was adversely impacted by the COVID-19 pandemic and other global economic challenges, causing material delays in the delivery of critical components associated with production of our newly developed sensors, that we began to sell in early 2022. These delays resulted in a significant backlog of purchase orders for our sensors. We continue to take steps to expand our supply sources and manufacturing capabilities in order to resolve the majority of our backlogged sensor orders and be better positioned to meet ongoing global market demand in the foreseeable future. While we believe we have largely overcome our supply chain challenges, this is an ongoing situation we will continue to monitor closely.</span></span></p> <p id="xdx_806_eus-gaap--SupplementalBalanceSheetDisclosuresTextBlock_zjL0Hxq3qGAg" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Note 3 - <span>Balance Sheet Accounts</span></b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="display: none; font-family: Times New Roman, Times, Serif; font-size: 10pt"> <span id="xdx_824_z4xieNK4aBU9">Balance Sheets</span></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i>Accounts Receivable, net</i></b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0.5in; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">As of December 31, 2022 and 2021, accounts receivable, net consisted of the following:</span></span></p> <p id="xdx_89D_eus-gaap--ScheduleOfAccountsNotesLoansAndFinancingReceivableTextBlock_zkdSpowKgovl" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> <span id="xdx_8B0_zFi5F22hprnj" style="display: none">Schedule of Accounts Receivable, Net </span></span></span></p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td><span style="-sec-ix-redline: true"> </span></td><td style="font-weight: bold; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td colspan="2" id="xdx_49F_20221231_zOK2qn4gEGA7" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"><span style="-sec-ix-redline: true">December 31, 2022</span></td><td style="padding-bottom: 1.5pt; font-weight: bold"><span style="-sec-ix-redline: true"> </span></td><td style="font-weight: bold; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td colspan="2" id="xdx_491_20211231_zdZ2HAljfd9e" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"><span style="-sec-ix-redline: true">December 31, 2021</span></td><td style="padding-bottom: 1.5pt; font-weight: bold"><span style="-sec-ix-redline: true"> </span></td></tr> <tr id="xdx_402_eus-gaap--AccountsReceivableGross_iI_zIh7gRJMa28j" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 60%; text-align: left"><span style="-sec-ix-redline: true">Accounts receivable</span></td><td style="width: 2%"><span style="-sec-ix-redline: true"> </span></td> <td style="width: 1%; text-align: left"><span style="-sec-ix-redline: true">$</span></td><td style="width: 16%; text-align: right"><span style="-sec-ix-redline: true">2,229,840</span></td><td style="width: 1%; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="width: 2%"><span style="-sec-ix-redline: true"> </span></td> <td style="width: 1%; text-align: left"><span style="-sec-ix-redline: true">$</span></td><td style="width: 16%; text-align: right"><span style="-sec-ix-redline: true">2,918,435</span></td><td style="width: 1%; text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> <tr id="xdx_408_eus-gaap--AllowanceForDoubtfulAccountsReceivable_iNI_di_zciLAkno4Ww" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true">Less: Provisions for doubtful accounts</span></td><td style="padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 1.5pt solid; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="border-bottom: Black 1.5pt solid; text-align: right"><span style="-sec-ix-redline: true">(16,800</span></td><td style="padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true">)</span></td><td style="padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 1.5pt solid; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="border-bottom: Black 1.5pt solid; text-align: right"><span style="-sec-ix-redline: true">(29,556</span></td><td style="padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true">)</span></td></tr> <tr id="xdx_408_eus-gaap--AccountsReceivableNetCurrent_iI_zV82sO1E2hlk" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 2.5pt"><span style="-sec-ix-redline: true">Accounts receivable, net</span></td><td style="padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 2.5pt double; text-align: left"><span style="-sec-ix-redline: true">$</span></td><td style="border-bottom: Black 2.5pt double; text-align: right"><span style="-sec-ix-redline: true">2,213,040</span></td><td style="padding-bottom: 2.5pt; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 2.5pt double; text-align: left"><span style="-sec-ix-redline: true">$</span></td><td style="border-bottom: Black 2.5pt double; text-align: right"><span style="-sec-ix-redline: true">2,888,879</span></td><td style="padding-bottom: 2.5pt; text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> </table> <p id="xdx_8A4_zHXH3kCOeyjd" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>AGEAGLE AERIAL SYSTEMS INC. AND SUBSIDIARIES </b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>NOTES TO CONSOLIDATED FINANCIAL STATEMENTS</b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>FOR THE YEARS ENDED DECEMBER 31, 2022 AND 2021</b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Note 3 - Balance Sheet Accounts– Continued</b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i>Inventories, Net</i></b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0.5in; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">As of December 31, 2022 and 2021, inventories, net consisted of the following:</span></span></p> <p id="xdx_893_eus-gaap--ScheduleOfInventoryCurrentTableTextBlock_zTmEIHVxmzF4" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> <span id="xdx_8BA_z9ciJUPeMCaa" style="display: none">Schedule of Inventories</span></span></span></p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="display: none; vertical-align: bottom"> <td><span style="-sec-ix-redline: true"> </span></td><td style="font-weight: bold; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td colspan="2" id="xdx_497_20221231_zZsRhYzUxoSi" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"><span style="-sec-ix-redline: true">2022</span></td><td style="padding-bottom: 1.5pt; font-weight: bold"><span style="-sec-ix-redline: true"> </span></td><td style="font-weight: bold; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td colspan="2" id="xdx_492_20211231_zIMIDi8eQ6Ik" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"><span style="-sec-ix-redline: true">2021</span></td><td style="padding-bottom: 1.5pt; font-weight: bold"><span style="-sec-ix-redline: true"> </span></td></tr> <tr style="vertical-align: bottom"> <td><span style="-sec-ix-redline: true"> </span></td><td style="font-weight: bold; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td colspan="6" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"><span style="-sec-ix-redline: true">December 31,</span></td><td style="padding-bottom: 1.5pt; font-weight: bold"><span style="-sec-ix-redline: true"> </span></td></tr> <tr style="vertical-align: bottom"> <td><span style="-sec-ix-redline: true"> </span></td><td style="font-weight: bold; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"><span style="-sec-ix-redline: true">2022</span></td><td style="padding-bottom: 1.5pt; font-weight: bold"><span style="-sec-ix-redline: true"> </span></td><td style="font-weight: bold; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"><span style="-sec-ix-redline: true">2021</span></td><td style="padding-bottom: 1.5pt; font-weight: bold"><span style="-sec-ix-redline: true"> </span></td></tr> <tr id="xdx_40A_eus-gaap--InventoryRawMaterials_iI_zbHPExvMC9sf" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 60%; text-align: left"><span style="-sec-ix-redline: true">Raw materials</span></td><td style="width: 2%"><span style="-sec-ix-redline: true"> </span></td> <td style="width: 1%; text-align: left"><span style="-sec-ix-redline: true">$</span></td><td style="width: 16%; text-align: right"><span style="-sec-ix-redline: true">5,288,206</span></td><td style="width: 1%; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="width: 2%"><span style="-sec-ix-redline: true"> </span></td> <td style="width: 1%; text-align: left"><span style="-sec-ix-redline: true">$</span></td><td style="width: 16%; text-align: right"><span style="-sec-ix-redline: true">2,862,293</span></td><td style="width: 1%; text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> <tr id="xdx_40B_eus-gaap--InventoryWorkInProcess_iI_zfE7NM5iuwf2" style="vertical-align: bottom; background-color: White"> <td style="text-align: left"><span style="-sec-ix-redline: true">Work-in process</span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true">1,106,056</span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true">647,829</span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> <tr id="xdx_402_eus-gaap--InventoryFinishedGoods_iI_z58RBF1jSitk" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true">Finished goods</span></td><td style="padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 1.5pt solid; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="border-bottom: Black 1.5pt solid; text-align: right"><span style="-sec-ix-redline: true">614,400</span></td><td style="padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 1.5pt solid; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="border-bottom: Black 1.5pt solid; text-align: right"><span style="-sec-ix-redline: true">833,785</span></td><td style="padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> <tr id="xdx_402_eus-gaap--InventoryGross_iI_zEaTcI8JohNk" style="vertical-align: bottom; background-color: White"> <td style="text-align: left"><span style="-sec-ix-redline: true">Gross inventories</span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true">7,008,662</span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true">4,343,907</span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> <tr id="xdx_401_eus-gaap--InventoryValuationReserves_iNI_di_za6Flz53rLg4" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true">Less: Provision for obsolescence</span></td><td style="padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 1.5pt solid; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="border-bottom: Black 1.5pt solid; text-align: right"><span style="-sec-ix-redline: true">(322,815</span></td><td style="padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true">)</span></td><td style="padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 1.5pt solid; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="border-bottom: Black 1.5pt solid; text-align: right"><span style="-sec-ix-redline: true">(305,399</span></td><td style="padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true">)</span></td></tr> <tr id="xdx_407_eus-gaap--InventoryNet_iI_zk9raXNla5F6" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 2.5pt"><span style="-sec-ix-redline: true">Inventories, net</span></td><td style="padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 2.5pt double; text-align: left"><span style="-sec-ix-redline: true">$</span></td><td style="border-bottom: Black 2.5pt double; text-align: right"><span style="-sec-ix-redline: true">6,685,847</span></td><td style="padding-bottom: 2.5pt; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 2.5pt double; text-align: left"><span style="-sec-ix-redline: true">$</span></td><td style="border-bottom: Black 2.5pt double; text-align: right"><span style="-sec-ix-redline: true">4,038,508</span></td><td style="padding-bottom: 2.5pt; text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> </table> <p id="xdx_8AC_zp0xQcxUT9wc" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i>Property and Equipment, Net</i></b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p id="xdx_898_eus-gaap--PropertyPlantAndEquipmentTextBlock_zCURDvA5ypN3" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0.5in; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">As of December 31, 2022 and 2021, property and equipment, net consisted of the following:</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> <span id="xdx_8B4_zHE8xodRPric" style="display: none">Schedule of Property and Equipment, Net</span><span style="display: none"></span></span></span></p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="display: none; vertical-align: bottom"> <td style="border-bottom: Black 1.5pt solid; font-weight: bold"><span style="-sec-ix-redline: true">Type</span></td><td style="font-weight: bold; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"><span style="-sec-ix-redline: true">(Years)</span></td><td style="font-weight: bold; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td colspan="2" id="xdx_492_20221231_zfEeyBilFUif" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"><span style="-sec-ix-redline: true">2022</span></td><td style="padding-bottom: 1.5pt; font-weight: bold"><span style="-sec-ix-redline: true"> </span></td><td style="font-weight: bold; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td colspan="2" id="xdx_494_20211231_zCmm7q455iHl" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"><span style="-sec-ix-redline: true">2021</span></td><td style="padding-bottom: 1.5pt; font-weight: bold"><span style="-sec-ix-redline: true"> </span></td></tr> <tr style="vertical-align: bottom"> <td><span style="-sec-ix-redline: true"> </span></td><td style="font-weight: bold; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="padding-bottom: 1.5pt; font-weight: bold; text-align: center"><span style="-sec-ix-redline: true">Estimated Useful Life</span></td><td style="font-weight: bold; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td colspan="6" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"><span style="-sec-ix-redline: true">December 31,</span></td><td style="padding-bottom: 1.5pt; font-weight: bold"><span style="-sec-ix-redline: true"> </span></td></tr> <tr style="vertical-align: bottom"> <td style="border-bottom: Black 1.5pt solid; font-weight: bold"><span style="-sec-ix-redline: true">Type</span></td><td style="font-weight: bold; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"><span style="-sec-ix-redline: true">(Years)</span></td><td style="font-weight: bold; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"><span style="-sec-ix-redline: true">2022</span></td><td style="padding-bottom: 1.5pt; font-weight: bold"><span style="-sec-ix-redline: true"> </span></td><td style="font-weight: bold; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"><span style="-sec-ix-redline: true">2021</span></td><td style="padding-bottom: 1.5pt; font-weight: bold"><span style="-sec-ix-redline: true"> </span></td></tr> <tr id="xdx_406_eus-gaap--PropertyPlantAndEquipmentGross_iI_hus-gaap--PropertyPlantAndEquipmentByTypeAxis__us-gaap--LeaseholdImprovementsMember_zY7SzLlbNAt9" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 48%; text-align: left"><span style="-sec-ix-redline: true">Leasehold improvements</span></td><td style="width: 2%"><span style="-sec-ix-redline: true"> </span></td> <td style="width: 10%; text-align: center"><span style="-sec-ix-redline: true"><span id="xdx_905_eus-gaap--PropertyPlantAndEquipmentUsefulLife_iI_dtY_c20221231__us-gaap--PropertyPlantAndEquipmentByTypeAxis__us-gaap--LeaseholdImprovementsMember__srt--RangeAxis__srt--MinimumMember_zHuboYJHK8Cg" title="Estimated useful life">3</span></span></td><td style="width: 2%"><span style="-sec-ix-redline: true"> </span></td> <td style="width: 1%; text-align: left"><span style="-sec-ix-redline: true">$</span></td><td style="width: 16%; text-align: right"><span style="-sec-ix-redline: true">106,837</span></td><td style="width: 1%; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="width: 2%"><span style="-sec-ix-redline: true"> </span></td> <td style="width: 1%; text-align: left"><span style="-sec-ix-redline: true">$</span></td><td style="width: 16%; text-align: right"><span style="-sec-ix-redline: true">81,993</span></td><td style="width: 1%; text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> <tr id="xdx_40E_eus-gaap--PropertyPlantAndEquipmentGross_iI_hus-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--ProductionToolsAndEquipmentMember_zpmlLf5Yuvm2" style="vertical-align: bottom; background-color: White"> <td style="text-align: left"><span style="-sec-ix-redline: true">Production tools and equipment</span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: center"><span style="-sec-ix-redline: true"><span id="xdx_903_eus-gaap--PropertyPlantAndEquipmentUsefulLife_iI_dtY_c20221231__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--ProductionToolsAndEquipmentMember_zlpA2DsWXat5" title="Estimated useful life">5</span></span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true">632,514</span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true">417,779</span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> <tr id="xdx_402_eus-gaap--PropertyPlantAndEquipmentGross_iI_hus-gaap--PropertyPlantAndEquipmentByTypeAxis__us-gaap--ComputerEquipmentMember__srt--RangeAxis__srt--MaximumMember_z2jimZj1kf7f" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left"><span style="-sec-ix-redline: true">Computer and office equipment</span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: center"><span style="-sec-ix-redline: true"><span id="xdx_905_eus-gaap--PropertyPlantAndEquipmentUsefulLife_iI_dtY_c20221231__us-gaap--PropertyPlantAndEquipmentByTypeAxis__us-gaap--ComputerEquipmentMember__srt--RangeAxis__srt--MinimumMember_z95ZOnEnK188" title="Estimated useful life">3</span>-<span id="xdx_903_eus-gaap--PropertyPlantAndEquipmentUsefulLife_iI_dtY_c20221231__us-gaap--PropertyPlantAndEquipmentByTypeAxis__us-gaap--ComputerEquipmentMember__srt--RangeAxis__srt--MaximumMember_z1srng1RFAjj" title="Estimated useful life">5</span></span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true">507,637</span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true">559,110</span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> <tr id="xdx_401_eus-gaap--PropertyPlantAndEquipmentGross_iI_hus-gaap--PropertyPlantAndEquipmentByTypeAxis__us-gaap--FurnitureAndFixturesMember_zO3teM5BrEPh" style="vertical-align: bottom; background-color: White"> <td><span style="-sec-ix-redline: true">Furniture</span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: center"><span style="-sec-ix-redline: true"><span id="xdx_902_eus-gaap--PropertyPlantAndEquipmentUsefulLife_iI_dtY_c20221231__us-gaap--PropertyPlantAndEquipmentByTypeAxis__us-gaap--FurnitureAndFixturesMember_zsJjnuE1J1Z2" title="Estimated useful life">5</span></span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true">77,799</span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true">77,971</span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> <tr id="xdx_407_eus-gaap--PropertyPlantAndEquipmentGross_iI_hus-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--DroneEquipmentMember_zjAafKXXz38h" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true">Drone equipment</span></td><td style="padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: center; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span id="xdx_90C_eus-gaap--PropertyPlantAndEquipmentUsefulLife_iI_dtY_c20221231__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--DroneEquipmentMember_z9D8Vle4ttra" title="Estimated useful life">3</span></span></td><td style="padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 1.5pt solid; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="border-bottom: Black 1.5pt solid; text-align: right"><span style="-sec-ix-redline: true">170,109</span></td><td style="padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 1.5pt solid; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="border-bottom: Black 1.5pt solid; text-align: right"><span style="-sec-ix-redline: true">95,393</span></td><td style="padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> <tr id="xdx_406_eus-gaap--PropertyPlantAndEquipmentGross_iI_maPPAENz1t8_zJAxqE2bY9B2" style="vertical-align: bottom; background-color: White"> <td style="text-align: left"><span style="-sec-ix-redline: true">Total Property and equipment</span></td><td><span style="-sec-ix-redline: true"> </span></td> <td><span style="-sec-ix-redline: true"> </span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true">$</span></td><td style="text-align: right"><span style="-sec-ix-redline: true">1,494,896</span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true">$</span></td><td style="text-align: right"><span style="-sec-ix-redline: true">1,232,246</span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> <tr id="xdx_40B_eus-gaap--AccumulatedDepreciationDepletionAndAmortizationPropertyPlantAndEquipment_iNI_di_msPPAENz1t8_zFEccFkGo062" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true">Less: Accumulated depreciation</span></td><td style="padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td><td style="padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 1.5pt solid; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="border-bottom: Black 1.5pt solid; text-align: right"><span style="-sec-ix-redline: true">(703,741</span></td><td style="padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true">)</span></td><td style="padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 1.5pt solid; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="border-bottom: Black 1.5pt solid; text-align: right"><span style="-sec-ix-redline: true">(280,118</span></td><td style="padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true">)</span></td></tr> <tr id="xdx_406_eus-gaap--PropertyPlantAndEquipmentNet_iTI_mtPPAENz1t8_zLQhHuEAHhch" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 2.5pt"><span style="-sec-ix-redline: true">Total Property and equipment, net</span></td><td style="padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"> </span></td><td style="padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 2.5pt double; text-align: left"><span style="-sec-ix-redline: true">$</span></td><td style="border-bottom: Black 2.5pt double; text-align: right"><span style="-sec-ix-redline: true">791,155</span></td><td style="padding-bottom: 2.5pt; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 2.5pt double; text-align: left"><span style="-sec-ix-redline: true">$</span></td><td style="border-bottom: Black 2.5pt double; text-align: right"><span style="-sec-ix-redline: true">952,128</span></td><td style="padding-bottom: 2.5pt; text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> </table> <p id="xdx_8AF_zLQqnZdtEfk9" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0.5in; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">For the years ended December 31, 2022 and 2021, depreciation expense is classified within the consolidated statements of operations and comprehensive loss as follows:</span></span></p> <p id="xdx_890_eus-gaap--ScheduleOfComprehensiveIncomeLossTableTextBlock_zlgT6v3qgBG9" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> <span id="xdx_8B6_zqbJhbvzh5ng" style="display: none">Schedule of Property and Equipment Depreciation Expense</span></span></span></p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="display: none; vertical-align: bottom"> <td style="border-bottom: Black 1.5pt solid; font-weight: bold"><span style="-sec-ix-redline: true">Type</span></td><td style="font-weight: bold; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td colspan="2" id="xdx_49B_20220101__20221231_zFAyBYdQ3yhj" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"><span style="-sec-ix-redline: true">2022</span></td><td style="padding-bottom: 1.5pt; font-weight: bold"><span style="-sec-ix-redline: true"> </span></td><td style="font-weight: bold; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td colspan="2" id="xdx_497_20210101__20211231_zC54gYklVP7g" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"><span style="-sec-ix-redline: true">2021</span></td><td style="padding-bottom: 1.5pt; font-weight: bold"><span style="-sec-ix-redline: true"> </span></td></tr> <tr style="vertical-align: bottom"> <td><span style="-sec-ix-redline: true"> </span></td><td style="font-weight: bold; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td colspan="6" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"><span style="-sec-ix-redline: true">For Year Ended December 31,</span></td><td style="padding-bottom: 1.5pt; font-weight: bold"><span style="-sec-ix-redline: true"> </span></td></tr> <tr style="vertical-align: bottom"> <td style="border-bottom: Black 1.5pt solid; font-weight: bold"><span style="-sec-ix-redline: true">Type</span></td><td style="font-weight: bold; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"><span style="-sec-ix-redline: true">2022</span></td><td style="padding-bottom: 1.5pt; font-weight: bold"><span style="-sec-ix-redline: true"> </span></td><td style="font-weight: bold; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"><span style="-sec-ix-redline: true">2021</span></td><td style="padding-bottom: 1.5pt; font-weight: bold"><span style="-sec-ix-redline: true"> </span></td></tr> <tr id="xdx_40E_eus-gaap--Depreciation_hus-gaap--IncomeStatementLocationAxis__us-gaap--CostOfSalesMember_ztNI5n6LKpUg" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 60%"><span style="-sec-ix-redline: true">Cost of sales</span></td><td style="width: 2%"><span style="-sec-ix-redline: true"> </span></td> <td style="width: 1%; text-align: left"><span style="-sec-ix-redline: true">$</span></td><td style="width: 16%; text-align: right"><span style="-sec-ix-redline: true">266,468</span></td><td style="width: 1%; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="width: 2%"><span style="-sec-ix-redline: true"> </span></td> <td style="width: 1%; text-align: left"><span style="-sec-ix-redline: true">$</span></td><td style="width: 16%; text-align: right"><span style="-sec-ix-redline: true">55,613</span></td><td style="width: 1%; text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> <tr id="xdx_405_eus-gaap--Depreciation_hus-gaap--IncomeStatementLocationAxis__us-gaap--GeneralAndAdministrativeExpenseMember_z9VCrKkIj7Yc" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true">General and administrative</span></td><td style="padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 1.5pt solid; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="border-bottom: Black 1.5pt solid; text-align: right"><span style="-sec-ix-redline: true">179,461</span></td><td style="padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 1.5pt solid; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="border-bottom: Black 1.5pt solid; text-align: right"><span style="-sec-ix-redline: true">129,047</span></td><td style="padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> <tr id="xdx_40A_eus-gaap--Depreciation_zX73kA1D4e9a" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-bottom: 2.5pt"><span style="-sec-ix-redline: true">Total</span></td><td style="padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 2.5pt double; text-align: left"><span style="-sec-ix-redline: true">$</span></td><td style="border-bottom: Black 2.5pt double; text-align: right"><span style="-sec-ix-redline: true">445,929</span></td><td style="padding-bottom: 2.5pt; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 2.5pt double; text-align: left"><span style="-sec-ix-redline: true">$</span></td><td style="border-bottom: Black 2.5pt double; text-align: right"><span style="-sec-ix-redline: true">184,660</span></td><td style="padding-bottom: 2.5pt; text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> </table> <p id="xdx_8AE_zr8yCBejtbqb" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>AGEAGLE AERIAL SYSTEMS INC. AND SUBSIDIARIES </b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>NOTES TO CONSOLIDATED FINANCIAL STATEMENTS</b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>FOR THE YEARS ENDED DECEMBER 31, 2022 AND 2021</b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Note 3 - Balance Sheet Accounts– Continued</b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i>Accrued Expenses</i></b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p id="xdx_890_eus-gaap--ScheduleOfAccountsPayableAndAccruedLiabilitiesTableTextBlock_zicbL9DOk68b" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0.5in; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">As of December 31, 2022 and 2021, accrued expenses consisted of the following as of:</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> <span id="xdx_8BE_zrmkijedhm4a" style="display: none">Schedule of Accrued Expenses</span></span></span></p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="display: none; vertical-align: bottom"> <td><span style="-sec-ix-redline: true"> </span></td><td style="font-weight: bold; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td colspan="2" id="xdx_49C_20221231_z2T0h3FBBYqf" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"><span style="-sec-ix-redline: true">2022</span></td><td style="padding-bottom: 1.5pt; font-weight: bold"><span style="-sec-ix-redline: true"> </span></td><td style="font-weight: bold; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td colspan="2" id="xdx_494_20211231_zbnf2PAJpgth" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"><span style="-sec-ix-redline: true">2021</span></td><td style="padding-bottom: 1.5pt; font-weight: bold"><span style="-sec-ix-redline: true"> </span></td></tr> <tr style="vertical-align: bottom"> <td><span style="-sec-ix-redline: true"> </span></td><td style="font-weight: bold; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td colspan="6" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"><span style="-sec-ix-redline: true">December 31,</span></td><td style="padding-bottom: 1.5pt; font-weight: bold"><span style="-sec-ix-redline: true"> </span></td></tr> <tr style="vertical-align: bottom"> <td><span style="-sec-ix-redline: true"> </span></td><td style="font-weight: bold; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"><span style="-sec-ix-redline: true">2022</span></td><td style="padding-bottom: 1.5pt; font-weight: bold"><span style="-sec-ix-redline: true"> </span></td><td style="font-weight: bold; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"><span style="-sec-ix-redline: true">2021</span></td><td style="padding-bottom: 1.5pt; font-weight: bold"><span style="-sec-ix-redline: true"> </span></td></tr> <tr id="xdx_408_eus-gaap--EmployeeRelatedLiabilitiesCurrentAndNoncurrent_iI_pp0p0_maALCANz7Dr_zOU5L2DNYXB6" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 60%; text-align: left"><span style="-sec-ix-redline: true">Accrued compensation and related liabilities</span></td><td style="width: 2%"><span style="-sec-ix-redline: true"> </span></td> <td style="width: 1%; text-align: left"><span style="-sec-ix-redline: true">$</span></td><td style="width: 16%; text-align: right"><span style="-sec-ix-redline: true">774,916</span></td><td style="width: 1%; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="width: 2%"><span style="-sec-ix-redline: true"> </span></td> <td style="width: 1%; text-align: left"><span style="-sec-ix-redline: true">$</span></td><td style="width: 16%; text-align: right"><span style="-sec-ix-redline: true">1,039,979</span></td><td style="width: 1%; text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> <tr id="xdx_404_eus-gaap--ProductWarrantyAccrualClassifiedCurrent_iI_pp0p0_maALCANz7Dr_z43OzkbHMb9l" style="vertical-align: bottom; background-color: White"> <td style="text-align: left"><span style="-sec-ix-redline: true">Provision for warranty expense</span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true">288,807</span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true">286,115</span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> <tr id="xdx_400_eus-gaap--AccruedProfessionalFeesCurrentAndNoncurrent_iI_pp0p0_maALCANz7Dr_zvk8vsvVc7O7" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left"><span style="-sec-ix-redline: true">Accrued professional fees</span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true">262,737</span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true">267,949</span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> <tr id="xdx_406_eus-gaap--OtherAccruedLiabilitiesCurrentAndNoncurrent_iI_pp0p0_maALCANz7Dr_zV8qfvoNcH65" style="vertical-align: bottom; background-color: White"> <td style="padding-bottom: 1.5pt"><span style="-sec-ix-redline: true">Other</span></td><td style="padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 1.5pt solid; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="border-bottom: Black 1.5pt solid; text-align: right"><span style="-sec-ix-redline: true">354,246</span></td><td style="padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 1.5pt solid; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="border-bottom: Black 1.5pt solid; text-align: right"><span style="-sec-ix-redline: true">307,598</span></td><td style="padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> <tr id="xdx_409_eus-gaap--OtherAccruedLiabilitiesCurrentAndNoncurrent_iI_pp0p0_maALCANz7Dr_zw1R3Kj7NiK7" style="display: none; vertical-align: bottom; background-color: White"> <td style="padding-bottom: 1.5pt"><span style="-sec-ix-redline: true">Other accured liabilites</span></td><td style="padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 1.5pt solid; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="border-bottom: Black 1.5pt solid; text-align: right"><span style="-sec-ix-redline: true">354,246</span></td><td style="padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 1.5pt solid; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="border-bottom: Black 1.5pt solid; text-align: right"><span style="-sec-ix-redline: true">307,598</span></td><td style="padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> <tr id="xdx_404_eus-gaap--AccruedLiabilitiesCurrentAndNoncurrent_iTI_pp0p0_mtALCANz7Dr_zc5k9IskSo36" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 2.5pt"><span style="-sec-ix-redline: true">Total accrued expenses</span></td><td style="padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 2.5pt double; text-align: left"><span style="-sec-ix-redline: true">$</span></td><td style="border-bottom: Black 2.5pt double; text-align: right"><span style="-sec-ix-redline: true">1,680,706</span></td><td style="padding-bottom: 2.5pt; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 2.5pt double; text-align: left"><span style="-sec-ix-redline: true">$</span></td><td style="border-bottom: Black 2.5pt double; text-align: right"><span style="-sec-ix-redline: true">1,901,641</span></td><td style="padding-bottom: 2.5pt; text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> </table> <p id="xdx_8AB_zhDWVq8Obuu9" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p id="xdx_89D_eus-gaap--ScheduleOfAccountsNotesLoansAndFinancingReceivableTextBlock_zkdSpowKgovl" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> <span id="xdx_8B0_zFi5F22hprnj" style="display: none">Schedule of Accounts Receivable, Net </span></span></span></p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td><span style="-sec-ix-redline: true"> </span></td><td style="font-weight: bold; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td colspan="2" id="xdx_49F_20221231_zOK2qn4gEGA7" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"><span style="-sec-ix-redline: true">December 31, 2022</span></td><td style="padding-bottom: 1.5pt; font-weight: bold"><span style="-sec-ix-redline: true"> </span></td><td style="font-weight: bold; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td colspan="2" id="xdx_491_20211231_zdZ2HAljfd9e" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"><span style="-sec-ix-redline: true">December 31, 2021</span></td><td style="padding-bottom: 1.5pt; font-weight: bold"><span style="-sec-ix-redline: true"> </span></td></tr> <tr id="xdx_402_eus-gaap--AccountsReceivableGross_iI_zIh7gRJMa28j" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 60%; text-align: left"><span style="-sec-ix-redline: true">Accounts receivable</span></td><td style="width: 2%"><span style="-sec-ix-redline: true"> </span></td> <td style="width: 1%; text-align: left"><span style="-sec-ix-redline: true">$</span></td><td style="width: 16%; text-align: right"><span style="-sec-ix-redline: true">2,229,840</span></td><td style="width: 1%; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="width: 2%"><span style="-sec-ix-redline: true"> </span></td> <td style="width: 1%; text-align: left"><span style="-sec-ix-redline: true">$</span></td><td style="width: 16%; text-align: right"><span style="-sec-ix-redline: true">2,918,435</span></td><td style="width: 1%; text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> <tr id="xdx_408_eus-gaap--AllowanceForDoubtfulAccountsReceivable_iNI_di_zciLAkno4Ww" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true">Less: Provisions for doubtful accounts</span></td><td style="padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 1.5pt solid; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="border-bottom: Black 1.5pt solid; text-align: right"><span style="-sec-ix-redline: true">(16,800</span></td><td style="padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true">)</span></td><td style="padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 1.5pt solid; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="border-bottom: Black 1.5pt solid; text-align: right"><span style="-sec-ix-redline: true">(29,556</span></td><td style="padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true">)</span></td></tr> <tr id="xdx_408_eus-gaap--AccountsReceivableNetCurrent_iI_zV82sO1E2hlk" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 2.5pt"><span style="-sec-ix-redline: true">Accounts receivable, net</span></td><td style="padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 2.5pt double; text-align: left"><span style="-sec-ix-redline: true">$</span></td><td style="border-bottom: Black 2.5pt double; text-align: right"><span style="-sec-ix-redline: true">2,213,040</span></td><td style="padding-bottom: 2.5pt; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 2.5pt double; text-align: left"><span style="-sec-ix-redline: true">$</span></td><td style="border-bottom: Black 2.5pt double; text-align: right"><span style="-sec-ix-redline: true">2,888,879</span></td><td style="padding-bottom: 2.5pt; text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> </table> 2229840 2918435 16800 29556 2213040 2888879 <p id="xdx_893_eus-gaap--ScheduleOfInventoryCurrentTableTextBlock_zTmEIHVxmzF4" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> <span id="xdx_8BA_z9ciJUPeMCaa" style="display: none">Schedule of Inventories</span></span></span></p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="display: none; vertical-align: bottom"> <td><span style="-sec-ix-redline: true"> </span></td><td style="font-weight: bold; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td colspan="2" id="xdx_497_20221231_zZsRhYzUxoSi" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"><span style="-sec-ix-redline: true">2022</span></td><td style="padding-bottom: 1.5pt; font-weight: bold"><span style="-sec-ix-redline: true"> </span></td><td style="font-weight: bold; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td colspan="2" id="xdx_492_20211231_zIMIDi8eQ6Ik" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"><span style="-sec-ix-redline: true">2021</span></td><td style="padding-bottom: 1.5pt; font-weight: bold"><span style="-sec-ix-redline: true"> </span></td></tr> <tr style="vertical-align: bottom"> <td><span style="-sec-ix-redline: true"> </span></td><td style="font-weight: bold; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td colspan="6" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"><span style="-sec-ix-redline: true">December 31,</span></td><td style="padding-bottom: 1.5pt; font-weight: bold"><span style="-sec-ix-redline: true"> </span></td></tr> <tr style="vertical-align: bottom"> <td><span style="-sec-ix-redline: true"> </span></td><td style="font-weight: bold; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"><span style="-sec-ix-redline: true">2022</span></td><td style="padding-bottom: 1.5pt; font-weight: bold"><span style="-sec-ix-redline: true"> </span></td><td style="font-weight: bold; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"><span style="-sec-ix-redline: true">2021</span></td><td style="padding-bottom: 1.5pt; font-weight: bold"><span style="-sec-ix-redline: true"> </span></td></tr> <tr id="xdx_40A_eus-gaap--InventoryRawMaterials_iI_zbHPExvMC9sf" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 60%; text-align: left"><span style="-sec-ix-redline: true">Raw materials</span></td><td style="width: 2%"><span style="-sec-ix-redline: true"> </span></td> <td style="width: 1%; text-align: left"><span style="-sec-ix-redline: true">$</span></td><td style="width: 16%; text-align: right"><span style="-sec-ix-redline: true">5,288,206</span></td><td style="width: 1%; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="width: 2%"><span style="-sec-ix-redline: true"> </span></td> <td style="width: 1%; text-align: left"><span style="-sec-ix-redline: true">$</span></td><td style="width: 16%; text-align: right"><span style="-sec-ix-redline: true">2,862,293</span></td><td style="width: 1%; text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> <tr id="xdx_40B_eus-gaap--InventoryWorkInProcess_iI_zfE7NM5iuwf2" style="vertical-align: bottom; background-color: White"> <td style="text-align: left"><span style="-sec-ix-redline: true">Work-in process</span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true">1,106,056</span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true">647,829</span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> <tr id="xdx_402_eus-gaap--InventoryFinishedGoods_iI_z58RBF1jSitk" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true">Finished goods</span></td><td style="padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 1.5pt solid; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="border-bottom: Black 1.5pt solid; text-align: right"><span style="-sec-ix-redline: true">614,400</span></td><td style="padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 1.5pt solid; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="border-bottom: Black 1.5pt solid; text-align: right"><span style="-sec-ix-redline: true">833,785</span></td><td style="padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> <tr id="xdx_402_eus-gaap--InventoryGross_iI_zEaTcI8JohNk" style="vertical-align: bottom; background-color: White"> <td style="text-align: left"><span style="-sec-ix-redline: true">Gross inventories</span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true">7,008,662</span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true">4,343,907</span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> <tr id="xdx_401_eus-gaap--InventoryValuationReserves_iNI_di_za6Flz53rLg4" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true">Less: Provision for obsolescence</span></td><td style="padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 1.5pt solid; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="border-bottom: Black 1.5pt solid; text-align: right"><span style="-sec-ix-redline: true">(322,815</span></td><td style="padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true">)</span></td><td style="padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 1.5pt solid; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="border-bottom: Black 1.5pt solid; text-align: right"><span style="-sec-ix-redline: true">(305,399</span></td><td style="padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true">)</span></td></tr> <tr id="xdx_407_eus-gaap--InventoryNet_iI_zk9raXNla5F6" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 2.5pt"><span style="-sec-ix-redline: true">Inventories, net</span></td><td style="padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 2.5pt double; text-align: left"><span style="-sec-ix-redline: true">$</span></td><td style="border-bottom: Black 2.5pt double; text-align: right"><span style="-sec-ix-redline: true">6,685,847</span></td><td style="padding-bottom: 2.5pt; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 2.5pt double; text-align: left"><span style="-sec-ix-redline: true">$</span></td><td style="border-bottom: Black 2.5pt double; text-align: right"><span style="-sec-ix-redline: true">4,038,508</span></td><td style="padding-bottom: 2.5pt; text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> </table> 5288206 2862293 1106056 647829 614400 833785 7008662 4343907 322815 305399 6685847 4038508 <p id="xdx_898_eus-gaap--PropertyPlantAndEquipmentTextBlock_zCURDvA5ypN3" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0.5in; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">As of December 31, 2022 and 2021, property and equipment, net consisted of the following:</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> <span id="xdx_8B4_zHE8xodRPric" style="display: none">Schedule of Property and Equipment, Net</span><span style="display: none"></span></span></span></p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="display: none; vertical-align: bottom"> <td style="border-bottom: Black 1.5pt solid; font-weight: bold"><span style="-sec-ix-redline: true">Type</span></td><td style="font-weight: bold; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"><span style="-sec-ix-redline: true">(Years)</span></td><td style="font-weight: bold; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td colspan="2" id="xdx_492_20221231_zfEeyBilFUif" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"><span style="-sec-ix-redline: true">2022</span></td><td style="padding-bottom: 1.5pt; font-weight: bold"><span style="-sec-ix-redline: true"> </span></td><td style="font-weight: bold; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td colspan="2" id="xdx_494_20211231_zCmm7q455iHl" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"><span style="-sec-ix-redline: true">2021</span></td><td style="padding-bottom: 1.5pt; font-weight: bold"><span style="-sec-ix-redline: true"> </span></td></tr> <tr style="vertical-align: bottom"> <td><span style="-sec-ix-redline: true"> </span></td><td style="font-weight: bold; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="padding-bottom: 1.5pt; font-weight: bold; text-align: center"><span style="-sec-ix-redline: true">Estimated Useful Life</span></td><td style="font-weight: bold; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td colspan="6" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"><span style="-sec-ix-redline: true">December 31,</span></td><td style="padding-bottom: 1.5pt; font-weight: bold"><span style="-sec-ix-redline: true"> </span></td></tr> <tr style="vertical-align: bottom"> <td style="border-bottom: Black 1.5pt solid; font-weight: bold"><span style="-sec-ix-redline: true">Type</span></td><td style="font-weight: bold; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"><span style="-sec-ix-redline: true">(Years)</span></td><td style="font-weight: bold; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"><span style="-sec-ix-redline: true">2022</span></td><td style="padding-bottom: 1.5pt; font-weight: bold"><span style="-sec-ix-redline: true"> </span></td><td style="font-weight: bold; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"><span style="-sec-ix-redline: true">2021</span></td><td style="padding-bottom: 1.5pt; font-weight: bold"><span style="-sec-ix-redline: true"> </span></td></tr> <tr id="xdx_406_eus-gaap--PropertyPlantAndEquipmentGross_iI_hus-gaap--PropertyPlantAndEquipmentByTypeAxis__us-gaap--LeaseholdImprovementsMember_zY7SzLlbNAt9" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 48%; text-align: left"><span style="-sec-ix-redline: true">Leasehold improvements</span></td><td style="width: 2%"><span style="-sec-ix-redline: true"> </span></td> <td style="width: 10%; text-align: center"><span style="-sec-ix-redline: true"><span id="xdx_905_eus-gaap--PropertyPlantAndEquipmentUsefulLife_iI_dtY_c20221231__us-gaap--PropertyPlantAndEquipmentByTypeAxis__us-gaap--LeaseholdImprovementsMember__srt--RangeAxis__srt--MinimumMember_zHuboYJHK8Cg" title="Estimated useful life">3</span></span></td><td style="width: 2%"><span style="-sec-ix-redline: true"> </span></td> <td style="width: 1%; text-align: left"><span style="-sec-ix-redline: true">$</span></td><td style="width: 16%; text-align: right"><span style="-sec-ix-redline: true">106,837</span></td><td style="width: 1%; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="width: 2%"><span style="-sec-ix-redline: true"> </span></td> <td style="width: 1%; text-align: left"><span style="-sec-ix-redline: true">$</span></td><td style="width: 16%; text-align: right"><span style="-sec-ix-redline: true">81,993</span></td><td style="width: 1%; text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> <tr id="xdx_40E_eus-gaap--PropertyPlantAndEquipmentGross_iI_hus-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--ProductionToolsAndEquipmentMember_zpmlLf5Yuvm2" style="vertical-align: bottom; background-color: White"> <td style="text-align: left"><span style="-sec-ix-redline: true">Production tools and equipment</span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: center"><span style="-sec-ix-redline: true"><span id="xdx_903_eus-gaap--PropertyPlantAndEquipmentUsefulLife_iI_dtY_c20221231__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--ProductionToolsAndEquipmentMember_zlpA2DsWXat5" title="Estimated useful life">5</span></span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true">632,514</span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true">417,779</span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> <tr id="xdx_402_eus-gaap--PropertyPlantAndEquipmentGross_iI_hus-gaap--PropertyPlantAndEquipmentByTypeAxis__us-gaap--ComputerEquipmentMember__srt--RangeAxis__srt--MaximumMember_z2jimZj1kf7f" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left"><span style="-sec-ix-redline: true">Computer and office equipment</span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: center"><span style="-sec-ix-redline: true"><span id="xdx_905_eus-gaap--PropertyPlantAndEquipmentUsefulLife_iI_dtY_c20221231__us-gaap--PropertyPlantAndEquipmentByTypeAxis__us-gaap--ComputerEquipmentMember__srt--RangeAxis__srt--MinimumMember_z95ZOnEnK188" title="Estimated useful life">3</span>-<span id="xdx_903_eus-gaap--PropertyPlantAndEquipmentUsefulLife_iI_dtY_c20221231__us-gaap--PropertyPlantAndEquipmentByTypeAxis__us-gaap--ComputerEquipmentMember__srt--RangeAxis__srt--MaximumMember_z1srng1RFAjj" title="Estimated useful life">5</span></span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true">507,637</span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true">559,110</span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> <tr id="xdx_401_eus-gaap--PropertyPlantAndEquipmentGross_iI_hus-gaap--PropertyPlantAndEquipmentByTypeAxis__us-gaap--FurnitureAndFixturesMember_zO3teM5BrEPh" style="vertical-align: bottom; background-color: White"> <td><span style="-sec-ix-redline: true">Furniture</span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: center"><span style="-sec-ix-redline: true"><span id="xdx_902_eus-gaap--PropertyPlantAndEquipmentUsefulLife_iI_dtY_c20221231__us-gaap--PropertyPlantAndEquipmentByTypeAxis__us-gaap--FurnitureAndFixturesMember_zsJjnuE1J1Z2" title="Estimated useful life">5</span></span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true">77,799</span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true">77,971</span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> <tr id="xdx_407_eus-gaap--PropertyPlantAndEquipmentGross_iI_hus-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--DroneEquipmentMember_zjAafKXXz38h" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true">Drone equipment</span></td><td style="padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: center; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span id="xdx_90C_eus-gaap--PropertyPlantAndEquipmentUsefulLife_iI_dtY_c20221231__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--DroneEquipmentMember_z9D8Vle4ttra" title="Estimated useful life">3</span></span></td><td style="padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 1.5pt solid; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="border-bottom: Black 1.5pt solid; text-align: right"><span style="-sec-ix-redline: true">170,109</span></td><td style="padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 1.5pt solid; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="border-bottom: Black 1.5pt solid; text-align: right"><span style="-sec-ix-redline: true">95,393</span></td><td style="padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> <tr id="xdx_406_eus-gaap--PropertyPlantAndEquipmentGross_iI_maPPAENz1t8_zJAxqE2bY9B2" style="vertical-align: bottom; background-color: White"> <td style="text-align: left"><span style="-sec-ix-redline: true">Total Property and equipment</span></td><td><span style="-sec-ix-redline: true"> </span></td> <td><span style="-sec-ix-redline: true"> </span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true">$</span></td><td style="text-align: right"><span style="-sec-ix-redline: true">1,494,896</span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true">$</span></td><td style="text-align: right"><span style="-sec-ix-redline: true">1,232,246</span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> <tr id="xdx_40B_eus-gaap--AccumulatedDepreciationDepletionAndAmortizationPropertyPlantAndEquipment_iNI_di_msPPAENz1t8_zFEccFkGo062" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true">Less: Accumulated depreciation</span></td><td style="padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td><td style="padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 1.5pt solid; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="border-bottom: Black 1.5pt solid; text-align: right"><span style="-sec-ix-redline: true">(703,741</span></td><td style="padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true">)</span></td><td style="padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 1.5pt solid; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="border-bottom: Black 1.5pt solid; text-align: right"><span style="-sec-ix-redline: true">(280,118</span></td><td style="padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true">)</span></td></tr> <tr id="xdx_406_eus-gaap--PropertyPlantAndEquipmentNet_iTI_mtPPAENz1t8_zLQhHuEAHhch" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 2.5pt"><span style="-sec-ix-redline: true">Total Property and equipment, net</span></td><td style="padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"> </span></td><td style="padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 2.5pt double; text-align: left"><span style="-sec-ix-redline: true">$</span></td><td style="border-bottom: Black 2.5pt double; text-align: right"><span style="-sec-ix-redline: true">791,155</span></td><td style="padding-bottom: 2.5pt; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 2.5pt double; text-align: left"><span style="-sec-ix-redline: true">$</span></td><td style="border-bottom: Black 2.5pt double; text-align: right"><span style="-sec-ix-redline: true">952,128</span></td><td style="padding-bottom: 2.5pt; text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> </table> P3Y 106837 81993 P5Y 632514 417779 P3Y P5Y 507637 559110 P5Y 77799 77971 P3Y 170109 95393 1494896 1232246 703741 280118 791155 952128 <p id="xdx_890_eus-gaap--ScheduleOfComprehensiveIncomeLossTableTextBlock_zlgT6v3qgBG9" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> <span id="xdx_8B6_zqbJhbvzh5ng" style="display: none">Schedule of Property and Equipment Depreciation Expense</span></span></span></p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="display: none; vertical-align: bottom"> <td style="border-bottom: Black 1.5pt solid; font-weight: bold"><span style="-sec-ix-redline: true">Type</span></td><td style="font-weight: bold; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td colspan="2" id="xdx_49B_20220101__20221231_zFAyBYdQ3yhj" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"><span style="-sec-ix-redline: true">2022</span></td><td style="padding-bottom: 1.5pt; font-weight: bold"><span style="-sec-ix-redline: true"> </span></td><td style="font-weight: bold; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td colspan="2" id="xdx_497_20210101__20211231_zC54gYklVP7g" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"><span style="-sec-ix-redline: true">2021</span></td><td style="padding-bottom: 1.5pt; font-weight: bold"><span style="-sec-ix-redline: true"> </span></td></tr> <tr style="vertical-align: bottom"> <td><span style="-sec-ix-redline: true"> </span></td><td style="font-weight: bold; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td colspan="6" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"><span style="-sec-ix-redline: true">For Year Ended December 31,</span></td><td style="padding-bottom: 1.5pt; font-weight: bold"><span style="-sec-ix-redline: true"> </span></td></tr> <tr style="vertical-align: bottom"> <td style="border-bottom: Black 1.5pt solid; font-weight: bold"><span style="-sec-ix-redline: true">Type</span></td><td style="font-weight: bold; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"><span style="-sec-ix-redline: true">2022</span></td><td style="padding-bottom: 1.5pt; font-weight: bold"><span style="-sec-ix-redline: true"> </span></td><td style="font-weight: bold; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"><span style="-sec-ix-redline: true">2021</span></td><td style="padding-bottom: 1.5pt; font-weight: bold"><span style="-sec-ix-redline: true"> </span></td></tr> <tr id="xdx_40E_eus-gaap--Depreciation_hus-gaap--IncomeStatementLocationAxis__us-gaap--CostOfSalesMember_ztNI5n6LKpUg" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 60%"><span style="-sec-ix-redline: true">Cost of sales</span></td><td style="width: 2%"><span style="-sec-ix-redline: true"> </span></td> <td style="width: 1%; text-align: left"><span style="-sec-ix-redline: true">$</span></td><td style="width: 16%; text-align: right"><span style="-sec-ix-redline: true">266,468</span></td><td style="width: 1%; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="width: 2%"><span style="-sec-ix-redline: true"> </span></td> <td style="width: 1%; text-align: left"><span style="-sec-ix-redline: true">$</span></td><td style="width: 16%; text-align: right"><span style="-sec-ix-redline: true">55,613</span></td><td style="width: 1%; text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> <tr id="xdx_405_eus-gaap--Depreciation_hus-gaap--IncomeStatementLocationAxis__us-gaap--GeneralAndAdministrativeExpenseMember_z9VCrKkIj7Yc" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true">General and administrative</span></td><td style="padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 1.5pt solid; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="border-bottom: Black 1.5pt solid; text-align: right"><span style="-sec-ix-redline: true">179,461</span></td><td style="padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 1.5pt solid; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="border-bottom: Black 1.5pt solid; text-align: right"><span style="-sec-ix-redline: true">129,047</span></td><td style="padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> <tr id="xdx_40A_eus-gaap--Depreciation_zX73kA1D4e9a" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-bottom: 2.5pt"><span style="-sec-ix-redline: true">Total</span></td><td style="padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 2.5pt double; text-align: left"><span style="-sec-ix-redline: true">$</span></td><td style="border-bottom: Black 2.5pt double; text-align: right"><span style="-sec-ix-redline: true">445,929</span></td><td style="padding-bottom: 2.5pt; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 2.5pt double; text-align: left"><span style="-sec-ix-redline: true">$</span></td><td style="border-bottom: Black 2.5pt double; text-align: right"><span style="-sec-ix-redline: true">184,660</span></td><td style="padding-bottom: 2.5pt; text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> </table> 266468 55613 179461 129047 445929 184660 <p id="xdx_890_eus-gaap--ScheduleOfAccountsPayableAndAccruedLiabilitiesTableTextBlock_zicbL9DOk68b" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0.5in; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">As of December 31, 2022 and 2021, accrued expenses consisted of the following as of:</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> <span id="xdx_8BE_zrmkijedhm4a" style="display: none">Schedule of Accrued Expenses</span></span></span></p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="display: none; vertical-align: bottom"> <td><span style="-sec-ix-redline: true"> </span></td><td style="font-weight: bold; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td colspan="2" id="xdx_49C_20221231_z2T0h3FBBYqf" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"><span style="-sec-ix-redline: true">2022</span></td><td style="padding-bottom: 1.5pt; font-weight: bold"><span style="-sec-ix-redline: true"> </span></td><td style="font-weight: bold; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td colspan="2" id="xdx_494_20211231_zbnf2PAJpgth" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"><span style="-sec-ix-redline: true">2021</span></td><td style="padding-bottom: 1.5pt; font-weight: bold"><span style="-sec-ix-redline: true"> </span></td></tr> <tr style="vertical-align: bottom"> <td><span style="-sec-ix-redline: true"> </span></td><td style="font-weight: bold; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td colspan="6" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"><span style="-sec-ix-redline: true">December 31,</span></td><td style="padding-bottom: 1.5pt; font-weight: bold"><span style="-sec-ix-redline: true"> </span></td></tr> <tr style="vertical-align: bottom"> <td><span style="-sec-ix-redline: true"> </span></td><td style="font-weight: bold; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"><span style="-sec-ix-redline: true">2022</span></td><td style="padding-bottom: 1.5pt; font-weight: bold"><span style="-sec-ix-redline: true"> </span></td><td style="font-weight: bold; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"><span style="-sec-ix-redline: true">2021</span></td><td style="padding-bottom: 1.5pt; font-weight: bold"><span style="-sec-ix-redline: true"> </span></td></tr> <tr id="xdx_408_eus-gaap--EmployeeRelatedLiabilitiesCurrentAndNoncurrent_iI_pp0p0_maALCANz7Dr_zOU5L2DNYXB6" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 60%; text-align: left"><span style="-sec-ix-redline: true">Accrued compensation and related liabilities</span></td><td style="width: 2%"><span style="-sec-ix-redline: true"> </span></td> <td style="width: 1%; text-align: left"><span style="-sec-ix-redline: true">$</span></td><td style="width: 16%; text-align: right"><span style="-sec-ix-redline: true">774,916</span></td><td style="width: 1%; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="width: 2%"><span style="-sec-ix-redline: true"> </span></td> <td style="width: 1%; text-align: left"><span style="-sec-ix-redline: true">$</span></td><td style="width: 16%; text-align: right"><span style="-sec-ix-redline: true">1,039,979</span></td><td style="width: 1%; text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> <tr id="xdx_404_eus-gaap--ProductWarrantyAccrualClassifiedCurrent_iI_pp0p0_maALCANz7Dr_z43OzkbHMb9l" style="vertical-align: bottom; background-color: White"> <td style="text-align: left"><span style="-sec-ix-redline: true">Provision for warranty expense</span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true">288,807</span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true">286,115</span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> <tr id="xdx_400_eus-gaap--AccruedProfessionalFeesCurrentAndNoncurrent_iI_pp0p0_maALCANz7Dr_zvk8vsvVc7O7" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left"><span style="-sec-ix-redline: true">Accrued professional fees</span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true">262,737</span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true">267,949</span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> <tr id="xdx_406_eus-gaap--OtherAccruedLiabilitiesCurrentAndNoncurrent_iI_pp0p0_maALCANz7Dr_zV8qfvoNcH65" style="vertical-align: bottom; background-color: White"> <td style="padding-bottom: 1.5pt"><span style="-sec-ix-redline: true">Other</span></td><td style="padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 1.5pt solid; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="border-bottom: Black 1.5pt solid; text-align: right"><span style="-sec-ix-redline: true">354,246</span></td><td style="padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 1.5pt solid; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="border-bottom: Black 1.5pt solid; text-align: right"><span style="-sec-ix-redline: true">307,598</span></td><td style="padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> <tr id="xdx_409_eus-gaap--OtherAccruedLiabilitiesCurrentAndNoncurrent_iI_pp0p0_maALCANz7Dr_zw1R3Kj7NiK7" style="display: none; vertical-align: bottom; background-color: White"> <td style="padding-bottom: 1.5pt"><span style="-sec-ix-redline: true">Other accured liabilites</span></td><td style="padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 1.5pt solid; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="border-bottom: Black 1.5pt solid; text-align: right"><span style="-sec-ix-redline: true">354,246</span></td><td style="padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 1.5pt solid; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="border-bottom: Black 1.5pt solid; text-align: right"><span style="-sec-ix-redline: true">307,598</span></td><td style="padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> <tr id="xdx_404_eus-gaap--AccruedLiabilitiesCurrentAndNoncurrent_iTI_pp0p0_mtALCANz7Dr_zc5k9IskSo36" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 2.5pt"><span style="-sec-ix-redline: true">Total accrued expenses</span></td><td style="padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 2.5pt double; text-align: left"><span style="-sec-ix-redline: true">$</span></td><td style="border-bottom: Black 2.5pt double; text-align: right"><span style="-sec-ix-redline: true">1,680,706</span></td><td style="padding-bottom: 2.5pt; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 2.5pt double; text-align: left"><span style="-sec-ix-redline: true">$</span></td><td style="border-bottom: Black 2.5pt double; text-align: right"><span style="-sec-ix-redline: true">1,901,641</span></td><td style="padding-bottom: 2.5pt; text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> </table> 774916 1039979 288807 286115 262737 267949 354246 307598 354246 307598 1680706 1901641 <p id="xdx_80C_eus-gaap--LoansNotesTradeAndOtherReceivablesDisclosureTextBlock_z8REj0w9Nooh" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Note 4 – <span id="xdx_824_zjR1e5FR7PY5">Notes Receivable</span></b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i>Valqari</i></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0.5in; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">On October 14, 2020, in connection with, and as an incentive to the entry into a two-year exclusive manufacturing agreement (the “Manufacturing Agreement”) to produce a patented Drone Delivery Station for Valqari, LLC (“Valqari), the Company entered into, as payee, a Convertible Promissory Note pursuant to which the Company made a loan to Valqari (“Valqari”) in the principal aggregate amount of $<span id="xdx_90B_eus-gaap--DebtInstrumentFaceAmount_iI_c20201014__us-gaap--DebtInstrumentAxis__us-gaap--ConvertibleNotesPayableMember_zSipDKzSkeWk" title="Principal aggregate amount">500,000</span> (the “Note”). The Note accrues interest at a rate of three percent per annum.</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0.5in; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The Note matured on April 15, 2021 (the “Maturity Date”), at which time all outstanding principal and interest that had accrued, but remained, unpaid was due. The Note provides for an automatic six month extension of the Maturity Date under the following circumstances (i) Valqari has received in writing, (x) a good faith acquisition offer at a consideration value greater than $<span id="xdx_908_ecustom--GoodFaithAcquisitionOfconsideration_c20210815__20210815_zWgEJFDseHe9" title="Good faith acquisition of consideration">15,000,000</span>, (y) such offer, upon consummation, would result in a change in control (as defined in the note) of Valqari, and (z) at such time Valqari, is actively engaged in the negotiation or finalization of such acquisition transaction; or (ii) Valqari has initiated, or is in the process of initiating, a conversion to a “C-Corporation” under the Internal Revenue Code, whereas such conversion will be completed no later than one day prior to the extended Maturity Date. Valqari was not permitted to prepay the Note prior to the Maturity Date. </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0.5in; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The Note is subject to customary representations and warranties by Valqari, as well as events of default, which may lead to acceleration of the payment of the Note such as (i) failure to pay all of the outstanding principal, plus accrued interest on the Maturity Date or Extended Maturity Date, (ii) Valqari filing a petition or action under any bankruptcy, or other law, or (iii) an involuntary petition is filed again Valqari under any bankruptcy statute (that is not dismissed or discharged within 60 days). The indebtedness evidenced by the Note is subordinated in right of payment to the prior payment in full of any senior indebtedness (as defined in the Note) in existence on the date of the Note or incurred thereafter.</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>AGEAGLE AERIAL SYSTEMS INC. AND SUBSIDIARIES </b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>NOTES TO CONSOLIDATED FINANCIAL STATEMENTS</b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>FOR THE YEARS ENDED DECEMBER 31, 2022 AND 2021</b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Note 4 – Notes Receivable – Continued</b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0.5in; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">On the Maturity Date, AgEagle demanded payment of the Note, including accrued interest, however, Valqari alleged that the Maturity Date was automatically extended to October 14, 2021 (“Extended Maturity Date”), for an additional six months. Upon the Extended Maturity Date, AgEagle demanded payment of the Note, including accrued interest; however, Valqari sought a substantial discount on the amount due under the Note to compensate for alleged breaches by AgEagle under the Manufacturing Agreement. AgEagle disputes the allegations of breach and believes that it is owed a net amount by Valqari under the Manufacturing Agreement, in addition to the amount due under the Note. On November 24, 2021, Valqari made a payment of principal on the Note of $<span id="xdx_902_eus-gaap--RepaymentsOfDebt_c20211124__20211124__us-gaap--DebtInstrumentAxis__us-gaap--ConvertibleNotesPayableMember_z0pNiEbh08r3" title="Payment of principal on the note">315,000</span>. The parties are continuing to negotiate in an attempt to reach an amicable resolution of their disputes; however, AgEagle reserves the right to take legal action to collect the Note in the event that a settlement is not reached.</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i>MicaSense</i></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0.5in; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">On November 16, 2020, AgEagle, as payee, executed a promissory note with Parrot Drones S.A.S. in connection with its acquisition for 100% of the capital stock of MicaSense (the “MicaSense Acquisition”). As of June 30, 2021, Parrot Drones S.A.S. promised to pay to the Company the principal amount of $<span id="xdx_902_eus-gaap--DebtInstrumentFaceAmount_iI_c20201116__us-gaap--DebtInstrumentAxis__custom--PromissoryNoteMember__us-gaap--BusinessAcquisitionAxis__custom--MicaSenseAcquisitionMember_zeqSOO9H23Hl" title="Principal amount">100,000</span> provided, however, that such principal amount was offset and reduced by all amounts paid or due in connection with the purchase price upon closing of the MicaSense Acquisition. (See Note 5)</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i>senseFly</i></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0.5in; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">On August 25, 2021, AgEagle Aerial, as payee, executed a promissory note in connection with its acquisition for <span id="xdx_906_eus-gaap--BusinessAcquisitionPercentageOfVotingInterestsAcquired_iI_pid_dp_uPure_c20210930__us-gaap--DebtInstrumentAxis__custom--PromissoryNoteMember__us-gaap--BusinessAcquisitionAxis__custom--SenseFlyAcquisitionMember_zfBz25hPkwPf">100</span>% of the capital stock of senseFly (the “senseFly Acquisition”). As of September 30, 2021, Parrot Drones S.A.S. promised to pay to the Company the principal amount of $<span id="xdx_90B_eus-gaap--DebtInstrumentFaceAmount_iI_c20210930__us-gaap--DebtInstrumentAxis__custom--PromissoryNoteMember__dei--LegalEntityAxis__custom--SenseFlyAcquisitionMember_zIUKFS3JCEik" title="Principal amount">200,000</span> provided, however, that such principal amount was off-set and reduced by all amounts paid or due in connection with the purchase price upon closing of the senseFly Acquisition. (See Note 5)</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> 500000 15000000 315000 100000 1 200000 <p id="xdx_800_eus-gaap--BusinessCombinationDisclosureTextBlock_zxdd8djM1Xol" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Note 5 – <span id="xdx_826_z1r3aDWT9CK8">Business Acquisitions</span></b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0.5in; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">In line with the Company’s strategic growth initiatives, the Company acquired three companies during the year ended December 31, 2021. The financial results of each of these acquisitions are included in the consolidated financial statements beginning on the respective acquisition dates. Each transaction qualified as an acquisition of a business and was accounted for as a business combination. All acquisitions resulted in the recognition of goodwill. The Company paid these premiums resulting in such goodwill for several reasons, including growing the Company’s customer base, acquiring assembled workforces, expanding its presence in certain markets, and expanding and advancing its product and service offerings. The Company recorded the assets acquired and the liabilities assumed at their acquisition date fair value, with the difference between the fair value of the net assets acquired and the acquisition consideration reflected as goodwill.</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0.5in; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The identifiable intangible assets for acquisitions are valued using the excess earnings method discounted cash flow approach for customer relationships, the relief from royalty method for trade names and technology, the “with or without” method for covenants not to compete and the replacement cost method for the internal property software by incorporating Level 3 inputs, as described under the fair value hierarchy of ASC 820. These unobservable inputs reflect the Company’s assumption about which assumptions market participants would use in pricing an asset on a non-recurring basis. These assets will be amortized over their respective estimated useful lives.</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0.5in; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>AGEAGLE AERIAL SYSTEMS INC. AND SUBSIDIARIES </b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>NOTES TO CONSOLIDATED FINANCIAL STATEMENTS</b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>FOR THE YEARS ENDED DECEMBER 31, 2022 AND 2021</b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Note 5 – Business Acquisitions – Continued</b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0.5in; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">For the years ended December 31, 2022 and 2021, transaction costs related to business combinations totaled $<span id="xdx_909_eus-gaap--BusinessAcquisitionCostOfAcquiredEntityTransactionCosts_iI_c20221231_zk79RUbHITC1" title="Business Acquisition, Transaction Costs">0</span> and $<span id="xdx_908_eus-gaap--BusinessAcquisitionCostOfAcquiredEntityTransactionCosts_iI_c20211231_zIVuVzz5U367" title="Business Acquisition, Transaction Costs">636,673</span>, respectively. These costs are included within general and administrative expenses in the consolidated statements of operations.</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i>MicaSense</i></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0.5in; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">On January 27, 2021 (the “MicaSense Acquisition Date”), the Company entered into a stock purchase agreement (the “MicaSense Purchase Agreement”) with Parrot Drones S.A.S. and Justin B. McAllister (the “MicaSense Sellers”) pursuant to which the Company agreed to acquire <span id="xdx_907_eus-gaap--BusinessAcquisitionPercentageOfVotingInterestsAcquired_iI_dp_uPure_c20210127__us-gaap--BusinessAcquisitionAxis__custom--MicaSenseIncMember__us-gaap--TypeOfArrangementAxis__custom--MicasensePurchaseAgreementMember_zczigTziAtDh" title="Business acquired percentage">100</span>% of the issued and outstanding capital stock of MicaSense from the MicaSense Sellers (the “MicaSense Acquisition”). The aggregate purchase price for the shares of MicaSense was $<span id="xdx_901_eus-gaap--BusinessCombinationConsiderationTransferred1_c20210127__20210127__us-gaap--BusinessAcquisitionAxis__custom--MicaSenseIncMember__us-gaap--TypeOfArrangementAxis__custom--MicasensePurchaseAgreementMember_zRXT9LsRu9vh" title="Aggregate purchase price">23,000,000</span>, less any debt, and subject to a customary working capital adjustment. A portion of the consideration comprises shares of Common stock of the Company, having an aggregate value of $<span id="xdx_909_eus-gaap--PaymentsToAcquireBusinessesGross_c20210127__20210127__us-gaap--BusinessAcquisitionAxis__custom--MicaSenseIncMember__us-gaap--TypeOfArrangementAxis__custom--MicasensePurchaseAgreementMember_zc9V3YRxuFHl" title="Payments to acquire businesses gross">3,000,000</span> based on a volume weighted average trading price of the Common stock over a ten consecutive trading day period prior to the date of issuance of the shares of Common stock to the MicaSense Sellers. On April 27, 2021, the Company issued <span id="xdx_90F_eus-gaap--StockIssuedDuringPeriodSharesRestrictedStockAwardGross_c20210127__20210127__us-gaap--BusinessAcquisitionAxis__custom--MicaSenseIncMember__us-gaap--StatementEquityComponentsAxis__us-gaap--CommonStockMember__us-gaap--TypeOfArrangementAxis__custom--MicasensePurchaseAgreementMember_ztVkIPWm0fj5" title="Stock issued during period shares restricted stock">540,541</span> restricted shares of its Common Stock. The consideration is also subject to a $<span id="xdx_90C_eus-gaap--BusinessCombinationIndemnificationAssetsAmountAsOfAcquisitionDate_iI_c20210427__us-gaap--BusinessAcquisitionAxis__custom--MicaSenseIncMember__us-gaap--TypeOfArrangementAxis__custom--MicasensePurchaseAgreementMember_zxNY4N0RTb6l" title="Indemnification claims">4,750,000</span> holdback to cover any post-closing indemnification claims and to satisfy any purchase price adjustments. The holdback was scheduled to be released in two equal installments, less any amounts paid or reserved for outstanding indemnity claims, on March 31, 2022 and March 31, 2023. The first installment of $<span id="xdx_904_ecustom--BusinessCombinationAssetsFirstInstallment_iI_c20220331__us-gaap--BusinessAcquisitionAxis__custom--MicaSenseIncMember__us-gaap--TypeOfArrangementAxis__custom--MicasensePurchaseAgreementMember_zwUohSW4bTPg" title=" Business combination assets first installment">2,375,000</span> was paid on March 31, 2022 (see below disclosure - <i>Liabilities Related to Business Acquisition Agreements </i>for waiver of the second installment<i>).</i></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0.5in; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">On May 10, 2021, the Company filed a Form S-3 Registration Statement (the “MicaSense Registration Statement”) with the Securities and Exchange Commission (“SEC”), covering the resale of the Shares. The MicaSense Registration Statement was declared effective on June 1, 2021 (File Number: 333-255940). In addition, the Company shall use its best efforts to keep the MicaSense Registration Statement effective and in compliance with the provisions of the Securities Act (including by preparing and filing with the SEC such amendments, including post-effective amendments, and supplements to the MicaSense Registration Statement and the prospectus used in connection therewith as may be necessary) until all Shares and other securities covered by the MicaSense Registration Statement have been disposed. The MicaSense Sellers reimbursed the Company for reasonable legal fees and expenses incurred by the Company in connection with such registration.</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0.5in; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The MicaSense Purchase Agreement contains certain customary representations, warranties, and covenants, including representations and warranties by the MicaSense Sellers with respect to MicaSense’s business, operations and financial condition. The MicaSense Purchase Agreement also includes post-closing covenants relating to the confidentiality and employee non-solicitation obligations of the MicaSense Sellers, and the agreement of the MicaSense Sellers not to compete with certain aspects of the business of MicaSense following the closing of the transaction. The completion of the transactions contemplated by the MicaSense Purchase Agreement is subject to customary closing conditions, including, among others: (i) the absence of a material adverse effect on MicaSense, (ii) the delivery by the parties of certain ancillary documents, including the Registration Rights Agreement, and (iii) the execution by a key employee of MicaSense of an employment agreement. Subject to certain limitations, each of the parties will be indemnified for damages resulting from third party claims and breaches of the parties’ respective representations, warranties, and covenants in the MicaSense Purchase Agreement.</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>AGEAGLE AERIAL SYSTEMS INC. AND SUBSIDIARIES </b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>NOTES TO CONSOLIDATED FINANCIAL STATEMENTS</b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>FOR THE YEARS ENDED DECEMBER 31, 2022 AND 2021</b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Note 5 – Business Acquisitions – Continued</b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0.5in; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The Company performed a valuation analysis of the fair market value of the assets acquired and liabilities assumed. Using the total consideration for the MicaSense Acquisition, the Company determined the allocations to such assets and liabilities. The final purchase price allocation, and the necessary detailed valuations and calculations have been finalized.</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p id="xdx_891_eus-gaap--ScheduleOfAllocationOfPlanAssetsTableTextBlock_hus-gaap--BusinessAcquisitionAxis__custom--MicaSenseIncMember_zQnSBwBK43Mc" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0.5in; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The following table summarizes the allocation of the purchase price as of the MicaSense Acquisition Date:</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0.5in; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; display: none; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> <span id="xdx_8B5_zt26e3nYpGul" style="display: none">Schedule of Allocation of the purchase price as of the Micasense Acquistion Date</span></span></span></p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td style="font-weight: bold"><span style="-sec-ix-redline: true">Calculation of Goodwill:</span></td><td><span style="-sec-ix-redline: true"> </span></td> <td colspan="2" id="xdx_491_20210127__us-gaap--BusinessAcquisitionAxis__custom--MicaSenseIncMember_ztrsduoR6qhg"><span style="-sec-ix-redline: true"> </span></td><td><span style="-sec-ix-redline: true"> </span></td></tr> <tr id="xdx_403_ecustom--NetPurchasePriceIncludingDebtPaid_iI_z0DcuZITLz3c" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 80%; text-align: left"><span style="-sec-ix-redline: true">Net purchase price, including debt paid at close</span></td><td style="width: 2%"><span style="-sec-ix-redline: true"> </span></td> <td style="width: 1%; text-align: left"><span style="-sec-ix-redline: true">$</span></td><td style="width: 16%; text-align: right"><span style="-sec-ix-redline: true">23,375,681</span></td><td style="width: 1%; text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> <tr style="vertical-align: bottom; background-color: White"> <td><span style="-sec-ix-redline: true"> </span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left"><span style="-sec-ix-redline: true">Plus: fair value of liabilities assumed:</span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> <tr id="xdx_400_eus-gaap--BusinessCombinationContingentConsiderationLiabilityCurrent_iI_zh58bzogife9" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true">Current liabilities</span></td><td style="padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 1.5pt solid; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="border-bottom: Black 1.5pt solid; text-align: right"><span style="-sec-ix-redline: true">702,925</span></td><td style="padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> <tr id="xdx_407_eus-gaap--BusinessCombinationRecognizedIdentifiableAssetsAcquiredAndLiabilitiesAssumedCurrentLiabilitiesDeferredRevenue_iI_zYFBa0uOQ4Xj" style="display: none; vertical-align: bottom; background-color: White"> <td style="text-align: left"><span style="-sec-ix-redline: true">Deferred revenue</span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true">319,422</span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> <tr id="xdx_408_eus-gaap--BusinessCombinationRecognizedIdentifiableAssetsAcquiredAndLiabilitiesAssumedCurrentLiabilitiesOther_iI_z497VCt9Ijsl" style="display: none; vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true">Other tangible liabilities</span></td><td style="padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 1.5pt solid; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="border-bottom: Black 1.5pt solid; text-align: right"><span style="-sec-ix-redline: true">272,927</span></td><td style="padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> <tr id="xdx_40C_eus-gaap--DefinedBenefitPlanBenefitObligation_iI_zMRWNy1ORVXj" style="display: none; vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left"><span style="-sec-ix-redline: true">Defined benefit plan obligation</span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true">278,823</span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> <tr id="xdx_404_ecustom--DebtAssumed_z6e4amyJVUsh" style="display: none; vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true">Debt assumed at close</span></td><td style="padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 1.5pt solid; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="border-bottom: Black 1.5pt solid; text-align: right"><span style="-sec-ix-redline: true">2,461,721</span></td><td style="padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> <tr id="xdx_400_eus-gaap--BusinessCombinationRecognizedIdentifiableAssetsAcquiredAndLiabilitiesAssumedLiabilities_iTI_zbxkrHmUvT5c" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-bottom: 1.5pt"><span style="-sec-ix-redline: true">Fair value of liabilities assumed</span></td><td style="padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 1.5pt solid; text-align: left"><span style="-sec-ix-redline: true">$</span></td><td style="border-bottom: Black 1.5pt solid; text-align: right"><span style="-sec-ix-redline: true">702,925</span></td><td style="padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> <tr style="vertical-align: bottom; background-color: White"> <td><span style="-sec-ix-redline: true"> </span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left"><span style="-sec-ix-redline: true">Less: fair value of assets acquired:</span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> <tr id="xdx_400_eus-gaap--BusinessCombinationRecognizedIdentifiableAssetsAcquiredAndLiabilitiesAssumedCashAndEquivalents_iI_zdL9U96FsTne" style="vertical-align: bottom; background-color: White"> <td><span style="-sec-ix-redline: true">Cash</span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true">$</span></td><td style="text-align: right"><span style="-sec-ix-redline: true">885,273</span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> <tr id="xdx_408_eus-gaap--BusinessCombinationRecognizedIdentifiableAssetsAcquiredAndLiabilitiesAssumedEquipment_iI_zoxGhNB5eGLg" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left"><span style="-sec-ix-redline: true">Other tangible assets</span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true">1,165,666</span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> <tr id="xdx_40E_eus-gaap--BusinessCombinationRecognizedIdentifiableAssetsAcquiredAndLiabilitiesAssumedIntangibles_iI_zzOd3jRqCpU9" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true">Identifiable intangible assets</span></td><td style="padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 1.5pt solid; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="border-bottom: Black 1.5pt solid; text-align: right"><span style="-sec-ix-redline: true">3,061,803</span></td><td style="padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> <tr id="xdx_40E_eus-gaap--BusinessCombinationRecognizedIdentifiableAssetsAcquiredAndLiabilitiesAssumedAssets_iTI_z4n7EKndlay8" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-bottom: 1.5pt"><span style="-sec-ix-redline: true">Fair value of assets acquired</span></td><td style="padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 1.5pt solid; text-align: left"><span style="-sec-ix-redline: true">$</span></td><td style="border-bottom: Black 1.5pt solid; text-align: right"><span style="-sec-ix-redline: true">5,112,742</span></td><td style="padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> <tr style="vertical-align: bottom; background-color: White"> <td><span style="-sec-ix-redline: true"> </span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> <tr id="xdx_409_eus-gaap--BusinessCombinationRecognizedIdentifiableAssetsAcquiredAndLiabilitiesAssumedCurrentAssetsOther_iI_zkBSDXZxxbm6" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true">Net nonoperating assets</span></td><td style="padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 1.5pt solid; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="border-bottom: Black 1.5pt solid; text-align: right"><span style="-sec-ix-redline: true">25,000</span></td><td style="padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> <tr id="xdx_405_ecustom--AdjustmentForTransactionExpensesRelatedToPurchasePriceAllocation_iI_zeXTYKlYnAXd" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true">Adjustments for seller transaction expenses related to purchase price allocation</span></td><td style="padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 1.5pt solid; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="border-bottom: Black 1.5pt solid; text-align: right"><span style="-sec-ix-redline: true">32,032</span></td><td style="padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> <tr id="xdx_409_eus-gaap--Goodwill_iTI_zlKTOLhVJQB2" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-weight: bold; padding-bottom: 2.5pt"><span style="-sec-ix-redline: true">Goodwill</span></td><td style="padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 2.5pt double; text-align: left"><span style="-sec-ix-redline: true">$</span></td><td style="border-bottom: Black 2.5pt double; text-align: right"><span style="-sec-ix-redline: true">18,972,896</span></td><td style="padding-bottom: 2.5pt; text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> </table> <p id="xdx_8A6_zqg1R2SiJ6Hk" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0.5in; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The Company recorded revenue from MicaSense of $<span id="xdx_90F_eus-gaap--Revenues_c20210101__20211231__us-gaap--BusinessAcquisitionAxis__custom--MicaSenseIncMember_zDvPLQOH4Yph" title="Revenue from micasense">6,793,727</span> and an operating loss of $<span id="xdx_90B_eus-gaap--OperatingIncomeLoss_c20210101__20211231__us-gaap--BusinessAcquisitionAxis__custom--MicaSenseIncMember_zxlCIF78gypk" title="Operating loss from micasense">1,266,599</span> during the period from the MicaSense Acquisition Date through December 31, 2021.</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i>Measure</i></b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0.5in; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">On April 19, 2021 (the “Measure Acquisition Date”), the Company entered into a stock purchase agreement (the “Measure Purchase Agreement”) with Brandon Torres Declet (“Mr. Torres Declet”), in his capacity as Measure Sellers’ representative, and the sellers named in the Measure Purchase Agreement (the “Measure Sellers”) pursuant to which the Company agreed to acquire <span id="xdx_904_eus-gaap--BusinessAcquisitionPercentageOfVotingInterestsAcquired_iI_c20210419__us-gaap--BusinessAcquisitionAxis__custom--MeasureGlobalIncMember__us-gaap--TypeOfArrangementAxis__custom--MeasurePurchaseAgreementMember_z7d2qcg8TS4a" title="Business acquired percentage">100%</span> of the issued and outstanding capital stock of Measure from the Measure Sellers (the “Measure Acquisition”). The aggregate purchase price for the shares of Measure is $<span id="xdx_906_eus-gaap--BusinessCombinationConsiderationTransferred1_c20210419__20210419__us-gaap--BusinessAcquisitionAxis__custom--MeasureGlobalIncMember__us-gaap--TypeOfArrangementAxis__custom--MeasurePurchaseAgreementMember_zRdqXiRmiTL3" title="Aggregate purchase price">45,000,000</span>, less the amount of Measure’s debt and transaction expenses, and subject to a customary working capital adjustment. The purchase price comprised $<span id="xdx_904_eus-gaap--BusinessCombinationPriceOfAcquisitionExpected_c20210419__20210419__us-gaap--BusinessAcquisitionAxis__custom--MeasureGlobalIncMember__us-gaap--TypeOfArrangementAxis__custom--MeasurePurchaseAgreementMember_zVqW1wNDN7yl" title="Aggregate purchase price">15,000,000</span> in cash, and shares of Common stock of the Company, having an aggregate value of $<span id="xdx_90A_eus-gaap--PaymentsToAcquireBusinessesGross_c20210419__20210419__us-gaap--BusinessAcquisitionAxis__custom--MeasureGlobalIncMember__us-gaap--TypeOfArrangementAxis__custom--MeasurePurchaseAgreementMember_zqb7XrqVPgf4" title="Aggregate value">30,000,000</span> based on a volume weighted average trading price of the Common stock over a seven consecutive trading day period prior to the date of issuance of the shares of Common stock to the Measure Sellers. The Company issued <span id="xdx_90A_eus-gaap--StockIssuedDuringPeriodSharesNewIssues_pid_c20210419__20210419__us-gaap--BusinessAcquisitionAxis__custom--MeasureGlobalIncMember__us-gaap--TypeOfArrangementAxis__custom--MeasurePurchaseAgreementMember__us-gaap--StatementEquityComponentsAxis__us-gaap--CommonStockMember_zbohSoqJdkE4" title="Shares issued">5,319,154</span> shares of Common Stock, in the aggregate, to the Measure Sellers, of which <span id="xdx_907_eus-gaap--StockIssuedDuringPeriodSharesAcquisitions_pid_c20210419__20210419__us-gaap--BusinessAcquisitionAxis__custom--MeasureGlobalIncMember__us-gaap--TypeOfArrangementAxis__custom--MeasurePurchaseAgreementMember__us-gaap--StatementEquityComponentsAxis__us-gaap--CommonStockMember_zHar2jSi77Ki" title="Shares issued">997,338</span> Common Stock shares with an aggregate value of $<span id="xdx_90D_eus-gaap--StockIssuedDuringPeriodValueAcquisitions_c20210419__20210419__us-gaap--BusinessAcquisitionAxis__custom--MeasureGlobalIncMember__us-gaap--TypeOfArrangementAxis__custom--MeasurePurchaseAgreementMember__us-gaap--StatementEquityComponentsAxis__us-gaap--CommonStockMember_zfW25ksVbiWg" title="Value of shares issued">5,625,000</span> were held in escrow to cover any post-closing indemnification claims and to satisfy any purchase price adjustments (the “Heldback Shares”). The <span id="xdx_902_eus-gaap--StockIssuedDuringPeriodSharesPeriodIncreaseDecrease_pid_c20210419__20210419__us-gaap--BusinessAcquisitionAxis__custom--MeasureGlobalIncMember__us-gaap--TypeOfArrangementAxis__custom--MeasurePurchaseAgreementMember__us-gaap--StatementClassOfStockAxis__us-gaap--CommonStockMember_zCNejZVXC5Xi" title="Shares issued">5,319,145</span> of common stock shares issued as consideration resulted in an increase to stockholder’s equity of $<span id="xdx_905_eus-gaap--StockIssuedDuringPeriodValueNewIssues_c20210419__20210419__us-gaap--BusinessAcquisitionAxis__custom--MeasureGlobalIncMember__us-gaap--TypeOfArrangementAxis__custom--MeasurePurchaseAgreementMember__us-gaap--StatementEquityComponentsAxis__us-gaap--CommonStockMember_zGtuxhmaWTi3" title="Value of shares issued">24,375,000</span> and an acquisition related liability of $<span id="xdx_909_eus-gaap--AssetAcquisitionContingentConsiderationLiabilityCurrent_iI_c20210419__us-gaap--AssetAcquisitionAxis__custom--MeasureGlobalIncMember__us-gaap--TypeOfArrangementAxis__custom--MeasurePurchaseAgreementMember_z31SuYHAeIjg" title="Value of shares issued">5,625,000</span> for the Heldback Shares which was recorded on the Measure Acquisition Date. Further, the Company paid $<span id="xdx_90E_eus-gaap--BusinessCombinationRecognizedIdentifiableAssetsAcquiredAndLiabilitiesAssumedCashAndEquivalents_iI_c20210419__us-gaap--BusinessAcquisitionAxis__custom--MeasureGlobalIncMember__us-gaap--TypeOfArrangementAxis__custom--MeasurePurchaseAgreementMember_zVzOP4i7eiJ8" title="cash paid">5,000,000</span> of the cash portion of the purchase price ninety days after the closing date of the transaction. As of December 31, 2021, the Company completed the payment of the cash portion of the purchase price. The holdback was scheduled to be released October 19, 2022, (see disclosure below - Liabilities Related to Business Acquisition Agreements) less any amounts paid or reserved for outstanding indemnity claims and certain amounts subject to employee retention conditions set forth in the Measure Purchase Agreement.</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0.5in; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>AGEAGLE AERIAL SYSTEMS INC. AND SUBSIDIARIES </b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>NOTES TO CONSOLIDATED FINANCIAL STATEMENTS</b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>FOR THE YEARS ENDED DECEMBER 31, 2022 AND 2021</b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Note 5 – Business Acquisitions – Continued</b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0.5in; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The Measure Purchase Agreement contains certain customary representations, warranties, and covenants, including representations and warranties by the Measure Sellers with respect to Measure’s business, operations and financial condition. The Measure Purchase Agreement also includes post-closing covenants relating to the confidentiality and employee non-solicitation obligations of the Measure Sellers, and the agreement of the Measure Sellers not to compete with certain aspects of the business of Measure following the closing of the transaction. The completion of the transactions contemplated by the Purchase Agreement is subject to: (i) the absence of a material adverse effect on Measure, (ii) the delivery by the parties of certain ancillary documents, and (iii) the execution by key employees of Measure of employment offer letters. Subject to certain limitations, each of the parties will be indemnified for damages resulting from third party claims and breaches of the parties’ respective representations, warranties, and covenants in the Purchase Agreement.</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0.5in; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The Shares issuable to the Measure Sellers pursuant to the Measure Purchase Agreement were issued in reliance upon the exemption from registration provided by Section 4(a)(2) of the Securities Act of 1933, as amended (the “Securities Act”), to a limited number of persons who are “accredited investors” or “sophisticated persons” as those terms are defined in Rule 501 of Regulation D promulgated by the SEC, without the use of any general solicitation or advertising to market or otherwise offer the securities for sale. None of the Shares have been registered under the Securities Act, or applicable state securities laws, and none may be offered or sold in the United States absent registration under the Securities Act or an exemption from such registration requirements.</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0.5in; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The Company performed a valuation analysis of the fair market value of the assets to be acquired and liabilities to be assumed. Using the total consideration for the Measure Acquisition, the Company determined the allocations to such assets and liabilities. The final purchase price allocation, and the necessary detailed valuations and calculations have been finalized.</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p id="xdx_89F_eus-gaap--ScheduleOfAllocationOfPlanAssetsTableTextBlock_hus-gaap--BusinessAcquisitionAxis__custom--MeasureGlobalIncMember_znrAPIKnzcOj" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0.5in; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The following table summarizes the allocation of the preliminary purchase price as of the Measure Acquisition Date:</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0.5in; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; display: none; margin: 0pt; text-align: justify"><span style="display: none; font-family: Times New Roman, Times, Serif; font-size: 10pt"><span id="xdx_8B8_zbDnj9Btdrna">Schedule of Allocation of the purchase price as of the Micasense Acquistion Date</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"></p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td style="font-weight: bold"><span style="-sec-ix-redline: true">Calculation of Goodwill:</span></td><td><span style="-sec-ix-redline: true"> </span></td> <td colspan="2" id="xdx_491_20210419__us-gaap--BusinessAcquisitionAxis__custom--MeasureGlobalIncMember_zva1tygviuXl"><span style="-sec-ix-redline: true"> </span></td><td><span style="-sec-ix-redline: true"> </span></td></tr> <tr id="xdx_40F_ecustom--NetPurchasePriceIncludingDebtPaid_iI_zy6IFVLSFoYb" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 80%; text-align: left"><span style="-sec-ix-redline: true">Net purchase price, including debt paid at close</span></td><td style="width: 2%"><span style="-sec-ix-redline: true"> </span></td> <td style="width: 1%; text-align: left"><span style="-sec-ix-redline: true">$</span></td><td style="width: 16%; text-align: right"><span style="-sec-ix-redline: true">45,403,394</span></td><td style="width: 1%; text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> <tr style="vertical-align: bottom; background-color: White"> <td><span style="-sec-ix-redline: true"> </span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left"><span style="-sec-ix-redline: true">Plus: fair value of liabilities assumed:</span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> <tr id="xdx_402_eus-gaap--BusinessCombinationRecognizedIdentifiableAssetsAcquiredAndLiabilitiesAssumedCurrentLiabilitiesDeferredRevenue_iI_zumyKubmGde2" style="vertical-align: bottom; background-color: White"> <td style="text-align: left"><span style="-sec-ix-redline: true">Deferred revenue</span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true">319,422</span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> <tr id="xdx_408_eus-gaap--BusinessCombinationRecognizedIdentifiableAssetsAcquiredAndLiabilitiesAssumedCurrentLiabilitiesOther_iI_zK21HUwaGwEg" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true">Other tangible liabilities</span></td><td style="padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 1.5pt solid; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="border-bottom: Black 1.5pt solid; text-align: right"><span style="-sec-ix-redline: true">272,927</span></td><td style="padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> <tr id="xdx_40A_eus-gaap--BusinessCombinationRecognizedIdentifiableAssetsAcquiredAndLiabilitiesAssumedLiabilities_iTI_zIr2eEzqkWaf" style="vertical-align: bottom; background-color: White"> <td style="padding-left: 10pt; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true">Fair value of liabilities assumed</span></td><td style="padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 1.5pt solid; text-align: left"><span style="-sec-ix-redline: true">$</span></td><td style="border-bottom: Black 1.5pt solid; text-align: right"><span style="-sec-ix-redline: true">592,349</span></td><td style="padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td><span style="-sec-ix-redline: true"> </span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left"><span style="-sec-ix-redline: true">Less: fair value of assets acquired:</span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> <tr id="xdx_402_eus-gaap--BusinessCombinationRecognizedIdentifiableAssetsAcquiredAndLiabilitiesAssumedCashAndEquivalents_iI_zj1GDSKu3we6" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td><span style="-sec-ix-redline: true">Cash</span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true">486,544</span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> <tr id="xdx_40F_eus-gaap--BusinessCombinationRecognizedIdentifiableAssetsAcquiredAndLiabilitiesAssumedEquipment_iI_ziwzMppaOJtl" style="vertical-align: bottom; background-color: White"> <td style="text-align: left"><span style="-sec-ix-redline: true">Other tangible assets</span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true">312,005</span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> <tr id="xdx_409_eus-gaap--BusinessCombinationRecognizedIdentifiableAssetsAcquiredAndLiabilitiesAssumedIntangibles_iI_z8SK7fnqSsqh" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left"><span style="-sec-ix-redline: true">Identifiable intangibles</span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true">2,668,689</span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td><td style="padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 1.5pt solid; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="border-bottom: Black 1.5pt solid; text-align: right"><span style="-sec-ix-redline: true"> </span></td><td style="padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> <tr id="xdx_408_eus-gaap--BusinessCombinationRecognizedIdentifiableAssetsAcquiredAndLiabilitiesAssumedAssets_iTI_zMiI3dm0Xkp3" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-left: 10pt; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true">Fair value of assets acquired</span></td><td style="padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 1.5pt solid; text-align: left"><span style="-sec-ix-redline: true">$</span></td><td style="border-bottom: Black 1.5pt solid; text-align: right"><span style="-sec-ix-redline: true">3,467,238</span></td><td style="padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> <tr style="vertical-align: bottom; background-color: White"> <td><span style="-sec-ix-redline: true"> </span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> <tr id="xdx_40A_eus-gaap--BusinessCombinationRecognizedIdentifiableAssetsAcquiredAndLiabilitiesAssumedCurrentAssetsOther_iI_zxV1NbQOAdmh" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-left: 10pt; text-align: left; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true">Net nonoperating assets</span></td><td style="padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 1.5pt solid; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="border-bottom: Black 1.5pt solid; text-align: right"><span style="-sec-ix-redline: true">39,775</span></td><td style="padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> <tr id="xdx_407_eus-gaap--Goodwill_iTI_zPLCHqhdtIn3" style="vertical-align: bottom; background-color: White"> <td style="padding-left: 10pt; font-weight: bold; padding-bottom: 2.5pt"><span style="-sec-ix-redline: true">Goodwill</span></td><td style="padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 2.5pt double; text-align: left"><span style="-sec-ix-redline: true">$</span></td><td style="border-bottom: Black 2.5pt double; text-align: right"><span style="-sec-ix-redline: true">42,488,730</span></td><td style="padding-bottom: 2.5pt; text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> </table> <p id="xdx_8A7_zjvqPu2Hiysd" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0.5in; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The Company recorded revenue from Measure of $<span id="xdx_901_eus-gaap--Revenues_c20210101__20211231__us-gaap--BusinessAcquisitionAxis__custom--MeasureGlobalIncMember_zfZAO9Dox0Ab" title="Revenue from measure">414,388</span> and an operating loss of $<span id="xdx_90B_eus-gaap--OperatingIncomeLoss_c20210101__20211231__us-gaap--BusinessAcquisitionAxis__custom--MeasureGlobalIncMember_z8W0Q2eYOPna" title="Operating loss from measure">2,257,257</span> during the period from the Measure Acquisition Date through December 31, 2021.</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0.5in; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>AGEAGLE AERIAL SYSTEMS INC. AND SUBSIDIARIES </b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>NOTES TO CONSOLIDATED FINANCIAL STATEMENTS</b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>FOR THE YEARS ENDED DECEMBER 31, 2022 AND 2021</b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Note 5 – Business Acquisitions – Continued</b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i>Measure</i></b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0.5in; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">On April 19, 2022, in accordance with the terms of the Measure Purchase Agreement, the Company delivered a notice of indemnification to the representative of the Measure Sellers seeking the right to set off certain operating losses from the holdback amount. The Company claimed that the operating losses incurred by Measure from the Measure Acquisition Date through April 19, 2022, resulted from breaches of certain representations and warranties made by the Measure Sellers. The Company claimed that it had sustained operating losses in excess of $<span id="xdx_901_eus-gaap--OperatingIncomeLoss_pn6n6_c20220419__20220419__us-gaap--BusinessAcquisitionAxis__custom--MeasureGlobalIncMember__us-gaap--TypeOfArrangementAxis__custom--MeasurePurchaseAgreementMember_zeWxdt1ybYTe" title="Operating loss from measure">13</span> million as a result of the Measure Sellers’ breaches and claimed the entire holdback amount to be applied against these operating losses. On August 22, 2022, the parties entered into a Memorandum of Understanding and Mutual Release (the “Settlement Agreement”) providing for the full and final settlement of all disputes about the Heldback Shares. <span id="xdx_900_eus-gaap--BusinessCombinationSeparatelyRecognizedTransactionsSettlementOfPreexistingRelationshipMethod_pn6n6_c20220419__20220419__us-gaap--BusinessAcquisitionAxis__custom--MeasureGlobalIncMember__us-gaap--TypeOfArrangementAxis__custom--SettlementAgreementMember_zXYDoybNHBWd" title="Settlement">Pursuant to the Settlement Agreement, the Company released 498,669 of the 997,338 Heldback Shares to the Measure Sellers with the remaining 498,669 Heldback Shares being released from escrow and cancelled by the Company.</span></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i>senseFly</i></b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0.5in; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">On October 18, 2021 (the “senseFly Acquisition Date”), the Company entered into a stock purchase agreement (the “senseFly S.A. Purchase Agreement”) with Parrot Drones S.A.S. pursuant to which the Company acquired <span id="xdx_909_eus-gaap--BusinessAcquisitionPercentageOfVotingInterestsAcquired_iI_dp_c20211028__us-gaap--BusinessAcquisitionAxis__custom--SenseFlySAMember__us-gaap--TypeOfArrangementAxis__custom--SenseFlySAPurchaseAgreementMember_zrZ1oXsEF1be" title="Business acquired percentage">100%</span> of the issued and outstanding capital stock of senseFly S.A. from Parrot Drones S.A.S. The aggregate purchase price for the shares of senseFly S.A. is $<span id="xdx_90D_eus-gaap--BusinessCombinationConsiderationTransferred1_c20211028__20211028__us-gaap--BusinessAcquisitionAxis__custom--SenseFlySAMember__us-gaap--TypeOfArrangementAxis__custom--SenseFlySAPurchaseAgreementMember_ztwkM9TxINlf" title="Aggregate purchase price">21,000,000</span>, less the amount of senseFly S.A.’s debt and subject to a customary working capital adjustment. The consideration is also subject to a $<span id="xdx_90C_eus-gaap--BusinessCombinationIndemnificationAssetsAmountAsOfAcquisitionDate_iI_c20211028__us-gaap--BusinessAcquisitionAxis__custom--SenseFlySAMember__us-gaap--TypeOfArrangementAxis__custom--SenseFlySAPurchaseAgreementMember_zCQHeZSGZfW" title="Indemnification claims">4,565,000</span> holdback to cover any post-closing indemnification claims and to satisfy any purchase price adjustments. The holdback was scheduled to be released in two equal installments, less any amounts paid or reserved for outstanding indemnity claims, on December 31, 2022 and December 31, 2023 in accordance with the terms of the senseFly S.A. Purchase Agreement.</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0.5in; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">On October 18, 2021, AgEagle Aerial and the Company entered into a stock purchase agreement (the “senseFly Inc. Purchase Agreement”) with Parrot Inc. pursuant to which AgEagle Aerial agreed to acquire <span id="xdx_900_eus-gaap--BusinessAcquisitionPercentageOfVotingInterestsAcquired_iI_dp_c20211018__us-gaap--BusinessAcquisitionAxis__custom--AgeagleAerialSystemsIncMember__us-gaap--TypeOfArrangementAxis__custom--SenseFlySAPurchaseAgreementMember_zFcTpiZsAp74" title="Business acquired percentage">100%</span> of the issued and outstanding capital stock of senseFly Inc. from Parrot Inc. The aggregate purchase price for the shares of senseFly Inc. is $<span id="xdx_901_eus-gaap--BusinessCombinationConsiderationTransferred1_c20211017__20211018__us-gaap--BusinessAcquisitionAxis__custom--AgeagleAerialSystemsIncMember__us-gaap--TypeOfArrangementAxis__custom--SenseFlySAPurchaseAgreementMember_zKGQR5qE9Xi8" title="Aggregate purchase price">2,000,000</span>, less the amount of senseFly Inc.’s debt and subject to a customary working capital adjustment. The consideration is also subject to a $<span id="xdx_904_eus-gaap--BusinessCombinationIndemnificationAssetsAmountAsOfAcquisitionDate_iI_c20211018__us-gaap--BusinessAcquisitionAxis__custom--AgeagleAerialSystemsIncMember__us-gaap--TypeOfArrangementAxis__custom--SenseFlySAPurchaseAgreementMember_zAA2p5m6PDLl" title="Indemnification claims">435,000</span> holdback to cover any post-closing indemnification claims and to satisfy any purchase price adjustments. The holdback was scheduled to be released in two equal installments, less any amounts paid or reserved for outstanding indemnity claims, on December 31, 2022 and December 31, 2023 in accordance with the terms of the senseFly Inc. Purchase Agreement.</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0.5in; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">A portion of the consideration under the senseFly S.A. Purchase Agreement comprises shares of Common Stock of the Company, par value $<span id="xdx_905_eus-gaap--BusinessAcquisitionSharePrice_iI_c20211018__us-gaap--BusinessAcquisitionAxis__custom--SenseFlySAMember__us-gaap--TypeOfArrangementAxis__custom--SenseFlySAPurchaseAgreementMember_zuQjixWLH3X5" title="Share purchase price">0.001</span>, having an aggregate value of $<span id="xdx_90F_eus-gaap--BusinessCombinationPriceOfAcquisitionExpected_c20211017__20211018__us-gaap--BusinessAcquisitionAxis__custom--SenseFlySAMember__us-gaap--TypeOfArrangementAxis__custom--SenseFlySAPurchaseAgreementMember_zvWqCaUmHNlf" title="Aggeragate purchase price">3,000,000</span>, based on a volume weighted average trading price of the Common Stock over a ten consecutive trading day period prior to the date of issuance of the shares of Common Stock to Parrot Drones S.A.S. The shares of Common Stock are issuable ninety days after the closing date of the transaction. In accordance with the terms of the senseFly S.A. Purchase Agreement, the Company issued <span id="xdx_907_eus-gaap--StockIssuedDuringPeriodSharesAcquisitions_c20211017__20211018__us-gaap--BusinessAcquisitionAxis__custom--SenseFlySAMember__us-gaap--TypeOfArrangementAxis__custom--SenseFlySAPurchaseAgreementMember_z2tGsSoeBVnc" title="Aggeragate shares issued">1,927,407</span> shares of Common Stock to Parrot in January 2022.</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>AGEAGLE AERIAL SYSTEMS INC. AND SUBSIDIARIES </b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>NOTES TO CONSOLIDATED FINANCIAL STATEMENTS</b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>FOR THE YEARS ENDED DECEMBER 31, 2022 AND 2021</b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Note 5 – Business Acquisitions – Continued</b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0.5in; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Pursuant to the terms of the senseFly S.A. Purchase Agreement and a Registration Rights Agreement, dated as of October 19, 2021, the Company filed a Form S-3 Registration Statement (the “senseFly Registration Statement”) with the SEC covering the resale of the Common Stock issued to Parrot Drones S.A.S. The senseFly Registration Statement was declared effective on February 9, 2022. The Company agreed to use its best efforts to keep the senseFly Registration Statement effective and in compliance with the provisions of the Securities Act (including by preparing and filing with the SEC such amendments, including post-effective amendments, and supplements to the senseFly Registration Statement and the prospectus used in connection therewith as may be necessary) until all the shares of Common Stock and other securities issued to Parrot Drones S.A.S. and covered by such Registration Statement have been disposed. Parrot Drones S.A.S. reimbursed the Company $<span id="xdx_90F_eus-gaap--BusinessAcquisitionCostOfAcquiredEntityTransactionCosts_iI_c20220209__us-gaap--BusinessAcquisitionAxis__custom--SenseFlySAMember__us-gaap--TypeOfArrangementAxis__custom--SenseFlySAPurchaseAgreementMember_za5MFrWxmcr3" title="Legal fees">50,000</span> for reasonable legal fees and expenses incurred by the Company in connection with such registration.</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0.5in; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Pursuant to the senseFly S.A. Purchase Agreement, Parrot S.A.S., senseFly S.A. and the Company entered into a six-month transition services agreement and a technology license and support agreement during which time Parrot Drones S.A.S. will provide senseFly S.A. with certain information technology and related transition services. Under the technology license and support agreement, Parrot Drones S.A.S. granted to senseFly S.A. a non-exclusive worldwide perpetual license, subject to certain termination rights of the parties, with respect to certain technology used in the fixed-wing drone manufacturing business of senseFly S.A.</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0.5in; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The Company performed a valuation analysis of the fair market value of the assets to be acquired and liabilities to be assumed. Using the total consideration for the SenseFly Acquisition, the Company determined the allocations to such assets and liabilities. The final purchase price allocation, and the necessary detailed valuations and calculations have been finalized.</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p id="xdx_892_eus-gaap--ScheduleOfAllocationOfPlanAssetsTableTextBlock_hus-gaap--BusinessAcquisitionAxis__custom--SenseFlySAMember_z2uo81tarCh9" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0.5in; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The following table summarizes the allocation of the preliminary purchase price as of the senseFly Acquisition Date:</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0.5in; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; display: none; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="display: none; font-family: Times New Roman, Times, Serif; font-size: 10pt"> <span id="xdx_8B1_zMDEhEaef6ci">Schedule of Allocation of the purchase price as of the Micasense Acquistion Date</span></span></span></p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td style="font-weight: bold"><span style="-sec-ix-redline: true">Calculation of Goodwill:</span></td><td><span style="-sec-ix-redline: true"> </span></td> <td colspan="2" id="xdx_490_20211018__us-gaap--BusinessAcquisitionAxis__custom--SenseFlySAMember_zF5kKDfO5WN6"><span style="-sec-ix-redline: true"> </span></td><td><span style="-sec-ix-redline: true"> </span></td></tr> <tr id="xdx_402_ecustom--NetPurchasePriceIncludingDebtPaid_iI_zi7fRmbdJbN9" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 80%"><span style="-sec-ix-redline: true">Net purchase price</span></td><td style="width: 2%"><span style="-sec-ix-redline: true"> </span></td> <td style="width: 1%; text-align: left"><span style="-sec-ix-redline: true">$</span></td><td style="width: 16%; text-align: right"><span style="-sec-ix-redline: true">20,774,526</span></td><td style="width: 1%; text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> <tr style="vertical-align: bottom; background-color: White"> <td><span style="-sec-ix-redline: true"> </span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left"><span style="-sec-ix-redline: true">Plus: fair value of liabilities assumed:</span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> <tr id="xdx_403_eus-gaap--BusinessCombinationContingentConsiderationLiabilityCurrent_iI_zCY7vyFv3hdg" style="vertical-align: bottom; background-color: White"> <td style="text-align: left"><span style="-sec-ix-redline: true">Current liabilities</span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true">3,913,386</span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> <tr id="xdx_407_eus-gaap--DefinedBenefitPlanBenefitObligation_iI_zeLfFJFS5pce" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left"><span style="-sec-ix-redline: true">Defined benefit plan obligation</span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true">278,823</span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> <tr id="xdx_402_ecustom--DebtAssumed_zLZqYGRfiZ03" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true">Debt assumed at close</span></td><td style="padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 1.5pt solid; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="border-bottom: Black 1.5pt solid; text-align: right"><span style="-sec-ix-redline: true">2,461,721</span></td><td style="padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> <tr id="xdx_406_eus-gaap--BusinessCombinationRecognizedIdentifiableAssetsAcquiredAndLiabilitiesAssumedLiabilities_iI_zZHAD4lqEB9" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-left: 10pt; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true">Fair value of liabilities assumed</span></td><td style="padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 1.5pt solid; text-align: left"><span style="-sec-ix-redline: true">$</span></td><td style="border-bottom: Black 1.5pt solid; text-align: right"><span style="-sec-ix-redline: true">6,653,930</span></td><td style="padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> <tr style="vertical-align: bottom; background-color: White"> <td><span style="-sec-ix-redline: true"> </span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left"><span style="-sec-ix-redline: true">Less: fair value of assets acquired:</span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> <tr id="xdx_409_eus-gaap--BusinessCombinationRecognizedIdentifiableAssetsAcquiredAndLiabilitiesAssumedCashAndEquivalents_iI_zinzU9ZYmCO7" style="vertical-align: bottom; background-color: White"> <td><span style="-sec-ix-redline: true">Cash</span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true">$</span></td><td style="text-align: right"><span style="-sec-ix-redline: true">859,044</span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> <tr id="xdx_403_eus-gaap--BusinessCombinationRecognizedIdentifiableAssetsAcquiredAndLiabilitiesAssumedEquipment_iI_zjEnKEgYeeJk" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left"><span style="-sec-ix-redline: true">Other tangible assets</span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true">6,327,641</span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> <tr id="xdx_40C_eus-gaap--BusinessCombinationRecognizedIdentifiableAssetsAcquiredAndLiabilitiesAssumedIntangibles_iI_zoSuvNILkF4" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true">Identifiable intangible assets</span></td><td style="padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 1.5pt solid; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="border-bottom: Black 1.5pt solid; text-align: right"><span style="-sec-ix-redline: true">7,335,570</span></td><td style="padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> <tr id="xdx_40B_eus-gaap--BusinessCombinationRecognizedIdentifiableAssetsAcquiredAndLiabilitiesAssumedAssets_iI_zXKwBoo0IGXa" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-left: 10pt; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true">Fair value of assets acquired</span></td><td style="padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 1.5pt solid; text-align: left"><span style="-sec-ix-redline: true">$</span></td><td style="border-bottom: Black 1.5pt solid; text-align: right"><span style="-sec-ix-redline: true">14,522,255</span></td><td style="padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> <tr style="vertical-align: bottom; background-color: White"> <td><span style="-sec-ix-redline: true"> </span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> <tr id="xdx_40B_eus-gaap--BusinessCombinationRecognizedIdentifiableAssetsAcquiredAndLiabilitiesAssumedCurrentAssetsOther_iI_zAmNAnrFBURk" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-left: 10pt; text-align: left; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true">Net nonoperating assets</span></td><td style="padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 1.5pt solid; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="border-bottom: Black 1.5pt solid; text-align: right"><span style="-sec-ix-redline: true">250,624</span></td><td style="padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> <tr id="xdx_40B_eus-gaap--Goodwill_iTI_zcO7ILBlHRal" style="vertical-align: bottom; background-color: White"> <td style="padding-left: 10pt; font-weight: bold; padding-bottom: 2.5pt"><span style="-sec-ix-redline: true">Goodwill</span></td><td style="padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 2.5pt double; text-align: left"><span style="-sec-ix-redline: true">$</span></td><td style="border-bottom: Black 2.5pt double; text-align: right"><span style="-sec-ix-redline: true">12,655,577</span></td><td style="padding-bottom: 2.5pt; text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> </table> <p id="xdx_8A4_zDt3zOVLHo4l" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>AGEAGLE AERIAL SYSTEMS INC. AND SUBSIDIARIES </b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>NOTES TO CONSOLIDATED FINANCIAL STATEMENTS</b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>FOR THE YEARS ENDED DECEMBER 31, 2022 AND 2021</b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Note 5 – Business Acquisitions – Continued</b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0.5in; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The Company recorded revenue from senseFly of $<span id="xdx_90A_eus-gaap--Revenues_c20210101__20211231__us-gaap--BusinessAcquisitionAxis__custom--SenseFlySAMember_znGc8clZPHrh" title="Revenue from measure">2,428,858</span> and a net loss of $<span id="xdx_90A_eus-gaap--OperatingIncomeLoss_c20210101__20211231__us-gaap--BusinessAcquisitionAxis__custom--SenseFlySAMember_zF98nnDIRJif" title="Operating loss from measure">1,819,377</span> during the period from the senseFly Acquisition Date through December 31, 2021.</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i>Liabilities Related to Business Acquisition Agreements</i></b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0.5in; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">On July 22, 2022, <span id="xdx_903_eus-gaap--BusinessAcquisitionDescriptionOfAcquiredEntity_c20220722__20220722__us-gaap--BusinessAcquisitionAxis__custom--MicaSenseIncMember__us-gaap--TypeOfArrangementAxis__custom--MicasenseWavierAgreementMember_zj6ZY2P4AtCc" title="Business acquisition payment obligation">the Company, the MicaSense Buyer and Parrot entered into a Waiver Agreement (the “MicaSense Waiver Agreement”) pursuant to which (i) Parrot agreed to waive the obligation of the Company and the MicaSense Buyer to pay Parrot $2,351,202, or the portion of the holdback amount due on March 31, 2023 (the “MicaSense Remaining Holdback Payment”), and (ii) upon the Company’s payment to Parrot of $1,175,601 (the “MicaSense Final Purchase Price Payment,” representing 50% of the MicaSense Remaining Holdback Payment), the Company and MicaSense Buyer will be released from any further obligation or liability for payment of any holdback amount under the MicaSense Purchase Agreement. On July 29, 2022, the Company made the MicaSense Final Purchase Price Payment to Parrot in full satisfaction of its payment obligations under the MicaSense Purchase Agreement, except for $23,798 owed to Justin McCallister.</span></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0.5in; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">On July 22, 2022, <span id="xdx_90E_eus-gaap--BusinessAcquisitionDescriptionOfAcquiredEntity_c20220722__20220722__us-gaap--BusinessAcquisitionAxis__custom--SenseFlySAMember__us-gaap--TypeOfArrangementAxis__custom--SenseFlySAWaiverAgreementMember_zNafCfrIfe02" title="Business acquisition payment obligation">the Company and Parrot entered into a Waiver Agreement (the “senseFly S.A. Waiver Agreement”) pursuant to which (i) Parrot agreed to waive the obligation of the Company to pay Parrot a portion of the holdback amount due on December 31, 2022 and December 31, 2023 (collectively, the “senseFly S.A. Remaining Holdback Payments”); (ii) the parties agreed to waive Parrot’s obligation to reimburse the Company for a portion of the legal costs and expenses incurred by the Company related to the filing of a registration statement in connection with the transactions contemplated by the senseFly S.A. Purchase Agreement; and (iii) upon the Company’s payment to Parrot of $2,257,500 (“the senseFly S.A. Final Purchase Price Payment,” representing 50% of the senseFly S.A. Remaining Holdback Payments less 50% of the registration statement expenses), the Company will be released from any further obligation or liability for payment of any holdback amount under the senseFly S.A. Purchase Agreement. On July 29, 2022, the Company made the senseFly S.A. Final Purchase Price Payment to Parrot in full satisfaction of its payment obligations under the senseFly S.A. Purchase Agreement and the senseFly S.A. Waiver Agreement.</span></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0.5in; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">On July 22, 2022, <span id="xdx_909_eus-gaap--BusinessAcquisitionDescriptionOfAcquiredEntity_c20220722__20220722__us-gaap--BusinessAcquisitionAxis__custom--SenseFlyIncMember__us-gaap--TypeOfArrangementAxis__custom--SenseFlyIncWaiverAgreementMember_zRl6WaSresog" title="Business acquisition payment obligation">the Company, the senseFly Inc. Buyer, and Parrot Inc. entered into a Waiver Agreement (the “senseFly Inc. Waiver Agreement”) pursuant to which (i) Parrot Inc. agreed to waive the obligation of the Company and the senseFly Inc. Buyer to pay Parrot Inc. a portion of the holdback amount due on December 31, 2022 and December 31, 2023 (collectively, the “senseFly Inc. Remaining Holdback Payments”); (ii) upon the Company’s payment to Parrot Inc. of $217,500 (the “senseFly Inc. Final Purchase Price Payment,” representing 50% of the senseFly Inc. Remaining Holdback Payments), the Company and the senseFly Inc. Buyer will be released from any further obligation or liability for any remaining holdback amount under the senseFly Inc. Purchase Agreement. On July 29, 2022, the Company made the senseFly Inc. Final Purchase Price Payment to Parrot Inc. in full satisfaction of its payment obligations under the senseFly Inc. Purchase Agreement and the senseFly Inc. Waiver Agreement.</span></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0.5in; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>AGEAGLE AERIAL SYSTEMS INC. AND SUBSIDIARIES </b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>NOTES TO CONSOLIDATED FINANCIAL STATEMENTS</b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>FOR THE YEARS ENDED DECEMBER 31, 2022 AND 2021</b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Note 5 – Business Acquisitions – Continued</b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0.5in; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Pursuant to the terms of the Measure Acquisition Purchase Agreement (the “Purchase Agreement”) <span id="xdx_900_eus-gaap--BusinessAcquisitionDescriptionOfAcquiredEntity_c20220722__20220722__us-gaap--TypeOfArrangementAxis__custom--MeasurePurchaseAgreementMember__us-gaap--BusinessAcquisitionAxis__custom--MeasureAcquisitionMember_zW7siPLFQYoe" title="Business acquisition payment obligation">the Company issued an aggregate of 5,319,145 shares of the Company’s common stock to the Sellers of Measure as part of the consideration for the acquisition, of which 997,338 shares were held back (the “Heldback Shares”) to cover post-closing indemnification claims and to satisfy any purchase price adjustments (see also disclosure above). Pursuant to the terms of the Purchase Agreement, the Heldback Shares were scheduled to be released in three tranches, on the 12-month, 18-month and 24-month anniversary of the closing date of the acquisition. The Company made a claim for indemnification against the Heldback Shares. Pursuant to the Settlement Agreement entered on August 22, 2022, the Company released all the Measure shares held in escrow along with any disputes regarding the 997,338 Heldback Shares. As a result, 498,669 of the Heldback Shares were released to the Measure Sellers with the remaining 498,669 Heldback Shares being cancelled by the Company which reduced the issued and outstanding common stock and causing an increase to stockholders’ equity of $2,812,500.</span></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0.5in; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">During the year ended December 31, 2022, the Company recognized a debt extinguishment gain in connection with the settlement of the acquisition related liabilities disclosed above in the amount of $<span id="xdx_904_eus-gaap--GainsLossesOnExtinguishmentOfDebt_c20220101__20221231__us-gaap--TypeOfArrangementAxis__custom--LiabilitiesRelatedToBusinessAcquisitionAgreementsMember_zgqUm1qRJtEf" title="Business acquisition payment obligation">6,463,101</span> which has been presented on the consolidated statement of operations and comprehensive loss.</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p id="xdx_893_ecustom--ScheduleOfLiabilitiesRelatedToBusinessAcquisitionAgreementsTableTextBlock_z0dDg5zImek8" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0.5in; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">As of December 31, 2022 and December 31, 2021, liabilities related to business acquisition agreements consist of the following:</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0.5in; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; display: none; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="display: none; font-family: Times New Roman, Times, Serif; font-size: 10pt"> <span id="xdx_8B7_z3c6wcrSCeFg">Schedule of Liabilities Related to Acquisition Agreements</span></span></span></p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td><span style="-sec-ix-redline: true"> </span></td><td style="font-weight: bold; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td colspan="2" id="xdx_491_20221231_zDTRgt2ibTPa" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"><span style="-sec-ix-redline: true">December 31, 2022</span></td><td style="padding-bottom: 1.5pt; font-weight: bold"><span style="-sec-ix-redline: true"> </span></td><td style="font-weight: bold; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td colspan="2" id="xdx_491_20211231_zPR2RzIXSvyg" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"><span style="-sec-ix-redline: true">December 31, 2021</span></td><td style="padding-bottom: 1.5pt; font-weight: bold"><span style="-sec-ix-redline: true"> </span></td></tr> <tr id="xdx_40E_eus-gaap--BusinessCombinationRecognizedIdentifiableAssetsAcquiredAndLiabilitiesAssumedContingentLiability_iI_hus-gaap--TypeOfArrangementAxis__custom--MicasensePurchaseAgreementMember_zGlWZvNhddA" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 60%; text-align: left"><span style="-sec-ix-redline: true">Holdback related to MicaSense Acquisition Agreement</span></td><td style="width: 2%"><span style="-sec-ix-redline: true"> </span></td> <td style="width: 1%; text-align: left"><span style="-sec-ix-redline: true">$</span></td><td style="width: 16%; text-align: right"><span style="-sec-ix-redline: true">23,798</span></td><td style="width: 1%; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="width: 2%"><span style="-sec-ix-redline: true"> </span></td> <td style="width: 1%; text-align: left"><span style="-sec-ix-redline: true">$</span></td><td style="width: 16%; text-align: right"><span style="-sec-ix-redline: true">4,821,512</span></td><td style="width: 1%; text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> <tr id="xdx_400_eus-gaap--BusinessCombinationRecognizedIdentifiableAssetsAcquiredAndLiabilitiesAssumedContingentLiability_iI_hus-gaap--TypeOfArrangementAxis__custom--MeasurePurchaseAgreementMember_zMKhtiWthKs1" style="vertical-align: bottom; background-color: White"> <td style="text-align: left"><span style="-sec-ix-redline: true">Holdback related to Measure Acquisition</span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true"><span style="-sec-ix-hidden: xdx2ixbrl3151">—</span></span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true">5,625,000</span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> <tr id="xdx_401_eus-gaap--BusinessCombinationRecognizedIdentifiableAssetsAcquiredAndLiabilitiesAssumedContingentLiability_iI_hus-gaap--TypeOfArrangementAxis__custom--SenseFlySAPurchaseAgreementMember_zUq7gO4qVsNa" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true">Holdback related to senseFly Acquisition</span></td><td style="padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 1.5pt solid; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="border-bottom: Black 1.5pt solid; text-align: right"><span style="-sec-ix-redline: true"><span style="-sec-ix-hidden: xdx2ixbrl3154">—</span></span></td><td style="padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 1.5pt solid; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="border-bottom: Black 1.5pt solid; text-align: right"><span style="-sec-ix-redline: true">8,489,989</span></td><td style="padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> <tr id="xdx_401_eus-gaap--BusinessCombinationRecognizedIdentifiableAssetsAcquiredAndLiabilitiesAssumedContingentLiability_iI_zW5Do7U7IKsc" style="vertical-align: bottom; background-color: White"> <td style="text-align: left"><span style="-sec-ix-redline: true">Total acquisition agreement related liabilities</span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true">23,798</span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true">18,936,501</span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> <tr id="xdx_40E_ecustom--BusinessAcquisitionAgreementRelatedLiabilities_zZgDattaNuh4" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true">Less: Current portion business acquisition agreement-related liabilities</span></td><td style="padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 1.5pt solid; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="border-bottom: Black 1.5pt solid; text-align: right"><span style="-sec-ix-redline: true">(23,798</span></td><td style="padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true">)</span></td><td style="padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 1.5pt solid; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="border-bottom: Black 1.5pt solid; text-align: right"><span style="-sec-ix-redline: true">(10,061,501</span></td><td style="padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true">)</span></td></tr> <tr id="xdx_40A_ecustom--LongtermPortionOfBusinessAcquisitionAgreementrelatedLiabilities_iI_z2tYgaqaPDQj" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 2.5pt"><span style="-sec-ix-redline: true">Long term portion of business acquisition agreement-related liabilities</span></td><td style="padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 2.5pt double; text-align: left"><span style="-sec-ix-redline: true">$</span></td><td style="border-bottom: Black 2.5pt double; text-align: right"><span style="-sec-ix-redline: true"><span style="-sec-ix-hidden: xdx2ixbrl3163">—</span></span></td><td style="padding-bottom: 2.5pt; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 2.5pt double; text-align: left"><span style="-sec-ix-redline: true">$</span></td><td style="border-bottom: Black 2.5pt double; text-align: right"><span style="-sec-ix-redline: true">8,875,000</span></td><td style="padding-bottom: 2.5pt; text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> </table> <p id="xdx_8A2_z0rVgXSGNO35" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0.5in; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The remaining liability related to MicaSense Acquisition Agreement is currently classified within accrued liabilities on the consolidated balance sheets.</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i>Pro-Forma Information (Unaudited)</i></b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0.5in; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The acquisitions of MicaSense and Measure were completed in the first quarter of 2021, while the acquisition of senseFly was completed during the fourth quarter of 2021. The 2021 Acquired Companies have complementary businesses with their products and services providing a full stack solution for the commercial drone industry. The Company has combined legacy MicaSense, Measure and senseFly pro-forma supplemental information as follows.</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0.5in; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The unaudited pro forma information for the years ended December 31, 2021, was calculated after applying the Company’s accounting policies and the impact of acquisition date fair value adjustments. The pro forma financial information presents the combined results of operations of MicaSense, Measure and senseFly as if these acquisitions had occurred on January 1, 2021, after giving to certain pro-forma adjustments. The pro-forma adjustments reflected herein include only those adjustments that are factually supportable and directly attributable to the acquisitions.</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>AGEAGLE AERIAL SYSTEMS INC. AND SUBSIDIARIES </b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>NOTES TO CONSOLIDATED FINANCIAL STATEMENTS</b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>FOR THE YEARS ENDED DECEMBER 31, 2022 AND 2021</b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Note 5 – Business Acquisitions – Continued</b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p id="xdx_89A_eus-gaap--BusinessAcquisitionProFormaInformationTextBlock_z99CmsVjcAw1" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0.5in; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">These pro forma adjustments include:</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0.5in; text-align: justify"><span style="-sec-ix-redline: true"><span style="display: none; font-family: Times New Roman, Times, Serif; font-size: 10pt"> <span id="xdx_8BF_zewoxjYYvVS1">Schedule of Pro-forma Information</span></span></span></p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="display: none; vertical-align: bottom"> <td><span style="-sec-ix-redline: true"> </span></td><td style="font-weight: bold; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td colspan="2" id="xdx_490_20220101__20221231_zvTyYin0Dsyi" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"><span style="-sec-ix-redline: true">2022</span></td><td style="padding-bottom: 1.5pt; font-weight: bold"><span style="-sec-ix-redline: true"> </span></td><td style="font-weight: bold; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td colspan="2" id="xdx_493_20210101__20211231_zEGxOguLZBl3" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"><span style="-sec-ix-redline: true">2021</span></td><td style="padding-bottom: 1.5pt; font-weight: bold"><span style="-sec-ix-redline: true"> </span></td></tr> <tr style="vertical-align: bottom"> <td><span style="-sec-ix-redline: true"> </span></td><td style="padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td colspan="6" style="border-bottom: Black 1.5pt solid; text-align: center"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>For the Year Ended December 31,</b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>(Unaudited)</b></span></span></p></td><td style="padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td></tr> <tr style="vertical-align: bottom"> <td><span style="-sec-ix-redline: true"> </span></td><td style="font-weight: bold; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"><span style="-sec-ix-redline: true">2022</span></td><td style="padding-bottom: 1.5pt; font-weight: bold"><span style="-sec-ix-redline: true"> </span></td><td style="font-weight: bold; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"><span style="-sec-ix-redline: true">2021</span></td><td style="padding-bottom: 1.5pt; font-weight: bold"><span style="-sec-ix-redline: true"> </span></td></tr> <tr id="xdx_40D_eus-gaap--BusinessAcquisitionsProFormaRevenue_z6vrJKbTZg1d" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 60%"><span style="-sec-ix-redline: true">Revenues</span></td><td style="width: 2%"><span style="-sec-ix-redline: true"> </span></td> <td style="width: 1%; text-align: left"><span style="-sec-ix-redline: true">$</span></td><td style="width: 16%; text-align: right"><span style="-sec-ix-redline: true"><span style="-sec-ix-hidden: xdx2ixbrl3168">—</span></span></td><td style="width: 1%; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="width: 2%"><span style="-sec-ix-redline: true"> </span></td> <td style="width: 1%; text-align: left"><span style="-sec-ix-redline: true">$</span></td><td style="width: 16%; text-align: right"><span style="-sec-ix-redline: true">19,564,651</span></td><td style="width: 1%; text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> <tr id="xdx_40B_eus-gaap--BusinessAcquisitionsProFormaNetIncomeLoss_z0AAURj7W8W2" style="vertical-align: bottom; background-color: White"> <td style="text-align: left"><span style="-sec-ix-redline: true">Net loss</span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true">$</span></td><td style="text-align: right"><span style="-sec-ix-redline: true"><span style="-sec-ix-hidden: xdx2ixbrl3171">—</span></span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true">$</span></td><td style="text-align: right"><span style="-sec-ix-redline: true">(36,395,212</span></td><td style="text-align: left"><span style="-sec-ix-redline: true">)</span></td></tr> </table> <p id="xdx_8AE_zjYOc1fvsqA2" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> 0 636673 1 23000000 3000000 540541 4750000 2375000 <p id="xdx_891_eus-gaap--ScheduleOfAllocationOfPlanAssetsTableTextBlock_hus-gaap--BusinessAcquisitionAxis__custom--MicaSenseIncMember_zQnSBwBK43Mc" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0.5in; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The following table summarizes the allocation of the purchase price as of the MicaSense Acquisition Date:</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0.5in; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; display: none; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> <span id="xdx_8B5_zt26e3nYpGul" style="display: none">Schedule of Allocation of the purchase price as of the Micasense Acquistion Date</span></span></span></p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td style="font-weight: bold"><span style="-sec-ix-redline: true">Calculation of Goodwill:</span></td><td><span style="-sec-ix-redline: true"> </span></td> <td colspan="2" id="xdx_491_20210127__us-gaap--BusinessAcquisitionAxis__custom--MicaSenseIncMember_ztrsduoR6qhg"><span style="-sec-ix-redline: true"> </span></td><td><span style="-sec-ix-redline: true"> </span></td></tr> <tr id="xdx_403_ecustom--NetPurchasePriceIncludingDebtPaid_iI_z0DcuZITLz3c" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 80%; text-align: left"><span style="-sec-ix-redline: true">Net purchase price, including debt paid at close</span></td><td style="width: 2%"><span style="-sec-ix-redline: true"> </span></td> <td style="width: 1%; text-align: left"><span style="-sec-ix-redline: true">$</span></td><td style="width: 16%; text-align: right"><span style="-sec-ix-redline: true">23,375,681</span></td><td style="width: 1%; text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> <tr style="vertical-align: bottom; background-color: White"> <td><span style="-sec-ix-redline: true"> </span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left"><span style="-sec-ix-redline: true">Plus: fair value of liabilities assumed:</span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> <tr id="xdx_400_eus-gaap--BusinessCombinationContingentConsiderationLiabilityCurrent_iI_zh58bzogife9" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true">Current liabilities</span></td><td style="padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 1.5pt solid; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="border-bottom: Black 1.5pt solid; text-align: right"><span style="-sec-ix-redline: true">702,925</span></td><td style="padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> <tr id="xdx_407_eus-gaap--BusinessCombinationRecognizedIdentifiableAssetsAcquiredAndLiabilitiesAssumedCurrentLiabilitiesDeferredRevenue_iI_zYFBa0uOQ4Xj" style="display: none; vertical-align: bottom; background-color: White"> <td style="text-align: left"><span style="-sec-ix-redline: true">Deferred revenue</span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true">319,422</span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> <tr id="xdx_408_eus-gaap--BusinessCombinationRecognizedIdentifiableAssetsAcquiredAndLiabilitiesAssumedCurrentLiabilitiesOther_iI_z497VCt9Ijsl" style="display: none; vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true">Other tangible liabilities</span></td><td style="padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 1.5pt solid; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="border-bottom: Black 1.5pt solid; text-align: right"><span style="-sec-ix-redline: true">272,927</span></td><td style="padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> <tr id="xdx_40C_eus-gaap--DefinedBenefitPlanBenefitObligation_iI_zMRWNy1ORVXj" style="display: none; vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left"><span style="-sec-ix-redline: true">Defined benefit plan obligation</span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true">278,823</span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> <tr id="xdx_404_ecustom--DebtAssumed_z6e4amyJVUsh" style="display: none; vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true">Debt assumed at close</span></td><td style="padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 1.5pt solid; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="border-bottom: Black 1.5pt solid; text-align: right"><span style="-sec-ix-redline: true">2,461,721</span></td><td style="padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> <tr id="xdx_400_eus-gaap--BusinessCombinationRecognizedIdentifiableAssetsAcquiredAndLiabilitiesAssumedLiabilities_iTI_zbxkrHmUvT5c" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-bottom: 1.5pt"><span style="-sec-ix-redline: true">Fair value of liabilities assumed</span></td><td style="padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 1.5pt solid; text-align: left"><span style="-sec-ix-redline: true">$</span></td><td style="border-bottom: Black 1.5pt solid; text-align: right"><span style="-sec-ix-redline: true">702,925</span></td><td style="padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> <tr style="vertical-align: bottom; background-color: White"> <td><span style="-sec-ix-redline: true"> </span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left"><span style="-sec-ix-redline: true">Less: fair value of assets acquired:</span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> <tr id="xdx_400_eus-gaap--BusinessCombinationRecognizedIdentifiableAssetsAcquiredAndLiabilitiesAssumedCashAndEquivalents_iI_zdL9U96FsTne" style="vertical-align: bottom; background-color: White"> <td><span style="-sec-ix-redline: true">Cash</span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true">$</span></td><td style="text-align: right"><span style="-sec-ix-redline: true">885,273</span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> <tr id="xdx_408_eus-gaap--BusinessCombinationRecognizedIdentifiableAssetsAcquiredAndLiabilitiesAssumedEquipment_iI_zoxGhNB5eGLg" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left"><span style="-sec-ix-redline: true">Other tangible assets</span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true">1,165,666</span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> <tr id="xdx_40E_eus-gaap--BusinessCombinationRecognizedIdentifiableAssetsAcquiredAndLiabilitiesAssumedIntangibles_iI_zzOd3jRqCpU9" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true">Identifiable intangible assets</span></td><td style="padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 1.5pt solid; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="border-bottom: Black 1.5pt solid; text-align: right"><span style="-sec-ix-redline: true">3,061,803</span></td><td style="padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> <tr id="xdx_40E_eus-gaap--BusinessCombinationRecognizedIdentifiableAssetsAcquiredAndLiabilitiesAssumedAssets_iTI_z4n7EKndlay8" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-bottom: 1.5pt"><span style="-sec-ix-redline: true">Fair value of assets acquired</span></td><td style="padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 1.5pt solid; text-align: left"><span style="-sec-ix-redline: true">$</span></td><td style="border-bottom: Black 1.5pt solid; text-align: right"><span style="-sec-ix-redline: true">5,112,742</span></td><td style="padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> <tr style="vertical-align: bottom; background-color: White"> <td><span style="-sec-ix-redline: true"> </span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> <tr id="xdx_409_eus-gaap--BusinessCombinationRecognizedIdentifiableAssetsAcquiredAndLiabilitiesAssumedCurrentAssetsOther_iI_zkBSDXZxxbm6" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true">Net nonoperating assets</span></td><td style="padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 1.5pt solid; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="border-bottom: Black 1.5pt solid; text-align: right"><span style="-sec-ix-redline: true">25,000</span></td><td style="padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> <tr id="xdx_405_ecustom--AdjustmentForTransactionExpensesRelatedToPurchasePriceAllocation_iI_zeXTYKlYnAXd" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true">Adjustments for seller transaction expenses related to purchase price allocation</span></td><td style="padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 1.5pt solid; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="border-bottom: Black 1.5pt solid; text-align: right"><span style="-sec-ix-redline: true">32,032</span></td><td style="padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> <tr id="xdx_409_eus-gaap--Goodwill_iTI_zlKTOLhVJQB2" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-weight: bold; padding-bottom: 2.5pt"><span style="-sec-ix-redline: true">Goodwill</span></td><td style="padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 2.5pt double; text-align: left"><span style="-sec-ix-redline: true">$</span></td><td style="border-bottom: Black 2.5pt double; text-align: right"><span style="-sec-ix-redline: true">18,972,896</span></td><td style="padding-bottom: 2.5pt; text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> </table> 23375681 702925 319422 272927 278823 2461721 702925 885273 1165666 3061803 5112742 25000 32032 18972896 6793727 1266599 1 45000000 15000000 30000000 5319154 997338 5625000 5319145 24375000 5625000 5000000 <p id="xdx_89F_eus-gaap--ScheduleOfAllocationOfPlanAssetsTableTextBlock_hus-gaap--BusinessAcquisitionAxis__custom--MeasureGlobalIncMember_znrAPIKnzcOj" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0.5in; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The following table summarizes the allocation of the preliminary purchase price as of the Measure Acquisition Date:</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0.5in; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; display: none; margin: 0pt; text-align: justify"><span style="display: none; font-family: Times New Roman, Times, Serif; font-size: 10pt"><span id="xdx_8B8_zbDnj9Btdrna">Schedule of Allocation of the purchase price as of the Micasense Acquistion Date</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"></p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td style="font-weight: bold"><span style="-sec-ix-redline: true">Calculation of Goodwill:</span></td><td><span style="-sec-ix-redline: true"> </span></td> <td colspan="2" id="xdx_491_20210419__us-gaap--BusinessAcquisitionAxis__custom--MeasureGlobalIncMember_zva1tygviuXl"><span style="-sec-ix-redline: true"> </span></td><td><span style="-sec-ix-redline: true"> </span></td></tr> <tr id="xdx_40F_ecustom--NetPurchasePriceIncludingDebtPaid_iI_zy6IFVLSFoYb" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 80%; text-align: left"><span style="-sec-ix-redline: true">Net purchase price, including debt paid at close</span></td><td style="width: 2%"><span style="-sec-ix-redline: true"> </span></td> <td style="width: 1%; text-align: left"><span style="-sec-ix-redline: true">$</span></td><td style="width: 16%; text-align: right"><span style="-sec-ix-redline: true">45,403,394</span></td><td style="width: 1%; text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> <tr style="vertical-align: bottom; background-color: White"> <td><span style="-sec-ix-redline: true"> </span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left"><span style="-sec-ix-redline: true">Plus: fair value of liabilities assumed:</span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> <tr id="xdx_402_eus-gaap--BusinessCombinationRecognizedIdentifiableAssetsAcquiredAndLiabilitiesAssumedCurrentLiabilitiesDeferredRevenue_iI_zumyKubmGde2" style="vertical-align: bottom; background-color: White"> <td style="text-align: left"><span style="-sec-ix-redline: true">Deferred revenue</span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true">319,422</span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> <tr id="xdx_408_eus-gaap--BusinessCombinationRecognizedIdentifiableAssetsAcquiredAndLiabilitiesAssumedCurrentLiabilitiesOther_iI_zK21HUwaGwEg" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true">Other tangible liabilities</span></td><td style="padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 1.5pt solid; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="border-bottom: Black 1.5pt solid; text-align: right"><span style="-sec-ix-redline: true">272,927</span></td><td style="padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> <tr id="xdx_40A_eus-gaap--BusinessCombinationRecognizedIdentifiableAssetsAcquiredAndLiabilitiesAssumedLiabilities_iTI_zIr2eEzqkWaf" style="vertical-align: bottom; background-color: White"> <td style="padding-left: 10pt; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true">Fair value of liabilities assumed</span></td><td style="padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 1.5pt solid; text-align: left"><span style="-sec-ix-redline: true">$</span></td><td style="border-bottom: Black 1.5pt solid; text-align: right"><span style="-sec-ix-redline: true">592,349</span></td><td style="padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td><span style="-sec-ix-redline: true"> </span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left"><span style="-sec-ix-redline: true">Less: fair value of assets acquired:</span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> <tr id="xdx_402_eus-gaap--BusinessCombinationRecognizedIdentifiableAssetsAcquiredAndLiabilitiesAssumedCashAndEquivalents_iI_zj1GDSKu3we6" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td><span style="-sec-ix-redline: true">Cash</span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true">486,544</span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> <tr id="xdx_40F_eus-gaap--BusinessCombinationRecognizedIdentifiableAssetsAcquiredAndLiabilitiesAssumedEquipment_iI_ziwzMppaOJtl" style="vertical-align: bottom; background-color: White"> <td style="text-align: left"><span style="-sec-ix-redline: true">Other tangible assets</span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true">312,005</span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> <tr id="xdx_409_eus-gaap--BusinessCombinationRecognizedIdentifiableAssetsAcquiredAndLiabilitiesAssumedIntangibles_iI_z8SK7fnqSsqh" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left"><span style="-sec-ix-redline: true">Identifiable intangibles</span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true">2,668,689</span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td><td style="padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 1.5pt solid; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="border-bottom: Black 1.5pt solid; text-align: right"><span style="-sec-ix-redline: true"> </span></td><td style="padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> <tr id="xdx_408_eus-gaap--BusinessCombinationRecognizedIdentifiableAssetsAcquiredAndLiabilitiesAssumedAssets_iTI_zMiI3dm0Xkp3" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-left: 10pt; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true">Fair value of assets acquired</span></td><td style="padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 1.5pt solid; text-align: left"><span style="-sec-ix-redline: true">$</span></td><td style="border-bottom: Black 1.5pt solid; text-align: right"><span style="-sec-ix-redline: true">3,467,238</span></td><td style="padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> <tr style="vertical-align: bottom; background-color: White"> <td><span style="-sec-ix-redline: true"> </span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> <tr id="xdx_40A_eus-gaap--BusinessCombinationRecognizedIdentifiableAssetsAcquiredAndLiabilitiesAssumedCurrentAssetsOther_iI_zxV1NbQOAdmh" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-left: 10pt; text-align: left; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true">Net nonoperating assets</span></td><td style="padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 1.5pt solid; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="border-bottom: Black 1.5pt solid; text-align: right"><span style="-sec-ix-redline: true">39,775</span></td><td style="padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> <tr id="xdx_407_eus-gaap--Goodwill_iTI_zPLCHqhdtIn3" style="vertical-align: bottom; background-color: White"> <td style="padding-left: 10pt; font-weight: bold; padding-bottom: 2.5pt"><span style="-sec-ix-redline: true">Goodwill</span></td><td style="padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 2.5pt double; text-align: left"><span style="-sec-ix-redline: true">$</span></td><td style="border-bottom: Black 2.5pt double; text-align: right"><span style="-sec-ix-redline: true">42,488,730</span></td><td style="padding-bottom: 2.5pt; text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> </table> 45403394 319422 272927 592349 486544 312005 2668689 3467238 39775 42488730 414388 2257257 13000000 Pursuant to the Settlement Agreement, the Company released 498,669 of the 997,338 Heldback Shares to the Measure Sellers with the remaining 498,669 Heldback Shares being released from escrow and cancelled by the Company. 1 21000000 4565000 1 2000000 435000 0.001 3000000 1927407 50000 <p id="xdx_892_eus-gaap--ScheduleOfAllocationOfPlanAssetsTableTextBlock_hus-gaap--BusinessAcquisitionAxis__custom--SenseFlySAMember_z2uo81tarCh9" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0.5in; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The following table summarizes the allocation of the preliminary purchase price as of the senseFly Acquisition Date:</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0.5in; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; display: none; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="display: none; font-family: Times New Roman, Times, Serif; font-size: 10pt"> <span id="xdx_8B1_zMDEhEaef6ci">Schedule of Allocation of the purchase price as of the Micasense Acquistion Date</span></span></span></p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td style="font-weight: bold"><span style="-sec-ix-redline: true">Calculation of Goodwill:</span></td><td><span style="-sec-ix-redline: true"> </span></td> <td colspan="2" id="xdx_490_20211018__us-gaap--BusinessAcquisitionAxis__custom--SenseFlySAMember_zF5kKDfO5WN6"><span style="-sec-ix-redline: true"> </span></td><td><span style="-sec-ix-redline: true"> </span></td></tr> <tr id="xdx_402_ecustom--NetPurchasePriceIncludingDebtPaid_iI_zi7fRmbdJbN9" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 80%"><span style="-sec-ix-redline: true">Net purchase price</span></td><td style="width: 2%"><span style="-sec-ix-redline: true"> </span></td> <td style="width: 1%; text-align: left"><span style="-sec-ix-redline: true">$</span></td><td style="width: 16%; text-align: right"><span style="-sec-ix-redline: true">20,774,526</span></td><td style="width: 1%; text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> <tr style="vertical-align: bottom; background-color: White"> <td><span style="-sec-ix-redline: true"> </span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left"><span style="-sec-ix-redline: true">Plus: fair value of liabilities assumed:</span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> <tr id="xdx_403_eus-gaap--BusinessCombinationContingentConsiderationLiabilityCurrent_iI_zCY7vyFv3hdg" style="vertical-align: bottom; background-color: White"> <td style="text-align: left"><span style="-sec-ix-redline: true">Current liabilities</span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true">3,913,386</span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> <tr id="xdx_407_eus-gaap--DefinedBenefitPlanBenefitObligation_iI_zeLfFJFS5pce" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left"><span style="-sec-ix-redline: true">Defined benefit plan obligation</span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true">278,823</span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> <tr id="xdx_402_ecustom--DebtAssumed_zLZqYGRfiZ03" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true">Debt assumed at close</span></td><td style="padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 1.5pt solid; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="border-bottom: Black 1.5pt solid; text-align: right"><span style="-sec-ix-redline: true">2,461,721</span></td><td style="padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> <tr id="xdx_406_eus-gaap--BusinessCombinationRecognizedIdentifiableAssetsAcquiredAndLiabilitiesAssumedLiabilities_iI_zZHAD4lqEB9" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-left: 10pt; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true">Fair value of liabilities assumed</span></td><td style="padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 1.5pt solid; text-align: left"><span style="-sec-ix-redline: true">$</span></td><td style="border-bottom: Black 1.5pt solid; text-align: right"><span style="-sec-ix-redline: true">6,653,930</span></td><td style="padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> <tr style="vertical-align: bottom; background-color: White"> <td><span style="-sec-ix-redline: true"> </span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left"><span style="-sec-ix-redline: true">Less: fair value of assets acquired:</span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> <tr id="xdx_409_eus-gaap--BusinessCombinationRecognizedIdentifiableAssetsAcquiredAndLiabilitiesAssumedCashAndEquivalents_iI_zinzU9ZYmCO7" style="vertical-align: bottom; background-color: White"> <td><span style="-sec-ix-redline: true">Cash</span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true">$</span></td><td style="text-align: right"><span style="-sec-ix-redline: true">859,044</span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> <tr id="xdx_403_eus-gaap--BusinessCombinationRecognizedIdentifiableAssetsAcquiredAndLiabilitiesAssumedEquipment_iI_zjEnKEgYeeJk" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left"><span style="-sec-ix-redline: true">Other tangible assets</span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true">6,327,641</span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> <tr id="xdx_40C_eus-gaap--BusinessCombinationRecognizedIdentifiableAssetsAcquiredAndLiabilitiesAssumedIntangibles_iI_zoSuvNILkF4" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true">Identifiable intangible assets</span></td><td style="padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 1.5pt solid; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="border-bottom: Black 1.5pt solid; text-align: right"><span style="-sec-ix-redline: true">7,335,570</span></td><td style="padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> <tr id="xdx_40B_eus-gaap--BusinessCombinationRecognizedIdentifiableAssetsAcquiredAndLiabilitiesAssumedAssets_iI_zXKwBoo0IGXa" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-left: 10pt; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true">Fair value of assets acquired</span></td><td style="padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 1.5pt solid; text-align: left"><span style="-sec-ix-redline: true">$</span></td><td style="border-bottom: Black 1.5pt solid; text-align: right"><span style="-sec-ix-redline: true">14,522,255</span></td><td style="padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> <tr style="vertical-align: bottom; background-color: White"> <td><span style="-sec-ix-redline: true"> </span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> <tr id="xdx_40B_eus-gaap--BusinessCombinationRecognizedIdentifiableAssetsAcquiredAndLiabilitiesAssumedCurrentAssetsOther_iI_zAmNAnrFBURk" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-left: 10pt; text-align: left; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true">Net nonoperating assets</span></td><td style="padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 1.5pt solid; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="border-bottom: Black 1.5pt solid; text-align: right"><span style="-sec-ix-redline: true">250,624</span></td><td style="padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> <tr id="xdx_40B_eus-gaap--Goodwill_iTI_zcO7ILBlHRal" style="vertical-align: bottom; background-color: White"> <td style="padding-left: 10pt; font-weight: bold; padding-bottom: 2.5pt"><span style="-sec-ix-redline: true">Goodwill</span></td><td style="padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 2.5pt double; text-align: left"><span style="-sec-ix-redline: true">$</span></td><td style="border-bottom: Black 2.5pt double; text-align: right"><span style="-sec-ix-redline: true">12,655,577</span></td><td style="padding-bottom: 2.5pt; text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> </table> 20774526 3913386 278823 2461721 6653930 859044 6327641 7335570 14522255 250624 12655577 2428858 1819377 the Company, the MicaSense Buyer and Parrot entered into a Waiver Agreement (the “MicaSense Waiver Agreement”) pursuant to which (i) Parrot agreed to waive the obligation of the Company and the MicaSense Buyer to pay Parrot $2,351,202, or the portion of the holdback amount due on March 31, 2023 (the “MicaSense Remaining Holdback Payment”), and (ii) upon the Company’s payment to Parrot of $1,175,601 (the “MicaSense Final Purchase Price Payment,” representing 50% of the MicaSense Remaining Holdback Payment), the Company and MicaSense Buyer will be released from any further obligation or liability for payment of any holdback amount under the MicaSense Purchase Agreement. On July 29, 2022, the Company made the MicaSense Final Purchase Price Payment to Parrot in full satisfaction of its payment obligations under the MicaSense Purchase Agreement, except for $23,798 owed to Justin McCallister. the Company and Parrot entered into a Waiver Agreement (the “senseFly S.A. Waiver Agreement”) pursuant to which (i) Parrot agreed to waive the obligation of the Company to pay Parrot a portion of the holdback amount due on December 31, 2022 and December 31, 2023 (collectively, the “senseFly S.A. Remaining Holdback Payments”); (ii) the parties agreed to waive Parrot’s obligation to reimburse the Company for a portion of the legal costs and expenses incurred by the Company related to the filing of a registration statement in connection with the transactions contemplated by the senseFly S.A. Purchase Agreement; and (iii) upon the Company’s payment to Parrot of $2,257,500 (“the senseFly S.A. Final Purchase Price Payment,” representing 50% of the senseFly S.A. Remaining Holdback Payments less 50% of the registration statement expenses), the Company will be released from any further obligation or liability for payment of any holdback amount under the senseFly S.A. Purchase Agreement. On July 29, 2022, the Company made the senseFly S.A. Final Purchase Price Payment to Parrot in full satisfaction of its payment obligations under the senseFly S.A. Purchase Agreement and the senseFly S.A. Waiver Agreement. the Company, the senseFly Inc. Buyer, and Parrot Inc. entered into a Waiver Agreement (the “senseFly Inc. Waiver Agreement”) pursuant to which (i) Parrot Inc. agreed to waive the obligation of the Company and the senseFly Inc. Buyer to pay Parrot Inc. a portion of the holdback amount due on December 31, 2022 and December 31, 2023 (collectively, the “senseFly Inc. Remaining Holdback Payments”); (ii) upon the Company’s payment to Parrot Inc. of $217,500 (the “senseFly Inc. Final Purchase Price Payment,” representing 50% of the senseFly Inc. Remaining Holdback Payments), the Company and the senseFly Inc. Buyer will be released from any further obligation or liability for any remaining holdback amount under the senseFly Inc. Purchase Agreement. On July 29, 2022, the Company made the senseFly Inc. Final Purchase Price Payment to Parrot Inc. in full satisfaction of its payment obligations under the senseFly Inc. Purchase Agreement and the senseFly Inc. Waiver Agreement. the Company issued an aggregate of 5,319,145 shares of the Company’s common stock to the Sellers of Measure as part of the consideration for the acquisition, of which 997,338 shares were held back (the “Heldback Shares”) to cover post-closing indemnification claims and to satisfy any purchase price adjustments (see also disclosure above). Pursuant to the terms of the Purchase Agreement, the Heldback Shares were scheduled to be released in three tranches, on the 12-month, 18-month and 24-month anniversary of the closing date of the acquisition. The Company made a claim for indemnification against the Heldback Shares. Pursuant to the Settlement Agreement entered on August 22, 2022, the Company released all the Measure shares held in escrow along with any disputes regarding the 997,338 Heldback Shares. As a result, 498,669 of the Heldback Shares were released to the Measure Sellers with the remaining 498,669 Heldback Shares being cancelled by the Company which reduced the issued and outstanding common stock and causing an increase to stockholders’ equity of $2,812,500. 6463101 <p id="xdx_893_ecustom--ScheduleOfLiabilitiesRelatedToBusinessAcquisitionAgreementsTableTextBlock_z0dDg5zImek8" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0.5in; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">As of December 31, 2022 and December 31, 2021, liabilities related to business acquisition agreements consist of the following:</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0.5in; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; display: none; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="display: none; font-family: Times New Roman, Times, Serif; font-size: 10pt"> <span id="xdx_8B7_z3c6wcrSCeFg">Schedule of Liabilities Related to Acquisition Agreements</span></span></span></p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td><span style="-sec-ix-redline: true"> </span></td><td style="font-weight: bold; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td colspan="2" id="xdx_491_20221231_zDTRgt2ibTPa" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"><span style="-sec-ix-redline: true">December 31, 2022</span></td><td style="padding-bottom: 1.5pt; font-weight: bold"><span style="-sec-ix-redline: true"> </span></td><td style="font-weight: bold; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td colspan="2" id="xdx_491_20211231_zPR2RzIXSvyg" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"><span style="-sec-ix-redline: true">December 31, 2021</span></td><td style="padding-bottom: 1.5pt; font-weight: bold"><span style="-sec-ix-redline: true"> </span></td></tr> <tr id="xdx_40E_eus-gaap--BusinessCombinationRecognizedIdentifiableAssetsAcquiredAndLiabilitiesAssumedContingentLiability_iI_hus-gaap--TypeOfArrangementAxis__custom--MicasensePurchaseAgreementMember_zGlWZvNhddA" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 60%; text-align: left"><span style="-sec-ix-redline: true">Holdback related to MicaSense Acquisition Agreement</span></td><td style="width: 2%"><span style="-sec-ix-redline: true"> </span></td> <td style="width: 1%; text-align: left"><span style="-sec-ix-redline: true">$</span></td><td style="width: 16%; text-align: right"><span style="-sec-ix-redline: true">23,798</span></td><td style="width: 1%; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="width: 2%"><span style="-sec-ix-redline: true"> </span></td> <td style="width: 1%; text-align: left"><span style="-sec-ix-redline: true">$</span></td><td style="width: 16%; text-align: right"><span style="-sec-ix-redline: true">4,821,512</span></td><td style="width: 1%; text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> <tr id="xdx_400_eus-gaap--BusinessCombinationRecognizedIdentifiableAssetsAcquiredAndLiabilitiesAssumedContingentLiability_iI_hus-gaap--TypeOfArrangementAxis__custom--MeasurePurchaseAgreementMember_zMKhtiWthKs1" style="vertical-align: bottom; background-color: White"> <td style="text-align: left"><span style="-sec-ix-redline: true">Holdback related to Measure Acquisition</span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true"><span style="-sec-ix-hidden: xdx2ixbrl3151">—</span></span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true">5,625,000</span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> <tr id="xdx_401_eus-gaap--BusinessCombinationRecognizedIdentifiableAssetsAcquiredAndLiabilitiesAssumedContingentLiability_iI_hus-gaap--TypeOfArrangementAxis__custom--SenseFlySAPurchaseAgreementMember_zUq7gO4qVsNa" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true">Holdback related to senseFly Acquisition</span></td><td style="padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 1.5pt solid; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="border-bottom: Black 1.5pt solid; text-align: right"><span style="-sec-ix-redline: true"><span style="-sec-ix-hidden: xdx2ixbrl3154">—</span></span></td><td style="padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 1.5pt solid; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="border-bottom: Black 1.5pt solid; text-align: right"><span style="-sec-ix-redline: true">8,489,989</span></td><td style="padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> <tr id="xdx_401_eus-gaap--BusinessCombinationRecognizedIdentifiableAssetsAcquiredAndLiabilitiesAssumedContingentLiability_iI_zW5Do7U7IKsc" style="vertical-align: bottom; background-color: White"> <td style="text-align: left"><span style="-sec-ix-redline: true">Total acquisition agreement related liabilities</span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true">23,798</span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true">18,936,501</span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> <tr id="xdx_40E_ecustom--BusinessAcquisitionAgreementRelatedLiabilities_zZgDattaNuh4" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true">Less: Current portion business acquisition agreement-related liabilities</span></td><td style="padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 1.5pt solid; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="border-bottom: Black 1.5pt solid; text-align: right"><span style="-sec-ix-redline: true">(23,798</span></td><td style="padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true">)</span></td><td style="padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 1.5pt solid; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="border-bottom: Black 1.5pt solid; text-align: right"><span style="-sec-ix-redline: true">(10,061,501</span></td><td style="padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true">)</span></td></tr> <tr id="xdx_40A_ecustom--LongtermPortionOfBusinessAcquisitionAgreementrelatedLiabilities_iI_z2tYgaqaPDQj" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 2.5pt"><span style="-sec-ix-redline: true">Long term portion of business acquisition agreement-related liabilities</span></td><td style="padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 2.5pt double; text-align: left"><span style="-sec-ix-redline: true">$</span></td><td style="border-bottom: Black 2.5pt double; text-align: right"><span style="-sec-ix-redline: true"><span style="-sec-ix-hidden: xdx2ixbrl3163">—</span></span></td><td style="padding-bottom: 2.5pt; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 2.5pt double; text-align: left"><span style="-sec-ix-redline: true">$</span></td><td style="border-bottom: Black 2.5pt double; text-align: right"><span style="-sec-ix-redline: true">8,875,000</span></td><td style="padding-bottom: 2.5pt; text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> </table> 23798 4821512 5625000 8489989 23798 18936501 -23798 -10061501 8875000 <p id="xdx_89A_eus-gaap--BusinessAcquisitionProFormaInformationTextBlock_z99CmsVjcAw1" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0.5in; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">These pro forma adjustments include:</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0.5in; text-align: justify"><span style="-sec-ix-redline: true"><span style="display: none; font-family: Times New Roman, Times, Serif; font-size: 10pt"> <span id="xdx_8BF_zewoxjYYvVS1">Schedule of Pro-forma Information</span></span></span></p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="display: none; vertical-align: bottom"> <td><span style="-sec-ix-redline: true"> </span></td><td style="font-weight: bold; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td colspan="2" id="xdx_490_20220101__20221231_zvTyYin0Dsyi" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"><span style="-sec-ix-redline: true">2022</span></td><td style="padding-bottom: 1.5pt; font-weight: bold"><span style="-sec-ix-redline: true"> </span></td><td style="font-weight: bold; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td colspan="2" id="xdx_493_20210101__20211231_zEGxOguLZBl3" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"><span style="-sec-ix-redline: true">2021</span></td><td style="padding-bottom: 1.5pt; font-weight: bold"><span style="-sec-ix-redline: true"> </span></td></tr> <tr style="vertical-align: bottom"> <td><span style="-sec-ix-redline: true"> </span></td><td style="padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td colspan="6" style="border-bottom: Black 1.5pt solid; text-align: center"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>For the Year Ended December 31,</b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>(Unaudited)</b></span></span></p></td><td style="padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td></tr> <tr style="vertical-align: bottom"> <td><span style="-sec-ix-redline: true"> </span></td><td style="font-weight: bold; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"><span style="-sec-ix-redline: true">2022</span></td><td style="padding-bottom: 1.5pt; font-weight: bold"><span style="-sec-ix-redline: true"> </span></td><td style="font-weight: bold; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"><span style="-sec-ix-redline: true">2021</span></td><td style="padding-bottom: 1.5pt; font-weight: bold"><span style="-sec-ix-redline: true"> </span></td></tr> <tr id="xdx_40D_eus-gaap--BusinessAcquisitionsProFormaRevenue_z6vrJKbTZg1d" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 60%"><span style="-sec-ix-redline: true">Revenues</span></td><td style="width: 2%"><span style="-sec-ix-redline: true"> </span></td> <td style="width: 1%; text-align: left"><span style="-sec-ix-redline: true">$</span></td><td style="width: 16%; text-align: right"><span style="-sec-ix-redline: true"><span style="-sec-ix-hidden: xdx2ixbrl3168">—</span></span></td><td style="width: 1%; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="width: 2%"><span style="-sec-ix-redline: true"> </span></td> <td style="width: 1%; text-align: left"><span style="-sec-ix-redline: true">$</span></td><td style="width: 16%; text-align: right"><span style="-sec-ix-redline: true">19,564,651</span></td><td style="width: 1%; text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> <tr id="xdx_40B_eus-gaap--BusinessAcquisitionsProFormaNetIncomeLoss_z0AAURj7W8W2" style="vertical-align: bottom; background-color: White"> <td style="text-align: left"><span style="-sec-ix-redline: true">Net loss</span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true">$</span></td><td style="text-align: right"><span style="-sec-ix-redline: true"><span style="-sec-ix-hidden: xdx2ixbrl3171">—</span></span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true">$</span></td><td style="text-align: right"><span style="-sec-ix-redline: true">(36,395,212</span></td><td style="text-align: left"><span style="-sec-ix-redline: true">)</span></td></tr> </table> 19564651 -36395212 <p id="xdx_801_eus-gaap--IntangibleAssetsDisclosureTextBlock_zPyqxmCmYs3g" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Note 6 – <span id="xdx_826_zSgK8ddqLQA7">Intangibles, Net</span></b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p id="xdx_89C_eus-gaap--ScheduleOfFiniteLivedIntangibleAssetsTableTextBlock_z3c6WX381gdh" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0.5in; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">As of December 31, 2022, intangible assets, net, other than goodwill, consist of following:</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0.5in; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> <span id="xdx_8B5_znRC1yRi3BUj" style="display: none">Schedule of Intangible Assets, Net</span></span><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></span></p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td style="border-bottom: Black 1.5pt solid; font-weight: bold"><span style="-sec-ix-redline: true">Name</span></td><td style="font-weight: bold; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"><span style="-sec-ix-redline: true">Estimated Life (Years)</span></td><td style="font-weight: bold; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"><span style="-sec-ix-redline: true">Balance as of December 31, 2021</span></td><td style="padding-bottom: 1.5pt; font-weight: bold"><span style="-sec-ix-redline: true"> </span></td><td style="font-weight: bold; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"><span style="-sec-ix-redline: true">Additions</span></td><td style="padding-bottom: 1.5pt; font-weight: bold"><span style="-sec-ix-redline: true"> </span></td><td style="font-weight: bold; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"><span style="-sec-ix-redline: true">Amortization</span></td><td style="padding-bottom: 1.5pt; font-weight: bold"><span style="-sec-ix-redline: true"> </span></td><td style="font-weight: bold; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"><span style="-sec-ix-redline: true">Balance as of December 31, 2022</span></td><td style="padding-bottom: 1.5pt; font-weight: bold"><span style="-sec-ix-redline: true"> </span></td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 36%; text-align: left"><span style="-sec-ix-redline: true">Intellectual property/technology</span></td><td style="width: 2%"><span style="-sec-ix-redline: true"> </span></td> <td style="width: 10%; text-align: center"><span style="-sec-ix-redline: true"><span id="xdx_90B_eus-gaap--FiniteLivedIntangibleAssetUsefulLife_iI_dtY_c20221231__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--IntellectualPropertyMember__srt--RangeAxis__srt--MinimumMember_zHggGeEG2eF" title="Estimated life">5</span>-<span id="xdx_901_eus-gaap--FiniteLivedIntangibleAssetUsefulLife_iI_dtY_c20221231__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--IntellectualPropertyMember__srt--RangeAxis__srt--MaximumMember_zJmOKsPMOcoh" title="Estimated life">7</span></span></td><td style="width: 2%"><span style="-sec-ix-redline: true"> </span></td> <td style="width: 1%; text-align: left"><span style="-sec-ix-redline: true">$</span></td><td style="width: 9%; text-align: right"><span style="-sec-ix-redline: true">     <span id="xdx_905_eus-gaap--FiniteLivedIntangibleAssetsNet_iS_c20220101__20221231__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--IntellectualPropertyMember_zS6XXMLGF178" title="Beginning balance">5,427,294</span></span></td><td style="width: 1%; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="width: 2%"><span style="-sec-ix-redline: true"> </span></td> <td style="width: 1%; text-align: left"><span style="-sec-ix-redline: true">$</span></td><td id="xdx_985_eus-gaap--FiniteLivedIntangibleAssetsPeriodIncreaseDecrease_c20220101__20221231__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--IntellectualPropertyMember_zUxQiVBqSBQc" style="width: 9%; text-align: right" title="Additions"><span style="-sec-ix-redline: true"><span style="-sec-ix-hidden: xdx2ixbrl3184">—</span></span></td><td style="width: 1%; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="width: 2%"><span style="-sec-ix-redline: true"> </span></td> <td style="width: 1%; text-align: left"><span style="-sec-ix-redline: true">$</span></td><td id="xdx_983_eus-gaap--AmortizationOfIntangibleAssets_iN_di_c20220101__20221231__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--IntellectualPropertyMember_zQgaGV6Cup2i" style="width: 9%; text-align: right" title="Amortization"><span style="-sec-ix-redline: true">(953,433</span></td><td style="width: 1%; text-align: left"><span style="-sec-ix-redline: true">)</span></td><td style="width: 2%"><span style="-sec-ix-redline: true"> </span></td> <td style="width: 1%; text-align: left"><span style="-sec-ix-redline: true">$</span></td><td style="width: 9%; text-align: right"><span style="-sec-ix-redline: true">     <span id="xdx_907_eus-gaap--FiniteLivedIntangibleAssetsNet_iE_c20220101__20221231__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--IntellectualPropertyMember_zXfEfupfQWt7" title="Ending balance">4,473,861</span></span></td><td style="width: 1%; text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left"><span style="-sec-ix-redline: true">Customer base</span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: center"><span style="-sec-ix-redline: true"><span id="xdx_900_eus-gaap--FiniteLivedIntangibleAssetUsefulLife_iI_dtY_c20221231__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--CustomerRelatedIntangibleAssetsMember__srt--RangeAxis__srt--MinimumMember_zMlFTje1GKx5" title="Estimated life">3</span>-<span id="xdx_909_eus-gaap--FiniteLivedIntangibleAssetUsefulLife_iI_dtY_c20221231__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--CustomerRelatedIntangibleAssetsMember__srt--RangeAxis__srt--MaximumMember_zRoKAJZOD1b5" title="Estimated life">10</span></span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td id="xdx_980_eus-gaap--FiniteLivedIntangibleAssetsNet_iS_c20220101__20221231__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--CustomerRelatedIntangibleAssetsMember_z0UXbygH5lul" style="text-align: right" title="Beginning balance"><span style="-sec-ix-redline: true">4,047,319</span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td id="xdx_982_eus-gaap--FiniteLivedIntangibleAssetsPeriodIncreaseDecrease_c20220101__20221231__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--CustomerRelatedIntangibleAssetsMember_zzEvw8ImdOpc" style="text-align: right" title="Additions"><span style="-sec-ix-redline: true"><span style="-sec-ix-hidden: xdx2ixbrl3196">—</span></span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td id="xdx_987_eus-gaap--AmortizationOfIntangibleAssets_iN_di_c20220101__20221231__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--CustomerRelatedIntangibleAssetsMember_z8xZjK6aEDNh" style="text-align: right" title="Amortization"><span style="-sec-ix-redline: true">(1,161,662</span></td><td style="text-align: left"><span style="-sec-ix-redline: true">)</span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td id="xdx_982_eus-gaap--FiniteLivedIntangibleAssetsNet_iE_c20220101__20221231__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--CustomerRelatedIntangibleAssetsMember_zA4X7Ce0u9E6" style="text-align: right" title="Ending balance"><span style="-sec-ix-redline: true">2,885,657</span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left"><span style="-sec-ix-redline: true">Tradenames and trademarks</span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: center"><span style="-sec-ix-redline: true"><span id="xdx_907_eus-gaap--FiniteLivedIntangibleAssetUsefulLife_iI_dtY_c20221231__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--TrademarksAndTradeNamesMember__srt--RangeAxis__srt--MinimumMember_zV9swP5ZTO2a" title="Estimated life">5</span>-<span id="xdx_90C_eus-gaap--FiniteLivedIntangibleAssetUsefulLife_iI_dtY_c20221231__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--TrademarksAndTradeNamesMember__srt--RangeAxis__srt--MaximumMember_zpsbhk6N8EH6" title="Estimated life">10</span></span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td id="xdx_98B_eus-gaap--FiniteLivedIntangibleAssetsNet_iS_c20220101__20221231__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--TrademarksAndTradeNamesMember_ztaaXjeasdsi" style="text-align: right" title="Beginning balance"><span style="-sec-ix-redline: true">1,985,236</span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td id="xdx_98C_eus-gaap--FiniteLivedIntangibleAssetsPeriodIncreaseDecrease_c20220101__20221231__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--TrademarksAndTradeNamesMember_zLFMPUqHuuTa" style="text-align: right" title="Additions"><span style="-sec-ix-redline: true"><span style="-sec-ix-hidden: xdx2ixbrl3208">—</span></span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td id="xdx_98C_eus-gaap--AmortizationOfIntangibleAssets_iN_di_c20220101__20221231__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--TrademarksAndTradeNamesMember_zcNI9IWF6g17" style="text-align: right" title="Amortization"><span style="-sec-ix-redline: true">(227,345</span></td><td style="text-align: left"><span style="-sec-ix-redline: true">)</span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td id="xdx_980_eus-gaap--FiniteLivedIntangibleAssetsNet_iE_c20220101__20221231__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--TrademarksAndTradeNamesMember_zV7782QjIvxb" style="text-align: right" title="Ending balance"><span style="-sec-ix-redline: true">1,757,891</span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left"><span style="-sec-ix-redline: true">Non-compete agreement</span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: center"><span style="-sec-ix-redline: true"><span id="xdx_906_eus-gaap--FiniteLivedIntangibleAssetUsefulLife_iI_dtY_c20221231__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--NoncompeteAgreementsMember__srt--RangeAxis__srt--MinimumMember_zrcwL8U74eCk" title="Estimated life">2</span>-<span id="xdx_901_eus-gaap--FiniteLivedIntangibleAssetUsefulLife_iI_dtY_c20221231__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--NoncompeteAgreementsMember__srt--RangeAxis__srt--MaximumMember_zhYdSYs3I6c2" title="Estimated life">4</span></span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td id="xdx_980_eus-gaap--FiniteLivedIntangibleAssetsNet_iS_c20220101__20221231__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--NoncompeteAgreementsMember_zm5Bb3II0Kf6" style="text-align: right" title="Beginning balance"><span style="-sec-ix-redline: true">831,501</span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td id="xdx_98D_eus-gaap--FiniteLivedIntangibleAssetsPeriodIncreaseDecrease_c20220101__20221231__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--NoncompeteAgreementsMember_zKOdxo8Yq2Jj" style="text-align: right" title="Additions"><span style="-sec-ix-redline: true"><span style="-sec-ix-hidden: xdx2ixbrl3220">—</span></span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td id="xdx_98D_eus-gaap--AmortizationOfIntangibleAssets_iN_di_c20220101__20221231__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--NoncompeteAgreementsMember_zhbac7QhcU5a" style="text-align: right" title="Amortization"><span style="-sec-ix-redline: true">(495,568</span></td><td style="text-align: left"><span style="-sec-ix-redline: true">)</span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td id="xdx_984_eus-gaap--FiniteLivedIntangibleAssetsNet_iE_c20220101__20221231__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--NoncompeteAgreementsMember_z4REp2uatD6a" style="text-align: right" title="Ending balance"><span style="-sec-ix-redline: true">335,933</span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left"><span style="-sec-ix-redline: true">Platform development costs</span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: center"><span style="-sec-ix-redline: true"><span id="xdx_906_eus-gaap--FiniteLivedIntangibleAssetUsefulLife_iI_dtY_c20221231__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__custom--PlatformDevelopmentCostsMember_zAHeEmdRipQe" title="Estimated life">3</span></span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td id="xdx_98A_eus-gaap--FiniteLivedIntangibleAssetsNet_iS_c20220101__20221231__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__custom--PlatformDevelopmentCostsMember_z6xVs3egMG0k" style="text-align: right" title="Beginning balance"><span style="-sec-ix-redline: true">995,880</span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td id="xdx_981_eus-gaap--FiniteLivedIntangibleAssetsPeriodIncreaseDecrease_c20220101__20221231__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__custom--PlatformDevelopmentCostsMember_zV40IGkRgma9" style="text-align: right" title="Additions"><span style="-sec-ix-redline: true">817,029</span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td id="xdx_98E_eus-gaap--AmortizationOfIntangibleAssets_iN_di_c20220101__20221231__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__custom--PlatformDevelopmentCostsMember_za9HBoH89Bji" style="text-align: right" title="Amortization"><span style="-sec-ix-redline: true">(480,393</span></td><td style="text-align: left"><span style="-sec-ix-redline: true">)</span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td id="xdx_98B_eus-gaap--FiniteLivedIntangibleAssetsNet_iE_c20220101__20221231__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__custom--PlatformDevelopmentCostsMember_zJ5NxOBFfYK2" style="text-align: right" title="Ending balance"><span style="-sec-ix-redline: true">1,332,516</span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true">Internal use software costs</span></td><td style="padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: center; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span id="xdx_905_eus-gaap--FiniteLivedIntangibleAssetUsefulLife_iI_dtY_c20221231__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--ComputerSoftwareIntangibleAssetMember_z0hsN6eOFgt8" title="Estimated life">3</span></span></td><td style="padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 1.5pt solid; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="border-bottom: Black 1.5pt solid; text-align: right"><span style="-sec-ix-redline: true"><span id="xdx_903_eus-gaap--FiniteLivedIntangibleAssetsNet_iS_c20220101__20221231__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--ComputerSoftwareIntangibleAssetMember_zoZTDqzFpp44" title="Beginning balance">278,264</span></span></td><td style="padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 1.5pt solid; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td id="xdx_98C_eus-gaap--FiniteLivedIntangibleAssetsPeriodIncreaseDecrease_c20220101__20221231__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--ComputerSoftwareIntangibleAssetMember_zRFN7eHdWCN8" style="border-bottom: Black 1.5pt solid; text-align: right" title="Additions"><span style="-sec-ix-redline: true">618,061</span></td><td style="padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 1.5pt solid; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td id="xdx_985_eus-gaap--AmortizationOfIntangibleAssets_iN_di_c20220101__20221231__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--ComputerSoftwareIntangibleAssetMember_zm2TN0tbHhnf" style="border-bottom: Black 1.5pt solid; text-align: right" title="Amortization"><span style="-sec-ix-redline: true">(174,530</span></td><td style="padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true">)</span></td><td style="padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 1.5pt solid; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="border-bottom: Black 1.5pt solid; text-align: right"><span style="-sec-ix-redline: true"><span id="xdx_903_eus-gaap--FiniteLivedIntangibleAssetsNet_iE_c20220101__20221231__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--ComputerSoftwareIntangibleAssetMember_zDL1W2bwrtBh" title="Ending balance">721,795</span></span></td><td style="padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 2.5pt"><span style="-sec-ix-redline: true">Total intangible assets, net</span></td><td style="padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: center; padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"> </span></td><td style="padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 2.5pt double; text-align: left"><span style="-sec-ix-redline: true">$</span></td><td id="xdx_980_eus-gaap--FiniteLivedIntangibleAssetsNet_iS_c20220101__20221231_ziopP6Vpb8u2" style="border-bottom: Black 2.5pt double; text-align: right" title="Beginning balance"><span style="-sec-ix-redline: true">13,565,494</span></td><td style="padding-bottom: 2.5pt; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 2.5pt double; text-align: left"><span style="-sec-ix-redline: true">$</span></td><td id="xdx_987_eus-gaap--FiniteLivedIntangibleAssetsPeriodIncreaseDecrease_c20220101__20221231_zlq2vPAI28Hc" style="border-bottom: Black 2.5pt double; text-align: right" title="Additions"><span style="-sec-ix-redline: true">1,435,090</span></td><td style="padding-bottom: 2.5pt; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 2.5pt double; text-align: left"><span style="-sec-ix-redline: true">$</span></td><td id="xdx_981_eus-gaap--AmortizationOfIntangibleAssets_iN_di_c20220101__20221231_zflSLxDOjb42" style="border-bottom: Black 2.5pt double; text-align: right" title="Amortization"><span style="-sec-ix-redline: true">(3,492,931</span></td><td style="padding-bottom: 2.5pt; text-align: left"><span style="-sec-ix-redline: true">)</span></td><td style="padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 2.5pt double; text-align: left"><span style="-sec-ix-redline: true">$</span></td><td id="xdx_986_eus-gaap--FiniteLivedIntangibleAssetsNet_iE_c20220101__20221231_zG5S1Gk5Ge47" style="border-bottom: Black 2.5pt double; text-align: right" title="Ending balance"><span style="-sec-ix-redline: true">11,507,653</span></td><td style="padding-bottom: 2.5pt; text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> </table> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">As of December 31, 2021, intangible assets, net other than goodwill, consist of the following:</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td style="border-bottom: Black 1.5pt solid; font-weight: bold"><span style="-sec-ix-redline: true">Name</span></td><td style="font-weight: bold; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"><span style="-sec-ix-redline: true">Estimated Life (Years)</span></td><td style="font-weight: bold; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"><span style="-sec-ix-redline: true">Balance as of December 31, 2020</span></td><td style="padding-bottom: 1.5pt; font-weight: bold"><span style="-sec-ix-redline: true"> </span></td><td style="font-weight: bold; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"><span style="-sec-ix-redline: true">Additions</span></td><td style="padding-bottom: 1.5pt; font-weight: bold"><span style="-sec-ix-redline: true"> </span></td><td style="font-weight: bold; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"><span style="-sec-ix-redline: true">Amortization</span></td><td style="padding-bottom: 1.5pt; font-weight: bold"><span style="-sec-ix-redline: true"> </span></td><td style="font-weight: bold; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"><span style="-sec-ix-redline: true">Balance as of December 31, 2021</span></td><td style="padding-bottom: 1.5pt; font-weight: bold"><span style="-sec-ix-redline: true"> </span></td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 36%; text-align: left"><span style="-sec-ix-redline: true">Intellectual property/technology</span></td><td style="width: 2%"><span style="-sec-ix-redline: true"> </span></td> <td style="width: 10%; text-align: center"><span style="-sec-ix-redline: true"><span id="xdx_90D_eus-gaap--FiniteLivedIntangibleAssetUsefulLife_iI_dtY_c20211231__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--IntellectualPropertyMember__srt--RangeAxis__srt--MinimumMember_zD6oHm3A3n5l" title="Estimated life">5</span>-<span id="xdx_90C_eus-gaap--FiniteLivedIntangibleAssetUsefulLife_iI_dtY_c20211231__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--IntellectualPropertyMember__srt--RangeAxis__srt--MaximumMember_zicTxsNaNf74" title="Estimated life">7</span></span></td><td style="width: 2%"><span style="-sec-ix-redline: true"> </span></td> <td style="width: 1%; text-align: left"><span style="-sec-ix-redline: true">$</span></td><td style="width: 9%; text-align: right"><span style="-sec-ix-redline: true">        <span id="xdx_90D_eus-gaap--FiniteLivedIntangibleAssetsNet_iS_c20210101__20211231__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--IntellectualPropertyMember_zDAzr5P8MWk1" title="Beginning balance">231,146</span></span></td><td style="width: 1%; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="width: 2%"><span style="-sec-ix-redline: true"> </span></td> <td style="width: 1%; text-align: left"><span style="-sec-ix-redline: true">$</span></td><td id="xdx_985_eus-gaap--FiniteLivedIntangibleAssetsPeriodIncreaseDecrease_c20210101__20211231__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--IntellectualPropertyMember_z3y1D5WuNZng" style="width: 9%; text-align: right" title="Additions"><span style="-sec-ix-redline: true">5,671,026</span></td><td style="width: 1%; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="width: 2%"><span style="-sec-ix-redline: true"> </span></td> <td style="width: 1%; text-align: left"><span style="-sec-ix-redline: true">$</span></td><td id="xdx_98C_eus-gaap--AmortizationOfIntangibleAssets_iN_di_c20210101__20211231__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--IntellectualPropertyMember_zp4PQcqVV5Ui" style="width: 9%; text-align: right" title="Amortization"><span style="-sec-ix-redline: true">(474,878</span></td><td style="width: 1%; text-align: left"><span style="-sec-ix-redline: true">)</span></td><td style="width: 2%"><span style="-sec-ix-redline: true"> </span></td> <td style="width: 1%; text-align: left"><span style="-sec-ix-redline: true">$</span></td><td style="width: 9%; text-align: right"><span style="-sec-ix-redline: true">     <span id="xdx_90F_eus-gaap--FiniteLivedIntangibleAssetsNet_iE_c20210101__20211231__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--IntellectualPropertyMember_zkZfMiug7rv5" title="Ending balance">5,427,294</span></span></td><td style="width: 1%; text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left"><span style="-sec-ix-redline: true">Customer base</span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: center"><span style="-sec-ix-redline: true"><span id="xdx_90A_eus-gaap--FiniteLivedIntangibleAssetUsefulLife_iI_dtY_c20211231__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--CustomerRelatedIntangibleAssetsMember__srt--RangeAxis__srt--MinimumMember_zM9Ror8wmbpa" title="Estimated life">3</span>-<span id="xdx_901_eus-gaap--FiniteLivedIntangibleAssetUsefulLife_iI_dtY_c20211231__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--CustomerRelatedIntangibleAssetsMember__srt--RangeAxis__srt--MaximumMember_zzDUELwhIiU5" title="Estimated life">10</span></span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td id="xdx_984_eus-gaap--FiniteLivedIntangibleAssetsNet_iS_c20210101__20211231__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--CustomerRelatedIntangibleAssetsMember_z5hjphBCxjHj" style="text-align: right" title="Beginning balance"><span style="-sec-ix-redline: true">38,400</span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td id="xdx_983_eus-gaap--FiniteLivedIntangibleAssetsPeriodIncreaseDecrease_c20210101__20211231__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--CustomerRelatedIntangibleAssetsMember_zNnhzon7Kixe" style="text-align: right" title="Additions"><span style="-sec-ix-redline: true">4,411,499</span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td id="xdx_989_eus-gaap--AmortizationOfIntangibleAssets_iN_di_c20210101__20211231__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--CustomerRelatedIntangibleAssetsMember_zL0pi8DqLZA4" style="text-align: right" title="Amortization"><span style="-sec-ix-redline: true">(402,580</span></td><td style="text-align: left"><span style="-sec-ix-redline: true">)</span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td id="xdx_98D_eus-gaap--FiniteLivedIntangibleAssetsNet_iE_c20210101__20211231__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--CustomerRelatedIntangibleAssetsMember_zAZYvGcGb5s8" style="text-align: right" title="Ending balance"><span style="-sec-ix-redline: true">4,047,319</span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left"><span style="-sec-ix-redline: true">Tradenames and trademarks</span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: center"><span style="-sec-ix-redline: true"><span id="xdx_90E_eus-gaap--FiniteLivedIntangibleAssetUsefulLife_iI_dtY_c20211231__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--TrademarksAndTradeNamesMember__srt--RangeAxis__srt--MinimumMember_zUSPQsJwBcS2" title="Estimated life">5</span>-<span id="xdx_909_eus-gaap--FiniteLivedIntangibleAssetUsefulLife_iI_dtY_c20211231__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--TrademarksAndTradeNamesMember__srt--RangeAxis__srt--MaximumMember_zxUfstea66g5" title="Estimated life">10</span></span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td id="xdx_989_eus-gaap--FiniteLivedIntangibleAssetsNet_iS_c20210101__20211231__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--TrademarksAndTradeNamesMember_zIW77LWVLt8f" style="text-align: right" title="Beginning balance"><span style="-sec-ix-redline: true">31,040</span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td id="xdx_985_eus-gaap--FiniteLivedIntangibleAssetsPeriodIncreaseDecrease_c20210101__20211231__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--TrademarksAndTradeNamesMember_zPh8ZyV55ODf" style="text-align: right" title="Additions"><span style="-sec-ix-redline: true">2,082,338</span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td id="xdx_98C_eus-gaap--AmortizationOfIntangibleAssets_iN_di_c20210101__20211231__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--TrademarksAndTradeNamesMember_zilmFtoFNIPc" style="text-align: right" title="Amortization"><span style="-sec-ix-redline: true">(128,142</span></td><td style="text-align: left"><span style="-sec-ix-redline: true">)</span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td id="xdx_984_eus-gaap--FiniteLivedIntangibleAssetsNet_iE_c20210101__20211231__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--TrademarksAndTradeNamesMember_zRzBmFDqwItf" style="text-align: right" title="Ending balance"><span style="-sec-ix-redline: true">1,985,236</span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left"><span style="-sec-ix-redline: true">Non-compete agreement</span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: center"><span style="-sec-ix-redline: true"><span id="xdx_900_eus-gaap--FiniteLivedIntangibleAssetUsefulLife_iI_dtY_c20211231__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--NoncompeteAgreementsMember__srt--RangeAxis__srt--MinimumMember_zZy0ep5phfFg" title="Estimated life">2</span>-<span id="xdx_903_eus-gaap--FiniteLivedIntangibleAssetUsefulLife_iI_dtY_c20211231__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--NoncompeteAgreementsMember__srt--RangeAxis__srt--MaximumMember_z4uJHPcy08x" title="Estimated life">4</span></span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td id="xdx_981_eus-gaap--FiniteLivedIntangibleAssetsNet_iS_c20210101__20211231__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--NoncompeteAgreementsMember_zjaAyIZB6mM8" style="text-align: right" title="Beginning balance"><span style="-sec-ix-redline: true">67,042</span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td id="xdx_982_eus-gaap--FiniteLivedIntangibleAssetsPeriodIncreaseDecrease_c20210101__20211231__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--NoncompeteAgreementsMember_zUN2P3ndwD4g" style="text-align: right" title="Additions"><span style="-sec-ix-redline: true">901,198</span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td id="xdx_984_eus-gaap--AmortizationOfIntangibleAssets_iN_di_c20210101__20211231__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--NoncompeteAgreementsMember_zMbQhbleb7K7" style="text-align: right" title="Amortization"><span style="-sec-ix-redline: true">(136,739</span></td><td style="text-align: left"><span style="-sec-ix-redline: true">)</span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td id="xdx_981_eus-gaap--FiniteLivedIntangibleAssetsNet_iE_c20210101__20211231__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--NoncompeteAgreementsMember_zRe8t0Qpxl08" style="text-align: right" title="Ending balance"><span style="-sec-ix-redline: true">831,501</span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left"><span style="-sec-ix-redline: true">Platform development costs</span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: center"><span style="-sec-ix-redline: true"><span id="xdx_907_eus-gaap--FiniteLivedIntangibleAssetUsefulLife_iI_dtY_c20211231__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__custom--PlatformDevelopmentCostsMember_zidiXRnAaYT9" title="Estimated life">3</span></span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td id="xdx_982_eus-gaap--FiniteLivedIntangibleAssetsNet_iS_c20210101__20211231__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__custom--PlatformDevelopmentCostsMember_zyijBBLIsEGh" style="text-align: right" title="Beginning balance"><span style="-sec-ix-redline: true">72,899</span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td id="xdx_980_eus-gaap--FiniteLivedIntangibleAssetsPeriodIncreaseDecrease_c20210101__20211231__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__custom--PlatformDevelopmentCostsMember_zSHtHNb6e2B" style="text-align: right" title="Additions"><span style="-sec-ix-redline: true">1,097,808</span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td id="xdx_98E_eus-gaap--AmortizationOfIntangibleAssets_iN_di_c20210101__20211231__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__custom--PlatformDevelopmentCostsMember_zGKAu9ZylEM3" style="text-align: right" title="Amortization"><span style="-sec-ix-redline: true">(174,827</span></td><td style="text-align: left"><span style="-sec-ix-redline: true">)</span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td id="xdx_98E_eus-gaap--FiniteLivedIntangibleAssetsNet_iE_c20210101__20211231__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__custom--PlatformDevelopmentCostsMember_zqzeIQLuXB75" style="text-align: right" title="Ending balance"><span style="-sec-ix-redline: true">995,880</span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true">Internal use software costs</span></td><td style="padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: center; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span id="xdx_90B_eus-gaap--FiniteLivedIntangibleAssetUsefulLife_iI_dtY_c20211231__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--ComputerSoftwareIntangibleAssetMember_zP8ch4rtA58b" title="Estimated life">3</span></span></td><td style="padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 1.5pt solid; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td id="xdx_98A_eus-gaap--FiniteLivedIntangibleAssetsNet_iS_c20210101__20211231__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--ComputerSoftwareIntangibleAssetMember_zExlx1TQvQRb" style="border-bottom: Black 1.5pt solid; text-align: right" title="Beginning balance"><span style="-sec-ix-redline: true"><span style="-sec-ix-hidden: xdx2ixbrl3314">—</span></span></td><td style="padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 1.5pt solid; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td id="xdx_98E_eus-gaap--FiniteLivedIntangibleAssetsPeriodIncreaseDecrease_c20210101__20211231__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--ComputerSoftwareIntangibleAssetMember_z8mqHD2T4Xxf" style="border-bottom: Black 1.5pt solid; text-align: right" title="Additions"><span style="-sec-ix-redline: true">278,264</span></td><td style="padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 1.5pt solid; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td id="xdx_98C_eus-gaap--AmortizationOfIntangibleAssets_iN_di_c20210101__20211231__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--ComputerSoftwareIntangibleAssetMember_zgiRCcjYdln9" style="border-bottom: Black 1.5pt solid; text-align: right" title="Amortization"><span style="-sec-ix-redline: true"><span style="-sec-ix-hidden: xdx2ixbrl3318">—</span></span></td><td style="padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 1.5pt solid; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td id="xdx_989_eus-gaap--FiniteLivedIntangibleAssetsNet_iE_c20210101__20211231__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--ComputerSoftwareIntangibleAssetMember_z44pGzVjxod9" style="border-bottom: Black 1.5pt solid; text-align: right" title="Ending balance"><span style="-sec-ix-redline: true">278,264</span></td><td style="padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 2.5pt"><span style="-sec-ix-redline: true">Total intangible assets, net</span></td><td style="padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"> </span></td><td style="padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 2.5pt double; text-align: left"><span style="-sec-ix-redline: true">$</span></td><td id="xdx_986_eus-gaap--FiniteLivedIntangibleAssetsNet_iS_c20210101__20211231_zDsewtshTSYg" style="border-bottom: Black 2.5pt double; text-align: right" title="Beginning balance"><span style="-sec-ix-redline: true">440,527</span></td><td style="padding-bottom: 2.5pt; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 2.5pt double; text-align: left"><span style="-sec-ix-redline: true">$</span></td><td id="xdx_98D_eus-gaap--FiniteLivedIntangibleAssetsPeriodIncreaseDecrease_c20210101__20211231_zmnRkMyyzEw1" style="border-bottom: Black 2.5pt double; text-align: right" title="Additions"><span style="-sec-ix-redline: true">14,442,133</span></td><td style="padding-bottom: 2.5pt; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 2.5pt double; text-align: left"><span style="-sec-ix-redline: true">$</span></td><td id="xdx_988_eus-gaap--AmortizationOfIntangibleAssets_iN_di_c20210101__20211231_zbSQCI5ayw05" style="border-bottom: Black 2.5pt double; text-align: right" title="Amortization"><span style="-sec-ix-redline: true">(1,317,166</span></td><td style="padding-bottom: 2.5pt; text-align: left"><span style="-sec-ix-redline: true">)</span></td><td style="padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 2.5pt double; text-align: left"><span style="-sec-ix-redline: true">$</span></td><td style="border-bottom: Black 2.5pt double; text-align: right"><span style="-sec-ix-redline: true"><span id="xdx_907_eus-gaap--FiniteLivedIntangibleAssetsNet_iE_c20210101__20211231_zA3fSP6MY1of" title="Ending balance">13,565,494</span></span></td><td style="padding-bottom: 2.5pt; text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> </table> <p id="xdx_8A6_zSV57ihg7Pf1" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0.5in; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The weighted average remaining amortization period in years is <span id="xdx_90E_eus-gaap--FiniteLivedIntangibleAssetsRemainingAmortizationPeriod1_iI_dtY_c20221231_zciDOKOtntE2" title="Weighted average remaining amortization period">4.5</span> years. Amortization expense for the years ended December 31, 2022 and 2021 was $<span id="xdx_909_eus-gaap--AdjustmentForAmortization_c20220101__20221231_zjnZZOriFSb6" title="Amortization expense">3,492,931</span> and $<span id="xdx_906_eus-gaap--AdjustmentForAmortization_c20210101__20211231_zcPOT7FTnBW2" title="Amortization expense">1,317,166</span>, respectively. For the year ended December 31, 2022, amortization expense of $<span id="xdx_902_eus-gaap--AdjustmentForAmortization_c20220101__20221231__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__custom--PlatformDevelopmentCostsMember_zisweAQ2QP84" title="Amortization expense">480,393</span> related to the platform development costs was included as part of the cost of goods sold.</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>AGEAGLE AERIAL SYSTEMS INC. AND SUBSIDIARIES </b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>NOTES TO CONSOLIDATED FINANCIAL STATEMENTS</b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>FOR THE YEARS ENDED DECEMBER 31, 2022 AND 2021</b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Note 6 – Intangibles, Net-Continued</b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p id="xdx_89C_eus-gaap--ScheduleofFiniteLivedIntangibleAssetsFutureAmortizationExpenseTableTextBlock_z4u595QtQ93j" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0.5in; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> For the following years ending, the future amortization expenses consist of the following:</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0.5in; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; display: none; margin: 0pt; text-indent: 0.5in; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><span id="xdx_8B8_zTzydzi9RKic" style="display: none">Schedule of Intangible Assets Future Amortization Expenses</span></span></span></span></span></p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="display: none; vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_48C_eus-gaap--FiniteLivedIntangibleAssetsAmortizationExpenseNextTwelveMonths_iI_z0m7a4hVhRKa" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Year One</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_48F_eus-gaap--FiniteLivedIntangibleAssetsAmortizationExpenseYearTwo_iI_zT42YG06er88" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Year Two</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_489_eus-gaap--FiniteLivedIntangibleAssetsAmortizationExpenseYearThree_iI_zwU47DvB3Pe3" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Year Three</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_481_eus-gaap--FiniteLivedIntangibleAssetsAmortizationExpenseYearFour_iI_zaycBwHmlLZ7" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Year Four</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_48E_eus-gaap--FiniteLivedIntangibleAssetsAmortizationExpenseYearFive_iI_zJtzKplBmfWh" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Year Five</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_48B_eus-gaap--FiniteLivedIntangibleAssetsAmortizationExpenseAfterYearFive_iI_z9YIIWdWgxRc" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Thereafter</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_481_eus-gaap--FiniteLivedIntangibleAssetsNet_iI_zWn2DOwmJ8wd" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Total</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td><span style="-sec-ix-redline: true"> </span></td><td style="font-weight: bold; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td colspan="26" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"><span style="-sec-ix-redline: true">For the Years Ending December 31,</span></td><td style="padding-bottom: 1.5pt; font-weight: bold"><span style="-sec-ix-redline: true"> </span></td></tr> <tr style="vertical-align: bottom"> <td><span style="-sec-ix-redline: true"> </span></td><td style="font-weight: bold; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"><span style="-sec-ix-redline: true">2023</span></td><td style="padding-bottom: 1.5pt; font-weight: bold"><span style="-sec-ix-redline: true"> </span></td><td style="font-weight: bold; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"><span style="-sec-ix-redline: true">2024</span></td><td style="padding-bottom: 1.5pt; font-weight: bold"><span style="-sec-ix-redline: true"> </span></td><td style="font-weight: bold; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"><span style="-sec-ix-redline: true">2025</span></td><td style="padding-bottom: 1.5pt; font-weight: bold"><span style="-sec-ix-redline: true"> </span></td><td style="font-weight: bold; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"><span style="-sec-ix-redline: true">2026</span></td><td style="padding-bottom: 1.5pt; font-weight: bold"><span style="-sec-ix-redline: true"> </span></td><td style="font-weight: bold; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"><span style="-sec-ix-redline: true">2027</span></td><td style="padding-bottom: 1.5pt; font-weight: bold"><span style="-sec-ix-redline: true"> </span></td><td style="font-weight: bold; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"><span style="-sec-ix-redline: true">Thereafter</span></td><td style="padding-bottom: 1.5pt; font-weight: bold"><span style="-sec-ix-redline: true"> </span></td><td style="font-weight: bold; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"><span style="-sec-ix-redline: true">Total</span></td><td style="padding-bottom: 1.5pt; font-weight: bold"><span style="-sec-ix-redline: true"> </span></td></tr> <tr id="xdx_412_20221231__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--IntellectualPropertyMember_zr7bBDdKlk9c" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 37%; text-align: left"><span style="-sec-ix-redline: true">Intellectual property/ technology</span></td><td style="width: 2%"><span style="-sec-ix-redline: true"> </span></td> <td style="width: 1%; text-align: left"><span style="-sec-ix-redline: true">$</span></td><td style="width: 5%; text-align: right"><span style="-sec-ix-redline: true">808,968</span></td><td style="width: 1%; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="width: 2%"><span style="-sec-ix-redline: true"> </span></td> <td style="width: 1%; text-align: left"><span style="-sec-ix-redline: true">$</span></td><td style="width: 5%; text-align: right"><span style="-sec-ix-redline: true">808,968</span></td><td style="width: 1%; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="width: 2%"><span style="-sec-ix-redline: true"> </span></td> <td style="width: 1%; text-align: left"><span style="-sec-ix-redline: true">$</span></td><td style="width: 5%; text-align: right"><span style="-sec-ix-redline: true">808,968</span></td><td style="width: 1%; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="width: 2%"><span style="-sec-ix-redline: true"> </span></td> <td style="width: 1%; text-align: left"><span style="-sec-ix-redline: true">$</span></td><td style="width: 5%; text-align: right"><span style="-sec-ix-redline: true">808,968</span></td><td style="width: 1%; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="width: 2%"><span style="-sec-ix-redline: true"> </span></td> <td style="width: 1%; text-align: left"><span style="-sec-ix-redline: true">$</span></td><td style="width: 5%; text-align: right"><span style="-sec-ix-redline: true">808,968</span></td><td style="width: 1%; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="width: 2%"><span style="-sec-ix-redline: true"> </span></td> <td style="width: 1%; text-align: left"><span style="-sec-ix-redline: true">$</span></td><td style="width: 5%; text-align: right"><span style="-sec-ix-redline: true">429,021</span></td><td style="width: 1%; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="width: 2%"><span style="-sec-ix-redline: true"> </span></td> <td style="width: 1%; text-align: left"><span style="-sec-ix-redline: true">$</span></td><td style="width: 5%; text-align: right"><span style="-sec-ix-redline: true">4,473,861</span></td><td style="width: 1%; text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> <tr id="xdx_414_20221231__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--CustomerRelatedIntangibleAssetsMember_zxrajA9KcgS4" style="vertical-align: bottom; background-color: White"> <td style="text-align: left"><span style="-sec-ix-redline: true">Customer base</span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true">1,137,663</span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true">889,364</span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true">141,145</span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true">141,145</span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true">141,145</span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true">435,195</span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true">2,885,657</span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> <tr id="xdx_411_20221231__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--TrademarksAndTradeNamesMember_zDJ7aTCbhYv6" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left"><span style="-sec-ix-redline: true">Tradenames and trademarks</span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true">207,944</span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true">207,944</span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true">207,944</span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true">207,944</span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true">207,944</span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true">718,171</span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true">1,757,891</span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> <tr id="xdx_411_20221231__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--NoncompeteAgreementsMember_zgEhI7h9byq9" style="vertical-align: bottom; background-color: White"> <td style="text-align: left"><span style="-sec-ix-redline: true">Non-compete agreement</span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true">335,933</span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true"><span style="-sec-ix-hidden: xdx2ixbrl3361">—</span></span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true"><span style="-sec-ix-hidden: xdx2ixbrl3362">—</span></span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true"><span style="-sec-ix-hidden: xdx2ixbrl3363">—</span></span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true"><span style="-sec-ix-hidden: xdx2ixbrl3364">—</span></span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true"><span style="-sec-ix-hidden: xdx2ixbrl3365">—</span></span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true">335,933</span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> <tr id="xdx_416_20221231__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__custom--PlatformDevelopmentCostsMember_ziNjhgDAzsa" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left"><span style="-sec-ix-redline: true">Platform development costs</span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true">662,350</span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true">487,751</span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true">182,415</span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true"><span style="-sec-ix-hidden: xdx2ixbrl3370">—</span></span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true"><span style="-sec-ix-hidden: xdx2ixbrl3371">—</span></span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true"><span style="-sec-ix-hidden: xdx2ixbrl3372">—</span></span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true">1,332,516</span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> <tr id="xdx_419_20221231__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--ComputerSoftwareIntangibleAssetMember_zQAHJuYq1SHe" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true">Internal use software costs</span></td><td style="padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 1.5pt solid; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="border-bottom: Black 1.5pt solid; text-align: right"><span style="-sec-ix-redline: true">298,775</span></td><td style="padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 1.5pt solid; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="border-bottom: Black 1.5pt solid; text-align: right"><span style="-sec-ix-redline: true">298,775</span></td><td style="padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 1.5pt solid; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="border-bottom: Black 1.5pt solid; text-align: right"><span style="-sec-ix-redline: true">124,245</span></td><td style="padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 1.5pt solid; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="border-bottom: Black 1.5pt solid; text-align: right"><span style="-sec-ix-redline: true"><span style="-sec-ix-hidden: xdx2ixbrl3377">—</span></span></td><td style="padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 1.5pt solid; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="border-bottom: Black 1.5pt solid; text-align: right"><span style="-sec-ix-redline: true"><span style="-sec-ix-hidden: xdx2ixbrl3378">—</span></span></td><td style="padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 1.5pt solid; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="border-bottom: Black 1.5pt solid; text-align: right"><span style="-sec-ix-redline: true"><span style="-sec-ix-hidden: xdx2ixbrl3379">—</span></span></td><td style="padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 1.5pt solid; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="border-bottom: Black 1.5pt solid; text-align: right"><span style="-sec-ix-redline: true">721,795</span></td><td style="padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> <tr id="xdx_415_20221231_z9Sy7cIjMtmd" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 2.5pt"><span style="-sec-ix-redline: true">Total Intangible Assets, Net</span></td><td style="padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 2.5pt double; text-align: left"><span style="-sec-ix-redline: true">$</span></td><td style="border-bottom: Black 2.5pt double; text-align: right"><span style="-sec-ix-redline: true">3,451,633</span></td><td style="padding-bottom: 2.5pt; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 2.5pt double; text-align: left"><span style="-sec-ix-redline: true">$</span></td><td style="border-bottom: Black 2.5pt double; text-align: right"><span style="-sec-ix-redline: true">2,692,802</span></td><td style="padding-bottom: 2.5pt; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 2.5pt double; text-align: left"><span style="-sec-ix-redline: true">$</span></td><td style="border-bottom: Black 2.5pt double; text-align: right"><span style="-sec-ix-redline: true">1,464,717</span></td><td style="padding-bottom: 2.5pt; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 2.5pt double; text-align: left"><span style="-sec-ix-redline: true">$</span></td><td style="border-bottom: Black 2.5pt double; text-align: right"><span style="-sec-ix-redline: true">1,158,057</span></td><td style="padding-bottom: 2.5pt; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 2.5pt double; text-align: left"><span style="-sec-ix-redline: true">$</span></td><td style="border-bottom: Black 2.5pt double; text-align: right"><span style="-sec-ix-redline: true">1,058,057</span></td><td style="padding-bottom: 2.5pt; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 2.5pt double; text-align: left"><span style="-sec-ix-redline: true">$</span></td><td style="border-bottom: Black 2.5pt double; text-align: right"><span style="-sec-ix-redline: true">1,582,387</span></td><td style="padding-bottom: 2.5pt; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 2.5pt double; text-align: left"><span style="-sec-ix-redline: true">$</span></td><td style="border-bottom: Black 2.5pt double; text-align: right"><span style="-sec-ix-redline: true">11,507,653</span></td><td style="padding-bottom: 2.5pt; text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> </table> <p id="xdx_8A8_z38bShPDKlh3" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p id="xdx_89C_eus-gaap--ScheduleOfFiniteLivedIntangibleAssetsTableTextBlock_z3c6WX381gdh" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0.5in; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">As of December 31, 2022, intangible assets, net, other than goodwill, consist of following:</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0.5in; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> <span id="xdx_8B5_znRC1yRi3BUj" style="display: none">Schedule of Intangible Assets, Net</span></span><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></span></p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td style="border-bottom: Black 1.5pt solid; font-weight: bold"><span style="-sec-ix-redline: true">Name</span></td><td style="font-weight: bold; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"><span style="-sec-ix-redline: true">Estimated Life (Years)</span></td><td style="font-weight: bold; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"><span style="-sec-ix-redline: true">Balance as of December 31, 2021</span></td><td style="padding-bottom: 1.5pt; font-weight: bold"><span style="-sec-ix-redline: true"> </span></td><td style="font-weight: bold; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"><span style="-sec-ix-redline: true">Additions</span></td><td style="padding-bottom: 1.5pt; font-weight: bold"><span style="-sec-ix-redline: true"> </span></td><td style="font-weight: bold; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"><span style="-sec-ix-redline: true">Amortization</span></td><td style="padding-bottom: 1.5pt; font-weight: bold"><span style="-sec-ix-redline: true"> </span></td><td style="font-weight: bold; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"><span style="-sec-ix-redline: true">Balance as of December 31, 2022</span></td><td style="padding-bottom: 1.5pt; font-weight: bold"><span style="-sec-ix-redline: true"> </span></td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 36%; text-align: left"><span style="-sec-ix-redline: true">Intellectual property/technology</span></td><td style="width: 2%"><span style="-sec-ix-redline: true"> </span></td> <td style="width: 10%; text-align: center"><span style="-sec-ix-redline: true"><span id="xdx_90B_eus-gaap--FiniteLivedIntangibleAssetUsefulLife_iI_dtY_c20221231__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--IntellectualPropertyMember__srt--RangeAxis__srt--MinimumMember_zHggGeEG2eF" title="Estimated life">5</span>-<span id="xdx_901_eus-gaap--FiniteLivedIntangibleAssetUsefulLife_iI_dtY_c20221231__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--IntellectualPropertyMember__srt--RangeAxis__srt--MaximumMember_zJmOKsPMOcoh" title="Estimated life">7</span></span></td><td style="width: 2%"><span style="-sec-ix-redline: true"> </span></td> <td style="width: 1%; text-align: left"><span style="-sec-ix-redline: true">$</span></td><td style="width: 9%; text-align: right"><span style="-sec-ix-redline: true">     <span id="xdx_905_eus-gaap--FiniteLivedIntangibleAssetsNet_iS_c20220101__20221231__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--IntellectualPropertyMember_zS6XXMLGF178" title="Beginning balance">5,427,294</span></span></td><td style="width: 1%; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="width: 2%"><span style="-sec-ix-redline: true"> </span></td> <td style="width: 1%; text-align: left"><span style="-sec-ix-redline: true">$</span></td><td id="xdx_985_eus-gaap--FiniteLivedIntangibleAssetsPeriodIncreaseDecrease_c20220101__20221231__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--IntellectualPropertyMember_zUxQiVBqSBQc" style="width: 9%; text-align: right" title="Additions"><span style="-sec-ix-redline: true"><span style="-sec-ix-hidden: xdx2ixbrl3184">—</span></span></td><td style="width: 1%; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="width: 2%"><span style="-sec-ix-redline: true"> </span></td> <td style="width: 1%; text-align: left"><span style="-sec-ix-redline: true">$</span></td><td id="xdx_983_eus-gaap--AmortizationOfIntangibleAssets_iN_di_c20220101__20221231__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--IntellectualPropertyMember_zQgaGV6Cup2i" style="width: 9%; text-align: right" title="Amortization"><span style="-sec-ix-redline: true">(953,433</span></td><td style="width: 1%; text-align: left"><span style="-sec-ix-redline: true">)</span></td><td style="width: 2%"><span style="-sec-ix-redline: true"> </span></td> <td style="width: 1%; text-align: left"><span style="-sec-ix-redline: true">$</span></td><td style="width: 9%; text-align: right"><span style="-sec-ix-redline: true">     <span id="xdx_907_eus-gaap--FiniteLivedIntangibleAssetsNet_iE_c20220101__20221231__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--IntellectualPropertyMember_zXfEfupfQWt7" title="Ending balance">4,473,861</span></span></td><td style="width: 1%; text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left"><span style="-sec-ix-redline: true">Customer base</span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: center"><span style="-sec-ix-redline: true"><span id="xdx_900_eus-gaap--FiniteLivedIntangibleAssetUsefulLife_iI_dtY_c20221231__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--CustomerRelatedIntangibleAssetsMember__srt--RangeAxis__srt--MinimumMember_zMlFTje1GKx5" title="Estimated life">3</span>-<span id="xdx_909_eus-gaap--FiniteLivedIntangibleAssetUsefulLife_iI_dtY_c20221231__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--CustomerRelatedIntangibleAssetsMember__srt--RangeAxis__srt--MaximumMember_zRoKAJZOD1b5" title="Estimated life">10</span></span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td id="xdx_980_eus-gaap--FiniteLivedIntangibleAssetsNet_iS_c20220101__20221231__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--CustomerRelatedIntangibleAssetsMember_z0UXbygH5lul" style="text-align: right" title="Beginning balance"><span style="-sec-ix-redline: true">4,047,319</span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td id="xdx_982_eus-gaap--FiniteLivedIntangibleAssetsPeriodIncreaseDecrease_c20220101__20221231__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--CustomerRelatedIntangibleAssetsMember_zzEvw8ImdOpc" style="text-align: right" title="Additions"><span style="-sec-ix-redline: true"><span style="-sec-ix-hidden: xdx2ixbrl3196">—</span></span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td id="xdx_987_eus-gaap--AmortizationOfIntangibleAssets_iN_di_c20220101__20221231__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--CustomerRelatedIntangibleAssetsMember_z8xZjK6aEDNh" style="text-align: right" title="Amortization"><span style="-sec-ix-redline: true">(1,161,662</span></td><td style="text-align: left"><span style="-sec-ix-redline: true">)</span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td id="xdx_982_eus-gaap--FiniteLivedIntangibleAssetsNet_iE_c20220101__20221231__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--CustomerRelatedIntangibleAssetsMember_zA4X7Ce0u9E6" style="text-align: right" title="Ending balance"><span style="-sec-ix-redline: true">2,885,657</span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left"><span style="-sec-ix-redline: true">Tradenames and trademarks</span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: center"><span style="-sec-ix-redline: true"><span id="xdx_907_eus-gaap--FiniteLivedIntangibleAssetUsefulLife_iI_dtY_c20221231__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--TrademarksAndTradeNamesMember__srt--RangeAxis__srt--MinimumMember_zV9swP5ZTO2a" title="Estimated life">5</span>-<span id="xdx_90C_eus-gaap--FiniteLivedIntangibleAssetUsefulLife_iI_dtY_c20221231__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--TrademarksAndTradeNamesMember__srt--RangeAxis__srt--MaximumMember_zpsbhk6N8EH6" title="Estimated life">10</span></span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td id="xdx_98B_eus-gaap--FiniteLivedIntangibleAssetsNet_iS_c20220101__20221231__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--TrademarksAndTradeNamesMember_ztaaXjeasdsi" style="text-align: right" title="Beginning balance"><span style="-sec-ix-redline: true">1,985,236</span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td id="xdx_98C_eus-gaap--FiniteLivedIntangibleAssetsPeriodIncreaseDecrease_c20220101__20221231__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--TrademarksAndTradeNamesMember_zLFMPUqHuuTa" style="text-align: right" title="Additions"><span style="-sec-ix-redline: true"><span style="-sec-ix-hidden: xdx2ixbrl3208">—</span></span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td id="xdx_98C_eus-gaap--AmortizationOfIntangibleAssets_iN_di_c20220101__20221231__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--TrademarksAndTradeNamesMember_zcNI9IWF6g17" style="text-align: right" title="Amortization"><span style="-sec-ix-redline: true">(227,345</span></td><td style="text-align: left"><span style="-sec-ix-redline: true">)</span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td id="xdx_980_eus-gaap--FiniteLivedIntangibleAssetsNet_iE_c20220101__20221231__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--TrademarksAndTradeNamesMember_zV7782QjIvxb" style="text-align: right" title="Ending balance"><span style="-sec-ix-redline: true">1,757,891</span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left"><span style="-sec-ix-redline: true">Non-compete agreement</span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: center"><span style="-sec-ix-redline: true"><span id="xdx_906_eus-gaap--FiniteLivedIntangibleAssetUsefulLife_iI_dtY_c20221231__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--NoncompeteAgreementsMember__srt--RangeAxis__srt--MinimumMember_zrcwL8U74eCk" title="Estimated life">2</span>-<span id="xdx_901_eus-gaap--FiniteLivedIntangibleAssetUsefulLife_iI_dtY_c20221231__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--NoncompeteAgreementsMember__srt--RangeAxis__srt--MaximumMember_zhYdSYs3I6c2" title="Estimated life">4</span></span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td id="xdx_980_eus-gaap--FiniteLivedIntangibleAssetsNet_iS_c20220101__20221231__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--NoncompeteAgreementsMember_zm5Bb3II0Kf6" style="text-align: right" title="Beginning balance"><span style="-sec-ix-redline: true">831,501</span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td id="xdx_98D_eus-gaap--FiniteLivedIntangibleAssetsPeriodIncreaseDecrease_c20220101__20221231__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--NoncompeteAgreementsMember_zKOdxo8Yq2Jj" style="text-align: right" title="Additions"><span style="-sec-ix-redline: true"><span style="-sec-ix-hidden: xdx2ixbrl3220">—</span></span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td id="xdx_98D_eus-gaap--AmortizationOfIntangibleAssets_iN_di_c20220101__20221231__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--NoncompeteAgreementsMember_zhbac7QhcU5a" style="text-align: right" title="Amortization"><span style="-sec-ix-redline: true">(495,568</span></td><td style="text-align: left"><span style="-sec-ix-redline: true">)</span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td id="xdx_984_eus-gaap--FiniteLivedIntangibleAssetsNet_iE_c20220101__20221231__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--NoncompeteAgreementsMember_z4REp2uatD6a" style="text-align: right" title="Ending balance"><span style="-sec-ix-redline: true">335,933</span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left"><span style="-sec-ix-redline: true">Platform development costs</span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: center"><span style="-sec-ix-redline: true"><span id="xdx_906_eus-gaap--FiniteLivedIntangibleAssetUsefulLife_iI_dtY_c20221231__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__custom--PlatformDevelopmentCostsMember_zAHeEmdRipQe" title="Estimated life">3</span></span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td id="xdx_98A_eus-gaap--FiniteLivedIntangibleAssetsNet_iS_c20220101__20221231__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__custom--PlatformDevelopmentCostsMember_z6xVs3egMG0k" style="text-align: right" title="Beginning balance"><span style="-sec-ix-redline: true">995,880</span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td id="xdx_981_eus-gaap--FiniteLivedIntangibleAssetsPeriodIncreaseDecrease_c20220101__20221231__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__custom--PlatformDevelopmentCostsMember_zV40IGkRgma9" style="text-align: right" title="Additions"><span style="-sec-ix-redline: true">817,029</span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td id="xdx_98E_eus-gaap--AmortizationOfIntangibleAssets_iN_di_c20220101__20221231__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__custom--PlatformDevelopmentCostsMember_za9HBoH89Bji" style="text-align: right" title="Amortization"><span style="-sec-ix-redline: true">(480,393</span></td><td style="text-align: left"><span style="-sec-ix-redline: true">)</span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td id="xdx_98B_eus-gaap--FiniteLivedIntangibleAssetsNet_iE_c20220101__20221231__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__custom--PlatformDevelopmentCostsMember_zJ5NxOBFfYK2" style="text-align: right" title="Ending balance"><span style="-sec-ix-redline: true">1,332,516</span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true">Internal use software costs</span></td><td style="padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: center; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span id="xdx_905_eus-gaap--FiniteLivedIntangibleAssetUsefulLife_iI_dtY_c20221231__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--ComputerSoftwareIntangibleAssetMember_z0hsN6eOFgt8" title="Estimated life">3</span></span></td><td style="padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 1.5pt solid; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="border-bottom: Black 1.5pt solid; text-align: right"><span style="-sec-ix-redline: true"><span id="xdx_903_eus-gaap--FiniteLivedIntangibleAssetsNet_iS_c20220101__20221231__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--ComputerSoftwareIntangibleAssetMember_zoZTDqzFpp44" title="Beginning balance">278,264</span></span></td><td style="padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 1.5pt solid; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td id="xdx_98C_eus-gaap--FiniteLivedIntangibleAssetsPeriodIncreaseDecrease_c20220101__20221231__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--ComputerSoftwareIntangibleAssetMember_zRFN7eHdWCN8" style="border-bottom: Black 1.5pt solid; text-align: right" title="Additions"><span style="-sec-ix-redline: true">618,061</span></td><td style="padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 1.5pt solid; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td id="xdx_985_eus-gaap--AmortizationOfIntangibleAssets_iN_di_c20220101__20221231__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--ComputerSoftwareIntangibleAssetMember_zm2TN0tbHhnf" style="border-bottom: Black 1.5pt solid; text-align: right" title="Amortization"><span style="-sec-ix-redline: true">(174,530</span></td><td style="padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true">)</span></td><td style="padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 1.5pt solid; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="border-bottom: Black 1.5pt solid; text-align: right"><span style="-sec-ix-redline: true"><span id="xdx_903_eus-gaap--FiniteLivedIntangibleAssetsNet_iE_c20220101__20221231__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--ComputerSoftwareIntangibleAssetMember_zDL1W2bwrtBh" title="Ending balance">721,795</span></span></td><td style="padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 2.5pt"><span style="-sec-ix-redline: true">Total intangible assets, net</span></td><td style="padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: center; padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"> </span></td><td style="padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 2.5pt double; text-align: left"><span style="-sec-ix-redline: true">$</span></td><td id="xdx_980_eus-gaap--FiniteLivedIntangibleAssetsNet_iS_c20220101__20221231_ziopP6Vpb8u2" style="border-bottom: Black 2.5pt double; text-align: right" title="Beginning balance"><span style="-sec-ix-redline: true">13,565,494</span></td><td style="padding-bottom: 2.5pt; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 2.5pt double; text-align: left"><span style="-sec-ix-redline: true">$</span></td><td id="xdx_987_eus-gaap--FiniteLivedIntangibleAssetsPeriodIncreaseDecrease_c20220101__20221231_zlq2vPAI28Hc" style="border-bottom: Black 2.5pt double; text-align: right" title="Additions"><span style="-sec-ix-redline: true">1,435,090</span></td><td style="padding-bottom: 2.5pt; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 2.5pt double; text-align: left"><span style="-sec-ix-redline: true">$</span></td><td id="xdx_981_eus-gaap--AmortizationOfIntangibleAssets_iN_di_c20220101__20221231_zflSLxDOjb42" style="border-bottom: Black 2.5pt double; text-align: right" title="Amortization"><span style="-sec-ix-redline: true">(3,492,931</span></td><td style="padding-bottom: 2.5pt; text-align: left"><span style="-sec-ix-redline: true">)</span></td><td style="padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 2.5pt double; text-align: left"><span style="-sec-ix-redline: true">$</span></td><td id="xdx_986_eus-gaap--FiniteLivedIntangibleAssetsNet_iE_c20220101__20221231_zG5S1Gk5Ge47" style="border-bottom: Black 2.5pt double; text-align: right" title="Ending balance"><span style="-sec-ix-redline: true">11,507,653</span></td><td style="padding-bottom: 2.5pt; text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> </table> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">As of December 31, 2021, intangible assets, net other than goodwill, consist of the following:</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td style="border-bottom: Black 1.5pt solid; font-weight: bold"><span style="-sec-ix-redline: true">Name</span></td><td style="font-weight: bold; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"><span style="-sec-ix-redline: true">Estimated Life (Years)</span></td><td style="font-weight: bold; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"><span style="-sec-ix-redline: true">Balance as of December 31, 2020</span></td><td style="padding-bottom: 1.5pt; font-weight: bold"><span style="-sec-ix-redline: true"> </span></td><td style="font-weight: bold; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"><span style="-sec-ix-redline: true">Additions</span></td><td style="padding-bottom: 1.5pt; font-weight: bold"><span style="-sec-ix-redline: true"> </span></td><td style="font-weight: bold; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"><span style="-sec-ix-redline: true">Amortization</span></td><td style="padding-bottom: 1.5pt; font-weight: bold"><span style="-sec-ix-redline: true"> </span></td><td style="font-weight: bold; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"><span style="-sec-ix-redline: true">Balance as of December 31, 2021</span></td><td style="padding-bottom: 1.5pt; font-weight: bold"><span style="-sec-ix-redline: true"> </span></td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 36%; text-align: left"><span style="-sec-ix-redline: true">Intellectual property/technology</span></td><td style="width: 2%"><span style="-sec-ix-redline: true"> </span></td> <td style="width: 10%; text-align: center"><span style="-sec-ix-redline: true"><span id="xdx_90D_eus-gaap--FiniteLivedIntangibleAssetUsefulLife_iI_dtY_c20211231__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--IntellectualPropertyMember__srt--RangeAxis__srt--MinimumMember_zD6oHm3A3n5l" title="Estimated life">5</span>-<span id="xdx_90C_eus-gaap--FiniteLivedIntangibleAssetUsefulLife_iI_dtY_c20211231__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--IntellectualPropertyMember__srt--RangeAxis__srt--MaximumMember_zicTxsNaNf74" title="Estimated life">7</span></span></td><td style="width: 2%"><span style="-sec-ix-redline: true"> </span></td> <td style="width: 1%; text-align: left"><span style="-sec-ix-redline: true">$</span></td><td style="width: 9%; text-align: right"><span style="-sec-ix-redline: true">        <span id="xdx_90D_eus-gaap--FiniteLivedIntangibleAssetsNet_iS_c20210101__20211231__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--IntellectualPropertyMember_zDAzr5P8MWk1" title="Beginning balance">231,146</span></span></td><td style="width: 1%; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="width: 2%"><span style="-sec-ix-redline: true"> </span></td> <td style="width: 1%; text-align: left"><span style="-sec-ix-redline: true">$</span></td><td id="xdx_985_eus-gaap--FiniteLivedIntangibleAssetsPeriodIncreaseDecrease_c20210101__20211231__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--IntellectualPropertyMember_z3y1D5WuNZng" style="width: 9%; text-align: right" title="Additions"><span style="-sec-ix-redline: true">5,671,026</span></td><td style="width: 1%; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="width: 2%"><span style="-sec-ix-redline: true"> </span></td> <td style="width: 1%; text-align: left"><span style="-sec-ix-redline: true">$</span></td><td id="xdx_98C_eus-gaap--AmortizationOfIntangibleAssets_iN_di_c20210101__20211231__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--IntellectualPropertyMember_zp4PQcqVV5Ui" style="width: 9%; text-align: right" title="Amortization"><span style="-sec-ix-redline: true">(474,878</span></td><td style="width: 1%; text-align: left"><span style="-sec-ix-redline: true">)</span></td><td style="width: 2%"><span style="-sec-ix-redline: true"> </span></td> <td style="width: 1%; text-align: left"><span style="-sec-ix-redline: true">$</span></td><td style="width: 9%; text-align: right"><span style="-sec-ix-redline: true">     <span id="xdx_90F_eus-gaap--FiniteLivedIntangibleAssetsNet_iE_c20210101__20211231__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--IntellectualPropertyMember_zkZfMiug7rv5" title="Ending balance">5,427,294</span></span></td><td style="width: 1%; text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left"><span style="-sec-ix-redline: true">Customer base</span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: center"><span style="-sec-ix-redline: true"><span id="xdx_90A_eus-gaap--FiniteLivedIntangibleAssetUsefulLife_iI_dtY_c20211231__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--CustomerRelatedIntangibleAssetsMember__srt--RangeAxis__srt--MinimumMember_zM9Ror8wmbpa" title="Estimated life">3</span>-<span id="xdx_901_eus-gaap--FiniteLivedIntangibleAssetUsefulLife_iI_dtY_c20211231__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--CustomerRelatedIntangibleAssetsMember__srt--RangeAxis__srt--MaximumMember_zzDUELwhIiU5" title="Estimated life">10</span></span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td id="xdx_984_eus-gaap--FiniteLivedIntangibleAssetsNet_iS_c20210101__20211231__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--CustomerRelatedIntangibleAssetsMember_z5hjphBCxjHj" style="text-align: right" title="Beginning balance"><span style="-sec-ix-redline: true">38,400</span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td id="xdx_983_eus-gaap--FiniteLivedIntangibleAssetsPeriodIncreaseDecrease_c20210101__20211231__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--CustomerRelatedIntangibleAssetsMember_zNnhzon7Kixe" style="text-align: right" title="Additions"><span style="-sec-ix-redline: true">4,411,499</span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td id="xdx_989_eus-gaap--AmortizationOfIntangibleAssets_iN_di_c20210101__20211231__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--CustomerRelatedIntangibleAssetsMember_zL0pi8DqLZA4" style="text-align: right" title="Amortization"><span style="-sec-ix-redline: true">(402,580</span></td><td style="text-align: left"><span style="-sec-ix-redline: true">)</span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td id="xdx_98D_eus-gaap--FiniteLivedIntangibleAssetsNet_iE_c20210101__20211231__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--CustomerRelatedIntangibleAssetsMember_zAZYvGcGb5s8" style="text-align: right" title="Ending balance"><span style="-sec-ix-redline: true">4,047,319</span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left"><span style="-sec-ix-redline: true">Tradenames and trademarks</span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: center"><span style="-sec-ix-redline: true"><span id="xdx_90E_eus-gaap--FiniteLivedIntangibleAssetUsefulLife_iI_dtY_c20211231__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--TrademarksAndTradeNamesMember__srt--RangeAxis__srt--MinimumMember_zUSPQsJwBcS2" title="Estimated life">5</span>-<span id="xdx_909_eus-gaap--FiniteLivedIntangibleAssetUsefulLife_iI_dtY_c20211231__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--TrademarksAndTradeNamesMember__srt--RangeAxis__srt--MaximumMember_zxUfstea66g5" title="Estimated life">10</span></span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td id="xdx_989_eus-gaap--FiniteLivedIntangibleAssetsNet_iS_c20210101__20211231__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--TrademarksAndTradeNamesMember_zIW77LWVLt8f" style="text-align: right" title="Beginning balance"><span style="-sec-ix-redline: true">31,040</span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td id="xdx_985_eus-gaap--FiniteLivedIntangibleAssetsPeriodIncreaseDecrease_c20210101__20211231__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--TrademarksAndTradeNamesMember_zPh8ZyV55ODf" style="text-align: right" title="Additions"><span style="-sec-ix-redline: true">2,082,338</span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td id="xdx_98C_eus-gaap--AmortizationOfIntangibleAssets_iN_di_c20210101__20211231__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--TrademarksAndTradeNamesMember_zilmFtoFNIPc" style="text-align: right" title="Amortization"><span style="-sec-ix-redline: true">(128,142</span></td><td style="text-align: left"><span style="-sec-ix-redline: true">)</span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td id="xdx_984_eus-gaap--FiniteLivedIntangibleAssetsNet_iE_c20210101__20211231__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--TrademarksAndTradeNamesMember_zRzBmFDqwItf" style="text-align: right" title="Ending balance"><span style="-sec-ix-redline: true">1,985,236</span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left"><span style="-sec-ix-redline: true">Non-compete agreement</span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: center"><span style="-sec-ix-redline: true"><span id="xdx_900_eus-gaap--FiniteLivedIntangibleAssetUsefulLife_iI_dtY_c20211231__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--NoncompeteAgreementsMember__srt--RangeAxis__srt--MinimumMember_zZy0ep5phfFg" title="Estimated life">2</span>-<span id="xdx_903_eus-gaap--FiniteLivedIntangibleAssetUsefulLife_iI_dtY_c20211231__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--NoncompeteAgreementsMember__srt--RangeAxis__srt--MaximumMember_z4uJHPcy08x" title="Estimated life">4</span></span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td id="xdx_981_eus-gaap--FiniteLivedIntangibleAssetsNet_iS_c20210101__20211231__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--NoncompeteAgreementsMember_zjaAyIZB6mM8" style="text-align: right" title="Beginning balance"><span style="-sec-ix-redline: true">67,042</span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td id="xdx_982_eus-gaap--FiniteLivedIntangibleAssetsPeriodIncreaseDecrease_c20210101__20211231__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--NoncompeteAgreementsMember_zUN2P3ndwD4g" style="text-align: right" title="Additions"><span style="-sec-ix-redline: true">901,198</span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td id="xdx_984_eus-gaap--AmortizationOfIntangibleAssets_iN_di_c20210101__20211231__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--NoncompeteAgreementsMember_zMbQhbleb7K7" style="text-align: right" title="Amortization"><span style="-sec-ix-redline: true">(136,739</span></td><td style="text-align: left"><span style="-sec-ix-redline: true">)</span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td id="xdx_981_eus-gaap--FiniteLivedIntangibleAssetsNet_iE_c20210101__20211231__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--NoncompeteAgreementsMember_zRe8t0Qpxl08" style="text-align: right" title="Ending balance"><span style="-sec-ix-redline: true">831,501</span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left"><span style="-sec-ix-redline: true">Platform development costs</span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: center"><span style="-sec-ix-redline: true"><span id="xdx_907_eus-gaap--FiniteLivedIntangibleAssetUsefulLife_iI_dtY_c20211231__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__custom--PlatformDevelopmentCostsMember_zidiXRnAaYT9" title="Estimated life">3</span></span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td id="xdx_982_eus-gaap--FiniteLivedIntangibleAssetsNet_iS_c20210101__20211231__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__custom--PlatformDevelopmentCostsMember_zyijBBLIsEGh" style="text-align: right" title="Beginning balance"><span style="-sec-ix-redline: true">72,899</span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td id="xdx_980_eus-gaap--FiniteLivedIntangibleAssetsPeriodIncreaseDecrease_c20210101__20211231__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__custom--PlatformDevelopmentCostsMember_zSHtHNb6e2B" style="text-align: right" title="Additions"><span style="-sec-ix-redline: true">1,097,808</span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td id="xdx_98E_eus-gaap--AmortizationOfIntangibleAssets_iN_di_c20210101__20211231__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__custom--PlatformDevelopmentCostsMember_zGKAu9ZylEM3" style="text-align: right" title="Amortization"><span style="-sec-ix-redline: true">(174,827</span></td><td style="text-align: left"><span style="-sec-ix-redline: true">)</span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td id="xdx_98E_eus-gaap--FiniteLivedIntangibleAssetsNet_iE_c20210101__20211231__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__custom--PlatformDevelopmentCostsMember_zqzeIQLuXB75" style="text-align: right" title="Ending balance"><span style="-sec-ix-redline: true">995,880</span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true">Internal use software costs</span></td><td style="padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: center; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"><span id="xdx_90B_eus-gaap--FiniteLivedIntangibleAssetUsefulLife_iI_dtY_c20211231__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--ComputerSoftwareIntangibleAssetMember_zP8ch4rtA58b" title="Estimated life">3</span></span></td><td style="padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 1.5pt solid; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td id="xdx_98A_eus-gaap--FiniteLivedIntangibleAssetsNet_iS_c20210101__20211231__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--ComputerSoftwareIntangibleAssetMember_zExlx1TQvQRb" style="border-bottom: Black 1.5pt solid; text-align: right" title="Beginning balance"><span style="-sec-ix-redline: true"><span style="-sec-ix-hidden: xdx2ixbrl3314">—</span></span></td><td style="padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 1.5pt solid; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td id="xdx_98E_eus-gaap--FiniteLivedIntangibleAssetsPeriodIncreaseDecrease_c20210101__20211231__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--ComputerSoftwareIntangibleAssetMember_z8mqHD2T4Xxf" style="border-bottom: Black 1.5pt solid; text-align: right" title="Additions"><span style="-sec-ix-redline: true">278,264</span></td><td style="padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 1.5pt solid; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td id="xdx_98C_eus-gaap--AmortizationOfIntangibleAssets_iN_di_c20210101__20211231__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--ComputerSoftwareIntangibleAssetMember_zgiRCcjYdln9" style="border-bottom: Black 1.5pt solid; text-align: right" title="Amortization"><span style="-sec-ix-redline: true"><span style="-sec-ix-hidden: xdx2ixbrl3318">—</span></span></td><td style="padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 1.5pt solid; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td id="xdx_989_eus-gaap--FiniteLivedIntangibleAssetsNet_iE_c20210101__20211231__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--ComputerSoftwareIntangibleAssetMember_z44pGzVjxod9" style="border-bottom: Black 1.5pt solid; text-align: right" title="Ending balance"><span style="-sec-ix-redline: true">278,264</span></td><td style="padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 2.5pt"><span style="-sec-ix-redline: true">Total intangible assets, net</span></td><td style="padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"> </span></td><td style="padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 2.5pt double; text-align: left"><span style="-sec-ix-redline: true">$</span></td><td id="xdx_986_eus-gaap--FiniteLivedIntangibleAssetsNet_iS_c20210101__20211231_zDsewtshTSYg" style="border-bottom: Black 2.5pt double; text-align: right" title="Beginning balance"><span style="-sec-ix-redline: true">440,527</span></td><td style="padding-bottom: 2.5pt; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 2.5pt double; text-align: left"><span style="-sec-ix-redline: true">$</span></td><td id="xdx_98D_eus-gaap--FiniteLivedIntangibleAssetsPeriodIncreaseDecrease_c20210101__20211231_zmnRkMyyzEw1" style="border-bottom: Black 2.5pt double; text-align: right" title="Additions"><span style="-sec-ix-redline: true">14,442,133</span></td><td style="padding-bottom: 2.5pt; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 2.5pt double; text-align: left"><span style="-sec-ix-redline: true">$</span></td><td id="xdx_988_eus-gaap--AmortizationOfIntangibleAssets_iN_di_c20210101__20211231_zbSQCI5ayw05" style="border-bottom: Black 2.5pt double; text-align: right" title="Amortization"><span style="-sec-ix-redline: true">(1,317,166</span></td><td style="padding-bottom: 2.5pt; text-align: left"><span style="-sec-ix-redline: true">)</span></td><td style="padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 2.5pt double; text-align: left"><span style="-sec-ix-redline: true">$</span></td><td style="border-bottom: Black 2.5pt double; text-align: right"><span style="-sec-ix-redline: true"><span id="xdx_907_eus-gaap--FiniteLivedIntangibleAssetsNet_iE_c20210101__20211231_zA3fSP6MY1of" title="Ending balance">13,565,494</span></span></td><td style="padding-bottom: 2.5pt; text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> </table> P5Y P7Y 5427294 953433 4473861 P3Y P10Y 4047319 1161662 2885657 P5Y P10Y 1985236 227345 1757891 P2Y P4Y 831501 495568 335933 P3Y 995880 817029 480393 1332516 P3Y 278264 618061 174530 721795 13565494 1435090 3492931 11507653 P5Y P7Y 231146 5671026 474878 5427294 P3Y P10Y 38400 4411499 402580 4047319 P5Y P10Y 31040 2082338 128142 1985236 P2Y P4Y 67042 901198 136739 831501 P3Y 72899 1097808 174827 995880 P3Y 278264 278264 440527 14442133 1317166 13565494 P4Y6M 3492931 1317166 480393 <p id="xdx_89C_eus-gaap--ScheduleofFiniteLivedIntangibleAssetsFutureAmortizationExpenseTableTextBlock_z4u595QtQ93j" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0.5in; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> For the following years ending, the future amortization expenses consist of the following:</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0.5in; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; display: none; margin: 0pt; text-indent: 0.5in; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><span id="xdx_8B8_zTzydzi9RKic" style="display: none">Schedule of Intangible Assets Future Amortization Expenses</span></span></span></span></span></p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="display: none; vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_48C_eus-gaap--FiniteLivedIntangibleAssetsAmortizationExpenseNextTwelveMonths_iI_z0m7a4hVhRKa" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Year One</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_48F_eus-gaap--FiniteLivedIntangibleAssetsAmortizationExpenseYearTwo_iI_zT42YG06er88" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Year Two</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_489_eus-gaap--FiniteLivedIntangibleAssetsAmortizationExpenseYearThree_iI_zwU47DvB3Pe3" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Year Three</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_481_eus-gaap--FiniteLivedIntangibleAssetsAmortizationExpenseYearFour_iI_zaycBwHmlLZ7" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Year Four</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_48E_eus-gaap--FiniteLivedIntangibleAssetsAmortizationExpenseYearFive_iI_zJtzKplBmfWh" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Year Five</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_48B_eus-gaap--FiniteLivedIntangibleAssetsAmortizationExpenseAfterYearFive_iI_z9YIIWdWgxRc" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Thereafter</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_481_eus-gaap--FiniteLivedIntangibleAssetsNet_iI_zWn2DOwmJ8wd" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Total</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td><span style="-sec-ix-redline: true"> </span></td><td style="font-weight: bold; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td colspan="26" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"><span style="-sec-ix-redline: true">For the Years Ending December 31,</span></td><td style="padding-bottom: 1.5pt; font-weight: bold"><span style="-sec-ix-redline: true"> </span></td></tr> <tr style="vertical-align: bottom"> <td><span style="-sec-ix-redline: true"> </span></td><td style="font-weight: bold; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"><span style="-sec-ix-redline: true">2023</span></td><td style="padding-bottom: 1.5pt; font-weight: bold"><span style="-sec-ix-redline: true"> </span></td><td style="font-weight: bold; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"><span style="-sec-ix-redline: true">2024</span></td><td style="padding-bottom: 1.5pt; font-weight: bold"><span style="-sec-ix-redline: true"> </span></td><td style="font-weight: bold; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"><span style="-sec-ix-redline: true">2025</span></td><td style="padding-bottom: 1.5pt; font-weight: bold"><span style="-sec-ix-redline: true"> </span></td><td style="font-weight: bold; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"><span style="-sec-ix-redline: true">2026</span></td><td style="padding-bottom: 1.5pt; font-weight: bold"><span style="-sec-ix-redline: true"> </span></td><td style="font-weight: bold; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"><span style="-sec-ix-redline: true">2027</span></td><td style="padding-bottom: 1.5pt; font-weight: bold"><span style="-sec-ix-redline: true"> </span></td><td style="font-weight: bold; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"><span style="-sec-ix-redline: true">Thereafter</span></td><td style="padding-bottom: 1.5pt; font-weight: bold"><span style="-sec-ix-redline: true"> </span></td><td style="font-weight: bold; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"><span style="-sec-ix-redline: true">Total</span></td><td style="padding-bottom: 1.5pt; font-weight: bold"><span style="-sec-ix-redline: true"> </span></td></tr> <tr id="xdx_412_20221231__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--IntellectualPropertyMember_zr7bBDdKlk9c" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 37%; text-align: left"><span style="-sec-ix-redline: true">Intellectual property/ technology</span></td><td style="width: 2%"><span style="-sec-ix-redline: true"> </span></td> <td style="width: 1%; text-align: left"><span style="-sec-ix-redline: true">$</span></td><td style="width: 5%; text-align: right"><span style="-sec-ix-redline: true">808,968</span></td><td style="width: 1%; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="width: 2%"><span style="-sec-ix-redline: true"> </span></td> <td style="width: 1%; text-align: left"><span style="-sec-ix-redline: true">$</span></td><td style="width: 5%; text-align: right"><span style="-sec-ix-redline: true">808,968</span></td><td style="width: 1%; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="width: 2%"><span style="-sec-ix-redline: true"> </span></td> <td style="width: 1%; text-align: left"><span style="-sec-ix-redline: true">$</span></td><td style="width: 5%; text-align: right"><span style="-sec-ix-redline: true">808,968</span></td><td style="width: 1%; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="width: 2%"><span style="-sec-ix-redline: true"> </span></td> <td style="width: 1%; text-align: left"><span style="-sec-ix-redline: true">$</span></td><td style="width: 5%; text-align: right"><span style="-sec-ix-redline: true">808,968</span></td><td style="width: 1%; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="width: 2%"><span style="-sec-ix-redline: true"> </span></td> <td style="width: 1%; text-align: left"><span style="-sec-ix-redline: true">$</span></td><td style="width: 5%; text-align: right"><span style="-sec-ix-redline: true">808,968</span></td><td style="width: 1%; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="width: 2%"><span style="-sec-ix-redline: true"> </span></td> <td style="width: 1%; text-align: left"><span style="-sec-ix-redline: true">$</span></td><td style="width: 5%; text-align: right"><span style="-sec-ix-redline: true">429,021</span></td><td style="width: 1%; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="width: 2%"><span style="-sec-ix-redline: true"> </span></td> <td style="width: 1%; text-align: left"><span style="-sec-ix-redline: true">$</span></td><td style="width: 5%; text-align: right"><span style="-sec-ix-redline: true">4,473,861</span></td><td style="width: 1%; text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> <tr id="xdx_414_20221231__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--CustomerRelatedIntangibleAssetsMember_zxrajA9KcgS4" style="vertical-align: bottom; background-color: White"> <td style="text-align: left"><span style="-sec-ix-redline: true">Customer base</span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true">1,137,663</span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true">889,364</span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true">141,145</span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true">141,145</span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true">141,145</span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true">435,195</span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true">2,885,657</span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> <tr id="xdx_411_20221231__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--TrademarksAndTradeNamesMember_zDJ7aTCbhYv6" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left"><span style="-sec-ix-redline: true">Tradenames and trademarks</span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true">207,944</span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true">207,944</span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true">207,944</span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true">207,944</span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true">207,944</span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true">718,171</span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true">1,757,891</span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> <tr id="xdx_411_20221231__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--NoncompeteAgreementsMember_zgEhI7h9byq9" style="vertical-align: bottom; background-color: White"> <td style="text-align: left"><span style="-sec-ix-redline: true">Non-compete agreement</span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true">335,933</span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true"><span style="-sec-ix-hidden: xdx2ixbrl3361">—</span></span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true"><span style="-sec-ix-hidden: xdx2ixbrl3362">—</span></span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true"><span style="-sec-ix-hidden: xdx2ixbrl3363">—</span></span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true"><span style="-sec-ix-hidden: xdx2ixbrl3364">—</span></span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true"><span style="-sec-ix-hidden: xdx2ixbrl3365">—</span></span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true">335,933</span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> <tr id="xdx_416_20221231__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__custom--PlatformDevelopmentCostsMember_ziNjhgDAzsa" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left"><span style="-sec-ix-redline: true">Platform development costs</span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true">662,350</span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true">487,751</span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true">182,415</span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true"><span style="-sec-ix-hidden: xdx2ixbrl3370">—</span></span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true"><span style="-sec-ix-hidden: xdx2ixbrl3371">—</span></span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true"><span style="-sec-ix-hidden: xdx2ixbrl3372">—</span></span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true">1,332,516</span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> <tr id="xdx_419_20221231__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--ComputerSoftwareIntangibleAssetMember_zQAHJuYq1SHe" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true">Internal use software costs</span></td><td style="padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 1.5pt solid; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="border-bottom: Black 1.5pt solid; text-align: right"><span style="-sec-ix-redline: true">298,775</span></td><td style="padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 1.5pt solid; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="border-bottom: Black 1.5pt solid; text-align: right"><span style="-sec-ix-redline: true">298,775</span></td><td style="padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 1.5pt solid; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="border-bottom: Black 1.5pt solid; text-align: right"><span style="-sec-ix-redline: true">124,245</span></td><td style="padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 1.5pt solid; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="border-bottom: Black 1.5pt solid; text-align: right"><span style="-sec-ix-redline: true"><span style="-sec-ix-hidden: xdx2ixbrl3377">—</span></span></td><td style="padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 1.5pt solid; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="border-bottom: Black 1.5pt solid; text-align: right"><span style="-sec-ix-redline: true"><span style="-sec-ix-hidden: xdx2ixbrl3378">—</span></span></td><td style="padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 1.5pt solid; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="border-bottom: Black 1.5pt solid; text-align: right"><span style="-sec-ix-redline: true"><span style="-sec-ix-hidden: xdx2ixbrl3379">—</span></span></td><td style="padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 1.5pt solid; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="border-bottom: Black 1.5pt solid; text-align: right"><span style="-sec-ix-redline: true">721,795</span></td><td style="padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> <tr id="xdx_415_20221231_z9Sy7cIjMtmd" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 2.5pt"><span style="-sec-ix-redline: true">Total Intangible Assets, Net</span></td><td style="padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 2.5pt double; text-align: left"><span style="-sec-ix-redline: true">$</span></td><td style="border-bottom: Black 2.5pt double; text-align: right"><span style="-sec-ix-redline: true">3,451,633</span></td><td style="padding-bottom: 2.5pt; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 2.5pt double; text-align: left"><span style="-sec-ix-redline: true">$</span></td><td style="border-bottom: Black 2.5pt double; text-align: right"><span style="-sec-ix-redline: true">2,692,802</span></td><td style="padding-bottom: 2.5pt; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 2.5pt double; text-align: left"><span style="-sec-ix-redline: true">$</span></td><td style="border-bottom: Black 2.5pt double; text-align: right"><span style="-sec-ix-redline: true">1,464,717</span></td><td style="padding-bottom: 2.5pt; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 2.5pt double; text-align: left"><span style="-sec-ix-redline: true">$</span></td><td style="border-bottom: Black 2.5pt double; text-align: right"><span style="-sec-ix-redline: true">1,158,057</span></td><td style="padding-bottom: 2.5pt; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 2.5pt double; text-align: left"><span style="-sec-ix-redline: true">$</span></td><td style="border-bottom: Black 2.5pt double; text-align: right"><span style="-sec-ix-redline: true">1,058,057</span></td><td style="padding-bottom: 2.5pt; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 2.5pt double; text-align: left"><span style="-sec-ix-redline: true">$</span></td><td style="border-bottom: Black 2.5pt double; text-align: right"><span style="-sec-ix-redline: true">1,582,387</span></td><td style="padding-bottom: 2.5pt; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 2.5pt double; text-align: left"><span style="-sec-ix-redline: true">$</span></td><td style="border-bottom: Black 2.5pt double; text-align: right"><span style="-sec-ix-redline: true">11,507,653</span></td><td style="padding-bottom: 2.5pt; text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> </table> 808968 808968 808968 808968 808968 429021 4473861 1137663 889364 141145 141145 141145 435195 2885657 207944 207944 207944 207944 207944 718171 1757891 335933 335933 662350 487751 182415 1332516 298775 298775 124245 721795 3451633 2692802 1464717 1158057 1058057 1582387 11507653 <p id="xdx_803_eus-gaap--GoodwillDisclosureTextBlock_zlDI5k8QBCk2" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Note 7 – <span id="xdx_822_z8PFzwt54M11">Goodwill</span></b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0.5in; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Goodwill represents the difference between the purchase price and the estimated fair value of net assets acquired, when accounted for by the acquisition method of accounting. As of December 31, 2022, the goodwill balance relates to a business acquisition completed in 2015 and to the 2021 Acquired Companies, respectively. (See Note 5)</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 24pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The annual impairment assessment conducted during the fourth quarter of 2022 indicated that the fair value of the sensors reporting unit exceeded its respective carrying amount, while the fair value of the SaaS and the Company’s Drone reporting units were less than carrying value. The impairment assessment of the SaaS and the Company’s Drone reporting units considered lower than forecasted sales and profitability along with declining markets conditions, declining stock price and changes in our technologies. Accordingly, the Company recorded an impairment charge to SaaS and Drones these reporting units of $<span id="xdx_905_eus-gaap--GoodwillImpairmentLoss_c20221001__20221231__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__custom--SaaSMember_z7RaRhffFnLh" title="Goodwill impairment">29,032,294</span> and $<span id="xdx_909_eus-gaap--GoodwillImpairmentLoss_c20221001__20221231__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__custom--DronesMember_zaXrDXWRZRC" title="Goodwill impairment">12,655,577</span>, respectively during the fourth quarter ended December 31, 2022.</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p id="xdx_895_ecustom--ScheduleOfCarryingValueOfGoodwillForOurOperatingSegmentsTableTextBlock_zHeTJWLnZA31" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0.5in; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">As of December 31, 2022 and 2021, the change in the carrying value of goodwill for our operating segments (as defined in Note 17), are listed below:</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> <span id="xdx_8B5_zeZhXnm1asJ7" style="display: none">Schedule of Carrying Value of Goodwill for Our Operating Segments</span></span></span></p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td><span style="-sec-ix-redline: true"> </span></td><td style="font-weight: bold; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"><span style="-sec-ix-redline: true">Drones</span></td><td style="padding-bottom: 1.5pt; font-weight: bold"><span style="-sec-ix-redline: true"> </span></td><td style="font-weight: bold; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"><span style="-sec-ix-redline: true">Sensors</span></td><td style="padding-bottom: 1.5pt; font-weight: bold"><span style="-sec-ix-redline: true"> </span></td><td style="font-weight: bold; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"><span style="-sec-ix-redline: true">SaaS</span></td><td style="padding-bottom: 1.5pt; font-weight: bold"><span style="-sec-ix-redline: true"> </span></td><td style="font-weight: bold; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"><span style="-sec-ix-redline: true">Total</span></td><td style="padding-bottom: 1.5pt; font-weight: bold"><span style="-sec-ix-redline: true"> </span></td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 40%"><span style="-sec-ix-redline: true">Balance as of December 31, 2020</span></td><td style="width: 3%"><span style="-sec-ix-redline: true"> </span></td> <td style="width: 1%; text-align: left"><span style="-sec-ix-redline: true">$</span></td><td id="xdx_98E_eus-gaap--Goodwill_iS_c20210101__20211231__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__custom--DronesAndCustomManufacturingMember_zBnR8LGz3ick" style="width: 10%; text-align: right" title="Goodwill, beginning balance"><span style="-sec-ix-redline: true"><span style="-sec-ix-hidden: xdx2ixbrl3397">—</span></span></td><td style="width: 1%; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="width: 3%"><span style="-sec-ix-redline: true"> </span></td> <td style="width: 1%; text-align: left"><span style="-sec-ix-redline: true">$</span></td><td id="xdx_98F_eus-gaap--Goodwill_iS_c20210101__20211231__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__custom--SensorsMember_zDNU4WbCiiTa" style="width: 10%; text-align: right" title="Goodwill, beginning balance"><span style="-sec-ix-redline: true"><span style="-sec-ix-hidden: xdx2ixbrl3399">—</span></span></td><td style="width: 1%; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="width: 3%"><span style="-sec-ix-redline: true"> </span></td> <td style="width: 1%; text-align: left"><span style="-sec-ix-redline: true">$</span></td><td id="xdx_989_eus-gaap--Goodwill_iS_c20210101__20211231__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__custom--SaaSMember_zhXOjofziRgk" style="width: 10%; text-align: right" title="Goodwill, beginning balance"><span style="-sec-ix-redline: true">3,108,000</span></td><td style="width: 1%; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="width: 3%"><span style="-sec-ix-redline: true"> </span></td> <td style="width: 1%; text-align: left"><span style="-sec-ix-redline: true">$</span></td><td id="xdx_98B_eus-gaap--Goodwill_iS_c20210101__20211231_z1Zc3lpd6MS6" style="width: 10%; text-align: right" title="Goodwill, beginning balance"><span style="-sec-ix-redline: true">3,108,000</span></td><td style="width: 1%; text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> <tr style="vertical-align: bottom; background-color: White"> <td><span style="-sec-ix-redline: true">Acquisitions</span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td id="xdx_980_ecustom--GoodwillAcquisitions_c20210101__20211231__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__custom--DronesAndCustomManufacturingMember_zFlb9yiBxL7a" style="text-align: right" title="Acquisitions"><span style="-sec-ix-redline: true">12,655,577</span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td id="xdx_987_ecustom--GoodwillAcquisitions_c20210101__20211231__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__custom--SensorsMember_zNHBtGIZDcqd" style="text-align: right" title="Acquisitions"><span style="-sec-ix-redline: true">18,972,896</span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td id="xdx_98A_ecustom--GoodwillAcquisitions_c20210101__20211231__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__custom--SaaSMember_z3uYI1rmrvLb" style="text-align: right" title="Acquisitions"><span style="-sec-ix-redline: true">42,488,730</span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td id="xdx_987_ecustom--GoodwillAcquisitions_c20210101__20211231_zSilNi2TNTw8" style="text-align: right" title="Acquisitions"><span style="-sec-ix-redline: true">74,117,203</span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-bottom: 1.5pt"><span style="-sec-ix-redline: true">Impairment</span></td><td style="padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 1.5pt solid; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td id="xdx_985_eus-gaap--GoodwillImpairmentLoss_c20210101__20211231__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__custom--DronesAndCustomManufacturingMember_zmgO4vgRlDYe" style="border-bottom: Black 1.5pt solid; text-align: right" title="Goodwill impairment"><span style="-sec-ix-redline: true"><span style="-sec-ix-hidden: xdx2ixbrl3413">—</span></span></td><td style="padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 1.5pt solid; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td id="xdx_983_eus-gaap--GoodwillImpairmentLoss_c20210101__20211231__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__custom--SensorsMember_zUsZFjd0Cs36" style="border-bottom: Black 1.5pt solid; text-align: right" title="Goodwill impairment"><span style="-sec-ix-redline: true"><span style="-sec-ix-hidden: xdx2ixbrl3415">—</span></span></td><td style="padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 1.5pt solid; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td id="xdx_982_eus-gaap--GoodwillImpairmentLoss_iN_di_c20210101__20211231__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__custom--SaaSMember_zz5Mr5cPqG95" style="border-bottom: Black 1.5pt solid; text-align: right" title="Goodwill impairment"><span style="-sec-ix-redline: true">(12,357,921</span></td><td style="padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true">)</span></td><td style="padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 1.5pt solid; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td id="xdx_983_eus-gaap--GoodwillImpairmentLoss_iN_di_c20210101__20211231_z1z5deIH13r9" style="border-bottom: Black 1.5pt solid; text-align: right" title="Goodwill impairment"><span style="-sec-ix-redline: true">(12,357,921</span></td><td style="padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true">)</span></td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-bottom: 1.5pt"><span style="-sec-ix-redline: true">Balance as of December 31, 2021</span></td><td style="padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 1.5pt solid; text-align: left"><span style="-sec-ix-redline: true">$</span></td><td id="xdx_98B_eus-gaap--Goodwill_iS_c20220101__20221231__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__custom--DronesAndCustomManufacturingMember_zZ7F1mPVyGS4" style="border-bottom: Black 1.5pt solid; text-align: right" title="Goodwill, beginning balance"><span style="-sec-ix-redline: true">12,655,577</span></td><td style="padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 1.5pt solid; text-align: left"><span style="-sec-ix-redline: true">$</span></td><td id="xdx_987_eus-gaap--Goodwill_iS_c20220101__20221231__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__custom--SensorsMember_zIjKBPj4VtO3" style="border-bottom: Black 1.5pt solid; text-align: right" title="Goodwill, beginning balance"><span style="-sec-ix-redline: true">18,972,896</span></td><td style="padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 1.5pt solid; text-align: left"><span style="-sec-ix-redline: true">$</span></td><td id="xdx_98A_eus-gaap--Goodwill_iS_c20220101__20221231__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__custom--SaaSMember_ztg6JijJETKk" style="border-bottom: Black 1.5pt solid; text-align: right" title="Goodwill, beginning balance"><span style="-sec-ix-redline: true">33,238,809</span></td><td style="padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 1.5pt solid; text-align: left"><span style="-sec-ix-redline: true">$</span></td><td id="xdx_981_eus-gaap--Goodwill_iS_c20220101__20221231_zNcD8T2GOIW5" style="border-bottom: Black 1.5pt solid; text-align: right" title="Goodwill, beginning balance"><span style="-sec-ix-redline: true">64,867,282</span></td><td style="padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-bottom: 1.5pt"><span style="-sec-ix-redline: true">Impairment</span></td><td style="padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 1.5pt solid; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td id="xdx_98E_eus-gaap--GoodwillImpairmentLoss_iN_di_c20220101__20221231__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__custom--DronesAndCustomManufacturingMember_zTgGo6P997Bj" style="border-bottom: Black 1.5pt solid; text-align: right" title="Goodwill impairment"><span style="-sec-ix-redline: true">(12,655,577</span></td><td style="padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true">)</span></td><td style="padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 1.5pt solid; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td id="xdx_98C_eus-gaap--GoodwillImpairmentLoss_c20220101__20221231__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__custom--SensorsMember_zM7e9Ucau9A7" style="border-bottom: Black 1.5pt solid; text-align: right" title="Goodwill impairment"><span style="-sec-ix-redline: true"><span style="-sec-ix-hidden: xdx2ixbrl3431">—</span></span></td><td style="padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 1.5pt solid; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td id="xdx_98C_eus-gaap--GoodwillImpairmentLoss_iN_di_c20220101__20221231__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__custom--SaaSMember_zIKOxZu0g5T9" style="border-bottom: Black 1.5pt solid; text-align: right" title="Goodwill impairment"><span style="-sec-ix-redline: true">(29,032,294</span></td><td style="padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true">)</span></td><td style="padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 1.5pt solid; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td id="xdx_98D_eus-gaap--GoodwillImpairmentLoss_iN_di_c20220101__20221231_zMi7raisVdD8" style="border-bottom: Black 1.5pt solid; text-align: right" title="Goodwill impairment"><span style="-sec-ix-redline: true">(41,687,871</span></td><td style="padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true">)</span></td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-bottom: 1.5pt"><span style="-sec-ix-redline: true">Balance as of December 31, 2022</span></td><td style="padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 1.5pt solid; text-align: left"><span style="-sec-ix-redline: true">$</span></td><td id="xdx_982_eus-gaap--Goodwill_iE_c20220101__20221231__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__custom--DronesAndCustomManufacturingMember_zbGNDHgTEua2" style="border-bottom: Black 1.5pt solid; text-align: right" title="Goodwill, ending balance"><span style="-sec-ix-redline: true"><span style="-sec-ix-hidden: xdx2ixbrl3437">—</span></span></td><td style="padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 1.5pt solid; text-align: left"><span style="-sec-ix-redline: true">$</span></td><td id="xdx_982_eus-gaap--Goodwill_iE_c20220101__20221231__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__custom--SensorsMember_zHbxI2ryrXMe" style="border-bottom: Black 1.5pt solid; text-align: right" title="Goodwill, ending balance"><span style="-sec-ix-redline: true">18,972,896</span></td><td style="padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 1.5pt solid; text-align: left"><span style="-sec-ix-redline: true">$</span></td><td id="xdx_985_eus-gaap--Goodwill_iE_c20220101__20221231__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__custom--SaaSMember_zFk990Ut8nLb" style="border-bottom: Black 1.5pt solid; text-align: right" title="Goodwill, ending balance"><span style="-sec-ix-redline: true">4,206,515</span></td><td style="padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 1.5pt solid; text-align: left"><span style="-sec-ix-redline: true">$</span></td><td id="xdx_98C_eus-gaap--Goodwill_iE_c20220101__20221231_zrK70eMFwzX3" style="border-bottom: Black 1.5pt solid; text-align: right" title="Goodwill, ending balance"><span style="-sec-ix-redline: true">23,179,411</span></td><td style="padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> </table> <p id="xdx_8A2_zCyjyL92q6wl" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>AGEAGLE AERIAL SYSTEMS INC. AND SUBSIDIARIES </b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>NOTES TO CONSOLIDATED FINANCIAL STATEMENTS</b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>FOR THE YEARS ENDED DECEMBER 31, 2022 AND 2021</b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> 29032294 12655577 <p id="xdx_895_ecustom--ScheduleOfCarryingValueOfGoodwillForOurOperatingSegmentsTableTextBlock_zHeTJWLnZA31" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0.5in; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">As of December 31, 2022 and 2021, the change in the carrying value of goodwill for our operating segments (as defined in Note 17), are listed below:</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> <span id="xdx_8B5_zeZhXnm1asJ7" style="display: none">Schedule of Carrying Value of Goodwill for Our Operating Segments</span></span></span></p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td><span style="-sec-ix-redline: true"> </span></td><td style="font-weight: bold; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"><span style="-sec-ix-redline: true">Drones</span></td><td style="padding-bottom: 1.5pt; font-weight: bold"><span style="-sec-ix-redline: true"> </span></td><td style="font-weight: bold; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"><span style="-sec-ix-redline: true">Sensors</span></td><td style="padding-bottom: 1.5pt; font-weight: bold"><span style="-sec-ix-redline: true"> </span></td><td style="font-weight: bold; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"><span style="-sec-ix-redline: true">SaaS</span></td><td style="padding-bottom: 1.5pt; font-weight: bold"><span style="-sec-ix-redline: true"> </span></td><td style="font-weight: bold; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"><span style="-sec-ix-redline: true">Total</span></td><td style="padding-bottom: 1.5pt; font-weight: bold"><span style="-sec-ix-redline: true"> </span></td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 40%"><span style="-sec-ix-redline: true">Balance as of December 31, 2020</span></td><td style="width: 3%"><span style="-sec-ix-redline: true"> </span></td> <td style="width: 1%; text-align: left"><span style="-sec-ix-redline: true">$</span></td><td id="xdx_98E_eus-gaap--Goodwill_iS_c20210101__20211231__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__custom--DronesAndCustomManufacturingMember_zBnR8LGz3ick" style="width: 10%; text-align: right" title="Goodwill, beginning balance"><span style="-sec-ix-redline: true"><span style="-sec-ix-hidden: xdx2ixbrl3397">—</span></span></td><td style="width: 1%; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="width: 3%"><span style="-sec-ix-redline: true"> </span></td> <td style="width: 1%; text-align: left"><span style="-sec-ix-redline: true">$</span></td><td id="xdx_98F_eus-gaap--Goodwill_iS_c20210101__20211231__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__custom--SensorsMember_zDNU4WbCiiTa" style="width: 10%; text-align: right" title="Goodwill, beginning balance"><span style="-sec-ix-redline: true"><span style="-sec-ix-hidden: xdx2ixbrl3399">—</span></span></td><td style="width: 1%; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="width: 3%"><span style="-sec-ix-redline: true"> </span></td> <td style="width: 1%; text-align: left"><span style="-sec-ix-redline: true">$</span></td><td id="xdx_989_eus-gaap--Goodwill_iS_c20210101__20211231__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__custom--SaaSMember_zhXOjofziRgk" style="width: 10%; text-align: right" title="Goodwill, beginning balance"><span style="-sec-ix-redline: true">3,108,000</span></td><td style="width: 1%; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="width: 3%"><span style="-sec-ix-redline: true"> </span></td> <td style="width: 1%; text-align: left"><span style="-sec-ix-redline: true">$</span></td><td id="xdx_98B_eus-gaap--Goodwill_iS_c20210101__20211231_z1Zc3lpd6MS6" style="width: 10%; text-align: right" title="Goodwill, beginning balance"><span style="-sec-ix-redline: true">3,108,000</span></td><td style="width: 1%; text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> <tr style="vertical-align: bottom; background-color: White"> <td><span style="-sec-ix-redline: true">Acquisitions</span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td id="xdx_980_ecustom--GoodwillAcquisitions_c20210101__20211231__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__custom--DronesAndCustomManufacturingMember_zFlb9yiBxL7a" style="text-align: right" title="Acquisitions"><span style="-sec-ix-redline: true">12,655,577</span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td id="xdx_987_ecustom--GoodwillAcquisitions_c20210101__20211231__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__custom--SensorsMember_zNHBtGIZDcqd" style="text-align: right" title="Acquisitions"><span style="-sec-ix-redline: true">18,972,896</span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td id="xdx_98A_ecustom--GoodwillAcquisitions_c20210101__20211231__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__custom--SaaSMember_z3uYI1rmrvLb" style="text-align: right" title="Acquisitions"><span style="-sec-ix-redline: true">42,488,730</span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td id="xdx_987_ecustom--GoodwillAcquisitions_c20210101__20211231_zSilNi2TNTw8" style="text-align: right" title="Acquisitions"><span style="-sec-ix-redline: true">74,117,203</span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-bottom: 1.5pt"><span style="-sec-ix-redline: true">Impairment</span></td><td style="padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 1.5pt solid; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td id="xdx_985_eus-gaap--GoodwillImpairmentLoss_c20210101__20211231__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__custom--DronesAndCustomManufacturingMember_zmgO4vgRlDYe" style="border-bottom: Black 1.5pt solid; text-align: right" title="Goodwill impairment"><span style="-sec-ix-redline: true"><span style="-sec-ix-hidden: xdx2ixbrl3413">—</span></span></td><td style="padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 1.5pt solid; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td id="xdx_983_eus-gaap--GoodwillImpairmentLoss_c20210101__20211231__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__custom--SensorsMember_zUsZFjd0Cs36" style="border-bottom: Black 1.5pt solid; text-align: right" title="Goodwill impairment"><span style="-sec-ix-redline: true"><span style="-sec-ix-hidden: xdx2ixbrl3415">—</span></span></td><td style="padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 1.5pt solid; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td id="xdx_982_eus-gaap--GoodwillImpairmentLoss_iN_di_c20210101__20211231__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__custom--SaaSMember_zz5Mr5cPqG95" style="border-bottom: Black 1.5pt solid; text-align: right" title="Goodwill impairment"><span style="-sec-ix-redline: true">(12,357,921</span></td><td style="padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true">)</span></td><td style="padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 1.5pt solid; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td id="xdx_983_eus-gaap--GoodwillImpairmentLoss_iN_di_c20210101__20211231_z1z5deIH13r9" style="border-bottom: Black 1.5pt solid; text-align: right" title="Goodwill impairment"><span style="-sec-ix-redline: true">(12,357,921</span></td><td style="padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true">)</span></td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-bottom: 1.5pt"><span style="-sec-ix-redline: true">Balance as of December 31, 2021</span></td><td style="padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 1.5pt solid; text-align: left"><span style="-sec-ix-redline: true">$</span></td><td id="xdx_98B_eus-gaap--Goodwill_iS_c20220101__20221231__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__custom--DronesAndCustomManufacturingMember_zZ7F1mPVyGS4" style="border-bottom: Black 1.5pt solid; text-align: right" title="Goodwill, beginning balance"><span style="-sec-ix-redline: true">12,655,577</span></td><td style="padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 1.5pt solid; text-align: left"><span style="-sec-ix-redline: true">$</span></td><td id="xdx_987_eus-gaap--Goodwill_iS_c20220101__20221231__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__custom--SensorsMember_zIjKBPj4VtO3" style="border-bottom: Black 1.5pt solid; text-align: right" title="Goodwill, beginning balance"><span style="-sec-ix-redline: true">18,972,896</span></td><td style="padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 1.5pt solid; text-align: left"><span style="-sec-ix-redline: true">$</span></td><td id="xdx_98A_eus-gaap--Goodwill_iS_c20220101__20221231__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__custom--SaaSMember_ztg6JijJETKk" style="border-bottom: Black 1.5pt solid; text-align: right" title="Goodwill, beginning balance"><span style="-sec-ix-redline: true">33,238,809</span></td><td style="padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 1.5pt solid; text-align: left"><span style="-sec-ix-redline: true">$</span></td><td id="xdx_981_eus-gaap--Goodwill_iS_c20220101__20221231_zNcD8T2GOIW5" style="border-bottom: Black 1.5pt solid; text-align: right" title="Goodwill, beginning balance"><span style="-sec-ix-redline: true">64,867,282</span></td><td style="padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-bottom: 1.5pt"><span style="-sec-ix-redline: true">Impairment</span></td><td style="padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 1.5pt solid; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td id="xdx_98E_eus-gaap--GoodwillImpairmentLoss_iN_di_c20220101__20221231__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__custom--DronesAndCustomManufacturingMember_zTgGo6P997Bj" style="border-bottom: Black 1.5pt solid; text-align: right" title="Goodwill impairment"><span style="-sec-ix-redline: true">(12,655,577</span></td><td style="padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true">)</span></td><td style="padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 1.5pt solid; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td id="xdx_98C_eus-gaap--GoodwillImpairmentLoss_c20220101__20221231__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__custom--SensorsMember_zM7e9Ucau9A7" style="border-bottom: Black 1.5pt solid; text-align: right" title="Goodwill impairment"><span style="-sec-ix-redline: true"><span style="-sec-ix-hidden: xdx2ixbrl3431">—</span></span></td><td style="padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 1.5pt solid; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td id="xdx_98C_eus-gaap--GoodwillImpairmentLoss_iN_di_c20220101__20221231__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__custom--SaaSMember_zIKOxZu0g5T9" style="border-bottom: Black 1.5pt solid; text-align: right" title="Goodwill impairment"><span style="-sec-ix-redline: true">(29,032,294</span></td><td style="padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true">)</span></td><td style="padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 1.5pt solid; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td id="xdx_98D_eus-gaap--GoodwillImpairmentLoss_iN_di_c20220101__20221231_zMi7raisVdD8" style="border-bottom: Black 1.5pt solid; text-align: right" title="Goodwill impairment"><span style="-sec-ix-redline: true">(41,687,871</span></td><td style="padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true">)</span></td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-bottom: 1.5pt"><span style="-sec-ix-redline: true">Balance as of December 31, 2022</span></td><td style="padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 1.5pt solid; text-align: left"><span style="-sec-ix-redline: true">$</span></td><td id="xdx_982_eus-gaap--Goodwill_iE_c20220101__20221231__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__custom--DronesAndCustomManufacturingMember_zbGNDHgTEua2" style="border-bottom: Black 1.5pt solid; text-align: right" title="Goodwill, ending balance"><span style="-sec-ix-redline: true"><span style="-sec-ix-hidden: xdx2ixbrl3437">—</span></span></td><td style="padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 1.5pt solid; text-align: left"><span style="-sec-ix-redline: true">$</span></td><td id="xdx_982_eus-gaap--Goodwill_iE_c20220101__20221231__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__custom--SensorsMember_zHbxI2ryrXMe" style="border-bottom: Black 1.5pt solid; text-align: right" title="Goodwill, ending balance"><span style="-sec-ix-redline: true">18,972,896</span></td><td style="padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 1.5pt solid; text-align: left"><span style="-sec-ix-redline: true">$</span></td><td id="xdx_985_eus-gaap--Goodwill_iE_c20220101__20221231__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__custom--SaaSMember_zFk990Ut8nLb" style="border-bottom: Black 1.5pt solid; text-align: right" title="Goodwill, ending balance"><span style="-sec-ix-redline: true">4,206,515</span></td><td style="padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 1.5pt solid; text-align: left"><span style="-sec-ix-redline: true">$</span></td><td id="xdx_98C_eus-gaap--Goodwill_iE_c20220101__20221231_zrK70eMFwzX3" style="border-bottom: Black 1.5pt solid; text-align: right" title="Goodwill, ending balance"><span style="-sec-ix-redline: true">23,179,411</span></td><td style="padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> </table> 3108000 3108000 12655577 18972896 42488730 74117203 12357921 12357921 12655577 18972896 33238809 64867282 12655577 29032294 41687871 18972896 4206515 23179411 <p id="xdx_80E_ecustom--CovidLoanDisclosuretextBlock_zyqIXM8RQGXd" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Note 8 – <span>COVID Loan</span></b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><span id="xdx_828_zNrslkJIHEib" style="display: none">COVID Loans</span> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0.5in; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">On March 27, 2020, the Coronavirus Aid, Relief and Economic Security Act (“CARES Act”) was enacted, which included amongst its many provisions, the creation of the Paycheck Protection Program (“PPP”). As part of the PPP, qualifying businesses were eligible to receive Small Business Administration (“SBA”) loans for use by such businesses for funding payroll, rent and utilities during a designed twenty-four week period through October 21, 2020 (“PPP Loan”). PPP Loans are unsecured, nonrecourse, accrue interest at a rate of one percent per annum, and mature on May 6, 2022. A portion or all of a PPP Loan is forgivable to the extent that an eligible business meets its obligations under the PPP. Additionally, any amounts owed, including unforgiven amounts under the PPP, are payable over two years, though may be extended up to five years upon approval by the SBA.</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0.5in; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">On May 6, 2020, AgEagle received a PPP Loan in the amount of $<span id="xdx_902_ecustom--PppLoanAmount_c20200506__20200506_zBFDkNCTxSI9" title="PPP loan amount">108,532</span>. During the quarter ended June 30, 2021, the outstanding principal and accrued interest under the PPP Loan were forgiven by the SBA.</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0.5in; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">In connection with the senseFly Acquisition, the Company assumed the obligations for two COVID Loans originally made by the SBA to senseFly S.A. on July 27, 2020. As of senseFly Acquisition Date, the fair value of the COVID Loan was $<span id="xdx_901_eus-gaap--BusinessCombinationRecognizedIdentifiableAssetsAcquiredAndLiabilitiesAssumedFinancialLiabilities_iI_c20221231__us-gaap--BusinessAcquisitionAxis__custom--SenseflyMember_zq3XH3vPWrKl" title="Fair value of the covid loan">1,440,046</span> (“senseFly COVID Loans”). During the years ended December 31, 2022 and 2021, senseFly S.A. made the required payments on the senseFly COVID Loans, including principal and accrued interest, aggregating approximately $<span id="xdx_90A_eus-gaap--RepaymentsOfDebt_c20220101__20221231__us-gaap--DebtInstrumentAxis__custom--SenseflyMember_zuH1drwvrsk6" title="Payment of principal and interest">345,484</span> and $<span id="xdx_903_eus-gaap--RepaymentsOfDebt_c20210101__20211231__us-gaap--DebtInstrumentAxis__custom--SenseflyMember_zwDhKD8Kldpc" title="Payment of principal and interest">356,000</span>, respectively. As of December 31, 2022, the Company’s outstanding obligations under the senseFly COVID Loans are $<span id="xdx_907_eus-gaap--DebtInstrumentCarryingAmount_iI_c20221231__us-gaap--DebtInstrumentAxis__custom--SenseflyCovidLoansMember_zIR3bi7fAgGc" title="Outstanding obligations under the covid loans">893,269</span>.</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Note 8 – COVID Loan-Continued</b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p id="xdx_898_eus-gaap--ScheduleOfMaturitiesOfLongTermDebtTableTextBlock_zQI4bt7PGeG8" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0.5in; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">As of December 31, 2022, scheduled principal payments due under the senseFly COVID Loans are as follows:</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> <span id="xdx_8B8_znYkgdU3pHae" style="display: none">Schedule of Maturity of SenseFly Covid Loans</span></span></span></p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="display: none; vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-weight: bold"> </td><td> </td> <td colspan="2" id="xdx_49D_20221231__us-gaap--DebtInstrumentAxis__custom--SenseflyCovidLoansMember_zlDXFqY1Gqy2"> </td><td> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-weight: bold"><span style="-sec-ix-redline: true">Year ending December 31,</span></td><td><span style="-sec-ix-redline: true"> </span></td> <td colspan="2"><span style="-sec-ix-redline: true"> </span></td><td><span style="-sec-ix-redline: true"> </span></td></tr> <tr id="xdx_409_eus-gaap--LongTermDebtMaturitiesRepaymentsOfPrincipalRemainderOfFiscalYear_iI_pp0p0_zKLnYy9uXhW4" style="vertical-align: bottom; background-color: White"> <td style="width: 80%; text-align: left"><span style="-sec-ix-redline: true">2023</span></td><td style="width: 2%"><span style="-sec-ix-redline: true"> </span></td> <td style="width: 1%; text-align: left"><span style="-sec-ix-redline: true">$</span></td><td style="width: 16%; text-align: right"><span style="-sec-ix-redline: true">446,456</span></td><td style="width: 1%; text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> <tr id="xdx_40D_eus-gaap--LongTermDebtMaturitiesRepaymentsOfPrincipalInNextTwelveMonths_iI_pp0p0_z4KBayoiD44c" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left"><span style="-sec-ix-redline: true">2024</span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true">89,363</span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> <tr id="xdx_40A_eus-gaap--LongTermDebtMaturitiesRepaymentsOfPrincipalInYearTwo_iI_pp0p0_zlFgC8aIdHOd" style="vertical-align: bottom; background-color: White"> <td style="text-align: left"><span style="-sec-ix-redline: true">2025</span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true">89,363</span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> <tr id="xdx_40D_eus-gaap--LongTermDebtMaturitiesRepaymentsOfPrincipalInYearThree_iI_pp0p0_zlgxrBReEEW9" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left"><span style="-sec-ix-redline: true">2026</span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true">89,363</span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> <tr id="xdx_409_eus-gaap--LongTermDebtMaturitiesRepaymentsOfPrincipalInYearFour_iI_pp0p0_zX9ztht7rlxb" style="vertical-align: bottom; background-color: White"> <td style="text-align: left"><span style="-sec-ix-redline: true">2027</span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true">89,363</span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> <tr id="xdx_402_eus-gaap--LongTermDebtMaturitiesRepaymentsOfPrincipalInYearFive_iI_pp0p0_zcSXdAVe1wTd" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-bottom: 1.5pt"><span style="-sec-ix-redline: true">Thereafter</span></td><td style="padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 1.5pt solid; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="border-bottom: Black 1.5pt solid; text-align: right"><span style="-sec-ix-redline: true">89,361</span></td><td style="padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> <tr id="xdx_407_eus-gaap--LongTermDebt_iI_pp0p0_zOIMV16ssZyc" style="vertical-align: bottom; background-color: White"> <td style="padding-bottom: 2.5pt"><span style="-sec-ix-redline: true">Total</span></td><td style="padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 2.5pt double; text-align: left"><span style="-sec-ix-redline: true">$</span></td><td style="border-bottom: Black 2.5pt double; text-align: right"><span style="-sec-ix-redline: true">893,269</span></td><td style="padding-bottom: 2.5pt; text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> </table> <p id="xdx_8A9_z7Ty7rFvFxo1" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>AGEAGLE AERIAL SYSTEMS INC. AND SUBSIDIARIES </b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>NOTES TO CONSOLIDATED FINANCIAL STATEMENTS</b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>FOR THE YEARS ENDED DECEMBER 31, 2022 AND 2021</b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> 108532 1440046 345484 356000 893269 <p id="xdx_898_eus-gaap--ScheduleOfMaturitiesOfLongTermDebtTableTextBlock_zQI4bt7PGeG8" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0.5in; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">As of December 31, 2022, scheduled principal payments due under the senseFly COVID Loans are as follows:</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> <span id="xdx_8B8_znYkgdU3pHae" style="display: none">Schedule of Maturity of SenseFly Covid Loans</span></span></span></p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="display: none; vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-weight: bold"> </td><td> </td> <td colspan="2" id="xdx_49D_20221231__us-gaap--DebtInstrumentAxis__custom--SenseflyCovidLoansMember_zlDXFqY1Gqy2"> </td><td> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-weight: bold"><span style="-sec-ix-redline: true">Year ending December 31,</span></td><td><span style="-sec-ix-redline: true"> </span></td> <td colspan="2"><span style="-sec-ix-redline: true"> </span></td><td><span style="-sec-ix-redline: true"> </span></td></tr> <tr id="xdx_409_eus-gaap--LongTermDebtMaturitiesRepaymentsOfPrincipalRemainderOfFiscalYear_iI_pp0p0_zKLnYy9uXhW4" style="vertical-align: bottom; background-color: White"> <td style="width: 80%; text-align: left"><span style="-sec-ix-redline: true">2023</span></td><td style="width: 2%"><span style="-sec-ix-redline: true"> </span></td> <td style="width: 1%; text-align: left"><span style="-sec-ix-redline: true">$</span></td><td style="width: 16%; text-align: right"><span style="-sec-ix-redline: true">446,456</span></td><td style="width: 1%; text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> <tr id="xdx_40D_eus-gaap--LongTermDebtMaturitiesRepaymentsOfPrincipalInNextTwelveMonths_iI_pp0p0_z4KBayoiD44c" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left"><span style="-sec-ix-redline: true">2024</span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true">89,363</span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> <tr id="xdx_40A_eus-gaap--LongTermDebtMaturitiesRepaymentsOfPrincipalInYearTwo_iI_pp0p0_zlFgC8aIdHOd" style="vertical-align: bottom; background-color: White"> <td style="text-align: left"><span style="-sec-ix-redline: true">2025</span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true">89,363</span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> <tr id="xdx_40D_eus-gaap--LongTermDebtMaturitiesRepaymentsOfPrincipalInYearThree_iI_pp0p0_zlgxrBReEEW9" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left"><span style="-sec-ix-redline: true">2026</span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true">89,363</span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> <tr id="xdx_409_eus-gaap--LongTermDebtMaturitiesRepaymentsOfPrincipalInYearFour_iI_pp0p0_zX9ztht7rlxb" style="vertical-align: bottom; background-color: White"> <td style="text-align: left"><span style="-sec-ix-redline: true">2027</span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true">89,363</span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> <tr id="xdx_402_eus-gaap--LongTermDebtMaturitiesRepaymentsOfPrincipalInYearFive_iI_pp0p0_zcSXdAVe1wTd" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-bottom: 1.5pt"><span style="-sec-ix-redline: true">Thereafter</span></td><td style="padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 1.5pt solid; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="border-bottom: Black 1.5pt solid; text-align: right"><span style="-sec-ix-redline: true">89,361</span></td><td style="padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> <tr id="xdx_407_eus-gaap--LongTermDebt_iI_pp0p0_zOIMV16ssZyc" style="vertical-align: bottom; background-color: White"> <td style="padding-bottom: 2.5pt"><span style="-sec-ix-redline: true">Total</span></td><td style="padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 2.5pt double; text-align: left"><span style="-sec-ix-redline: true">$</span></td><td style="border-bottom: Black 2.5pt double; text-align: right"><span style="-sec-ix-redline: true">893,269</span></td><td style="padding-bottom: 2.5pt; text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> </table> 446456 89363 89363 89363 89363 89361 893269 <p id="xdx_808_eus-gaap--ShortTermDebtTextBlock_zqJjmHuf6R5a" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Note 9 – <span>Promissory Note Issuance</span></b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span id="xdx_82F_z1bu48LmGYS1" style="display: none">Promissory Note and Warrant</span><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0.5in; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">On December 6, 2022, the Company entered into a Securities Purchase Agreement (the “Promissory Note Purchase Agreement”) with an institutional investor (the “Investor”) which is an existing shareholder of the Company. Pursuant to the terms of the Promissory Note Purchase Agreement, the Company has agreed to issue to the Investor (i) an 8% original issue discount promissory note (the “Note”) in the aggregate principal amount of $<span id="xdx_908_eus-gaap--DebtInstrumentFaceAmount_iI_c20221206_zzPBAAtpkt2d" title="Aggregate principal amount">3,500,000</span>, and (ii) a common stock purchase warrant (the “Promissory Note Warrant”) to purchase up to <span id="xdx_90F_eus-gaap--ClassOfWarrantOrRightNumberOfSecuritiesCalledByWarrantsOrRights_iI_c20221206_zpJ17ormUap" title="Number of warrant to purchase">5,000,000</span> shares of the Company’s Common Stock (the “Shares”) at an exercise price of $<span id="xdx_904_eus-gaap--ClassOfWarrantOrRightExercisePriceOfWarrantsOrRights1_iI_pid_c20221206_z7BPM4oSyTAk" title="Exercise price">0.44</span> per share, subject to standard anti-dilution adjustments. The Note is an unsecured obligation of the Company. It has an original issue discount of <span id="xdx_90B_ecustom--DebtInstrumentOriginalIssueDiscountPercent_pid_dp_uPure_c20221206__20221206_zyywgoHcJtD8" title="Original issue discount percent">4</span>% and bears interest at <span id="xdx_90B_eus-gaap--DebtInstrumentInterestRateStatedPercentage_iI_pid_dp_uPure_c20221206_z7keCXhIf9T1" title="Interest rate">8</span>% per annum. The Company received net proceeds of $<span id="xdx_908_eus-gaap--ProceedsFromNotesPayable_c20221206__20221206_z8UGErCprB61" title="Net proceeds">3,285,000</span> net of the original issue discount of $<span id="xdx_908_eus-gaap--InvestmentIncomeAmortizationOfDiscount_c20221206__20221206_z8DxS3v5EhW8" title="Original issue discount">140,000</span> and $<span id="xdx_904_eus-gaap--DeferredFinanceCostsNet_iI_c20221206_zMi8MWACWTdh" title="Issuance costs">75,000</span> of issuance costs. The Promissory Note Warrant is not exercisable for the first six months after issuance and has a five-year term from the initial exercise date of June 6, 2023. If at the time of the exercise, there is no effective registration statement registering, or the prospectus contained therein, is not available for the issuance of the Shares, then the Promissory Note Warrant may be exercised, in whole or in part, by means of a “cashless exercise.” The Shares issuable to the Investor upon exercise of the Promissory Note Warrant will be issued in reliance upon the exemption from registration provided by Section 4(a)(2) of the Securities Act of 1933, as amended (the “Securities Act”), and Rule 506 promulgated thereunder. Neither the Shares nor the Promissory Note Warrant has been registered under the Securities Act, or applicable state securities laws, and none may be offered or sold in the United States absent registration under the Securities Act or an exemption from such registration requirements.</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0.5in; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The Company determined the estimated fair value of the common stock warrants issued with the Note to be $<span id="xdx_904_eus-gaap--FairValueAdjustmentOfWarrants_c20220101__20221231_zY2Ljp8hflX8" title="Estimated fair value of common stock warrants issued with the note">1,847,200</span> using a Black-Scholes pricing model. In accordance with ASC <i>470-20 Debt</i>, the Company recorded a discount of $<span id="xdx_901_eus-gaap--InvestmentIncomeAmortizationOfDiscount_c20220101__20221231_z5UkYjjoTme9" title="Debt instrument discount on the note">1,182,349</span> on the Note based on the relative fair value of the warrants and total proceeds. At Note issuance, the Company recorded a total discount on the debt of $<span id="xdx_900_ecustom--DebtInstrumentDiscountIncludingFairValueOfWarrants_c20220101__20221231_zwP8zFwl3Aul" title="Total discount comprised of the fair value of warrants">1,397,350</span> comprised of the relative fair value of the warrants, the original issue discount, and the issuance costs. The aggregate discount will be amortized into interest expense over the approximate two-year term of the Note.</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0.5in; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">During the year ended December 31, 2022, the Company recognized $<span id="xdx_909_ecustom--InterestExpenseOnDebt_c20220101__20221231_zLqKxjheds1b" title="Interest expense">46,270</span> of interest expense related to the amortization of the discounts which has been included in interest expense on the consolidated statements of operations. As of December 31, 2022, the unamortized discount is $<span id="xdx_909_eus-gaap--DebtInstrumentUnamortizedDiscountCurrent_iI_c20221231_z05nJcBG9MZ7" title="Unamortized discounts">1,351,080</span>. The Company used the following assumptions in determining the fair value of the warrants: expected term of five years, volatility rate of <span id="xdx_909_eus-gaap--LiabilityForFuturePolicyBenefitsInterestRate_iI_pid_dp_uPure_c20221231_zwko5MhZrfSe" title="Volatility rate">135.8</span>%, risk free rate of <span id="xdx_901_eus-gaap--ShareBasedGoodsAndNonemployeeServicesTransactionValuationMethodRiskFreeInterestRate_pid_dp_uPure_c20220101__20221231_z00vZaynBPq7" title="Risk free intrest rate">3.73</span>%, and dividend rate of <span id="xdx_908_eus-gaap--PreferredStockDividendRatePercentage_pip2_dp_uPure_c20220101__20221231_zCaNYY5EOAZ9" title="Dividend rate">0</span>%.</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0.5in; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Beginning June 1, 2023, and on the first business day of each month thereafter, the Company shall pay 1/20^th of the original principal amount of the Note plus any accrued but unpaid interest, with any remaining principal plus accrued interest payable in full upon the maturity date of December 31, 2024 or the occurrence of an Event of Default (as defined in the Note). In addition, to the extent the Company raises any equity capital (by private placement, public offering or otherwise), the Company shall utilize 50% of the net proceeds from such equity financing to prepay the Note, within two business days of the Company’s receipt of such funds. In the event such equity financing is provided by the Investor, pursuant to the terms of that certain Securities Purchase Agreement, dated as June 26, 2022, or otherwise (an “Additional Investment”), the Investor shall agree to accept 50% less warrant coverage in connection with such Additional Investment, up to $<span id="xdx_901_eus-gaap--InvestmentsInAndAdvancesToAffiliatesAtFairValueGrossAdditions_c20220626__20220626_z65v5dk6HYuk" title="Additional investment">3,300,000</span> of such Additional Investment.</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>AGEAGLE AERIAL SYSTEMS INC. AND SUBSIDIARIES </b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>NOTES TO CONSOLIDATED FINANCIAL STATEMENTS</b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>FOR THE YEARS ENDED DECEMBER 31, 2022 AND 2021</b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Note 9 – Promissory Note Issuance-Continued</b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p id="xdx_891_ecustom--ScheduleOfAmortizationOfTheDiscountTableTextBlock_zikAQOde5e9i" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0.5in; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">As of December 31, 2022, scheduled principal payments due under the Note and amortization of the discount are as follows:</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> <span id="xdx_8BA_zU2wKcPGL84c" style="display: none">Schedule of Amortization of the Discount</span></span></span></p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"><span style="-sec-ix-redline: true">Year Ending December 31,</span></td><td style="font-weight: bold; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"><span style="-sec-ix-redline: true">Principal Payments</span></td><td style="padding-bottom: 1.5pt; font-weight: bold"><span style="-sec-ix-redline: true"> </span></td><td style="font-weight: bold; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"><span style="-sec-ix-redline: true">Discount Amortization</span></td><td style="padding-bottom: 1.5pt; font-weight: bold"><span style="-sec-ix-redline: true"> </span></td><td style="font-weight: bold; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"><span style="-sec-ix-redline: true">Balance, Net of Discount</span></td><td style="padding-bottom: 1.5pt; font-weight: bold"><span style="-sec-ix-redline: true"> </span></td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 52%; text-align: left"><span style="-sec-ix-redline: true">2023</span></td><td style="width: 2%"><span style="-sec-ix-redline: true"> </span></td> <td style="width: 1%; text-align: left"><span style="-sec-ix-redline: true">$</span></td><td id="xdx_989_eus-gaap--DebtInstrumentAnnualPrincipalPayment_iI_c20221231__us-gaap--AwardDateAxis__custom--TwoThousandTwentyThreeMember_zW6fNa5jeifh" style="width: 12%; text-align: right" title="Principal payments"><span style="-sec-ix-redline: true">962,921</span></td><td style="width: 1%; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="width: 2%"><span style="-sec-ix-redline: true"> </span></td> <td style="width: 1%; text-align: left"><span style="-sec-ix-redline: true">$</span></td><td id="xdx_985_eus-gaap--DebtInstrumentUnamortizedDiscount_iI_c20221231__us-gaap--AwardDateAxis__custom--TwoThousandTwentyThreeMember_z8rEFRGJGgRe" style="width: 12%; text-align: right" title="Discount amortization"><span style="-sec-ix-redline: true">675,540</span></td><td style="width: 1%; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="width: 2%"><span style="-sec-ix-redline: true"> </span></td> <td style="width: 1%; text-align: left"><span style="-sec-ix-redline: true">$</span></td><td id="xdx_986_eus-gaap--CompensatingBalanceAmount_iI_c20221231__us-gaap--AwardDateAxis__custom--TwoThousandTwentyThreeMember_zIh04weYArjj" style="width: 12%; text-align: right" title="Balance, net of discount"><span style="-sec-ix-redline: true">287,381</span></td><td style="width: 1%; text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true">2024</span></td><td style="padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 1.5pt solid; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td id="xdx_98E_eus-gaap--DebtInstrumentAnnualPrincipalPayment_iI_c20221231__us-gaap--AwardDateAxis__custom--TwoThousandTwentyFourMember_zX0oOgiqUQy2" style="border-bottom: Black 1.5pt solid; text-align: right" title="Principal payments"><span style="-sec-ix-redline: true">2,537,079</span></td><td style="padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 1.5pt solid; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td id="xdx_98E_eus-gaap--DebtInstrumentUnamortizedDiscount_iI_c20221231__us-gaap--AwardDateAxis__custom--TwoThousandTwentyFourMember_zUDdlmMcITLc" style="border-bottom: Black 1.5pt solid; text-align: right" title="Discount amortization"><span style="-sec-ix-redline: true">675,540</span></td><td style="padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 1.5pt solid; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td id="xdx_983_eus-gaap--CompensatingBalanceAmount_iI_c20221231__us-gaap--AwardDateAxis__custom--TwoThousandTwentyFourMember_zKkpHAp1jpRa" style="border-bottom: Black 1.5pt solid; text-align: right" title="Balance, net of discount"><span style="-sec-ix-redline: true">1,861,539</span></td><td style="padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"> </span></td><td style="padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 2.5pt double; text-align: left"><span style="-sec-ix-redline: true">$</span></td><td id="xdx_988_eus-gaap--DebtInstrumentAnnualPrincipalPayment_iI_c20221231_zciSkKlclWt8" style="border-bottom: Black 2.5pt double; text-align: right" title="Principal payments"><span style="-sec-ix-redline: true">3,500,000</span></td><td style="padding-bottom: 2.5pt; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 2.5pt double; text-align: left"><span style="-sec-ix-redline: true">$</span></td><td id="xdx_98A_eus-gaap--DebtInstrumentUnamortizedDiscount_iI_c20221231_zFfnhI1wr3pc" style="border-bottom: Black 2.5pt double; text-align: right" title="Discount amortization"><span style="-sec-ix-redline: true">1,351,080</span></td><td style="padding-bottom: 2.5pt; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 2.5pt double; text-align: left"><span style="-sec-ix-redline: true">$</span></td><td id="xdx_98A_eus-gaap--CompensatingBalanceAmount_iI_c20221231_z6BR4JC8dATl" style="border-bottom: Black 2.5pt double; text-align: right" title="Balance, net of discount"><span style="-sec-ix-redline: true">2,148,920</span></td><td style="padding-bottom: 2.5pt; text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> </table> <p id="xdx_8AE_zVn2FVEkqDFk" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> 3500000 5000000 0.44 0.04 0.08 3285000 140000 75000 1847200 1182349 1397350 46270 1351080 1.358 0.0373 0 3300000 <p id="xdx_891_ecustom--ScheduleOfAmortizationOfTheDiscountTableTextBlock_zikAQOde5e9i" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0.5in; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">As of December 31, 2022, scheduled principal payments due under the Note and amortization of the discount are as follows:</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> <span id="xdx_8BA_zU2wKcPGL84c" style="display: none">Schedule of Amortization of the Discount</span></span></span></p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"><span style="-sec-ix-redline: true">Year Ending December 31,</span></td><td style="font-weight: bold; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"><span style="-sec-ix-redline: true">Principal Payments</span></td><td style="padding-bottom: 1.5pt; font-weight: bold"><span style="-sec-ix-redline: true"> </span></td><td style="font-weight: bold; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"><span style="-sec-ix-redline: true">Discount Amortization</span></td><td style="padding-bottom: 1.5pt; font-weight: bold"><span style="-sec-ix-redline: true"> </span></td><td style="font-weight: bold; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"><span style="-sec-ix-redline: true">Balance, Net of Discount</span></td><td style="padding-bottom: 1.5pt; font-weight: bold"><span style="-sec-ix-redline: true"> </span></td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 52%; text-align: left"><span style="-sec-ix-redline: true">2023</span></td><td style="width: 2%"><span style="-sec-ix-redline: true"> </span></td> <td style="width: 1%; text-align: left"><span style="-sec-ix-redline: true">$</span></td><td id="xdx_989_eus-gaap--DebtInstrumentAnnualPrincipalPayment_iI_c20221231__us-gaap--AwardDateAxis__custom--TwoThousandTwentyThreeMember_zW6fNa5jeifh" style="width: 12%; text-align: right" title="Principal payments"><span style="-sec-ix-redline: true">962,921</span></td><td style="width: 1%; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="width: 2%"><span style="-sec-ix-redline: true"> </span></td> <td style="width: 1%; text-align: left"><span style="-sec-ix-redline: true">$</span></td><td id="xdx_985_eus-gaap--DebtInstrumentUnamortizedDiscount_iI_c20221231__us-gaap--AwardDateAxis__custom--TwoThousandTwentyThreeMember_z8rEFRGJGgRe" style="width: 12%; text-align: right" title="Discount amortization"><span style="-sec-ix-redline: true">675,540</span></td><td style="width: 1%; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="width: 2%"><span style="-sec-ix-redline: true"> </span></td> <td style="width: 1%; text-align: left"><span style="-sec-ix-redline: true">$</span></td><td id="xdx_986_eus-gaap--CompensatingBalanceAmount_iI_c20221231__us-gaap--AwardDateAxis__custom--TwoThousandTwentyThreeMember_zIh04weYArjj" style="width: 12%; text-align: right" title="Balance, net of discount"><span style="-sec-ix-redline: true">287,381</span></td><td style="width: 1%; text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true">2024</span></td><td style="padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 1.5pt solid; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td id="xdx_98E_eus-gaap--DebtInstrumentAnnualPrincipalPayment_iI_c20221231__us-gaap--AwardDateAxis__custom--TwoThousandTwentyFourMember_zX0oOgiqUQy2" style="border-bottom: Black 1.5pt solid; text-align: right" title="Principal payments"><span style="-sec-ix-redline: true">2,537,079</span></td><td style="padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 1.5pt solid; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td id="xdx_98E_eus-gaap--DebtInstrumentUnamortizedDiscount_iI_c20221231__us-gaap--AwardDateAxis__custom--TwoThousandTwentyFourMember_zUDdlmMcITLc" style="border-bottom: Black 1.5pt solid; text-align: right" title="Discount amortization"><span style="-sec-ix-redline: true">675,540</span></td><td style="padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 1.5pt solid; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td id="xdx_983_eus-gaap--CompensatingBalanceAmount_iI_c20221231__us-gaap--AwardDateAxis__custom--TwoThousandTwentyFourMember_zKkpHAp1jpRa" style="border-bottom: Black 1.5pt solid; text-align: right" title="Balance, net of discount"><span style="-sec-ix-redline: true">1,861,539</span></td><td style="padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"> </span></td><td style="padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 2.5pt double; text-align: left"><span style="-sec-ix-redline: true">$</span></td><td id="xdx_988_eus-gaap--DebtInstrumentAnnualPrincipalPayment_iI_c20221231_zciSkKlclWt8" style="border-bottom: Black 2.5pt double; text-align: right" title="Principal payments"><span style="-sec-ix-redline: true">3,500,000</span></td><td style="padding-bottom: 2.5pt; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 2.5pt double; text-align: left"><span style="-sec-ix-redline: true">$</span></td><td id="xdx_98A_eus-gaap--DebtInstrumentUnamortizedDiscount_iI_c20221231_zFfnhI1wr3pc" style="border-bottom: Black 2.5pt double; text-align: right" title="Discount amortization"><span style="-sec-ix-redline: true">1,351,080</span></td><td style="padding-bottom: 2.5pt; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 2.5pt double; text-align: left"><span style="-sec-ix-redline: true">$</span></td><td id="xdx_98A_eus-gaap--CompensatingBalanceAmount_iI_c20221231_z6BR4JC8dATl" style="border-bottom: Black 2.5pt double; text-align: right" title="Balance, net of discount"><span style="-sec-ix-redline: true">2,148,920</span></td><td style="padding-bottom: 2.5pt; text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> </table> 962921 675540 287381 2537079 675540 1861539 3500000 1351080 2148920 <p id="xdx_803_eus-gaap--StockholdersEquityNoteDisclosureTextBlock_zsbhtVVjnh48" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Note 10 – <span>Equity</span></b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> <span id="xdx_82A_zDKvmpRHvaMf" style="display: none">Stockholders’ Equity</span></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b> Capital Stock Issuances</b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i>Preferred Series F Convertible Stock</i></b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0.5in; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">On June 26, 2022 (the “Series F Closing Date”), the Company entered into a Securities Purchase Agreement (the “Series F Agreement”) with Alpha Capital Anstalt (“Alpha”). Pursuant to the terms of the Series F Agreement, the Board of Directors of the Company (the “Board”) designated a new series of Preferred Stock, the Series F 5% Preferred Convertible Stock (“Series F”), and authorized the sale and issuance of up to <span class="xdx_phnt_RGlzY2xvc3VyZSAtIFN0b2NraG9sZGVyc5IgRXF1aXR5IChEZXRhaWxzIE5hcnJhdGl2ZSAxKQA_" id="xdx_906_eus-gaap--PreferredStockSharesAuthorized_iI_c20220626__us-gaap--TypeOfArrangementAxis__custom--SeriesFAgreementMember__us-gaap--StatementClassOfStockAxis__custom--PreferredSeriesFConvertibleStockMember_zxwZpCW4C5Vj" title="Preferred stock shares authorized">35,000</span> shares of Series F. The Company issued to Alpha <span class="xdx_phnt_RGlzY2xvc3VyZSAtIFN0b2NraG9sZGVyc5IgRXF1aXR5IChEZXRhaWxzIE5hcnJhdGl2ZSAxKQA_" id="xdx_90E_eus-gaap--StockIssuedDuringPeriodSharesNewIssues_c20220626__20220626__us-gaap--TypeOfArrangementAxis__custom--SeriesFAgreementMember__us-gaap--StatementClassOfStockAxis__custom--PreferredSeriesFConvertibleStockMember_z68cxd5I8Fa9" title="Number of shares issued">10,000</span> shares of Series F for an aggregate purchase price and gross proceeds of $<span class="xdx_phnt_RGlzY2xvc3VyZSAtIFN0b2NraG9sZGVyc5IgRXF1aXR5IChEZXRhaWxzIE5hcnJhdGl2ZSAxKQA_" id="xdx_909_eus-gaap--StockIssuedDuringPeriodValueNewIssues_c20220626__20220626__us-gaap--TypeOfArrangementAxis__custom--SeriesFAgreementMember__us-gaap--StatementClassOfStockAxis__custom--PreferredSeriesFConvertibleStockMember_zC6tmvylcnhl" title="Aggregate purchase price">10,000,000</span>, however the company received proceeds of $<span class="xdx_phnt_RGlzY2xvc3VyZSAtIFN0b2NraG9sZGVyc5IgRXF1aXR5IChEZXRhaWxzIE5hcnJhdGl2ZSAxKQA_" id="xdx_904_eus-gaap--ProceedsFromIssuanceOfConvertiblePreferredStock_c20220626__20220626__us-gaap--TypeOfArrangementAxis__custom--SeriesFAgreementMember__us-gaap--StatementClassOfStockAxis__custom--PreferredSeriesFConvertibleStockMember_zbcL9RWVRfJ8" title="Gross proceeds">9,920,000</span> net of issuance costs. The shares of Series F are convertible into <span class="xdx_phnt_RGlzY2xvc3VyZSAtIFN0b2NraG9sZGVyc5IgRXF1aXR5IChEZXRhaWxzIE5hcnJhdGl2ZSAxKQA_" id="xdx_902_eus-gaap--ConvertiblePreferredStockSharesIssuedUponConversion_iI_c20220626__us-gaap--TypeOfArrangementAxis__custom--SeriesFAgreementMember__us-gaap--StatementClassOfStockAxis__custom--PreferredSeriesFConvertibleStockMember_zo7oN0sygMW4" title="Number of shares convertible">16,129,032</span> shares of Common Stock at $<span class="xdx_phnt_RGlzY2xvc3VyZSAtIFN0b2NraG9sZGVyc5IgRXF1aXR5IChEZXRhaWxzIE5hcnJhdGl2ZSAxKQA_" id="xdx_906_eus-gaap--PreferredStockConvertibleConversionPrice_iI_pid_c20220626__us-gaap--TypeOfArrangementAxis__custom--SeriesFAgreementMember__us-gaap--StatementClassOfStockAxis__custom--PreferredSeriesFConvertibleStockMember_z2y1kDJgTmfe" title="Conversion price">0.62</span> per share, subject to adjustment. Alpha will be entitled to receive cumulative dividends at the rate per share (as a percentage of the $<span class="xdx_phnt_RGlzY2xvc3VyZSAtIFN0b2NraG9sZGVyc5IgRXF1aXR5IChEZXRhaWxzIE5hcnJhdGl2ZSAxKQA_" id="xdx_909_eus-gaap--PreferredStockValue_iI_c20220626__us-gaap--StatementClassOfStockAxis__custom--PreferredSeriesFConvertibleStockMember_zbn0BS133qc5" title="Preferred stock par value">1,000</span> stated par value per share of Series F) of <span class="xdx_phnt_RGlzY2xvc3VyZSAtIFN0b2NraG9sZGVyc5IgRXF1aXR5IChEZXRhaWxzIE5hcnJhdGl2ZSAxKQA_" id="xdx_901_eus-gaap--PreferredStockDividendRatePercentage_pid_dp_uPure_c20220626__20220626__us-gaap--StatementClassOfStockAxis__custom--PreferredSeriesFConvertibleStockMember_zrEy19Biwis4" title="Dividend rate per share">5</span>% per annum, payable on January 1, April 1, July 1 and October 1, beginning on the first conversion date and subsequent conversion dates.</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0.5in; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> In connection with the Series F Agreement the Company issued a warrant to Alpha to purchase <span class="xdx_phnt_RGlzY2xvc3VyZSAtIFN0b2NraG9sZGVyc5IgRXF1aXR5IChEZXRhaWxzIE5hcnJhdGl2ZSAxKQA_" id="xdx_902_eus-gaap--ClassOfWarrantOrRightNumberOfSecuritiesCalledByEachWarrantOrRight_iI_c20221231__us-gaap--TypeOfArrangementAxis__custom--SeriesFAgreementMember__us-gaap--ClassOfWarrantOrRightAxis__custom--SeriesFWarrantsMember_z7de3WPV0zLj" title="Number of warrants to purchase">16,129,032</span> shares of Common Stock, par value $<span class="xdx_phnt_RGlzY2xvc3VyZSAtIFN0b2NraG9sZGVyc5IgRXF1aXR5IChEZXRhaWxzIE5hcnJhdGl2ZSAxKQA_" id="xdx_900_eus-gaap--CommonStockParOrStatedValuePerShare_iI_c20221231_zSTefZ8cbAF9" title="Common stock, par value">0.001</span> per share (“Series F Warrants”) with an exercise price equal to $<span class="xdx_phnt_RGlzY2xvc3VyZSAtIFN0b2NraG9sZGVyc5IgRXF1aXR5IChEZXRhaWxzIE5hcnJhdGl2ZSAxKQA_" id="xdx_906_eus-gaap--ClassOfWarrantOrRightExercisePriceOfWarrantsOrRights1_iI_pid_c20221231__us-gaap--TypeOfArrangementAxis__custom--SeriesFAgreementMember__us-gaap--ClassOfWarrantOrRightAxis__custom--SeriesFWarrantsMember_zH6XTNznIXJ9" title="Exercise price">0.96</span>, subject to adjustment, per share of Common Stock. The Series F Warrant, and the shares of Common Stock underling the Series F Warrant are collectively referred to as the “Series F Warrant Shares”. The Series F Warrant is not exercisable for the first six months after its issuance and has a three-year term from its exercise date. Upon exercise of the Series F Warrants in full by Alpha, the Company would receive additional gross proceeds of approximately $<span class="xdx_phnt_RGlzY2xvc3VyZSAtIFN0b2NraG9sZGVyc5IgRXF1aXR5IChEZXRhaWxzIE5hcnJhdGl2ZSAxKQA_" id="xdx_90F_eus-gaap--ProceedsFromWarrantExercises_c20220101__20221231__us-gaap--TypeOfArrangementAxis__custom--SeriesFAgreementMember__us-gaap--ClassOfWarrantOrRightAxis__custom--SeriesFWarrantsMember_zWPaZ7tfGJ41" title="Addiitonal gross proceeds">10,000,000</span>.</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0.5in; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Alpha has the right, subject to certain conditions, including shareholder approval, to purchase up to $<span class="xdx_phnt_RGlzY2xvc3VyZSAtIFN0b2NraG9sZGVyc5IgRXF1aXR5IChEZXRhaWxzIE5hcnJhdGl2ZSAxKQA_" id="xdx_90C_ecustom--NumberOfAdditionalSharesToPurchase_c20220101__20221231__us-gaap--StatementClassOfStockAxis__custom--SeriesFOptionMember_zk7ghibP0a5b" title="Number of additional shares to purchase">25,000,000</span> of additional shares of Series F and Series F Warrants (collectively the “Series F Option”). The Series F Option will be available for a period of eighteen months after such shareholder approval at a purchase price equal to the average of the volume weighted average price for three trading days prior to the date that Alpha gives notice to the Company that it will exercise the Series F Option.</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0.5in; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Commencing from the Series F Closing Date and for a period of six months thereafter, upon any issuance by the Company or any of its Subsidiaries of Common Stock or Common Stock equivalents for cash consideration, indebtedness or a combination of units thereof (a “Subsequent Financing”), Alpha will have the right to participate in up to an amount of the Subsequent Financing equal to 50% of the Subsequent Financing on the same terms, conditions and price provided for in the Subsequent Financing. The Preferred Stock has no voting rights, except that the Company shall not undertake certain corporate actions as set forth in the Certificate of Designation that would materially impact the holders of Preferred Stock without their consent.</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0.5in; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> <b>AGEAGLE AERIAL SYSTEMS INC. AND SUBSIDIARIES </b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>NOTES TO CONSOLIDATED FINANCIAL STATEMENTS</b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>FOR THE YEARS ENDED DECEMBER 31, 2022 AND 2021</b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Note 10 – Equity-Continued</b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0.5in; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">As of December 31, 2022, Alpha had converted <span class="xdx_phnt_RGlzY2xvc3VyZSAtIFN0b2NraG9sZGVyc5IgRXF1aXR5IChEZXRhaWxzIE5hcnJhdGl2ZSAxKQA_" id="xdx_900_eus-gaap--CommonStockSharesIssued_iI_c20221231__us-gaap--StatementEquityComponentsAxis__us-gaap--CommonStockMember__us-gaap--StatementClassOfStockAxis__us-gaap--SeriesFPreferredStockMember_ziaXKj6sEZrk" title="Common stock, shares issued">4,137</span> shares of Series F into <span class="xdx_phnt_RGlzY2xvc3VyZSAtIFN0b2NraG9sZGVyc5IgRXF1aXR5IChEZXRhaWxzIE5hcnJhdGl2ZSAxKQA_" id="xdx_90B_eus-gaap--ConversionOfStockSharesConverted1_c20220101__20221231__us-gaap--StatementClassOfStockAxis__us-gaap--SeriesFPreferredStockMember__us-gaap--StatementEquityComponentsAxis__us-gaap--CommonStockMember_z1OS0sqsr0H7" title="Number of common shares convertible">6,804,545</span> shares of Common Stock and recorded $<span class="xdx_phnt_RGlzY2xvc3VyZSAtIFN0b2NraG9sZGVyc5IgRXF1aXR5IChEZXRhaWxzIE5hcnJhdGl2ZSAxKQA_" id="xdx_90B_eus-gaap--CumulativeDividends_iI_c20221231__us-gaap--StatementEquityComponentsAxis__us-gaap--CommonStockMember__us-gaap--StatementClassOfStockAxis__us-gaap--SeriesFPreferredStockMember_z6324k7Jlr4c" title="Cumulative dividends">172,596</span> cumulative dividends at the rate per share (as a percentage of the $<span class="xdx_phnt_RGlzY2xvc3VyZSAtIFN0b2NraG9sZGVyc5IgRXF1aXR5IChEZXRhaWxzIE5hcnJhdGl2ZSAxKQA_" id="xdx_909_ecustom--FairMarketValues_c20220101__20221231__us-gaap--StatementClassOfStockAxis__us-gaap--SeriesFPreferredStockMember__us-gaap--StatementEquityComponentsAxis__us-gaap--CommonStockMember_zqfQ5ww8znP" title="Fair market values">1,000</span> stated par value per share of Series F) of <span class="xdx_phnt_RGlzY2xvc3VyZSAtIFN0b2NraG9sZGVyc5IgRXF1aXR5IChEZXRhaWxzIE5hcnJhdGl2ZSAxKQA_" id="xdx_900_eus-gaap--PreferredStockDividendRatePercentage_pid_dp_uPure_c20220101__20221231__us-gaap--StatementClassOfStockAxis__us-gaap--PreferredNonConvertibleStockMember__us-gaap--StatementClassOfStockAxis__us-gaap--SeriesFPreferredStockMember_zGMnUeihyaP9" title="Dividend rate">5</span>% per annum, beginning on the first conversation date of June 30, 2022. See Note 18 – Subsequent Events.</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0.5in; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">On December 6, 2022, upon the issuance of the promissory note and common stock warrants with an exercise price of $<span class="xdx_phnt_RGlzY2xvc3VyZSAtIFN0b2NraG9sZGVyc5IgRXF1aXR5IChEZXRhaWxzIE5hcnJhdGl2ZSAxKQA_" id="xdx_90C_eus-gaap--ClassOfWarrantOrRightExercisePriceOfWarrantsOrRights1_iI_c20221206__us-gaap--ClassOfWarrantOrRightAxis__custom--CommonStockWarrantsMember_zMG5JKweMdsa" title="Exercise price">0.44</span> (see Note 9), a down round or anti-dilution trigger event occurred resulting in the conversion rate on the Series F and the exercise price of the Series F Warrants issued with the Series F adjusting down to $<span class="xdx_phnt_RGlzY2xvc3VyZSAtIFN0b2NraG9sZGVyc5IgRXF1aXR5IChEZXRhaWxzIE5hcnJhdGl2ZSAxKQA_" id="xdx_90C_eus-gaap--ClassOfWarrantOrRightExercisePriceOfWarrantsOrRights1_iI_c20221206__us-gaap--ClassOfWarrantOrRightAxis__custom--CommonStockWarrantsMember_z0X3MTlfP3Ua" title="Exercise price">0.44</span> from $<span class="xdx_phnt_RGlzY2xvc3VyZSAtIFN0b2NraG9sZGVyc5IgRXF1aXR5IChEZXRhaWxzIE5hcnJhdGl2ZSAxKQA_" id="xdx_903_eus-gaap--PreferredStockConvertibleConversionPrice_iI_pid_c20221206__us-gaap--StatementClassOfStockAxis__custom--PreferredSeriesFConvertibleStockMember_z78yfZnhmFGc" title="Conversion price">0.62</span> and $<span class="xdx_phnt_RGlzY2xvc3VyZSAtIFN0b2NraG9sZGVyc5IgRXF1aXR5IChEZXRhaWxzIE5hcnJhdGl2ZSAxKQA_" id="xdx_904_eus-gaap--ClassOfWarrantOrRightExercisePriceOfWarrantsOrRights1_iI_c20221206__us-gaap--ClassOfWarrantOrRightAxis__custom--SeriesFWarrantsMember_zR6tBZclesO2" title="Exercise price">0.96</span>, respectively (the “Down Round Trigger”). The Down Round Trigger resulted in the Company recognizing a deemed dividend on the common stock warrants and Series F of $<span class="xdx_phnt_RGlzY2xvc3VyZSAtIFN0b2NraG9sZGVyc5IgRXF1aXR5IChEZXRhaWxzIE5hcnJhdGl2ZSAxKQA_" id="xdx_90C_ecustom--DeemedDividendOnCommonStockWarrants_c20220101__20221231__us-gaap--ClassOfWarrantOrRightAxis__custom--CommonStockWarrantsMember_zSRqn4xIy8b8" title="Deemed dividend on common stock warrants">565,161</span> and $<span class="xdx_phnt_RGlzY2xvc3VyZSAtIFN0b2NraG9sZGVyc5IgRXF1aXR5IChEZXRhaWxzIE5hcnJhdGl2ZSAxKQA_" id="xdx_904_eus-gaap--DividendsPreferredStockStock_c20220101__20221231__us-gaap--StatementClassOfStockAxis__custom--PreferredSeriesFConvertibleStockMember_zqVBraC1Aeo3" title="Dividend preferred stock">1,680,216</span>, respectively, or aggregate deemed dividend of $<span class="xdx_phnt_RGlzY2xvc3VyZSAtIFN0b2NraG9sZGVyc5IgRXF1aXR5IChEZXRhaWxzIE5hcnJhdGl2ZSAxKQA_" id="xdx_907_ecustom--AggregateDeemedDividend_c20220101__20221231_zDpfejpIq9ik" title="Aggregate deemed dividend">2,245,377</span>, for the incremental value to the warrant and Series F holder resulting from the reduction in exercise price and conversion price.</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0.5in; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The deemed dividend on the Series F Warrants represents the difference between fair value of the Series F Warrants under the original terms before the Down Round Trigger and the fair value of the Series F Warrants after Down Round Trigger at the reduced exercise price. The fair value of the Series F Warrants was determined using a Black-Scholes pricing model and the following assumptions: expected life of <span class="xdx_phnt_RGlzY2xvc3VyZSAtIFN0b2NraG9sZGVyc5IgRXF1aXR5IChEZXRhaWxzIE5hcnJhdGl2ZSAxKQA_" id="xdx_900_eus-gaap--SharebasedCompensationArrangementBySharebasedPaymentAwardFairValueAssumptionsExpectedTerm1_dtY_c20221206__20221206__us-gaap--StatementClassOfStockAxis__custom--SeriesFWarrantsMember_zcD5AgUtkQ32" title="Expected term">3</span> years, volatility of <span class="xdx_phnt_RGlzY2xvc3VyZSAtIFN0b2NraG9sZGVyc5IgRXF1aXR5IChEZXRhaWxzIE5hcnJhdGl2ZSAxKQA_" id="xdx_909_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExpectedVolatilityRate_pid_dp_uPure_c20221206__20221206__us-gaap--StatementClassOfStockAxis__custom--SeriesFWarrantsMember_zosEocBvhAMe" title="Volatility rate">150</span>%, risk free rate of <span class="xdx_phnt_RGlzY2xvc3VyZSAtIFN0b2NraG9sZGVyc5IgRXF1aXR5IChEZXRhaWxzIE5hcnJhdGl2ZSAxKQA_" id="xdx_908_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsRiskFreeInterestRate_pid_dp_uPure_c20221206__20221206__us-gaap--StatementClassOfStockAxis__custom--SeriesFWarrantsMember_zly5hRhHgr2b" title="Risk free interest rate">3.77</span>%, and dividend rate of <span class="xdx_phnt_RGlzY2xvc3VyZSAtIFN0b2NraG9sZGVyc5IgRXF1aXR5IChEZXRhaWxzIE5hcnJhdGl2ZSAxKQA_" id="xdx_900_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExpectedDividendRate_pid_dp_uPure_c20221206__20221206__us-gaap--StatementClassOfStockAxis__custom--SeriesFWarrantsMember_zHqpBWgmzrN4" title="Expected dividend rate">0</span>%.</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0.5in; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The deemed dividend on the Series F was determined by computing the additional incremental shares, if converted, resulting from the reduction in the conversion price and the market price of common stock of $<span class="xdx_phnt_RGlzY2xvc3VyZSAtIFN0b2NraG9sZGVyc5IgRXF1aXR5IChEZXRhaWxzIE5hcnJhdGl2ZSAxKQA_" id="xdx_90B_eus-gaap--ClassOfWarrantOrRightExercisePriceOfWarrantsOrRights1_iI_c20221206__us-gaap--ClassOfWarrantOrRightAxis__custom--SeriesFDividendMember_zZqaAopphLUk" title="Exercise price">0.42</span> on the date the Down Round Trigger occurred.</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0.5in; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The deemed dividend to the Series F stockholder was a recorded as additional paid in capital and an increase to accumulated deficit and as an increase to total comprehensive loss attributable to Common Stockholders in computing earnings per share on the consolidated statements of operations.</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i>At-the-Market Sales Agreement</i></b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0.5in; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">In accordance with a May 25, 2021 at-the-market Sales Agreement with Stifel, Nicolaus &amp; Company, Incorporated and Raymond James &amp; Associates, Inc. as sales agents, the Company sold <span class="xdx_phnt_RGlzY2xvc3VyZSAtIFN0b2NraG9sZGVyc5IgRXF1aXR5IChEZXRhaWxzIE5hcnJhdGl2ZSAyKQA_" id="xdx_905_eus-gaap--SaleOfStockNumberOfSharesIssuedInTransaction_c20220101__20221231__us-gaap--TypeOfArrangementAxis__custom--AtTheMarketSalesAgreementMember_zvh5yz0BA3V8" title="Number of shares sold">4,251,151</span> shares of Common Stock at a share price between $<span class="xdx_phnt_RGlzY2xvc3VyZSAtIFN0b2NraG9sZGVyc5IgRXF1aXR5IChEZXRhaWxzIE5hcnJhdGl2ZSAyKQA_" id="xdx_909_eus-gaap--SharePrice_iI_pid_c20221231__srt--RangeAxis__srt--MinimumMember__us-gaap--TypeOfArrangementAxis__custom--AtTheMarketSalesAgreementMember_zvlt4mZ2ISx9" title="Stock price">1.04</span> and $<span class="xdx_phnt_RGlzY2xvc3VyZSAtIFN0b2NraG9sZGVyc5IgRXF1aXR5IChEZXRhaWxzIE5hcnJhdGl2ZSAyKQA_" id="xdx_902_eus-gaap--SharePrice_iI_pid_c20221231__srt--RangeAxis__srt--MaximumMember__us-gaap--TypeOfArrangementAxis__custom--AtTheMarketSalesAgreementMember_zJFqwy4ulera" title="Stock price">1.18</span>, for aggregate proceeds of $<span class="xdx_phnt_RGlzY2xvc3VyZSAtIFN0b2NraG9sZGVyc5IgRXF1aXR5IChEZXRhaWxzIE5hcnJhdGl2ZSAyKQA_" id="xdx_900_eus-gaap--SaleOfStockConsiderationReceivedPerTransaction_c20220101__20221231__us-gaap--TypeOfArrangementAxis__custom--AtTheMarketSalesAgreementMember_z8dr1xymZufj" title="Proceeds from sale of stock">4,583,341</span>, net of issuance costs of $<span class="xdx_phnt_RGlzY2xvc3VyZSAtIFN0b2NraG9sZGVyc5IgRXF1aXR5IChEZXRhaWxzIE5hcnJhdGl2ZSAyKQA_" id="xdx_901_eus-gaap--DeferredFinanceCostsNet_iI_c20221231__us-gaap--TypeOfArrangementAxis__custom--AtTheMarketSalesAgreementMember_zk6CDxi1sjcj" title="Issuance costs">141,754</span> during the year ended December 31, 2022. During the period from May 29, 2021, through December 31, 2021, we raised $<span class="xdx_phnt_RGlzY2xvc3VyZSAtIFN0b2NraG9sZGVyc5IgRXF1aXR5IChEZXRhaWxzIE5hcnJhdGl2ZSAyKQA_" id="xdx_909_eus-gaap--LettersOfCreditOutstandingAmount_iI_c20211231_zvKywpTi1tcc" title="Offering amount">30,868,703</span> by utilizing our ATM Offering with co-agents Stifel, Nicolaus &amp; Company, Incorporated and Raymond James &amp; Associates.</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0.5in; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i>Securities Purchase Agreement Dated December 31, 2020</i></b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0.5in; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">For the year ended December 31, 2021, we raised capital of $<span class="xdx_phnt_RGlzY2xvc3VyZSAtIFN0b2NraG9sZGVyc5IgRXF1aXR5IChEZXRhaWxzIE5hcnJhdGl2ZSAyKQA_" id="xdx_907_eus-gaap--CommonStockValue_iI_c20211231__us-gaap--TypeOfArrangementAxis__custom--SecuritiesPurchaseAgreementMember_zh6lpCyQv8m8" title="Capital">6,313,943</span> as a result of the sale of <span class="xdx_phnt_RGlzY2xvc3VyZSAtIFN0b2NraG9sZGVyc5IgRXF1aXR5IChEZXRhaWxzIE5hcnJhdGl2ZSAyKQA_" id="xdx_905_eus-gaap--SharesIssued_iI_c20211231__us-gaap--TypeOfArrangementAxis__custom--SecuritiesPurchaseAgreementMember_zasHRuRXpXAc" title="Issuance of shares">1,057,214</span> shares of Common Stock in connection with a securities purchase agreement (the “December Purchase Agreement”) entered on December 31, 2020.</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>AGEAGLE AERIAL SYSTEMS INC. AND SUBSIDIARIES </b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>NOTES TO CONSOLIDATED FINANCIAL STATEMENTS</b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>FOR THE YEARS ENDED DECEMBER 31, 2022 AND 2021</b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Note 10 – Equity-Continued</b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i>Securities Purchase Agreement Dated August 4, 2020 / Exercise of Warrants</i></b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0.5in; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">On August 4, 2020, the Company and an Investor entered into a securities purchase agreement (the “August Purchase Agreement”) pursuant to which the Company agreed to sell to the Investor in a registered direct offering <span class="xdx_phnt_RGlzY2xvc3VyZSAtIFN0b2NraG9sZGVyc5IgRXF1aXR5IChEZXRhaWxzIE5hcnJhdGl2ZSAyKQA_" id="xdx_901_eus-gaap--SaleOfStockNumberOfSharesIssuedInTransaction_c20200804__20200804__us-gaap--TypeOfArrangementAxis__custom--AugustPurchaseAgreementMember_zbrueNTd0dmc" title="Number of shares sold">3,355,705</span> shares of Common Stock and warrants to purchase up to <span class="xdx_phnt_RGlzY2xvc3VyZSAtIFN0b2NraG9sZGVyc5IgRXF1aXR5IChEZXRhaWxzIE5hcnJhdGl2ZSAyKQA_" id="xdx_902_eus-gaap--ConversionOfStockSharesConverted1_c20200804__20200804__us-gaap--TypeOfArrangementAxis__custom--AugustPurchaseAgreementMember_ztm9LCXekQob" title="Number of Common Shares convertible">2,516,778</span> shares of Common Stock at an exercise price of $<span class="xdx_phnt_RGlzY2xvc3VyZSAtIFN0b2NraG9sZGVyc5IgRXF1aXR5IChEZXRhaWxzIE5hcnJhdGl2ZSAyKQA_" id="xdx_902_ecustom--ConversionPrice_c20200804__20200804__us-gaap--TypeOfArrangementAxis__custom--AugustPurchaseAgreementMember_zne9x6LKlYU1" title="Conversion Price">3.30</span> per share (the “August Warrants”), for proceeds of $<span class="xdx_phnt_RGlzY2xvc3VyZSAtIFN0b2NraG9sZGVyc5IgRXF1aXR5IChEZXRhaWxzIE5hcnJhdGl2ZSAyKQA_" id="xdx_906_eus-gaap--SaleOfStockConsiderationReceivedPerTransaction_c20200804__20200804__us-gaap--TypeOfArrangementAxis__custom--AugustPurchaseAgreementMember_z7aCN164Qxu4" title="Proceeds from sale of stock">9,900,000</span>, net of issuance costs of $<span class="xdx_phnt_RGlzY2xvc3VyZSAtIFN0b2NraG9sZGVyc5IgRXF1aXR5IChEZXRhaWxzIE5hcnJhdGl2ZSAyKQA_" id="xdx_90B_eus-gaap--DeferredFinanceCostsNet_iI_c20200804__us-gaap--TypeOfArrangementAxis__custom--AugustPurchaseAgreementMember_zx1v3KtwQI44" title="Issuance costs">100,000</span>. Upon exercise of the Warrants in full by the Investor, the Company would receive additional gross proceeds of $<span class="xdx_phnt_RGlzY2xvc3VyZSAtIFN0b2NraG9sZGVyc5IgRXF1aXR5IChEZXRhaWxzIE5hcnJhdGl2ZSAyKQA_" id="xdx_90F_eus-gaap--GrossProfit_c20200804__20200804__us-gaap--TypeOfArrangementAxis__custom--AugustPurchaseAgreementMember_z76ED0qQyLff" title="Gross Profit">8,305,368</span>. The shares of Common Stock of the Company underlying the Warrants are referred to as “August Warrant Shares.”</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0.5in; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The purchase price for each share of Common Stock is $<span class="xdx_phnt_RGlzY2xvc3VyZSAtIFN0b2NraG9sZGVyc5IgRXF1aXR5IChEZXRhaWxzIE5hcnJhdGl2ZSAyKQA_" id="xdx_90C_eus-gaap--PreferredStockConvertibleConversionPrice_iI_c20200804__us-gaap--TypeOfArrangementAxis__custom--AugustPurchaseAgreementMember_zDKohqZ1cmpi" title="Conversion price">2.98</span>. Net proceeds from the sale were used for working capital, capital expenditures and general corporate purposes. The shares of Common Stock, the August Warrants and the August Warrant Shares were offered by the Company pursuant to an effective shelf registration statement on Form S-3 (File No. 333-239157), which was declared effective on June 19, 2020. On February 8, 2021, the Company received $<span class="xdx_phnt_RGlzY2xvc3VyZSAtIFN0b2NraG9sZGVyc5IgRXF1aXR5IChEZXRhaWxzIE5hcnJhdGl2ZSAyKQA_" id="xdx_90A_eus-gaap--GrossProfit_c20210208__20210208__us-gaap--TypeOfArrangementAxis__custom--AugustPurchaseAgreementMember_zRirIvcrwmyb" title="Gross Profit">8,305,368</span> in additional gross proceeds associated with the exercise of all the August Warrants.</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i>Acquisition of MicaSense</i></b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0.5in; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">On April 27, 2021, the Company issued <span class="xdx_phnt_RGlzY2xvc3VyZSAtIFN0b2NraG9sZGVyc5IgRXF1aXR5IChEZXRhaWxzIE5hcnJhdGl2ZSAzKQA_" id="xdx_900_ecustom--IssuedOptionsToPurchase_c20210427__20210427__us-gaap--AwardTypeAxis__custom--OptionsIssuancesMember__us-gaap--RelatedPartyTransactionAxis__custom--MicaSenseMember_zpX5K55B2pW9" title="Issued options to purchase">540,541</span> shares of Common Stock in connection with the MicaSense Purchase Agreement based on a volume weighted average trading price of the Common Stock over a ten consecutive trading day period prior to the date of issuance of these shares of Common Stock at the fair market value of $<span class="xdx_phnt_RGlzY2xvc3VyZSAtIFN0b2NraG9sZGVyc5IgRXF1aXR5IChEZXRhaWxzIE5hcnJhdGl2ZSAzKQA_" id="xdx_902_ecustom--FairMarketValues_c20210427__20210427__us-gaap--AwardTypeAxis__custom--OptionsIssuancesMember__us-gaap--RelatedPartyTransactionAxis__custom--MicaSenseMember_zCroRM1VqBil" title="Fair market values">3,000,000</span>.</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i>Acquisition of Measure</i></b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0.5in; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Pursuant to the terms of the Measure Acquisition Purchase Agreement (the “Purchase Agreement”) the Company issued an aggregate of <span class="xdx_phnt_RGlzY2xvc3VyZSAtIFN0b2NraG9sZGVyc5IgRXF1aXR5IChEZXRhaWxzIE5hcnJhdGl2ZSAzKQA_" id="xdx_90A_ecustom--IssuedOptionsToPurchase_c20220101__20221231__us-gaap--AwardTypeAxis__custom--OptionsIssuancesMember__us-gaap--RelatedPartyTransactionAxis__custom--MeasureMember_zwHT1e7ESXfh" title="Issued options to purchase">5,319,145</span> shares of the Company’s common stock to the Sellers of Measure as part of the consideration for the acquisition, of which <span class="xdx_phnt_RGlzY2xvc3VyZSAtIFN0b2NraG9sZGVyc5IgRXF1aXR5IChEZXRhaWxzIE5hcnJhdGl2ZSAzKQA_" id="xdx_905_ecustom--StockIssuedDuringPeriodSharesAcquisitionsHeld_c20220101__20220131__us-gaap--TypeOfArrangementAxis__custom--MeasureAcquisitionPurchaseAgreementMember__us-gaap--StatementEquityComponentsAxis__us-gaap--CommonStockMember_zfOVA4Yj5h22" title="Number of shares issued acquisition held">997,338</span> shares were held back (the “Heldback Shares”) to cover post-closing indemnification claims and to satisfy any purchase price adjustments (see Note 5), based on a volume weighted average trading price of the Common Stock over a ten consecutive trading day period prior to the date of issuance of these shares of Common Stock at the fair market value of $<span class="xdx_phnt_RGlzY2xvc3VyZSAtIFN0b2NraG9sZGVyc5IgRXF1aXR5IChEZXRhaWxzIE5hcnJhdGl2ZSAzKQA_" id="xdx_90D_ecustom--FairMarketValues_c20220101__20221231__us-gaap--AwardTypeAxis__custom--OptionsIssuancesMember__us-gaap--RelatedPartyTransactionAxis__custom--MeasureMember_zta8j76hmi86" title="Fair market values">24,375,000</span>.</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0.5in; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Pursuant to the terms of the Purchase Agreement, the Heldback Shares were scheduled to be released in three tranches, on the 12-month, 18-month and 24-month anniversary of the closing date of the acquisition. The Company made a claim for indemnification against the Heldback Shares. Pursuant to the Settlement Agreement entered on August 22, 2022, the Company released all the Measure shares held in escrow along with any disputes regarding the <span class="xdx_phnt_RGlzY2xvc3VyZSAtIFN0b2NraG9sZGVyc5IgRXF1aXR5IChEZXRhaWxzIE5hcnJhdGl2ZSAzKQA_" id="xdx_905_ecustom--StockIssuedDuringPeriodSharesAcquisitionsHeld_c20220101__20220131__us-gaap--TypeOfArrangementAxis__custom--MeasureAcquisitionPurchaseAgreementMember__us-gaap--StatementEquityComponentsAxis__us-gaap--CommonStockMember_zewl1zwsmkY6" title="Number of shares issued acquisition held">997,338</span> Heldback Shares. As a result, <span class="xdx_phnt_RGlzY2xvc3VyZSAtIFN0b2NraG9sZGVyc5IgRXF1aXR5IChEZXRhaWxzIE5hcnJhdGl2ZSAzKQA_" id="xdx_903_ecustom--StockIssuedDuringPeriodSharesAcquisitionsHeldBack_c20220822__20220822__us-gaap--TypeOfArrangementAxis__custom--SettlementAgreementMember__us-gaap--StatementEquityComponentsAxis__us-gaap--CommonStockMember_zXLDnx4IH5o7" title="Number of shares issued acquisition">498,669</span> of the Heldback Shares were released to the Measure Sellers with the remaining <span class="xdx_phnt_RGlzY2xvc3VyZSAtIFN0b2NraG9sZGVyc5IgRXF1aXR5IChEZXRhaWxzIE5hcnJhdGl2ZSAzKQA_" id="xdx_903_ecustom--StockIssuedDuringPeriodSharesAcquisitionsHeldBack_c20220822__20220822__us-gaap--TypeOfArrangementAxis__custom--SettlementAgreementMember__us-gaap--StatementEquityComponentsAxis__us-gaap--CommonStockMember_zCELgJmKf541" title="Number of shares issued acquisition">498,669</span> Heldback Shares being cancelled by the Company which reduced the issued and outstanding common stock and causing an increase to stockholders’ equity of $<span class="xdx_phnt_RGlzY2xvc3VyZSAtIFN0b2NraG9sZGVyc5IgRXF1aXR5IChEZXRhaWxzIE5hcnJhdGl2ZSAzKQA_" id="xdx_90B_ecustom--StockIssuedDuringPeriodValueSettlementOfHeldbackSharesFromContingentLiabilityRelatedToMeasureAcquisition_c20220822__20220822__us-gaap--TypeOfArrangementAxis__custom--SettlementAgreementMember__us-gaap--StatementEquityComponentsAxis__us-gaap--CommonStockMember_z2zdrvP0HfBb" title="Settlement of Common Stock from contingent liability related to Measure">2,812,500</span>.</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>AGEAGLE AERIAL SYSTEMS INC. AND SUBSIDIARIES </b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>NOTES TO CONSOLIDATED FINANCIAL STATEMENTS</b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>FOR THE YEARS ENDED DECEMBER 31, 2022 AND 2021</b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Note 10 – Equity-Continued</b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i>Acquisition of senseFly</i></b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0.5in; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">In accordance with the terms of the senseFly S.A. Purchase Agreement, the Company issued <span class="xdx_phnt_RGlzY2xvc3VyZSAtIFN0b2NraG9sZGVyc5IgRXF1aXR5IChEZXRhaWxzIE5hcnJhdGl2ZSAzKQA_" id="xdx_903_eus-gaap--StockIssuedDuringPeriodSharesAcquisitions_c20220101__20220131__us-gaap--BusinessAcquisitionAxis__custom--SenseflyMember__us-gaap--TypeOfArrangementAxis__custom--SenseFlySAPurchaseAgreementMember_zXy9mTctyQo8" title="Number of shares issued acquisition">1,927,407</span> shares of Common Stock to Parrot in January 2022 having an aggregate value of $<span class="xdx_phnt_RGlzY2xvc3VyZSAtIFN0b2NraG9sZGVyc5IgRXF1aXR5IChEZXRhaWxzIE5hcnJhdGl2ZSAzKQA_" id="xdx_90E_eus-gaap--StockIssuedDuringPeriodValueAcquisitions_c20220101__20220131__us-gaap--BusinessAcquisitionAxis__custom--SenseflyMember__us-gaap--TypeOfArrangementAxis__custom--SenseFlySAPurchaseAgreementMember_zBYjmppZRV24" title="Aggregate value">3,000,000</span>, based on a volume weighted average trading price of the Common Stock over a ten consecutive trading day period prior to the date of issuance of the shares of Common Stock to Parrot (see also Note 5).</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i>Consulting Agreement</i></b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0.5in; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">On May 3, 2019, the Company entered into a consulting agreement with GreenBlock Capital LLC (“Consultant”) for purposes of advising on certain business opportunities. On October 31, 2019, the consulting agreement was terminated; however, the Consultant continued to be entitled to receive up to <span class="xdx_phnt_RGlzY2xvc3VyZSAtIFN0b2NraG9sZGVyc5IgRXF1aXR5IChEZXRhaWxzIE5hcnJhdGl2ZSAyKQA_" id="xdx_90A_ecustom--RestrictedCommonStockShares_c20191031__20191031__us-gaap--TypeOfArrangementAxis__custom--ConsultingAgreementMember_zpgfVSMou3Pd" title="Restricted Common Stock shares">2,500,000</span> restricted Common Stock after termination of the consulting agreement, if the achievement of milestones that commenced during the term of the consulting agreement were completed within twenty-four months. Subsequent to the aforementioned termination of the consulting agreement, the Consultant sent a demand letter to the Company alleging a breach of this agreement due to the Company’s non-issuance of additional restricted shares of its Common Stock in connection with the Consultant’s alleged achievement of the milestones. As of December 31, 2020, and as a result of this demand, the Company recorded a contingent loss of $<span class="xdx_phnt_RGlzY2xvc3VyZSAtIFN0b2NraG9sZGVyc5IgRXF1aXR5IChEZXRhaWxzIE5hcnJhdGl2ZSAyKQA_" id="xdx_90F_ecustom--ContingentLosses_iI_c20201231__us-gaap--TypeOfArrangementAxis__custom--ConsultingAgreementMember_z4oeKGd6j8re" title="Contingent loss">1,500,000</span>, based upon the fair market value of $<span class="xdx_phnt_RGlzY2xvc3VyZSAtIFN0b2NraG9sZGVyc5IgRXF1aXR5IChEZXRhaWxzIE5hcnJhdGl2ZSAyKQA_" id="xdx_907_ecustom--FairMarketValuesPricePerShares_iI_pid_c20201231__us-gaap--TypeOfArrangementAxis__custom--ConsultingAgreementMember_z1ivMrgklrr7" title="Fair market values price per shares">6.00</span> per share of its Common Stock, which was recorded within professional fees on the consolidated statements of operations and comprehensive loss. For the years ended December 31, 2022 and 2021, the Company recorded additional stock-based compensation expense of $<span class="xdx_phnt_RGlzY2xvc3VyZSAtIFN0b2NraG9sZGVyc5IgRXF1aXR5IChEZXRhaWxzIE5hcnJhdGl2ZSAyKQA_" id="xdx_906_eus-gaap--ShareBasedCompensation_c20220101__20221231__us-gaap--TypeOfArrangementAxis__custom--ConsultingAgreementMember_zPowAbwUi1ef" title="Stock-based compensation">0</span> and $<span class="xdx_phnt_RGlzY2xvc3VyZSAtIFN0b2NraG9sZGVyc5IgRXF1aXR5IChEZXRhaWxzIE5hcnJhdGl2ZSAyKQA_" id="xdx_900_eus-gaap--ShareBasedCompensation_c20210101__20211231__us-gaap--TypeOfArrangementAxis__custom--ConsultingAgreementMember_z2usAHqneJn2" title="Stock-based compensation">1,407,000</span>, respectively, which reflected the issuance of <span class="xdx_phnt_RGlzY2xvc3VyZSAtIFN0b2NraG9sZGVyc5IgRXF1aXR5IChEZXRhaWxzIE5hcnJhdGl2ZSAyKQA_" id="xdx_906_ecustom--AdditionalRestrictedSharesOfCommonStock_iI_c20210512__us-gaap--TypeOfArrangementAxis__custom--ConsultingAgreementMember_zb5JxXiBwJQ6" title="Additional restricted shares of Common Stock">550,000</span> additional restricted shares of Common Stock that were subsequently issued on May 12, 2021, as settlement for the claims made under the demand, which resulted in a liability amount of $<span class="xdx_phnt_RGlzY2xvc3VyZSAtIFN0b2NraG9sZGVyc5IgRXF1aXR5IChEZXRhaWxzIE5hcnJhdGl2ZSAyKQA_" id="xdx_901_eus-gaap--OtherLiabilitiesCurrent_iI_c20201231__us-gaap--TypeOfArrangementAxis__custom--ConsultingAgreementMember_zYEnccVVLjR8" title="Due To Related Parties">2,907,000</span> for purposes of payment of the settlement.</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i>Exercise of Common Stock Options</i></b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0.5in; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">For the year ended December 31, 2022, <span class="xdx_phnt_RGlzY2xvc3VyZSAtIFN0b2NraG9sZGVyc5IgRXF1aXR5IChEZXRhaWxzIE5hcnJhdGl2ZSA0KQA_" id="xdx_90B_eus-gaap--CommonStockSharesIssued_iI_c20221231__us-gaap--StatementClassOfStockAxis__custom--ExerciseofCommonStockOptionsMember_zRlLlDnkXFui" title="Common stock share issued">185,000</span> Common Stock shares were issued in connection with the exercise of stock options previously granted at an average per share exercise price between $<span class="xdx_phnt_RGlzY2xvc3VyZSAtIFN0b2NraG9sZGVyc5IgRXF1aXR5IChEZXRhaWxzIE5hcnJhdGl2ZSA0KQA_" id="xdx_906_eus-gaap--ShareBasedCompensationArrangementsByShareBasedPaymentAwardOptionsExercisesInPeriodWeightedAverageExercisePrice_pid_c20220101__20221231__srt--RangeAxis__srt--MinimumMember__us-gaap--StatementClassOfStockAxis__custom--ExerciseofCommonStockOptionsMember_zzSuk0KRF10l" title="Exercise price">0.31</span> and $<span class="xdx_phnt_RGlzY2xvc3VyZSAtIFN0b2NraG9sZGVyc5IgRXF1aXR5IChEZXRhaWxzIE5hcnJhdGl2ZSA0KQA_" id="xdx_906_eus-gaap--ShareBasedCompensationArrangementsByShareBasedPaymentAwardOptionsExercisesInPeriodWeightedAverageExercisePrice_pid_c20220101__20221231__srt--RangeAxis__srt--MaximumMember__us-gaap--StatementClassOfStockAxis__custom--ExerciseofCommonStockOptionsMember_zgUIeoIGIJKf" title="Exercise price">0.41</span> resulting in gross proceeds of $<span class="xdx_phnt_RGlzY2xvc3VyZSAtIFN0b2NraG9sZGVyc5IgRXF1aXR5IChEZXRhaWxzIE5hcnJhdGl2ZSA0KQA_" id="xdx_901_eus-gaap--GrossProfit_c20220101__20221231__us-gaap--StatementClassOfStockAxis__custom--ExerciseofCommonStockOptionsMember_zUomy7ZbhBA7" title="Gross Profit">74,350</span>. For the year ended December 31, 2021, <span class="xdx_phnt_RGlzY2xvc3VyZSAtIFN0b2NraG9sZGVyc5IgRXF1aXR5IChEZXRhaWxzIE5hcnJhdGl2ZSA0KQA_" id="xdx_901_eus-gaap--CommonStockSharesIssued_iI_c20211231__us-gaap--StatementClassOfStockAxis__custom--ExerciseofCommonStockOptionsMember_z4eAYupQWXIj" title="Common stock share issued">505,167</span> Common Stock shares were issued in connection with the exercise of stock options previously granted at an average per share exercise price between $<span class="xdx_phnt_RGlzY2xvc3VyZSAtIFN0b2NraG9sZGVyc5IgRXF1aXR5IChEZXRhaWxzIE5hcnJhdGl2ZSA0KQA_" id="xdx_906_eus-gaap--ShareBasedCompensationArrangementsByShareBasedPaymentAwardOptionsExercisesInPeriodWeightedAverageExercisePrice_pid_c20210101__20211231__srt--RangeAxis__srt--MinimumMember__us-gaap--StatementClassOfStockAxis__custom--ExerciseofCommonStockOptionsMember_zOi9tq592hFk" title="Exercise price">0.15</span> and $<span class="xdx_phnt_RGlzY2xvc3VyZSAtIFN0b2NraG9sZGVyc5IgRXF1aXR5IChEZXRhaWxzIE5hcnJhdGl2ZSA0KQA_" id="xdx_902_eus-gaap--ShareBasedCompensationArrangementsByShareBasedPaymentAwardOptionsExercisesInPeriodWeightedAverageExercisePrice_pid_c20210101__20211231__srt--RangeAxis__srt--MaximumMember__us-gaap--StatementClassOfStockAxis__custom--ExerciseofCommonStockOptionsMember_zJS6aCFLqBng" title="Exercise price">2.65</span> resulting in gross proceeds of $<span class="xdx_phnt_RGlzY2xvc3VyZSAtIFN0b2NraG9sZGVyc5IgRXF1aXR5IChEZXRhaWxzIE5hcnJhdGl2ZSA0KQA_" id="xdx_909_eus-gaap--GrossProfit_c20210101__20211231__us-gaap--StatementClassOfStockAxis__custom--ExerciseofCommonStockOptionsMember_zEYBc50eNUGk" title="Gross profit">122,970</span>.</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0.5in; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>AGEAGLE AERIAL SYSTEMS INC. AND SUBSIDIARIES </b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>NOTES TO CONSOLIDATED FINANCIAL STATEMENTS</b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>FOR THE YEARS ENDED DECEMBER 31, 2022 AND 2021</b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Note 10 – Equity-Continued</b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i>Stock-Based Compensation</i></b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0.5in; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The Company determines the fair value of awards granted under the Equity Plan based on the fair value of its Common Stock on the date of grant. Stock-based compensation expenses related to grants under the Equity Plan are included in general and administrative expenses on the consolidated statements of operations and comprehensive loss.</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i>2017 Omnibus Equity Incentive Plan</i></b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0.5in; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">On March 26, 2018, the 2017 Omnibus Equity Incentive Plan (the “Equity Plan”) became effective. Under the Equity Plan, the Company may grant equity-based and other incentive awards to officers, employees, and directors of, and consultants and advisers to, the Company. The purpose of the Equity Plan is to help the Company attract, motivate, and retain such persons and thereby enhance shareholder value. The Equity Plan shall continue in effect, unless sooner terminated, until the tenth (10th) anniversary of the date on which it is adopted by the Board (except as to awards outstanding on that date). The Board in its discretion may terminate the Equity Plan at any time with respect to any shares for which awards have not theretofore been granted; provided, however, that the Equity Plan’s termination shall not materially and adversely impair the rights of a holder, without the consent of the holder, with respect to any award previously granted. On June 18, 2019, at the Annual Meeting of Shareholders of the Company, the shareholders approved a proposal to increase the number of shares of Common Stock reserved for issuance under the Equity Plan from <span class="xdx_phnt_RGlzY2xvc3VyZSAtIFN0b2NraG9sZGVyc5IgRXF1aXR5IChEZXRhaWxzIE5hcnJhdGl2ZSA0KQA_" id="xdx_909_eus-gaap--CommonStockCapitalSharesReservedForFutureIssuance_iI_c20190618__srt--RangeAxis__srt--MinimumMember__us-gaap--TypeOfArrangementAxis__custom--TwoThousandSeventeenOmnibusEquityIncentivePlanMember_z2krFM0TCl1g" title="Common Stock reserved for issuance under the Equity Plan">2,000,000</span> to <span class="xdx_phnt_RGlzY2xvc3VyZSAtIFN0b2NraG9sZGVyc5IgRXF1aXR5IChEZXRhaWxzIE5hcnJhdGl2ZSA0KQA_" id="xdx_904_eus-gaap--CommonStockCapitalSharesReservedForFutureIssuance_iI_c20190618__srt--RangeAxis__srt--MaximumMember__us-gaap--TypeOfArrangementAxis__custom--TwoThousandSeventeenOmnibusEquityIncentivePlanMember_z5rYFzUHwFql" title="Common Stock reserved for issuance under the Equity Plan">3,000,000</span>.</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0.5in; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">On July 15, 2020, the Company held its 2020 annual meeting of stockholders and approved a proposal to increase the number of shares of Common Stock reserved for issuance under the Equity Plan from <span class="xdx_phnt_RGlzY2xvc3VyZSAtIFN0b2NraG9sZGVyc5IgRXF1aXR5IChEZXRhaWxzIE5hcnJhdGl2ZSA0KQA_" id="xdx_90B_eus-gaap--CommonStockCapitalSharesReservedForFutureIssuance_iI_c20200715__us-gaap--TypeOfArrangementAxis__custom--TwoThousandSeventeenOmnibusEquityIncentivePlanMember__srt--RangeAxis__srt--MinimumMember_zd1yio7eFKh2" title="Common Stock reserved for issuance under the Equity Plan">3,000,000</span> to <span class="xdx_phnt_RGlzY2xvc3VyZSAtIFN0b2NraG9sZGVyc5IgRXF1aXR5IChEZXRhaWxzIE5hcnJhdGl2ZSA0KQA_" id="xdx_90E_eus-gaap--CommonStockCapitalSharesReservedForFutureIssuance_iI_c20200715__us-gaap--TypeOfArrangementAxis__custom--TwoThousandSeventeenOmnibusEquityIncentivePlanMember__srt--RangeAxis__srt--MaximumMember_zhFNhEypJC4l" title="Common Stock reserved for issuance under the Equity Plan">4,000,000</span>. To the extent that an award lapses, expires, is canceled, is terminated unexercised or ceases to be exercisable for any reason, or the rights of its holder terminate, any shares subject to such award shall again be available for the grant of a new award. <span id="xdx_909_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardDescription_c20200714__20200715_zoAM0Y41Bpk6" title="Stock based compensation description">The number of shares for which awards which are options or stock appreciation rights (“SARs”) may be granted to a participant under the Equity Plan during any calendar year is limited to 500,000. For purposes of qualifying awards as “performance-based” compensation under Code Section 162(m), the maximum amount of cash compensation that may be paid to any person under the Equity Plan in any single calendar year shall be $500,000.</span></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0.5in; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">On June 16, 2021, the Company held its 2021 annual meeting of stockholders and approved a proposal to increase the number of shares of Common Stock reserved for issuance under the Equity Plan from <span class="xdx_phnt_RGlzY2xvc3VyZSAtIFN0b2NraG9sZGVyc5IgRXF1aXR5IChEZXRhaWxzIE5hcnJhdGl2ZSA0KQA_" id="xdx_904_eus-gaap--CommonStockCapitalSharesReservedForFutureIssuance_iI_c20210616__us-gaap--TypeOfArrangementAxis__custom--TwoThousandSeventeenOmnibusEquityIncentivePlanMember__srt--RangeAxis__srt--MinimumMember_zcMzrnvB3wne" title="Common Stock reserved for issuance under the Equity Plan">4,000,000</span> to <span class="xdx_phnt_RGlzY2xvc3VyZSAtIFN0b2NraG9sZGVyc5IgRXF1aXR5IChEZXRhaWxzIE5hcnJhdGl2ZSA0KQA_" id="xdx_90D_eus-gaap--CommonStockCapitalSharesReservedForFutureIssuance_iI_c20210616__us-gaap--TypeOfArrangementAxis__custom--TwoThousandSeventeenOmnibusEquityIncentivePlanMember__srt--RangeAxis__srt--MaximumMember_z02OKfNjinzc" title="Common Stock reserved for issuance under the Equity Plan">10,000,000</span>. To the extent that an award lapses, expires, is canceled, is terminated unexercised or ceases to be exercisable for any reason, or the rights of its holder terminate, any shares subject to such award shall again be available for the grant of a new award. <span id="xdx_90F_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardDescription_c20220101__20221231_zVT2R5dTGMnk" title="Stock based compensation description">The number of shares for which awards which are options or SARs may be granted to a participant under the Equity Plan during any calendar year is limited to 500,000. For purposes of qualifying awards as “performance-based” compensation under Code Section 162(m), the maximum amount of cash compensation that may be paid to any person under the Equity Plan in any single calendar year shall be $500,000.</span></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0.5in; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The Company determines the fair value of awards granted under the Equity Plan based on the fair value of its Common Stock on the date of grant.</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0.5in; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Stock-based compensation expenses related to grants under the Equity Plan are included in general and administrative expenses on the consolidated statements of operations.</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0.5in; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>AGEAGLE AERIAL SYSTEMS INC. AND SUBSIDIARIES </b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>NOTES TO CONSOLIDATED FINANCIAL STATEMENTS</b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>FOR THE YEARS ENDED DECEMBER 31, 2022 AND 2021</b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Note 10 – Equity-Continued</b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i>Restricted Stock Units</i></b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p id="xdx_890_eus-gaap--ScheduleOfShareBasedCompensationRestrictedStockUnitsAwardActivityTableTextBlock_ziZQEYF47749" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0.5in; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">For the year ended December 31, 2022, a summary of RSU activity is as follows:</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> <span id="xdx_8BA_zI9JJwSFz0G6" style="display: none">Schedule of Restricted Stock Unit Activity</span></span></span></p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td><span style="-sec-ix-redline: true"> </span></td><td style="font-weight: bold; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"><span style="-sec-ix-redline: true">Shares</span></td><td style="padding-bottom: 1.5pt; font-weight: bold"><span style="-sec-ix-redline: true"> </span></td><td style="font-weight: bold; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"><span style="-sec-ix-redline: true">Weighted Average Grant Date Fair Value</span></td><td style="padding-bottom: 1.5pt; font-weight: bold"><span style="-sec-ix-redline: true"> </span></td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 60%"><span style="-sec-ix-redline: true">Outstanding as of December 31, 2021</span></td><td style="width: 2%"><span style="-sec-ix-redline: true"> </span></td> <td style="width: 1%; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td id="xdx_98A_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsNonvestedNumber_iS_c20220101__20221231__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockUnitsRSUMember_zZWcBYQ6iRGe" style="width: 16%; text-align: right" title="Number of shares,Beginning"><span style="-sec-ix-redline: true">1,147,250</span></td><td style="width: 1%; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="width: 2%"><span style="-sec-ix-redline: true"> </span></td> <td style="width: 1%; text-align: left"><span style="-sec-ix-redline: true">$</span></td><td id="xdx_988_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsNonvestedWeightedAverageGrantDateFairValue_iS_pid_c20220101__20221231__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockUnitsRSUMember_zyrodB7nrtz1" style="width: 16%; text-align: right" title="Weighted average grant date fair value,Beginning"><span style="-sec-ix-redline: true">3.78</span></td><td style="width: 1%; text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> <tr style="vertical-align: bottom; background-color: White"> <td><span style="-sec-ix-redline: true">Granted</span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td id="xdx_98C_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsGrantsInPeriod_c20220101__20221231__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockUnitsRSUMember_zHOufVxW7ZQ8" style="text-align: right" title="Granted"><span style="-sec-ix-redline: true">749,067</span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td id="xdx_98F_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsGrantsInPeriodWeightedAverageGrantDateFairValue_pid_c20220101__20221231__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockUnitsRSUMember_zNg1XM1zYTH4" style="text-align: right" title="Weighted average grant date fair value,Granted"><span style="-sec-ix-redline: true">0.93</span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td><span style="-sec-ix-redline: true">Canceled</span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td id="xdx_985_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsForfeitedInPeriod_iN_di_c20220101__20221231__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockUnitsRSUMember_zyRpDJnW6qQg" style="text-align: right" title="Canceled"><span style="-sec-ix-redline: true">(271,000</span></td><td style="text-align: left"><span style="-sec-ix-redline: true">)</span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td id="xdx_980_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsForfeituresWeightedAverageGrantDateFairValue_pid_c20220101__20221231__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockUnitsRSUMember_z9gDYJ3HLgA1" style="text-align: right" title="Weighted average grant date fair value,Canceled"><span style="-sec-ix-redline: true">2.79</span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true">Vested and released</span></td><td style="padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 1.5pt solid; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td id="xdx_988_ecustom--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsVestedAndReleasedInPeriod_iN_di_c20220101__20221231__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockUnitsRSUMember_zf2j5yzxmlT5" style="border-bottom: Black 1.5pt solid; text-align: right" title="Vested and released"><span style="-sec-ix-redline: true">(596,357</span></td><td style="padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true">)</span></td><td style="padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 1.5pt solid; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td id="xdx_98E_ecustom--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsVestedAndReleasedWeightedAverageGrantDateFairValue_pid_c20220101__20221231__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockUnitsRSUMember_zHOMGMuUp4Vd" style="border-bottom: Black 1.5pt solid; text-align: right" title="Weighted average grant date fair value,Vested and released"><span style="-sec-ix-redline: true">3.18</span></td><td style="padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-bottom: 2.5pt"><span style="-sec-ix-redline: true">Outstanding as of December 31, 2022</span></td><td style="padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 2.5pt double; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td id="xdx_982_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsNonvestedNumber_iE_c20220101__20221231__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockUnitsRSUMember_zu9ZjR4UZ2X5" style="border-bottom: Black 2.5pt double; text-align: right" title="Number of shares,Ending"><span style="-sec-ix-redline: true">1,028,960</span></td><td style="padding-bottom: 2.5pt; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 2.5pt double; text-align: left"><span style="-sec-ix-redline: true">$</span></td><td id="xdx_987_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsNonvestedWeightedAverageGrantDateFairValue_iE_pid_c20220101__20221231__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockUnitsRSUMember_z4RAm9zRtPKl" style="border-bottom: Black 2.5pt double; text-align: right" title="Weighted average grant date fair value,Ending"><span style="-sec-ix-redline: true">2.31</span></td><td style="padding-bottom: 2.5pt; text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-bottom: 2.5pt"><span style="-sec-ix-redline: true">Vested as of December 31, 2022</span></td><td style="padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 2.5pt double; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td id="xdx_981_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsVestedInPeriod_c20220101__20221231__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockUnitsRSUMember_zmI6UTNBI6Ll" style="border-bottom: Black 2.5pt double; text-align: right" title="Vested"><span style="-sec-ix-redline: true">471,484</span></td><td style="padding-bottom: 2.5pt; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 2.5pt double; text-align: left"><span style="-sec-ix-redline: true">$</span></td><td id="xdx_98C_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsVestedInPeriodWeightedAverageGrantDateFairValue_pid_c20220101__20221231__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockUnitsRSUMember_zPd8pPuMsv0f" style="border-bottom: Black 2.5pt double; text-align: right" title="Weighted average grant date fair value,Vested"><span style="-sec-ix-redline: true">3.23</span></td><td style="padding-bottom: 2.5pt; text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-bottom: 2.5pt"><span style="-sec-ix-redline: true">Unvested as of December 31, 2022</span></td><td style="padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 2.5pt double; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td id="xdx_988_ecustom--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsNonvestedInPeriod_c20220101__20221231__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockUnitsRSUMember_zawmmMbfUQM3" style="border-bottom: Black 2.5pt double; text-align: right" title="Nonvested"><span style="-sec-ix-redline: true">557,476</span></td><td style="padding-bottom: 2.5pt; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 2.5pt double; text-align: left"><span style="-sec-ix-redline: true">$</span></td><td id="xdx_98D_ecustom--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsUnvestedInPeriodWeightedAverageGrantDateFairValue_pid_c20220101__20221231__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockUnitsRSUMember_zXN7KX8l5SOe" style="border-bottom: Black 2.5pt double; text-align: right" title="Weighted average grant date fair value,Unvested"><span style="-sec-ix-redline: true">1.53</span></td><td style="padding-bottom: 2.5pt; text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> </table> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; text-align: justify; margin: 0pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> For the year ended December 31, 2022, the aggregate fair value of RSUs at the time of vesting was $<span class="xdx_phnt_RGlzY2xvc3VyZSAtIFN0b2NraG9sZGVyc5IgRXF1aXR5IChEZXRhaWxzIE5hcnJhdGl2ZSA0KQA_" id="xdx_901_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsVestedInPeriodTotalFairValue_c20220101__20221231_zNokeqCHvTyk" title="Aggregate fair value of rsu awards">697,361</span>.</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; text-align: justify; margin: 0pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">As of December 31, 2022, the Company had $<span class="xdx_phnt_RGlzY2xvc3VyZSAtIFN0b2NraG9sZGVyc5IgRXF1aXR5IChEZXRhaWxzIE5hcnJhdGl2ZSA0KQA_" id="xdx_907_eus-gaap--EmployeeServiceShareBasedCompensationNonvestedAwardsTotalCompensationCostNotYetRecognized_iI_c20221231__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockUnitsRSUMember_zKGrfT8kxrX5" title="Unrecognized stock-based compensation expense">425,878</span> of unrecognized stock-based compensation expense related to RSUs, which will be amortized over approximately sixteen months. During the year ended December 31, 2022, the company recognized $<span class="xdx_phnt_RGlzY2xvc3VyZSAtIFN0b2NraG9sZGVyc5IgRXF1aXR5IChEZXRhaWxzIE5hcnJhdGl2ZSA0KQA_" id="xdx_909_eus-gaap--AllocatedShareBasedCompensationExpense_c20220101__20221231__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockUnitsRSUMember_zBYD12QiExC2" title="Stock compensation expense">1,780,234</span> of stock compensation related to restricted stock units.</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; text-align: justify; margin: 0pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">For the year ended December 31, 2021, a summary of RSU activity is as follows:</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td><span style="-sec-ix-redline: true"> </span></td><td style="font-weight: bold; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"><span style="-sec-ix-redline: true">Shares</span></td><td style="padding-bottom: 1.5pt; font-weight: bold"><span style="-sec-ix-redline: true"> </span></td><td style="font-weight: bold; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"><span style="-sec-ix-redline: true">Weighted Average Grant Date Fair Value</span></td><td style="padding-bottom: 1.5pt; font-weight: bold"><span style="-sec-ix-redline: true"> </span></td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 60%"><span style="-sec-ix-redline: true">Outstanding as of December 31, 2020</span></td><td style="width: 2%"><span style="-sec-ix-redline: true"> </span></td> <td style="width: 1%; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td id="xdx_98D_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsNonvestedNumber_iS_c20210101__20211231__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockUnitsRSUMember_zgqRUBE7NLZk" style="width: 16%; text-align: right" title="Number of shares,Beginning"><span style="-sec-ix-redline: true">100,000</span></td><td style="width: 1%; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="width: 2%"><span style="-sec-ix-redline: true"> </span></td> <td style="width: 1%; text-align: left"><span style="-sec-ix-redline: true">$</span></td><td id="xdx_98D_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsNonvestedWeightedAverageGrantDateFairValue_iS_pid_c20210101__20211231__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockUnitsRSUMember_zj5Ez8KHHZB8" style="width: 16%; text-align: right" title="Weighted average grant date fair value,Beginning"><span style="-sec-ix-redline: true">1.34</span></td><td style="width: 1%; text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> <tr style="vertical-align: bottom; background-color: White"> <td><span style="-sec-ix-redline: true">Granted</span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td id="xdx_98D_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsGrantsInPeriod_c20210101__20211231__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockUnitsRSUMember_zIQZSiz5Oz43" style="text-align: right" title="Granted"><span style="-sec-ix-redline: true">1,392,402</span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td id="xdx_98D_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsGrantsInPeriodWeightedAverageGrantDateFairValue_pid_c20210101__20211231__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockUnitsRSUMember_z8vSk1a7mG0d" style="text-align: right" title="Weighted average grant date fair value,Granted"><span style="-sec-ix-redline: true">3.99</span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td><span style="-sec-ix-redline: true">Canceled</span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td id="xdx_988_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsForfeitedInPeriod_iN_di_c20210101__20211231__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockUnitsRSUMember_zGeKFIn8bdwg" style="text-align: right" title="Canceled"><span style="-sec-ix-redline: true">(91,667</span></td><td style="text-align: left"><span style="-sec-ix-redline: true">)</span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td id="xdx_985_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsForfeituresWeightedAverageGrantDateFairValue_pid_c20210101__20211231__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockUnitsRSUMember_z3KeRP6ga9W1" style="text-align: right" title="Weighted average grant date fair value,Canceled"><span style="-sec-ix-redline: true">5.40</span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true">Vested and released</span></td><td style="padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 1.5pt solid; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td id="xdx_986_ecustom--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsVestedAndReleasedInPeriod_iN_di_c20210101__20211231__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockUnitsRSUMember_ziAcR01o8vD" style="border-bottom: Black 1.5pt solid; text-align: right" title="Vested and released"><span style="-sec-ix-redline: true">(253,485</span></td><td style="padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true">)</span></td><td style="padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 1.5pt solid; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td id="xdx_989_ecustom--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsVestedAndReleasedWeightedAverageGrantDateFairValue_pid_c20210101__20211231__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockUnitsRSUMember_zUuaoC8MP4Ng" style="border-bottom: Black 1.5pt solid; text-align: right" title="Weighted average grant date fair value,Vested and released"><span style="-sec-ix-redline: true">3.39</span></td><td style="padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-bottom: 2.5pt"><span style="-sec-ix-redline: true">Outstanding as of December 31, 2021</span></td><td style="padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 2.5pt double; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td id="xdx_982_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsNonvestedNumber_iE_c20210101__20211231__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockUnitsRSUMember_z7Hs0eQJu9ta" style="border-bottom: Black 2.5pt double; text-align: right" title="Number of shares,Ending"><span style="-sec-ix-redline: true">1,147,250</span></td><td style="padding-bottom: 2.5pt; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 2.5pt double; text-align: left"><span style="-sec-ix-redline: true">$</span></td><td id="xdx_98C_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsNonvestedWeightedAverageGrantDateFairValue_iE_pid_c20210101__20211231__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockUnitsRSUMember_z8DIwGaxpNVh" style="border-bottom: Black 2.5pt double; text-align: right" title="Weighted average grant date fair value,Ending"><span style="-sec-ix-redline: true">3.78</span></td><td style="padding-bottom: 2.5pt; text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-bottom: 2.5pt"><span style="-sec-ix-redline: true">Vested as of December 31, 2021</span></td><td style="padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 2.5pt double; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td id="xdx_983_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsVestedInPeriod_c20210101__20211231__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockUnitsRSUMember_zMUwYbsrGie4" style="border-bottom: Black 2.5pt double; text-align: right" title="Vested"><span style="-sec-ix-redline: true">325,845</span></td><td style="padding-bottom: 2.5pt; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 2.5pt double; text-align: left"><span style="-sec-ix-redline: true">$</span></td><td id="xdx_983_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsVestedInPeriodWeightedAverageGrantDateFairValue_pid_c20210101__20211231__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockUnitsRSUMember_zS3iwd6LjcQ3" style="border-bottom: Black 2.5pt double; text-align: right" title="Weighted average grant date fair value,Vested"><span style="-sec-ix-redline: true">5.34</span></td><td style="padding-bottom: 2.5pt; text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-bottom: 2.5pt"><span style="-sec-ix-redline: true">Unvested as of December 31, 2021</span></td><td style="padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 2.5pt double; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td id="xdx_986_ecustom--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsNonvestedInPeriod_c20210101__20211231__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockUnitsRSUMember_zsGU4i4GsmIi" style="border-bottom: Black 2.5pt double; text-align: right" title="Nonvested"><span style="-sec-ix-redline: true">821,405</span></td><td style="padding-bottom: 2.5pt; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 2.5pt double; text-align: left"><span style="-sec-ix-redline: true">$</span></td><td id="xdx_980_ecustom--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsUnvestedInPeriodWeightedAverageGrantDateFairValue_pid_c20210101__20211231__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockUnitsRSUMember_zaPcwqQ6yqqi" style="border-bottom: Black 2.5pt double; text-align: right" title="Weighted average grant date fair value,Unvested"><span style="-sec-ix-redline: true">3.16</span></td><td style="padding-bottom: 2.5pt; text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> </table> <p id="xdx_8A1_ze4M4wAbSB88" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 45px; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">For the year ended December 31, 2021, the aggregate fair value of RSUs at the time of vesting was $<span class="xdx_phnt_RGlzY2xvc3VyZSAtIFN0b2NraG9sZGVyc5IgRXF1aXR5IChEZXRhaWxzIE5hcnJhdGl2ZSA0KQA_" id="xdx_908_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsVestedInPeriodTotalFairValue_c20210101__20211231_zA9K6zLVeHWb" title="Aggregate fair value of RSU awards">5,555,503</span>.</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 45px; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 45px; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">As of December 31,2021, the Company had approximately $<span class="xdx_phnt_RGlzY2xvc3VyZSAtIFN0b2NraG9sZGVyc5IgRXF1aXR5IChEZXRhaWxzIE5hcnJhdGl2ZSA0KQA_" id="xdx_907_eus-gaap--EmployeeServiceShareBasedCompensationNonvestedAwardsTotalCompensationCostNotYetRecognized_iI_c20211231__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockUnitsRSUMember_zl8C1b57Wrl7" title="Unrecognized stock-based compensation expense">2,138,000</span> of unrecognized stock-based compensation expense related to RSUs, which will be amortized over approximately twenty-two months. During the year ended December 31, 2021, the company recognized $<span class="xdx_phnt_RGlzY2xvc3VyZSAtIFN0b2NraG9sZGVyc5IgRXF1aXR5IChEZXRhaWxzIE5hcnJhdGl2ZSA0KQA_" id="xdx_90E_eus-gaap--AllocatedShareBasedCompensationExpense_c20210101__20211231__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockUnitsRSUMember_zxF5vh4BLfXk" title="Stock compensation expense">2,851,253</span> of stock compensation related to restricted stock units. </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>AGEAGLE AERIAL SYSTEMS INC. AND SUBSIDIARIES </b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>NOTES TO CONSOLIDATED FINANCIAL STATEMENTS</b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>FOR THE YEARS ENDED DECEMBER 31, 2022 AND 2021</b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Note 10 – Equity-Continued</b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i>Issuance of RSUs to Officers</i></b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Brandon Torres-Declet</b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0.5in; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">On June 13, 2022, the Company released <span id="xdx_902_eus-gaap--StockIssuedDuringPeriodSharesNewIssues_c20220613__20220613__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--BrandonTorresDecletMember__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockUnitsRSUMember_z7Nykr2ut3Wk" title="Common stock new issues">354,107</span> shares of Common Stock to its former chief executive officer, Mr. Brandon Torres Declet (“Mr. Torres Declet”). The issuance of Common Stock included, in connection with the Measure Acquisition, an award of <span id="xdx_909_eus-gaap--StockIssuedDuringPeriodSharesRestrictedStockAwardGross_c20220613__20220613__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--BrandonTorresDecletMember__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockUnitsRSUMember_zSZlq5KuJYal" title="Number of restricted stock units shares">125,000</span> RSUs issued in 2021, an award of <span id="xdx_90D_eus-gaap--StockIssuedDuringPeriodSharesRestrictedStockAwardGross_c20220613__20220613__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--BrandonTorresDecletMember__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockUnitsRSUMember__us-gaap--TypeOfArrangementAxis__custom--TwentyTwentyOneCompensationPlanMember_zGJb0KuMvmo9" title="Number of restricted stock units shares">75,000</span> RSUs issued in connection with the 2021 executive compensation plan, an award of <span id="xdx_906_eus-gaap--StockIssuedDuringPeriodSharesRestrictedStockAwardGross_c20220613__20220613__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--BrandonTorresDecletMember__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockUnitsRSUMember__us-gaap--TypeOfArrangementAxis__custom--SeparationAgreementMember_zXx5Z2eDGpGk" title="Number of restricted stock units shares">111,607</span> RSUs as agreed upon in a separation agreement, and <span id="xdx_90B_eus-gaap--StockIssuedDuringPeriodSharesRestrictedStockAwardGross_c20220613__20220613__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--BrandonTorresDecletMember__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockUnitsRSUMember__us-gaap--TypeOfArrangementAxis__custom--PerformanceBonusMember_z63FXN6jcbbk" title="Number of restricted stock units shares">42,500</span> shares in satisfaction of a performance bonus for 2021 approved by the Compensation Committee of the Board of Directors in 2022.</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0.5in; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">For the year ended December 31, 2022, the Company recognized stock-based compensation expense of $<span class="xdx_phnt_RGlzY2xvc3VyZSAtIFN0b2NraG9sZGVyc5IgRXF1aXR5IChEZXRhaWxzIE5hcnJhdGl2ZSA1KQA_" id="xdx_905_eus-gaap--EmployeeBenefitsAndShareBasedCompensation_c20220101__20221231__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--BrandonTorresDecletMember__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockUnitsRSUMember_zgyrlLtPBRa3" title="Stock-based compensation expense">125,000</span>, based upon the market price of its Common Stock of $<span class="xdx_phnt_RGlzY2xvc3VyZSAtIFN0b2NraG9sZGVyc5IgRXF1aXR5IChEZXRhaWxzIE5hcnJhdGl2ZSA1KQA_" id="xdx_90D_eus-gaap--ShareBasedCompensationArrangementsByShareBasedPaymentAwardOptionsExercisesInPeriodWeightedAverageExercisePrice_c20220101__20221231__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--BrandonTorresDecletMember__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockUnitsRSUMember_zqNsnPKEpElj" title="Exercise price">1.12</span> per share on the date of grant for the <span id="xdx_901_eus-gaap--StockIssuedDuringPeriodSharesRestrictedStockAwardGross_c20220101__20221231__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--BrandonTorresDecletMember__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockUnitsRSUMember__us-gaap--TypeOfArrangementAxis__custom--SeparationAgreementMember_zLMNlmfRCTMd" title="Number of restricted stock units shares">111,607</span> RSUs issued as part of the separation agreement. Additionally, for the 4<span id="xdx_90F_eus-gaap--StockIssuedDuringPeriodSharesRestrictedStockAwardGross_c20220101__20221231__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--BrandonTorresDecletMember__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockUnitsRSUMember__us-gaap--TypeOfArrangementAxis__custom--PerformanceBonusMember_zecPwdAbTrlg" title="Number of restricted stock units shares">2,500</span> RSUs, the Company recognized stock-based compensation expense of $<span class="xdx_phnt_RGlzY2xvc3VyZSAtIFN0b2NraG9sZGVyc5IgRXF1aXR5IChEZXRhaWxzIE5hcnJhdGl2ZSA1KQA_" id="xdx_909_eus-gaap--EmployeeBenefitsAndShareBasedCompensation_c20220101__20221231__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--BrandonTorresDecletMember__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockUnitsRSUMember__us-gaap--TypeOfArrangementAxis__custom--PerformanceBonusMember_zMMsmxajoWB2" title="Stock-based compensation expense">48,025</span> based upon the market price of its Common Stock of $<span class="xdx_phnt_RGlzY2xvc3VyZSAtIFN0b2NraG9sZGVyc5IgRXF1aXR5IChEZXRhaWxzIE5hcnJhdGl2ZSA1KQA_" id="xdx_904_eus-gaap--ShareBasedCompensationArrangementsByShareBasedPaymentAwardOptionsExercisesInPeriodWeightedAverageExercisePrice_c20220101__20221231__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--BrandoTorresDecletMember__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockUnitsRSUMember__us-gaap--TypeOfArrangementAxis__custom--PerformanceBonusMember_zgTQ0RXYiqAg" title="Exercise price">1.13</span> per share on the date of grant. For the year ended December 31, 2021, the Company recognized stock-based compensation expense of $<span class="xdx_phnt_RGlzY2xvc3VyZSAtIFN0b2NraG9sZGVyc5IgRXF1aXR5IChEZXRhaWxzIE5hcnJhdGl2ZSA1KQA_" id="xdx_90A_eus-gaap--EmployeeBenefitsAndShareBasedCompensation_c20210101__20211231__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--BrandonTorresDecletMember__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockUnitsRSUMember_zozuuRuBzA0g" title="Stock-based compensation expense">545,216</span>, based upon the market price of its Common Stock of $<span class="xdx_phnt_RGlzY2xvc3VyZSAtIFN0b2NraG9sZGVyc5IgRXF1aXR5IChEZXRhaWxzIE5hcnJhdGl2ZSA1KQA_" id="xdx_903_eus-gaap--ShareBasedCompensationArrangementsByShareBasedPaymentAwardOptionsExercisesInPeriodWeightedAverageExercisePrice_c20210101__20211231__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--BrandonTorresDecletMember__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockUnitsRSUMember__srt--RangeAxis__srt--MaximumMember_zNHF5LwF79i9" title="Exercise price">5.40</span> and $<span class="xdx_phnt_RGlzY2xvc3VyZSAtIFN0b2NraG9sZGVyc5IgRXF1aXR5IChEZXRhaWxzIE5hcnJhdGl2ZSA1KQA_" id="xdx_907_eus-gaap--ShareBasedCompensationArrangementsByShareBasedPaymentAwardOptionsExercisesInPeriodWeightedAverageExercisePrice_c20210101__20211231__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--BrandonTorresDecletMember__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockUnitsRSUMember__srt--RangeAxis__srt--MinimumMember_zYRIagIeT0Zi" title="Exercise price">2.94</span> per share on the date of grant for the <span class="xdx_phnt_RGlzY2xvc3VyZSAtIFN0b2NraG9sZGVyc5IgRXF1aXR5IChEZXRhaWxzIE5hcnJhdGl2ZSA1KQA_" id="xdx_900_ecustom--FairMarketShares_c20210101__20211231__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--BrandonTorresDecletMember_zn4RFbmxLATl" title="Fair market shares">125,000</span> and <span class="xdx_phnt_RGlzY2xvc3VyZSAtIFN0b2NraG9sZGVyc5IgRXF1aXR5IChEZXRhaWxzIE5hcnJhdGl2ZSA1KQA_" id="xdx_904_ecustom--FairMarketShares_c20210101__20211231__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--BrandonTorresDecletMember__us-gaap--AwardTypeAxis__custom--RSUMember_zspYWeCdYf78" title="Fair market shares">75,000</span> shares, respectively, granted in 2021.</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Michael Drozd</b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0.5in; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">On May 24, 2021, and as a part of a separation agreement between the Company and Mr. J. Michael Drozd (“Mr. Drozd”), the Company’s former Chief Executive Officer, the Company issued to Mr. Drozd <span id="xdx_90E_eus-gaap--StockIssuedDuringPeriodSharesRestrictedStockAwardGross_c20210524__20210524__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--MichaelDrozdMember__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockUnitsRSUMember__us-gaap--TypeOfArrangementAxis__custom--SeparationAgreementMember_zhySRb6tFtZe" title="Number of restricted stock units shares">145,152</span> RSUs, which vested immediately. These RSUs were valued at, and for the year ended December 31, 2021, the Company recognized stock-based compensation expense of $<span id="xdx_907_eus-gaap--EmployeeBenefitsAndShareBasedCompensation_c20210524__20210524__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--MichaelDrozdMember__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockUnitsRSUMember__us-gaap--TypeOfArrangementAxis__custom--SeparationAgreementMember_zOeZk1PRwc21" title="Stock-based compensation expense">680,765</span> based upon the market price of the Company’s Common Stock of $<span id="xdx_901_eus-gaap--ShareBasedCompensationArrangementsByShareBasedPaymentAwardOptionsExercisesInPeriodWeightedAverageExercisePrice_c20210524__20210524__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--MichaelDrozdMember__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockUnitsRSUMember__us-gaap--TypeOfArrangementAxis__custom--SeparationAgreementMember_zffuCULQcP24" title="Exercise price">4.69</span> per share on the date of grant of these RSUs.</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0.5in; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">On April 19, 2021, the Board, upon recommendation of the Compensation Committee of the Board (“Compensation Committee”), approved awards of <span id="xdx_90C_eus-gaap--StockIssuedDuringPeriodSharesRestrictedStockAwardGross_c20210419__20210419__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--MichaelDrozdMember__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockUnitsRSUMember_z7NU0KJkez4d" title="Number of restricted stock units shares">100,000</span> RSUs to Mr. Drozd, and in accordance with his applicable amended respective employment letter. The Company determined the fair market value of these RSUs to be $<span class="xdx_phnt_RGlzY2xvc3VyZSAtIFN0b2NraG9sZGVyc5IgRXF1aXR5IChEZXRhaWxzIE5hcnJhdGl2ZSA1KQA_" id="xdx_902_ecustom--FairMarketValues_c20210419__20210419__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--MichaelDrozdMember__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockUnitsRSUMember_z0jrzomIjlol" title="Fair market values">540,000</span> based on the market price of the Company’s Common Stock on the date of grant of $<span class="xdx_phnt_RGlzY2xvc3VyZSAtIFN0b2NraG9sZGVyc5IgRXF1aXR5IChEZXRhaWxzIE5hcnJhdGl2ZSA1KQA_" id="xdx_90C_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsGrantsInPeriodWeightedAverageGrantDateFairValue_c20210419__20210419__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--MichaelDrozdMember__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockUnitsRSUMember_zA059ojbxegl" title="Grant per share">5.40</span>. These RSUs vest equally on a pro-rata basis over one year of continued employment. Upon Mr. Drozd’s separation from the Company, <span class="xdx_phnt_RGlzY2xvc3VyZSAtIFN0b2NraG9sZGVyc5IgRXF1aXR5IChEZXRhaWxzIE5hcnJhdGl2ZSA1KQA_" id="xdx_900_eus-gaap--StockRedeemedOrCalledDuringPeriodShares_c20210419__20210419__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--MichaelDrozdMember__srt--TitleOfIndividualAxis__custom--DirectorsAndOfficersMember__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockUnitsRSUMember_zsoOo91YvXeg" title="Cancelled shares">91,667</span> RSUs were canceled and only <span class="xdx_phnt_RGlzY2xvc3VyZSAtIFN0b2NraG9sZGVyc5IgRXF1aXR5IChEZXRhaWxzIE5hcnJhdGl2ZSA1KQA_" id="xdx_90C_eus-gaap--CommonStockSharesIssued_iI_c20210419__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--MichaelDrozdMember__srt--TitleOfIndividualAxis__custom--DirectorsAndOfficersMember__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockUnitsRSUMember_zUval8gIFfq4" title="Common stock share issued">8,333</span> were released and issued. For the year ended December 31, 2021, the Company recognized $<span class="xdx_phnt_RGlzY2xvc3VyZSAtIFN0b2NraG9sZGVyc5IgRXF1aXR5IChEZXRhaWxzIE5hcnJhdGl2ZSA1KQA_" id="xdx_90C_eus-gaap--EmployeeBenefitsAndShareBasedCompensation_c20210101__20211231__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--MichaelDrozdMember__srt--TitleOfIndividualAxis__custom--DirectorsAndOfficersMember__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockUnitsRSUMember_zy52wgU2jKg8" title="Employee Benefits and Share-Based Compensation">44,998</span> in stock-based compensation expense related to these awards.</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Jesse Stepler</b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0.5in; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">On April 19, 2021, the Board approved, in connection with the Measure Acquisition, an award of <span class="xdx_phnt_RGlzY2xvc3VyZSAtIFN0b2NraG9sZGVyc5IgRXF1aXR5IChEZXRhaWxzIE5hcnJhdGl2ZSA1KQA_" id="xdx_90C_eus-gaap--CommonStockDividendsShares_c20210419__20210419__srt--TitleOfIndividualAxis__custom--DirectorsAndOfficersMember__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--JesseSteplerMember_zApfq6n0bJr9" title="Award payment shares">10,000</span> RSUs to Mr. Jesse Stepler upon his appointment of as senior management of Measure. The Company determined the fair market value of these RSUs to be $<span class="xdx_phnt_RGlzY2xvc3VyZSAtIFN0b2NraG9sZGVyc5IgRXF1aXR5IChEZXRhaWxzIE5hcnJhdGl2ZSA1KQA_" id="xdx_905_ecustom--FairMarketValues_c20210419__20210419__srt--TitleOfIndividualAxis__custom--DirectorsAndOfficersMember__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--JesseSteplerMember_zYLucBqEFxBd" title="Fair market values">54,000</span> based on the market price of the Company’s Common Stock on the date of grant. These RSUs vest equally on a pro-rata basis over one year of continued employment. For the year ended December 31, 2021, the Company recognized $<span class="xdx_phnt_RGlzY2xvc3VyZSAtIFN0b2NraG9sZGVyc5IgRXF1aXR5IChEZXRhaWxzIE5hcnJhdGl2ZSA1KQA_" id="xdx_907_eus-gaap--EmployeeBenefitsAndShareBasedCompensation_c20210101__20211231__srt--TitleOfIndividualAxis__custom--DirectorsAndOfficersMember__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--JesseSteplerMember_zwk6ujnp9ITb" title="Stock-based compensation expense">37,824</span> in stock-based compensation expenses related to this award.</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>AGEAGLE AERIAL SYSTEMS INC. AND SUBSIDIARIES </b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>NOTES TO CONSOLIDATED FINANCIAL STATEMENTS</b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>FOR THE YEARS ENDED DECEMBER 31, 2022 AND 2021</b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Note 10 – Equity-Continued</b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Issuances to Current Officers of Company</b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0.5in; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">On April 11, 2022, the Company granted an officer <span class="xdx_phnt_RGlzY2xvc3VyZSAtIFN0b2NraG9sZGVyc5IgRXF1aXR5IChEZXRhaWxzIE5hcnJhdGl2ZSA2KQA_" id="xdx_904_eus-gaap--RestrictedStockSharesIssuedNetOfSharesForTaxWithholdings_c20220411__20220411__srt--TitleOfIndividualAxis__srt--OfficerMember_zIUNgM7UBtQk" title="Restricted Stock Units granted shares">46,367</span> RSUs, which vested immediately. For the year ended December 31, 2022, the Company recognized stock-based compensation expense of $<span class="xdx_phnt_RGlzY2xvc3VyZSAtIFN0b2NraG9sZGVyc5IgRXF1aXR5IChEZXRhaWxzIE5hcnJhdGl2ZSA2KQA_" id="xdx_90F_eus-gaap--EmployeeBenefitsAndShareBasedCompensation_c20220101__20221231__srt--TitleOfIndividualAxis__srt--OfficerMember_zjTNC5VGT357" title="Employee Benefits and Share-Based Compensation">46,831</span>, based upon the market price of its Common Stock of $<span class="xdx_phnt_RGlzY2xvc3VyZSAtIFN0b2NraG9sZGVyc5IgRXF1aXR5IChEZXRhaWxzIE5hcnJhdGl2ZSA2KQA_" id="xdx_909_eus-gaap--ShareBasedCompensationArrangementsByShareBasedPaymentAwardOptionsExercisesInPeriodWeightedAverageExercisePrice_pid_c20220101__20221231__srt--TitleOfIndividualAxis__srt--OfficerMember_zhDl2nZxs524" title="Exercise price">1.01</span> per share on the date of grant of these RSUs. Additionally, on the same date, the Company granted the same officer <span class="xdx_phnt_RGlzY2xvc3VyZSAtIFN0b2NraG9sZGVyc5IgRXF1aXR5IChEZXRhaWxzIE5hcnJhdGl2ZSA2KQA_" id="xdx_90A_eus-gaap--RestrictedStockSharesIssuedNetOfSharesForTaxWithholdings_c20220411__20220411__srt--TitleOfIndividualAxis__srt--OfficerMember_zPkILUxWBA75" title="Restricted Stock Units granted shares">46,367</span> RSUs, which vests over a period from the date of grant through the first anniversary of the senseFly Acquisition Date. For year ended December 31, 2022, the Company recognized stock-based compensation expense of $<span class="xdx_phnt_RGlzY2xvc3VyZSAtIFN0b2NraG9sZGVyc5IgRXF1aXR5IChEZXRhaWxzIE5hcnJhdGl2ZSA2KQA_" id="xdx_900_eus-gaap--EmployeeBenefitsAndShareBasedCompensation_c20220101__20221231__srt--TitleOfIndividualAxis__srt--OfficerMember_zvj40DiPEiD5" title="Employee Benefits and Share-Based Compensation">46,831</span>, based upon the market price of its Common Stock of $<span class="xdx_phnt_RGlzY2xvc3VyZSAtIFN0b2NraG9sZGVyc5IgRXF1aXR5IChEZXRhaWxzIE5hcnJhdGl2ZSA2KQA_" id="xdx_90C_eus-gaap--ShareBasedCompensationArrangementsByShareBasedPaymentAwardOptionsExercisesInPeriodWeightedAverageExercisePrice_pid_c20220101__20221231__srt--TitleOfIndividualAxis__srt--OfficerMember_zUziwdZd5kYj" title="Exercise price">1.01</span> per share on the date of grant of these RSUs.</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0.5in; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">On March 1, 2022, upon recommendation of the Compensation Committee of the Board (“Compensation Committee”) the Board, in connection 2021 executive compensation plan granted an officer of the Company was granted <span class="xdx_phnt_RGlzY2xvc3VyZSAtIFN0b2NraG9sZGVyc5IgRXF1aXR5IChEZXRhaWxzIE5hcnJhdGl2ZSA2KQA_" id="xdx_901_eus-gaap--RestrictedStockSharesIssuedNetOfSharesForTaxWithholdings_c20220301__20220301__srt--TitleOfIndividualAxis__srt--OfficerMember__us-gaap--TypeOfArrangementAxis__custom--CompensationPlanMember_znpumkeHLyX7" title="Restricted Stock Units granted shares">62,500</span> RSUs, which vested immediately. For the year ended December 31, 2022, the Company recognized stock-based compensation expense of $<span class="xdx_phnt_RGlzY2xvc3VyZSAtIFN0b2NraG9sZGVyc5IgRXF1aXR5IChEZXRhaWxzIE5hcnJhdGl2ZSA2KQA_" id="xdx_90B_eus-gaap--EmployeeBenefitsAndShareBasedCompensation_c20220101__20221231__srt--TitleOfIndividualAxis__srt--OfficerMember__us-gaap--TypeOfArrangementAxis__custom--CompensationPlanMember_z2nT7ndwADCa" title="Employee Benefits and Share-Based Compensation">68,750</span>, based upon the market price of its Common Stock of $<span class="xdx_phnt_RGlzY2xvc3VyZSAtIFN0b2NraG9sZGVyc5IgRXF1aXR5IChEZXRhaWxzIE5hcnJhdGl2ZSA2KQA_" id="xdx_90C_eus-gaap--ShareBasedCompensationArrangementsByShareBasedPaymentAwardOptionsExercisesInPeriodWeightedAverageExercisePrice_c20220101__20221231__srt--TitleOfIndividualAxis__srt--OfficerMember__us-gaap--TypeOfArrangementAxis__custom--CompensationPlanMember_zrnCfzKBXfQ3" title="Exercise price">1.10</span> per share on the date of grant of these RSUs.</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0.5in; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">On January 1, 2022, upon recommendation of the Compensation Committee, the Board issued to an officer two grants of <span class="xdx_phnt_RGlzY2xvc3VyZSAtIFN0b2NraG9sZGVyc5IgRXF1aXR5IChEZXRhaWxzIE5hcnJhdGl2ZSA2KQA_" id="xdx_906_eus-gaap--RestrictedStockSharesIssuedNetOfSharesForTaxWithholdings_c20220101__20220102__srt--TitleOfIndividualAxis__srt--OfficerMember__us-gaap--AwardTypeAxis__custom--JanuaryOneTwoThausandTwentyTwoMember_zlezvqYmwdwe" title="Restricted Stock Units granted shares">50,000</span> RSUs each, in connection with a bonus way forward plan. These two grants vest over nine and twenty-one months, respectively, from the date of grant. For the year ended December 31, 2022, the Company recognized stock-based compensation expense of $<span class="xdx_phnt_RGlzY2xvc3VyZSAtIFN0b2NraG9sZGVyc5IgRXF1aXR5IChEZXRhaWxzIE5hcnJhdGl2ZSA2KQA_" id="xdx_90C_eus-gaap--EmployeeBenefitsAndShareBasedCompensation_c20220101__20221231__srt--TitleOfIndividualAxis__srt--OfficerMember__us-gaap--AwardTypeAxis__custom--JanuaryOneTwoThausandTwentyTwoMember_zn8SU31gdvE3" title="Employee Benefits and Share-Based Compensation">44,840</span> and $<span class="xdx_phnt_RGlzY2xvc3VyZSAtIFN0b2NraG9sZGVyc5IgRXF1aXR5IChEZXRhaWxzIE5hcnJhdGl2ZSA2KQA_" id="xdx_907_ecustom--FairMarketValues_c20220101__20221231__srt--TitleOfIndividualAxis__srt--OfficerMember__us-gaap--AwardTypeAxis__custom--JanuaryOneTwoThausandTwentyTwoMember_zaWuK3uF0yfc" title="Fair market values">78,500</span>, based upon the market price of its Common Stock of $<span class="xdx_phnt_RGlzY2xvc3VyZSAtIFN0b2NraG9sZGVyc5IgRXF1aXR5IChEZXRhaWxzIE5hcnJhdGl2ZSA2KQA_" id="xdx_90A_eus-gaap--ShareBasedCompensationArrangementsByShareBasedPaymentAwardOptionsExercisesInPeriodWeightedAverageExercisePrice_c20220101__20221231__srt--TitleOfIndividualAxis__srt--OfficerMember__us-gaap--AwardTypeAxis__custom--JanuaryOneTwoThausandTwentyTwoMember_zzTgYBuBM4K4" title="Exercise price">1.57</span> per share on the date of grant of these RSUs.</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0.5in; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">On November 1, 2021, upon recommendation of the Compensation Committee, the Board issued to Ms. Nicole Fernandez-McGovern, CFO and EVP of Operations of the Company, a grant of <span class="xdx_phnt_RGlzY2xvc3VyZSAtIFN0b2NraG9sZGVyc5IgRXF1aXR5IChEZXRhaWxzIE5hcnJhdGl2ZSA2KQA_" id="xdx_908_eus-gaap--RestrictedStockSharesIssuedNetOfSharesForTaxWithholdings_c20211101__20211101__srt--TitleOfIndividualAxis__srt--OfficerMember__us-gaap--AwardTypeAxis__custom--NovemberOneTwoThousandTwentyOneMember_zLGHfZEX86lk" title="Restricted Stock Units granted shares">75,000</span> RSUs in connection with senseFly Acquisition achievement. The Company determined the fair market value of these RSUs to be $<span class="xdx_phnt_RGlzY2xvc3VyZSAtIFN0b2NraG9sZGVyc5IgRXF1aXR5IChEZXRhaWxzIE5hcnJhdGl2ZSA2KQA_" id="xdx_902_ecustom--FairMarketValues_c20211101__20211101__srt--TitleOfIndividualAxis__srt--OfficerMember__us-gaap--AwardTypeAxis__custom--NovemberOneTwoThousandTwentyOneMember_zilizqYYDqh8" title="Fair market values">220,500</span> based on the market price of the Company’s Common Stock on the grant date of $<span class="xdx_phnt_RGlzY2xvc3VyZSAtIFN0b2NraG9sZGVyc5IgRXF1aXR5IChEZXRhaWxzIE5hcnJhdGl2ZSA2KQA_" id="xdx_906_eus-gaap--ShareBasedCompensationArrangementsByShareBasedPaymentAwardOptionsExercisesInPeriodWeightedAverageExercisePrice_c20211101__20211101__srt--TitleOfIndividualAxis__srt--OfficerMember__us-gaap--AwardTypeAxis__custom--NovemberOneTwoThousandTwentyOneMember_zHS7JYvq8jNa" title="Exercise price">2.94</span>. For the year ended December 31, 2022, the Company recognized $<span class="xdx_phnt_RGlzY2xvc3VyZSAtIFN0b2NraG9sZGVyc5IgRXF1aXR5IChEZXRhaWxzIE5hcnJhdGl2ZSA2KQA_" id="xdx_909_eus-gaap--EmployeeBenefitsAndShareBasedCompensation_c20220101__20221231__srt--TitleOfIndividualAxis__srt--OfficerMember__us-gaap--AwardTypeAxis__custom--NovemberOneTwoThousandTwentyOneMember_z2Lz6zFp9so6" title="Employee Benefits and Share-Based Compensation">146,951</span> in stock-based compensation expense related to the RSU awards. For the year ended December 31, 2021, the Company recognized $<span class="xdx_phnt_RGlzY2xvc3VyZSAtIFN0b2NraG9sZGVyc5IgRXF1aXR5IChEZXRhaWxzIE5hcnJhdGl2ZSA2KQA_" id="xdx_90C_eus-gaap--EmployeeBenefitsAndShareBasedCompensation_c20210101__20211231__srt--TitleOfIndividualAxis__srt--OfficerMember__us-gaap--AwardTypeAxis__custom--NovemberOneTwoThousandTwentyOneMember_zSH7pEOMEZs3" title="Employee Benefits and Share-Based Compensation">72,362</span> in stock-based compensation expense related to the RSU awards.</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0.5in; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">On May 4, 2021, upon recommendation of the Compensation Committee, the Board issued to Ms. Fernandez-McGovern of <span class="xdx_phnt_RGlzY2xvc3VyZSAtIFN0b2NraG9sZGVyc5IgRXF1aXR5IChEZXRhaWxzIE5hcnJhdGl2ZSA2KQA_" id="xdx_902_eus-gaap--RestrictedStockSharesIssuedNetOfSharesForTaxWithholdings_c20210504__20210504__srt--TitleOfIndividualAxis__srt--OfficerMember__us-gaap--AwardTypeAxis__custom--MayFourTwoThousndTwentyOneMember_zRhZalCKWFCd" title="Restricted Stock Units granted shares">111,250</span> RSUs, which vested immediately in connection with 2020 Compensation Plan. These RSUs were valued at, and for the year ended December 31, 2021, and the Company recognized stock-based compensation expense of $<span class="xdx_phnt_RGlzY2xvc3VyZSAtIFN0b2NraG9sZGVyc5IgRXF1aXR5IChEZXRhaWxzIE5hcnJhdGl2ZSA2KQA_" id="xdx_904_eus-gaap--EmployeeBenefitsAndShareBasedCompensation_c20210101__20211231__srt--TitleOfIndividualAxis__srt--OfficerMember__us-gaap--AwardTypeAxis__custom--MayFourTwoThousndTwentyOneMember_zjKoBhma1eT1" title="Employee Benefits and Share-Based Compensation">640,800</span> based upon the market price of the Company’s Common Stock of $<span class="xdx_phnt_RGlzY2xvc3VyZSAtIFN0b2NraG9sZGVyc5IgRXF1aXR5IChEZXRhaWxzIE5hcnJhdGl2ZSA2KQA_" id="xdx_900_eus-gaap--ShareBasedCompensationArrangementsByShareBasedPaymentAwardOptionsExercisesInPeriodWeightedAverageExercisePrice_c20210101__20211231__srt--TitleOfIndividualAxis__srt--OfficerMember__us-gaap--AwardTypeAxis__custom--MayFourTwoThousndTwentyOneMember_zOYy2V7Y6t62" title="Exercise price">5.76</span> per share on the date of grant of these RSUs.</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0.5in; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">On April 19, 2021, the Board, upon recommendation of the Compensation Committee, approved awards of <span class="xdx_phnt_RGlzY2xvc3VyZSAtIFN0b2NraG9sZGVyc5IgRXF1aXR5IChEZXRhaWxzIE5hcnJhdGl2ZSA2KQA_" id="xdx_907_eus-gaap--RestrictedStockSharesIssuedNetOfSharesForTaxWithholdings_c20210419__20210419__srt--TitleOfIndividualAxis__srt--OfficerMember__us-gaap--AwardTypeAxis__custom--AprilNineteenTwoThousandTwentyOneMember_zawMXhI4iU7h" title="Restricted Stock Units granted shares">125,000</span> RSUs to Ms. Fernandez-McGovern in accordance with her applicable amended respective employment letters. The Company determined the fair market value of these RSUs to be $<span class="xdx_phnt_RGlzY2xvc3VyZSAtIFN0b2NraG9sZGVyc5IgRXF1aXR5IChEZXRhaWxzIE5hcnJhdGl2ZSA2KQA_" id="xdx_904_ecustom--FairMarketValues_c20210419__20210419__srt--TitleOfIndividualAxis__srt--OfficerMember__us-gaap--AwardTypeAxis__custom--AprilNineteenTwoThousandTwentyOneMember_zkIjwvytFV31" title="Fair market values">675,000</span> based on the market price of the Company’s Common Stock on the date of grant of $<span class="xdx_phnt_RGlzY2xvc3VyZSAtIFN0b2NraG9sZGVyc5IgRXF1aXR5IChEZXRhaWxzIE5hcnJhdGl2ZSA2KQA_" id="xdx_90F_eus-gaap--ShareBasedCompensationArrangementsByShareBasedPaymentAwardOptionsExercisesInPeriodWeightedAverageExercisePrice_c20210419__20210419__srt--TitleOfIndividualAxis__srt--OfficerMember__us-gaap--AwardTypeAxis__custom--AprilNineteenTwoThousandTwentyOneMember_z92lcE3j9NOi" title="Exercise price">5.40</span>. These RSUs vest equally on a pro-rata basis over one year of continued employment. For the year ended December 31, 2022, the Company recognized $<span class="xdx_phnt_RGlzY2xvc3VyZSAtIFN0b2NraG9sZGVyc5IgRXF1aXR5IChEZXRhaWxzIE5hcnJhdGl2ZSA2KQA_" id="xdx_906_eus-gaap--EmployeeBenefitsAndShareBasedCompensation_c20220101__20221231__srt--TitleOfIndividualAxis__srt--OfficerMember__us-gaap--AwardTypeAxis__custom--AprilNineteenTwoThousandTwentyOneMember_z9u8fRyW6GOg" title="Employee Benefits and Share-Based Compensation">202,147</span> in stock-based compensation expense related to the RSU awards. For the year ended December 31, 2021, the Company recognized $<span class="xdx_phnt_RGlzY2xvc3VyZSAtIFN0b2NraG9sZGVyc5IgRXF1aXR5IChEZXRhaWxzIE5hcnJhdGl2ZSA2KQA_" id="xdx_902_eus-gaap--EmployeeBenefitsAndShareBasedCompensation_c20210101__20211231__srt--TitleOfIndividualAxis__srt--OfficerMember__us-gaap--AwardTypeAxis__custom--AprilNineteenTwoThousandTwentyOneMember_zNHlG1SQhhc4" title="Employee Benefits and Share-Based Compensation">472,853</span> in stock-based compensation expense related to the RSU awards.</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>AGEAGLE AERIAL SYSTEMS INC. AND SUBSIDIARIES </b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>NOTES TO CONSOLIDATED FINANCIAL STATEMENTS</b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>FOR THE YEARS ENDED DECEMBER 31, 2022 AND 2021</b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Note 10 – Equity-Continued</b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i>Stock Options</i></b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p id="xdx_891_eus-gaap--ScheduleOfShareBasedCompensationStockOptionsActivityTableTextBlock_zgRtMckprvp8" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0.5in; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">For the year ended December 31, 2022, a summary of the options activity is as follows:</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> <span id="xdx_8BD_zwElFpqjqFoc" style="display: none">Summary of Options Activity</span></span></span></p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td><span style="-sec-ix-redline: true"> </span></td><td style="font-weight: bold; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"><span style="-sec-ix-redline: true">Shares</span></td><td style="padding-bottom: 1.5pt; font-weight: bold"><span style="-sec-ix-redline: true"> </span></td><td style="font-weight: bold; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"><span style="-sec-ix-redline: true">Weighted Average Exercise Price</span></td><td style="padding-bottom: 1.5pt; font-weight: bold"><span style="-sec-ix-redline: true"> </span></td><td style="font-weight: bold; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"><span style="-sec-ix-redline: true">Weighted Average Fair Value</span></td><td style="padding-bottom: 1.5pt; font-weight: bold"><span style="-sec-ix-redline: true"> </span></td><td style="font-weight: bold; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"><span style="-sec-ix-redline: true">Weighted Average Remaining Contractual Term (Years)</span></td><td style="padding-bottom: 1.5pt; font-weight: bold"><span style="-sec-ix-redline: true"> </span></td><td style="font-weight: bold; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"><span style="-sec-ix-redline: true">Aggregate Intrinsic Value</span></td><td style="padding-bottom: 1.5pt; font-weight: bold"><span style="-sec-ix-redline: true"> </span></td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 35%"><span style="-sec-ix-redline: true">Outstanding as of December 31, 2021</span></td><td style="width: 2%"><span style="-sec-ix-redline: true"> </span></td> <td style="width: 1%; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td id="xdx_982_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingNumber_iS_c20220101__20221231_zq0rNJYv3RQf" style="width: 9%; text-align: right" title="Number of shares,Beginning"><span style="-sec-ix-redline: true">2,541,667</span></td><td style="width: 1%; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="width: 2%"><span style="-sec-ix-redline: true"> </span></td> <td style="width: 1%; text-align: left"><span style="-sec-ix-redline: true">$</span></td><td id="xdx_981_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingWeightedAverageExercisePrice_iS_c20220101__20221231_zE2TkOEyY2v4" style="width: 9%; text-align: right" title="Weighted average exercise price,Beginning"><span style="-sec-ix-redline: true">2.88</span></td><td style="width: 1%; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="width: 2%"><span style="-sec-ix-redline: true"> </span></td> <td style="width: 1%; text-align: left"><span style="-sec-ix-redline: true">$</span></td><td id="xdx_985_eus-gaap--SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsNonvestedWeightedAverageGrantDateFairValue_iS_c20220101__20221231_zCzukWwRX41g" style="width: 9%; text-align: right" title="Weighted average fair value,Beginning"><span style="-sec-ix-redline: true">1.57</span></td><td style="width: 1%; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="width: 2%"><span style="-sec-ix-redline: true"> </span></td> <td style="width: 1%; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="width: 9%; text-align: right"><span style="-sec-ix-redline: true"><span id="xdx_909_eus-gaap--SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsOutstandingWeightedAverageRemainingContractualTerm2_dtY_c20210101__20211231_zb3MYmVE6hp6" title="Weighted average remaining contractual term,Beginning">4.27</span></span></td><td style="width: 1%; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="width: 2%"><span style="-sec-ix-redline: true"> </span></td> <td style="width: 1%; text-align: left"><span style="-sec-ix-redline: true">$</span></td><td id="xdx_985_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingIntrinsicValue_iS_c20220101__20221231_zWKJCkyS0819" style="width: 9%; text-align: right" title="Aggregate intrinsic value, Beginning"><span style="-sec-ix-redline: true">1,244,029</span></td><td style="width: 1%; text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> <tr style="vertical-align: bottom; background-color: White"> <td><span style="-sec-ix-redline: true">Granted</span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td id="xdx_981_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsGrantsInPeriodGross_c20220101__20221231_zerTbq1NmUpe" style="text-align: right" title="Number of shares,Granted"><span style="-sec-ix-redline: true">512,065</span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td id="xdx_984_eus-gaap--ShareBasedCompensationArrangementsByShareBasedPaymentAwardOptionsGrantsInPeriodWeightedAverageExercisePrice_c20220101__20221231_zEWB7d2MIjv6" style="text-align: right" title="Weighted average exercise price,Granted"><span style="-sec-ix-redline: true">0.66</span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td id="xdx_983_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsGrantsInPeriodWeightedAverageGrantDateFairValue_c20220101__20221231_zi6C0cMtwo8b" style="text-align: right" title="Weighted average fair value,Granted"><span style="-sec-ix-redline: true">0.32</span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true"><span id="xdx_90F_ecustom--SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsOutstandingWeightedAverageRemainingContractualTermGranted_dtY_c20220101__20221231_zaHV7Bb6K6y" title="Weighted average remaining contractual term,Granted">3.02</span></span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true">—</span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td><span style="-sec-ix-redline: true">Exercised</span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td id="xdx_987_eus-gaap--StockIssuedDuringPeriodSharesStockOptionsExercised_iN_di_c20220101__20221231_zwiaioLBGWac" style="text-align: right" title="Number of shares,Exercised"><span style="-sec-ix-redline: true">(185,000</span></td><td style="text-align: left"><span style="-sec-ix-redline: true">)</span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td id="xdx_986_eus-gaap--ShareBasedCompensationArrangementsByShareBasedPaymentAwardOptionsExercisesInPeriodWeightedAverageExercisePrice_c20220101__20221231_zziUuq3CnGC5" style="text-align: right" title="Weighted average exercise price,Exercised"><span style="-sec-ix-redline: true">0.40</span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td id="xdx_988_ecustom--SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsExercisedWeightedAverageGrantDateFairValue_c20220101__20221231_z0Dwsmcgl2K5" style="text-align: right" title="Weighted average fair value,Exercised"><span style="-sec-ix-redline: true">0.29</span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true">—</span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true">—</span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-bottom: 1.5pt"><span style="-sec-ix-redline: true">Expired/Forfeited</span></td><td style="padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 1.5pt solid; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td id="xdx_98F_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsForfeituresAndExpirationsInPeriod_iN_di_c20220101__20221231_zPTdQ8h7ATC3" style="border-bottom: Black 1.5pt solid; text-align: right" title="Number of shares,Expired/Forfeited"><span style="-sec-ix-redline: true">(307,501</span></td><td style="padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true">)</span></td><td style="padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 1.5pt solid; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td id="xdx_988_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsForfeituresAndExpirationsInPeriodWeightedAverageExercisePrice_c20220101__20221231_zpNY01VzNR05" style="border-bottom: Black 1.5pt solid; text-align: right" title="Weighted average exercise price,Expired/Forfeited"><span style="-sec-ix-redline: true">6.47</span></td><td style="padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 1.5pt solid; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td id="xdx_986_eus-gaap--SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsNonvestedOptionsForfeitedWeightedAverageGrantDateFairValue_c20220101__20221231_zZiEW6OEDEn" style="border-bottom: Black 1.5pt solid; text-align: right" title="Weighted average fair value,Expired/Forfeited"><span style="-sec-ix-redline: true">3.46</span></td><td style="padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 1.5pt solid; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="border-bottom: Black 1.5pt solid; text-align: right"><span style="-sec-ix-redline: true">—</span></td><td style="padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 1.5pt solid; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="border-bottom: Black 1.5pt solid; text-align: right"><span style="-sec-ix-redline: true">—</span></td><td style="padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-bottom: 2.5pt"><span style="-sec-ix-redline: true">Outstanding as of December 31, 2022</span></td><td style="padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 2.5pt double; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td id="xdx_98F_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingNumber_iE_c20220101__20221231_zw71Vm2czYCb" style="border-bottom: Black 2.5pt double; text-align: right" title="Number of shares,Ending"><span style="-sec-ix-redline: true">2,561,231</span></td><td style="padding-bottom: 2.5pt; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 2.5pt double; text-align: left"><span style="-sec-ix-redline: true">$</span></td><td id="xdx_984_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingWeightedAverageExercisePrice_iE_c20220101__20221231_zg8AT9nqfnzg" style="border-bottom: Black 2.5pt double; text-align: right" title="Weighted average exercise price,Ending"><span style="-sec-ix-redline: true">2.18</span></td><td style="padding-bottom: 2.5pt; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 2.5pt double; text-align: left"><span style="-sec-ix-redline: true">$</span></td><td id="xdx_98B_eus-gaap--SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsNonvestedWeightedAverageGrantDateFairValue_iE_c20220101__20221231_zkMzT0emcLfj" style="border-bottom: Black 2.5pt double; text-align: right" title="Weighted average fair value,Ending"><span style="-sec-ix-redline: true">1.19</span></td><td style="padding-bottom: 2.5pt; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 2.5pt double; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="border-bottom: Black 2.5pt double; text-align: right"><span style="-sec-ix-redline: true"><span id="xdx_901_eus-gaap--SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsOutstandingWeightedAverageRemainingContractualTerm2_dtY_c20220101__20221231_zzN6SSfo6ZKj" title="Weighted average remaining contractual term, Ending">3.33</span></span></td><td style="padding-bottom: 2.5pt; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 2.5pt double; text-align: left"><span style="-sec-ix-redline: true">$</span></td><td id="xdx_989_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingIntrinsicValue_iE_c20220101__20221231_zKI9nm8h2oh" style="border-bottom: Black 2.5pt double; text-align: right" title="Aggregate intrinsic value, Ending"><span style="-sec-ix-redline: true">31,124</span></td><td style="padding-bottom: 2.5pt; text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-bottom: 2.5pt"><span style="-sec-ix-redline: true">Exercisable as of December 31, 2022</span></td><td style="padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 2.5pt double; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td id="xdx_985_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsExercisableNumber_iI_c20221231_zbgQZugLnOr8" style="border-bottom: Black 2.5pt double; text-align: right" title="Number of shares,Exercisable"><span style="-sec-ix-redline: true">2,046,309</span></td><td style="padding-bottom: 2.5pt; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 2.5pt double; text-align: left"><span style="-sec-ix-redline: true">$</span></td><td id="xdx_987_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsExercisableWeightedAverageExercisePrice_iI_c20221231_zQv6BXtZqAk3" style="border-bottom: Black 2.5pt double; text-align: right" title="Weighted average exercise price,Exercisable"><span style="-sec-ix-redline: true">2.37</span></td><td style="padding-bottom: 2.5pt; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 2.5pt double; text-align: left"><span style="-sec-ix-redline: true">$</span></td><td id="xdx_98F_ecustom--SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsExercisableWeightedAverageFairValue_iI_c20221231_zjOuPuRsuGUc" style="border-bottom: Black 2.5pt double; text-align: right" title="Weighted average fair value,Exercisable"><span style="-sec-ix-redline: true">1.30</span></td><td style="padding-bottom: 2.5pt; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 2.5pt double; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="border-bottom: Black 2.5pt double; text-align: right"><span style="-sec-ix-redline: true"><span id="xdx_906_eus-gaap--SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsExercisableWeightedAverageRemainingContractualTerm1_dtY_c20220101__20221231_zjSj1FiySOq2" title="Weighted average remaining contractual term, Exercisable">3.06</span></span></td><td style="padding-bottom: 2.5pt; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 2.5pt double; text-align: left"><span style="-sec-ix-redline: true">$</span></td><td id="xdx_985_eus-gaap--SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsExercisableIntrinsicValue1_iI_c20221231_zCmnSGccgU57" style="border-bottom: Black 2.5pt double; text-align: right" title="Aggregate intrinsic value, Exercisable"><span style="-sec-ix-redline: true">31,124</span></td><td style="padding-bottom: 2.5pt; text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> </table> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0.5in; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0.5in; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">As of December 31, 2022, the Company has $<span class="xdx_phnt_RGlzY2xvc3VyZSAtIFN0b2NraG9sZGVyc5IgRXF1aXR5IChEZXRhaWxzIE5hcnJhdGl2ZSA2KQA_" id="xdx_90F_eus-gaap--EmployeeServiceShareBasedCompensationNonvestedAwardsTotalCompensationCostNotYetRecognized_iI_c20221231__us-gaap--AwardTypeAxis__us-gaap--EmployeeStockOptionMember_zxND0gXaezJ4" title="Unrecognized stock-based compensation expense">376,797</span> of total unrecognized compensation cost related to stock options, which will be amortized over approximately twenty-four months. During the year ended December 31, 2022, the Company recognized $<span class="xdx_phnt_RGlzY2xvc3VyZSAtIFN0b2NraG9sZGVyc5IgRXF1aXR5IChEZXRhaWxzIE5hcnJhdGl2ZSA2KQA_" id="xdx_902_eus-gaap--AllocatedShareBasedCompensationExpense_c20220101__20221231__us-gaap--AwardTypeAxis__us-gaap--EmployeeStockOptionMember_z9e8WNfgIYdg" title="Stock compensation expense">1,640,430</span> of stock compensation related to stock options.</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0.5in; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Intrinsic value is measured using the fair market value at the date of exercise (for shares exercised) or as of December 31, 2022 (for outstanding options), less the applicable exercise price.</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>AGEAGLE AERIAL SYSTEMS INC. AND SUBSIDIARIES </b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>NOTES TO CONSOLIDATED FINANCIAL STATEMENTS</b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>FOR THE YEARS ENDED DECEMBER 31, 2022 AND 2021</b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Note 10 – Equity-Continued</b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0.5in; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">For the year ended December 31, 2021, a summary of the options activity is as follows:</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td><span style="-sec-ix-redline: true"> </span></td><td style="font-weight: bold; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"><span style="-sec-ix-redline: true">Shares</span></td><td style="padding-bottom: 1.5pt; font-weight: bold"><span style="-sec-ix-redline: true"> </span></td><td style="font-weight: bold; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"><span style="-sec-ix-redline: true">Weighted Average Exercise Price</span></td><td style="padding-bottom: 1.5pt; font-weight: bold"><span style="-sec-ix-redline: true"> </span></td><td style="font-weight: bold; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"><span style="-sec-ix-redline: true">Weighted Average Fair Value</span></td><td style="padding-bottom: 1.5pt; font-weight: bold"><span style="-sec-ix-redline: true"> </span></td><td style="font-weight: bold; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"><span style="-sec-ix-redline: true">Weighted Average Remaining Contractual Term (Years)</span></td><td style="padding-bottom: 1.5pt; font-weight: bold"><span style="-sec-ix-redline: true"> </span></td><td style="font-weight: bold; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"><span style="-sec-ix-redline: true">Aggregate Intrinsic Value</span></td><td style="padding-bottom: 1.5pt; font-weight: bold"><span style="-sec-ix-redline: true"> </span></td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 35%"><span style="-sec-ix-redline: true">Outstanding as of December 31, 2020</span></td><td style="width: 2%"><span style="-sec-ix-redline: true"> </span></td> <td style="width: 1%; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td id="xdx_980_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingNumber_iS_c20210101__20211231_zZRK10gORf5" style="width: 9%; text-align: right" title="Number of shares,Beginning"><span style="-sec-ix-redline: true">2,255,267</span></td><td style="width: 1%; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="width: 2%"><span style="-sec-ix-redline: true"> </span></td> <td style="width: 1%; text-align: left"><span style="-sec-ix-redline: true">$</span></td><td id="xdx_98F_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingWeightedAverageExercisePrice_iS_c20210101__20211231_zjfxwpOUVjNg" style="width: 9%; text-align: right" title="Weighted average exercise price,Beginning"><span style="-sec-ix-redline: true">1.46</span></td><td style="width: 1%; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="width: 2%"><span style="-sec-ix-redline: true"> </span></td> <td style="width: 1%; text-align: left"><span style="-sec-ix-redline: true">$</span></td><td id="xdx_987_eus-gaap--SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsNonvestedWeightedAverageGrantDateFairValue_iS_c20210101__20211231_zLr9rVXjAtWc" style="width: 9%; text-align: right" title="Weighted average fair value,Beginning"><span style="-sec-ix-redline: true">0.82</span></td><td style="width: 1%; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="width: 2%"><span style="-sec-ix-redline: true"> </span></td> <td style="width: 1%; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="width: 9%; text-align: right"><span style="-sec-ix-redline: true"><span id="xdx_90F_eus-gaap--SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsOutstandingWeightedAverageRemainingContractualTerm2_dtY_c20200101__20201231_zVNxuBEPfeRd" title="Weighted average remaining contractual term,Beginning">5.31</span></span></td><td style="width: 1%; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="width: 2%"><span style="-sec-ix-redline: true"> </span></td> <td style="width: 1%; text-align: left"><span style="-sec-ix-redline: true">$</span></td><td id="xdx_98C_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingIntrinsicValue_iS_c20210101__20211231_zzWbWh67Bj6l" style="width: 9%; text-align: right" title="Aggregate intrinsic value, Beginning"><span style="-sec-ix-redline: true">10,247,548</span></td><td style="width: 1%; text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> <tr style="vertical-align: bottom; background-color: White"> <td><span style="-sec-ix-redline: true">Granted</span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td id="xdx_98A_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsGrantsInPeriodGross_c20210101__20211231_zn0lBt2oUABj" style="text-align: right" title="Number of shares,Granted"><span style="-sec-ix-redline: true">1,049,500</span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td id="xdx_98E_eus-gaap--ShareBasedCompensationArrangementsByShareBasedPaymentAwardOptionsGrantsInPeriodWeightedAverageExercisePrice_c20210101__20211231_zcAJkPFIEAL" style="text-align: right" title="Weighted average exercise price,Granted"><span style="-sec-ix-redline: true">5.31</span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td id="xdx_98B_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsGrantsInPeriodWeightedAverageGrantDateFairValue_c20210101__20211231_zNMHb28fPcq3" style="text-align: right" title="Weighted average fair value,Granted"><span style="-sec-ix-redline: true">2.85</span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true"><span id="xdx_90A_ecustom--SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsOutstandingWeightedAverageRemainingContractualTermGranted_dtY_c20210101__20211231_zqertVpm4Ar8" title="Weighted average remaining contractual term,Granted">3.01</span></span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true">—</span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td><span style="-sec-ix-redline: true">Exercised</span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td id="xdx_983_eus-gaap--StockIssuedDuringPeriodSharesStockOptionsExercised_iN_di_c20210101__20211231_zbgm4nl1tAHh" style="text-align: right" title="Number of shares,Exercised"><span style="-sec-ix-redline: true">(513,500</span></td><td style="text-align: left"><span style="-sec-ix-redline: true">)</span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td id="xdx_98F_eus-gaap--ShareBasedCompensationArrangementsByShareBasedPaymentAwardOptionsExercisesInPeriodWeightedAverageExercisePrice_c20210101__20211231_zoeQsi1Ofb31" style="text-align: right" title="Weighted average exercise price,Exercised"><span style="-sec-ix-redline: true">0.24</span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td id="xdx_985_ecustom--SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsExercisedWeightedAverageGrantDateFairValue_c20210101__20211231_zgb3hw9ykPBb" style="text-align: right" title="Weighted average fair value,Exercised"><span style="-sec-ix-redline: true">0.15</span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true">—</span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td id="xdx_98C_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsExercisesInPeriodTotalIntrinsicValue_c20210101__20211231_zGaswAQXDdj" style="text-align: right" title="Aggregate intrinsic value, Exercised"><span style="-sec-ix-redline: true">675,363</span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-bottom: 1.5pt"><span style="-sec-ix-redline: true">Expired/Forfeited</span></td><td style="padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 1.5pt solid; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td id="xdx_98F_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsForfeituresAndExpirationsInPeriod_iN_di_c20210101__20211231_zzikJatbNkSc" style="border-bottom: Black 1.5pt solid; text-align: right" title="Number of shares,Expired/Forfeited"><span style="-sec-ix-redline: true">(249,600</span></td><td style="padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true">)</span></td><td style="padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 1.5pt solid; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td id="xdx_980_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsForfeituresAndExpirationsInPeriodWeightedAverageExercisePrice_c20210101__20211231_zk5XgFLU09yj" style="border-bottom: Black 1.5pt solid; text-align: right" title="Weighted average exercise price,Expired/Forfeited"><span style="-sec-ix-redline: true">5.50</span></td><td style="padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 1.5pt solid; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td id="xdx_986_eus-gaap--SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsNonvestedOptionsForfeitedWeightedAverageGrantDateFairValue_c20210101__20211231_zgzRY3Y3tgf4" style="border-bottom: Black 1.5pt solid; text-align: right" title="Weighted average fair value,Expired/Forfeited"><span style="-sec-ix-redline: true">2.96</span></td><td style="padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 1.5pt solid; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="border-bottom: Black 1.5pt solid; text-align: right"><span style="-sec-ix-redline: true">—</span></td><td style="padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 1.5pt solid; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td id="xdx_98E_ecustom--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsForfeituresAndExpirationsInPeriodTotalIntrinsicValue_c20210101__20211231_zC6DOjSZSVMk" style="border-bottom: Black 1.5pt solid; text-align: right" title="Aggregate intrinsic value, forfeitures and expirations"><span style="-sec-ix-redline: true">7,277</span></td><td style="padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-bottom: 2.5pt"><span style="-sec-ix-redline: true">Outstanding as of December 31, 2021</span></td><td style="padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 2.5pt double; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td id="xdx_98D_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingNumber_iE_c20210101__20211231_zkbxOzkLYseb" style="border-bottom: Black 2.5pt double; text-align: right" title="Number of shares,Ending"><span style="-sec-ix-redline: true">2,541,667</span></td><td style="padding-bottom: 2.5pt; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 2.5pt double; text-align: left"><span style="-sec-ix-redline: true">$</span></td><td id="xdx_989_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingWeightedAverageExercisePrice_iE_c20210101__20211231_zhTGJ9nvlLnb" style="border-bottom: Black 2.5pt double; text-align: right" title="Weighted average exercise price,Ending"><span style="-sec-ix-redline: true">2.88</span></td><td style="padding-bottom: 2.5pt; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 2.5pt double; text-align: left"><span style="-sec-ix-redline: true">$</span></td><td id="xdx_984_eus-gaap--SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsNonvestedWeightedAverageGrantDateFairValue_iE_c20210101__20211231_z9jDtbhKw6hk" style="border-bottom: Black 2.5pt double; text-align: right" title="Weighted average fair value,Ending"><span style="-sec-ix-redline: true">1.57</span></td><td style="padding-bottom: 2.5pt; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 2.5pt double; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="border-bottom: Black 2.5pt double; text-align: right"><span style="-sec-ix-redline: true"><span id="xdx_908_eus-gaap--SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsOutstandingWeightedAverageRemainingContractualTerm2_dtY_c20210101__20211231_zJf18udEAUE9" title="Weighted average remaining contractual term, Ending">4.27</span></span></td><td style="padding-bottom: 2.5pt; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 2.5pt double; text-align: left"><span style="-sec-ix-redline: true">$</span></td><td id="xdx_986_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingIntrinsicValue_iE_c20210101__20211231_zPxnSwyopOOg" style="border-bottom: Black 2.5pt double; text-align: right" title="Aggregate intrinsic value, Ending"><span style="-sec-ix-redline: true">1,244,029</span></td><td style="padding-bottom: 2.5pt; text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-bottom: 2.5pt"><span style="-sec-ix-redline: true">Exercisable as of December 31, 2021</span></td><td style="padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 2.5pt double; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td id="xdx_986_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsExercisableNumber_iI_c20211231_zxxKipRYg5bk" style="border-bottom: Black 2.5pt double; text-align: right" title="Number of shares,Exercisable"><span style="-sec-ix-redline: true">1,548,083</span></td><td style="padding-bottom: 2.5pt; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 2.5pt double; text-align: left"><span style="-sec-ix-redline: true">$</span></td><td id="xdx_982_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsExercisableWeightedAverageExercisePrice_iI_c20211231_zosSbL1qnJZh" style="border-bottom: Black 2.5pt double; text-align: right" title="Weighted average exercise price,Exercisable"><span style="-sec-ix-redline: true">1.97</span></td><td style="padding-bottom: 2.5pt; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 2.5pt double; text-align: left"><span style="-sec-ix-redline: true">$</span></td><td id="xdx_985_ecustom--SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsExercisableWeightedAverageFairValue_iI_c20211231_z7pGD26gLoE4" style="border-bottom: Black 2.5pt double; text-align: right" title="Weighted average fair value,Exercisable"><span style="-sec-ix-redline: true">1.10</span></td><td style="padding-bottom: 2.5pt; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 2.5pt double; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="border-bottom: Black 2.5pt double; text-align: right"><span style="-sec-ix-redline: true"><span id="xdx_903_eus-gaap--SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsExercisableWeightedAverageRemainingContractualTerm1_dtY_c20210101__20211231_zMUoMFV3Q4Dk" title="Weighted average remaining contractual term, Exercisable">4.14</span></span></td><td style="padding-bottom: 2.5pt; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 2.5pt double; text-align: left"><span style="-sec-ix-redline: true">$</span></td><td id="xdx_98C_eus-gaap--SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsExercisableIntrinsicValue1_iI_c20211231_zrb1jh8nhxFi" style="border-bottom: Black 2.5pt double; text-align: right" title="Aggregate intrinsic value, Exercisable"><span style="-sec-ix-redline: true">1,178,340</span></td><td style="padding-bottom: 2.5pt; text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> </table> <p id="xdx_8A6_zNdBS7J2Ijy4" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0.5in; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">As of December 31, 2021, the Company had approximately $<span class="xdx_phnt_RGlzY2xvc3VyZSAtIFN0b2NraG9sZGVyc5IgRXF1aXR5IChEZXRhaWxzIE5hcnJhdGl2ZSA2KQA_" id="xdx_903_eus-gaap--EmployeeServiceShareBasedCompensationNonvestedAwardsTotalCompensationCostNotYetRecognized_iI_c20211231__us-gaap--AwardTypeAxis__us-gaap--EmployeeStockOptionMember_zfWppvrpuUA" title="Unrecognized stock-based compensation expense">2,036,000</span> of total unrecognized compensation cost related to stock options, which will be amortized over approximately twenty-four months. During the year ended December 31, 2021, the Company recognized $<span class="xdx_phnt_RGlzY2xvc3VyZSAtIFN0b2NraG9sZGVyc5IgRXF1aXR5IChEZXRhaWxzIE5hcnJhdGl2ZSA2KQA_" id="xdx_907_eus-gaap--AllocatedShareBasedCompensationExpense_c20210101__20211231__us-gaap--AwardTypeAxis__us-gaap--EmployeeStockOptionMember_zWHphZcxldn6" title="Stock compensation expense">1,657,221</span> of stock compensation related to stock options.</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0.5in; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Intrinsic value is measured using the fair market value at the date of exercise (for shares exercised) or as of December 31, 2021 (for outstanding options), less the applicable exercise price.</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0.5in; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">For the year ended December 31, 2022, and 2021, the significant weighted average assumptions relating to the valuation of the Company’s stock options granted were as follows:</span></span></p> <p id="xdx_89C_eus-gaap--ScheduleOfShareBasedPaymentAwardStockOptionsValuationAssumptionsTableTextBlock_zWvI6Wi2ofF3" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> <span id="xdx_8B7_z9dzyONc64M5" style="display: none">Schedule of Significant Weighted Average Assumptions</span></span></span></p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="display: none; vertical-align: bottom"> <td><span style="-sec-ix-redline: true"> </span></td><td style="font-weight: bold; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td colspan="2" id="xdx_494_20220101__20221231_zpoDd50mQtp2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"><span style="-sec-ix-redline: true">2022</span></td><td style="padding-bottom: 1.5pt; font-weight: bold"><span style="-sec-ix-redline: true"> </span></td><td style="font-weight: bold; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td colspan="2" id="xdx_493_20210101__20211231_z2DhtXJrnYQl" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"><span style="-sec-ix-redline: true">2021</span></td><td style="padding-bottom: 1.5pt; font-weight: bold"><span style="-sec-ix-redline: true"> </span></td></tr> <tr style="vertical-align: bottom"> <td><span style="-sec-ix-redline: true"> </span></td><td style="font-weight: bold; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td colspan="6" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"><span style="-sec-ix-redline: true">Year Ended December 31,</span></td><td style="padding-bottom: 1.5pt; font-weight: bold"><span style="-sec-ix-redline: true"> </span></td></tr> <tr style="vertical-align: bottom"> <td><span style="-sec-ix-redline: true"> </span></td><td style="font-weight: bold; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"><span style="-sec-ix-redline: true">2022</span></td><td style="padding-bottom: 1.5pt; font-weight: bold"><span style="-sec-ix-redline: true"> </span></td><td style="font-weight: bold; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"><span style="-sec-ix-redline: true">2021</span></td><td style="padding-bottom: 1.5pt; font-weight: bold"><span style="-sec-ix-redline: true"> </span></td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 60%"><span style="-sec-ix-redline: true">Stock price</span></td><td style="width: 2%"><span style="-sec-ix-redline: true"> </span></td> <td style="width: 1%; text-align: left"><span style="-sec-ix-redline: true">$</span></td><td style="width: 16%; text-align: right"><span style="-sec-ix-redline: true"><span id="xdx_90E_eus-gaap--SharePrice_iI_c20221231_zWE9dt071njk" title="Stock price">0.66</span></span></td><td style="width: 1%; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="width: 2%"><span style="-sec-ix-redline: true"> </span></td> <td style="width: 1%; text-align: left"><span style="-sec-ix-redline: true">$</span></td><td style="width: 16%; text-align: right"><span style="-sec-ix-redline: true"><span id="xdx_907_eus-gaap--SharePrice_iI_c20211231_znkTdiVLp93f" title="Stock price">5.31</span></span></td><td style="width: 1%; text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> <tr id="xdx_401_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExpectedDividendRate_dp_zLfMEtTGYu7b" style="vertical-align: bottom; background-color: White"> <td style="text-align: left"><span style="-sec-ix-redline: true">Dividend yield</span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><span style="-sec-ix-hidden: xdx2ixbrl3989">—</span></span></span></p></td><td style="text-align: left"><span style="-sec-ix-redline: true">%</span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><span style="-sec-ix-hidden: xdx2ixbrl3990">—</span></span></span></p></td><td style="text-align: left"><span style="-sec-ix-redline: true">%</span></td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left"><span style="-sec-ix-redline: true">Expected life (years)</span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true"><span id="xdx_90E_eus-gaap--SharebasedCompensationArrangementBySharebasedPaymentAwardFairValueAssumptionsExpectedTerm1_dtY_c20220101__20221231_zaDP6byVBmu4" title="Expected life (years)">3.02</span></span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true"><span id="xdx_901_eus-gaap--SharebasedCompensationArrangementBySharebasedPaymentAwardFairValueAssumptionsExpectedTerm1_dtY_c20210101__20211231_zDAStoDbuMGi" title="Expected life (years)">3.01</span></span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> <tr id="xdx_400_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExpectedVolatilityRate_dp_z7YgsILYxjo7" style="vertical-align: bottom; background-color: White"> <td style="text-align: left"><span style="-sec-ix-redline: true">Expected volatility</span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true">69.49</span></td><td style="text-align: left"><span style="-sec-ix-redline: true">%</span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true">83.88</span></td><td style="text-align: left"><span style="-sec-ix-redline: true">%</span></td></tr> <tr id="xdx_407_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsRiskFreeInterestRate_dp_zU4BnKQK8VB4" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left"><span style="-sec-ix-redline: true">Risk-free interest rate</span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true">3.47</span></td><td style="text-align: left"><span style="-sec-ix-redline: true">%</span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true">0.47</span></td><td style="text-align: left"><span style="-sec-ix-redline: true">%</span></td></tr> </table> <p id="xdx_8A0_zw5FEK7NzIqg" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 20pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i>Issuances of Options to Officers and Directors</i></b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 45px; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">For the year ended December 31, 2022, the Company issued to directors and officers options to purchase <span class="xdx_phnt_RGlzY2xvc3VyZSAtIFN0b2NraG9sZGVyc5IgRXF1aXR5IChEZXRhaWxzIE5hcnJhdGl2ZSA2KQA_" id="xdx_906_eus-gaap--RestrictedStockSharesIssuedNetOfSharesForTaxWithholdings_c20220101__20221231__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--IssuancesOfOptionsToOfficersAndDirectorsMember_z4cKRfzNr4O4" title="Restricted stock units granted shares">512,065</span> shares of Common Stock at exercise prices ranging from $<span class="xdx_phnt_RGlzY2xvc3VyZSAtIFN0b2NraG9sZGVyc5IgRXF1aXR5IChEZXRhaWxzIE5hcnJhdGl2ZSA2KQA_" id="xdx_900_eus-gaap--ShareBasedCompensationArrangementsByShareBasedPaymentAwardOptionsExercisesInPeriodWeightedAverageExercisePrice_c20220101__20221231__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--IssuancesOfOptionsToOfficersAndDirectorsMember__srt--RangeAxis__srt--MinimumMember_zqaGGGAzWnJ4" title="Exercise price">0.17</span> to $<span class="xdx_phnt_RGlzY2xvc3VyZSAtIFN0b2NraG9sZGVyc5IgRXF1aXR5IChEZXRhaWxzIE5hcnJhdGl2ZSA2KQA_" id="xdx_90B_eus-gaap--ShareBasedCompensationArrangementsByShareBasedPaymentAwardOptionsExercisesInPeriodWeightedAverageExercisePrice_c20220101__20221231__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--IssuancesOfOptionsToOfficersAndDirectorsMember__srt--RangeAxis__srt--MaximumMember_z9z1FG2E4oGa" title="Exercise price">0.56</span> per share, which expire on dates between January 3, 2025 and December 31, 2027. The Company determined the fair market value of these unvested options to be $<span class="xdx_phnt_RGlzY2xvc3VyZSAtIFN0b2NraG9sZGVyc5IgRXF1aXR5IChEZXRhaWxzIE5hcnJhdGl2ZSA2KQA_" id="xdx_902_ecustom--FairMarketValues_c20220101__20221231__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--IssuancesOfOptionsToOfficersAndDirectorsMember_z1xtJZQowhn5" title="Fair market values">162,663</span>. In connection with the issuance of these options, the Company recognized $<span class="xdx_phnt_RGlzY2xvc3VyZSAtIFN0b2NraG9sZGVyc5IgRXF1aXR5IChEZXRhaWxzIE5hcnJhdGl2ZSA2KQA_" id="xdx_907_eus-gaap--EmployeeBenefitsAndShareBasedCompensation_c20220101__20221231__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--IssuancesOfOptionsToOfficersAndDirectorsMember__us-gaap--AwardTypeAxis__custom--DecemberTwentyTwentTwoMember_zqiNQuImXPH8" title="Stock-based compensation expense">60,515</span> in stock-based compensation expense for the year ended December 31, 2022.</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 45px; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>AGEAGLE AERIAL SYSTEMS INC. AND SUBSIDIARIES </b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>NOTES TO CONSOLIDATED FINANCIAL STATEMENTS</b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>FOR THE YEARS ENDED DECEMBER 31, 2022 AND 2021</b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Note 10 – Equity-Continued</b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0.5in; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">For the year ended December 31, 2021, the Company issued to directors and officers to purchase <span class="xdx_phnt_RGlzY2xvc3VyZSAtIFN0b2NraG9sZGVyc5IgRXF1aXR5IChEZXRhaWxzIE5hcnJhdGl2ZSA2KQA_" id="xdx_906_eus-gaap--RestrictedStockSharesIssuedNetOfSharesForTaxWithholdings_c20210101__20211231__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--IssuancesOfOptionsToOfficersAndDirectorsMember_zxSXsXbWag98" title="Restricted stock units granted shares">580,000</span> shares of Common Stock at exercise prices ranging from $<span class="xdx_phnt_RGlzY2xvc3VyZSAtIFN0b2NraG9sZGVyc5IgRXF1aXR5IChEZXRhaWxzIE5hcnJhdGl2ZSA2KQA_" id="xdx_90F_eus-gaap--ShareBasedCompensationArrangementsByShareBasedPaymentAwardOptionsExercisesInPeriodWeightedAverageExercisePrice_c20210101__20211231__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--IssuancesOfOptionsToOfficersAndDirectorsMember__srt--RangeAxis__srt--MinimumMember_zoQTgxAIhXKg" title="Exercise price">0.84</span> to $<span class="xdx_phnt_RGlzY2xvc3VyZSAtIFN0b2NraG9sZGVyc5IgRXF1aXR5IChEZXRhaWxzIE5hcnJhdGl2ZSA2KQA_" id="xdx_909_eus-gaap--ShareBasedCompensationArrangementsByShareBasedPaymentAwardOptionsExercisesInPeriodWeightedAverageExercisePrice_c20210101__20211231__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--IssuancesOfOptionsToOfficersAndDirectorsMember__srt--RangeAxis__srt--MaximumMember_zfZcggEhUFN7" title="Exercise price">3.37</span> per share, which vest over a period of two years from the date of grant and expire on dates between January 3, 2025, and December 31, 2026. The Company determined the fair market value of these unvested options to be $<span class="xdx_phnt_RGlzY2xvc3VyZSAtIFN0b2NraG9sZGVyc5IgRXF1aXR5IChEZXRhaWxzIE5hcnJhdGl2ZSA2KQA_" id="xdx_901_ecustom--FairMarketValues_c20210101__20211231__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--IssuancesOfOptionsToOfficersAndDirectorsMember_zHiSxqjYXv73" title="Fair market values">1,231,400</span>. In connection with the issuance of these options to officers and directors, for the year ended December 31, 2022, the Company recognized stock-based compensation expense of $<span class="xdx_phnt_RGlzY2xvc3VyZSAtIFN0b2NraG9sZGVyc5IgRXF1aXR5IChEZXRhaWxzIE5hcnJhdGl2ZSA2KQA_" id="xdx_904_eus-gaap--EmployeeBenefitsAndShareBasedCompensation_c20220101__20221231__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--IssuancesOfOptionsToOfficersAndDirectorsMember_zRAec379fbzc" title="Stock-based compensation expense">678,660</span>. For the year ended December 31, 2021 the Company recognized stock-based compensation expense of $<span class="xdx_phnt_RGlzY2xvc3VyZSAtIFN0b2NraG9sZGVyc5IgRXF1aXR5IChEZXRhaWxzIE5hcnJhdGl2ZSA2KQA_" id="xdx_906_eus-gaap--EmployeeBenefitsAndShareBasedCompensation_c20210101__20211231__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--IssuancesOfOptionsToOfficersAndDirectorsMember_zZ9DqqQNNmA1" title="Stock-based compensation expense">286,312</span>.</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0.5in; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Prior to January 1, 2021, the Company previously issued to directors and officers options to purchase <span class="xdx_phnt_RGlzY2xvc3VyZSAtIFN0b2NraG9sZGVyc5IgRXF1aXR5IChEZXRhaWxzIE5hcnJhdGl2ZSA2KQA_" id="xdx_900_eus-gaap--StockRepurchasedDuringPeriodShares_c20210101__20211231__us-gaap--AwardTypeAxis__custom--PriorJanuaryOneTwoThousandTwentyOneMember__us-gaap--RelatedPartyTransactionAxis__custom--OfficersAndDirectorsMember_zzoV8FnYQNok" title="Purchase shares of Common Stock">2,743,580</span> shares of Common Stock at exercise prices ranging from $<span class="xdx_phnt_RGlzY2xvc3VyZSAtIFN0b2NraG9sZGVyc5IgRXF1aXR5IChEZXRhaWxzIE5hcnJhdGl2ZSA2KQA_" id="xdx_908_eus-gaap--ShareBasedCompensationArrangementsByShareBasedPaymentAwardOptionsExercisesInPeriodWeightedAverageExercisePrice_pid_c20210101__20210102__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--OfficersAndDirectorsMember__srt--RangeAxis__srt--MinimumMember_z6KmZiwQ5z68" title="Exercise price">0.04</span> to $<span class="xdx_phnt_RGlzY2xvc3VyZSAtIFN0b2NraG9sZGVyc5IgRXF1aXR5IChEZXRhaWxzIE5hcnJhdGl2ZSA2KQA_" id="xdx_909_eus-gaap--ShareBasedCompensationArrangementsByShareBasedPaymentAwardOptionsExercisesInPeriodWeightedAverageExercisePrice_pid_c20210101__20210102__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--OfficersAndDirectorsMember__srt--RangeAxis__srt--MaximumMember_z1P7bVJrEPBl" title="Exercise price">3.18</span> per share, with vesting periods ranging from immediate vesting to periods of up to three years from the grant dates, and expire on dates between March 30, 2023, and December 29, 2029. In connection with the issuance of these options to employees and directors, for the year ended December 31, 2022, the Company recognized stock-based compensation expense of $<span class="xdx_phnt_RGlzY2xvc3VyZSAtIFN0b2NraG9sZGVyc5IgRXF1aXR5IChEZXRhaWxzIE5hcnJhdGl2ZSA2KQA_" id="xdx_909_eus-gaap--EmployeeBenefitsAndShareBasedCompensation_c20220101__20221231__us-gaap--AwardTypeAxis__custom--PriorJanuaryOneTwoThousandTwentyOneMember__us-gaap--RelatedPartyTransactionAxis__custom--OfficersAndDirectorsMember_zecEcNlJiMsh" title="Employee Benefits and Share-Based Compensation">453,356</span>, for the year ended December 31, 2021 the Company recognized stock-based compensation expense of $<span class="xdx_phnt_RGlzY2xvc3VyZSAtIFN0b2NraG9sZGVyc5IgRXF1aXR5IChEZXRhaWxzIE5hcnJhdGl2ZSA2KQA_" id="xdx_900_eus-gaap--EmployeeBenefitsAndShareBasedCompensation_c20210101__20211231__us-gaap--AwardTypeAxis__custom--PriorJanuaryOneTwoThousandTwentyOneMember__us-gaap--RelatedPartyTransactionAxis__custom--OfficersAndDirectorsMember_znx0l9NopjIe" title="Employee Benefits and Share-Based Compensation">684,950</span>.</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i>Cancellations of Options</i></b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0.5in; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">During the year ended December 31, 2022, as a result of employee terminations and options expirations, stock options aggregating <span class="xdx_phnt_RGlzY2xvc3VyZSAtIFN0b2NraG9sZGVyc5IgRXF1aXR5IChEZXRhaWxzIE5hcnJhdGl2ZSA2KQA_" id="xdx_90D_eus-gaap--StockRepurchasedDuringPeriodShares_c20220101__20221231__us-gaap--AwardTypeAxis__custom--CancellationsOfOptionsMember_zi3EbPsgef0i" title="Number of options cancelled">307,501</span>, with estimated values of approximately $<span class="xdx_phnt_RGlzY2xvc3VyZSAtIFN0b2NraG9sZGVyc5IgRXF1aXR5IChEZXRhaWxzIE5hcnJhdGl2ZSA2KQA_" id="xdx_901_ecustom--FairMarketValues_c20220101__20221231__us-gaap--AwardTypeAxis__custom--CancellationsOfOptionsMember_zPN006XpS5L1" title="Fair market values">1,063,673</span>, were cancelled. During the year ended December 31, 2021, <span class="xdx_phnt_RGlzY2xvc3VyZSAtIFN0b2NraG9sZGVyc5IgRXF1aXR5IChEZXRhaWxzIE5hcnJhdGl2ZSA2KQA_" id="xdx_903_eus-gaap--StockRepurchasedDuringPeriodShares_c20210101__20211231__us-gaap--AwardTypeAxis__custom--CancellationsOfOptionsMember_zp4we0N5OyD3" title="Number of options cancelled">257,932</span> options were cancelled with a grant-date fair value $<span class="xdx_phnt_RGlzY2xvc3VyZSAtIFN0b2NraG9sZGVyc5IgRXF1aXR5IChEZXRhaWxzIE5hcnJhdGl2ZSA2KQA_" id="xdx_901_ecustom--FairMarketValues_c20210101__20211231__us-gaap--AwardTypeAxis__custom--CancellationsOfOptionsMember_zeS1Sp9rZQA8" title="Fair market values">764,034</span> due to employee terminations.</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0.5in; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> 35000 10000 10000000 9920000 16129032 0.62 1000 0.05 16129032 0.001 0.96 10000000 25000000 4137 6804545 172596 1000 0.05 0.44 0.44 0.62 0.96 565161 1680216 2245377 P3Y 1.50 0.0377 0 0.42 4251151 1.04 1.18 4583341 141754 30868703 6313943 1057214 3355705 2516778 3.30 9900000 100000 8305368 2.98 8305368 540541 3000000 5319145 997338 24375000 997338 498669 498669 2812500 1927407 3000000 2500000 1500000 6.00 0 1407000 550000 2907000 185000 0.31 0.41 74350 505167 0.15 2.65 122970 2000000 3000000 3000000 4000000 The number of shares for which awards which are options or stock appreciation rights (“SARs”) may be granted to a participant under the Equity Plan during any calendar year is limited to 500,000. For purposes of qualifying awards as “performance-based” compensation under Code Section 162(m), the maximum amount of cash compensation that may be paid to any person under the Equity Plan in any single calendar year shall be $500,000. 4000000 10000000 The number of shares for which awards which are options or SARs may be granted to a participant under the Equity Plan during any calendar year is limited to 500,000. For purposes of qualifying awards as “performance-based” compensation under Code Section 162(m), the maximum amount of cash compensation that may be paid to any person under the Equity Plan in any single calendar year shall be $500,000. <p id="xdx_890_eus-gaap--ScheduleOfShareBasedCompensationRestrictedStockUnitsAwardActivityTableTextBlock_ziZQEYF47749" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0.5in; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">For the year ended December 31, 2022, a summary of RSU activity is as follows:</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> <span id="xdx_8BA_zI9JJwSFz0G6" style="display: none">Schedule of Restricted Stock Unit Activity</span></span></span></p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td><span style="-sec-ix-redline: true"> </span></td><td style="font-weight: bold; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"><span style="-sec-ix-redline: true">Shares</span></td><td style="padding-bottom: 1.5pt; font-weight: bold"><span style="-sec-ix-redline: true"> </span></td><td style="font-weight: bold; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"><span style="-sec-ix-redline: true">Weighted Average Grant Date Fair Value</span></td><td style="padding-bottom: 1.5pt; font-weight: bold"><span style="-sec-ix-redline: true"> </span></td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 60%"><span style="-sec-ix-redline: true">Outstanding as of December 31, 2021</span></td><td style="width: 2%"><span style="-sec-ix-redline: true"> </span></td> <td style="width: 1%; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td id="xdx_98A_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsNonvestedNumber_iS_c20220101__20221231__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockUnitsRSUMember_zZWcBYQ6iRGe" style="width: 16%; text-align: right" title="Number of shares,Beginning"><span style="-sec-ix-redline: true">1,147,250</span></td><td style="width: 1%; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="width: 2%"><span style="-sec-ix-redline: true"> </span></td> <td style="width: 1%; text-align: left"><span style="-sec-ix-redline: true">$</span></td><td id="xdx_988_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsNonvestedWeightedAverageGrantDateFairValue_iS_pid_c20220101__20221231__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockUnitsRSUMember_zyrodB7nrtz1" style="width: 16%; text-align: right" title="Weighted average grant date fair value,Beginning"><span style="-sec-ix-redline: true">3.78</span></td><td style="width: 1%; text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> <tr style="vertical-align: bottom; background-color: White"> <td><span style="-sec-ix-redline: true">Granted</span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td id="xdx_98C_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsGrantsInPeriod_c20220101__20221231__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockUnitsRSUMember_zHOufVxW7ZQ8" style="text-align: right" title="Granted"><span style="-sec-ix-redline: true">749,067</span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td id="xdx_98F_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsGrantsInPeriodWeightedAverageGrantDateFairValue_pid_c20220101__20221231__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockUnitsRSUMember_zNg1XM1zYTH4" style="text-align: right" title="Weighted average grant date fair value,Granted"><span style="-sec-ix-redline: true">0.93</span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td><span style="-sec-ix-redline: true">Canceled</span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td id="xdx_985_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsForfeitedInPeriod_iN_di_c20220101__20221231__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockUnitsRSUMember_zyRpDJnW6qQg" style="text-align: right" title="Canceled"><span style="-sec-ix-redline: true">(271,000</span></td><td style="text-align: left"><span style="-sec-ix-redline: true">)</span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td id="xdx_980_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsForfeituresWeightedAverageGrantDateFairValue_pid_c20220101__20221231__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockUnitsRSUMember_z9gDYJ3HLgA1" style="text-align: right" title="Weighted average grant date fair value,Canceled"><span style="-sec-ix-redline: true">2.79</span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true">Vested and released</span></td><td style="padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 1.5pt solid; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td id="xdx_988_ecustom--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsVestedAndReleasedInPeriod_iN_di_c20220101__20221231__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockUnitsRSUMember_zf2j5yzxmlT5" style="border-bottom: Black 1.5pt solid; text-align: right" title="Vested and released"><span style="-sec-ix-redline: true">(596,357</span></td><td style="padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true">)</span></td><td style="padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 1.5pt solid; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td id="xdx_98E_ecustom--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsVestedAndReleasedWeightedAverageGrantDateFairValue_pid_c20220101__20221231__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockUnitsRSUMember_zHOMGMuUp4Vd" style="border-bottom: Black 1.5pt solid; text-align: right" title="Weighted average grant date fair value,Vested and released"><span style="-sec-ix-redline: true">3.18</span></td><td style="padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-bottom: 2.5pt"><span style="-sec-ix-redline: true">Outstanding as of December 31, 2022</span></td><td style="padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 2.5pt double; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td id="xdx_982_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsNonvestedNumber_iE_c20220101__20221231__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockUnitsRSUMember_zu9ZjR4UZ2X5" style="border-bottom: Black 2.5pt double; text-align: right" title="Number of shares,Ending"><span style="-sec-ix-redline: true">1,028,960</span></td><td style="padding-bottom: 2.5pt; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 2.5pt double; text-align: left"><span style="-sec-ix-redline: true">$</span></td><td id="xdx_987_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsNonvestedWeightedAverageGrantDateFairValue_iE_pid_c20220101__20221231__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockUnitsRSUMember_z4RAm9zRtPKl" style="border-bottom: Black 2.5pt double; text-align: right" title="Weighted average grant date fair value,Ending"><span style="-sec-ix-redline: true">2.31</span></td><td style="padding-bottom: 2.5pt; text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-bottom: 2.5pt"><span style="-sec-ix-redline: true">Vested as of December 31, 2022</span></td><td style="padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 2.5pt double; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td id="xdx_981_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsVestedInPeriod_c20220101__20221231__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockUnitsRSUMember_zmI6UTNBI6Ll" style="border-bottom: Black 2.5pt double; text-align: right" title="Vested"><span style="-sec-ix-redline: true">471,484</span></td><td style="padding-bottom: 2.5pt; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 2.5pt double; text-align: left"><span style="-sec-ix-redline: true">$</span></td><td id="xdx_98C_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsVestedInPeriodWeightedAverageGrantDateFairValue_pid_c20220101__20221231__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockUnitsRSUMember_zPd8pPuMsv0f" style="border-bottom: Black 2.5pt double; text-align: right" title="Weighted average grant date fair value,Vested"><span style="-sec-ix-redline: true">3.23</span></td><td style="padding-bottom: 2.5pt; text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-bottom: 2.5pt"><span style="-sec-ix-redline: true">Unvested as of December 31, 2022</span></td><td style="padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 2.5pt double; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td id="xdx_988_ecustom--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsNonvestedInPeriod_c20220101__20221231__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockUnitsRSUMember_zawmmMbfUQM3" style="border-bottom: Black 2.5pt double; text-align: right" title="Nonvested"><span style="-sec-ix-redline: true">557,476</span></td><td style="padding-bottom: 2.5pt; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 2.5pt double; text-align: left"><span style="-sec-ix-redline: true">$</span></td><td id="xdx_98D_ecustom--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsUnvestedInPeriodWeightedAverageGrantDateFairValue_pid_c20220101__20221231__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockUnitsRSUMember_zXN7KX8l5SOe" style="border-bottom: Black 2.5pt double; text-align: right" title="Weighted average grant date fair value,Unvested"><span style="-sec-ix-redline: true">1.53</span></td><td style="padding-bottom: 2.5pt; text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> </table> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; text-align: justify; margin: 0pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> For the year ended December 31, 2022, the aggregate fair value of RSUs at the time of vesting was $<span class="xdx_phnt_RGlzY2xvc3VyZSAtIFN0b2NraG9sZGVyc5IgRXF1aXR5IChEZXRhaWxzIE5hcnJhdGl2ZSA0KQA_" id="xdx_901_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsVestedInPeriodTotalFairValue_c20220101__20221231_zNokeqCHvTyk" title="Aggregate fair value of rsu awards">697,361</span>.</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; text-align: justify; margin: 0pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">As of December 31, 2022, the Company had $<span class="xdx_phnt_RGlzY2xvc3VyZSAtIFN0b2NraG9sZGVyc5IgRXF1aXR5IChEZXRhaWxzIE5hcnJhdGl2ZSA0KQA_" id="xdx_907_eus-gaap--EmployeeServiceShareBasedCompensationNonvestedAwardsTotalCompensationCostNotYetRecognized_iI_c20221231__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockUnitsRSUMember_zKGrfT8kxrX5" title="Unrecognized stock-based compensation expense">425,878</span> of unrecognized stock-based compensation expense related to RSUs, which will be amortized over approximately sixteen months. During the year ended December 31, 2022, the company recognized $<span class="xdx_phnt_RGlzY2xvc3VyZSAtIFN0b2NraG9sZGVyc5IgRXF1aXR5IChEZXRhaWxzIE5hcnJhdGl2ZSA0KQA_" id="xdx_909_eus-gaap--AllocatedShareBasedCompensationExpense_c20220101__20221231__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockUnitsRSUMember_zBYD12QiExC2" title="Stock compensation expense">1,780,234</span> of stock compensation related to restricted stock units.</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; text-align: justify; margin: 0pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">For the year ended December 31, 2021, a summary of RSU activity is as follows:</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td><span style="-sec-ix-redline: true"> </span></td><td style="font-weight: bold; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"><span style="-sec-ix-redline: true">Shares</span></td><td style="padding-bottom: 1.5pt; font-weight: bold"><span style="-sec-ix-redline: true"> </span></td><td style="font-weight: bold; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"><span style="-sec-ix-redline: true">Weighted Average Grant Date Fair Value</span></td><td style="padding-bottom: 1.5pt; font-weight: bold"><span style="-sec-ix-redline: true"> </span></td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 60%"><span style="-sec-ix-redline: true">Outstanding as of December 31, 2020</span></td><td style="width: 2%"><span style="-sec-ix-redline: true"> </span></td> <td style="width: 1%; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td id="xdx_98D_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsNonvestedNumber_iS_c20210101__20211231__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockUnitsRSUMember_zgqRUBE7NLZk" style="width: 16%; text-align: right" title="Number of shares,Beginning"><span style="-sec-ix-redline: true">100,000</span></td><td style="width: 1%; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="width: 2%"><span style="-sec-ix-redline: true"> </span></td> <td style="width: 1%; text-align: left"><span style="-sec-ix-redline: true">$</span></td><td id="xdx_98D_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsNonvestedWeightedAverageGrantDateFairValue_iS_pid_c20210101__20211231__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockUnitsRSUMember_zj5Ez8KHHZB8" style="width: 16%; text-align: right" title="Weighted average grant date fair value,Beginning"><span style="-sec-ix-redline: true">1.34</span></td><td style="width: 1%; text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> <tr style="vertical-align: bottom; background-color: White"> <td><span style="-sec-ix-redline: true">Granted</span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td id="xdx_98D_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsGrantsInPeriod_c20210101__20211231__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockUnitsRSUMember_zIQZSiz5Oz43" style="text-align: right" title="Granted"><span style="-sec-ix-redline: true">1,392,402</span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td id="xdx_98D_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsGrantsInPeriodWeightedAverageGrantDateFairValue_pid_c20210101__20211231__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockUnitsRSUMember_z8vSk1a7mG0d" style="text-align: right" title="Weighted average grant date fair value,Granted"><span style="-sec-ix-redline: true">3.99</span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td><span style="-sec-ix-redline: true">Canceled</span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td id="xdx_988_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsForfeitedInPeriod_iN_di_c20210101__20211231__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockUnitsRSUMember_zGeKFIn8bdwg" style="text-align: right" title="Canceled"><span style="-sec-ix-redline: true">(91,667</span></td><td style="text-align: left"><span style="-sec-ix-redline: true">)</span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td id="xdx_985_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsForfeituresWeightedAverageGrantDateFairValue_pid_c20210101__20211231__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockUnitsRSUMember_z3KeRP6ga9W1" style="text-align: right" title="Weighted average grant date fair value,Canceled"><span style="-sec-ix-redline: true">5.40</span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true">Vested and released</span></td><td style="padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 1.5pt solid; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td id="xdx_986_ecustom--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsVestedAndReleasedInPeriod_iN_di_c20210101__20211231__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockUnitsRSUMember_ziAcR01o8vD" style="border-bottom: Black 1.5pt solid; text-align: right" title="Vested and released"><span style="-sec-ix-redline: true">(253,485</span></td><td style="padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true">)</span></td><td style="padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 1.5pt solid; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td id="xdx_989_ecustom--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsVestedAndReleasedWeightedAverageGrantDateFairValue_pid_c20210101__20211231__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockUnitsRSUMember_zUuaoC8MP4Ng" style="border-bottom: Black 1.5pt solid; text-align: right" title="Weighted average grant date fair value,Vested and released"><span style="-sec-ix-redline: true">3.39</span></td><td style="padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-bottom: 2.5pt"><span style="-sec-ix-redline: true">Outstanding as of December 31, 2021</span></td><td style="padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 2.5pt double; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td id="xdx_982_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsNonvestedNumber_iE_c20210101__20211231__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockUnitsRSUMember_z7Hs0eQJu9ta" style="border-bottom: Black 2.5pt double; text-align: right" title="Number of shares,Ending"><span style="-sec-ix-redline: true">1,147,250</span></td><td style="padding-bottom: 2.5pt; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 2.5pt double; text-align: left"><span style="-sec-ix-redline: true">$</span></td><td id="xdx_98C_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsNonvestedWeightedAverageGrantDateFairValue_iE_pid_c20210101__20211231__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockUnitsRSUMember_z8DIwGaxpNVh" style="border-bottom: Black 2.5pt double; text-align: right" title="Weighted average grant date fair value,Ending"><span style="-sec-ix-redline: true">3.78</span></td><td style="padding-bottom: 2.5pt; text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-bottom: 2.5pt"><span style="-sec-ix-redline: true">Vested as of December 31, 2021</span></td><td style="padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 2.5pt double; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td id="xdx_983_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsVestedInPeriod_c20210101__20211231__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockUnitsRSUMember_zMUwYbsrGie4" style="border-bottom: Black 2.5pt double; text-align: right" title="Vested"><span style="-sec-ix-redline: true">325,845</span></td><td style="padding-bottom: 2.5pt; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 2.5pt double; text-align: left"><span style="-sec-ix-redline: true">$</span></td><td id="xdx_983_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsVestedInPeriodWeightedAverageGrantDateFairValue_pid_c20210101__20211231__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockUnitsRSUMember_zS3iwd6LjcQ3" style="border-bottom: Black 2.5pt double; text-align: right" title="Weighted average grant date fair value,Vested"><span style="-sec-ix-redline: true">5.34</span></td><td style="padding-bottom: 2.5pt; text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-bottom: 2.5pt"><span style="-sec-ix-redline: true">Unvested as of December 31, 2021</span></td><td style="padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 2.5pt double; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td id="xdx_986_ecustom--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsNonvestedInPeriod_c20210101__20211231__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockUnitsRSUMember_zsGU4i4GsmIi" style="border-bottom: Black 2.5pt double; text-align: right" title="Nonvested"><span style="-sec-ix-redline: true">821,405</span></td><td style="padding-bottom: 2.5pt; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 2.5pt double; text-align: left"><span style="-sec-ix-redline: true">$</span></td><td id="xdx_980_ecustom--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsUnvestedInPeriodWeightedAverageGrantDateFairValue_pid_c20210101__20211231__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockUnitsRSUMember_zaPcwqQ6yqqi" style="border-bottom: Black 2.5pt double; text-align: right" title="Weighted average grant date fair value,Unvested"><span style="-sec-ix-redline: true">3.16</span></td><td style="padding-bottom: 2.5pt; text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> </table> 1147250 3.78 749067 0.93 271000 2.79 596357 3.18 1028960 2.31 471484 3.23 557476 1.53 697361 425878 1780234 100000 1.34 1392402 3.99 91667 5.40 253485 3.39 1147250 3.78 325845 5.34 821405 3.16 5555503 2138000 2851253 354107 125000 75000 111607 42500 125000 1.12 111607 2500 48025 1.13 545216 5.40 2.94 125000 75000 145152 680765 4.69 100000 540000 5.40 91667 8333 44998 10000 54000 37824 46367 46831 1.01 46367 46831 1.01 62500 68750 1.10 50000 44840 78500 1.57 75000 220500 2.94 146951 72362 111250 640800 5.76 125000 675000 5.40 202147 472853 <p id="xdx_891_eus-gaap--ScheduleOfShareBasedCompensationStockOptionsActivityTableTextBlock_zgRtMckprvp8" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0.5in; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">For the year ended December 31, 2022, a summary of the options activity is as follows:</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> <span id="xdx_8BD_zwElFpqjqFoc" style="display: none">Summary of Options Activity</span></span></span></p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td><span style="-sec-ix-redline: true"> </span></td><td style="font-weight: bold; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"><span style="-sec-ix-redline: true">Shares</span></td><td style="padding-bottom: 1.5pt; font-weight: bold"><span style="-sec-ix-redline: true"> </span></td><td style="font-weight: bold; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"><span style="-sec-ix-redline: true">Weighted Average Exercise Price</span></td><td style="padding-bottom: 1.5pt; font-weight: bold"><span style="-sec-ix-redline: true"> </span></td><td style="font-weight: bold; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"><span style="-sec-ix-redline: true">Weighted Average Fair Value</span></td><td style="padding-bottom: 1.5pt; font-weight: bold"><span style="-sec-ix-redline: true"> </span></td><td style="font-weight: bold; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"><span style="-sec-ix-redline: true">Weighted Average Remaining Contractual Term (Years)</span></td><td style="padding-bottom: 1.5pt; font-weight: bold"><span style="-sec-ix-redline: true"> </span></td><td style="font-weight: bold; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"><span style="-sec-ix-redline: true">Aggregate Intrinsic Value</span></td><td style="padding-bottom: 1.5pt; font-weight: bold"><span style="-sec-ix-redline: true"> </span></td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 35%"><span style="-sec-ix-redline: true">Outstanding as of December 31, 2021</span></td><td style="width: 2%"><span style="-sec-ix-redline: true"> </span></td> <td style="width: 1%; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td id="xdx_982_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingNumber_iS_c20220101__20221231_zq0rNJYv3RQf" style="width: 9%; text-align: right" title="Number of shares,Beginning"><span style="-sec-ix-redline: true">2,541,667</span></td><td style="width: 1%; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="width: 2%"><span style="-sec-ix-redline: true"> </span></td> <td style="width: 1%; text-align: left"><span style="-sec-ix-redline: true">$</span></td><td id="xdx_981_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingWeightedAverageExercisePrice_iS_c20220101__20221231_zE2TkOEyY2v4" style="width: 9%; text-align: right" title="Weighted average exercise price,Beginning"><span style="-sec-ix-redline: true">2.88</span></td><td style="width: 1%; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="width: 2%"><span style="-sec-ix-redline: true"> </span></td> <td style="width: 1%; text-align: left"><span style="-sec-ix-redline: true">$</span></td><td id="xdx_985_eus-gaap--SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsNonvestedWeightedAverageGrantDateFairValue_iS_c20220101__20221231_zCzukWwRX41g" style="width: 9%; text-align: right" title="Weighted average fair value,Beginning"><span style="-sec-ix-redline: true">1.57</span></td><td style="width: 1%; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="width: 2%"><span style="-sec-ix-redline: true"> </span></td> <td style="width: 1%; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="width: 9%; text-align: right"><span style="-sec-ix-redline: true"><span id="xdx_909_eus-gaap--SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsOutstandingWeightedAverageRemainingContractualTerm2_dtY_c20210101__20211231_zb3MYmVE6hp6" title="Weighted average remaining contractual term,Beginning">4.27</span></span></td><td style="width: 1%; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="width: 2%"><span style="-sec-ix-redline: true"> </span></td> <td style="width: 1%; text-align: left"><span style="-sec-ix-redline: true">$</span></td><td id="xdx_985_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingIntrinsicValue_iS_c20220101__20221231_zWKJCkyS0819" style="width: 9%; text-align: right" title="Aggregate intrinsic value, Beginning"><span style="-sec-ix-redline: true">1,244,029</span></td><td style="width: 1%; text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> <tr style="vertical-align: bottom; background-color: White"> <td><span style="-sec-ix-redline: true">Granted</span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td id="xdx_981_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsGrantsInPeriodGross_c20220101__20221231_zerTbq1NmUpe" style="text-align: right" title="Number of shares,Granted"><span style="-sec-ix-redline: true">512,065</span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td id="xdx_984_eus-gaap--ShareBasedCompensationArrangementsByShareBasedPaymentAwardOptionsGrantsInPeriodWeightedAverageExercisePrice_c20220101__20221231_zEWB7d2MIjv6" style="text-align: right" title="Weighted average exercise price,Granted"><span style="-sec-ix-redline: true">0.66</span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td id="xdx_983_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsGrantsInPeriodWeightedAverageGrantDateFairValue_c20220101__20221231_zi6C0cMtwo8b" style="text-align: right" title="Weighted average fair value,Granted"><span style="-sec-ix-redline: true">0.32</span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true"><span id="xdx_90F_ecustom--SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsOutstandingWeightedAverageRemainingContractualTermGranted_dtY_c20220101__20221231_zaHV7Bb6K6y" title="Weighted average remaining contractual term,Granted">3.02</span></span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true">—</span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td><span style="-sec-ix-redline: true">Exercised</span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td id="xdx_987_eus-gaap--StockIssuedDuringPeriodSharesStockOptionsExercised_iN_di_c20220101__20221231_zwiaioLBGWac" style="text-align: right" title="Number of shares,Exercised"><span style="-sec-ix-redline: true">(185,000</span></td><td style="text-align: left"><span style="-sec-ix-redline: true">)</span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td id="xdx_986_eus-gaap--ShareBasedCompensationArrangementsByShareBasedPaymentAwardOptionsExercisesInPeriodWeightedAverageExercisePrice_c20220101__20221231_zziUuq3CnGC5" style="text-align: right" title="Weighted average exercise price,Exercised"><span style="-sec-ix-redline: true">0.40</span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td id="xdx_988_ecustom--SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsExercisedWeightedAverageGrantDateFairValue_c20220101__20221231_z0Dwsmcgl2K5" style="text-align: right" title="Weighted average fair value,Exercised"><span style="-sec-ix-redline: true">0.29</span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true">—</span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true">—</span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-bottom: 1.5pt"><span style="-sec-ix-redline: true">Expired/Forfeited</span></td><td style="padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 1.5pt solid; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td id="xdx_98F_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsForfeituresAndExpirationsInPeriod_iN_di_c20220101__20221231_zPTdQ8h7ATC3" style="border-bottom: Black 1.5pt solid; text-align: right" title="Number of shares,Expired/Forfeited"><span style="-sec-ix-redline: true">(307,501</span></td><td style="padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true">)</span></td><td style="padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 1.5pt solid; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td id="xdx_988_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsForfeituresAndExpirationsInPeriodWeightedAverageExercisePrice_c20220101__20221231_zpNY01VzNR05" style="border-bottom: Black 1.5pt solid; text-align: right" title="Weighted average exercise price,Expired/Forfeited"><span style="-sec-ix-redline: true">6.47</span></td><td style="padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 1.5pt solid; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td id="xdx_986_eus-gaap--SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsNonvestedOptionsForfeitedWeightedAverageGrantDateFairValue_c20220101__20221231_zZiEW6OEDEn" style="border-bottom: Black 1.5pt solid; text-align: right" title="Weighted average fair value,Expired/Forfeited"><span style="-sec-ix-redline: true">3.46</span></td><td style="padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 1.5pt solid; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="border-bottom: Black 1.5pt solid; text-align: right"><span style="-sec-ix-redline: true">—</span></td><td style="padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 1.5pt solid; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="border-bottom: Black 1.5pt solid; text-align: right"><span style="-sec-ix-redline: true">—</span></td><td style="padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-bottom: 2.5pt"><span style="-sec-ix-redline: true">Outstanding as of December 31, 2022</span></td><td style="padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 2.5pt double; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td id="xdx_98F_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingNumber_iE_c20220101__20221231_zw71Vm2czYCb" style="border-bottom: Black 2.5pt double; text-align: right" title="Number of shares,Ending"><span style="-sec-ix-redline: true">2,561,231</span></td><td style="padding-bottom: 2.5pt; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 2.5pt double; text-align: left"><span style="-sec-ix-redline: true">$</span></td><td id="xdx_984_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingWeightedAverageExercisePrice_iE_c20220101__20221231_zg8AT9nqfnzg" style="border-bottom: Black 2.5pt double; text-align: right" title="Weighted average exercise price,Ending"><span style="-sec-ix-redline: true">2.18</span></td><td style="padding-bottom: 2.5pt; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 2.5pt double; text-align: left"><span style="-sec-ix-redline: true">$</span></td><td id="xdx_98B_eus-gaap--SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsNonvestedWeightedAverageGrantDateFairValue_iE_c20220101__20221231_zkMzT0emcLfj" style="border-bottom: Black 2.5pt double; text-align: right" title="Weighted average fair value,Ending"><span style="-sec-ix-redline: true">1.19</span></td><td style="padding-bottom: 2.5pt; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 2.5pt double; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="border-bottom: Black 2.5pt double; text-align: right"><span style="-sec-ix-redline: true"><span id="xdx_901_eus-gaap--SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsOutstandingWeightedAverageRemainingContractualTerm2_dtY_c20220101__20221231_zzN6SSfo6ZKj" title="Weighted average remaining contractual term, Ending">3.33</span></span></td><td style="padding-bottom: 2.5pt; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 2.5pt double; text-align: left"><span style="-sec-ix-redline: true">$</span></td><td id="xdx_989_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingIntrinsicValue_iE_c20220101__20221231_zKI9nm8h2oh" style="border-bottom: Black 2.5pt double; text-align: right" title="Aggregate intrinsic value, Ending"><span style="-sec-ix-redline: true">31,124</span></td><td style="padding-bottom: 2.5pt; text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-bottom: 2.5pt"><span style="-sec-ix-redline: true">Exercisable as of December 31, 2022</span></td><td style="padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 2.5pt double; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td id="xdx_985_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsExercisableNumber_iI_c20221231_zbgQZugLnOr8" style="border-bottom: Black 2.5pt double; text-align: right" title="Number of shares,Exercisable"><span style="-sec-ix-redline: true">2,046,309</span></td><td style="padding-bottom: 2.5pt; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 2.5pt double; text-align: left"><span style="-sec-ix-redline: true">$</span></td><td id="xdx_987_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsExercisableWeightedAverageExercisePrice_iI_c20221231_zQv6BXtZqAk3" style="border-bottom: Black 2.5pt double; text-align: right" title="Weighted average exercise price,Exercisable"><span style="-sec-ix-redline: true">2.37</span></td><td style="padding-bottom: 2.5pt; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 2.5pt double; text-align: left"><span style="-sec-ix-redline: true">$</span></td><td id="xdx_98F_ecustom--SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsExercisableWeightedAverageFairValue_iI_c20221231_zjOuPuRsuGUc" style="border-bottom: Black 2.5pt double; text-align: right" title="Weighted average fair value,Exercisable"><span style="-sec-ix-redline: true">1.30</span></td><td style="padding-bottom: 2.5pt; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 2.5pt double; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="border-bottom: Black 2.5pt double; text-align: right"><span style="-sec-ix-redline: true"><span id="xdx_906_eus-gaap--SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsExercisableWeightedAverageRemainingContractualTerm1_dtY_c20220101__20221231_zjSj1FiySOq2" title="Weighted average remaining contractual term, Exercisable">3.06</span></span></td><td style="padding-bottom: 2.5pt; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 2.5pt double; text-align: left"><span style="-sec-ix-redline: true">$</span></td><td id="xdx_985_eus-gaap--SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsExercisableIntrinsicValue1_iI_c20221231_zCmnSGccgU57" style="border-bottom: Black 2.5pt double; text-align: right" title="Aggregate intrinsic value, Exercisable"><span style="-sec-ix-redline: true">31,124</span></td><td style="padding-bottom: 2.5pt; text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> </table> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0.5in; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0.5in; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">As of December 31, 2022, the Company has $<span class="xdx_phnt_RGlzY2xvc3VyZSAtIFN0b2NraG9sZGVyc5IgRXF1aXR5IChEZXRhaWxzIE5hcnJhdGl2ZSA2KQA_" id="xdx_90F_eus-gaap--EmployeeServiceShareBasedCompensationNonvestedAwardsTotalCompensationCostNotYetRecognized_iI_c20221231__us-gaap--AwardTypeAxis__us-gaap--EmployeeStockOptionMember_zxND0gXaezJ4" title="Unrecognized stock-based compensation expense">376,797</span> of total unrecognized compensation cost related to stock options, which will be amortized over approximately twenty-four months. During the year ended December 31, 2022, the Company recognized $<span class="xdx_phnt_RGlzY2xvc3VyZSAtIFN0b2NraG9sZGVyc5IgRXF1aXR5IChEZXRhaWxzIE5hcnJhdGl2ZSA2KQA_" id="xdx_902_eus-gaap--AllocatedShareBasedCompensationExpense_c20220101__20221231__us-gaap--AwardTypeAxis__us-gaap--EmployeeStockOptionMember_z9e8WNfgIYdg" title="Stock compensation expense">1,640,430</span> of stock compensation related to stock options.</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0.5in; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Intrinsic value is measured using the fair market value at the date of exercise (for shares exercised) or as of December 31, 2022 (for outstanding options), less the applicable exercise price.</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>AGEAGLE AERIAL SYSTEMS INC. AND SUBSIDIARIES </b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>NOTES TO CONSOLIDATED FINANCIAL STATEMENTS</b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>FOR THE YEARS ENDED DECEMBER 31, 2022 AND 2021</b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Note 10 – Equity-Continued</b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0.5in; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">For the year ended December 31, 2021, a summary of the options activity is as follows:</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td><span style="-sec-ix-redline: true"> </span></td><td style="font-weight: bold; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"><span style="-sec-ix-redline: true">Shares</span></td><td style="padding-bottom: 1.5pt; font-weight: bold"><span style="-sec-ix-redline: true"> </span></td><td style="font-weight: bold; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"><span style="-sec-ix-redline: true">Weighted Average Exercise Price</span></td><td style="padding-bottom: 1.5pt; font-weight: bold"><span style="-sec-ix-redline: true"> </span></td><td style="font-weight: bold; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"><span style="-sec-ix-redline: true">Weighted Average Fair Value</span></td><td style="padding-bottom: 1.5pt; font-weight: bold"><span style="-sec-ix-redline: true"> </span></td><td style="font-weight: bold; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"><span style="-sec-ix-redline: true">Weighted Average Remaining Contractual Term (Years)</span></td><td style="padding-bottom: 1.5pt; font-weight: bold"><span style="-sec-ix-redline: true"> </span></td><td style="font-weight: bold; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"><span style="-sec-ix-redline: true">Aggregate Intrinsic Value</span></td><td style="padding-bottom: 1.5pt; font-weight: bold"><span style="-sec-ix-redline: true"> </span></td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 35%"><span style="-sec-ix-redline: true">Outstanding as of December 31, 2020</span></td><td style="width: 2%"><span style="-sec-ix-redline: true"> </span></td> <td style="width: 1%; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td id="xdx_980_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingNumber_iS_c20210101__20211231_zZRK10gORf5" style="width: 9%; text-align: right" title="Number of shares,Beginning"><span style="-sec-ix-redline: true">2,255,267</span></td><td style="width: 1%; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="width: 2%"><span style="-sec-ix-redline: true"> </span></td> <td style="width: 1%; text-align: left"><span style="-sec-ix-redline: true">$</span></td><td id="xdx_98F_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingWeightedAverageExercisePrice_iS_c20210101__20211231_zjfxwpOUVjNg" style="width: 9%; text-align: right" title="Weighted average exercise price,Beginning"><span style="-sec-ix-redline: true">1.46</span></td><td style="width: 1%; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="width: 2%"><span style="-sec-ix-redline: true"> </span></td> <td style="width: 1%; text-align: left"><span style="-sec-ix-redline: true">$</span></td><td id="xdx_987_eus-gaap--SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsNonvestedWeightedAverageGrantDateFairValue_iS_c20210101__20211231_zLr9rVXjAtWc" style="width: 9%; text-align: right" title="Weighted average fair value,Beginning"><span style="-sec-ix-redline: true">0.82</span></td><td style="width: 1%; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="width: 2%"><span style="-sec-ix-redline: true"> </span></td> <td style="width: 1%; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="width: 9%; text-align: right"><span style="-sec-ix-redline: true"><span id="xdx_90F_eus-gaap--SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsOutstandingWeightedAverageRemainingContractualTerm2_dtY_c20200101__20201231_zVNxuBEPfeRd" title="Weighted average remaining contractual term,Beginning">5.31</span></span></td><td style="width: 1%; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="width: 2%"><span style="-sec-ix-redline: true"> </span></td> <td style="width: 1%; text-align: left"><span style="-sec-ix-redline: true">$</span></td><td id="xdx_98C_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingIntrinsicValue_iS_c20210101__20211231_zzWbWh67Bj6l" style="width: 9%; text-align: right" title="Aggregate intrinsic value, Beginning"><span style="-sec-ix-redline: true">10,247,548</span></td><td style="width: 1%; text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> <tr style="vertical-align: bottom; background-color: White"> <td><span style="-sec-ix-redline: true">Granted</span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td id="xdx_98A_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsGrantsInPeriodGross_c20210101__20211231_zn0lBt2oUABj" style="text-align: right" title="Number of shares,Granted"><span style="-sec-ix-redline: true">1,049,500</span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td id="xdx_98E_eus-gaap--ShareBasedCompensationArrangementsByShareBasedPaymentAwardOptionsGrantsInPeriodWeightedAverageExercisePrice_c20210101__20211231_zcAJkPFIEAL" style="text-align: right" title="Weighted average exercise price,Granted"><span style="-sec-ix-redline: true">5.31</span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td id="xdx_98B_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsGrantsInPeriodWeightedAverageGrantDateFairValue_c20210101__20211231_zNMHb28fPcq3" style="text-align: right" title="Weighted average fair value,Granted"><span style="-sec-ix-redline: true">2.85</span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true"><span id="xdx_90A_ecustom--SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsOutstandingWeightedAverageRemainingContractualTermGranted_dtY_c20210101__20211231_zqertVpm4Ar8" title="Weighted average remaining contractual term,Granted">3.01</span></span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true">—</span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td><span style="-sec-ix-redline: true">Exercised</span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td id="xdx_983_eus-gaap--StockIssuedDuringPeriodSharesStockOptionsExercised_iN_di_c20210101__20211231_zbgm4nl1tAHh" style="text-align: right" title="Number of shares,Exercised"><span style="-sec-ix-redline: true">(513,500</span></td><td style="text-align: left"><span style="-sec-ix-redline: true">)</span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td id="xdx_98F_eus-gaap--ShareBasedCompensationArrangementsByShareBasedPaymentAwardOptionsExercisesInPeriodWeightedAverageExercisePrice_c20210101__20211231_zoeQsi1Ofb31" style="text-align: right" title="Weighted average exercise price,Exercised"><span style="-sec-ix-redline: true">0.24</span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td id="xdx_985_ecustom--SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsExercisedWeightedAverageGrantDateFairValue_c20210101__20211231_zgb3hw9ykPBb" style="text-align: right" title="Weighted average fair value,Exercised"><span style="-sec-ix-redline: true">0.15</span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true">—</span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td id="xdx_98C_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsExercisesInPeriodTotalIntrinsicValue_c20210101__20211231_zGaswAQXDdj" style="text-align: right" title="Aggregate intrinsic value, Exercised"><span style="-sec-ix-redline: true">675,363</span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-bottom: 1.5pt"><span style="-sec-ix-redline: true">Expired/Forfeited</span></td><td style="padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 1.5pt solid; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td id="xdx_98F_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsForfeituresAndExpirationsInPeriod_iN_di_c20210101__20211231_zzikJatbNkSc" style="border-bottom: Black 1.5pt solid; text-align: right" title="Number of shares,Expired/Forfeited"><span style="-sec-ix-redline: true">(249,600</span></td><td style="padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true">)</span></td><td style="padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 1.5pt solid; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td id="xdx_980_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsForfeituresAndExpirationsInPeriodWeightedAverageExercisePrice_c20210101__20211231_zk5XgFLU09yj" style="border-bottom: Black 1.5pt solid; text-align: right" title="Weighted average exercise price,Expired/Forfeited"><span style="-sec-ix-redline: true">5.50</span></td><td style="padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 1.5pt solid; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td id="xdx_986_eus-gaap--SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsNonvestedOptionsForfeitedWeightedAverageGrantDateFairValue_c20210101__20211231_zgzRY3Y3tgf4" style="border-bottom: Black 1.5pt solid; text-align: right" title="Weighted average fair value,Expired/Forfeited"><span style="-sec-ix-redline: true">2.96</span></td><td style="padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 1.5pt solid; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="border-bottom: Black 1.5pt solid; text-align: right"><span style="-sec-ix-redline: true">—</span></td><td style="padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 1.5pt solid; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td id="xdx_98E_ecustom--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsForfeituresAndExpirationsInPeriodTotalIntrinsicValue_c20210101__20211231_zC6DOjSZSVMk" style="border-bottom: Black 1.5pt solid; text-align: right" title="Aggregate intrinsic value, forfeitures and expirations"><span style="-sec-ix-redline: true">7,277</span></td><td style="padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-bottom: 2.5pt"><span style="-sec-ix-redline: true">Outstanding as of December 31, 2021</span></td><td style="padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 2.5pt double; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td id="xdx_98D_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingNumber_iE_c20210101__20211231_zkbxOzkLYseb" style="border-bottom: Black 2.5pt double; text-align: right" title="Number of shares,Ending"><span style="-sec-ix-redline: true">2,541,667</span></td><td style="padding-bottom: 2.5pt; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 2.5pt double; text-align: left"><span style="-sec-ix-redline: true">$</span></td><td id="xdx_989_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingWeightedAverageExercisePrice_iE_c20210101__20211231_zhTGJ9nvlLnb" style="border-bottom: Black 2.5pt double; text-align: right" title="Weighted average exercise price,Ending"><span style="-sec-ix-redline: true">2.88</span></td><td style="padding-bottom: 2.5pt; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 2.5pt double; text-align: left"><span style="-sec-ix-redline: true">$</span></td><td id="xdx_984_eus-gaap--SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsNonvestedWeightedAverageGrantDateFairValue_iE_c20210101__20211231_z9jDtbhKw6hk" style="border-bottom: Black 2.5pt double; text-align: right" title="Weighted average fair value,Ending"><span style="-sec-ix-redline: true">1.57</span></td><td style="padding-bottom: 2.5pt; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 2.5pt double; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="border-bottom: Black 2.5pt double; text-align: right"><span style="-sec-ix-redline: true"><span id="xdx_908_eus-gaap--SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsOutstandingWeightedAverageRemainingContractualTerm2_dtY_c20210101__20211231_zJf18udEAUE9" title="Weighted average remaining contractual term, Ending">4.27</span></span></td><td style="padding-bottom: 2.5pt; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 2.5pt double; text-align: left"><span style="-sec-ix-redline: true">$</span></td><td id="xdx_986_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingIntrinsicValue_iE_c20210101__20211231_zPxnSwyopOOg" style="border-bottom: Black 2.5pt double; text-align: right" title="Aggregate intrinsic value, Ending"><span style="-sec-ix-redline: true">1,244,029</span></td><td style="padding-bottom: 2.5pt; text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-bottom: 2.5pt"><span style="-sec-ix-redline: true">Exercisable as of December 31, 2021</span></td><td style="padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 2.5pt double; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td id="xdx_986_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsExercisableNumber_iI_c20211231_zxxKipRYg5bk" style="border-bottom: Black 2.5pt double; text-align: right" title="Number of shares,Exercisable"><span style="-sec-ix-redline: true">1,548,083</span></td><td style="padding-bottom: 2.5pt; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 2.5pt double; text-align: left"><span style="-sec-ix-redline: true">$</span></td><td id="xdx_982_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsExercisableWeightedAverageExercisePrice_iI_c20211231_zosSbL1qnJZh" style="border-bottom: Black 2.5pt double; text-align: right" title="Weighted average exercise price,Exercisable"><span style="-sec-ix-redline: true">1.97</span></td><td style="padding-bottom: 2.5pt; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 2.5pt double; text-align: left"><span style="-sec-ix-redline: true">$</span></td><td id="xdx_985_ecustom--SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsExercisableWeightedAverageFairValue_iI_c20211231_z7pGD26gLoE4" style="border-bottom: Black 2.5pt double; text-align: right" title="Weighted average fair value,Exercisable"><span style="-sec-ix-redline: true">1.10</span></td><td style="padding-bottom: 2.5pt; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 2.5pt double; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="border-bottom: Black 2.5pt double; text-align: right"><span style="-sec-ix-redline: true"><span id="xdx_903_eus-gaap--SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsExercisableWeightedAverageRemainingContractualTerm1_dtY_c20210101__20211231_zMUoMFV3Q4Dk" title="Weighted average remaining contractual term, Exercisable">4.14</span></span></td><td style="padding-bottom: 2.5pt; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 2.5pt double; text-align: left"><span style="-sec-ix-redline: true">$</span></td><td id="xdx_98C_eus-gaap--SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsExercisableIntrinsicValue1_iI_c20211231_zrb1jh8nhxFi" style="border-bottom: Black 2.5pt double; text-align: right" title="Aggregate intrinsic value, Exercisable"><span style="-sec-ix-redline: true">1,178,340</span></td><td style="padding-bottom: 2.5pt; text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> </table> 2541667 2.88 1.57 P4Y3M7D 1244029 512065 0.66 0.32 P3Y7D 185000 0.40 0.29 307501 6.47 3.46 2561231 2.18 1.19 P3Y3M29D 31124 2046309 2.37 1.30 P3Y21D 31124 376797 1640430 2255267 1.46 0.82 P5Y3M21D 10247548 1049500 5.31 2.85 P3Y3D 513500 0.24 0.15 675363 249600 5.50 2.96 7277 2541667 2.88 1.57 P4Y3M7D 1244029 1548083 1.97 1.10 P4Y1M20D 1178340 2036000 1657221 <p id="xdx_89C_eus-gaap--ScheduleOfShareBasedPaymentAwardStockOptionsValuationAssumptionsTableTextBlock_zWvI6Wi2ofF3" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> <span id="xdx_8B7_z9dzyONc64M5" style="display: none">Schedule of Significant Weighted Average Assumptions</span></span></span></p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="display: none; vertical-align: bottom"> <td><span style="-sec-ix-redline: true"> </span></td><td style="font-weight: bold; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td colspan="2" id="xdx_494_20220101__20221231_zpoDd50mQtp2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"><span style="-sec-ix-redline: true">2022</span></td><td style="padding-bottom: 1.5pt; font-weight: bold"><span style="-sec-ix-redline: true"> </span></td><td style="font-weight: bold; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td colspan="2" id="xdx_493_20210101__20211231_z2DhtXJrnYQl" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"><span style="-sec-ix-redline: true">2021</span></td><td style="padding-bottom: 1.5pt; font-weight: bold"><span style="-sec-ix-redline: true"> </span></td></tr> <tr style="vertical-align: bottom"> <td><span style="-sec-ix-redline: true"> </span></td><td style="font-weight: bold; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td colspan="6" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"><span style="-sec-ix-redline: true">Year Ended December 31,</span></td><td style="padding-bottom: 1.5pt; font-weight: bold"><span style="-sec-ix-redline: true"> </span></td></tr> <tr style="vertical-align: bottom"> <td><span style="-sec-ix-redline: true"> </span></td><td style="font-weight: bold; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"><span style="-sec-ix-redline: true">2022</span></td><td style="padding-bottom: 1.5pt; font-weight: bold"><span style="-sec-ix-redline: true"> </span></td><td style="font-weight: bold; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"><span style="-sec-ix-redline: true">2021</span></td><td style="padding-bottom: 1.5pt; font-weight: bold"><span style="-sec-ix-redline: true"> </span></td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 60%"><span style="-sec-ix-redline: true">Stock price</span></td><td style="width: 2%"><span style="-sec-ix-redline: true"> </span></td> <td style="width: 1%; text-align: left"><span style="-sec-ix-redline: true">$</span></td><td style="width: 16%; text-align: right"><span style="-sec-ix-redline: true"><span id="xdx_90E_eus-gaap--SharePrice_iI_c20221231_zWE9dt071njk" title="Stock price">0.66</span></span></td><td style="width: 1%; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="width: 2%"><span style="-sec-ix-redline: true"> </span></td> <td style="width: 1%; text-align: left"><span style="-sec-ix-redline: true">$</span></td><td style="width: 16%; text-align: right"><span style="-sec-ix-redline: true"><span id="xdx_907_eus-gaap--SharePrice_iI_c20211231_znkTdiVLp93f" title="Stock price">5.31</span></span></td><td style="width: 1%; text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> <tr id="xdx_401_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExpectedDividendRate_dp_zLfMEtTGYu7b" style="vertical-align: bottom; background-color: White"> <td style="text-align: left"><span style="-sec-ix-redline: true">Dividend yield</span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><span style="-sec-ix-hidden: xdx2ixbrl3989">—</span></span></span></p></td><td style="text-align: left"><span style="-sec-ix-redline: true">%</span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><span style="-sec-ix-hidden: xdx2ixbrl3990">—</span></span></span></p></td><td style="text-align: left"><span style="-sec-ix-redline: true">%</span></td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left"><span style="-sec-ix-redline: true">Expected life (years)</span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true"><span id="xdx_90E_eus-gaap--SharebasedCompensationArrangementBySharebasedPaymentAwardFairValueAssumptionsExpectedTerm1_dtY_c20220101__20221231_zaDP6byVBmu4" title="Expected life (years)">3.02</span></span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true"><span id="xdx_901_eus-gaap--SharebasedCompensationArrangementBySharebasedPaymentAwardFairValueAssumptionsExpectedTerm1_dtY_c20210101__20211231_zDAStoDbuMGi" title="Expected life (years)">3.01</span></span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> <tr id="xdx_400_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExpectedVolatilityRate_dp_z7YgsILYxjo7" style="vertical-align: bottom; background-color: White"> <td style="text-align: left"><span style="-sec-ix-redline: true">Expected volatility</span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true">69.49</span></td><td style="text-align: left"><span style="-sec-ix-redline: true">%</span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true">83.88</span></td><td style="text-align: left"><span style="-sec-ix-redline: true">%</span></td></tr> <tr id="xdx_407_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsRiskFreeInterestRate_dp_zU4BnKQK8VB4" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left"><span style="-sec-ix-redline: true">Risk-free interest rate</span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true">3.47</span></td><td style="text-align: left"><span style="-sec-ix-redline: true">%</span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true">0.47</span></td><td style="text-align: left"><span style="-sec-ix-redline: true">%</span></td></tr> </table> 0.66 5.31 P3Y7D P3Y3D 0.6949 0.8388 0.0347 0.0047 512065 0.17 0.56 162663 60515 580000 0.84 3.37 1231400 678660 286312 2743580 0.04 3.18 453356 684950 307501 1063673 257932 764034 <p id="xdx_802_eus-gaap--PensionAndOtherPostretirementBenefitsDisclosureTextBlock_zEQjxnMpU3Jg" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Note 11 – <span id="xdx_82F_zh2QjeowwfMd">Retirement Plans</span></b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i>Defined Benefit Plan</i></b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0.5in; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">senseFly S.A. sponsors a defined benefit pension plan (the “Defined Benefit Plan”) covering all its employees. The Defined Benefit Plan provides benefits in the event of retirement, death or disability, with benefits based on age and salary. The Defined Benefit Plan is funded through contributions paid by senseFly S.A. and its employees, respectively. The Defined Benefit Plan assets are Groupe Mutuel Prévoyance (“GMP”), which invests these plan assets in cash and cash equivalents, equities, bonds, real estate and alternative investments.</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0.5in; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The Projected Benefit Obligation (“PBO”) includes in full the accrued liability for the plan death and disability benefits, irrespective of the extent to which these benefits may be reinsured with an insurer. The actuarial valuations are based on the census data as of December 31, 2022, provided by GMP.</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0.5in; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The Company recognizes the overfunded or underfunded status of the Defined Benefit Plan as an asset or liability in its consolidated balance sheets and recognizes changes in the funded status of the Defined Benefit Plan in the year in which the changes occur through accumulated other comprehensive income or loss. The Defined Benefit Plan’s assets and benefit obligations are remeasured as of December 31^steach year.</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>AGEAGLE AERIAL SYSTEMS INC. AND SUBSIDIARIES </b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>NOTES TO CONSOLIDATED FINANCIAL STATEMENTS</b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>FOR THE YEARS ENDED DECEMBER 31, 2022 AND 2021</b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Note 11 – Retirement Plans- Continued</b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p id="xdx_89F_eus-gaap--ScheduleOfNetBenefitCostsTableTextBlock_zKddHiqvgyx4" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0.5in; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The net periodic benefit cost of the Defined Benefit Plan for the period from January 1, 2022 through December 31, 2022 was as follows:</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> <span id="xdx_8B1_zbK6zisFuRkj" style="display: none">Schedule of Net Periodic Benefit</span></span></span></p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td><span style="-sec-ix-redline: true"> </span></td><td style="font-weight: bold; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td colspan="2" id="xdx_49C_20220101__20221231_z91S77cUpwvi" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"><span style="-sec-ix-redline: true">2022</span></td><td style="padding-bottom: 1.5pt; font-weight: bold"><span style="-sec-ix-redline: true"> </span></td></tr> <tr id="xdx_402_eus-gaap--DefinedBenefitPlanServiceCost_zfz65gDXq6f1" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 80%; text-align: left"><span style="-sec-ix-redline: true">Service cost</span></td><td style="width: 2%"><span style="-sec-ix-redline: true"> </span></td> <td style="width: 1%; text-align: left"><span style="-sec-ix-redline: true">$</span></td><td style="width: 16%; text-align: right"><span style="-sec-ix-redline: true">392,171</span></td><td style="width: 1%; text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> <tr id="xdx_407_eus-gaap--DefinedBenefitPlanInterestCost_z5dmUdX8kKCl" style="vertical-align: bottom; background-color: White"> <td style="text-align: left"><span style="-sec-ix-redline: true">Interest cost</span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true">11,412</span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> <tr id="xdx_403_eus-gaap--DefinedBenefitPlanExpectedReturnOnPlanAssets_iN_di_zXR6WQyhljlh" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left"><span style="-sec-ix-redline: true">Expected return on plan assets</span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true">(102,712</span></td><td style="text-align: left"><span style="-sec-ix-redline: true">)</span></td></tr> <tr id="xdx_404_eus-gaap--DefinedBenefitPlanAmortizationOfPriorServiceCostCredit_zqOQL1mQrE09" style="vertical-align: bottom; background-color: White"> <td style="text-align: left"><span style="-sec-ix-redline: true">Amortization of prior service cost (credit)</span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true">(2,074</span></td><td style="text-align: left"><span style="-sec-ix-redline: true">)</span></td></tr> <tr id="xdx_408_eus-gaap--DefinedBenefitPlanRecognizedNetGainLossDueToSettlementsAndCurtailments1_zZhGaGQEfkwf" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true">(Gain) loss recognized due to settlements and curtailments</span></td><td style="padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 1.5pt solid; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="border-bottom: Black 1.5pt solid; text-align: right"><span style="-sec-ix-redline: true">(23,862</span></td><td style="padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true">)</span></td></tr> <tr id="xdx_403_eus-gaap--DefinedBenefitPlanNetPeriodicBenefitCost_zMB8lhZPxMt6" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 2.5pt"><span style="-sec-ix-redline: true">Net periodic pension benefit cost</span></td><td style="padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 2.5pt double; text-align: left"><span style="-sec-ix-redline: true">$</span></td><td style="border-bottom: Black 2.5pt double; text-align: right"><span style="-sec-ix-redline: true">274,935</span></td><td style="padding-bottom: 2.5pt; text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> </table> <p id="xdx_8A9_zMS80kbZ03za" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p id="xdx_893_eus-gaap--ScheduleOfChangesInProjectedBenefitObligationsTableTextBlock_zk1vhPjPRkMg" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0.5in; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The PBO is the present value of benefits earned to date by plan participants, including the effect of assumed future salary increases. The changes in the projected benefit obligation for the period from January 1, 2022 through December 31, 2022 were as follows:</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> <span id="xdx_8B5_zfwB4Fcq5Wde" style="display: none">Schedule of Projected Benefit Obligation for the Period</span></span></span></p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td><span style="-sec-ix-redline: true"> </span></td><td style="font-weight: bold; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td colspan="2" id="xdx_497_20220101__20221231_zfkWh8zTrlg" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"><span style="-sec-ix-redline: true">2022</span></td><td style="padding-bottom: 1.5pt; font-weight: bold"><span style="-sec-ix-redline: true"> </span></td></tr> <tr id="xdx_40F_eus-gaap--DefinedBenefitPlanBenefitObligation_iS_zw2YNxiQqfla" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 80%"><span style="-sec-ix-redline: true">PBO, beginning of period</span></td><td style="width: 2%"><span style="-sec-ix-redline: true"> </span></td> <td style="width: 1%; text-align: left"><span style="-sec-ix-redline: true">$</span></td><td style="width: 16%; text-align: right"><span style="-sec-ix-redline: true">4,209,784</span></td><td style="width: 1%; text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> <tr id="xdx_401_eus-gaap--DefinedBenefitPlanServiceCost_ziOzAd1K1mdc" style="vertical-align: bottom; background-color: White"> <td style="padding-left: 10pt; text-align: left"><span style="-sec-ix-redline: true">Service cost</span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true">392,171</span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> <tr id="xdx_406_eus-gaap--DefinedBenefitPlanInterestCost_zvYPgOzUyEw1" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-left: 10pt; text-align: left"><span style="-sec-ix-redline: true">Interest cost</span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true">11,412</span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> <tr id="xdx_40E_eus-gaap--DefinedBenefitPlanBenefitObligationContributionsByPlanParticipant_zaXZgIkcOsr8" style="vertical-align: bottom; background-color: White"> <td style="padding-left: 10pt; text-align: left"><span style="-sec-ix-redline: true">Plan participation contributions</span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true">238,623</span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> <tr id="xdx_404_eus-gaap--DefinedBenefitPlanActuarialGainLoss_zENyNU9bHmnb" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-left: 10pt; text-align: left"><span style="-sec-ix-redline: true">Actuarial (gains) / losses</span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true">(643,244</span></td><td style="text-align: left"><span style="-sec-ix-redline: true">)</span></td></tr> <tr id="xdx_401_eus-gaap--DefinedBenefitPlanBenefitObligationBenefitsPaid_zv94YMMRPAzg" style="vertical-align: bottom; background-color: White"> <td style="padding-left: 10pt; text-align: left"><span style="-sec-ix-redline: true">Benefits paid through plan assets</span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true">229,285</span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> <tr id="xdx_40D_ecustom--DefinedBenefitPlanCurtailmentsSettlementSpecialTerminationBenefits_zEsC4YtIPyYb" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-left: 10pt; text-align: left"><span style="-sec-ix-redline: true">Curtailments, settlements and special contractual termination benefits</span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true">(1,077,952</span></td><td style="text-align: left"><span style="-sec-ix-redline: true">)</span></td></tr> <tr id="xdx_405_eus-gaap--DefinedBenefitPlanForeignCurrencyExchangeRateChangesBenefitObligation_zIXcGydoTH9" style="vertical-align: bottom; background-color: White"> <td style="padding-left: 10pt; text-align: left; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true">Foreign currency exchange rate changes</span></td><td style="padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 1.5pt solid; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="border-bottom: Black 1.5pt solid; text-align: right"><span style="-sec-ix-redline: true">(60,459</span></td><td style="padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true">)</span></td></tr> <tr id="xdx_408_eus-gaap--DefinedBenefitPlanBenefitObligation_iE_zM6tZAs9jqK2" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td><span style="-sec-ix-redline: true">PBO, end of period</span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true">3,299,621</span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> <tr id="xdx_40B_ecustom--DefinedBenefitPlanFutureSalaryIncreases_iN_di_znEpbXS9yZT8" style="vertical-align: bottom; background-color: White"> <td style="padding-left: 10pt; text-align: left; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true">Component representing future salary increases</span></td><td style="padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 1.5pt solid; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="border-bottom: Black 1.5pt solid; text-align: right"><span style="-sec-ix-redline: true">(115,814</span></td><td style="padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true">)</span></td></tr> <tr id="xdx_40A_eus-gaap--DefinedBenefitPlanAccumulatedBenefitObligation_iE_zflLEXcomOV7" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 2.5pt"><span style="-sec-ix-redline: true">Accumulated benefit obligation (“ABO”), end of period</span></td><td style="padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 2.5pt double; text-align: left"><span style="-sec-ix-redline: true">$</span></td><td style="border-bottom: Black 2.5pt double; text-align: right"><span style="-sec-ix-redline: true">3,183,807</span></td><td style="padding-bottom: 2.5pt; text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> </table> <p id="xdx_8A5_zNCBdFb8vd5" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p id="xdx_894_eus-gaap--ScheduleOfChangesInFairValueOfPlanAssetsTableTextBlock_zp2o57sAPf36" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0.5in; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">For the period from January 1, 2022 through December 31, 2022, the change in fair value of the Pension Plan assets were as follows:</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> <span id="xdx_8B8_zGjc0dZcYLn1" style="display: none">Schedule of Change in Fair Value of the Pension Plan Assets</span></span></span></p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td><span style="-sec-ix-redline: true"> </span></td><td style="font-weight: bold; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td colspan="2" id="xdx_492_20220101__20221231_zycCFhLkTpz8" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"><span style="-sec-ix-redline: true">2022</span></td><td style="padding-bottom: 1.5pt; font-weight: bold"><span style="-sec-ix-redline: true"> </span></td></tr> <tr id="xdx_408_eus-gaap--DefinedBenefitPlanFairValueOfPlanAssets_iS_zdKceVwYHAWi" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 80%"><span style="-sec-ix-redline: true">Fair value of plan assets, beginning of period</span></td><td style="width: 2%"><span style="-sec-ix-redline: true"> </span></td> <td style="width: 1%; text-align: left"><span style="-sec-ix-redline: true">$</span></td><td style="width: 16%; text-align: right"><span style="-sec-ix-redline: true">3,878,058</span></td><td style="width: 1%; text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> <tr id="xdx_406_eus-gaap--DefinedBenefitPlanExpectedReturnOnPlanAssets_zoKdPkl50bWl" style="vertical-align: bottom; background-color: White"> <td style="padding-left: 10pt; text-align: left"><span style="-sec-ix-redline: true">Expected return on plan assets</span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true">102,712</span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> <tr id="xdx_406_eus-gaap--DefinedBenefitPlanFairValueOfPlanAssetsPeriodIncreaseDecrease_zWW2YzL31GEe" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-left: 10pt; text-align: left"><span style="-sec-ix-redline: true">Gain / (losses) on plan assets</span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true">(460,646</span></td><td style="text-align: left"><span style="-sec-ix-redline: true">)</span></td></tr> <tr id="xdx_409_eus-gaap--DefinedBenefitPlanContributionsByEmployer_z8ohB9ICwYZ5" style="vertical-align: bottom; background-color: White"> <td style="padding-left: 10pt; text-align: left"><span style="-sec-ix-redline: true">Employer contributions</span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true">357,934</span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> <tr id="xdx_409_eus-gaap--DefinedBenefitPlanPlanAssetsContributionsByPlanParticipant_zXGepWxVSFPd" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-left: 10pt; text-align: left"><span style="-sec-ix-redline: true">Plan participant contributions</span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true">238,623</span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> <tr id="xdx_40B_eus-gaap--DefinedBenefitPlanPlanAssetsBenefitsPaid_zBrhMyMmoU4l" style="vertical-align: bottom; background-color: White"> <td style="padding-left: 10pt; text-align: left"><span style="-sec-ix-redline: true">Benefits paid through plan assets</span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true">229,285</span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> <tr id="xdx_401_eus-gaap--DefinedBenefitPlanSettlementsPlanAssets_iN_di_zWLYAsrPzyHf" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-left: 10pt"><span style="-sec-ix-redline: true">Settlements</span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true">(1,002,215</span></td><td style="text-align: left"><span style="-sec-ix-redline: true">)</span></td></tr> <tr id="xdx_405_eus-gaap--DefinedBenefitPlanPlanAssetsForeignCurrencyTranslationGainLoss_zdjpzxXKf7Tj" style="vertical-align: bottom; background-color: White"> <td style="padding-left: 10pt; text-align: left; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true">Foreign currency exchange rate changes</span></td><td style="padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 1.5pt solid; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="border-bottom: Black 1.5pt solid; text-align: right"><span style="-sec-ix-redline: true">(47,347</span></td><td style="padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true">)</span></td></tr> <tr id="xdx_40A_eus-gaap--DefinedBenefitPlanFairValueOfPlanAssets_iE_zYZw8xIL0p0b" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-bottom: 2.5pt"><span style="-sec-ix-redline: true">Fair value of plan assets, end of period</span></td><td style="padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 2.5pt double; text-align: left"><span style="-sec-ix-redline: true">$</span></td><td style="border-bottom: Black 2.5pt double; text-align: right"><span style="-sec-ix-redline: true">3,296,404</span></td><td style="padding-bottom: 2.5pt; text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> </table> <p id="xdx_8A1_zldH7Fg9Eia1" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>AGEAGLE AERIAL SYSTEMS INC. AND SUBSIDIARIES </b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>NOTES TO CONSOLIDATED FINANCIAL STATEMENTS</b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>FOR THE YEARS ENDED DECEMBER 31, 2022 AND 2021</b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Note 11 – Retirement Plans- Continued</b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0.5in; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">senseFly S.A.’s investment objectives are to ensure that the assets of its Defined Benefit Plan are invested to provide an optimal rate of investment return on the total investment portfolio, consistent with the assumption of a reasonable risk level, and to ensure that pension funds are available to meet the plans’ benefit obligations as they become due. senseFly S.A. believes that a well-diversified investment portfolio will result in the highest attainable investment return with an acceptable level of overall risk. Investment strategies and allocation decisions are also governed by applicable governmental regulatory agencies. senseFly’s investment strategy with respect to the <span id="xdx_906_eus-gaap--DefinedBenefitPlansGeneralInformation_c20220101__20221231_zo0DjEZZYjU8" title="Defined benefit plan, description">Defined Benefit Plan is to invest in accordance with the following allocation: 27.5% in equities, 35.4% in bonds, 17.3% in real estate, 11.3% in alternative investments and 8.5% in cash and cash equivalents.</span></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p id="xdx_895_eus-gaap--DefinedBenefitPlanPlanAssetsCategoryTableTextBlock_zdI7F3AhRPN3" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0.5in; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The following tables present the fair value of the Defined Benefit Plan assets by major categories and by levels within the fair value hierarchy as of December 31, 2022:</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> <span id="xdx_8B5_zYZd1d2l7duh" style="display: none">Schedule of Defined Benefit Plan Assets by Major Categories</span></span></span></p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td><span style="-sec-ix-redline: true"> </span></td><td style="font-weight: bold; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td colspan="2" id="xdx_49E_20221231__us-gaap--FairValueByFairValueHierarchyLevelAxis__us-gaap--FairValueInputsLevel1Member_zEUR6cpQDq3f" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"><span style="-sec-ix-redline: true">Level 1</span></td><td style="padding-bottom: 1.5pt; font-weight: bold"><span style="-sec-ix-redline: true"> </span></td><td style="font-weight: bold; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td colspan="2" id="xdx_49F_20221231__us-gaap--FairValueByFairValueHierarchyLevelAxis__us-gaap--FairValueInputsLevel2Member_zj79UT7iM7c" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"><span style="-sec-ix-redline: true">Level 2</span></td><td style="padding-bottom: 1.5pt; font-weight: bold"><span style="-sec-ix-redline: true"> </span></td><td style="font-weight: bold; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td colspan="2" id="xdx_495_20221231__us-gaap--FairValueByFairValueHierarchyLevelAxis__us-gaap--FairValueInputsLevel3Member_z1p1pCGFOMff" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"><span style="-sec-ix-redline: true">Level 3</span></td><td style="padding-bottom: 1.5pt; font-weight: bold"><span style="-sec-ix-redline: true"> </span></td><td style="font-weight: bold; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td colspan="2" id="xdx_49C_20221231_zag9m1llTZpk" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"><span style="-sec-ix-redline: true">Total</span></td><td style="padding-bottom: 1.5pt; font-weight: bold"><span style="-sec-ix-redline: true"> </span></td></tr> <tr id="xdx_40B_eus-gaap--CashEquivalentsAtCarryingValue_iI_zyrFzvasLq5h" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 44%; text-align: justify"><span style="-sec-ix-redline: true">Cash and equivalents</span></td><td style="width: 2%"><span style="-sec-ix-redline: true"> </span></td> <td style="width: 1%; text-align: left"><span style="-sec-ix-redline: true">$</span></td><td style="width: 10%; text-align: right"><span style="-sec-ix-redline: true">279,883</span></td><td style="width: 1%; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="width: 2%"><span style="-sec-ix-redline: true"> </span></td> <td style="width: 1%; text-align: left"><span style="-sec-ix-redline: true">$</span></td><td style="width: 10%; text-align: right"><span style="-sec-ix-redline: true"><span style="-sec-ix-hidden: xdx2ixbrl4107">-</span></span></td><td style="width: 1%; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="width: 2%"><span style="-sec-ix-redline: true"> </span></td> <td style="width: 1%; text-align: left"><span style="-sec-ix-redline: true">$</span></td><td style="width: 10%; text-align: right"><span style="-sec-ix-redline: true"><span style="-sec-ix-hidden: xdx2ixbrl4108">-</span></span></td><td style="width: 1%; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="width: 2%"><span style="-sec-ix-redline: true"> </span></td> <td style="width: 1%; text-align: left"><span style="-sec-ix-redline: true">$</span></td><td style="width: 10%; text-align: right"><span style="-sec-ix-redline: true">279,883</span></td><td style="width: 1%; text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> <tr id="xdx_407_eus-gaap--EquitySecuritiesFvNi_iI_zsVpddZTKhR3" style="vertical-align: bottom; background-color: White"> <td style="text-align: justify"><span style="-sec-ix-redline: true">Equity securities</span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true">906,136</span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true"><span style="-sec-ix-hidden: xdx2ixbrl4112">-</span></span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true"><span style="-sec-ix-hidden: xdx2ixbrl4113">-</span></span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true">906,136</span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> <tr id="xdx_40F_eus-gaap--LongTermTransitionBond_iI_zl1PHjSc6W9d" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify"><span style="-sec-ix-redline: true">Bonds</span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true">1,167,789</span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true"><span style="-sec-ix-hidden: xdx2ixbrl4117">-</span></span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true"><span style="-sec-ix-hidden: xdx2ixbrl4118">-</span></span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true">1,167,789</span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> <tr id="xdx_40F_eus-gaap--RealEstateGrossAtCarryingValue_iI_zpRklQ0WWZ8h" style="vertical-align: bottom; background-color: White"> <td style="text-align: justify"><span style="-sec-ix-redline: true">Real estate</span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true"><span style="-sec-ix-hidden: xdx2ixbrl4121">-</span></span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true">570,490</span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true"><span style="-sec-ix-hidden: xdx2ixbrl4123">-</span></span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true">570,490</span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> <tr id="xdx_408_eus-gaap--AlternativeInvestment_iI_zX2YhfIejC35" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true">Alternative investments</span></td><td style="padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 1.5pt solid; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="border-bottom: Black 1.5pt solid; text-align: right"><span style="-sec-ix-redline: true"><span style="-sec-ix-hidden: xdx2ixbrl4126">-</span></span></td><td style="padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 1.5pt solid; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="border-bottom: Black 1.5pt solid; text-align: right"><span style="-sec-ix-redline: true">372,105</span></td><td style="padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 1.5pt solid; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="border-bottom: Black 1.5pt solid; text-align: right"><span style="-sec-ix-redline: true"><span style="-sec-ix-hidden: xdx2ixbrl4128">-</span></span></td><td style="padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 1.5pt solid; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="border-bottom: Black 1.5pt solid; text-align: right"><span style="-sec-ix-redline: true">372,105</span></td><td style="padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> <tr id="xdx_401_eus-gaap--DefinedBenefitPlanFairValueOfPlanAssets_iI_zcELh0boF8r4" style="vertical-align: bottom; background-color: White"> <td style="text-align: justify; padding-bottom: 2.5pt"><span style="-sec-ix-redline: true">Total fair value of plan assets</span></td><td style="padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 2.5pt double; text-align: left"><span style="-sec-ix-redline: true">$</span></td><td style="border-bottom: Black 2.5pt double; text-align: right"><span style="-sec-ix-redline: true">2,353,808</span></td><td style="padding-bottom: 2.5pt; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 2.5pt double; text-align: left"><span style="-sec-ix-redline: true">$</span></td><td style="border-bottom: Black 2.5pt double; text-align: right"><span style="-sec-ix-redline: true">942,596</span></td><td style="padding-bottom: 2.5pt; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 2.5pt double; text-align: left"><span style="-sec-ix-redline: true">$</span></td><td style="border-bottom: Black 2.5pt double; text-align: right"><span style="-sec-ix-redline: true"><span style="-sec-ix-hidden: xdx2ixbrl4133">-</span></span></td><td style="padding-bottom: 2.5pt; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 2.5pt double; text-align: left"><span style="-sec-ix-redline: true">$</span></td><td style="border-bottom: Black 2.5pt double; text-align: right"><span style="-sec-ix-redline: true">3,296,404</span></td><td style="padding-bottom: 2.5pt; text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> </table> <p id="xdx_8AD_z8SAFIU8iD38" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p id="xdx_892_eus-gaap--ScheduleOfBenefitObligationsInExcessOfFairValueOfPlanAssetsTableTextBlock_zDDEKu61rb3f" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0.5in; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The following table shows the unfunded status of the Defined Benefit Plan, defined as plan assets less the projected benefit obligation as of December 31, 2022:</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> <span id="xdx_8BA_zC6O2jc6Caa1" style="display: none">Schedule of Projected Benefit Obligation</span></span></span></p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="display: none; vertical-align: bottom; background-color: rgb(204,238,255)"> <td> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_494_20221231_zqXvhXStHpn6" style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr id="xdx_408_eus-gaap--DefinedBenefitPlanFairValueOfPlanAssets_iI_zBF7opK50yz8" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 80%"><span style="-sec-ix-redline: true">Fair value of plan assets</span></td><td style="width: 2%"><span style="-sec-ix-redline: true"> </span></td> <td style="width: 1%; text-align: left"><span style="-sec-ix-redline: true">$</span></td><td style="width: 16%; text-align: right"><span style="-sec-ix-redline: true">3,296,404</span></td><td style="width: 1%; text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> <tr id="xdx_408_eus-gaap--DefinedBenefitPlanBenefitObligation_iNI_di_zdmSb6J6SbEi" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true">Less: PBO</span></td><td style="padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 1.5pt solid; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="border-bottom: Black 1.5pt solid; text-align: right"><span style="-sec-ix-redline: true">(3,299,621</span></td><td style="padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true">)</span></td></tr> <tr id="xdx_405_eus-gaap--DefinedBenefitPlanFundedStatusOfPlan_iI_zejJihxn8D15" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-bottom: 2.5pt"><span style="-sec-ix-redline: true">Underfunded status, end of period</span></td><td style="font-weight: bold; padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left"><span style="-sec-ix-redline: true">$</span></td><td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right"><span style="-sec-ix-redline: true">(3,217</span></td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left"><span style="-sec-ix-redline: true">)</span></td></tr> </table> <p id="xdx_8AB_zbOFNnV1Ukh8" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0.5in; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">As of December 31, 2022, the underfunded status is included in other liabilities on the consolidated balance sheet.</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p id="xdx_898_eus-gaap--ScheduleOfDefinedBenefitPlanAmountsRecognizedInOtherComprehensiveIncomeLossTableTextBlock_zYIH4ly4yq6d" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0.5in; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The Defined Benefit Plan has a PBO in excess of Defined Benefit Plan assets. For the period from January 1, 2022 through December 31, 2022, the amounts recognized in accumulated other comprehensive loss related to the Defined Benefit Plan were as follows:</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> <span id="xdx_8BA_z2CMt6VSbBM6" style="display: none">Schedule of Comprehensive Loss Related to the Defined Benefit Plan</span></span></span></p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td><span style="-sec-ix-redline: true"> </span></td><td style="font-weight: bold; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td colspan="2" id="xdx_498_20221231_zBzRyryxPonb" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"><span style="-sec-ix-redline: true">2022</span></td><td style="padding-bottom: 1.5pt; font-weight: bold"><span style="-sec-ix-redline: true"> </span></td></tr> <tr id="xdx_402_eus-gaap--DefinedBenefitPlanAccumulatedOtherComprehensiveIncomeNetPriorServiceCostCreditAfterTax_iI_z1Qqf3xpdRH7" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 80%; text-align: left"><span style="-sec-ix-redline: true">Net prior service (cost) / credit</span></td><td style="width: 2%"><span style="-sec-ix-redline: true"> </span></td> <td style="width: 1%; text-align: left"><span style="-sec-ix-redline: true">$</span></td><td style="width: 16%; text-align: right"><span style="-sec-ix-redline: true">13,941</span></td><td style="width: 1%; text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> <tr id="xdx_403_eus-gaap--DefinedBenefitPlanAccumulatedOtherComprehensiveIncomeNetGainsLossesAfterTax_iI_zgXrrV86GzS9" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true">Net gain / (loss)</span></td><td style="padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 1.5pt solid; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="border-bottom: Black 1.5pt solid; text-align: right"><span style="-sec-ix-redline: true">121,498</span></td><td style="padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> <tr id="xdx_40D_eus-gaap--AccumulatedOtherComprehensiveIncomeLossDefinedBenefitPensionAndOtherPostretirementPlansNetOfTax_iI_zM9Isa7D19Al" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 2.5pt"><span style="-sec-ix-redline: true">Accumulated other comprehensive income (loss), net of tax</span></td><td style="padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 2.5pt double; text-align: left"><span style="-sec-ix-redline: true">$</span></td><td style="border-bottom: Black 2.5pt double; text-align: right"><span style="-sec-ix-redline: true">135,439</span></td><td style="padding-bottom: 2.5pt; text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> </table> <p id="xdx_8AC_z9lvwR4fOGSe" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0.5in; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The net prior service credit included in accumulated other comprehensive loss as of December 31, 2022, is expected to be recognized as a component of net periodic benefit cost during the year ending December 31, 2023.</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>AGEAGLE AERIAL SYSTEMS INC. AND SUBSIDIARIES </b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>NOTES TO CONSOLIDATED FINANCIAL STATEMENTS</b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>FOR THE YEARS ENDED DECEMBER 31, 2022 AND 2021</b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Note 11 – Retirement Plans- Continued</b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p id="xdx_896_eus-gaap--ScheduleOfAssumptionsUsedTableTextBlock_zgu5l4f0U3ne" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0.5in; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The actuarial assumptions for the Defined Benefit Plan were as follows:</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> <span id="xdx_8BA_z98oB0lgo6c1" style="display: none">Schedule of Assumptions</span></span></span></p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td style="font-weight: bold"><span style="-sec-ix-redline: true">Benefit obligations:</span></td><td><span style="-sec-ix-redline: true"> </span></td> <td colspan="2"><span style="-sec-ix-redline: true"> </span></td><td><span style="-sec-ix-redline: true"> </span></td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-left: 10pt; width: 80%; text-align: left"><span style="-sec-ix-redline: true">Discount rate</span></td><td style="width: 2%"><span style="-sec-ix-redline: true"> </span></td> <td style="width: 1%; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td id="xdx_98D_eus-gaap--DefinedBenefitPlanAssumptionsUsedCalculatingBenefitObligationDiscountRate_iI_dp_uPure_c20221231_zba66irfj0Y5" style="width: 16%; text-align: right" title="Discount rate"><span style="-sec-ix-redline: true">2.25</span></td><td style="width: 1%; text-align: left"><span style="-sec-ix-redline: true">%</span></td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-left: 10pt; text-align: left"><span style="-sec-ix-redline: true">Estimated rate of compensation increase</span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td id="xdx_986_eus-gaap--DefinedBenefitPlanAssumptionsUsedCalculatingBenefitObligationRateOfCompensationIncrease_iI_dp_uPure_c20221231_zAv1JuJuWFCf" style="text-align: right" title="Estimated rate of compensation increase"><span style="-sec-ix-redline: true">1.25</span></td><td style="text-align: left"><span style="-sec-ix-redline: true">%</span></td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-weight: bold; text-align: left"><span style="-sec-ix-redline: true">Periodic costs:</span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-left: 10pt; text-align: left"><span style="-sec-ix-redline: true">Discount rate</span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td id="xdx_984_eus-gaap--DefinedBenefitPlanAssumptionsUsedCalculatingNetPeriodicBenefitCostDiscountRate_dp_uPure_c20220101__20221231_zb8EXEP8fCn8" style="text-align: right" title="Periodic costs discount rate"><span style="-sec-ix-redline: true">2.25</span></td><td style="text-align: left"><span style="-sec-ix-redline: true">%</span></td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-left: 10pt; text-align: left"><span style="-sec-ix-redline: true">Estimated rate of compensation increase</span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td id="xdx_989_eus-gaap--DefinedBenefitPlanAssumptionsUsedCalculatingNetPeriodicBenefitCostRateOfCompensationIncrease_dp_uPure_c20220101__20221231_zdTtGNgJ96Ue" style="text-align: right" title="Periodic costs of estimated rate of compensation increase"><span style="-sec-ix-redline: true">1.25</span></td><td style="text-align: left"><span style="-sec-ix-redline: true">%</span></td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-left: 10pt; text-align: left"><span style="-sec-ix-redline: true">Expected average rate of return on plan assets</span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td id="xdx_98D_eus-gaap--DefinedBenefitPlanAssumptionsUsedCalculatingNetPeriodicBenefitCostChangeDueToSubsequentInterimMeasurementWeightedAverageExpectedLongTermRateOfReturnOnPlanAssets_dp_uPure_c20220101__20221231_zHq631Mugev9" style="text-align: right" title="Periodic costs of expected average rate of return on plan assets"><span style="-sec-ix-redline: true">3.85</span></td><td style="text-align: left"><span style="-sec-ix-redline: true">%</span></td></tr> </table> <p id="xdx_8A5_zMDUasLs6ZSg" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p id="xdx_891_eus-gaap--ScheduleOfExpectedBenefitPaymentsTableTextBlock_zyvmuFgt61Se" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0.5in; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The following table shows expected benefit payments from the Defined Benefit Plan for the next five fiscal years and the aggregate five years thereafter:</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> <span id="xdx_8B2_z0XhDMTzOnx9" style="display: none">Schedule of Expected Benefit Payments</span></span></span></p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td style="border-bottom: Black 1.5pt solid; font-weight: bold"><span style="-sec-ix-redline: true">Year ending December 31:</span></td><td style="font-weight: bold; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td colspan="2" id="xdx_496_20221231_zQDU19XYXEE" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"><span style="-sec-ix-redline: true">Expected Plan Benefit Payments</span></td><td style="padding-bottom: 1.5pt; font-weight: bold"><span style="-sec-ix-redline: true"> </span></td></tr> <tr id="xdx_404_eus-gaap--DefinedBenefitPlanExpectedFutureBenefitPaymentsNextTwelveMonths_iI_maDBPPCzKEk_zLPSJZB4YHg8" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-left: 10pt; width: 80%; text-align: left"><span style="-sec-ix-redline: true">2023</span></td><td style="width: 2%"><span style="-sec-ix-redline: true"> </span></td> <td style="width: 1%; text-align: left"><span style="-sec-ix-redline: true">$</span></td><td style="width: 16%; text-align: right"><span style="-sec-ix-redline: true">407,493</span></td><td style="width: 1%; text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> <tr id="xdx_404_eus-gaap--DefinedBenefitPlanExpectedFutureBenefitPaymentsYearTwo_iI_maDBPPCzKEk_z2E63zbHbjJ4" style="vertical-align: bottom; background-color: White"> <td style="padding-left: 10pt; text-align: left"><span style="-sec-ix-redline: true">2024</span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true">391,408</span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> <tr id="xdx_40E_eus-gaap--DefinedBenefitPlanExpectedFutureBenefitPaymentsYearThree_iI_maDBPPCzKEk_zOpTXwiAepu9" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-left: 10pt; text-align: left"><span style="-sec-ix-redline: true">2025</span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true">372,105</span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> <tr id="xdx_402_eus-gaap--DefinedBenefitPlanExpectedFutureBenefitPaymentsYearFour_iI_maDBPPCzKEk_zAVbi1iyW3Pg" style="vertical-align: bottom; background-color: White"> <td style="padding-left: 10pt; text-align: left"><span style="-sec-ix-redline: true">2026</span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true">351,731</span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> <tr id="xdx_40C_eus-gaap--DefinedBenefitPlanExpectedFutureBenefitPaymentsYearFive_iI_maDBPPCzKEk_zK2fj51cETc8" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-left: 10pt; text-align: left"><span style="-sec-ix-redline: true">2027</span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true">331,356</span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> <tr id="xdx_405_eus-gaap--DefinedBenefitPlanExpectedFutureBenefitPaymentsFiveFiscalYearsThereafter_iI_maDBPPCzKEk_zBW59l8VQOO8" style="vertical-align: bottom; background-color: White"> <td style="padding-left: 10pt; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true">2028-2032</span></td><td style="padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 1.5pt solid; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="border-bottom: Black 1.5pt solid; text-align: right"><span style="-sec-ix-redline: true">1,380,114</span></td><td style="padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> <tr id="xdx_40B_eus-gaap--DefinedBenefitPensionPlanCurrentAndNoncurrentLiabilities_iTI_mtDBPPCzKEk_zmEJLQekA5zi" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 2.5pt"><span style="-sec-ix-redline: true">Total expected benefit payments by the plan</span></td><td style="padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 2.5pt double; text-align: left"><span style="-sec-ix-redline: true">$</span></td><td style="border-bottom: Black 2.5pt double; text-align: right"><span style="-sec-ix-redline: true">3,234,208</span></td><td style="padding-bottom: 2.5pt; text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> </table> <p id="xdx_8A2_znZfwBnI3tAi" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i>Defined Contribution Plan</i></b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0.5in; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The Company sponsors the AgEagle Aerial Systems 401(k) Plan (the “401(k) Plan”) that covers substantially all eligible employees in the United States. The Company matches contributions made by eligible employees, subject to certain percentage limits of the employees’ earnings. For the years ended December 31, 2022 and 2021, the Company’s employer contribution to the 401(k) Plan totaled $<span id="xdx_90F_eus-gaap--MultiemployerPlanPensionSignificantPlanContribution_c20220101__20221231_zAArihjAq1I2" title="Employer contribution">149,543</span> and $<span id="xdx_90B_eus-gaap--MultiemployerPlanPensionSignificantPlanContribution_c20210101__20211231_zIo6NPw0zLxi" title="Employer contribution">11,127</span>, respectively.</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>AGEAGLE AERIAL SYSTEMS INC. AND SUBSIDIARIES </b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>NOTES TO CONSOLIDATED FINANCIAL STATEMENTS</b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>FOR THE YEARS ENDED DECEMBER 31, 2022 AND 2021</b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p id="xdx_89F_eus-gaap--ScheduleOfNetBenefitCostsTableTextBlock_zKddHiqvgyx4" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0.5in; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The net periodic benefit cost of the Defined Benefit Plan for the period from January 1, 2022 through December 31, 2022 was as follows:</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> <span id="xdx_8B1_zbK6zisFuRkj" style="display: none">Schedule of Net Periodic Benefit</span></span></span></p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td><span style="-sec-ix-redline: true"> </span></td><td style="font-weight: bold; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td colspan="2" id="xdx_49C_20220101__20221231_z91S77cUpwvi" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"><span style="-sec-ix-redline: true">2022</span></td><td style="padding-bottom: 1.5pt; font-weight: bold"><span style="-sec-ix-redline: true"> </span></td></tr> <tr id="xdx_402_eus-gaap--DefinedBenefitPlanServiceCost_zfz65gDXq6f1" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 80%; text-align: left"><span style="-sec-ix-redline: true">Service cost</span></td><td style="width: 2%"><span style="-sec-ix-redline: true"> </span></td> <td style="width: 1%; text-align: left"><span style="-sec-ix-redline: true">$</span></td><td style="width: 16%; text-align: right"><span style="-sec-ix-redline: true">392,171</span></td><td style="width: 1%; text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> <tr id="xdx_407_eus-gaap--DefinedBenefitPlanInterestCost_z5dmUdX8kKCl" style="vertical-align: bottom; background-color: White"> <td style="text-align: left"><span style="-sec-ix-redline: true">Interest cost</span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true">11,412</span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> <tr id="xdx_403_eus-gaap--DefinedBenefitPlanExpectedReturnOnPlanAssets_iN_di_zXR6WQyhljlh" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left"><span style="-sec-ix-redline: true">Expected return on plan assets</span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true">(102,712</span></td><td style="text-align: left"><span style="-sec-ix-redline: true">)</span></td></tr> <tr id="xdx_404_eus-gaap--DefinedBenefitPlanAmortizationOfPriorServiceCostCredit_zqOQL1mQrE09" style="vertical-align: bottom; background-color: White"> <td style="text-align: left"><span style="-sec-ix-redline: true">Amortization of prior service cost (credit)</span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true">(2,074</span></td><td style="text-align: left"><span style="-sec-ix-redline: true">)</span></td></tr> <tr id="xdx_408_eus-gaap--DefinedBenefitPlanRecognizedNetGainLossDueToSettlementsAndCurtailments1_zZhGaGQEfkwf" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true">(Gain) loss recognized due to settlements and curtailments</span></td><td style="padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 1.5pt solid; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="border-bottom: Black 1.5pt solid; text-align: right"><span style="-sec-ix-redline: true">(23,862</span></td><td style="padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true">)</span></td></tr> <tr id="xdx_403_eus-gaap--DefinedBenefitPlanNetPeriodicBenefitCost_zMB8lhZPxMt6" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 2.5pt"><span style="-sec-ix-redline: true">Net periodic pension benefit cost</span></td><td style="padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 2.5pt double; text-align: left"><span style="-sec-ix-redline: true">$</span></td><td style="border-bottom: Black 2.5pt double; text-align: right"><span style="-sec-ix-redline: true">274,935</span></td><td style="padding-bottom: 2.5pt; text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> </table> 392171 11412 102712 -2074 -23862 274935 <p id="xdx_893_eus-gaap--ScheduleOfChangesInProjectedBenefitObligationsTableTextBlock_zk1vhPjPRkMg" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0.5in; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The PBO is the present value of benefits earned to date by plan participants, including the effect of assumed future salary increases. The changes in the projected benefit obligation for the period from January 1, 2022 through December 31, 2022 were as follows:</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> <span id="xdx_8B5_zfwB4Fcq5Wde" style="display: none">Schedule of Projected Benefit Obligation for the Period</span></span></span></p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td><span style="-sec-ix-redline: true"> </span></td><td style="font-weight: bold; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td colspan="2" id="xdx_497_20220101__20221231_zfkWh8zTrlg" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"><span style="-sec-ix-redline: true">2022</span></td><td style="padding-bottom: 1.5pt; font-weight: bold"><span style="-sec-ix-redline: true"> </span></td></tr> <tr id="xdx_40F_eus-gaap--DefinedBenefitPlanBenefitObligation_iS_zw2YNxiQqfla" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 80%"><span style="-sec-ix-redline: true">PBO, beginning of period</span></td><td style="width: 2%"><span style="-sec-ix-redline: true"> </span></td> <td style="width: 1%; text-align: left"><span style="-sec-ix-redline: true">$</span></td><td style="width: 16%; text-align: right"><span style="-sec-ix-redline: true">4,209,784</span></td><td style="width: 1%; text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> <tr id="xdx_401_eus-gaap--DefinedBenefitPlanServiceCost_ziOzAd1K1mdc" style="vertical-align: bottom; background-color: White"> <td style="padding-left: 10pt; text-align: left"><span style="-sec-ix-redline: true">Service cost</span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true">392,171</span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> <tr id="xdx_406_eus-gaap--DefinedBenefitPlanInterestCost_zvYPgOzUyEw1" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-left: 10pt; text-align: left"><span style="-sec-ix-redline: true">Interest cost</span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true">11,412</span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> <tr id="xdx_40E_eus-gaap--DefinedBenefitPlanBenefitObligationContributionsByPlanParticipant_zaXZgIkcOsr8" style="vertical-align: bottom; background-color: White"> <td style="padding-left: 10pt; text-align: left"><span style="-sec-ix-redline: true">Plan participation contributions</span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true">238,623</span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> <tr id="xdx_404_eus-gaap--DefinedBenefitPlanActuarialGainLoss_zENyNU9bHmnb" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-left: 10pt; text-align: left"><span style="-sec-ix-redline: true">Actuarial (gains) / losses</span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true">(643,244</span></td><td style="text-align: left"><span style="-sec-ix-redline: true">)</span></td></tr> <tr id="xdx_401_eus-gaap--DefinedBenefitPlanBenefitObligationBenefitsPaid_zv94YMMRPAzg" style="vertical-align: bottom; background-color: White"> <td style="padding-left: 10pt; text-align: left"><span style="-sec-ix-redline: true">Benefits paid through plan assets</span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true">229,285</span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> <tr id="xdx_40D_ecustom--DefinedBenefitPlanCurtailmentsSettlementSpecialTerminationBenefits_zEsC4YtIPyYb" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-left: 10pt; text-align: left"><span style="-sec-ix-redline: true">Curtailments, settlements and special contractual termination benefits</span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true">(1,077,952</span></td><td style="text-align: left"><span style="-sec-ix-redline: true">)</span></td></tr> <tr id="xdx_405_eus-gaap--DefinedBenefitPlanForeignCurrencyExchangeRateChangesBenefitObligation_zIXcGydoTH9" style="vertical-align: bottom; background-color: White"> <td style="padding-left: 10pt; text-align: left; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true">Foreign currency exchange rate changes</span></td><td style="padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 1.5pt solid; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="border-bottom: Black 1.5pt solid; text-align: right"><span style="-sec-ix-redline: true">(60,459</span></td><td style="padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true">)</span></td></tr> <tr id="xdx_408_eus-gaap--DefinedBenefitPlanBenefitObligation_iE_zM6tZAs9jqK2" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td><span style="-sec-ix-redline: true">PBO, end of period</span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true">3,299,621</span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> <tr id="xdx_40B_ecustom--DefinedBenefitPlanFutureSalaryIncreases_iN_di_znEpbXS9yZT8" style="vertical-align: bottom; background-color: White"> <td style="padding-left: 10pt; text-align: left; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true">Component representing future salary increases</span></td><td style="padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 1.5pt solid; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="border-bottom: Black 1.5pt solid; text-align: right"><span style="-sec-ix-redline: true">(115,814</span></td><td style="padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true">)</span></td></tr> <tr id="xdx_40A_eus-gaap--DefinedBenefitPlanAccumulatedBenefitObligation_iE_zflLEXcomOV7" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 2.5pt"><span style="-sec-ix-redline: true">Accumulated benefit obligation (“ABO”), end of period</span></td><td style="padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 2.5pt double; text-align: left"><span style="-sec-ix-redline: true">$</span></td><td style="border-bottom: Black 2.5pt double; text-align: right"><span style="-sec-ix-redline: true">3,183,807</span></td><td style="padding-bottom: 2.5pt; text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> </table> 4209784 392171 11412 238623 -643244 229285 -1077952 -60459 3299621 115814 3183807 <p id="xdx_894_eus-gaap--ScheduleOfChangesInFairValueOfPlanAssetsTableTextBlock_zp2o57sAPf36" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0.5in; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">For the period from January 1, 2022 through December 31, 2022, the change in fair value of the Pension Plan assets were as follows:</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> <span id="xdx_8B8_zGjc0dZcYLn1" style="display: none">Schedule of Change in Fair Value of the Pension Plan Assets</span></span></span></p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td><span style="-sec-ix-redline: true"> </span></td><td style="font-weight: bold; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td colspan="2" id="xdx_492_20220101__20221231_zycCFhLkTpz8" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"><span style="-sec-ix-redline: true">2022</span></td><td style="padding-bottom: 1.5pt; font-weight: bold"><span style="-sec-ix-redline: true"> </span></td></tr> <tr id="xdx_408_eus-gaap--DefinedBenefitPlanFairValueOfPlanAssets_iS_zdKceVwYHAWi" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 80%"><span style="-sec-ix-redline: true">Fair value of plan assets, beginning of period</span></td><td style="width: 2%"><span style="-sec-ix-redline: true"> </span></td> <td style="width: 1%; text-align: left"><span style="-sec-ix-redline: true">$</span></td><td style="width: 16%; text-align: right"><span style="-sec-ix-redline: true">3,878,058</span></td><td style="width: 1%; text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> <tr id="xdx_406_eus-gaap--DefinedBenefitPlanExpectedReturnOnPlanAssets_zoKdPkl50bWl" style="vertical-align: bottom; background-color: White"> <td style="padding-left: 10pt; text-align: left"><span style="-sec-ix-redline: true">Expected return on plan assets</span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true">102,712</span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> <tr id="xdx_406_eus-gaap--DefinedBenefitPlanFairValueOfPlanAssetsPeriodIncreaseDecrease_zWW2YzL31GEe" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-left: 10pt; text-align: left"><span style="-sec-ix-redline: true">Gain / (losses) on plan assets</span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true">(460,646</span></td><td style="text-align: left"><span style="-sec-ix-redline: true">)</span></td></tr> <tr id="xdx_409_eus-gaap--DefinedBenefitPlanContributionsByEmployer_z8ohB9ICwYZ5" style="vertical-align: bottom; background-color: White"> <td style="padding-left: 10pt; text-align: left"><span style="-sec-ix-redline: true">Employer contributions</span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true">357,934</span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> <tr id="xdx_409_eus-gaap--DefinedBenefitPlanPlanAssetsContributionsByPlanParticipant_zXGepWxVSFPd" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-left: 10pt; text-align: left"><span style="-sec-ix-redline: true">Plan participant contributions</span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true">238,623</span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> <tr id="xdx_40B_eus-gaap--DefinedBenefitPlanPlanAssetsBenefitsPaid_zBrhMyMmoU4l" style="vertical-align: bottom; background-color: White"> <td style="padding-left: 10pt; text-align: left"><span style="-sec-ix-redline: true">Benefits paid through plan assets</span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true">229,285</span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> <tr id="xdx_401_eus-gaap--DefinedBenefitPlanSettlementsPlanAssets_iN_di_zWLYAsrPzyHf" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-left: 10pt"><span style="-sec-ix-redline: true">Settlements</span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true">(1,002,215</span></td><td style="text-align: left"><span style="-sec-ix-redline: true">)</span></td></tr> <tr id="xdx_405_eus-gaap--DefinedBenefitPlanPlanAssetsForeignCurrencyTranslationGainLoss_zdjpzxXKf7Tj" style="vertical-align: bottom; background-color: White"> <td style="padding-left: 10pt; text-align: left; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true">Foreign currency exchange rate changes</span></td><td style="padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 1.5pt solid; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="border-bottom: Black 1.5pt solid; text-align: right"><span style="-sec-ix-redline: true">(47,347</span></td><td style="padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true">)</span></td></tr> <tr id="xdx_40A_eus-gaap--DefinedBenefitPlanFairValueOfPlanAssets_iE_zYZw8xIL0p0b" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-bottom: 2.5pt"><span style="-sec-ix-redline: true">Fair value of plan assets, end of period</span></td><td style="padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 2.5pt double; text-align: left"><span style="-sec-ix-redline: true">$</span></td><td style="border-bottom: Black 2.5pt double; text-align: right"><span style="-sec-ix-redline: true">3,296,404</span></td><td style="padding-bottom: 2.5pt; text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> </table> 3878058 102712 -460646 357934 238623 229285 1002215 -47347 3296404 Defined Benefit Plan is to invest in accordance with the following allocation: 27.5% in equities, 35.4% in bonds, 17.3% in real estate, 11.3% in alternative investments and 8.5% in cash and cash equivalents. <p id="xdx_895_eus-gaap--DefinedBenefitPlanPlanAssetsCategoryTableTextBlock_zdI7F3AhRPN3" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0.5in; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The following tables present the fair value of the Defined Benefit Plan assets by major categories and by levels within the fair value hierarchy as of December 31, 2022:</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> <span id="xdx_8B5_zYZd1d2l7duh" style="display: none">Schedule of Defined Benefit Plan Assets by Major Categories</span></span></span></p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td><span style="-sec-ix-redline: true"> </span></td><td style="font-weight: bold; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td colspan="2" id="xdx_49E_20221231__us-gaap--FairValueByFairValueHierarchyLevelAxis__us-gaap--FairValueInputsLevel1Member_zEUR6cpQDq3f" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"><span style="-sec-ix-redline: true">Level 1</span></td><td style="padding-bottom: 1.5pt; font-weight: bold"><span style="-sec-ix-redline: true"> </span></td><td style="font-weight: bold; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td colspan="2" id="xdx_49F_20221231__us-gaap--FairValueByFairValueHierarchyLevelAxis__us-gaap--FairValueInputsLevel2Member_zj79UT7iM7c" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"><span style="-sec-ix-redline: true">Level 2</span></td><td style="padding-bottom: 1.5pt; font-weight: bold"><span style="-sec-ix-redline: true"> </span></td><td style="font-weight: bold; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td colspan="2" id="xdx_495_20221231__us-gaap--FairValueByFairValueHierarchyLevelAxis__us-gaap--FairValueInputsLevel3Member_z1p1pCGFOMff" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"><span style="-sec-ix-redline: true">Level 3</span></td><td style="padding-bottom: 1.5pt; font-weight: bold"><span style="-sec-ix-redline: true"> </span></td><td style="font-weight: bold; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td colspan="2" id="xdx_49C_20221231_zag9m1llTZpk" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"><span style="-sec-ix-redline: true">Total</span></td><td style="padding-bottom: 1.5pt; font-weight: bold"><span style="-sec-ix-redline: true"> </span></td></tr> <tr id="xdx_40B_eus-gaap--CashEquivalentsAtCarryingValue_iI_zyrFzvasLq5h" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 44%; text-align: justify"><span style="-sec-ix-redline: true">Cash and equivalents</span></td><td style="width: 2%"><span style="-sec-ix-redline: true"> </span></td> <td style="width: 1%; text-align: left"><span style="-sec-ix-redline: true">$</span></td><td style="width: 10%; text-align: right"><span style="-sec-ix-redline: true">279,883</span></td><td style="width: 1%; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="width: 2%"><span style="-sec-ix-redline: true"> </span></td> <td style="width: 1%; text-align: left"><span style="-sec-ix-redline: true">$</span></td><td style="width: 10%; text-align: right"><span style="-sec-ix-redline: true"><span style="-sec-ix-hidden: xdx2ixbrl4107">-</span></span></td><td style="width: 1%; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="width: 2%"><span style="-sec-ix-redline: true"> </span></td> <td style="width: 1%; text-align: left"><span style="-sec-ix-redline: true">$</span></td><td style="width: 10%; text-align: right"><span style="-sec-ix-redline: true"><span style="-sec-ix-hidden: xdx2ixbrl4108">-</span></span></td><td style="width: 1%; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="width: 2%"><span style="-sec-ix-redline: true"> </span></td> <td style="width: 1%; text-align: left"><span style="-sec-ix-redline: true">$</span></td><td style="width: 10%; text-align: right"><span style="-sec-ix-redline: true">279,883</span></td><td style="width: 1%; text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> <tr id="xdx_407_eus-gaap--EquitySecuritiesFvNi_iI_zsVpddZTKhR3" style="vertical-align: bottom; background-color: White"> <td style="text-align: justify"><span style="-sec-ix-redline: true">Equity securities</span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true">906,136</span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true"><span style="-sec-ix-hidden: xdx2ixbrl4112">-</span></span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true"><span style="-sec-ix-hidden: xdx2ixbrl4113">-</span></span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true">906,136</span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> <tr id="xdx_40F_eus-gaap--LongTermTransitionBond_iI_zl1PHjSc6W9d" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify"><span style="-sec-ix-redline: true">Bonds</span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true">1,167,789</span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true"><span style="-sec-ix-hidden: xdx2ixbrl4117">-</span></span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true"><span style="-sec-ix-hidden: xdx2ixbrl4118">-</span></span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true">1,167,789</span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> <tr id="xdx_40F_eus-gaap--RealEstateGrossAtCarryingValue_iI_zpRklQ0WWZ8h" style="vertical-align: bottom; background-color: White"> <td style="text-align: justify"><span style="-sec-ix-redline: true">Real estate</span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true"><span style="-sec-ix-hidden: xdx2ixbrl4121">-</span></span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true">570,490</span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true"><span style="-sec-ix-hidden: xdx2ixbrl4123">-</span></span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true">570,490</span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> <tr id="xdx_408_eus-gaap--AlternativeInvestment_iI_zX2YhfIejC35" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true">Alternative investments</span></td><td style="padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 1.5pt solid; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="border-bottom: Black 1.5pt solid; text-align: right"><span style="-sec-ix-redline: true"><span style="-sec-ix-hidden: xdx2ixbrl4126">-</span></span></td><td style="padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 1.5pt solid; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="border-bottom: Black 1.5pt solid; text-align: right"><span style="-sec-ix-redline: true">372,105</span></td><td style="padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 1.5pt solid; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="border-bottom: Black 1.5pt solid; text-align: right"><span style="-sec-ix-redline: true"><span style="-sec-ix-hidden: xdx2ixbrl4128">-</span></span></td><td style="padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 1.5pt solid; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="border-bottom: Black 1.5pt solid; text-align: right"><span style="-sec-ix-redline: true">372,105</span></td><td style="padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> <tr id="xdx_401_eus-gaap--DefinedBenefitPlanFairValueOfPlanAssets_iI_zcELh0boF8r4" style="vertical-align: bottom; background-color: White"> <td style="text-align: justify; padding-bottom: 2.5pt"><span style="-sec-ix-redline: true">Total fair value of plan assets</span></td><td style="padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 2.5pt double; text-align: left"><span style="-sec-ix-redline: true">$</span></td><td style="border-bottom: Black 2.5pt double; text-align: right"><span style="-sec-ix-redline: true">2,353,808</span></td><td style="padding-bottom: 2.5pt; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 2.5pt double; text-align: left"><span style="-sec-ix-redline: true">$</span></td><td style="border-bottom: Black 2.5pt double; text-align: right"><span style="-sec-ix-redline: true">942,596</span></td><td style="padding-bottom: 2.5pt; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 2.5pt double; text-align: left"><span style="-sec-ix-redline: true">$</span></td><td style="border-bottom: Black 2.5pt double; text-align: right"><span style="-sec-ix-redline: true"><span style="-sec-ix-hidden: xdx2ixbrl4133">-</span></span></td><td style="padding-bottom: 2.5pt; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 2.5pt double; text-align: left"><span style="-sec-ix-redline: true">$</span></td><td style="border-bottom: Black 2.5pt double; text-align: right"><span style="-sec-ix-redline: true">3,296,404</span></td><td style="padding-bottom: 2.5pt; text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> </table> 279883 279883 906136 906136 1167789 1167789 570490 570490 372105 372105 2353808 942596 3296404 <p id="xdx_892_eus-gaap--ScheduleOfBenefitObligationsInExcessOfFairValueOfPlanAssetsTableTextBlock_zDDEKu61rb3f" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0.5in; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The following table shows the unfunded status of the Defined Benefit Plan, defined as plan assets less the projected benefit obligation as of December 31, 2022:</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> <span id="xdx_8BA_zC6O2jc6Caa1" style="display: none">Schedule of Projected Benefit Obligation</span></span></span></p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="display: none; vertical-align: bottom; background-color: rgb(204,238,255)"> <td> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_494_20221231_zqXvhXStHpn6" style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr id="xdx_408_eus-gaap--DefinedBenefitPlanFairValueOfPlanAssets_iI_zBF7opK50yz8" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 80%"><span style="-sec-ix-redline: true">Fair value of plan assets</span></td><td style="width: 2%"><span style="-sec-ix-redline: true"> </span></td> <td style="width: 1%; text-align: left"><span style="-sec-ix-redline: true">$</span></td><td style="width: 16%; text-align: right"><span style="-sec-ix-redline: true">3,296,404</span></td><td style="width: 1%; text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> <tr id="xdx_408_eus-gaap--DefinedBenefitPlanBenefitObligation_iNI_di_zdmSb6J6SbEi" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true">Less: PBO</span></td><td style="padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 1.5pt solid; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="border-bottom: Black 1.5pt solid; text-align: right"><span style="-sec-ix-redline: true">(3,299,621</span></td><td style="padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true">)</span></td></tr> <tr id="xdx_405_eus-gaap--DefinedBenefitPlanFundedStatusOfPlan_iI_zejJihxn8D15" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-bottom: 2.5pt"><span style="-sec-ix-redline: true">Underfunded status, end of period</span></td><td style="font-weight: bold; padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left"><span style="-sec-ix-redline: true">$</span></td><td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right"><span style="-sec-ix-redline: true">(3,217</span></td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left"><span style="-sec-ix-redline: true">)</span></td></tr> </table> 3296404 3299621 -3217 <p id="xdx_898_eus-gaap--ScheduleOfDefinedBenefitPlanAmountsRecognizedInOtherComprehensiveIncomeLossTableTextBlock_zYIH4ly4yq6d" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0.5in; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The Defined Benefit Plan has a PBO in excess of Defined Benefit Plan assets. For the period from January 1, 2022 through December 31, 2022, the amounts recognized in accumulated other comprehensive loss related to the Defined Benefit Plan were as follows:</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> <span id="xdx_8BA_z2CMt6VSbBM6" style="display: none">Schedule of Comprehensive Loss Related to the Defined Benefit Plan</span></span></span></p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td><span style="-sec-ix-redline: true"> </span></td><td style="font-weight: bold; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td colspan="2" id="xdx_498_20221231_zBzRyryxPonb" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"><span style="-sec-ix-redline: true">2022</span></td><td style="padding-bottom: 1.5pt; font-weight: bold"><span style="-sec-ix-redline: true"> </span></td></tr> <tr id="xdx_402_eus-gaap--DefinedBenefitPlanAccumulatedOtherComprehensiveIncomeNetPriorServiceCostCreditAfterTax_iI_z1Qqf3xpdRH7" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 80%; text-align: left"><span style="-sec-ix-redline: true">Net prior service (cost) / credit</span></td><td style="width: 2%"><span style="-sec-ix-redline: true"> </span></td> <td style="width: 1%; text-align: left"><span style="-sec-ix-redline: true">$</span></td><td style="width: 16%; text-align: right"><span style="-sec-ix-redline: true">13,941</span></td><td style="width: 1%; text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> <tr id="xdx_403_eus-gaap--DefinedBenefitPlanAccumulatedOtherComprehensiveIncomeNetGainsLossesAfterTax_iI_zgXrrV86GzS9" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true">Net gain / (loss)</span></td><td style="padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 1.5pt solid; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="border-bottom: Black 1.5pt solid; text-align: right"><span style="-sec-ix-redline: true">121,498</span></td><td style="padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> <tr id="xdx_40D_eus-gaap--AccumulatedOtherComprehensiveIncomeLossDefinedBenefitPensionAndOtherPostretirementPlansNetOfTax_iI_zM9Isa7D19Al" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 2.5pt"><span style="-sec-ix-redline: true">Accumulated other comprehensive income (loss), net of tax</span></td><td style="padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 2.5pt double; text-align: left"><span style="-sec-ix-redline: true">$</span></td><td style="border-bottom: Black 2.5pt double; text-align: right"><span style="-sec-ix-redline: true">135,439</span></td><td style="padding-bottom: 2.5pt; text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> </table> 13941 121498 135439 <p id="xdx_896_eus-gaap--ScheduleOfAssumptionsUsedTableTextBlock_zgu5l4f0U3ne" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0.5in; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The actuarial assumptions for the Defined Benefit Plan were as follows:</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> <span id="xdx_8BA_z98oB0lgo6c1" style="display: none">Schedule of Assumptions</span></span></span></p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td style="font-weight: bold"><span style="-sec-ix-redline: true">Benefit obligations:</span></td><td><span style="-sec-ix-redline: true"> </span></td> <td colspan="2"><span style="-sec-ix-redline: true"> </span></td><td><span style="-sec-ix-redline: true"> </span></td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-left: 10pt; width: 80%; text-align: left"><span style="-sec-ix-redline: true">Discount rate</span></td><td style="width: 2%"><span style="-sec-ix-redline: true"> </span></td> <td style="width: 1%; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td id="xdx_98D_eus-gaap--DefinedBenefitPlanAssumptionsUsedCalculatingBenefitObligationDiscountRate_iI_dp_uPure_c20221231_zba66irfj0Y5" style="width: 16%; text-align: right" title="Discount rate"><span style="-sec-ix-redline: true">2.25</span></td><td style="width: 1%; text-align: left"><span style="-sec-ix-redline: true">%</span></td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-left: 10pt; text-align: left"><span style="-sec-ix-redline: true">Estimated rate of compensation increase</span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td id="xdx_986_eus-gaap--DefinedBenefitPlanAssumptionsUsedCalculatingBenefitObligationRateOfCompensationIncrease_iI_dp_uPure_c20221231_zAv1JuJuWFCf" style="text-align: right" title="Estimated rate of compensation increase"><span style="-sec-ix-redline: true">1.25</span></td><td style="text-align: left"><span style="-sec-ix-redline: true">%</span></td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-weight: bold; text-align: left"><span style="-sec-ix-redline: true">Periodic costs:</span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-left: 10pt; text-align: left"><span style="-sec-ix-redline: true">Discount rate</span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td id="xdx_984_eus-gaap--DefinedBenefitPlanAssumptionsUsedCalculatingNetPeriodicBenefitCostDiscountRate_dp_uPure_c20220101__20221231_zb8EXEP8fCn8" style="text-align: right" title="Periodic costs discount rate"><span style="-sec-ix-redline: true">2.25</span></td><td style="text-align: left"><span style="-sec-ix-redline: true">%</span></td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-left: 10pt; text-align: left"><span style="-sec-ix-redline: true">Estimated rate of compensation increase</span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td id="xdx_989_eus-gaap--DefinedBenefitPlanAssumptionsUsedCalculatingNetPeriodicBenefitCostRateOfCompensationIncrease_dp_uPure_c20220101__20221231_zdTtGNgJ96Ue" style="text-align: right" title="Periodic costs of estimated rate of compensation increase"><span style="-sec-ix-redline: true">1.25</span></td><td style="text-align: left"><span style="-sec-ix-redline: true">%</span></td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-left: 10pt; text-align: left"><span style="-sec-ix-redline: true">Expected average rate of return on plan assets</span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td id="xdx_98D_eus-gaap--DefinedBenefitPlanAssumptionsUsedCalculatingNetPeriodicBenefitCostChangeDueToSubsequentInterimMeasurementWeightedAverageExpectedLongTermRateOfReturnOnPlanAssets_dp_uPure_c20220101__20221231_zHq631Mugev9" style="text-align: right" title="Periodic costs of expected average rate of return on plan assets"><span style="-sec-ix-redline: true">3.85</span></td><td style="text-align: left"><span style="-sec-ix-redline: true">%</span></td></tr> </table> 0.0225 0.0125 0.0225 0.0125 0.0385 <p id="xdx_891_eus-gaap--ScheduleOfExpectedBenefitPaymentsTableTextBlock_zyvmuFgt61Se" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0.5in; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The following table shows expected benefit payments from the Defined Benefit Plan for the next five fiscal years and the aggregate five years thereafter:</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> <span id="xdx_8B2_z0XhDMTzOnx9" style="display: none">Schedule of Expected Benefit Payments</span></span></span></p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td style="border-bottom: Black 1.5pt solid; font-weight: bold"><span style="-sec-ix-redline: true">Year ending December 31:</span></td><td style="font-weight: bold; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td colspan="2" id="xdx_496_20221231_zQDU19XYXEE" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"><span style="-sec-ix-redline: true">Expected Plan Benefit Payments</span></td><td style="padding-bottom: 1.5pt; font-weight: bold"><span style="-sec-ix-redline: true"> </span></td></tr> <tr id="xdx_404_eus-gaap--DefinedBenefitPlanExpectedFutureBenefitPaymentsNextTwelveMonths_iI_maDBPPCzKEk_zLPSJZB4YHg8" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-left: 10pt; width: 80%; text-align: left"><span style="-sec-ix-redline: true">2023</span></td><td style="width: 2%"><span style="-sec-ix-redline: true"> </span></td> <td style="width: 1%; text-align: left"><span style="-sec-ix-redline: true">$</span></td><td style="width: 16%; text-align: right"><span style="-sec-ix-redline: true">407,493</span></td><td style="width: 1%; text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> <tr id="xdx_404_eus-gaap--DefinedBenefitPlanExpectedFutureBenefitPaymentsYearTwo_iI_maDBPPCzKEk_z2E63zbHbjJ4" style="vertical-align: bottom; background-color: White"> <td style="padding-left: 10pt; text-align: left"><span style="-sec-ix-redline: true">2024</span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true">391,408</span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> <tr id="xdx_40E_eus-gaap--DefinedBenefitPlanExpectedFutureBenefitPaymentsYearThree_iI_maDBPPCzKEk_zOpTXwiAepu9" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-left: 10pt; text-align: left"><span style="-sec-ix-redline: true">2025</span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true">372,105</span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> <tr id="xdx_402_eus-gaap--DefinedBenefitPlanExpectedFutureBenefitPaymentsYearFour_iI_maDBPPCzKEk_zAVbi1iyW3Pg" style="vertical-align: bottom; background-color: White"> <td style="padding-left: 10pt; text-align: left"><span style="-sec-ix-redline: true">2026</span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true">351,731</span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> <tr id="xdx_40C_eus-gaap--DefinedBenefitPlanExpectedFutureBenefitPaymentsYearFive_iI_maDBPPCzKEk_zK2fj51cETc8" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-left: 10pt; text-align: left"><span style="-sec-ix-redline: true">2027</span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true">331,356</span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> <tr id="xdx_405_eus-gaap--DefinedBenefitPlanExpectedFutureBenefitPaymentsFiveFiscalYearsThereafter_iI_maDBPPCzKEk_zBW59l8VQOO8" style="vertical-align: bottom; background-color: White"> <td style="padding-left: 10pt; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true">2028-2032</span></td><td style="padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 1.5pt solid; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="border-bottom: Black 1.5pt solid; text-align: right"><span style="-sec-ix-redline: true">1,380,114</span></td><td style="padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> <tr id="xdx_40B_eus-gaap--DefinedBenefitPensionPlanCurrentAndNoncurrentLiabilities_iTI_mtDBPPCzKEk_zmEJLQekA5zi" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 2.5pt"><span style="-sec-ix-redline: true">Total expected benefit payments by the plan</span></td><td style="padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 2.5pt double; text-align: left"><span style="-sec-ix-redline: true">$</span></td><td style="border-bottom: Black 2.5pt double; text-align: right"><span style="-sec-ix-redline: true">3,234,208</span></td><td style="padding-bottom: 2.5pt; text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> </table> 407493 391408 372105 351731 331356 1380114 3234208 149543 11127 <p id="xdx_801_eus-gaap--ProductWarrantyDisclosureTextBlock_zeQibQwd1dpd" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Note 12 – <span id="xdx_82B_zoOeSKH9S7Lf">Warrants</span></b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i>Warrants Issued</i></b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0.5in; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">On December 6, 2022, the Company entered into a purchase agreement, described above in Note 9, pursuant to which the Company agreed to issue to the Investor in a registered direct offering a warrant to purchase up to <span id="xdx_90A_eus-gaap--ClassOfWarrantOrRightNumberOfSecuritiesCalledByWarrantsOrRights_iI_c20221206__us-gaap--StatementEquityComponentsAxis__us-gaap--CommonStockMember__us-gaap--TypeOfArrangementAxis__custom--SecuritiesPurchaseAgreementMember_z8d74gtCfn7i" title="Common stock purchase of warrant">5,000,000</span> shares of Common Stock at an exercise price of $<span id="xdx_90E_eus-gaap--ClassOfWarrantOrRightExercisePriceOfWarrantsOrRights1_iI_c20221206__us-gaap--StatementEquityComponentsAxis__us-gaap--CommonStockMember__us-gaap--TypeOfArrangementAxis__custom--SecuritiesPurchaseAgreementMember_zVpwqbQsVPjj" title="Exercise price">0.44</span> per share, subject to standard anti-dilution adjustments. The Warrant is not exercisable for the first six months after issuance and has a five-year term from the initial exercise date of June 6, 2023.</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0.5in; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">In connection with the sales of Series F Preferred Stock (see Note 10), the Company issued a warrant to the investor to purchase <span id="xdx_902_eus-gaap--ClassOfWarrantOrRightNumberOfSecuritiesCalledByWarrantsOrRights_iI_c20220626__us-gaap--StatementEquityComponentsAxis__us-gaap--CommonStockMember__us-gaap--TypeOfArrangementAxis__custom--SecuritiesPurchaseAgreementMember_zc6Oge7wIJR2" title="Common stock purchase ofwarrant">16,129,032</span> shares of Common Stock, par value $<span id="xdx_900_eus-gaap--CommonStockParOrStatedValuePerShare_iI_c20220626__us-gaap--StatementEquityComponentsAxis__us-gaap--CommonStockMember__us-gaap--TypeOfArrangementAxis__custom--SecuritiesPurchaseAgreementMember_zK3vAPr28Da8" title="Common stock par value">0.001</span> per share, Series F Warrants with an initial exercise price equal to $<span id="xdx_90A_eus-gaap--ClassOfWarrantOrRightExercisePriceOfWarrantsOrRights1_iI_c20220626__us-gaap--ClassOfWarrantOrRightAxis__custom--SeriesFWarrantsMember__us-gaap--TypeOfArrangementAxis__custom--SecuritiesPurchaseAgreementMember_zootfooczIp8" title="Exercise price">0.96</span>, subject to adjustment, per share of Common Stock. The Series F Warrants are not exercisable for the first six months after its issuance and have a three-year term from its initial exercise date of December 30, 2022. Upon the issuance of the <span id="xdx_907_eus-gaap--StockIssuedDuringPeriodSharesNewIssues_c20220626__20220626__us-gaap--StatementEquityComponentsAxis__custom--CommonStockWarrantMember_zUlHIvDFOCXg" title="Common stock, shares, issued">5,000,000</span> shares of Common Stock warrants at $<span id="xdx_901_eus-gaap--SharePrice_iI_c20220626__us-gaap--StatementEquityComponentsAxis__custom--CommonStockWarrantMember_zcEvvQsxq8He" title="Share price">0.44</span> per share, above, the Series F Warrant exercise price was reduced to $<span id="xdx_904_eus-gaap--WarrantExercisePriceDecrease_c20220626__20220626__us-gaap--ClassOfWarrantOrRightAxis__custom--SeriesFWarrantsMember_zdBENuhaYpke" title="Warrant price">0.44</span> (see Note 10 for further disclosures).</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0.5in; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Upon exercise of the Series F Warrants in full by the investor, the Company would receive additional gross proceeds of approximately $<span id="xdx_908_eus-gaap--ProceedsFromWarrantExercises_c20220101__20221231__us-gaap--ClassOfWarrantOrRightAxis__custom--SeriesFWarrantsMember_zV0sd8GyDkr8" title="Addiitonal gross proceeds">7,100,000</span>.</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i>Warrant Conversions</i></b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0.5in; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">On February 8, 2021, the Company received $<span id="xdx_907_eus-gaap--ProceedsFromWarrantExercises_c20210208__20210208__us-gaap--TypeOfArrangementAxis__custom--SecuritiesPurchaseAgreementMember__us-gaap--StatementEquityComponentsAxis__us-gaap--WarrantMember_zwmSls7aRc6b" title="Addiitonal gross proceeds">8,305,368</span> in additional gross proceeds associated with the exercise of <span id="xdx_906_eus-gaap--ClassOfWarrantOrRightNumberOfSecuritiesCalledByWarrantsOrRights_iI_c20210208__us-gaap--StatementEquityComponentsAxis__us-gaap--WarrantMember__us-gaap--TypeOfArrangementAxis__custom--SecuritiesPurchaseAgreementMember_z8vhPIyAzipd" title="Common stock purchase of warrant">2,516,778</span> of warrants issued at a price of $<span id="xdx_90B_eus-gaap--SharePrice_iI_c20210208__us-gaap--StatementEquityComponentsAxis__us-gaap--WarrantMember__us-gaap--TypeOfArrangementAxis__custom--SecuritiesPurchaseAgreementMember_zveT7ePnqkwc" title="Share price">3.30</span> in connection with a securities purchase agreement dated August 4, 2020.</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0.5in; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">As of December 31, 2021, there were no warrants outstanding. As of December 31, 2022, the intrinsic value of the warrants was nil.</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p id="xdx_894_eus-gaap--ScheduleOfWeightedAverageNumberOfSharesTableTextBlock_zFhaWW1eA9Y6" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0.5in; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">A summary of activity related to warrants for the periods presented is as follows:</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span><span id="xdx_8B9_zmD1Tkwg10dd" style="display: none">Schedule of Summary of Activity Related to Warrants</span></span></span></p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td><span style="-sec-ix-redline: true"> </span></td><td style="font-weight: bold; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"><span style="-sec-ix-redline: true">Shares</span></td><td style="padding-bottom: 1.5pt; font-weight: bold"><span style="-sec-ix-redline: true"> </span></td><td style="font-weight: bold; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"><span style="-sec-ix-redline: true">Weighted Average Exercise Price</span></td><td style="padding-bottom: 1.5pt; font-weight: bold"><span style="-sec-ix-redline: true"> </span></td><td style="font-weight: bold; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"><span style="-sec-ix-redline: true">Weighted Average Remaining Contractual Term</span></td><td style="padding-bottom: 1.5pt; font-weight: bold"><span style="-sec-ix-redline: true"> </span></td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 52%"><span style="-sec-ix-redline: true">Outstanding as of December 31, 2020</span></td><td style="width: 2%"><span style="-sec-ix-redline: true"> </span></td> <td style="width: 1%; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td id="xdx_98C_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardNonOptionEquityInstrumentsOutstandingNumber_iS_c20210101__20211231__us-gaap--StatementEquityComponentsAxis__us-gaap--WarrantMember_zgQYTNgrZvO8" style="width: 12%; text-align: right" title="Warrants Outstanding, Beginning Balance"><span style="-sec-ix-redline: true">2,516,778</span></td><td style="width: 1%; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="width: 2%"><span style="-sec-ix-redline: true"> </span></td> <td style="width: 1%; text-align: left"><span style="-sec-ix-redline: true">$</span></td><td id="xdx_981_ecustom--ShareBasedCompensationArrangementByShareBasedPaymentAwardNonOptionsOutstandingWeightedAverageExercisePrice_iS_c20210101__20211231__us-gaap--StatementEquityComponentsAxis__us-gaap--WarrantMember_zVJkEUZffgqb" style="width: 12%; text-align: right" title="Weighted Average Exercise Price Outstanding, Beginning balance"><span style="-sec-ix-redline: true">3.30</span></td><td style="width: 1%; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="width: 2%"><span style="-sec-ix-redline: true"> </span></td> <td style="width: 1%; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="width: 12%; text-align: right"><span style="-sec-ix-redline: true"><span id="xdx_90B_ecustom--SharebasedCompensationArrangementBySharebasedPaymentAwardNonOptionsOutstandingWeightedAverageRemainingContractualTerm_dtY_c20200101__20201231__us-gaap--StatementEquityComponentsAxis__us-gaap--WarrantMember_zUABbI0qdS6g" title="Weighted-Average Remaining Contractual Term Outstanding">0.83</span></span></td><td style="width: 1%; text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-left: 10pt"><span style="-sec-ix-redline: true">Issued</span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td id="xdx_987_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardNonOptionEquityInstrumentsGranted_c20210101__20211231__us-gaap--StatementEquityComponentsAxis__us-gaap--WarrantMember_z1nCCwnVhar8" style="text-align: right" title="Warrants Issued"><span style="-sec-ix-redline: true"><span style="-sec-ix-hidden: xdx2ixbrl4218">—</span></span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td id="xdx_989_ecustom--ShareBasedCompensationArrangementsByShareBasedPaymentAwardNonOptionsGrantsInPeriodWeightedAverageExercisePrice_c20210101__20211231__us-gaap--StatementEquityComponentsAxis__us-gaap--WarrantMember_z9HlmE0Y4gL4" style="text-align: right" title="Weighted Average Exercise Price, Warrants Issued"><span style="-sec-ix-redline: true"><span style="-sec-ix-hidden: xdx2ixbrl4220">—</span></span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true">—</span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-left: 10pt; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true">Exercised</span></td><td style="padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 1.5pt solid; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td id="xdx_984_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardNonOptionEquityInstrumentsExercised_iN_di_c20210101__20211231__us-gaap--StatementEquityComponentsAxis__us-gaap--WarrantMember_zjPLQ1wwvzWf" style="border-bottom: Black 1.5pt solid; text-align: right" title="Warrants Exercised"><span style="-sec-ix-redline: true">(2,516,778</span></td><td style="padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true">)</span></td><td style="padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 1.5pt solid; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td id="xdx_984_ecustom--ShareBasedCompensationArrangementsByShareBasedPaymentAwardNonOptionsExercisedInPeriodWeightedAverageExercisePrice_c20210101__20211231__us-gaap--StatementEquityComponentsAxis__us-gaap--WarrantMember_zom9AeuEJSbj" style="border-bottom: Black 1.5pt solid; text-align: right" title="Weighted Average Exercise Price, Warrants Issued"><span style="-sec-ix-redline: true">3.30</span></td><td style="padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 1.5pt solid; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="border-bottom: Black 1.5pt solid; text-align: right"><span style="-sec-ix-redline: true">—</span></td><td style="padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> <tr style="vertical-align: bottom; background-color: White"> <td><span style="-sec-ix-redline: true">Outstanding as of December 31, 2021</span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td id="xdx_985_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardNonOptionEquityInstrumentsOutstandingNumber_iS_c20220101__20221231__us-gaap--StatementEquityComponentsAxis__us-gaap--WarrantMember_zlOPCyLehNPl" style="text-align: right" title="Warrants Outstanding, Beginning Balance"><span style="-sec-ix-redline: true"><span style="-sec-ix-hidden: xdx2ixbrl4226">—</span></span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true">$</span></td><td id="xdx_98F_ecustom--ShareBasedCompensationArrangementByShareBasedPaymentAwardNonOptionsOutstandingWeightedAverageExercisePrice_iS_c20220101__20221231__us-gaap--StatementEquityComponentsAxis__us-gaap--WarrantMember_zBvk2ykanENf" style="text-align: right" title="Weighted Average Exercise Price Outstanding, Beginning balance"><span style="-sec-ix-redline: true"><span style="-sec-ix-hidden: xdx2ixbrl4228">—</span></span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true">—</span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-left: 10pt"><span style="-sec-ix-redline: true">Issued</span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td id="xdx_987_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardNonOptionEquityInstrumentsGranted_c20220101__20221231__us-gaap--StatementEquityComponentsAxis__us-gaap--WarrantMember_zKHx1GLa7MMg" style="text-align: right" title="Warrants Issued"><span style="-sec-ix-redline: true">21,129,032</span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true">$</span></td><td id="xdx_982_ecustom--ShareBasedCompensationArrangementsByShareBasedPaymentAwardNonOptionsGrantsInPeriodWeightedAverageExercisePrice_c20220101__20221231__us-gaap--StatementEquityComponentsAxis__us-gaap--WarrantMember_fKg_____zBisUOMrzBd5" style="text-align: right" title="Weighted Average Exercise Price, Warrants Issued"><span style="-sec-ix-redline: true">0.44</span></td><td style="text-align: left"><span style="-sec-ix-redline: true">*</span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true">-</span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-left: 10pt; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true">Exercised</span></td><td style="padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 1.5pt solid; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td id="xdx_98E_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardNonOptionEquityInstrumentsExercised_iN_di_c20220101__20221231__us-gaap--StatementEquityComponentsAxis__us-gaap--WarrantMember_zb24LY0wPOVi" style="border-bottom: Black 1.5pt solid; text-align: right" title="Warrants Exercised"><span style="-sec-ix-redline: true"><span style="-sec-ix-hidden: xdx2ixbrl4234">—</span></span></td><td style="padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 1.5pt solid; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td id="xdx_982_ecustom--ShareBasedCompensationArrangementsByShareBasedPaymentAwardNonOptionsExercisedInPeriodWeightedAverageExercisePrice_c20220101__20221231__us-gaap--StatementEquityComponentsAxis__us-gaap--WarrantMember_z7uqmfH4EcQ3" style="border-bottom: Black 1.5pt solid; text-align: right" title="Exercise price"><span style="-sec-ix-redline: true"><span style="-sec-ix-hidden: xdx2ixbrl4236">—</span></span></td><td style="padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 1.5pt solid; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="border-bottom: Black 1.5pt solid; text-align: right"><span style="-sec-ix-redline: true">—</span></td><td style="padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-bottom: 2.5pt"><span style="-sec-ix-redline: true">Outstanding as of December 31, 2022</span></td><td style="padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 2.5pt double; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td id="xdx_983_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardNonOptionEquityInstrumentsOutstandingNumber_iE_c20220101__20221231__us-gaap--StatementEquityComponentsAxis__us-gaap--WarrantMember_z1Q6yRIJlNCf" style="border-bottom: Black 2.5pt double; text-align: right" title="Warrants Outstanding, Ending Balance"><span style="-sec-ix-redline: true">21,129,032</span></td><td style="padding-bottom: 2.5pt; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 2.5pt double; text-align: left"><span style="-sec-ix-redline: true">$</span></td><td id="xdx_98C_ecustom--ShareBasedCompensationArrangementByShareBasedPaymentAwardNonOptionsOutstandingWeightedAverageExercisePrice_iE_c20220101__20221231__us-gaap--StatementEquityComponentsAxis__us-gaap--WarrantMember_fKg_____zRtncrxmcGJa" style="border-bottom: Black 2.5pt double; text-align: right" title="Weighted Average Exercise Price Outstanding, Ending balance"><span style="-sec-ix-redline: true">0.44</span></td><td style="padding-bottom: 2.5pt; text-align: left"><span style="-sec-ix-redline: true">*</span></td><td style="padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 2.5pt double; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="border-bottom: Black 2.5pt double; text-align: right"><span style="-sec-ix-redline: true"><span id="xdx_909_ecustom--SharebasedCompensationArrangementBySharebasedPaymentAwardNonOptionsOutstandingWeightedAverageRemainingContractualTerm_dtY_c20220101__20221231__us-gaap--StatementEquityComponentsAxis__us-gaap--WarrantMember_zIj1aXqjzMCi" title="Weighted-Average Remaining Contractual Term Outstanding">3.06</span></span></td><td style="padding-bottom: 2.5pt; text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-bottom: 2.5pt"><span style="-sec-ix-redline: true">Exercisable as of December 31, 2022</span></td><td style="padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 2.5pt double; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td id="xdx_987_ecustom--ShareBasedCompensationArrangementByShareBasedPaymentAwardNonOptionEquityInstrumentsExercisableNumber_iE_c20220101__20221231__us-gaap--StatementEquityComponentsAxis__us-gaap--WarrantMember_zmz6Yp72YAk8" style="border-bottom: Black 2.5pt double; text-align: right" title="Warrants Exercisable at end"><span style="-sec-ix-redline: true"><span style="-sec-ix-hidden: xdx2ixbrl4244">—</span></span></td><td style="padding-bottom: 2.5pt; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 2.5pt double; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td id="xdx_986_ecustom--ShareBasedCompensationArrangementByShareBasedPaymentAwardNonOptionsExercisableWeightedAverageExercisePrice_iE_c20220101__20221231__us-gaap--StatementEquityComponentsAxis__us-gaap--WarrantMember_z4jnZAyymGSl" style="border-bottom: Black 2.5pt double; text-align: right" title="Weighted Average Exercise Price, Warrants Exercise price"><span style="-sec-ix-redline: true"><span style="-sec-ix-hidden: xdx2ixbrl4246">—</span></span></td><td style="padding-bottom: 2.5pt; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 2.5pt double; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="border-bottom: Black 2.5pt double; text-align: right"><span style="-sec-ix-redline: true"><span id="xdx_905_ecustom--SharebasedCompensationArrangementBySharebasedPaymentAwardNonOptionsExercisableWeightedAverageRemainingContractualTerm_dtY0_c20220101__20221231__us-gaap--StatementEquityComponentsAxis__us-gaap--WarrantMember_zWESJJZqtUZ2" title="Weighted-Average Remaining Contractual Term Exercisable"><span style="-sec-ix-hidden: xdx2ixbrl4248">—</span></span></span></td><td style="padding-bottom: 2.5pt; text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> </table> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt; width: 100%"><tr style="vertical-align: top; text-align: justify"> <td style="width: 15pt; text-align: right"><span style="-sec-ix-redline: true"><span id="xdx_F03_zykQ7XGqjAb7" style="font-family: Times New Roman, Times, Serif; font-size: 10pt">*</span></span></td><td style="width: 5pt"></td><td style="text-align: justify"><span style="-sec-ix-redline: true"><span id="xdx_F16_zwcQ7vdxeIK9" style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Reflects the exercise price after the Down Round Trigger event on December 6, 2022 (see Notes 9 and 10).</span></span></td> </tr></table> <p id="xdx_8A0_zg0j4hW2DT0j" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>AGEAGLE AERIAL SYSTEMS INC. AND SUBSIDIARIES </b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>NOTES TO CONSOLIDATED FINANCIAL STATEMENTS</b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>FOR THE YEARS ENDED DECEMBER 31, 2022 AND 2021</b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> 5000000 0.44 16129032 0.001 0.96 5000000 0.44 0.44 7100000 8305368 2516778 3.30 <p id="xdx_894_eus-gaap--ScheduleOfWeightedAverageNumberOfSharesTableTextBlock_zFhaWW1eA9Y6" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0.5in; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">A summary of activity related to warrants for the periods presented is as follows:</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span><span id="xdx_8B9_zmD1Tkwg10dd" style="display: none">Schedule of Summary of Activity Related to Warrants</span></span></span></p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td><span style="-sec-ix-redline: true"> </span></td><td style="font-weight: bold; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"><span style="-sec-ix-redline: true">Shares</span></td><td style="padding-bottom: 1.5pt; font-weight: bold"><span style="-sec-ix-redline: true"> </span></td><td style="font-weight: bold; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"><span style="-sec-ix-redline: true">Weighted Average Exercise Price</span></td><td style="padding-bottom: 1.5pt; font-weight: bold"><span style="-sec-ix-redline: true"> </span></td><td style="font-weight: bold; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"><span style="-sec-ix-redline: true">Weighted Average Remaining Contractual Term</span></td><td style="padding-bottom: 1.5pt; font-weight: bold"><span style="-sec-ix-redline: true"> </span></td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 52%"><span style="-sec-ix-redline: true">Outstanding as of December 31, 2020</span></td><td style="width: 2%"><span style="-sec-ix-redline: true"> </span></td> <td style="width: 1%; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td id="xdx_98C_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardNonOptionEquityInstrumentsOutstandingNumber_iS_c20210101__20211231__us-gaap--StatementEquityComponentsAxis__us-gaap--WarrantMember_zgQYTNgrZvO8" style="width: 12%; text-align: right" title="Warrants Outstanding, Beginning Balance"><span style="-sec-ix-redline: true">2,516,778</span></td><td style="width: 1%; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="width: 2%"><span style="-sec-ix-redline: true"> </span></td> <td style="width: 1%; text-align: left"><span style="-sec-ix-redline: true">$</span></td><td id="xdx_981_ecustom--ShareBasedCompensationArrangementByShareBasedPaymentAwardNonOptionsOutstandingWeightedAverageExercisePrice_iS_c20210101__20211231__us-gaap--StatementEquityComponentsAxis__us-gaap--WarrantMember_zVJkEUZffgqb" style="width: 12%; text-align: right" title="Weighted Average Exercise Price Outstanding, Beginning balance"><span style="-sec-ix-redline: true">3.30</span></td><td style="width: 1%; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="width: 2%"><span style="-sec-ix-redline: true"> </span></td> <td style="width: 1%; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="width: 12%; text-align: right"><span style="-sec-ix-redline: true"><span id="xdx_90B_ecustom--SharebasedCompensationArrangementBySharebasedPaymentAwardNonOptionsOutstandingWeightedAverageRemainingContractualTerm_dtY_c20200101__20201231__us-gaap--StatementEquityComponentsAxis__us-gaap--WarrantMember_zUABbI0qdS6g" title="Weighted-Average Remaining Contractual Term Outstanding">0.83</span></span></td><td style="width: 1%; text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-left: 10pt"><span style="-sec-ix-redline: true">Issued</span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td id="xdx_987_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardNonOptionEquityInstrumentsGranted_c20210101__20211231__us-gaap--StatementEquityComponentsAxis__us-gaap--WarrantMember_z1nCCwnVhar8" style="text-align: right" title="Warrants Issued"><span style="-sec-ix-redline: true"><span style="-sec-ix-hidden: xdx2ixbrl4218">—</span></span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td id="xdx_989_ecustom--ShareBasedCompensationArrangementsByShareBasedPaymentAwardNonOptionsGrantsInPeriodWeightedAverageExercisePrice_c20210101__20211231__us-gaap--StatementEquityComponentsAxis__us-gaap--WarrantMember_z9HlmE0Y4gL4" style="text-align: right" title="Weighted Average Exercise Price, Warrants Issued"><span style="-sec-ix-redline: true"><span style="-sec-ix-hidden: xdx2ixbrl4220">—</span></span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true">—</span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-left: 10pt; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true">Exercised</span></td><td style="padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 1.5pt solid; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td id="xdx_984_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardNonOptionEquityInstrumentsExercised_iN_di_c20210101__20211231__us-gaap--StatementEquityComponentsAxis__us-gaap--WarrantMember_zjPLQ1wwvzWf" style="border-bottom: Black 1.5pt solid; text-align: right" title="Warrants Exercised"><span style="-sec-ix-redline: true">(2,516,778</span></td><td style="padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true">)</span></td><td style="padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 1.5pt solid; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td id="xdx_984_ecustom--ShareBasedCompensationArrangementsByShareBasedPaymentAwardNonOptionsExercisedInPeriodWeightedAverageExercisePrice_c20210101__20211231__us-gaap--StatementEquityComponentsAxis__us-gaap--WarrantMember_zom9AeuEJSbj" style="border-bottom: Black 1.5pt solid; text-align: right" title="Weighted Average Exercise Price, Warrants Issued"><span style="-sec-ix-redline: true">3.30</span></td><td style="padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 1.5pt solid; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="border-bottom: Black 1.5pt solid; text-align: right"><span style="-sec-ix-redline: true">—</span></td><td style="padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> <tr style="vertical-align: bottom; background-color: White"> <td><span style="-sec-ix-redline: true">Outstanding as of December 31, 2021</span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td id="xdx_985_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardNonOptionEquityInstrumentsOutstandingNumber_iS_c20220101__20221231__us-gaap--StatementEquityComponentsAxis__us-gaap--WarrantMember_zlOPCyLehNPl" style="text-align: right" title="Warrants Outstanding, Beginning Balance"><span style="-sec-ix-redline: true"><span style="-sec-ix-hidden: xdx2ixbrl4226">—</span></span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true">$</span></td><td id="xdx_98F_ecustom--ShareBasedCompensationArrangementByShareBasedPaymentAwardNonOptionsOutstandingWeightedAverageExercisePrice_iS_c20220101__20221231__us-gaap--StatementEquityComponentsAxis__us-gaap--WarrantMember_zBvk2ykanENf" style="text-align: right" title="Weighted Average Exercise Price Outstanding, Beginning balance"><span style="-sec-ix-redline: true"><span style="-sec-ix-hidden: xdx2ixbrl4228">—</span></span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true">—</span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-left: 10pt"><span style="-sec-ix-redline: true">Issued</span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td id="xdx_987_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardNonOptionEquityInstrumentsGranted_c20220101__20221231__us-gaap--StatementEquityComponentsAxis__us-gaap--WarrantMember_zKHx1GLa7MMg" style="text-align: right" title="Warrants Issued"><span style="-sec-ix-redline: true">21,129,032</span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true">$</span></td><td id="xdx_982_ecustom--ShareBasedCompensationArrangementsByShareBasedPaymentAwardNonOptionsGrantsInPeriodWeightedAverageExercisePrice_c20220101__20221231__us-gaap--StatementEquityComponentsAxis__us-gaap--WarrantMember_fKg_____zBisUOMrzBd5" style="text-align: right" title="Weighted Average Exercise Price, Warrants Issued"><span style="-sec-ix-redline: true">0.44</span></td><td style="text-align: left"><span style="-sec-ix-redline: true">*</span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true">-</span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-left: 10pt; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true">Exercised</span></td><td style="padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 1.5pt solid; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td id="xdx_98E_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardNonOptionEquityInstrumentsExercised_iN_di_c20220101__20221231__us-gaap--StatementEquityComponentsAxis__us-gaap--WarrantMember_zb24LY0wPOVi" style="border-bottom: Black 1.5pt solid; text-align: right" title="Warrants Exercised"><span style="-sec-ix-redline: true"><span style="-sec-ix-hidden: xdx2ixbrl4234">—</span></span></td><td style="padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 1.5pt solid; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td id="xdx_982_ecustom--ShareBasedCompensationArrangementsByShareBasedPaymentAwardNonOptionsExercisedInPeriodWeightedAverageExercisePrice_c20220101__20221231__us-gaap--StatementEquityComponentsAxis__us-gaap--WarrantMember_z7uqmfH4EcQ3" style="border-bottom: Black 1.5pt solid; text-align: right" title="Exercise price"><span style="-sec-ix-redline: true"><span style="-sec-ix-hidden: xdx2ixbrl4236">—</span></span></td><td style="padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 1.5pt solid; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="border-bottom: Black 1.5pt solid; text-align: right"><span style="-sec-ix-redline: true">—</span></td><td style="padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-bottom: 2.5pt"><span style="-sec-ix-redline: true">Outstanding as of December 31, 2022</span></td><td style="padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 2.5pt double; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td id="xdx_983_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardNonOptionEquityInstrumentsOutstandingNumber_iE_c20220101__20221231__us-gaap--StatementEquityComponentsAxis__us-gaap--WarrantMember_z1Q6yRIJlNCf" style="border-bottom: Black 2.5pt double; text-align: right" title="Warrants Outstanding, Ending Balance"><span style="-sec-ix-redline: true">21,129,032</span></td><td style="padding-bottom: 2.5pt; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 2.5pt double; text-align: left"><span style="-sec-ix-redline: true">$</span></td><td id="xdx_98C_ecustom--ShareBasedCompensationArrangementByShareBasedPaymentAwardNonOptionsOutstandingWeightedAverageExercisePrice_iE_c20220101__20221231__us-gaap--StatementEquityComponentsAxis__us-gaap--WarrantMember_fKg_____zRtncrxmcGJa" style="border-bottom: Black 2.5pt double; text-align: right" title="Weighted Average Exercise Price Outstanding, Ending balance"><span style="-sec-ix-redline: true">0.44</span></td><td style="padding-bottom: 2.5pt; text-align: left"><span style="-sec-ix-redline: true">*</span></td><td style="padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 2.5pt double; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="border-bottom: Black 2.5pt double; text-align: right"><span style="-sec-ix-redline: true"><span id="xdx_909_ecustom--SharebasedCompensationArrangementBySharebasedPaymentAwardNonOptionsOutstandingWeightedAverageRemainingContractualTerm_dtY_c20220101__20221231__us-gaap--StatementEquityComponentsAxis__us-gaap--WarrantMember_zIj1aXqjzMCi" title="Weighted-Average Remaining Contractual Term Outstanding">3.06</span></span></td><td style="padding-bottom: 2.5pt; text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-bottom: 2.5pt"><span style="-sec-ix-redline: true">Exercisable as of December 31, 2022</span></td><td style="padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 2.5pt double; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td id="xdx_987_ecustom--ShareBasedCompensationArrangementByShareBasedPaymentAwardNonOptionEquityInstrumentsExercisableNumber_iE_c20220101__20221231__us-gaap--StatementEquityComponentsAxis__us-gaap--WarrantMember_zmz6Yp72YAk8" style="border-bottom: Black 2.5pt double; text-align: right" title="Warrants Exercisable at end"><span style="-sec-ix-redline: true"><span style="-sec-ix-hidden: xdx2ixbrl4244">—</span></span></td><td style="padding-bottom: 2.5pt; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 2.5pt double; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td id="xdx_986_ecustom--ShareBasedCompensationArrangementByShareBasedPaymentAwardNonOptionsExercisableWeightedAverageExercisePrice_iE_c20220101__20221231__us-gaap--StatementEquityComponentsAxis__us-gaap--WarrantMember_z4jnZAyymGSl" style="border-bottom: Black 2.5pt double; text-align: right" title="Weighted Average Exercise Price, Warrants Exercise price"><span style="-sec-ix-redline: true"><span style="-sec-ix-hidden: xdx2ixbrl4246">—</span></span></td><td style="padding-bottom: 2.5pt; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 2.5pt double; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="border-bottom: Black 2.5pt double; text-align: right"><span style="-sec-ix-redline: true"><span id="xdx_905_ecustom--SharebasedCompensationArrangementBySharebasedPaymentAwardNonOptionsExercisableWeightedAverageRemainingContractualTerm_dtY0_c20220101__20221231__us-gaap--StatementEquityComponentsAxis__us-gaap--WarrantMember_zWESJJZqtUZ2" title="Weighted-Average Remaining Contractual Term Exercisable"><span style="-sec-ix-hidden: xdx2ixbrl4248">—</span></span></span></td><td style="padding-bottom: 2.5pt; text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> </table> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt; width: 100%"><tr style="vertical-align: top; text-align: justify"> <td style="width: 15pt; text-align: right"><span style="-sec-ix-redline: true"><span id="xdx_F03_zykQ7XGqjAb7" style="font-family: Times New Roman, Times, Serif; font-size: 10pt">*</span></span></td><td style="width: 5pt"></td><td style="text-align: justify"><span style="-sec-ix-redline: true"><span id="xdx_F16_zwcQ7vdxeIK9" style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Reflects the exercise price after the Down Round Trigger event on December 6, 2022 (see Notes 9 and 10).</span></span></td> </tr></table> 2516778 3.30 P0Y9M29D 2516778 3.30 21129032 0.44 21129032 0.44 P3Y21D <p id="xdx_80E_eus-gaap--OperatingLeasesOfLessorDisclosureTextBlock_zGN1Ki5hIzEb" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Note 13 – <span id="xdx_82E_zaxg7n99Xbag">Leases</span></b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i>Operating Leases</i></b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0.5in; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The Company determines if an arrangement is or contains a lease at contract inception and recognizes a right-of-use asset and a lease liability at the lease commencement date. Leases with an initial term of twelve months or less, but greater than one month, are not recorded on the balance sheet for select asset classes. The lease liability is measured at the present value of future lease payments as of the lease commencement date, or the opening balance sheet date for leases existing at adoption of ASC 842. The right-of-use asset recognized is based on the lease liability adjusted for prepaid and deferred rent and unamortized lease incentives.</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0.5in; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Right-of-use assets and lease liabilities are recognized based on the present value of the future minimum lease payments over the lease terms at the commencement dates. The Company uses its incremental borrowing rates as the discount rate for its leases, which is equal to the rate of interest the Company would have to pay on a collateralized basis to borrow an amount equal to the lease payments under similar terms. The incremental borrowing rate for all existing leases as of the opening balance sheet date was based upon the remaining terms of the leases; the incremental borrowing rate for all new or amended leases is based upon the lease terms. The lease terms for all the Company’s leases include the contractually obligated period of the leases, plus any additional periods covered by options to extend the leases that the Company is reasonably certain to exercise.</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0.5in; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Certain adjustments to the right-of-use asset may be required for items such as initial direct costs paid or incentives received. The components of a lease are split into three categories: lease components, non-lease components and non-components; however, the Company has elected to combine lease and non-lease components into a single component. Operating lease expense is recognized on a straight-line basis over the lease term and is included in general and administrative expense on the consolidated statement of operations. Variable lease payments are expensed as incurred.</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0.5in; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The Company has an operating lease in Wichita, Kansas, which serves as its corporate offices. The lease commencement date was November 1, 2020, and will expire on October 31, 2023, unless sooner terminated or extended. The estimated cash rent payments due through the expiration of this operating lease total $<span id="xdx_90E_eus-gaap--OperatingLeasesRentExpenseNet_c20220101__20221231__us-gaap--BusinessAcquisitionAxis__custom--MeasureAcquisitionMember_zh6c0pXcS1u4" title="Operating lease rent expenses">82,500</span>.</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0.5in; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">As a result of the MicaSense Acquisition, the Company assumed an operating lease for office space in Seattle, Washington that expires in January 2026 with a <span id="xdx_90F_ecustom--OperatingLeasesPercentage_iI_dp_uPure_c20221231__us-gaap--BusinessAcquisitionAxis__custom--MicaSenseAcquisitionMember_zZevD2DSJBR7" title="Operating lease percentage">3</span>% per year increase, and two months of abated rent for December 2020 and January 2021. The estimated cash rent payments due through the expiration of this operating lease total approximately $<span id="xdx_904_eus-gaap--OperatingLeasesRentExpenseNet_c20220101__20221231__us-gaap--BusinessAcquisitionAxis__custom--MicaSenseAcquisitionMember_zftxgP1f9ksh" title="Operating lease rent expenses">682,000</span>.</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 45px; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">As a result of the Measure Acquisition, the Company assumed the operating leases for office space in Washington, D.C. and Austin, Texas. The prior operating lease in Washington, D.C. expired in September 2021 and the operating lease in Austin, Texas expired in December 2021. The Company signed a new operating lease agreement for its office space in Washington, D.C. in July 2021, beginning on October 1, 2021 and expired in December 2022 and was not renewed. Additionally, the Company signed a new operating lease agreement for its office space in Austin, Texas commencing in August 2021 and expired in December 2022 and was not renewed. No cash rent payments are due through the expiration of these two operating leases.</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 45px; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>AGEAGLE AERIAL SYSTEMS INC. AND SUBSIDIARIES </b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>NOTES TO CONSOLIDATED FINANCIAL STATEMENTS</b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>FOR THE YEARS ENDED DECEMBER 31, 2022 AND 2021</b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Note 13 – Leases</b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0.5in; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">As a result of the senseFly Acquisition, the Company assumed the operating leases for office spaces in Raleigh, North Carolina and Lausanne, Switzerland. The operating lease in Raleigh will expire in June 2023 and while the operating lease in Lausanne was set to expire in April 2023; the Company was required to notify the landlord of its intention to not renew the lease in March 2022. The Company neglected to provide such notification; therefore, a five year renewal option was automatically triggered in March 2022. Therefore, the Lausanne lease is now set to expire in April 2028. The estimated cash rent payments due through the expiration of these three operating leases total approximately $<span id="xdx_90B_eus-gaap--OperatingLeasesRentExpenseNet_c20220101__20221231__dei--LegalEntityAxis__custom--SenseFlyAcquisitionMember_z5ngVgpC3IAb" title="Operating lease rent expenses">4,384,689</span>.</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p id="xdx_897_ecustom--ScheduleOfCompanyOperatingLeasesTableTextBlock_zK2Q9EMOOaGk" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0.5in; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">As of December 31, 2022 and 2021, balance sheet information related to the Company’s operating leases is as follows:</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span><span id="xdx_8B0_z01rPnAIER63" style="display: none">Schedule of Company's Operating Leases</span></span></span></p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td><span style="-sec-ix-redline: true"> </span></td><td style="padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td><span style="-sec-ix-redline: true"> </span></td><td style="font-weight: bold; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td colspan="6" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"><span style="-sec-ix-redline: true">December 31,</span></td><td style="padding-bottom: 1.5pt; font-weight: bold"><span style="-sec-ix-redline: true"> </span></td></tr> <tr style="vertical-align: bottom"> <td><span style="-sec-ix-redline: true"> </span></td><td style="font-weight: bold; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"><span style="-sec-ix-redline: true">Balance Sheet Location</span></td><td style="font-weight: bold; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"><span style="-sec-ix-redline: true">2022</span></td><td style="padding-bottom: 1.5pt; font-weight: bold"><span style="-sec-ix-redline: true"> </span></td><td style="font-weight: bold; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"><span style="-sec-ix-redline: true">2021</span></td><td style="padding-bottom: 1.5pt; font-weight: bold"><span style="-sec-ix-redline: true"> </span></td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 46%; text-align: left"><span style="-sec-ix-redline: true">Right of use asset</span></td><td style="width: 2%"><span style="-sec-ix-redline: true"> </span></td> <td style="width: 20%; text-align: left"><span style="-sec-ix-redline: true">Right of use asset</span></td><td style="width: 2%"><span style="-sec-ix-redline: true"> </span></td> <td style="width: 1%; text-align: left"><span style="-sec-ix-redline: true">$</span></td><td id="xdx_981_eus-gaap--OperatingLeaseRightOfUseAsset_iI_c20221231_zRfdDKZWh682" style="width: 12%; text-align: right" title="Right of use assets"><span style="-sec-ix-redline: true">3,952,317</span></td><td style="width: 1%; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="width: 2%"><span style="-sec-ix-redline: true"> </span></td> <td style="width: 1%; text-align: left"><span style="-sec-ix-redline: true">$</span></td><td id="xdx_987_eus-gaap--OperatingLeaseRightOfUseAsset_iI_c20211231_zjyRzhyFgsTg" style="width: 12%; text-align: right" title="Right of use assets"><span style="-sec-ix-redline: true">2,019,745</span></td><td style="width: 1%; text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left"><span style="-sec-ix-redline: true">Current portion of operating lease liability</span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true">Current portion of operating lease liabilities</span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true">$</span></td><td style="text-align: right"><span style="-sec-ix-redline: true"><span id="xdx_900_eus-gaap--OperatingLeaseLiabilityCurrent_iI_c20221231_zAXNJOmYLyr8" title="Current portion of lease liabilities">628,113</span></span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true"><span id="xdx_90D_eus-gaap--OperatingLeaseLiabilityCurrent_iI_c20211231_zJj7W0voDRV" title="Current portion of lease liabilities">1,235,977</span></span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left"><span style="-sec-ix-redline: true">Long-term portion of operating lease liability</span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true">Long-term portion of operating lease liabilities</span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true">$</span></td><td style="text-align: right"><span style="-sec-ix-redline: true"><span id="xdx_901_eus-gaap--OperatingLeaseLiabilityNoncurrent_iI_c20221231_zBhNkBWJIbvl" title="Long-term portion lease liabilities">3,161,703</span></span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true">$</span></td><td style="text-align: right"><span style="-sec-ix-redline: true"><span id="xdx_909_eus-gaap--OperatingLeaseLiabilityNoncurrent_iI_c20211231_zT6urdwtYxTj" title="Long-term portion lease liabilities">942,404</span></span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> </table> <p id="xdx_8A6_zXTteb2Ts806" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0.5in; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">For the years ended December 31, 2022 and 2021, operating lease expense payments were $<span id="xdx_908_eus-gaap--OperatingLeaseExpense_c20220101__20221231_zIjiVcSBl7Da" title="Lease">1,287,143</span> and $<span id="xdx_907_eus-gaap--OperatingLeaseExpense_c20210101__20211231_z03oh2wWVtd7" title="Lease">532,892</span>, respectively, and are included in general and administrative expenses in the consolidated statements of operations and comprehensive loss.</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p id="xdx_898_eus-gaap--LesseeOperatingLeaseLiabilityMaturityTableTextBlock_zoc9GogWz8Pi" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0.5in; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">As of December 31, 2022, scheduled future maturities of the Company’s lease liabilities are as follows:</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span><span id="xdx_8BE_zc54OvDQCg79" style="display: none">Schedule of Future Maturities Lease Liabilities</span></span></span></p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td style="font-weight: bold"><span style="-sec-ix-redline: true">Year Ending December 31,</span></td><td><span style="-sec-ix-redline: true"> </span></td> <td colspan="2"><span style="-sec-ix-redline: true"> </span></td><td id="xdx_499_20221231_zncbxiCsdE86"><span style="-sec-ix-redline: true"> </span></td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 80%; text-align: left"><span style="-sec-ix-redline: true">2023</span></td><td style="width: 2%"><span style="-sec-ix-redline: true"> </span></td> <td style="width: 1%; text-align: left"><span style="-sec-ix-redline: true">$</span></td><td style="width: 16%; text-align: right"><span style="-sec-ix-redline: true"><span id="xdx_900_eus-gaap--LesseeOperatingLeaseLiabilityPaymentsDueNextTwelveMonths_iI_c20221231_zIUe7G5lCvci" title="Year One">840,348</span></span></td><td style="width: 1%; text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left"><span style="-sec-ix-redline: true">2024</span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true"><span id="xdx_90F_eus-gaap--LesseeOperatingLeaseLiabilityPaymentsDueYearTwo_iI_c20221231_zceS2vAyCOcf" title="Year Two">945,271</span></span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left"><span style="-sec-ix-redline: true">2025</span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true"><span id="xdx_90A_eus-gaap--LesseeOperatingLeaseLiabilityPaymentsDueYearThree_iI_c20221231_zLPC2kELKSMj" title="Year Three">951,344</span></span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left"><span style="-sec-ix-redline: true">2026</span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true"><span id="xdx_90C_eus-gaap--LesseeOperatingLeaseLiabilityPaymentsDueYearFour_iI_c20221231_zbKpXijCNQfa" title="Year Four">742,855</span></span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left"><span style="-sec-ix-redline: true">2027</span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true"><span id="xdx_90F_eus-gaap--LesseeOperatingLeaseLiabilityPaymentsDueYearFive_iI_c20221231_zhwEFfins9J8" title="Year Five">723,901</span></span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-bottom: 1.5pt"><span style="-sec-ix-redline: true">Thereafter</span></td><td style="padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 1.5pt solid; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="border-bottom: Black 1.5pt solid; text-align: right"><span style="-sec-ix-redline: true"><span id="xdx_900_eus-gaap--LesseeOperatingLeaseLiabilityPaymentsDueAfterYearFive_iI_c20221231_zJiIvoLp8p9h" title="After Year Five">180,970</span></span></td><td style="padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left"><span style="-sec-ix-redline: true">Total future minimum lease payments, undiscounted</span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true"><span id="xdx_90F_eus-gaap--OperatingLeaseLiability_iTI_c20221231_zJaFnaQ6lGXl" title="Total future minimum lease payments, undiscounted">4,384,689</span></span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true">Less: Amount representing interest</span></td><td style="padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 1.5pt solid; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="border-bottom: Black 1.5pt solid; text-align: right"><span style="-sec-ix-redline: true"><span id="xdx_908_eus-gaap--LesseeOperatingLeaseLiabilityUndiscountedExcessAmount_iNI_di_c20221231_zKIGLD4jpCIh" title="Less: Amount representing interest">(594,873</span></span></td><td style="padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true">)</span></td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 2.5pt"><span style="-sec-ix-redline: true">Present value of future minimum lease payments</span></td><td style="padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 2.5pt double; text-align: left"><span style="-sec-ix-redline: true">$</span></td><td style="border-bottom: Black 2.5pt double; text-align: right"><span style="-sec-ix-redline: true"><span id="xdx_906_eus-gaap--LesseeOperatingLeaseLiabilityPaymentsDue_iTI_c20221231_zmKc4ebpsSN2" title="Present value of future minimum lease payments">3,789,816</span></span></td><td style="padding-bottom: 2.5pt; text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 2.5pt"><span style="-sec-ix-redline: true">Present value of future minimum lease payments – current</span></td><td style="padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 2.5pt double; text-align: left"><span style="-sec-ix-redline: true">$</span></td><td style="border-bottom: Black 2.5pt double; text-align: right"><span style="-sec-ix-redline: true"><span id="xdx_906_eus-gaap--OperatingLeaseLiabilityCurrent_iI_c20221231_zzYlIslfA3lk" title="Current portion of lease liabilities">628,113</span></span></td><td style="padding-bottom: 2.5pt; text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 2.5pt"><span style="-sec-ix-redline: true">Present value of future minimum lease payments – long-term</span></td><td style="padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 2.5pt double; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">$</span></span></td><td style="border-bottom: Black 2.5pt double; text-align: right"><span style="-sec-ix-redline: true"><span id="xdx_90A_eus-gaap--OperatingLeaseLiabilityNoncurrent_iI_c20221231_zzCmhl6pZEA4" title="Present value of future minimum lease payments long-term">3,161,703</span></span></td><td style="padding-bottom: 2.5pt; text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> </table> <p id="xdx_8AD_ztCs5wJLFZfj" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>AGEAGLE AERIAL SYSTEMS INC. AND SUBSIDIARIES </b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>NOTES TO CONSOLIDATED FINANCIAL STATEMENTS</b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>FOR THE YEARS ENDED DECEMBER 31, 2022 AND 2021</b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Note 13 – Leases</b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p id="xdx_898_ecustom--ScheduleOfWeightedAverageLeaseTermAndDiscountRateLeasesTableTextBlock_zLTO7kWpGRkg" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0.5in; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">As of December 31, 2022 and 2021, the weighted average lease-term and discount rate of the Company’s leases are as follows:</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> <span id="xdx_8B6_zMWcy66VLRi2" style="display: none">Schedule of Weighted Average Lease-term and Discount Rate Leases</span></span></span></p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td><span style="-sec-ix-redline: true"> </span></td><td style="font-weight: bold; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td colspan="6" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"><span style="-sec-ix-redline: true">Year ended December 31,</span></td><td style="padding-bottom: 1.5pt; font-weight: bold"><span style="-sec-ix-redline: true"> </span></td></tr> <tr style="vertical-align: bottom"> <td style="padding-bottom: 1.5pt; font-weight: bold"><span style="-sec-ix-redline: true"> </span></td><td style="font-weight: bold; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"><span style="-sec-ix-redline: true">2022</span></td><td style="padding-bottom: 1.5pt; font-weight: bold"><span style="-sec-ix-redline: true"> </span></td><td style="font-weight: bold; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"><span style="-sec-ix-redline: true">2021</span></td><td style="padding-bottom: 1.5pt; font-weight: bold"><span style="-sec-ix-redline: true"> </span></td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-weight: bold"><span style="-sec-ix-redline: true">Other Information</span></td><td style="font-weight: bold"><span style="-sec-ix-redline: true"> </span></td> <td colspan="2" style="font-weight: bold; text-align: center"><span style="-sec-ix-redline: true"> </span></td><td style="font-weight: bold"><span style="-sec-ix-redline: true"> </span></td><td style="font-weight: bold"><span style="-sec-ix-redline: true"> </span></td> <td colspan="2" style="font-weight: bold; text-align: center"><span style="-sec-ix-redline: true"> </span></td><td style="font-weight: bold"><span style="-sec-ix-redline: true"> </span></td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="width: 60%; text-align: left"><span style="-sec-ix-redline: true">Weighted-average remaining lease terms (in years)</span></td><td style="width: 2%"><span style="-sec-ix-redline: true"> </span></td> <td style="width: 1%; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="width: 16%; text-align: right"><span style="-sec-ix-redline: true"><span id="xdx_90B_eus-gaap--AcquiredFiniteLivedIntangibleAssetsWeightedAverageUsefulLife_dtY_c20220101__20221231_z1qfG566iKC8" title="Weighted-average remaining lease terms">4.8</span></span></td><td style="width: 1%; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="width: 2%"><span style="-sec-ix-redline: true"> </span></td> <td style="width: 1%; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="width: 16%; text-align: right"><span style="-sec-ix-redline: true"><span id="xdx_90F_eus-gaap--AcquiredFiniteLivedIntangibleAssetsWeightedAverageUsefulLife_dtY_c20210101__20211231_zgCXCOzE5j7b" title="Weighted-average remaining lease terms">2.3</span></span></td><td style="width: 1%; text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left"><span style="-sec-ix-redline: true">Weighted-average discount rate</span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td id="xdx_989_eus-gaap--OperatingLeaseWeightedAverageDiscountRatePercent_iI_dp_uPure_c20221231_zofrVcnSqdkc" style="text-align: right" title="Weighted-average discount rate"><span style="-sec-ix-redline: true">6.0</span></td><td style="text-align: left"><span style="-sec-ix-redline: true">%</span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td id="xdx_985_eus-gaap--OperatingLeaseWeightedAverageDiscountRatePercent_iI_dp_uPure_c20211231_zK49EngkKEWj" style="text-align: right" title="Weighted-average discount rate"><span style="-sec-ix-redline: true">6.0</span></td><td style="text-align: left"><span style="-sec-ix-redline: true">%</span></td></tr> </table> <p id="xdx_8A0_z9UpybKGtHU5" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p id="xdx_892_eus-gaap--ScheduleOfCashFlowSupplementalDisclosuresTableTextBlock_z4b7MToTfmLl" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0.5in; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">For the years ended December 31, 2022 and 2021, supplemental cash flow information related to leases is as follows:</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span><span id="xdx_8BA_zuaj9mV0paV2" style="display: none">Schedule of Cash Flow Supplemental Information</span></span></span></p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="display: none; vertical-align: bottom"> <td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_49A_20220101__20221231_ztgR5d8aexMf" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"> </td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_492_20210101__20211231_zWCCprR5laca" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"> </td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td><span style="-sec-ix-redline: true"> </span></td><td style="font-weight: bold; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td colspan="6" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"><span style="-sec-ix-redline: true">Year ended December 31,</span></td><td style="padding-bottom: 1.5pt; font-weight: bold"><span style="-sec-ix-redline: true"> </span></td></tr> <tr style="vertical-align: bottom"> <td style="padding-bottom: 1.5pt; font-weight: bold"><span style="-sec-ix-redline: true"> </span></td><td style="font-weight: bold; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"><span style="-sec-ix-redline: true">2022</span></td><td style="padding-bottom: 1.5pt; font-weight: bold"><span style="-sec-ix-redline: true"> </span></td><td style="font-weight: bold; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"><span style="-sec-ix-redline: true">2021</span></td><td style="padding-bottom: 1.5pt; font-weight: bold"><span style="-sec-ix-redline: true"> </span></td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-weight: bold"><span style="-sec-ix-redline: true">Other Information</span></td><td style="font-weight: bold"><span style="-sec-ix-redline: true"> </span></td> <td colspan="2" style="font-weight: bold; text-align: center"><span style="-sec-ix-redline: true"> </span></td><td style="font-weight: bold"><span style="-sec-ix-redline: true"> </span></td><td style="font-weight: bold"><span style="-sec-ix-redline: true"> </span></td> <td colspan="2" style="font-weight: bold; text-align: center"><span style="-sec-ix-redline: true"> </span></td><td style="font-weight: bold"><span style="-sec-ix-redline: true"> </span></td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left"><span style="-sec-ix-redline: true">Cash paid for amounts included in the measurement of liabilities:</span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> <tr id="xdx_404_ecustom--CashPaidForAmountsIncludedInMeasurementOfLiabilitiesOperatingCashFlowsForOperatingLeases_zK5RTkwgjkFg" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 60%; text-align: left"><span style="-sec-ix-redline: true">Operating cash flows for operating leases</span></td><td style="width: 2%"><span style="-sec-ix-redline: true"> </span></td> <td style="width: 1%; text-align: left"><span style="-sec-ix-redline: true">$</span></td><td style="width: 16%; text-align: right"><span style="-sec-ix-redline: true">1,614,468</span></td><td style="width: 1%; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="width: 2%"><span style="-sec-ix-redline: true"> </span></td> <td style="width: 1%; text-align: left"><span style="-sec-ix-redline: true">$</span></td><td style="width: 16%; text-align: right"><span style="-sec-ix-redline: true">532,892</span></td><td style="width: 1%; text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left"><span style="-sec-ix-redline: true">Lease liabilities related to the acquisition of right of use assets:</span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> <tr id="xdx_40A_eus-gaap--OperatingLeasePayments_zCUGElhdeSp3" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left"><span style="-sec-ix-redline: true">Operating leases</span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true">$</span></td><td style="text-align: right"><span style="-sec-ix-redline: true"><span style="-sec-ix-hidden: xdx2ixbrl4318">—</span></span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true">$</span></td><td style="text-align: right"><span style="-sec-ix-redline: true">2,196,370</span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> </table> <p id="xdx_8A2_zg8CfoHVZCg8" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> 82500 0.03 682000 4384689 <p id="xdx_897_ecustom--ScheduleOfCompanyOperatingLeasesTableTextBlock_zK2Q9EMOOaGk" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0.5in; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">As of December 31, 2022 and 2021, balance sheet information related to the Company’s operating leases is as follows:</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span><span id="xdx_8B0_z01rPnAIER63" style="display: none">Schedule of Company's Operating Leases</span></span></span></p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td><span style="-sec-ix-redline: true"> </span></td><td style="padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td><span style="-sec-ix-redline: true"> </span></td><td style="font-weight: bold; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td colspan="6" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"><span style="-sec-ix-redline: true">December 31,</span></td><td style="padding-bottom: 1.5pt; font-weight: bold"><span style="-sec-ix-redline: true"> </span></td></tr> <tr style="vertical-align: bottom"> <td><span style="-sec-ix-redline: true"> </span></td><td style="font-weight: bold; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"><span style="-sec-ix-redline: true">Balance Sheet Location</span></td><td style="font-weight: bold; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"><span style="-sec-ix-redline: true">2022</span></td><td style="padding-bottom: 1.5pt; font-weight: bold"><span style="-sec-ix-redline: true"> </span></td><td style="font-weight: bold; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"><span style="-sec-ix-redline: true">2021</span></td><td style="padding-bottom: 1.5pt; font-weight: bold"><span style="-sec-ix-redline: true"> </span></td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 46%; text-align: left"><span style="-sec-ix-redline: true">Right of use asset</span></td><td style="width: 2%"><span style="-sec-ix-redline: true"> </span></td> <td style="width: 20%; text-align: left"><span style="-sec-ix-redline: true">Right of use asset</span></td><td style="width: 2%"><span style="-sec-ix-redline: true"> </span></td> <td style="width: 1%; text-align: left"><span style="-sec-ix-redline: true">$</span></td><td id="xdx_981_eus-gaap--OperatingLeaseRightOfUseAsset_iI_c20221231_zRfdDKZWh682" style="width: 12%; text-align: right" title="Right of use assets"><span style="-sec-ix-redline: true">3,952,317</span></td><td style="width: 1%; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="width: 2%"><span style="-sec-ix-redline: true"> </span></td> <td style="width: 1%; text-align: left"><span style="-sec-ix-redline: true">$</span></td><td id="xdx_987_eus-gaap--OperatingLeaseRightOfUseAsset_iI_c20211231_zjyRzhyFgsTg" style="width: 12%; text-align: right" title="Right of use assets"><span style="-sec-ix-redline: true">2,019,745</span></td><td style="width: 1%; text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left"><span style="-sec-ix-redline: true">Current portion of operating lease liability</span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true">Current portion of operating lease liabilities</span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true">$</span></td><td style="text-align: right"><span style="-sec-ix-redline: true"><span id="xdx_900_eus-gaap--OperatingLeaseLiabilityCurrent_iI_c20221231_zAXNJOmYLyr8" title="Current portion of lease liabilities">628,113</span></span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true"><span id="xdx_90D_eus-gaap--OperatingLeaseLiabilityCurrent_iI_c20211231_zJj7W0voDRV" title="Current portion of lease liabilities">1,235,977</span></span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left"><span style="-sec-ix-redline: true">Long-term portion of operating lease liability</span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true">Long-term portion of operating lease liabilities</span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true">$</span></td><td style="text-align: right"><span style="-sec-ix-redline: true"><span id="xdx_901_eus-gaap--OperatingLeaseLiabilityNoncurrent_iI_c20221231_zBhNkBWJIbvl" title="Long-term portion lease liabilities">3,161,703</span></span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true">$</span></td><td style="text-align: right"><span style="-sec-ix-redline: true"><span id="xdx_909_eus-gaap--OperatingLeaseLiabilityNoncurrent_iI_c20211231_zT6urdwtYxTj" title="Long-term portion lease liabilities">942,404</span></span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> </table> 3952317 2019745 628113 1235977 3161703 942404 1287143 532892 <p id="xdx_898_eus-gaap--LesseeOperatingLeaseLiabilityMaturityTableTextBlock_zoc9GogWz8Pi" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0.5in; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">As of December 31, 2022, scheduled future maturities of the Company’s lease liabilities are as follows:</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span><span id="xdx_8BE_zc54OvDQCg79" style="display: none">Schedule of Future Maturities Lease Liabilities</span></span></span></p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td style="font-weight: bold"><span style="-sec-ix-redline: true">Year Ending December 31,</span></td><td><span style="-sec-ix-redline: true"> </span></td> <td colspan="2"><span style="-sec-ix-redline: true"> </span></td><td id="xdx_499_20221231_zncbxiCsdE86"><span style="-sec-ix-redline: true"> </span></td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 80%; text-align: left"><span style="-sec-ix-redline: true">2023</span></td><td style="width: 2%"><span style="-sec-ix-redline: true"> </span></td> <td style="width: 1%; text-align: left"><span style="-sec-ix-redline: true">$</span></td><td style="width: 16%; text-align: right"><span style="-sec-ix-redline: true"><span id="xdx_900_eus-gaap--LesseeOperatingLeaseLiabilityPaymentsDueNextTwelveMonths_iI_c20221231_zIUe7G5lCvci" title="Year One">840,348</span></span></td><td style="width: 1%; text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left"><span style="-sec-ix-redline: true">2024</span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true"><span id="xdx_90F_eus-gaap--LesseeOperatingLeaseLiabilityPaymentsDueYearTwo_iI_c20221231_zceS2vAyCOcf" title="Year Two">945,271</span></span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left"><span style="-sec-ix-redline: true">2025</span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true"><span id="xdx_90A_eus-gaap--LesseeOperatingLeaseLiabilityPaymentsDueYearThree_iI_c20221231_zLPC2kELKSMj" title="Year Three">951,344</span></span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left"><span style="-sec-ix-redline: true">2026</span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true"><span id="xdx_90C_eus-gaap--LesseeOperatingLeaseLiabilityPaymentsDueYearFour_iI_c20221231_zbKpXijCNQfa" title="Year Four">742,855</span></span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left"><span style="-sec-ix-redline: true">2027</span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true"><span id="xdx_90F_eus-gaap--LesseeOperatingLeaseLiabilityPaymentsDueYearFive_iI_c20221231_zhwEFfins9J8" title="Year Five">723,901</span></span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-bottom: 1.5pt"><span style="-sec-ix-redline: true">Thereafter</span></td><td style="padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 1.5pt solid; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="border-bottom: Black 1.5pt solid; text-align: right"><span style="-sec-ix-redline: true"><span id="xdx_900_eus-gaap--LesseeOperatingLeaseLiabilityPaymentsDueAfterYearFive_iI_c20221231_zJiIvoLp8p9h" title="After Year Five">180,970</span></span></td><td style="padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left"><span style="-sec-ix-redline: true">Total future minimum lease payments, undiscounted</span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true"><span id="xdx_90F_eus-gaap--OperatingLeaseLiability_iTI_c20221231_zJaFnaQ6lGXl" title="Total future minimum lease payments, undiscounted">4,384,689</span></span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true">Less: Amount representing interest</span></td><td style="padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 1.5pt solid; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="border-bottom: Black 1.5pt solid; text-align: right"><span style="-sec-ix-redline: true"><span id="xdx_908_eus-gaap--LesseeOperatingLeaseLiabilityUndiscountedExcessAmount_iNI_di_c20221231_zKIGLD4jpCIh" title="Less: Amount representing interest">(594,873</span></span></td><td style="padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true">)</span></td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 2.5pt"><span style="-sec-ix-redline: true">Present value of future minimum lease payments</span></td><td style="padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 2.5pt double; text-align: left"><span style="-sec-ix-redline: true">$</span></td><td style="border-bottom: Black 2.5pt double; text-align: right"><span style="-sec-ix-redline: true"><span id="xdx_906_eus-gaap--LesseeOperatingLeaseLiabilityPaymentsDue_iTI_c20221231_zmKc4ebpsSN2" title="Present value of future minimum lease payments">3,789,816</span></span></td><td style="padding-bottom: 2.5pt; text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 2.5pt"><span style="-sec-ix-redline: true">Present value of future minimum lease payments – current</span></td><td style="padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 2.5pt double; text-align: left"><span style="-sec-ix-redline: true">$</span></td><td style="border-bottom: Black 2.5pt double; text-align: right"><span style="-sec-ix-redline: true"><span id="xdx_906_eus-gaap--OperatingLeaseLiabilityCurrent_iI_c20221231_zzYlIslfA3lk" title="Current portion of lease liabilities">628,113</span></span></td><td style="padding-bottom: 2.5pt; text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 2.5pt"><span style="-sec-ix-redline: true">Present value of future minimum lease payments – long-term</span></td><td style="padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 2.5pt double; text-align: left"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">$</span></span></td><td style="border-bottom: Black 2.5pt double; text-align: right"><span style="-sec-ix-redline: true"><span id="xdx_90A_eus-gaap--OperatingLeaseLiabilityNoncurrent_iI_c20221231_zzCmhl6pZEA4" title="Present value of future minimum lease payments long-term">3,161,703</span></span></td><td style="padding-bottom: 2.5pt; text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> </table> 840348 945271 951344 742855 723901 180970 4384689 594873 3789816 628113 3161703 <p id="xdx_898_ecustom--ScheduleOfWeightedAverageLeaseTermAndDiscountRateLeasesTableTextBlock_zLTO7kWpGRkg" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0.5in; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">As of December 31, 2022 and 2021, the weighted average lease-term and discount rate of the Company’s leases are as follows:</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> <span id="xdx_8B6_zMWcy66VLRi2" style="display: none">Schedule of Weighted Average Lease-term and Discount Rate Leases</span></span></span></p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td><span style="-sec-ix-redline: true"> </span></td><td style="font-weight: bold; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td colspan="6" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"><span style="-sec-ix-redline: true">Year ended December 31,</span></td><td style="padding-bottom: 1.5pt; font-weight: bold"><span style="-sec-ix-redline: true"> </span></td></tr> <tr style="vertical-align: bottom"> <td style="padding-bottom: 1.5pt; font-weight: bold"><span style="-sec-ix-redline: true"> </span></td><td style="font-weight: bold; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"><span style="-sec-ix-redline: true">2022</span></td><td style="padding-bottom: 1.5pt; font-weight: bold"><span style="-sec-ix-redline: true"> </span></td><td style="font-weight: bold; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"><span style="-sec-ix-redline: true">2021</span></td><td style="padding-bottom: 1.5pt; font-weight: bold"><span style="-sec-ix-redline: true"> </span></td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-weight: bold"><span style="-sec-ix-redline: true">Other Information</span></td><td style="font-weight: bold"><span style="-sec-ix-redline: true"> </span></td> <td colspan="2" style="font-weight: bold; text-align: center"><span style="-sec-ix-redline: true"> </span></td><td style="font-weight: bold"><span style="-sec-ix-redline: true"> </span></td><td style="font-weight: bold"><span style="-sec-ix-redline: true"> </span></td> <td colspan="2" style="font-weight: bold; text-align: center"><span style="-sec-ix-redline: true"> </span></td><td style="font-weight: bold"><span style="-sec-ix-redline: true"> </span></td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="width: 60%; text-align: left"><span style="-sec-ix-redline: true">Weighted-average remaining lease terms (in years)</span></td><td style="width: 2%"><span style="-sec-ix-redline: true"> </span></td> <td style="width: 1%; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="width: 16%; text-align: right"><span style="-sec-ix-redline: true"><span id="xdx_90B_eus-gaap--AcquiredFiniteLivedIntangibleAssetsWeightedAverageUsefulLife_dtY_c20220101__20221231_z1qfG566iKC8" title="Weighted-average remaining lease terms">4.8</span></span></td><td style="width: 1%; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="width: 2%"><span style="-sec-ix-redline: true"> </span></td> <td style="width: 1%; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="width: 16%; text-align: right"><span style="-sec-ix-redline: true"><span id="xdx_90F_eus-gaap--AcquiredFiniteLivedIntangibleAssetsWeightedAverageUsefulLife_dtY_c20210101__20211231_zgCXCOzE5j7b" title="Weighted-average remaining lease terms">2.3</span></span></td><td style="width: 1%; text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left"><span style="-sec-ix-redline: true">Weighted-average discount rate</span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td id="xdx_989_eus-gaap--OperatingLeaseWeightedAverageDiscountRatePercent_iI_dp_uPure_c20221231_zofrVcnSqdkc" style="text-align: right" title="Weighted-average discount rate"><span style="-sec-ix-redline: true">6.0</span></td><td style="text-align: left"><span style="-sec-ix-redline: true">%</span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td id="xdx_985_eus-gaap--OperatingLeaseWeightedAverageDiscountRatePercent_iI_dp_uPure_c20211231_zK49EngkKEWj" style="text-align: right" title="Weighted-average discount rate"><span style="-sec-ix-redline: true">6.0</span></td><td style="text-align: left"><span style="-sec-ix-redline: true">%</span></td></tr> </table> P4Y9M18D P2Y3M18D 0.060 0.060 <p id="xdx_892_eus-gaap--ScheduleOfCashFlowSupplementalDisclosuresTableTextBlock_z4b7MToTfmLl" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0.5in; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">For the years ended December 31, 2022 and 2021, supplemental cash flow information related to leases is as follows:</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span><span id="xdx_8BA_zuaj9mV0paV2" style="display: none">Schedule of Cash Flow Supplemental Information</span></span></span></p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="display: none; vertical-align: bottom"> <td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_49A_20220101__20221231_ztgR5d8aexMf" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"> </td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_492_20210101__20211231_zWCCprR5laca" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"> </td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td><span style="-sec-ix-redline: true"> </span></td><td style="font-weight: bold; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td colspan="6" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"><span style="-sec-ix-redline: true">Year ended December 31,</span></td><td style="padding-bottom: 1.5pt; font-weight: bold"><span style="-sec-ix-redline: true"> </span></td></tr> <tr style="vertical-align: bottom"> <td style="padding-bottom: 1.5pt; font-weight: bold"><span style="-sec-ix-redline: true"> </span></td><td style="font-weight: bold; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"><span style="-sec-ix-redline: true">2022</span></td><td style="padding-bottom: 1.5pt; font-weight: bold"><span style="-sec-ix-redline: true"> </span></td><td style="font-weight: bold; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"><span style="-sec-ix-redline: true">2021</span></td><td style="padding-bottom: 1.5pt; font-weight: bold"><span style="-sec-ix-redline: true"> </span></td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-weight: bold"><span style="-sec-ix-redline: true">Other Information</span></td><td style="font-weight: bold"><span style="-sec-ix-redline: true"> </span></td> <td colspan="2" style="font-weight: bold; text-align: center"><span style="-sec-ix-redline: true"> </span></td><td style="font-weight: bold"><span style="-sec-ix-redline: true"> </span></td><td style="font-weight: bold"><span style="-sec-ix-redline: true"> </span></td> <td colspan="2" style="font-weight: bold; text-align: center"><span style="-sec-ix-redline: true"> </span></td><td style="font-weight: bold"><span style="-sec-ix-redline: true"> </span></td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left"><span style="-sec-ix-redline: true">Cash paid for amounts included in the measurement of liabilities:</span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> <tr id="xdx_404_ecustom--CashPaidForAmountsIncludedInMeasurementOfLiabilitiesOperatingCashFlowsForOperatingLeases_zK5RTkwgjkFg" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 60%; text-align: left"><span style="-sec-ix-redline: true">Operating cash flows for operating leases</span></td><td style="width: 2%"><span style="-sec-ix-redline: true"> </span></td> <td style="width: 1%; text-align: left"><span style="-sec-ix-redline: true">$</span></td><td style="width: 16%; text-align: right"><span style="-sec-ix-redline: true">1,614,468</span></td><td style="width: 1%; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="width: 2%"><span style="-sec-ix-redline: true"> </span></td> <td style="width: 1%; text-align: left"><span style="-sec-ix-redline: true">$</span></td><td style="width: 16%; text-align: right"><span style="-sec-ix-redline: true">532,892</span></td><td style="width: 1%; text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left"><span style="-sec-ix-redline: true">Lease liabilities related to the acquisition of right of use assets:</span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> <tr id="xdx_40A_eus-gaap--OperatingLeasePayments_zCUGElhdeSp3" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left"><span style="-sec-ix-redline: true">Operating leases</span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true">$</span></td><td style="text-align: right"><span style="-sec-ix-redline: true"><span style="-sec-ix-hidden: xdx2ixbrl4318">—</span></span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true">$</span></td><td style="text-align: right"><span style="-sec-ix-redline: true">2,196,370</span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> </table> 1614468 532892 2196370 <p id="xdx_805_eus-gaap--CommitmentsAndContingenciesDisclosureTextBlock_zkcWACfIpgE6" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Note 14 – <span id="xdx_821_z7fSKFSMrte7">Commitments and Contingencies</span></b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i>Board Appointments and Departures</i></b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Ms. Kelly J. Anderson</b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i><span style="text-decoration: underline">Appointment as Board Member and Chairman of the Audit Committee</span></i></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0.5in; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">On December 6, 2022, the Board of Directors of AgEagle appointed Kelly J. Anderson as a Board member to fill the vacancy created by the recent resignation of Luisa Ingargiola, effective December 5, 2022. Ms. Anderson qualifies as an independent director under the corporate governance standards of the NYSE American and meets the financial sophistication requirements of the NYSE American. She also meets the independence requirements of Rule 10A-3 of the Securities Exchange Act of 1934, as amended, and qualifies as an “audit committee financial expert” as such term is currently defined in Item 407(d)(5) of Regulation S-K. Also effective on December 5, 2022, Ms. Anderson was appointed to the Company’s Compensation Committee and Nominating and Corporate Governance Committee and was appointed to chair the Company’s Audit Committee.</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0.5in; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">As compensation for services as an independent director, Ms. Anderson shall receive an annual cash fee of $<span id="xdx_903_eus-gaap--OfficersCompensation_c20221205__20221206__srt--TitleOfIndividualAxis__custom--MsKellyJAndersonMember_zHO2HbBJ8Ys5" title="Officers compensation">60,000</span>, payable quarterly; and a quarterly grant of <span id="xdx_90F_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsGrantsInPeriodGross_c20221205__20221206__srt--TitleOfIndividualAxis__custom--MsKellyJAndersonMember_z6aqJS06gok3" title="Number of stock options granted">25,000</span> stock options with an exercise price at the current market price of the Company’s Common Stock at the time of issuance (the “Quarterly Options”). The Quarterly Options are exercisable for a period of <span id="xdx_909_ecustom--ShareBasedCompensationArrangementByShareBasedPaymentAwardAwardExercisablePeriod1_dc_c20221205__20221206__srt--TitleOfIndividualAxis__custom--MsKellyJAndersonMember_zvqqXdkGRFXk" title="Exercisable period">five years</span> from the date of grant and vest in equal quarterly installments over a period of <span id="xdx_90A_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardAwardVestingPeriod1_dc_c20221205__20221206__srt--TitleOfIndividualAxis__custom--MsKellyJAndersonMember_zH1jtzSu8trh" title="Vesting period">two years</span> from the date of grant.</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>AGEAGLE AERIAL SYSTEMS INC. AND SUBSIDIARIES </b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>NOTES TO CONSOLIDATED FINANCIAL STATEMENTS</b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>FOR THE YEARS ENDED DECEMBER 31, 2022 AND 2021</b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Note 14 – Commitments and Contingencies-Continued</b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Ms. Luisa Ingargiola</b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i><span style="text-decoration: underline">Departure of Board Member</span></i></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0.5in; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">On November 18, 2022, Ms. Luisa Ingargiola resigned as a director, a member of the Compensation Committee and Nominating and Corporate Governance committee, and the chair of the Audit Committee of AgEagle. Ms. Ingargiola’s resignation from the Company’s Board of Directors was not a result of any disagreement with management or any matter relating to the Company’s operations, policies or practices.</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i>Executive Appointments and Departures </i></b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Mr. Michael O’Sullivan</b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i><span style="text-decoration: underline">Appointment as Chief Commercial Officer</span></i></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0.5in; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">On April 11, 2022, Michael O’Sullivan (“Mr. O’Sullivan”) was appointed as the Company’s Chief Commercial Officer, Mr. O’Sullivan will receive an annual base salary of <span id="xdx_901_eus-gaap--OfficersCompensation_c20220411__20220411__srt--TitleOfIndividualAxis__custom--MrMichaelOSullivianMember__us-gaap--PlanNameAxis__custom--TwentyTwentyTwoExecutiveCompensationPlanMember_zhoDT4SMVryg" title="Officers compensation">250,000</span> CHF per year, subject to annual performance reviews and revisions by and at the sole discretion of the Compensation Committee. In accordance with the 2022 Executive Compensation Plan and as approved by the Compensation Committee, Mr. O’Sullivan will be eligible to receive an annual cash bonus of up to <span id="xdx_908_ecustom--PercentageOfAnnualCashBonus_dp_uPure_c20220411__20220411__srt--TitleOfIndividualAxis__custom--MrMichaelOSullivianMember__us-gaap--PlanNameAxis__custom--TwentyTwentyTwoExecutiveCompensationPlanMember_zDGTBthLdyPl" title="Percentage of annual cash bonus">30</span>% of his then-current base salary and RSUs with a fair value of up to <span id="xdx_906_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsVestedInPeriodTotalFairValue_c20220411__20220411__srt--TitleOfIndividualAxis__custom--MrMichaelOSullivianMember__srt--RangeAxis__srt--MaximumMember__us-gaap--PlanNameAxis__custom--TwentyTwentyTwoExecutiveCompensationPlanMember_zuVY8ef23D23" title="Fair value of RSUs">150,000</span> CHF, based upon achievement of the performance milestones established in the 2022 Executive Compensation Plan. Furthermore, Mr. O’Sullivan is entitled to a service-based bonus, comprised of a cash bonus of <span id="xdx_905_ecustom--CashBonus_c20220411__20220411__srt--TitleOfIndividualAxis__custom--MrMichaelOSullivianMember__us-gaap--PlanNameAxis__custom--TwentyTwentyTwoExecutiveCompensationPlanMember_zbW1G1f03hC9" title="Cash bonus">87,500</span> CHF and RSUs with a fair value of <span id="xdx_905_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsVestedInPeriodTotalFairValue_c20220411__20220411__srt--TitleOfIndividualAxis__custom--MrMichaelOSullivianMember__us-gaap--PlanNameAxis__custom--TwentyTwentyTwoExecutiveCompensationPlanMember_zuu3iHBTTL2f" title="Fair value of RSUs">87,500</span> CHF. Upon execution of his employment agreement with the Company, Mr. O’Sullivan was immediately granted RSUs with a fair value of <span id="xdx_908_ecustom--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsImmediatelyGrantedInPeriodFairValue_c20220411__20220411__srt--TitleOfIndividualAxis__custom--MrMichaelOSullivianMember__us-gaap--PlanNameAxis__custom--TwentyTwentyTwoExecutiveCompensationPlanMember_zLPEEnXD4rC5" title="Immediately granted fair value of RSUs">43,750</span> CHF, as part of his service-based bonus. The remaining RSUs with a fair value of <span id="xdx_906_ecustom--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsVestedRemainingInPeriodFairValue_c20220411__20220411__srt--TitleOfIndividualAxis__custom--MrMichaelOSullivianMember__us-gaap--PlanNameAxis__custom--TwentyTwentyTwoExecutiveCompensationPlanMember_zkGneV8encje" title="Remaining fair value of RSUs">43,750</span> CHF and the cash payment of <span id="xdx_900_ecustom--SharebasedCompensationArrangementBySharebasedPaymentAwardCashPaymentVestedInPeriodFairValue1_c20220411__20220411__srt--TitleOfIndividualAxis__custom--MrMichaelOSullivianMember__us-gaap--PlanNameAxis__custom--TwentyTwentyTwoExecutiveCompensationPlanMember_zwiEYi3RGA59" title="Cash payment">87,500</span> CHF will vest in October 2022. In addition, Mr. O’Sullivan is entitled to receive a quarterly grant of <span id="xdx_908_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsGrantsInPeriod_c20220411__20220411__srt--TitleOfIndividualAxis__custom--MrMichaelOSullivianMember__us-gaap--PlanNameAxis__custom--TwentyTwentyTwoExecutiveCompensationPlanMember_zi38prua1E2g" title="Number of stock options granted">10,000</span> stock options at the fair market value of the Company’s Common Stock on the grant date, vesting over <span id="xdx_902_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardAwardVestingPeriod1_dc_c20220411__20220411__srt--TitleOfIndividualAxis__custom--MrMichaelOSullivianMember__us-gaap--PlanNameAxis__custom--TwentyTwentyTwoExecutiveCompensationPlanMember_z8Kbe8oqStMd" title="Vesting period">two years</span>, and exercisable for a period of <span id="xdx_90D_ecustom--ShareBasedCompensationArrangementByShareBasedPaymentAwardAwardExercisablePeriod1_dc_c20220411__20220411__srt--TitleOfIndividualAxis__custom--MrMichaelOSullivianMember__us-gaap--PlanNameAxis__custom--TwentyTwentyTwoExecutiveCompensationPlanMember_zBQ15RKHKVj" title="Exercisable period">five years</span>.</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0.5in; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Mr. O’Sullivan is provided with severance benefits in the event of termination without cause or for good reason, as defined in his employment offer letter. Upon execution of a severance agreement entered into between Mr. O’Sullivan and the Company, Mr. O’Sullivan will be entitled to the following benefits: <span id="xdx_904_ecustom--DescriptionOfSeveranceAgreement_c20220411__20220411__srt--TitleOfIndividualAxis__custom--MrMichaelOSullivianMember_z5cYgBMtcLw" title="Description of severance agreement">(i) three months of base salary, paid in the form of salary continuation, in accordance with the terms of a Separation Agreement to be entered into at the time of termination; (ii) three months of paid Garden Leave, which is paid in the form of salary continuation, in accordance with the laws of Switzerland; and (iii) a grant of fully-vested RSUs with a fair market value of 150,000 CHF on the date of termination of employment, pursuant to the terms of the separation agreement.</span></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0.5in; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The severance benefits are conditioned upon (i) continued compliance in all material respects with Mr. O’Sullivan’s continuing obligations to the Company, including, without limitation, the terms of the amended employment offer letter and of the confidentiality agreement that survive termination of employment with the Company, and (ii) signing (without revoking if such right is provided under applicable law) a separation agreement and general release in a form provided to the executive officer by the Company on or about the date of termination of employment.</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>AGEAGLE AERIAL SYSTEMS INC. AND SUBSIDIARIES </b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>NOTES TO CONSOLIDATED FINANCIAL STATEMENTS</b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>FOR THE YEARS ENDED DECEMBER 31, 2022 AND 2021</b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Note 14 – Commitments and Contingencies-Continued</b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Mr. Barrett Mooney</b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i><span style="text-decoration: underline">Appointment as Chief Executive Officer and Chairman of the Board</span></i></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0.5in; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">On January 17, 2022, Mr. Barrett Mooney, the Company’s Chairman of the Board and the Chief Executive Officer immediately preceding Mr. Michael Drozd, was reappointed to serve as the Chief Executive Officer of the Company and to continue in his role as Chairman of the Board. In his role as Chief Executive Officer, Mr. Mooney will receive an annual base salary of $<span id="xdx_90F_eus-gaap--OfficersCompensation_c20220117__20220117__srt--TitleOfIndividualAxis__custom--MrBarrettMooneyMember_zxR0eEEaau57" title="Officers compensation">380,000</span> per year, subject to annual performance reviews and revisions by and at the sole discretion of the Compensation Committee. In accordance with the 2022 Executive Compensation Plan, approved by the Compensation Committee, Mr. Mooney is entitled to receive an annual bonus comprised of up to <span id="xdx_901_ecustom--PercentageOfAnnualCashBonus_dp_uPure_c20220117__20220117__srt--TitleOfIndividualAxis__custom--MrBarrettMooneyMember_z9F2TkWiuuxi" title="Percentage of annual cash bonus">35</span>% of his base salary in cash and <span id="xdx_900_eus-gaap--StockIssuedDuringPeriodSharesRestrictedStockAwardGross_c20220117__20220117__srt--TitleOfIndividualAxis__custom--MrBarrettMooneyMember__us-gaap--PlanNameAxis__custom--TwentyTwentyTwoExecutiveCompensationPlanMember_zrJqjq1grExd" title="Number of restricted stock units">350,000</span> in RSUs, based upon his performance as determined by certain metrics established by the Board and Mr. Mooney. In addition, Mr. Mooney is entitled to receive a quarterly grant of <span id="xdx_907_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsGrantsInPeriod_c20220117__20220117__srt--TitleOfIndividualAxis__custom--MrBarrettMooneyMember__us-gaap--PlanNameAxis__custom--TwentyTwentyTwoExecutiveCompensationPlanMember_z7rKESoJhDE6" title="Number of stock options granted">25,000</span> stock options at the fair market value of the Company’s Common Stock on the issuance date, vesting over <span id="xdx_904_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardAwardVestingPeriod1_dc_c20220117__20220117__srt--TitleOfIndividualAxis__custom--MrBarrettMooneyMember__us-gaap--PlanNameAxis__custom--TwentyTwentyTwoExecutiveCompensationPlanMember_zBy88eQKV2Ek" title="Vesting period">two years</span>, and exercisable for a period of <span id="xdx_908_ecustom--ShareBasedCompensationArrangementByShareBasedPaymentAwardAwardExercisablePeriod_dc_c20220117__20220117__srt--TitleOfIndividualAxis__custom--MrMichaelOSullivianMember__us-gaap--PlanNameAxis__custom--MrBarrettMooneyMember_z3jGZIm6uqie" title="Exercisable period">five years</span>.</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0.5in; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Mr. Mooney is provided with severance benefits in the event of termination without cause or for good reason, as defined in her amended employment offer letter. Upon execution of a severance agreement entered into between Mr. Mooney and the Company, Mr. Mooney will be entitled to the following benefits: <span id="xdx_906_ecustom--DescriptionOfSeveranceAgreement_c20220117__20220117__srt--TitleOfIndividualAxis__custom--MrBarrettMooneyMember_zPFegFtl7iQ1" title="Description of severance agreement">(i) six months of base salary, paid in the form of salary continuation, in accordance with the terms of a Separation Agreement to be entered into at the time of termination; (ii) reimbursement of COBRA health insurance premiums at the same rate as if the executive officer were an active employee of the Company (conditioned on the executive officer having elected COBRA continuation coverage) for a period of 6 months or, if earlier, until the executive officer is eligible for group health insurance benefits from another employer; and (iii) a grant of fully-vested RSUs with a fair market value of $190,000 on the date of termination of employment, pursuant to the terms of the separation agreement.</span></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0.5in; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The severance benefits are conditioned upon (i) continued compliance in all material respects with Mr. Mooney’s continuing obligations to the Company, including, without limitation, the terms of the amended employment offer letter and of the confidentiality agreement that survive termination of employment with the Company, and (ii) signing (without revoking if such right is provided under applicable law) a separation agreement and general release in a form provided to the executive officer by the Company on or about the date of termination of employment.</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0.5in; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">In the event the Board of Directors (the “Board”) determines in its discretion that Mr. Mooney must relocate his principal place of performance of her duties, the Company shall pay and/or reimburse his expenses in connection with such relocation.</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Mr. Torres Declet</b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i><span style="text-decoration: underline">Resignation as Chief Executive Officer</span></i></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 45px; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">On January 17, 2022, the Company and Mr. Brandon Torres Declet mutually agreed to Mr. Torres Declet’s resignation as Chief Executive Officer and as a director of the Company. In connection with his departure, and in accordance with his employment agreement with the Company, Mr. Torres Declet will receive base salary continuation equal to six months of his then annual salary, reimbursement of COBRA health insurance premiums for a period of six months at the same rate as if Mr. Torres Declet were an active employee of the Company, and a grant of fully-vested restricted shares of Common Stock of the Company with a fair market value of $<span id="xdx_908_ecustom--FairValueOfFullyVestedRestrictedSharesOfCommonStock_c20220117__20220117__srt--TitleOfIndividualAxis__custom--MrTorresDecletMember_zJNRey5MVJ95" title="Fair value of fully vested restricted shares of common stock">125,000</span> on the date of termination of employment, resulting in the issuance of <span id="xdx_902_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsGrantsInPeriod_c20220117__20220117__srt--TitleOfIndividualAxis__custom--MrTorresDecletMember_zQBT4Gzq16jd" title="Issuance of RSUs">111,607</span> RSUs.</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 45px; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>AGEAGLE AERIAL SYSTEMS INC. AND SUBSIDIARIES </b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>NOTES TO CONSOLIDATED FINANCIAL STATEMENTS</b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>FOR THE YEARS ENDED DECEMBER 31, 2022 AND 2021</b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Note 14 – Commitments and Contingencies-Continued</b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i><span style="text-decoration: underline">Appointment as Chief Executive Officer and Chief Operating Officer</span></i></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0.5in; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">On April 19, 2021, in connection with the Measure Acquisition, the Board approved the appointment of Mr. Torres Declet as the Company’s Chief Operating Officer. Mr. Declet also served as the President of Measure. Prior to joining the Company, Mr. Declet, co-founded Measure, and since 2014, served as its President. In his position as Chief Operating Officer, Mr. Declet received an annual base salary of $<span id="xdx_90B_eus-gaap--OfficersCompensation_c20210419__20210419__srt--TitleOfIndividualAxis__custom--MrTorresDecletMember_zyk6a3zE05Oc" title="Officers compensation">225,000</span> per year, subject to increases at the discretion of the Board. Mr. Declet was eligible for an annual cash bonus of up to <span id="xdx_90C_ecustom--PercentageOfAnnualCashBonus_dp_uPure_c20210419__20210419__srt--TitleOfIndividualAxis__custom--MrTorresDecletMember_zvfi6AiZ9Kwh" title="Percentage of annual cash bonus">20</span>% of his then-current base salary, as determined by the Board in its good faith discretion, based on the achievement of a combination of personal and Company objectives. Mr. Declet was also eligible to participate in any benefit plans offered by the Company as in effect from time to time on the same basis as generally made available to other employees of the Company. Mr. Declet would be awarded a one-time grant of <span id="xdx_90F_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsGrantsInPeriod_c20210419__20210419__srt--TitleOfIndividualAxis__custom--MrTorresDecletMember_zfR6rGADVJI8" title="Number of RSUs granted">125,000</span> RSUs that vest on a pro rata basis over one year commencing on the date of closing of the Measure Acquisition. Additionally, Mr. Declet was entitled to be granted, on a quarterly basis, non-qualified options to acquire <span id="xdx_90E_ecustom--NumberOfNonQualifiedOptionsToAcquireSharesOfCommonStock_c20210419__20210419__srt--TitleOfIndividualAxis__custom--MrTorresDecletMember_zfjCFH4qjowj" title="Number of non qualified options to acquire shares of common stock">25,000</span> shares of Company Common Stock.</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0.5in; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">On May 24, 2021, Mr. Torres Declet was appointed to serve as the new Chief Executive Officer of the Company. Mr. Torres Declet did not continue to serve as the Company’s Chief Operating Officer. On June 11, 2021, the Board upon recommendation of the Compensation Committee, approved an increase in Mr. Torres Declet’s annual base salary from $<span id="xdx_900_eus-gaap--OfficersCompensation_c20210610__20210610__srt--TitleOfIndividualAxis__custom--MrTorresDecletMember_zz6bF6iXG3M7" title="Officers compensation">225,000</span> to $<span id="xdx_901_eus-gaap--OfficersCompensation_c20210611__20210611__srt--TitleOfIndividualAxis__custom--MrTorresDecletMember_z93WpxyjWOFj" title="Officers compensation">235,000</span>, effective as of May 24, 2021, commensurate with his new position as Chief Executive Officer. Mr. Torres Declet was entitled to receive an annual <span id="xdx_90D_ecustom--PercentageOfAnnualCashBonus_dp_uPure_c20210524__20210524__srt--TitleOfIndividualAxis__custom--MrTorresDecletMember_zgE6VYKJKXOd" title="Percentage of annual cash bonus">20</span>% bonus, comprised of a mix of cash and RSUs, based upon his performance as determined by certain metrics established by the Board and Mr. Torres Declet.</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0.5in; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">On November 12, 2021, the Board, in connection with the 2021 senseFly Acquisition and the 2021 Executive Bonus Compensation Plan, approved a bonus of $<span id="xdx_90C_ecustom--CashBonus_c20211112__20211112__srt--TitleOfIndividualAxis__custom--MrTorresDecletMember__us-gaap--PlanNameAxis__custom--TwentyTwentyOneExecutiveBonusMember_zPV6oGx2MMp" title="Cash bonus">10,000</span> cash and <span id="xdx_905_eus-gaap--StockIssuedDuringPeriodSharesRestrictedStockAwardGross_c20211112__20211112__srt--TitleOfIndividualAxis__custom--MrTorresDecletMember__us-gaap--PlanNameAxis__custom--TwentyTwentyOneExecutiveBonusMember_zpDKz57jumXf" title="Number of RSUs">75,000</span> RSUs to Mr. Torres Declet.</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0.5in; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">On February 7, 2022, the Company’s Board, upon recommendation of the Compensation Committee, approved the 2021 Executive Bonus Award comprising of $<span id="xdx_904_ecustom--CashBonus_c20220207__20220207__srt--TitleOfIndividualAxis__custom--MrTorresDecletMember_zBW5bl4tP9a1" title="Cash bonus">5,000</span> in cash bonus and the issuance of <span id="xdx_904_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsGrantsInPeriod_c20220207__20220207__srt--TitleOfIndividualAxis__custom--MrTorresDecletMember_zOlGbViP6EAk" title="Issuance of RSUs">42,500</span> RSUs for Mr. Torres Declet, the Company’s Chief Executive Officer.</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Mr. J. Michael Drozd</b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i><span style="text-decoration: underline">Resignation as Chief Executive Officer</span></i></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0.5in; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">On May 24, 2021, the Company and Mr. J. Michael Drozd (“Mr. Drozd”) mutually agreed to Mr. Drozd’s resignation as Chief Executive Officer, effective immediately (the “Termination Date”). Mr. Drozd resigned to pursue new career opportunities. In connection with his departure, Mr. Drozd and the Company entered into a separation agreement and General Release, dated June 11, 2021 (“Separation Agreement”), pursuant to which, among other things, the Company agreed to and did pay Mr. Drozd the following: <span id="xdx_906_ecustom--DescriptionOfSeveranceAgreement_c20210524__20210524__srt--TitleOfIndividualAxis__custom--MrJMichaelDrozdMember_zGNtJR9Sop91" title="Description of severance agreement">(i) his regular base salary at the annual rate of $235,000 through the Termination Date; (ii) an annual performance bonus comprised of $37,130 in cash and 118,500 shares of the Company’s Common Stock, (iii) severance pay equal to six months of his base salary as of the Termination Date; (iv) reimbursement for six months’ of COBRA health insurance premiums at the same rate as if Mr. Drozd were an active employee of the Company; (v) cash payment equal to three days of accrued and unused vacation days; and (vi) 26,652 fully-vested RSUs with a fair value of $125,000 at the date of grant. Additionally, Mr. Drozd’s then outstanding and unvested equity awards continued to be governed by the terms of the applicable award agreements, except that 8,333 of the 100,000 RSUs granted to him on April 19, 2021, in accordance with his employment agreement with the Company, vested on the effective date of the Separation Agreement.</span></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>AGEAGLE AERIAL SYSTEMS INC. AND SUBSIDIARIES </b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>NOTES TO CONSOLIDATED FINANCIAL STATEMENTS</b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>FOR THE YEARS ENDED DECEMBER 31, 2022 AND 2021</b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Note 14 – Commitments and Contingencies-Continued</b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Nicole Fernandez-McGovern</b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i>Employment Arrangements for Nicole Fernandez-McGovern, Chief Financial Officer</i></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0.5in; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">On April 19, 2021, the Board of Directors of the Company, upon recommendation of the Compensation Committee, approved changes in the compensation of Mrs. Nicole Fernandez-McGovern (“Mrs. Nicole Fernandez-McGovern”) and entered into an agreement whereby (i) an additional one-time grant of <span id="xdx_906_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsGrantsInPeriod_c20210419__20210419__srt--TitleOfIndividualAxis__custom--NicoleFernandezMcGovernMember_zFCWobFdnGha" title="Number of RSUs granted">125,000</span> RSUs that will vest on a pro rata basis over one year subject to the terms of an RSU grant agreement, and (ii) an increase in the number of grants, on a quarterly basis, of non-qualified options from <span id="xdx_905_ecustom--ShareBasedCompensationArrangementByShareBasedPaymentAwardNumberOfNonQualifiedOptionsSharesAvailableForGrant_iI_c20210419__srt--TitleOfIndividualAxis__custom--NicoleFernandezMcGovernMember__srt--RangeAxis__srt--MinimumMember_zvK2VHQfGjMe" title="Number of non-qualified options">15,000</span> to <span id="xdx_901_ecustom--ShareBasedCompensationArrangementByShareBasedPaymentAwardNumberOfNonQualifiedOptionsSharesAvailableForGrant_iI_c20210419__srt--TitleOfIndividualAxis__custom--NicoleFernandezMcGovernMember__srt--RangeAxis__srt--MaximumMember_zXhR5TDw12pf" title="Number of non-qualified options">25,000</span> shares of Company common stock subject to the terms of the Plan, and the vesting requirements, the term of the option and exercisability at an exercise price equal to the fair market value of the option shares will be set forth in a grant agreement as of each date of grant. Mrs. Fernandez-McGovern’s current base salary and potential bonus payments have not been changed however she is provided with severance benefits in the event of termination without cause or for good reason, as defined in her amended employment offer letter. Upon execution of a severance agreement entered between Mrs. Fernandez-McGovern and the Company, Mrs. Fernandez-McGovern will be entitled to the following benefits: <span id="xdx_908_ecustom--DescriptionOfSeveranceAgreement_c20210419__20210419__srt--TitleOfIndividualAxis__custom--NicoleFernandezMcGovernMember_zLI89ch8Ob4c" title="Description of severance agreement">(i) six months of base salary, paid in the form of salary continuation, in accordance with the terms of a Separation Agreement to be entered into at the time of termination; (ii) reimbursement of COBRA health insurance premiums at the same rate as if the executive officer were an active employee of the Company (conditioned on the executive officer having elected COBRA continuation coverage) for a period of 6 months or, if earlier, until the executive officer is eligible for group health insurance benefits from another employer; and (iii) a grant of fully-vested RSUs with a fair market value of $125,000 on the date of termination of employment, pursuant to the terms of the separation agreement.</span></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0.5in; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The severance benefits are conditioned upon (i) continued compliance in all material respects with Mrs. Fernandez-McGovern’s continuing obligations to the Company, including, without limitation, the terms of the amended employment offer letter and of the confidentiality agreement that survive termination of employment with the Company, and (ii) signing (without revoking if such right is provided under applicable law) a separation agreement and general release in a form provided to the executive officer by the Company on or about the date of termination of employment.</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0.5in; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">In the event the Board of Directors (the “Board”) determines in its discretion that Mrs. Fernandez-McGovern must relocate her principal place of performance of her duties, the Company shall pay and/or reimburse her expenses in connection with such relocation.</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i>Approval of 2022 Executive Compensation Plan and Awards to Ms. Fernandez-McGovern</i></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0.5in; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">On February 7, 2022, the Company’s Board, upon recommendation of the Compensation Committee, approved the 2021 Executive Bonus Award comprising of $<span id="xdx_90A_ecustom--CashBonus_c20220702__20220702__srt--TitleOfIndividualAxis__custom--NicoleFernandezMcGovernMember__custom--PlanNamAxis__custom--TwentyTwentyOneExecutiveBonusAwardMember_zn7LWNjZWUyg" title="Cash bonus">10,000</span> in cash bonus and the issuance of <span id="xdx_90D_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsGrantsInPeriod_c20220207__20220207__srt--TitleOfIndividualAxis__custom--NicoleFernandezMcGovernMember__custom--PlanNamAxis__custom--TwentyTwentyOneExecutiveBonusAwardMember_zcFwRz7pOL2g" title="Issuance of RSUs">62,500</span> RSUs for Mrs. Nicole Fernandez-McGovern, the Company’s Chief Financial Officer.</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0.5in; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Additionally, on February 7, 2022, the Company’s Board, upon recommendation of the Compensation Committee, approved the adoption of its 2022 Executive Compensation Plan pursuant to which, if all performance milestones related to the Company’s operational, financial, and strategic targets are met, Mrs. Fernandez-McGovern will be eligible to receive the following:(i) an annual cash bonus of up to <span id="xdx_907_ecustom--PercentageOfAnnualCashBonus_dp_uPure_c20220207__20220207__srt--TitleOfIndividualAxis__custom--NicoleFernandezMcGovernMember__us-gaap--PlanNameAxis__custom--TwentyTwentyTwoExecutiveCompensationPlanMember_zP2oinGsufnl" title="Percentage of annual cash bonus">35</span>% of her then-current base salary and RSUs with a fair value of up to $<span id="xdx_907_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsVestedInPeriodTotalFairValue_c20220207__20220207__srt--TitleOfIndividualAxis__custom--NicoleFernandezMcGovernMember__us-gaap--PlanNameAxis__custom--TwentyTwentyTwoExecutiveCompensationPlanMember__srt--RangeAxis__srt--MaximumMember_zkkgNXNKcZ6c" title="Vested in period total fair value">300,000</span>, based upon achievement of the performance milestones established in the 2022 Executive Compensation Plan. (ii) a service-based bonus, comprised of a cash bonus of $<span id="xdx_90A_ecustom--CashBonus_c20220207__20220207__srt--TitleOfIndividualAxis__custom--NicoleFernandezMcGovernMember__custom--PlanNamAxis__custom--TwentyTwentyTwoExecutiveCompensationPlanMember_zqzAi1u8i3ma" title="Cash bonus">50,000</span> and RSUs with a fair value of $<span id="xdx_90B_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsVestedInPeriodTotalFairValue_c20220207__20220207__srt--TitleOfIndividualAxis__custom--NicoleFernandezMcGovernMember__us-gaap--PlanNameAxis__custom--TwentyTwentyTwoExecutiveCompensationPlanMember_zewbuUkIJxr2" title="Fair value of RSUs">50,000</span>, which is payable in October 2022, and (iii) a quarterly grant of <span id="xdx_90C_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsGrantsInPeriod_c20220207__20220207__srt--TitleOfIndividualAxis__custom--NicoleFernandezMcGovernMember__us-gaap--PlanNameAxis__custom--TwentyTwentyTwoExecutiveCompensationPlanMember_zTbetafhXHKa" title="Number of stock options granted">25,000</span> stock options at the fair market value of the Company’s Common Stock on the grant date, vesting over <span id="xdx_908_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardAwardVestingPeriod1_dc_c20220207__20220207__srt--TitleOfIndividualAxis__custom--NicoleFernandezMcGovernMember__us-gaap--PlanNameAxis__custom--TwentyTwentyTwoExecutiveCompensationPlanMember_z8qOkwA8GFwk" title="Vesting period">two years</span>, and exercisable for a period of <span id="xdx_90F_ecustom--ShareBasedCompensationArrangementByShareBasedPaymentAwardAwardExercisablePeriod1_dc_c20220207__20220207__srt--TitleOfIndividualAxis__custom--NicoleFernandezMcGovernMember__us-gaap--PlanNameAxis__custom--TwentyTwentyTwoExecutiveCompensationPlanMember_zPuRCUy9qmMe" title="Exercisable period">five years</span>.</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>AGEAGLE AERIAL SYSTEMS INC. AND SUBSIDIARIES </b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>NOTES TO CONSOLIDATED FINANCIAL STATEMENTS</b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>FOR THE YEARS ENDED DECEMBER 31, 2022 AND 2021</b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Note 14 – Commitments and Contingencies-Continued</b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0.5in; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">On November 12, 2021, the Board, in connection with the 2021 senseFly Acquisition and the 2021 executive compensation plan, approved a spot bonus of cash bonus of $<span id="xdx_908_ecustom--CashBonus_c20211112__20211112__srt--TitleOfIndividualAxis__custom--NicoleFernandezMcGovernMember__custom--PlanNamAxis__custom--TwentyTwentyOneCompensationPlanMember_zqFdIHBGnw0l" title="Cash bonus">10,000</span> and <span id="xdx_903_eus-gaap--StockIssuedDuringPeriodSharesRestrictedStockAwardGross_c20211112__20211112__srt--TitleOfIndividualAxis__custom--NicoleFernandezMcGovernMember__custom--PlanNamAxis__custom--TwentyTwentyOneExecutiveCompensationPlanMember_z4RXOuInWnCh" title="Number of RSUs">75,000</span> RSUs to Mrs. Fernandez-McGovern.</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0.5in; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The Company has various employment agreements with various employees of the<b> </b>Company which it considers normal and in the ordinary course of business along with agreements for all its directors which it has previously disclosed.</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0.5in; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The Company has no other formal employment agreements with our executive officers, nor any compensatory plans or arrangements resulting from the resignation, retirement, or any other termination of our named executive officers, from a change-in-control, or from a change in any executive officer’s responsibilities following a change-in-control. However, it is possible that the Company will enter into formal employment agreements with its executive officers in the future.</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i>Purchase Commitments</i></b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0.5in; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The Company routinely places orders for manufacturing services and materials. As of December 31, 2022, the Company had purchase commitments of approximately $<span id="xdx_90C_eus-gaap--PurchaseCommitmentRemainingMinimumAmountCommitted_iI_c20221231_zbSvxlCIrTj2" title="Purchase commitments">3,155,867</span>. These purchase commitments are expected to be realized during the year ending December 31, 2023.</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> 60000 25000 P5Y P2Y 250000 0.30 150000 87500 87500 43750 43750 87500 10000 P2Y P5Y (i) three months of base salary, paid in the form of salary continuation, in accordance with the terms of a Separation Agreement to be entered into at the time of termination; (ii) three months of paid Garden Leave, which is paid in the form of salary continuation, in accordance with the laws of Switzerland; and (iii) a grant of fully-vested RSUs with a fair market value of 150,000 CHF on the date of termination of employment, pursuant to the terms of the separation agreement. 380000 0.35 350000 25000 P2Y P5Y (i) six months of base salary, paid in the form of salary continuation, in accordance with the terms of a Separation Agreement to be entered into at the time of termination; (ii) reimbursement of COBRA health insurance premiums at the same rate as if the executive officer were an active employee of the Company (conditioned on the executive officer having elected COBRA continuation coverage) for a period of 6 months or, if earlier, until the executive officer is eligible for group health insurance benefits from another employer; and (iii) a grant of fully-vested RSUs with a fair market value of $190,000 on the date of termination of employment, pursuant to the terms of the separation agreement. 125000 111607 225000 0.20 125000 25000 225000 235000 0.20 10000 75000 5000 42500 (i) his regular base salary at the annual rate of $235,000 through the Termination Date; (ii) an annual performance bonus comprised of $37,130 in cash and 118,500 shares of the Company’s Common Stock, (iii) severance pay equal to six months of his base salary as of the Termination Date; (iv) reimbursement for six months’ of COBRA health insurance premiums at the same rate as if Mr. Drozd were an active employee of the Company; (v) cash payment equal to three days of accrued and unused vacation days; and (vi) 26,652 fully-vested RSUs with a fair value of $125,000 at the date of grant. Additionally, Mr. Drozd’s then outstanding and unvested equity awards continued to be governed by the terms of the applicable award agreements, except that 8,333 of the 100,000 RSUs granted to him on April 19, 2021, in accordance with his employment agreement with the Company, vested on the effective date of the Separation Agreement. 125000 15000 25000 (i) six months of base salary, paid in the form of salary continuation, in accordance with the terms of a Separation Agreement to be entered into at the time of termination; (ii) reimbursement of COBRA health insurance premiums at the same rate as if the executive officer were an active employee of the Company (conditioned on the executive officer having elected COBRA continuation coverage) for a period of 6 months or, if earlier, until the executive officer is eligible for group health insurance benefits from another employer; and (iii) a grant of fully-vested RSUs with a fair market value of $125,000 on the date of termination of employment, pursuant to the terms of the separation agreement. 10000 62500 0.35 300000 50000 50000 25000 P2Y P5Y 10000 75000 3155867 <p id="xdx_804_eus-gaap--RelatedPartyTransactionsDisclosureTextBlock_zWftGU4t6rJ1" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Note 15 – <span id="xdx_82B_zaMBMHTFhZ5h">Related Party Transactions</span></b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0.5in; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The following reflects the related party transactions during the years ended December 31, 2022 and 2021, respectively:</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0.5in; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Mrs. Fernandez-McGovern is one of the principals of Premier Financial Filings, a full-service financial printer. Premier Financial Filings provided contracted financial services to the Company. For the years ended December 31, 2022 and 2021, the expenses related to services provided by Premier Financial Filings to the Company, were $<span id="xdx_909_eus-gaap--CostsAndExpensesRelatedParty_c20220101__20221231__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--FernandezMcGovernMember__us-gaap--IncomeStatementLocationAxis__us-gaap--GeneralAndAdministrativeExpenseMember_zd9kud17cNtc" title="Related party costs">18,371</span> and $<span id="xdx_903_eus-gaap--CostsAndExpensesRelatedParty_c20210101__20211231__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--FernandezMcGovernMember__us-gaap--IncomeStatementLocationAxis__us-gaap--GeneralAndAdministrativeExpenseMember_zuESWOEcQsff" title="Related party costs">33,930</span>, respectively. These expenses are included within general and administrative expenses in the Company’s consolidated statements of operations.</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0.5in; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">One of the Company’s directors, Mr. Thomas Gardner, is one of the principals of NeuEon, Inc, which provides services to the Company as the Chief Technology Officer. For the years ended December 31, 2022 and 2021, the expenses related to services provided by NeuEon Inc. to the Company were $<span id="xdx_905_eus-gaap--CostsAndExpensesRelatedParty_c20220101__20221231__us-gaap--IncomeStatementLocationAxis__us-gaap--GeneralAndAdministrativeExpenseMember_zppCrKb21VRg" title="Related party expenses">153,750</span> and $<span id="xdx_907_eus-gaap--CostsAndExpensesRelatedParty_c20210101__20211231_zY90Gq4Qjp11" title="Related party expenses">293,750</span>, respectively. These expenses are included within the general and administrative expenses in the Company’s consolidated statements of operations.</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0.5in; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Following his resignation as Chief Executive Officer in May 2020, Mr. Mooney agreed to provide consulting services to the Company, as needed, at a fixed fee of $<span id="xdx_905_ecustom--ConsultingServicesFees_c20200501__20200531__srt--TitleOfIndividualAxis__custom--MooneyMember_z2Yp3OwBQSC3" title="Consulting services fee">4,500</span> per month on a month-to-month basis, plus reimbursement for travel expenses. On July 20, 2020, the Board, upon recommendation of the Compensation Committee, increased Mr. Mooney’s monthly fee for consulting services to $<span id="xdx_909_ecustom--ConsultingServicesFees_c20200720__20200720__srt--TitleOfIndividualAxis__custom--MooneyMember__srt--RangeAxis__srt--MaximumMember_zv18wI6MpnUl" title="Consulting services fee">10,000</span> from $<span id="xdx_90A_ecustom--ConsultingServicesFees_c20200720__20200720__srt--TitleOfIndividualAxis__custom--MooneyMember__srt--RangeAxis__srt--MinimumMember_zIyX7CtGc1h3" title="Consulting services fee">4,500</span> per month. For the years ended December 31, 2022 and 2021, the Company recognized $<span id="xdx_905_eus-gaap--CostsAndExpensesRelatedParty_c20220101__20221231__srt--TitleOfIndividualAxis__custom--MooneyMember__us-gaap--IncomeStatementLocationAxis__us-gaap--GeneralAndAdministrativeExpenseMember_zmvzgKLvuSul" title="Related party expenses">0</span> and $<span id="xdx_90F_eus-gaap--CostsAndExpensesRelatedParty_c20210101__20211231__srt--TitleOfIndividualAxis__custom--MooneyMember__us-gaap--IncomeStatementLocationAxis__us-gaap--GeneralAndAdministrativeExpenseMember_zQrxeKuvtrXc" title="Related party expenses">25,000</span> of expenses, which are included in the general and administrative expenses in the Company’s consolidated statement of operations.</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>AGEAGLE AERIAL SYSTEMS INC. AND SUBSIDIARIES </b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>NOTES TO CONSOLIDATED FINANCIAL STATEMENTS</b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>FOR THE YEARS ENDED DECEMBER 31, 2022 AND 2021</b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> 18371 33930 153750 293750 4500 10000 4500 0 25000 <p id="xdx_804_eus-gaap--IncomeTaxDisclosureTextBlock_zkSQDb8whfS8" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Note 16 – <span id="xdx_82C_z8KqMiRWDsh4">Income Taxes</span></b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0.5in; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Prior to April 15, 2015, AgEagle Aerial Inc. was treated as a disregarded entity for income tax purposes. Income taxes, if any, were the responsibility of the sole member. Effective April 22, 2015, the Company elected to be classified as a corporation for income tax purposes. On March 26, 2018, the Company’s predecessor company, EnerJex Resources, Inc. (“EnerJex”), consummated the transactions contemplated by the Agreement and Plan of Merger (the “Merger Agreement”), dated October 19, 2017, pursuant to which AgEagle Merger Sub, Inc., a wholly-owned subsidiary of EnerJex, merged with and into AgEagle Aerial Systems Inc., a then privately held company (“AgEagle Sub”), with AgEagle Sub surviving as a wholly-owned subsidiary of EnerJex (the “Merger”). In connection with the Merger, EnerJex changed its name to AgEagle Aerial Systems Inc. AgEagle Sub changed its name initially to “Eagle Aerial, Inc. and then to” AgEagle Aerial, Inc. Following the Merger, AgEagle Aerial Inc. became a wholly owned subsidiary of AgEagle Aerial Systems, Inc., and the group files a consolidated U.S. federal income tax return as well as income tax returns in various states.</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0.5in; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">As of December 31, 2022 and 2021, the total of all net deferred tax assets was $<span id="xdx_902_eus-gaap--DeferredTaxAssetsGross_iI_c20221231_z6CumBv5rGMj" title="Total deferred tax assets">11,170,665</span> and $<span id="xdx_901_eus-gaap--DeferredTaxAssetsGross_iI_c20211231_zfTxx4Ompywd" title="Total deferred tax assets">8,820,453</span>, respectively. The amount of and ultimate realization of the benefits from the deferred tax assets for income tax purposes is dependent, in part, upon the tax laws in effect, the Company’s future earnings, and other future events, the effects of which cannot be determined. Because of the uncertainty surrounding the realization of the deferred tax assets the Company has established a valuation allowance of $<span id="xdx_900_eus-gaap--DeferredTaxAssetsValuationAllowance_iI_c20221231_za6yIUWqdOsb" title="Deferred tax assets valuation allowance">11,170,665</span> and $<span id="xdx_90D_eus-gaap--DeferredTaxAssetsValuationAllowance_iI_c20211231_zXFFUpRQrD7c" title="Deferred tax assets valuation allowance">8,820,453 </span>as of December 31, 2022 and 2021, respectively. The change in the valuation allowance during the years ended December 31, 2022 and 2021 was $<span id="xdx_90D_eus-gaap--ValuationAllowanceDeferredTaxAssetChangeInAmount_c20220101__20221231_z5MAyNQe3jy9" title="Change in the valuation allowance">2,350,212</span> and $<span id="xdx_909_eus-gaap--ValuationAllowanceDeferredTaxAssetChangeInAmount_c20210101__20211231_zE8mN1Ymx2Ed" title="Change in the valuation allowance">5,542,986</span>, respectively.</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0.5in; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">On March 27, 2020, the CARES Act was enacted in response to the COVID-19 pandemic. The CARES Act, among other things, provides for an acceleration of alternative minimum tax credit refunds, the deferral of certain employer payroll taxes, the availability of an employee retention credit, and expands the availability of net operating loss usage. In addition, other governments in state and local markets in which we operate also enacted certain relief measures.</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0.5in; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">On December 27, 2020, the Consolidations Appropriations Act, 2021 (“CAA”) was signed into law and included in the government appropriations and additional economic stimulus. The CAA enhances and expands certain provisions of the CARES Act. The CAA modifies the tax deductibility of expenses relating to the PPP loan forgiveness, Employee Retention Credit eligibility and extends other CARES Act provisions. We continue to monitor new and updated legislation, however the provisions enacted have not had a material impact on our consolidated financial statements.</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0.5in; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">As of December 31, 2022, the Company has a federal and state net operating loss carry forward of approximately $<span id="xdx_900_eus-gaap--OperatingLossCarryforwards_iI_c20221231_zKwwX3wZCA" title="Net operating loss carry forward">38,733,732</span> and $<span id="xdx_906_eus-gaap--OperatingLossCarryforwards_iI_c20211231_zqgStAfKEXS" title="Net operating loss carry forward">17,975,553</span>, respectively. Of those balances, the Company has $<span id="xdx_904_eus-gaap--OperatingIncomeLoss_c20220101__20221231__us-gaap--IncomeTaxAuthorityAxis__us-gaap--DomesticCountryMember_zAfxiEpR852j" title="Operating income loss">7,661,107 </span>of federal net operating losses <span id="xdx_90A_ecustom--OperatingIncomeLossExpirationDescription_c20220101__20221231__us-gaap--IncomeTaxAuthorityAxis__us-gaap--DomesticCountryMember_zFEpQfnyAY02" title="Operating income loss, expiration description">expiring in 2035-2037 and the remaining amounts have no expiration</span>. The Company has a foreign net operating loss carry forwards of $<span id="xdx_90F_eus-gaap--OperatingIncomeLoss_c20220101__20221231__us-gaap--IncomeTaxAuthorityAxis__us-gaap--ForeignCountryMember_zCcVUWTF1rkh" title="Operating income loss">11,428,419</span> which <span id="xdx_90D_ecustom--OperatingIncomeLossExpirationDescription_c20220101__20221231__us-gaap--IncomeTaxAuthorityAxis__us-gaap--ForeignCountryMember_zxJS25asuJUg" title="Operating income loss, expiration description">expire in 2028-2029</span>. The Company has state net operating carry forwards of $<span id="xdx_90C_eus-gaap--OperatingIncomeLoss_c20220101__20221231__us-gaap--IncomeTaxAuthorityAxis__us-gaap--StateAndLocalJurisdictionMember_zW682fENPMlc" title="Operating income loss">13,113,999 </span>which <span id="xdx_90C_ecustom--OperatingIncomeLossExpirationDescription_c20220101__20221231__us-gaap--IncomeTaxAuthorityAxis__us-gaap--StateAndLocalJurisdictionMember_zWAYSwCcN6xa" title="Operating income loss, expiration description">expire between 2024-2041, and the remaining amounts have no expiration</span>.</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0.5in; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The timing and manner in which we can utilize our net operating loss carry forward and future income tax deductions in any year may be limited by provisions of the Internal Revenue Code regarding the change in ownership of corporations. Such limitations may have an impact on the ultimate realization of our carry forwards and future tax deductions. Section 382 of the Internal Revenue Code (“Section 382”) imposes limitations on a corporation’s ability to utilize net operating losses if it experiences an “ownership change.” In general terms, an ownership change may result from transactions increasing the ownership of certain stockholders in the stock of a corporation by more than 50 percentage points over a three-year period. Any unused annual limitation may be carried over to later years, and the amount of the limitation may under certain circumstances be increased by the built-in gains in assets held by us at the time of the change that are recognized in the five-year period after the change. The Company has not conducted a formal ownership change analysis as required under Section 382; however, we intend to do so if we anticipate recognizing tax benefits associated with the net operating loss carryforwards.</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0.5in; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>AGEAGLE AERIAL SYSTEMS INC. AND SUBSIDIARIES </b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>NOTES TO CONSOLIDATED FINANCIAL STATEMENTS</b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>FOR THE YEARS ENDED DECEMBER 31, 2022 AND 2021</b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Note 16 – Income Taxes-Continued</b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0.5in; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">As of December 31, 2022, the Company determined it is more likely than not that it will not realize our temporary deductible differences and net operating loss carryforwards, and as such, has provided a full valuation allowance on our net deferred tax asset.</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0.5in; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">During the years ended December 31, 2022 and 2021, the Company did not recognize any uncertain tax positions, interest or penalty expense related to income taxes. AgEagle files U.S. federal and state income tax returns, as required by law. The federal return generally has a three-year statute of limitations, and most states have a four-year statute of limitations; however, the taxing authorities can review the tax year in which the net operating loss was generated when the loss is utilized on a tax return. We currently do not have any open income tax audits. The Company is open to federal and state examination on the 2019 through 2021 income tax returns filed.</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p id="xdx_893_eus-gaap--ScheduleOfEffectiveIncomeTaxRateReconciliationTableTextBlock_zkjePzdM2I89" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0.5in; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">For the years ended December 31, 2022 and 2021, a reconciliation of income tax expense at the federal statutory rate to income tax expense at the Company’s effective rate is as follows:</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0.5in; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="display: none; font-family: Times New Roman, Times, Serif; font-size: 10pt"> <span id="xdx_8B2_zFMtfgj2uIb">Schedule of Reconciliation of Income Tax Expense</span></span></span></p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="display: none; vertical-align: bottom"> <td><span style="-sec-ix-redline: true"> </span></td><td style="font-weight: bold; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td colspan="2" id="xdx_499_20220101__20221231_zTDJgzRhvbv4" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"><span style="-sec-ix-redline: true">Amount</span></td><td style="padding-bottom: 1.5pt; font-weight: bold"><span style="-sec-ix-redline: true"> </span></td><td style="font-weight: bold; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"><span style="-sec-ix-redline: true">Rate</span></td><td style="padding-bottom: 1.5pt; font-weight: bold"><span style="-sec-ix-redline: true"> </span></td><td style="font-weight: bold; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td colspan="2" id="xdx_492_20210101__20211231_zVB6AOfdwMde" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"><span style="-sec-ix-redline: true">Rate</span></td><td style="padding-bottom: 1.5pt; font-weight: bold"><span style="-sec-ix-redline: true"> </span></td><td style="font-weight: bold; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"><span style="-sec-ix-redline: true">Amount</span></td><td style="padding-bottom: 1.5pt; font-weight: bold"><span style="-sec-ix-redline: true"> </span></td></tr> <tr style="vertical-align: bottom"> <td><span style="-sec-ix-redline: true"> </span></td><td style="font-weight: bold; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td colspan="6" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"><span style="-sec-ix-redline: true">2022</span></td><td style="padding-bottom: 1.5pt; font-weight: bold"><span style="-sec-ix-redline: true"> </span></td><td style="font-weight: bold; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td colspan="6" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"><span style="-sec-ix-redline: true">2021</span></td><td style="padding-bottom: 1.5pt; font-weight: bold"><span style="-sec-ix-redline: true"> </span></td></tr> <tr style="vertical-align: bottom"> <td><span style="-sec-ix-redline: true"> </span></td><td style="font-weight: bold; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"><span style="-sec-ix-redline: true">Amount</span></td><td style="padding-bottom: 1.5pt; font-weight: bold"><span style="-sec-ix-redline: true"> </span></td><td style="font-weight: bold; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"><span style="-sec-ix-redline: true">Rate</span></td><td style="padding-bottom: 1.5pt; font-weight: bold"><span style="-sec-ix-redline: true"> </span></td><td style="font-weight: bold; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"><span style="-sec-ix-redline: true">Rate</span></td><td style="padding-bottom: 1.5pt; font-weight: bold"><span style="-sec-ix-redline: true"> </span></td><td style="font-weight: bold; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"><span style="-sec-ix-redline: true">Amount</span></td><td style="padding-bottom: 1.5pt; font-weight: bold"><span style="-sec-ix-redline: true"> </span></td></tr> <tr id="xdx_403_eus-gaap--IncomeTaxReconciliationIncomeTaxExpenseBenefitAtFederalStatutoryIncomeTaxRate_iP1us-gaap--IncomeTaxExpenseBenefitContinuingOperationsIncomeTaxReconciliationAbstract_maITEBzfPZ_zUIYOqIUKtb4" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 42%; text-align: left"><span style="-sec-ix-redline: true">Computed tax at the expected statutory rate</span></td><td style="width: 2%"><span style="-sec-ix-redline: true"> </span></td> <td style="width: 1%; text-align: left"><span style="-sec-ix-redline: true">$</span></td><td style="width: 10%; text-align: right"><span style="-sec-ix-redline: true">(12,233,282</span></td><td style="width: 1%; text-align: left"><span style="-sec-ix-redline: true">)</span></td><td style="width: 2%"><span style="-sec-ix-redline: true"> </span></td> <td style="width: 1%; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="width: 10%; text-align: right"><span style="-sec-ix-redline: true"><span id="xdx_902_eus-gaap--EffectiveIncomeTaxRateReconciliationAtFederalStatutoryIncomeTaxRate_pid_dp_uPure_c20220101__20221231_z0VdEPESZxI5" title="Computed tax at the expected statutory rate, percent">21.00</span></span></td><td style="width: 2%; text-align: left"><span style="-sec-ix-redline: true">%</span></td><td style="width: 2%"><span style="-sec-ix-redline: true"> </span></td> <td style="width: 1%; text-align: left"><span style="-sec-ix-redline: true">$</span></td><td style="width: 10%; text-align: right"><span style="-sec-ix-redline: true">(6,337,648</span></td><td style="width: 1%; text-align: left"><span style="-sec-ix-redline: true">)</span></td><td style="width: 2%"><span style="-sec-ix-redline: true"> </span></td> <td style="width: 1%; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="width: 10%; text-align: right"><span style="-sec-ix-redline: true"><span id="xdx_909_eus-gaap--EffectiveIncomeTaxRateReconciliationAtFederalStatutoryIncomeTaxRate_pid_dp_uPure_c20210101__20211231_zClLpu3f3fuc" title="Computed tax at the expected statutory rate, percent">21.00</span></span></td><td style="width: 2%; text-align: left"><span style="-sec-ix-redline: true">%</span></td></tr> <tr id="xdx_408_eus-gaap--IncomeTaxReconciliationStateAndLocalIncomeTaxes_iP1us-gaap--IncomeTaxExpenseBenefitContinuingOperationsIncomeTaxReconciliationAbstract_maITEBzfPZ_zVwm51fcaTV6" style="vertical-align: bottom; background-color: White"> <td style="text-align: left"><span style="-sec-ix-redline: true">State and local income taxes, net of federal</span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true">(193,910</span></td><td style="text-align: left"><span style="-sec-ix-redline: true">)</span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true"><span id="xdx_901_eus-gaap--EffectiveIncomeTaxRateReconciliationStateAndLocalIncomeTaxes_pid_dp_uPure_c20220101__20221231_zArCDuAOg9ye" title="State and local income taxes, percent">0.33</span></span></td><td style="text-align: left"><span style="-sec-ix-redline: true">%</span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true">(249,537</span></td><td style="text-align: left"><span style="-sec-ix-redline: true">)</span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true"><span id="xdx_900_eus-gaap--EffectiveIncomeTaxRateReconciliationStateAndLocalIncomeTaxes_pid_dp_uPure_c20210101__20211231_zxk3JH2g3MR3" title="Effective income tax rate reconciliation, state and local income taxes, percent">0.83</span></span></td><td style="text-align: left"><span style="-sec-ix-redline: true">%</span></td></tr> <tr id="xdx_40C_ecustom--IncomeTaxReconciliationPermanentDifferences_iP1us-gaap--IncomeTaxExpenseBenefitContinuingOperationsIncomeTaxReconciliationAbstract_msITEBzfPZ_zx26PFEHZumf" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left"><span style="-sec-ix-redline: true">Permanent differences</span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true">8,892,114</span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true"><span id="xdx_90A_ecustom--EffectiveIncomeTaxRateReconciliationPermanentDifferencesPercent_pid_dp_c20220101__20221231_zRh7WEkWDcH1" title="Permanent differences, percent">(15.26</span></span></td><td style="text-align: left"><span style="-sec-ix-redline: true">)%</span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true">1,821,323</span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true"><span id="xdx_906_ecustom--EffectiveIncomeTaxRateReconciliationPermanentDifferencesPercent_pid_dp_uPure_c20210101__20211231_zmQloBrM6iF9" title="Permanent differences, percent">(6.04</span></span></td><td style="text-align: left"><span style="-sec-ix-redline: true">)%</span></td></tr> <tr id="xdx_40D_eus-gaap--IncomeTaxReconciliationOtherAdjustments_iP1us-gaap--IncomeTaxExpenseBenefitContinuingOperationsIncomeTaxReconciliationAbstract_maITEBzfPZ_z2eMglawDxd5" style="vertical-align: bottom; background-color: White"> <td style="text-align: left"><span style="-sec-ix-redline: true">Other adjustments</span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true">(57,579</span></td><td style="text-align: left"><span style="-sec-ix-redline: true">)</span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true"><span id="xdx_904_eus-gaap--EffectiveIncomeTaxRateReconciliationOtherAdjustments_pid_dp_uPure_c20220101__20221231_zrX8JFxSqiGd" title="Other adjustments, percent">0.09</span></span></td><td style="text-align: left"><span style="-sec-ix-redline: true">%</span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true">409,229</span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true"><span id="xdx_90A_eus-gaap--EffectiveIncomeTaxRateReconciliationOtherAdjustments_pid_dp_uPure_c20210101__20211231_zPI9rBZMNdi" title="Other adjustments, percent">(1.36</span></span></td><td style="text-align: left"><span style="-sec-ix-redline: true">)%</span></td></tr> <tr id="xdx_404_eus-gaap--IncomeTaxReconciliationNondeductibleExpenseShareBasedCompensationCost_iP1us-gaap--IncomeTaxExpenseBenefitContinuingOperationsIncomeTaxReconciliationAbstract_pp0d_maITEBzfPZ_zJZtcWvOgva8" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left"><span style="-sec-ix-redline: true">Stock compensation</span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true">172,056</span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true"><span id="xdx_90B_eus-gaap--EffectiveIncomeTaxRateReconciliationNondeductibleExpenseShareBasedCompensationCost_pid_dp_uPure_c20220101__20221231_zhn94ozk1fZj" title="Stock compensation, percent">(0.30</span></span></td><td style="text-align: left"><span style="-sec-ix-redline: true">)%</span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true"><span style="-sec-ix-hidden: xdx2ixbrl4510">—</span></span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true"><span id="xdx_902_eus-gaap--WorkersCompensationDiscountPercent_dp_c20210101__20211231_zOAGMB9bBKTk" title="Stock compensation, percent"><span style="-sec-ix-hidden: xdx2ixbrl4514">—</span></span></span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> <tr id="xdx_409_ecustom--IncomeTaxReconciliationReturnToProvisionAdjustment_iP1us-gaap--IncomeTaxExpenseBenefitContinuingOperationsIncomeTaxReconciliationAbstract_msITEBzfPZ_zKWNxfpM6Wma" style="vertical-align: bottom; background-color: White"> <td style="text-align: left"><span style="-sec-ix-redline: true">Return to provision adjustment</span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true">369,793</span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true"><span id="xdx_904_ecustom--EffectiveIncomeTaxRateReconciliationReturnToProvisionAdjustment_pid_dp_uPure_c20220101__20221231_z6hwtEBumds" title="Return to provision adjustment, percent">(0.63</span></span></td><td style="text-align: left"><span style="-sec-ix-redline: true">)%</span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true">(11,518</span></td><td style="text-align: left"><span style="-sec-ix-redline: true">)</span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true"><span id="xdx_909_ecustom--EffectiveIncomeTaxRateReconciliationReturnToProvisionAdjustment_pid_dp_uPure_c20210101__20211231_zU0WRCodgpIk" title="Return to provision adjustment, percent">(0.04</span></span></td><td style="text-align: left"><span style="-sec-ix-redline: true">)%</span></td></tr> <tr id="xdx_40A_ecustom--IncomeTaxReconciliationPurchaseAccounting_iP1us-gaap--IncomeTaxExpenseBenefitContinuingOperationsIncomeTaxReconciliationAbstract_msITEBzfPZ_z1i3lMkcRU6f" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left"><span style="-sec-ix-redline: true">Purchase accounting</span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true"><span style="-sec-ix-hidden: xdx2ixbrl4523">—</span></span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true"><span id="xdx_904_ecustom--EffectiveIncomeTaxRateReconciliationPurchaseAccounting_iP3us-gaap--IncomeTaxExpenseBenefit_pid_dp_uPure_c20220101__20221231_zVpUUBJj7Ud5" title="Purchase accounting, percent"><span style="-sec-ix-hidden: xdx2ixbrl4526">-</span></span></span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true">(1,298,228</span></td><td style="text-align: left"><span style="-sec-ix-redline: true">)</span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true"><span id="xdx_907_ecustom--EffectiveIncomeTaxRateReconciliationPurchaseAccounting_pid_dp_uPure_c20210101__20211231_zOa2eSfo8k88" title="Purchase accounting, percent">4.30</span></span></td><td style="text-align: left"><span style="-sec-ix-redline: true">%</span></td></tr> <tr id="xdx_40F_eus-gaap--IncomeTaxReconciliationForeignIncomeTaxRateDifferential_iP1us-gaap--IncomeTaxExpenseBenefitContinuingOperationsIncomeTaxReconciliationAbstract_maITEBzfPZ_zRR0MqotM31g" style="vertical-align: bottom; background-color: White"> <td style="text-align: left"><span style="-sec-ix-redline: true">Foreign tax differential</span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true">700,596</span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true"><span id="xdx_901_eus-gaap--EffectiveIncomeTaxRateReconciliationForeignIncomeTaxRateDifferential_pid_dp_uPure_c20220101__20221231_zNpfWl1Bomki" title="Foreign tax differential, percent">(1.20</span></span></td><td style="text-align: left"><span style="-sec-ix-redline: true">)%</span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true">123,393</span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true"><span id="xdx_903_eus-gaap--EffectiveIncomeTaxRateReconciliationForeignIncomeTaxRateDifferential_pid_dp_uPure_c20210101__20211231_zqkgetiH4JIi" title="Foreign tax differential, percent">(0.41</span></span></td><td style="text-align: left"><span style="-sec-ix-redline: true">)%</span></td></tr> <tr id="xdx_403_eus-gaap--IncomeTaxReconciliationChangeInDeferredTaxAssetsValuationAllowance_iP1us-gaap--IncomeTaxExpenseBenefitContinuingOperationsIncomeTaxReconciliationAbstract_maITEBzfPZ_zB8PsUcxy7mj" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true">Change in valuation allowance</span></td><td style="padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 1.5pt solid; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="border-bottom: Black 1.5pt solid; text-align: right"><span style="-sec-ix-redline: true">2,350,212</span></td><td style="padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 1.5pt solid; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="border-bottom: Black 1.5pt solid; text-align: right"><span style="-sec-ix-redline: true"><span id="xdx_906_eus-gaap--EffectiveIncomeTaxRateReconciliationChangeInDeferredTaxAssetsValuationAllowance_pid_dp_uPure_c20220101__20221231_zaDRJ8Tm3K04" title="Change in valuation allowance, percent">(4.03</span></span></td><td style="padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true">)%</span></td><td style="padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 1.5pt solid; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="border-bottom: Black 1.5pt solid; text-align: right"><span style="-sec-ix-redline: true">5,542,986</span></td><td style="padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 1.5pt solid; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="border-bottom: Black 1.5pt solid; text-align: right"><span style="-sec-ix-redline: true"><span id="xdx_908_eus-gaap--EffectiveIncomeTaxRateReconciliationChangeInDeferredTaxAssetsValuationAllowance_pid_dp_uPure_c20210101__20211231_zEfmLhjpf5e5" title="Change in valuation allowance, percent">(18.37</span></span></td><td style="padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true">)%</span></td></tr> <tr id="xdx_403_eus-gaap--IncomeTaxExpenseBenefit_iTP1us-gaap--IncomeTaxExpenseBenefitContinuingOperationsIncomeTaxReconciliationAbstract_mtITEBzfPZ_zuTwnaT9WA0f" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 2.5pt"><span style="-sec-ix-redline: true">Income tax expense (benefit)</span></td><td style="padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 2.5pt double; text-align: left"><span style="-sec-ix-redline: true">$</span></td><td style="border-bottom: Black 2.5pt double; text-align: right"><span style="-sec-ix-redline: true"><span style="-sec-ix-hidden: xdx2ixbrl4544">—</span></span></td><td style="padding-bottom: 2.5pt; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 2.5pt double; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="border-bottom: Black 2.5pt double; text-align: right"><span style="-sec-ix-redline: true"><span id="xdx_90F_eus-gaap--EffectiveIncomeTaxRateContinuingOperations_pid_dp_uPure_c20220101__20221231_zXGyKRBUXOPe" title="Income tax benefit, percent">0.00</span></span></td><td style="padding-bottom: 2.5pt; text-align: left"><span style="-sec-ix-redline: true">%</span></td><td style="padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 2.5pt double; text-align: left"><span style="-sec-ix-redline: true">$</span></td><td style="border-bottom: Black 2.5pt double; text-align: right"><span style="-sec-ix-redline: true"><span style="-sec-ix-hidden: xdx2ixbrl4545">—</span></span></td><td style="padding-bottom: 2.5pt; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 2.5pt double; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="border-bottom: Black 2.5pt double; text-align: right"><span style="-sec-ix-redline: true"><span id="xdx_90A_eus-gaap--EffectiveIncomeTaxRateContinuingOperations_pid_dp_uPure_c20210101__20211231_zqiPJo4gNJJ" title="Income tax benefit, percent">0.00</span></span></td><td style="padding-bottom: 2.5pt; text-align: left"><span style="-sec-ix-redline: true">%</span></td></tr> </table> <p id="xdx_8A4_zMnYN6zWGRu6" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p id="xdx_898_eus-gaap--ScheduleOfDeferredTaxAssetsAndLiabilitiesTableTextBlock_zOEUzugxiND4" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0.5in; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">As of December 31, 2022 and 2021, the temporary differences, tax credits and carryforwards that gave rise to the following deferred tax assets (liabilities):</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0.5in; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="display: none; font-family: Times New Roman, Times, Serif; font-size: 10pt"> <span id="xdx_8B3_zCeWbkyqaG0a">Schedule of Deferred Tax Assets and Carryforwards</span></span></span></p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td><span style="-sec-ix-redline: true"> </span></td><td style="font-weight: bold; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td colspan="2" id="xdx_493_20221231_zKmXF4Cvxbma" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"><span style="-sec-ix-redline: true">2022</span></td><td style="padding-bottom: 1.5pt; font-weight: bold"><span style="-sec-ix-redline: true"> </span></td><td style="font-weight: bold; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td colspan="2" id="xdx_49B_20211231_zFn0H6g7j8Lh" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"><span style="-sec-ix-redline: true">2021</span></td><td style="padding-bottom: 1.5pt; font-weight: bold"><span style="-sec-ix-redline: true"> </span></td></tr> <tr id="xdx_406_eus-gaap--DeferredTaxAssetsPropertyPlantAndEquipment_iNI_di_maDTAGzTDe_zSfQ4XNgI981" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 60%; text-align: left"><span style="-sec-ix-redline: true">Property and equipment</span></td><td style="width: 2%"><span style="-sec-ix-redline: true"> </span></td> <td style="width: 1%; text-align: left"><span style="-sec-ix-redline: true">$</span></td><td style="width: 16%; text-align: right"><span style="-sec-ix-redline: true">(100,019</span></td><td style="width: 1%; text-align: left"><span style="-sec-ix-redline: true">)</span></td><td style="width: 2%"><span style="-sec-ix-redline: true"> </span></td> <td style="width: 1%; text-align: left"><span style="-sec-ix-redline: true">$</span></td><td style="width: 16%; text-align: right"><span style="-sec-ix-redline: true">(75,342</span></td><td style="width: 1%; text-align: left"><span style="-sec-ix-redline: true">)</span></td></tr> <tr id="xdx_40C_ecustom--DeferredTaxAssetsOtherCurrentLiabilities_iI_maDTAGzTDe_zxog25EMf364" style="vertical-align: bottom; background-color: White"> <td style="text-align: left"><span style="-sec-ix-redline: true">Other current liabilities</span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true"><span style="-sec-ix-hidden: xdx2ixbrl4556">-</span></span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true">28,284</span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> <tr id="xdx_403_eus-gaap--DeferredTaxAssetsGoodwillAndIntangibleAssets_iI_maDTAGzTDe_zF5C5gtMipE3" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left"><span style="-sec-ix-redline: true">Intangible assets</span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true">(1,036,649</span></td><td style="text-align: left"><span style="-sec-ix-redline: true">)</span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true">(1,399,267</span></td><td style="text-align: left"><span style="-sec-ix-redline: true">)</span></td></tr> <tr id="xdx_407_eus-gaap--DeferredTaxAssetsTaxDeferredExpenseCompensationAndBenefitsShareBasedCompensationCost_iI_maDTAGzTDe_z6Bq3MQeRqFh" style="vertical-align: bottom; background-color: White"> <td style="text-align: left"><span style="-sec-ix-redline: true">Equity compensation</span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true">1,001,945</span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true">742,175</span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> <tr id="xdx_405_ecustom--DeferredTaxAssetsOtherAccruedExpenses_iI_maDTAGzTDe_zjKZFgqvPGq4" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left"><span style="-sec-ix-redline: true">Other accrued expenses</span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true">758,951</span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true">237,508</span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> <tr id="xdx_409_eus-gaap--DeferredTaxAssetsOperatingLossCarryforwards_iI_maDTAGzTDe_zhQ0ULQyZMek" style="vertical-align: bottom; background-color: White"> <td style="text-align: left"><span style="-sec-ix-redline: true">Net operating loss carry forward</span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true">8,820,107</span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true">8,900,739</span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> <tr id="xdx_40D_eus-gaap--DeferredTaxAssetsTaxCreditCarryforwards_iI_maDTAGzTDe_zSsdB7MbRdIb" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true">Tax credits</span></td><td style="padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 1.5pt solid; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="border-bottom: Black 1.5pt solid; text-align: right"><span style="-sec-ix-redline: true">1,726,330</span></td><td style="padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 1.5pt solid; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="border-bottom: Black 1.5pt solid; text-align: right"><span style="-sec-ix-redline: true">386,356</span></td><td style="padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> <tr id="xdx_400_eus-gaap--DeferredTaxAssetsGross_iTI_mtDTAGzTDe_maDTANzchY_z1C2ssatpul4" style="vertical-align: bottom; background-color: White"> <td style="text-align: left"><span style="-sec-ix-redline: true">Total deferred tax assets</span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true">11,170,665</span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true">8,820,453</span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> <tr id="xdx_40A_eus-gaap--DeferredTaxAssetsValuationAllowance_iNI_di_msDTANzchY_zUMnXSBqQnml" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true">Valuation allowance</span></td><td style="padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 1.5pt solid; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="border-bottom: Black 1.5pt solid; text-align: right"><span style="-sec-ix-redline: true">(11,170,665</span></td><td style="padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true">)</span></td><td style="padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 1.5pt solid; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="border-bottom: Black 1.5pt solid; text-align: right"><span style="-sec-ix-redline: true">(8,820,453</span></td><td style="padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true">)</span></td></tr> <tr id="xdx_401_eus-gaap--DeferredTaxAssetsNet_iTI_mtDTANzchY_zh3ZZdsePnF1" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 2.5pt"><span style="-sec-ix-redline: true">Net deferred tax assets</span></td><td style="padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 2.5pt double; text-align: left"><span style="-sec-ix-redline: true">$</span></td><td style="border-bottom: Black 2.5pt double; text-align: right"><span style="-sec-ix-redline: true"><span style="-sec-ix-hidden: xdx2ixbrl4580">—</span></span></td><td style="padding-bottom: 2.5pt; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 2.5pt double; text-align: left"><span style="-sec-ix-redline: true">$</span></td><td style="border-bottom: Black 2.5pt double; text-align: right"><span style="-sec-ix-redline: true"><span style="-sec-ix-hidden: xdx2ixbrl4581">—</span></span></td><td style="padding-bottom: 2.5pt; text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> </table> <p id="xdx_8A0_z0jrd4quXgwj" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>AGEAGLE AERIAL SYSTEMS INC. AND SUBSIDIARIES </b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>NOTES TO CONSOLIDATED FINANCIAL STATEMENTS</b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>FOR THE YEARS ENDED DECEMBER 31, 2022 AND 2021</b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Note 16 – Income Taxes-Continued</b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p id="xdx_89F_eus-gaap--ScheduleOfComponentsOfIncomeTaxExpenseBenefitTableTextBlock_z2RaRvkXMn0f" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0.5in; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The Company’s provision is primarily driven by the full valuation allowance in 2022 and 2021.</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0.5in; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="display: none; font-family: Times New Roman, Times, Serif; font-size: 10pt"><span id="xdx_8BC_zMrVbBel5El5">Schedule of Income Tax Valuation Allowance</span></span></span></p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td><span style="-sec-ix-redline: true"> </span></td><td style="font-weight: bold; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td colspan="2" id="xdx_49E_20220101__20221231_zHboSarGxgxe" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"><span style="-sec-ix-redline: true">2022</span></td><td style="padding-bottom: 1.5pt; font-weight: bold"><span style="-sec-ix-redline: true"> </span></td><td style="font-weight: bold; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td colspan="2" id="xdx_492_20210101__20211231_ztBQ4BmJ2949" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"><span style="-sec-ix-redline: true">2021</span></td><td style="padding-bottom: 1.5pt; font-weight: bold"><span style="-sec-ix-redline: true"> </span></td></tr> <tr id="xdx_40D_eus-gaap--CurrentFederalStateAndLocalTaxExpenseBenefitAbstract_iB_zVkUUIWUK1Y8" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td><span style="-sec-ix-redline: true">Current</span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> <tr id="xdx_408_eus-gaap--CurrentFederalTaxExpenseBenefit_maCITEBzdAH_zWnDRzJjwQs9" style="vertical-align: bottom; background-color: White"> <td style="text-align: left"><span style="-sec-ix-redline: true">U.S. Federal</span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true">$</span></td><td style="text-align: right"><span style="-sec-ix-redline: true"><span style="-sec-ix-hidden: xdx2ixbrl4588">—</span></span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true">$</span></td><td style="text-align: right"><span style="-sec-ix-redline: true"><span style="-sec-ix-hidden: xdx2ixbrl4589">—</span></span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> <tr id="xdx_409_eus-gaap--CurrentStateAndLocalTaxExpenseBenefit_maCITEBzdAH_ztOnRGrcjygb" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 60%; text-align: left"><span style="-sec-ix-redline: true">U.S. State</span></td><td style="width: 2%"><span style="-sec-ix-redline: true"> </span></td> <td style="width: 1%; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="width: 16%; text-align: right"><span style="-sec-ix-redline: true">5,750</span></td><td style="width: 1%; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="width: 2%"><span style="-sec-ix-redline: true"> </span></td> <td style="width: 1%; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="width: 16%; text-align: right"><span style="-sec-ix-redline: true"><span style="-sec-ix-hidden: xdx2ixbrl4592">—</span></span></td><td style="width: 1%; text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> <tr id="xdx_40A_eus-gaap--CurrentForeignTaxExpenseBenefit_maCITEBzdAH_z5l3x04UW5O6" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true">U.S. Foreign</span></td><td style="padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 1.5pt solid; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="border-bottom: Black 1.5pt solid; text-align: right"><span style="-sec-ix-redline: true"><span style="-sec-ix-hidden: xdx2ixbrl4594">—</span></span></td><td style="padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 1.5pt solid; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="border-bottom: Black 1.5pt solid; text-align: right"><span style="-sec-ix-redline: true"><span style="-sec-ix-hidden: xdx2ixbrl4595">—</span></span></td><td style="padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> <tr id="xdx_404_eus-gaap--CurrentIncomeTaxExpenseBenefit_iT_mtCITEBzdAH_maPFOLzpdz_zmJXMfeUrs8k" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-left: 10pt; text-align: left"><span style="-sec-ix-redline: true">Total current provision</span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true">5,750</span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true"><span style="-sec-ix-hidden: xdx2ixbrl4598">—</span></span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> <tr id="xdx_40A_eus-gaap--DeferredFederalStateAndLocalTaxExpenseBenefitAbstract_iB_zeUfG5lm133g" style="vertical-align: bottom; background-color: White"> <td><span style="-sec-ix-redline: true">Deferred</span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true">—</span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true">—</span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> <tr id="xdx_40C_eus-gaap--DeferredFederalIncomeTaxExpenseBenefit_maDITEBzwBz_zfRNnRvI2eV3" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true">U.S. Federal</span></td><td style="padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 1.5pt solid; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="border-bottom: Black 1.5pt solid; text-align: right"><span style="-sec-ix-redline: true"><span style="-sec-ix-hidden: xdx2ixbrl4603">—</span></span></td><td style="padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 1.5pt solid; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="border-bottom: Black 1.5pt solid; text-align: right"><span style="-sec-ix-redline: true"><span style="-sec-ix-hidden: xdx2ixbrl4604">—</span></span></td><td style="padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> <tr id="xdx_40E_eus-gaap--DeferredStateAndLocalIncomeTaxExpenseBenefit_maDITEBzwBz_zs2egaUvY9ph" style="vertical-align: bottom; background-color: White"> <td style="text-align: left"><span style="-sec-ix-redline: true">U.S. State</span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true"><span style="-sec-ix-hidden: xdx2ixbrl4606">—</span></span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true"><span style="-sec-ix-hidden: xdx2ixbrl4607">—</span></span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> <tr id="xdx_400_eus-gaap--DeferredForeignIncomeTaxExpenseBenefit_maDITEBzwBz_zso25Luoh32c" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left"><span style="-sec-ix-redline: true">U.S. Foreign</span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true"><span style="-sec-ix-hidden: xdx2ixbrl4609">—</span></span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true"><span style="-sec-ix-hidden: xdx2ixbrl4610">—</span></span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> <tr id="xdx_40B_eus-gaap--DeferredIncomeTaxExpenseBenefit_iT_mtDITEBzwBz_maPFOLzpdz_ztAmRabJ8xR3" style="vertical-align: bottom; background-color: White"> <td style="text-align: left"><span style="-sec-ix-redline: true">Total deferred benefit</span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true"><span style="-sec-ix-hidden: xdx2ixbrl4612">—</span></span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true"><span style="-sec-ix-hidden: xdx2ixbrl4613">—</span></span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> <tr id="xdx_400_ecustom--ChangeInDeferredTaxAssetsValuationAllowance_maPFOLzpdz_z06EeYra2DCl" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-left: 10pt; text-align: left; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true">Change in valuation allowance</span></td><td style="padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 1.5pt solid; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="border-bottom: Black 1.5pt solid; text-align: right"><span style="-sec-ix-redline: true"><span style="-sec-ix-hidden: xdx2ixbrl4615">—</span></span></td><td style="padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 1.5pt solid; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="border-bottom: Black 1.5pt solid; text-align: right"><span style="-sec-ix-redline: true"><span style="-sec-ix-hidden: xdx2ixbrl4616">—</span></span></td><td style="padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> <tr id="xdx_402_eus-gaap--ProvisionForOtherLosses_iT_mtPFOLzpdz_zTeMSpr3c4wa" style="vertical-align: bottom; background-color: White"> <td style="padding-left: 10pt; text-align: left; padding-bottom: 2.5pt"><span style="-sec-ix-redline: true">Total provision for income taxes</span></td><td style="padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 2.5pt double; text-align: left"><span style="-sec-ix-redline: true">$</span></td><td style="border-bottom: Black 2.5pt double; text-align: right"><span style="-sec-ix-redline: true">5,750</span></td><td style="padding-bottom: 2.5pt; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 2.5pt double; text-align: left"><span style="-sec-ix-redline: true">$</span></td><td style="border-bottom: Black 2.5pt double; text-align: right"><span style="-sec-ix-redline: true"><span style="-sec-ix-hidden: xdx2ixbrl4619">—</span></span></td><td style="padding-bottom: 2.5pt; text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> </table> <p id="xdx_8AC_zhS5fpOnFu8e" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p id="xdx_89F_eus-gaap--ScheduleOfIncomeBeforeIncomeTaxDomesticAndForeignTableTextBlock_zaqwHJM3XtB1" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0.5in; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The Company’s income (loss) before provision for incomes taxes consisted of the following amounts:</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0.5in; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="display: none; font-family: Times New Roman, Times, Serif; font-size: 10pt"> <span id="xdx_8B0_zzqAYee7wFq8">Schedule of Provision for Incomes Taxes Consisted</span></span></span></p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td><span style="-sec-ix-redline: true"> </span></td><td style="font-weight: bold; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td colspan="6" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"><span style="-sec-ix-redline: true">For the Year ended December 31,</span></td><td style="padding-bottom: 1.5pt; font-weight: bold"><span style="-sec-ix-redline: true"> </span></td></tr> <tr style="vertical-align: bottom"> <td><span style="-sec-ix-redline: true"> </span></td><td style="font-weight: bold; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"><span style="-sec-ix-redline: true">2022</span></td><td style="padding-bottom: 1.5pt; font-weight: bold"><span style="-sec-ix-redline: true"> </span></td><td style="font-weight: bold; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"><span style="-sec-ix-redline: true">2021</span></td><td style="padding-bottom: 1.5pt; font-weight: bold"><span style="-sec-ix-redline: true"> </span></td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 60%; text-align: left"><span style="-sec-ix-redline: true">United States</span></td><td style="width: 2%"><span style="-sec-ix-redline: true"> </span></td> <td style="width: 1%; text-align: left"><span style="-sec-ix-redline: true">$</span></td><td id="xdx_985_eus-gaap--IncomeLossFromContinuingOperationsBeforeIncomeTaxesExtraordinaryItemsNoncontrollingInterest_c20220101__20221231__srt--StatementGeographicalAxis__country--US_zKr6z0ysBxi1" style="width: 16%; text-align: right"><span style="-sec-ix-redline: true">(48,536,722</span></td><td style="width: 1%; text-align: left"><span style="-sec-ix-redline: true">)</span></td><td style="width: 2%"><span style="-sec-ix-redline: true"> </span></td> <td style="width: 1%; text-align: left"><span style="-sec-ix-redline: true">$</span></td><td id="xdx_98C_eus-gaap--IncomeLossFromContinuingOperationsBeforeIncomeTaxesExtraordinaryItemsNoncontrollingInterest_c20210101__20211231__srt--StatementGeographicalAxis__country--US_zpubCbXkhLti" style="width: 16%; text-align: right"><span style="-sec-ix-redline: true">(28,467,858</span></td><td style="width: 1%; text-align: left"><span style="-sec-ix-redline: true">)</span></td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-bottom: 1.5pt"><span style="-sec-ix-redline: true">International</span></td><td style="padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 1.5pt solid; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td id="xdx_982_eus-gaap--IncomeLossFromContinuingOperationsBeforeIncomeTaxesExtraordinaryItemsNoncontrollingInterest_c20220101__20221231__srt--StatementGeographicalAxis__custom--InternationalMember_zpjsWhi0XjDb" style="border-bottom: Black 1.5pt solid; text-align: right"><span style="-sec-ix-redline: true">(9,717,001</span></td><td style="padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true">)</span></td><td style="padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 1.5pt solid; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td id="xdx_982_eus-gaap--IncomeLossFromContinuingOperationsBeforeIncomeTaxesExtraordinaryItemsNoncontrollingInterest_c20210101__20211231__srt--StatementGeographicalAxis__custom--InternationalMember_zxpqYtwjS4cc" style="border-bottom: Black 1.5pt solid; text-align: right"><span style="-sec-ix-redline: true">(1,640,822</span></td><td style="padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true">)</span></td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 2.5pt"><span style="-sec-ix-redline: true">Total net income (loss) before income taxes</span></td><td style="padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 2.5pt double; text-align: left"><span style="-sec-ix-redline: true">$</span></td><td id="xdx_989_eus-gaap--IncomeLossFromContinuingOperationsBeforeIncomeTaxesExtraordinaryItemsNoncontrollingInterest_c20220101__20221231_zlwMa9yQMLS1" style="border-bottom: Black 2.5pt double; text-align: right" title="Total net income (loss) before income taxes"><span style="-sec-ix-redline: true">(58,253,723</span></td><td style="padding-bottom: 2.5pt; text-align: left"><span style="-sec-ix-redline: true">)</span></td><td style="padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 2.5pt double; text-align: left"><span style="-sec-ix-redline: true">$</span></td><td id="xdx_98A_eus-gaap--IncomeLossFromContinuingOperationsBeforeIncomeTaxesExtraordinaryItemsNoncontrollingInterest_c20210101__20211231_zIhf9FbXIybk" style="border-bottom: Black 2.5pt double; text-align: right" title="Total net income (loss) before income taxes"><span style="-sec-ix-redline: true">(30,108,680</span></td><td style="padding-bottom: 2.5pt; text-align: left"><span style="-sec-ix-redline: true">)</span></td></tr> </table> <p id="xdx_8AE_zvDafcUrT20i" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>AGEAGLE AERIAL SYSTEMS INC. AND SUBSIDIARIES </b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>NOTES TO CONSOLIDATED FINANCIAL STATEMENTS</b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>FOR THE YEARS ENDED DECEMBER 31, 2022 AND 2021</b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> 11170665 8820453 11170665 8820453 2350212 5542986 38733732 17975553 7661107 expiring in 2035-2037 and the remaining amounts have no expiration 11428419 expire in 2028-2029 13113999 expire between 2024-2041, and the remaining amounts have no expiration <p id="xdx_893_eus-gaap--ScheduleOfEffectiveIncomeTaxRateReconciliationTableTextBlock_zkjePzdM2I89" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0.5in; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">For the years ended December 31, 2022 and 2021, a reconciliation of income tax expense at the federal statutory rate to income tax expense at the Company’s effective rate is as follows:</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0.5in; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="display: none; font-family: Times New Roman, Times, Serif; font-size: 10pt"> <span id="xdx_8B2_zFMtfgj2uIb">Schedule of Reconciliation of Income Tax Expense</span></span></span></p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="display: none; vertical-align: bottom"> <td><span style="-sec-ix-redline: true"> </span></td><td style="font-weight: bold; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td colspan="2" id="xdx_499_20220101__20221231_zTDJgzRhvbv4" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"><span style="-sec-ix-redline: true">Amount</span></td><td style="padding-bottom: 1.5pt; font-weight: bold"><span style="-sec-ix-redline: true"> </span></td><td style="font-weight: bold; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"><span style="-sec-ix-redline: true">Rate</span></td><td style="padding-bottom: 1.5pt; font-weight: bold"><span style="-sec-ix-redline: true"> </span></td><td style="font-weight: bold; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td colspan="2" id="xdx_492_20210101__20211231_zVB6AOfdwMde" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"><span style="-sec-ix-redline: true">Rate</span></td><td style="padding-bottom: 1.5pt; font-weight: bold"><span style="-sec-ix-redline: true"> </span></td><td style="font-weight: bold; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"><span style="-sec-ix-redline: true">Amount</span></td><td style="padding-bottom: 1.5pt; font-weight: bold"><span style="-sec-ix-redline: true"> </span></td></tr> <tr style="vertical-align: bottom"> <td><span style="-sec-ix-redline: true"> </span></td><td style="font-weight: bold; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td colspan="6" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"><span style="-sec-ix-redline: true">2022</span></td><td style="padding-bottom: 1.5pt; font-weight: bold"><span style="-sec-ix-redline: true"> </span></td><td style="font-weight: bold; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td colspan="6" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"><span style="-sec-ix-redline: true">2021</span></td><td style="padding-bottom: 1.5pt; font-weight: bold"><span style="-sec-ix-redline: true"> </span></td></tr> <tr style="vertical-align: bottom"> <td><span style="-sec-ix-redline: true"> </span></td><td style="font-weight: bold; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"><span style="-sec-ix-redline: true">Amount</span></td><td style="padding-bottom: 1.5pt; font-weight: bold"><span style="-sec-ix-redline: true"> </span></td><td style="font-weight: bold; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"><span style="-sec-ix-redline: true">Rate</span></td><td style="padding-bottom: 1.5pt; font-weight: bold"><span style="-sec-ix-redline: true"> </span></td><td style="font-weight: bold; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"><span style="-sec-ix-redline: true">Rate</span></td><td style="padding-bottom: 1.5pt; font-weight: bold"><span style="-sec-ix-redline: true"> </span></td><td style="font-weight: bold; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"><span style="-sec-ix-redline: true">Amount</span></td><td style="padding-bottom: 1.5pt; font-weight: bold"><span style="-sec-ix-redline: true"> </span></td></tr> <tr id="xdx_403_eus-gaap--IncomeTaxReconciliationIncomeTaxExpenseBenefitAtFederalStatutoryIncomeTaxRate_iP1us-gaap--IncomeTaxExpenseBenefitContinuingOperationsIncomeTaxReconciliationAbstract_maITEBzfPZ_zUIYOqIUKtb4" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 42%; text-align: left"><span style="-sec-ix-redline: true">Computed tax at the expected statutory rate</span></td><td style="width: 2%"><span style="-sec-ix-redline: true"> </span></td> <td style="width: 1%; text-align: left"><span style="-sec-ix-redline: true">$</span></td><td style="width: 10%; text-align: right"><span style="-sec-ix-redline: true">(12,233,282</span></td><td style="width: 1%; text-align: left"><span style="-sec-ix-redline: true">)</span></td><td style="width: 2%"><span style="-sec-ix-redline: true"> </span></td> <td style="width: 1%; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="width: 10%; text-align: right"><span style="-sec-ix-redline: true"><span id="xdx_902_eus-gaap--EffectiveIncomeTaxRateReconciliationAtFederalStatutoryIncomeTaxRate_pid_dp_uPure_c20220101__20221231_z0VdEPESZxI5" title="Computed tax at the expected statutory rate, percent">21.00</span></span></td><td style="width: 2%; text-align: left"><span style="-sec-ix-redline: true">%</span></td><td style="width: 2%"><span style="-sec-ix-redline: true"> </span></td> <td style="width: 1%; text-align: left"><span style="-sec-ix-redline: true">$</span></td><td style="width: 10%; text-align: right"><span style="-sec-ix-redline: true">(6,337,648</span></td><td style="width: 1%; text-align: left"><span style="-sec-ix-redline: true">)</span></td><td style="width: 2%"><span style="-sec-ix-redline: true"> </span></td> <td style="width: 1%; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="width: 10%; text-align: right"><span style="-sec-ix-redline: true"><span id="xdx_909_eus-gaap--EffectiveIncomeTaxRateReconciliationAtFederalStatutoryIncomeTaxRate_pid_dp_uPure_c20210101__20211231_zClLpu3f3fuc" title="Computed tax at the expected statutory rate, percent">21.00</span></span></td><td style="width: 2%; text-align: left"><span style="-sec-ix-redline: true">%</span></td></tr> <tr id="xdx_408_eus-gaap--IncomeTaxReconciliationStateAndLocalIncomeTaxes_iP1us-gaap--IncomeTaxExpenseBenefitContinuingOperationsIncomeTaxReconciliationAbstract_maITEBzfPZ_zVwm51fcaTV6" style="vertical-align: bottom; background-color: White"> <td style="text-align: left"><span style="-sec-ix-redline: true">State and local income taxes, net of federal</span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true">(193,910</span></td><td style="text-align: left"><span style="-sec-ix-redline: true">)</span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true"><span id="xdx_901_eus-gaap--EffectiveIncomeTaxRateReconciliationStateAndLocalIncomeTaxes_pid_dp_uPure_c20220101__20221231_zArCDuAOg9ye" title="State and local income taxes, percent">0.33</span></span></td><td style="text-align: left"><span style="-sec-ix-redline: true">%</span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true">(249,537</span></td><td style="text-align: left"><span style="-sec-ix-redline: true">)</span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true"><span id="xdx_900_eus-gaap--EffectiveIncomeTaxRateReconciliationStateAndLocalIncomeTaxes_pid_dp_uPure_c20210101__20211231_zxk3JH2g3MR3" title="Effective income tax rate reconciliation, state and local income taxes, percent">0.83</span></span></td><td style="text-align: left"><span style="-sec-ix-redline: true">%</span></td></tr> <tr id="xdx_40C_ecustom--IncomeTaxReconciliationPermanentDifferences_iP1us-gaap--IncomeTaxExpenseBenefitContinuingOperationsIncomeTaxReconciliationAbstract_msITEBzfPZ_zx26PFEHZumf" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left"><span style="-sec-ix-redline: true">Permanent differences</span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true">8,892,114</span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true"><span id="xdx_90A_ecustom--EffectiveIncomeTaxRateReconciliationPermanentDifferencesPercent_pid_dp_c20220101__20221231_zRh7WEkWDcH1" title="Permanent differences, percent">(15.26</span></span></td><td style="text-align: left"><span style="-sec-ix-redline: true">)%</span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true">1,821,323</span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true"><span id="xdx_906_ecustom--EffectiveIncomeTaxRateReconciliationPermanentDifferencesPercent_pid_dp_uPure_c20210101__20211231_zmQloBrM6iF9" title="Permanent differences, percent">(6.04</span></span></td><td style="text-align: left"><span style="-sec-ix-redline: true">)%</span></td></tr> <tr id="xdx_40D_eus-gaap--IncomeTaxReconciliationOtherAdjustments_iP1us-gaap--IncomeTaxExpenseBenefitContinuingOperationsIncomeTaxReconciliationAbstract_maITEBzfPZ_z2eMglawDxd5" style="vertical-align: bottom; background-color: White"> <td style="text-align: left"><span style="-sec-ix-redline: true">Other adjustments</span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true">(57,579</span></td><td style="text-align: left"><span style="-sec-ix-redline: true">)</span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true"><span id="xdx_904_eus-gaap--EffectiveIncomeTaxRateReconciliationOtherAdjustments_pid_dp_uPure_c20220101__20221231_zrX8JFxSqiGd" title="Other adjustments, percent">0.09</span></span></td><td style="text-align: left"><span style="-sec-ix-redline: true">%</span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true">409,229</span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true"><span id="xdx_90A_eus-gaap--EffectiveIncomeTaxRateReconciliationOtherAdjustments_pid_dp_uPure_c20210101__20211231_zPI9rBZMNdi" title="Other adjustments, percent">(1.36</span></span></td><td style="text-align: left"><span style="-sec-ix-redline: true">)%</span></td></tr> <tr id="xdx_404_eus-gaap--IncomeTaxReconciliationNondeductibleExpenseShareBasedCompensationCost_iP1us-gaap--IncomeTaxExpenseBenefitContinuingOperationsIncomeTaxReconciliationAbstract_pp0d_maITEBzfPZ_zJZtcWvOgva8" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left"><span style="-sec-ix-redline: true">Stock compensation</span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true">172,056</span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true"><span id="xdx_90B_eus-gaap--EffectiveIncomeTaxRateReconciliationNondeductibleExpenseShareBasedCompensationCost_pid_dp_uPure_c20220101__20221231_zhn94ozk1fZj" title="Stock compensation, percent">(0.30</span></span></td><td style="text-align: left"><span style="-sec-ix-redline: true">)%</span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true"><span style="-sec-ix-hidden: xdx2ixbrl4510">—</span></span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true"><span id="xdx_902_eus-gaap--WorkersCompensationDiscountPercent_dp_c20210101__20211231_zOAGMB9bBKTk" title="Stock compensation, percent"><span style="-sec-ix-hidden: xdx2ixbrl4514">—</span></span></span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> <tr id="xdx_409_ecustom--IncomeTaxReconciliationReturnToProvisionAdjustment_iP1us-gaap--IncomeTaxExpenseBenefitContinuingOperationsIncomeTaxReconciliationAbstract_msITEBzfPZ_zKWNxfpM6Wma" style="vertical-align: bottom; background-color: White"> <td style="text-align: left"><span style="-sec-ix-redline: true">Return to provision adjustment</span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true">369,793</span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true"><span id="xdx_904_ecustom--EffectiveIncomeTaxRateReconciliationReturnToProvisionAdjustment_pid_dp_uPure_c20220101__20221231_z6hwtEBumds" title="Return to provision adjustment, percent">(0.63</span></span></td><td style="text-align: left"><span style="-sec-ix-redline: true">)%</span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true">(11,518</span></td><td style="text-align: left"><span style="-sec-ix-redline: true">)</span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true"><span id="xdx_909_ecustom--EffectiveIncomeTaxRateReconciliationReturnToProvisionAdjustment_pid_dp_uPure_c20210101__20211231_zU0WRCodgpIk" title="Return to provision adjustment, percent">(0.04</span></span></td><td style="text-align: left"><span style="-sec-ix-redline: true">)%</span></td></tr> <tr id="xdx_40A_ecustom--IncomeTaxReconciliationPurchaseAccounting_iP1us-gaap--IncomeTaxExpenseBenefitContinuingOperationsIncomeTaxReconciliationAbstract_msITEBzfPZ_z1i3lMkcRU6f" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left"><span style="-sec-ix-redline: true">Purchase accounting</span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true"><span style="-sec-ix-hidden: xdx2ixbrl4523">—</span></span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true"><span id="xdx_904_ecustom--EffectiveIncomeTaxRateReconciliationPurchaseAccounting_iP3us-gaap--IncomeTaxExpenseBenefit_pid_dp_uPure_c20220101__20221231_zVpUUBJj7Ud5" title="Purchase accounting, percent"><span style="-sec-ix-hidden: xdx2ixbrl4526">-</span></span></span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true">(1,298,228</span></td><td style="text-align: left"><span style="-sec-ix-redline: true">)</span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true"><span id="xdx_907_ecustom--EffectiveIncomeTaxRateReconciliationPurchaseAccounting_pid_dp_uPure_c20210101__20211231_zOa2eSfo8k88" title="Purchase accounting, percent">4.30</span></span></td><td style="text-align: left"><span style="-sec-ix-redline: true">%</span></td></tr> <tr id="xdx_40F_eus-gaap--IncomeTaxReconciliationForeignIncomeTaxRateDifferential_iP1us-gaap--IncomeTaxExpenseBenefitContinuingOperationsIncomeTaxReconciliationAbstract_maITEBzfPZ_zRR0MqotM31g" style="vertical-align: bottom; background-color: White"> <td style="text-align: left"><span style="-sec-ix-redline: true">Foreign tax differential</span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true">700,596</span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true"><span id="xdx_901_eus-gaap--EffectiveIncomeTaxRateReconciliationForeignIncomeTaxRateDifferential_pid_dp_uPure_c20220101__20221231_zNpfWl1Bomki" title="Foreign tax differential, percent">(1.20</span></span></td><td style="text-align: left"><span style="-sec-ix-redline: true">)%</span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true">123,393</span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true"><span id="xdx_903_eus-gaap--EffectiveIncomeTaxRateReconciliationForeignIncomeTaxRateDifferential_pid_dp_uPure_c20210101__20211231_zqkgetiH4JIi" title="Foreign tax differential, percent">(0.41</span></span></td><td style="text-align: left"><span style="-sec-ix-redline: true">)%</span></td></tr> <tr id="xdx_403_eus-gaap--IncomeTaxReconciliationChangeInDeferredTaxAssetsValuationAllowance_iP1us-gaap--IncomeTaxExpenseBenefitContinuingOperationsIncomeTaxReconciliationAbstract_maITEBzfPZ_zB8PsUcxy7mj" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true">Change in valuation allowance</span></td><td style="padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 1.5pt solid; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="border-bottom: Black 1.5pt solid; text-align: right"><span style="-sec-ix-redline: true">2,350,212</span></td><td style="padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 1.5pt solid; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="border-bottom: Black 1.5pt solid; text-align: right"><span style="-sec-ix-redline: true"><span id="xdx_906_eus-gaap--EffectiveIncomeTaxRateReconciliationChangeInDeferredTaxAssetsValuationAllowance_pid_dp_uPure_c20220101__20221231_zaDRJ8Tm3K04" title="Change in valuation allowance, percent">(4.03</span></span></td><td style="padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true">)%</span></td><td style="padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 1.5pt solid; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="border-bottom: Black 1.5pt solid; text-align: right"><span style="-sec-ix-redline: true">5,542,986</span></td><td style="padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 1.5pt solid; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="border-bottom: Black 1.5pt solid; text-align: right"><span style="-sec-ix-redline: true"><span id="xdx_908_eus-gaap--EffectiveIncomeTaxRateReconciliationChangeInDeferredTaxAssetsValuationAllowance_pid_dp_uPure_c20210101__20211231_zEfmLhjpf5e5" title="Change in valuation allowance, percent">(18.37</span></span></td><td style="padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true">)%</span></td></tr> <tr id="xdx_403_eus-gaap--IncomeTaxExpenseBenefit_iTP1us-gaap--IncomeTaxExpenseBenefitContinuingOperationsIncomeTaxReconciliationAbstract_mtITEBzfPZ_zuTwnaT9WA0f" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 2.5pt"><span style="-sec-ix-redline: true">Income tax expense (benefit)</span></td><td style="padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 2.5pt double; text-align: left"><span style="-sec-ix-redline: true">$</span></td><td style="border-bottom: Black 2.5pt double; text-align: right"><span style="-sec-ix-redline: true"><span style="-sec-ix-hidden: xdx2ixbrl4544">—</span></span></td><td style="padding-bottom: 2.5pt; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 2.5pt double; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="border-bottom: Black 2.5pt double; text-align: right"><span style="-sec-ix-redline: true"><span id="xdx_90F_eus-gaap--EffectiveIncomeTaxRateContinuingOperations_pid_dp_uPure_c20220101__20221231_zXGyKRBUXOPe" title="Income tax benefit, percent">0.00</span></span></td><td style="padding-bottom: 2.5pt; text-align: left"><span style="-sec-ix-redline: true">%</span></td><td style="padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 2.5pt double; text-align: left"><span style="-sec-ix-redline: true">$</span></td><td style="border-bottom: Black 2.5pt double; text-align: right"><span style="-sec-ix-redline: true"><span style="-sec-ix-hidden: xdx2ixbrl4545">—</span></span></td><td style="padding-bottom: 2.5pt; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 2.5pt double; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="border-bottom: Black 2.5pt double; text-align: right"><span style="-sec-ix-redline: true"><span id="xdx_90A_eus-gaap--EffectiveIncomeTaxRateContinuingOperations_pid_dp_uPure_c20210101__20211231_zqiPJo4gNJJ" title="Income tax benefit, percent">0.00</span></span></td><td style="padding-bottom: 2.5pt; text-align: left"><span style="-sec-ix-redline: true">%</span></td></tr> </table> -12233282 0.2100 -6337648 0.2100 -193910 0.0033 -249537 0.0083 8892114 -0.1526 1821323 -0.0604 -57579 0.0009 409229 -0.0136 172056 -0.0030 369793 -0.0063 -11518 -0.0004 -1298228 0.0430 700596 -0.0120 123393 -0.0041 2350212 -0.0403 5542986 -0.1837 0.0000 0.0000 <p id="xdx_898_eus-gaap--ScheduleOfDeferredTaxAssetsAndLiabilitiesTableTextBlock_zOEUzugxiND4" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0.5in; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">As of December 31, 2022 and 2021, the temporary differences, tax credits and carryforwards that gave rise to the following deferred tax assets (liabilities):</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0.5in; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="display: none; font-family: Times New Roman, Times, Serif; font-size: 10pt"> <span id="xdx_8B3_zCeWbkyqaG0a">Schedule of Deferred Tax Assets and Carryforwards</span></span></span></p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td><span style="-sec-ix-redline: true"> </span></td><td style="font-weight: bold; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td colspan="2" id="xdx_493_20221231_zKmXF4Cvxbma" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"><span style="-sec-ix-redline: true">2022</span></td><td style="padding-bottom: 1.5pt; font-weight: bold"><span style="-sec-ix-redline: true"> </span></td><td style="font-weight: bold; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td colspan="2" id="xdx_49B_20211231_zFn0H6g7j8Lh" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"><span style="-sec-ix-redline: true">2021</span></td><td style="padding-bottom: 1.5pt; font-weight: bold"><span style="-sec-ix-redline: true"> </span></td></tr> <tr id="xdx_406_eus-gaap--DeferredTaxAssetsPropertyPlantAndEquipment_iNI_di_maDTAGzTDe_zSfQ4XNgI981" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 60%; text-align: left"><span style="-sec-ix-redline: true">Property and equipment</span></td><td style="width: 2%"><span style="-sec-ix-redline: true"> </span></td> <td style="width: 1%; text-align: left"><span style="-sec-ix-redline: true">$</span></td><td style="width: 16%; text-align: right"><span style="-sec-ix-redline: true">(100,019</span></td><td style="width: 1%; text-align: left"><span style="-sec-ix-redline: true">)</span></td><td style="width: 2%"><span style="-sec-ix-redline: true"> </span></td> <td style="width: 1%; text-align: left"><span style="-sec-ix-redline: true">$</span></td><td style="width: 16%; text-align: right"><span style="-sec-ix-redline: true">(75,342</span></td><td style="width: 1%; text-align: left"><span style="-sec-ix-redline: true">)</span></td></tr> <tr id="xdx_40C_ecustom--DeferredTaxAssetsOtherCurrentLiabilities_iI_maDTAGzTDe_zxog25EMf364" style="vertical-align: bottom; background-color: White"> <td style="text-align: left"><span style="-sec-ix-redline: true">Other current liabilities</span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true"><span style="-sec-ix-hidden: xdx2ixbrl4556">-</span></span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true">28,284</span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> <tr id="xdx_403_eus-gaap--DeferredTaxAssetsGoodwillAndIntangibleAssets_iI_maDTAGzTDe_zF5C5gtMipE3" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left"><span style="-sec-ix-redline: true">Intangible assets</span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true">(1,036,649</span></td><td style="text-align: left"><span style="-sec-ix-redline: true">)</span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true">(1,399,267</span></td><td style="text-align: left"><span style="-sec-ix-redline: true">)</span></td></tr> <tr id="xdx_407_eus-gaap--DeferredTaxAssetsTaxDeferredExpenseCompensationAndBenefitsShareBasedCompensationCost_iI_maDTAGzTDe_z6Bq3MQeRqFh" style="vertical-align: bottom; background-color: White"> <td style="text-align: left"><span style="-sec-ix-redline: true">Equity compensation</span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true">1,001,945</span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true">742,175</span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> <tr id="xdx_405_ecustom--DeferredTaxAssetsOtherAccruedExpenses_iI_maDTAGzTDe_zjKZFgqvPGq4" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left"><span style="-sec-ix-redline: true">Other accrued expenses</span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true">758,951</span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true">237,508</span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> <tr id="xdx_409_eus-gaap--DeferredTaxAssetsOperatingLossCarryforwards_iI_maDTAGzTDe_zhQ0ULQyZMek" style="vertical-align: bottom; background-color: White"> <td style="text-align: left"><span style="-sec-ix-redline: true">Net operating loss carry forward</span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true">8,820,107</span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true">8,900,739</span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> <tr id="xdx_40D_eus-gaap--DeferredTaxAssetsTaxCreditCarryforwards_iI_maDTAGzTDe_zSsdB7MbRdIb" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true">Tax credits</span></td><td style="padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 1.5pt solid; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="border-bottom: Black 1.5pt solid; text-align: right"><span style="-sec-ix-redline: true">1,726,330</span></td><td style="padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 1.5pt solid; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="border-bottom: Black 1.5pt solid; text-align: right"><span style="-sec-ix-redline: true">386,356</span></td><td style="padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> <tr id="xdx_400_eus-gaap--DeferredTaxAssetsGross_iTI_mtDTAGzTDe_maDTANzchY_z1C2ssatpul4" style="vertical-align: bottom; background-color: White"> <td style="text-align: left"><span style="-sec-ix-redline: true">Total deferred tax assets</span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true">11,170,665</span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true">8,820,453</span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> <tr id="xdx_40A_eus-gaap--DeferredTaxAssetsValuationAllowance_iNI_di_msDTANzchY_zUMnXSBqQnml" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true">Valuation allowance</span></td><td style="padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 1.5pt solid; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="border-bottom: Black 1.5pt solid; text-align: right"><span style="-sec-ix-redline: true">(11,170,665</span></td><td style="padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true">)</span></td><td style="padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 1.5pt solid; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="border-bottom: Black 1.5pt solid; text-align: right"><span style="-sec-ix-redline: true">(8,820,453</span></td><td style="padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true">)</span></td></tr> <tr id="xdx_401_eus-gaap--DeferredTaxAssetsNet_iTI_mtDTANzchY_zh3ZZdsePnF1" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 2.5pt"><span style="-sec-ix-redline: true">Net deferred tax assets</span></td><td style="padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 2.5pt double; text-align: left"><span style="-sec-ix-redline: true">$</span></td><td style="border-bottom: Black 2.5pt double; text-align: right"><span style="-sec-ix-redline: true"><span style="-sec-ix-hidden: xdx2ixbrl4580">—</span></span></td><td style="padding-bottom: 2.5pt; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 2.5pt double; text-align: left"><span style="-sec-ix-redline: true">$</span></td><td style="border-bottom: Black 2.5pt double; text-align: right"><span style="-sec-ix-redline: true"><span style="-sec-ix-hidden: xdx2ixbrl4581">—</span></span></td><td style="padding-bottom: 2.5pt; text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> </table> 100019 75342 28284 -1036649 -1399267 1001945 742175 758951 237508 8820107 8900739 1726330 386356 11170665 8820453 11170665 8820453 <p id="xdx_89F_eus-gaap--ScheduleOfComponentsOfIncomeTaxExpenseBenefitTableTextBlock_z2RaRvkXMn0f" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0.5in; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The Company’s provision is primarily driven by the full valuation allowance in 2022 and 2021.</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0.5in; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="display: none; font-family: Times New Roman, Times, Serif; font-size: 10pt"><span id="xdx_8BC_zMrVbBel5El5">Schedule of Income Tax Valuation Allowance</span></span></span></p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td><span style="-sec-ix-redline: true"> </span></td><td style="font-weight: bold; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td colspan="2" id="xdx_49E_20220101__20221231_zHboSarGxgxe" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"><span style="-sec-ix-redline: true">2022</span></td><td style="padding-bottom: 1.5pt; font-weight: bold"><span style="-sec-ix-redline: true"> </span></td><td style="font-weight: bold; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td colspan="2" id="xdx_492_20210101__20211231_ztBQ4BmJ2949" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"><span style="-sec-ix-redline: true">2021</span></td><td style="padding-bottom: 1.5pt; font-weight: bold"><span style="-sec-ix-redline: true"> </span></td></tr> <tr id="xdx_40D_eus-gaap--CurrentFederalStateAndLocalTaxExpenseBenefitAbstract_iB_zVkUUIWUK1Y8" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td><span style="-sec-ix-redline: true">Current</span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> <tr id="xdx_408_eus-gaap--CurrentFederalTaxExpenseBenefit_maCITEBzdAH_zWnDRzJjwQs9" style="vertical-align: bottom; background-color: White"> <td style="text-align: left"><span style="-sec-ix-redline: true">U.S. Federal</span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true">$</span></td><td style="text-align: right"><span style="-sec-ix-redline: true"><span style="-sec-ix-hidden: xdx2ixbrl4588">—</span></span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true">$</span></td><td style="text-align: right"><span style="-sec-ix-redline: true"><span style="-sec-ix-hidden: xdx2ixbrl4589">—</span></span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> <tr id="xdx_409_eus-gaap--CurrentStateAndLocalTaxExpenseBenefit_maCITEBzdAH_ztOnRGrcjygb" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 60%; text-align: left"><span style="-sec-ix-redline: true">U.S. State</span></td><td style="width: 2%"><span style="-sec-ix-redline: true"> </span></td> <td style="width: 1%; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="width: 16%; text-align: right"><span style="-sec-ix-redline: true">5,750</span></td><td style="width: 1%; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="width: 2%"><span style="-sec-ix-redline: true"> </span></td> <td style="width: 1%; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="width: 16%; text-align: right"><span style="-sec-ix-redline: true"><span style="-sec-ix-hidden: xdx2ixbrl4592">—</span></span></td><td style="width: 1%; text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> <tr id="xdx_40A_eus-gaap--CurrentForeignTaxExpenseBenefit_maCITEBzdAH_z5l3x04UW5O6" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true">U.S. Foreign</span></td><td style="padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 1.5pt solid; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="border-bottom: Black 1.5pt solid; text-align: right"><span style="-sec-ix-redline: true"><span style="-sec-ix-hidden: xdx2ixbrl4594">—</span></span></td><td style="padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 1.5pt solid; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="border-bottom: Black 1.5pt solid; text-align: right"><span style="-sec-ix-redline: true"><span style="-sec-ix-hidden: xdx2ixbrl4595">—</span></span></td><td style="padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> <tr id="xdx_404_eus-gaap--CurrentIncomeTaxExpenseBenefit_iT_mtCITEBzdAH_maPFOLzpdz_zmJXMfeUrs8k" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-left: 10pt; text-align: left"><span style="-sec-ix-redline: true">Total current provision</span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true">5,750</span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true"><span style="-sec-ix-hidden: xdx2ixbrl4598">—</span></span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> <tr id="xdx_40A_eus-gaap--DeferredFederalStateAndLocalTaxExpenseBenefitAbstract_iB_zeUfG5lm133g" style="vertical-align: bottom; background-color: White"> <td><span style="-sec-ix-redline: true">Deferred</span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true">—</span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true">—</span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> <tr id="xdx_40C_eus-gaap--DeferredFederalIncomeTaxExpenseBenefit_maDITEBzwBz_zfRNnRvI2eV3" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true">U.S. Federal</span></td><td style="padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 1.5pt solid; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="border-bottom: Black 1.5pt solid; text-align: right"><span style="-sec-ix-redline: true"><span style="-sec-ix-hidden: xdx2ixbrl4603">—</span></span></td><td style="padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 1.5pt solid; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="border-bottom: Black 1.5pt solid; text-align: right"><span style="-sec-ix-redline: true"><span style="-sec-ix-hidden: xdx2ixbrl4604">—</span></span></td><td style="padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> <tr id="xdx_40E_eus-gaap--DeferredStateAndLocalIncomeTaxExpenseBenefit_maDITEBzwBz_zs2egaUvY9ph" style="vertical-align: bottom; background-color: White"> <td style="text-align: left"><span style="-sec-ix-redline: true">U.S. State</span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true"><span style="-sec-ix-hidden: xdx2ixbrl4606">—</span></span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true"><span style="-sec-ix-hidden: xdx2ixbrl4607">—</span></span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> <tr id="xdx_400_eus-gaap--DeferredForeignIncomeTaxExpenseBenefit_maDITEBzwBz_zso25Luoh32c" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left"><span style="-sec-ix-redline: true">U.S. Foreign</span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true"><span style="-sec-ix-hidden: xdx2ixbrl4609">—</span></span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true"><span style="-sec-ix-hidden: xdx2ixbrl4610">—</span></span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> <tr id="xdx_40B_eus-gaap--DeferredIncomeTaxExpenseBenefit_iT_mtDITEBzwBz_maPFOLzpdz_ztAmRabJ8xR3" style="vertical-align: bottom; background-color: White"> <td style="text-align: left"><span style="-sec-ix-redline: true">Total deferred benefit</span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true"><span style="-sec-ix-hidden: xdx2ixbrl4612">—</span></span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true"><span style="-sec-ix-hidden: xdx2ixbrl4613">—</span></span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> <tr id="xdx_400_ecustom--ChangeInDeferredTaxAssetsValuationAllowance_maPFOLzpdz_z06EeYra2DCl" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-left: 10pt; text-align: left; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true">Change in valuation allowance</span></td><td style="padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 1.5pt solid; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="border-bottom: Black 1.5pt solid; text-align: right"><span style="-sec-ix-redline: true"><span style="-sec-ix-hidden: xdx2ixbrl4615">—</span></span></td><td style="padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 1.5pt solid; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="border-bottom: Black 1.5pt solid; text-align: right"><span style="-sec-ix-redline: true"><span style="-sec-ix-hidden: xdx2ixbrl4616">—</span></span></td><td style="padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> <tr id="xdx_402_eus-gaap--ProvisionForOtherLosses_iT_mtPFOLzpdz_zTeMSpr3c4wa" style="vertical-align: bottom; background-color: White"> <td style="padding-left: 10pt; text-align: left; padding-bottom: 2.5pt"><span style="-sec-ix-redline: true">Total provision for income taxes</span></td><td style="padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 2.5pt double; text-align: left"><span style="-sec-ix-redline: true">$</span></td><td style="border-bottom: Black 2.5pt double; text-align: right"><span style="-sec-ix-redline: true">5,750</span></td><td style="padding-bottom: 2.5pt; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 2.5pt double; text-align: left"><span style="-sec-ix-redline: true">$</span></td><td style="border-bottom: Black 2.5pt double; text-align: right"><span style="-sec-ix-redline: true"><span style="-sec-ix-hidden: xdx2ixbrl4619">—</span></span></td><td style="padding-bottom: 2.5pt; text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> </table> 5750 5750 5750 <p id="xdx_89F_eus-gaap--ScheduleOfIncomeBeforeIncomeTaxDomesticAndForeignTableTextBlock_zaqwHJM3XtB1" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0.5in; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The Company’s income (loss) before provision for incomes taxes consisted of the following amounts:</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0.5in; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="display: none; font-family: Times New Roman, Times, Serif; font-size: 10pt"> <span id="xdx_8B0_zzqAYee7wFq8">Schedule of Provision for Incomes Taxes Consisted</span></span></span></p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td><span style="-sec-ix-redline: true"> </span></td><td style="font-weight: bold; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td colspan="6" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"><span style="-sec-ix-redline: true">For the Year ended December 31,</span></td><td style="padding-bottom: 1.5pt; font-weight: bold"><span style="-sec-ix-redline: true"> </span></td></tr> <tr style="vertical-align: bottom"> <td><span style="-sec-ix-redline: true"> </span></td><td style="font-weight: bold; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"><span style="-sec-ix-redline: true">2022</span></td><td style="padding-bottom: 1.5pt; font-weight: bold"><span style="-sec-ix-redline: true"> </span></td><td style="font-weight: bold; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"><span style="-sec-ix-redline: true">2021</span></td><td style="padding-bottom: 1.5pt; font-weight: bold"><span style="-sec-ix-redline: true"> </span></td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 60%; text-align: left"><span style="-sec-ix-redline: true">United States</span></td><td style="width: 2%"><span style="-sec-ix-redline: true"> </span></td> <td style="width: 1%; text-align: left"><span style="-sec-ix-redline: true">$</span></td><td id="xdx_985_eus-gaap--IncomeLossFromContinuingOperationsBeforeIncomeTaxesExtraordinaryItemsNoncontrollingInterest_c20220101__20221231__srt--StatementGeographicalAxis__country--US_zKr6z0ysBxi1" style="width: 16%; text-align: right"><span style="-sec-ix-redline: true">(48,536,722</span></td><td style="width: 1%; text-align: left"><span style="-sec-ix-redline: true">)</span></td><td style="width: 2%"><span style="-sec-ix-redline: true"> </span></td> <td style="width: 1%; text-align: left"><span style="-sec-ix-redline: true">$</span></td><td id="xdx_98C_eus-gaap--IncomeLossFromContinuingOperationsBeforeIncomeTaxesExtraordinaryItemsNoncontrollingInterest_c20210101__20211231__srt--StatementGeographicalAxis__country--US_zpubCbXkhLti" style="width: 16%; text-align: right"><span style="-sec-ix-redline: true">(28,467,858</span></td><td style="width: 1%; text-align: left"><span style="-sec-ix-redline: true">)</span></td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-bottom: 1.5pt"><span style="-sec-ix-redline: true">International</span></td><td style="padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 1.5pt solid; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td id="xdx_982_eus-gaap--IncomeLossFromContinuingOperationsBeforeIncomeTaxesExtraordinaryItemsNoncontrollingInterest_c20220101__20221231__srt--StatementGeographicalAxis__custom--InternationalMember_zpjsWhi0XjDb" style="border-bottom: Black 1.5pt solid; text-align: right"><span style="-sec-ix-redline: true">(9,717,001</span></td><td style="padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true">)</span></td><td style="padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 1.5pt solid; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td id="xdx_982_eus-gaap--IncomeLossFromContinuingOperationsBeforeIncomeTaxesExtraordinaryItemsNoncontrollingInterest_c20210101__20211231__srt--StatementGeographicalAxis__custom--InternationalMember_zxpqYtwjS4cc" style="border-bottom: Black 1.5pt solid; text-align: right"><span style="-sec-ix-redline: true">(1,640,822</span></td><td style="padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true">)</span></td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 2.5pt"><span style="-sec-ix-redline: true">Total net income (loss) before income taxes</span></td><td style="padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 2.5pt double; text-align: left"><span style="-sec-ix-redline: true">$</span></td><td id="xdx_989_eus-gaap--IncomeLossFromContinuingOperationsBeforeIncomeTaxesExtraordinaryItemsNoncontrollingInterest_c20220101__20221231_zlwMa9yQMLS1" style="border-bottom: Black 2.5pt double; text-align: right" title="Total net income (loss) before income taxes"><span style="-sec-ix-redline: true">(58,253,723</span></td><td style="padding-bottom: 2.5pt; text-align: left"><span style="-sec-ix-redline: true">)</span></td><td style="padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 2.5pt double; text-align: left"><span style="-sec-ix-redline: true">$</span></td><td id="xdx_98A_eus-gaap--IncomeLossFromContinuingOperationsBeforeIncomeTaxesExtraordinaryItemsNoncontrollingInterest_c20210101__20211231_zIhf9FbXIybk" style="border-bottom: Black 2.5pt double; text-align: right" title="Total net income (loss) before income taxes"><span style="-sec-ix-redline: true">(30,108,680</span></td><td style="padding-bottom: 2.5pt; text-align: left"><span style="-sec-ix-redline: true">)</span></td></tr> </table> -48536722 -28467858 -9717001 -1640822 -58253723 -30108680 <p id="xdx_80B_eus-gaap--SegmentReportingDisclosureTextBlock_zxXlBw8jYMp1" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Note 17 – <span id="xdx_82B_z1mfvPklG1L3">Segment Information</span></b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0.5in; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The Company conducts the business through the following <span class="xdx_phnt_RGlzY2xvc3VyZSAtIFNlZ21lbnQgSW5mb3JtYXRpb24gKERldGFpbHMgTmFycmF0aXZlKQA_" id="xdx_90D_eus-gaap--NumberOfOperatingSegments_dc_uSegments_c20220101__20221231_zSN0R498g2Z" title="Number of operating segments">three</span> operating segments: Drones, Sensors and SaaS.</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0.5in; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The accounting policies of the operating segments are the same as those described in Note 2. Non-allocated administrative and other expenses are reflected in Corporate. Corporate assets include cash, prepaid expenses, notes receivable, right of use asset and other assets.</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p id="xdx_893_eus-gaap--ScheduleOfIntangibleAssetsAndGoodwillTableTextBlock_zT1R79uwftK6" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0.5in; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">As of December 31, 2022 and 2021 and for the years then ended operating information about the Company’s reportable segments consisted of the following:</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0.5in; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i>Goodwill and Assets</i></b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0.5in; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i> </i></b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="display: none; font-family: Times New Roman, Times, Serif; font-size: 10pt"> <span id="xdx_8B1_z4gU7F6tmF95">Schedule of Goodwill and Assets</span></span></span></p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td><span style="-sec-ix-redline: true"> </span></td><td style="font-weight: bold; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td colspan="2" id="xdx_4BA_us-gaap--StatementBusinessSegmentsAxis_us-gaap--CorporateMember_zvH5veC54ys1" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"><span style="-sec-ix-redline: true">Corporate</span></td><td style="padding-bottom: 1.5pt; font-weight: bold"><span style="-sec-ix-redline: true"> </span></td><td style="font-weight: bold; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td colspan="2" id="xdx_4BA_us-gaap--StatementBusinessSegmentsAxis_custom--DronesMember_zTf3VQ10voRl" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"><span style="-sec-ix-redline: true">Drones</span></td><td style="padding-bottom: 1.5pt; font-weight: bold"><span style="-sec-ix-redline: true"> </span></td><td style="font-weight: bold; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td colspan="2" id="xdx_4BA_us-gaap--StatementBusinessSegmentsAxis_custom--SensorsMember_zPI94ma9JsKg" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"><span style="-sec-ix-redline: true">Sensors</span></td><td style="padding-bottom: 1.5pt; font-weight: bold"><span style="-sec-ix-redline: true"> </span></td><td style="font-weight: bold; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td colspan="2" id="xdx_4B2_us-gaap--StatementBusinessSegmentsAxis_custom--SaaSMember_z0uwuuRrF3Ga" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"><span style="-sec-ix-redline: true">SaaS</span></td><td style="padding-bottom: 1.5pt; font-weight: bold"><span style="-sec-ix-redline: true"> </span></td><td style="font-weight: bold; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td colspan="2" id="xdx_4B6_zbakGDnXMU0a" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"><span style="-sec-ix-redline: true">Total</span></td><td style="padding-bottom: 1.5pt; font-weight: bold"><span style="-sec-ix-redline: true"> </span></td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-weight: bold"><span style="-sec-ix-redline: true">As of December 31, 2022</span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> <tr id="xdx_433_c20221231_eus-gaap--Goodwill_iI_zHllRMjlSFV8" style="vertical-align: bottom; background-color: White"> <td style="width: 35%"><span style="-sec-ix-redline: true">Goodwill</span></td><td style="width: 2%"><span style="-sec-ix-redline: true"> </span></td> <td style="width: 1%; text-align: left"><span style="-sec-ix-redline: true">$</span></td><td style="width: 9%; text-align: right"><span style="-sec-ix-redline: true"><span style="-sec-ix-hidden: xdx2ixbrl4637">—</span></span></td><td style="width: 1%; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="width: 2%"><span style="-sec-ix-redline: true"> </span></td> <td style="width: 1%; text-align: left"><span style="-sec-ix-redline: true">$</span></td><td style="width: 9%; text-align: right"><span style="-sec-ix-redline: true"><span style="-sec-ix-hidden: xdx2ixbrl4638">—</span></span></td><td style="width: 1%; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="width: 2%"><span style="-sec-ix-redline: true"> </span></td> <td style="width: 1%; text-align: left"><span style="-sec-ix-redline: true">$</span></td><td style="width: 9%; text-align: right"><span style="-sec-ix-redline: true">18,972,896</span></td><td style="width: 1%; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="width: 2%"><span style="-sec-ix-redline: true"> </span></td> <td style="width: 1%; text-align: left"><span style="-sec-ix-redline: true">$</span></td><td style="width: 9%; text-align: right"><span style="-sec-ix-redline: true">4,206,515</span></td><td style="width: 1%; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="width: 2%"><span style="-sec-ix-redline: true"> </span></td> <td style="width: 1%; text-align: left"><span style="-sec-ix-redline: true">$</span></td><td style="width: 9%; text-align: right"><span style="-sec-ix-redline: true">23,179,411</span></td><td style="width: 1%; text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> <tr id="xdx_43F_c20221231_eus-gaap--Assets_iI_zx7Q3yOBWFT1" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td><span style="-sec-ix-redline: true">Assets</span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true">$</span></td><td style="text-align: right"><span style="-sec-ix-redline: true">4,785,643</span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true">$</span></td><td style="text-align: right"><span style="-sec-ix-redline: true">14,930,789</span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true">$</span></td><td style="text-align: right"><span style="-sec-ix-redline: true">26,081,788</span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true">$</span></td><td style="text-align: right"><span style="-sec-ix-redline: true">8,386,654</span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true">$</span></td><td style="text-align: right"><span style="-sec-ix-redline: true">54,184,874</span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> <tr style="vertical-align: bottom; background-color: White"> <td><span style="-sec-ix-redline: true"> </span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-weight: bold"><span style="-sec-ix-redline: true">As of December 31, 2021</span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> <tr id="xdx_431_c20211231_eus-gaap--Goodwill_iI_zVKRdj3y6p3f" style="vertical-align: bottom; background-color: White"> <td><span style="-sec-ix-redline: true">Goodwill</span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true">$</span></td><td style="text-align: right"><span style="-sec-ix-redline: true"><span style="-sec-ix-hidden: xdx2ixbrl4649">—</span></span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true">$</span></td><td style="text-align: right"><span style="-sec-ix-redline: true">12,655,577</span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true">$</span></td><td style="text-align: right"><span style="-sec-ix-redline: true">18,972,896</span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true">$</span></td><td style="text-align: right"><span style="-sec-ix-redline: true">33,238,809</span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true">$</span></td><td style="text-align: right"><span style="-sec-ix-redline: true">64,867,282</span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> <tr id="xdx_43A_c20211231_eus-gaap--Assets_iI_zhL3rB5oXzr5" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td><span style="-sec-ix-redline: true">Assets</span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true">$</span></td><td style="text-align: right"><span style="-sec-ix-redline: true">14,516,466</span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true">$</span></td><td style="text-align: right"><span style="-sec-ix-redline: true">27,073,211</span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true">$</span></td><td style="text-align: right"><span style="-sec-ix-redline: true">25,548,066</span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true">$</span></td><td style="text-align: right"><span style="-sec-ix-redline: true">37,545,298</span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true">$</span></td><td style="text-align: right"><span style="-sec-ix-redline: true">104,683,041</span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> </table> <p id="xdx_8A3_zVPfEaZXhlq6" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0.5in; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i>Net (Loss) Income</i></b></span></span></p> <p id="xdx_89A_eus-gaap--ScheduleOfSegmentReportingInformationBySegmentTextBlock_zD8ZU4q8yR22" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="display: none; font-family: Times New Roman, Times, Serif; font-size: 10pt"> <span id="xdx_8B5_zNvXb8bhODV3">Schedule of Segment Reporting Net (Loss) Income</span></span></span></p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td><span style="-sec-ix-redline: true"> </span></td><td style="font-weight: bold; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td colspan="2" id="xdx_4BA_us-gaap--StatementBusinessSegmentsAxis_us-gaap--CorporateMember_zGzgWjF8tz78" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"><span style="-sec-ix-redline: true">Corporate</span></td><td style="padding-bottom: 1.5pt; font-weight: bold"><span style="-sec-ix-redline: true"> </span></td><td style="font-weight: bold; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td colspan="2" id="xdx_4B3_us-gaap--StatementBusinessSegmentsAxis_custom--DronesMember_zin0P5CBnmuk" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"><span style="-sec-ix-redline: true">Drones</span></td><td style="padding-bottom: 1.5pt; font-weight: bold"><span style="-sec-ix-redline: true"> </span></td><td style="font-weight: bold; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td colspan="2" id="xdx_4B6_us-gaap--StatementBusinessSegmentsAxis_custom--SensorsMember_zGkLrhiShVm1" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"><span style="-sec-ix-redline: true">Sensors</span></td><td style="padding-bottom: 1.5pt; font-weight: bold"><span style="-sec-ix-redline: true"> </span></td><td style="font-weight: bold; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td colspan="2" id="xdx_4B8_us-gaap--StatementBusinessSegmentsAxis_custom--SaaSMember_zfNYibog5SLf" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"><span style="-sec-ix-redline: true">SaaS</span></td><td style="padding-bottom: 1.5pt; font-weight: bold"><span style="-sec-ix-redline: true"> </span></td><td style="font-weight: bold; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td colspan="2" id="xdx_4BC_zxO24aZJ9Z0b" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"><span style="-sec-ix-redline: true">Total</span></td><td style="padding-bottom: 1.5pt; font-weight: bold"><span style="-sec-ix-redline: true"> </span></td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-weight: bold"><span style="-sec-ix-redline: true">Year ended December 31, 2022</span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> <tr id="xdx_430_c20220101__20221231_eus-gaap--Revenues_zQniM3tXUKDg" style="vertical-align: bottom; background-color: White"> <td style="width: 35%"><span style="-sec-ix-redline: true">Revenue</span></td><td style="width: 2%"><span style="-sec-ix-redline: true"> </span></td> <td style="width: 1%; text-align: left"><span style="-sec-ix-redline: true">$</span></td><td style="width: 9%; text-align: right"><span style="-sec-ix-redline: true"><span style="-sec-ix-hidden: xdx2ixbrl4663">—</span></span></td><td style="width: 1%; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="width: 2%"><span style="-sec-ix-redline: true"> </span></td> <td style="width: 1%; text-align: left"><span style="-sec-ix-redline: true">$</span></td><td style="width: 9%; text-align: right"><span style="-sec-ix-redline: true">9,840,321</span></td><td style="width: 1%; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="width: 2%"><span style="-sec-ix-redline: true"> </span></td> <td style="width: 1%; text-align: left"><span style="-sec-ix-redline: true">$</span></td><td style="width: 9%; text-align: right"><span style="-sec-ix-redline: true">8,655,434</span></td><td style="width: 1%; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="width: 2%"><span style="-sec-ix-redline: true"> </span></td> <td style="width: 1%; text-align: left"><span style="-sec-ix-redline: true">$</span></td><td style="width: 9%; text-align: right"><span style="-sec-ix-redline: true">598,670</span></td><td style="width: 1%; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="width: 2%"><span style="-sec-ix-redline: true"> </span></td> <td style="width: 1%; text-align: left"><span style="-sec-ix-redline: true">$</span></td><td style="width: 9%; text-align: right"><span style="-sec-ix-redline: true">19,094,425</span></td><td style="width: 1%; text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> <tr id="xdx_432_c20220101__20221231_eus-gaap--CostOfRevenue_z3lZ7ks2j7F2" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td><span style="-sec-ix-redline: true">Cost of sales</span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true"><span style="-sec-ix-hidden: xdx2ixbrl4669">—</span></span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true">4,762,888</span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true">5,086,993</span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true">1,026,427</span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true">10,876,308</span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> <tr id="xdx_435_c20220101__20221231_eus-gaap--OperatingIncomeLoss_z6t9ppkzORN7" style="vertical-align: bottom; background-color: White"> <td style="text-align: left"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Loss from operations <sup id="xdx_F45_zN1SuzeylWJ4">(1)</sup></span></span></p></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true">(10,177,362</span></td><td style="text-align: left"><span style="-sec-ix-redline: true">)</span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true">(22,004,223</span></td><td style="text-align: left"><span style="-sec-ix-redline: true">)</span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true">10,958</span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true">(32,106,210</span></td><td style="text-align: left"><span style="-sec-ix-redline: true">)</span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true">(64,276,837</span></td><td style="text-align: left"><span style="-sec-ix-redline: true">)</span></td></tr> <tr id="xdx_43C_c20220101__20221231_eus-gaap--NonoperatingIncomeExpense_zSqsmUeNPxLa" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true">Other income (expense), net</span></td><td style="padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 1.5pt solid; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="border-bottom: Black 1.5pt solid; text-align: right"><span style="-sec-ix-redline: true">6,416,717</span></td><td style="padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 1.5pt solid; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="border-bottom: Black 1.5pt solid; text-align: right"><span style="-sec-ix-redline: true">(356,095</span></td><td style="padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true">)</span></td><td style="padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 1.5pt solid; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="border-bottom: Black 1.5pt solid; text-align: right"><span style="-sec-ix-redline: true">(30,893</span></td><td style="padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true">)</span></td><td style="padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 1.5pt solid; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="border-bottom: Black 1.5pt solid; text-align: right"><span style="-sec-ix-redline: true">(6,615</span></td><td style="padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true">)</span></td><td style="padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 1.5pt solid; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="border-bottom: Black 1.5pt solid; text-align: right"><span style="-sec-ix-redline: true">6,023,114</span></td><td style="padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> <tr id="xdx_434_c20220101__20221231_eus-gaap--NetIncomeLoss_zyV02d1egwd6" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 2.5pt"><span style="-sec-ix-redline: true">Net loss</span></td><td style="padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 2.5pt double; text-align: left"><span style="-sec-ix-redline: true">$</span></td><td style="border-bottom: Black 2.5pt double; text-align: right"><span style="-sec-ix-redline: true">(3,760,645</span></td><td style="padding-bottom: 2.5pt; text-align: left"><span style="-sec-ix-redline: true">)</span></td><td style="padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 2.5pt double; text-align: left"><span style="-sec-ix-redline: true">$</span></td><td style="border-bottom: Black 2.5pt double; text-align: right"><span style="-sec-ix-redline: true">(22,360,318</span></td><td style="padding-bottom: 2.5pt; text-align: left"><span style="-sec-ix-redline: true">)</span></td><td style="padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 2.5pt double; text-align: left"><span style="-sec-ix-redline: true">$</span></td><td style="border-bottom: Black 2.5pt double; text-align: right"><span style="-sec-ix-redline: true">(19,935</span></td><td style="padding-bottom: 2.5pt; text-align: left"><span style="-sec-ix-redline: true">)</span></td><td style="padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 2.5pt double; text-align: left"><span style="-sec-ix-redline: true">$</span></td><td style="border-bottom: Black 2.5pt double; text-align: right"><span style="-sec-ix-redline: true">(32,112,825</span></td><td style="padding-bottom: 2.5pt; text-align: left"><span style="-sec-ix-redline: true">)</span></td><td style="padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 2.5pt double; text-align: left"><span style="-sec-ix-redline: true">$</span></td><td style="border-bottom: Black 2.5pt double; text-align: right"><span style="-sec-ix-redline: true">(58,253,723</span></td><td style="padding-bottom: 2.5pt; text-align: left"><span style="-sec-ix-redline: true">)</span></td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td><span style="-sec-ix-redline: true"> </span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-weight: bold"><span style="-sec-ix-redline: true">Year ended December 31, 2021</span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> <tr id="xdx_431_c20210101__20211231_eus-gaap--Revenues_z9XbJd1XDGLl" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td><span style="-sec-ix-redline: true">Revenue</span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true">$</span></td><td style="text-align: right"><span style="-sec-ix-redline: true"><span style="-sec-ix-hidden: xdx2ixbrl4693">—</span></span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true">$</span></td><td style="text-align: right"><span style="-sec-ix-redline: true">2,428,858</span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true">$</span></td><td style="text-align: right"><span style="-sec-ix-redline: true">6,793,727</span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true">$</span></td><td style="text-align: right"><span style="-sec-ix-redline: true">538,367</span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true">$</span></td><td style="text-align: right"><span style="-sec-ix-redline: true">9,760,952</span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> <tr id="xdx_437_c20210101__20211231_eus-gaap--CostOfRevenue_zhFMHWTta2ci" style="vertical-align: bottom; background-color: White"> <td><span style="-sec-ix-redline: true">Cost of sales</span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true"><span style="-sec-ix-hidden: xdx2ixbrl4699">—</span></span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true">1,474,368</span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true">3,303,286</span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true">727,054</span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true">5,504,708</span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> <tr id="xdx_430_c20210101__20211231_eus-gaap--OperatingIncomeLoss_zSEJgfbQaw44" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Loss from operations <sup id="xdx_F4D_zmcxuLZ3xgtj">(2)</sup></span></span></p></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true">(11,976,556</span></td><td style="text-align: left"><span style="-sec-ix-redline: true">)</span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true">(1,803,370</span></td><td style="text-align: left"><span style="-sec-ix-redline: true">)</span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true">(1,266,599</span></td><td style="text-align: left"><span style="-sec-ix-redline: true">)</span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true">(15,246,247</span></td><td style="text-align: left"><span style="-sec-ix-redline: true">)</span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true">(30,292,772</span></td><td style="text-align: left"><span style="-sec-ix-redline: true">)</span></td></tr> <tr id="xdx_437_c20210101__20211231_eus-gaap--NonoperatingIncomeExpense_ziCxaz7C3tvc" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true">Other income (expense), net</span></td><td style="padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 1.5pt solid; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="border-bottom: Black 1.5pt solid; text-align: right"><span style="-sec-ix-redline: true">121,926</span></td><td style="padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 1.5pt solid; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="border-bottom: Black 1.5pt solid; text-align: right"><span style="-sec-ix-redline: true">(16,007</span></td><td style="padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true">)</span></td><td style="padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 1.5pt solid; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="border-bottom: Black 1.5pt solid; text-align: right"><span style="-sec-ix-redline: true">26,786</span></td><td style="padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 1.5pt solid; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="border-bottom: Black 1.5pt solid; text-align: right"><span style="-sec-ix-redline: true">51,387</span></td><td style="padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 1.5pt solid; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="border-bottom: Black 1.5pt solid; text-align: right"><span style="-sec-ix-redline: true">184,092</span></td><td style="padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> <tr id="xdx_43F_c20210101__20211231_eus-gaap--NetIncomeLoss_zm5hHLtl4fOl" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 2.5pt"><span style="-sec-ix-redline: true">Net loss</span></td><td style="padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 2.5pt double; text-align: left"><span style="-sec-ix-redline: true">$</span></td><td style="border-bottom: Black 2.5pt double; text-align: right"><span style="-sec-ix-redline: true">(11,854,630</span></td><td style="padding-bottom: 2.5pt; text-align: left"><span style="-sec-ix-redline: true">)</span></td><td style="padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 2.5pt double; text-align: left"><span style="-sec-ix-redline: true">$</span></td><td style="border-bottom: Black 2.5pt double; text-align: right"><span style="-sec-ix-redline: true">(1,819,377</span></td><td style="padding-bottom: 2.5pt; text-align: left"><span style="-sec-ix-redline: true">)</span></td><td style="padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 2.5pt double; text-align: left"><span style="-sec-ix-redline: true">$</span></td><td style="border-bottom: Black 2.5pt double; text-align: right"><span style="-sec-ix-redline: true">(1,239,813</span></td><td style="padding-bottom: 2.5pt; text-align: left"><span style="-sec-ix-redline: true">)</span></td><td style="padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 2.5pt double; text-align: left"><span style="-sec-ix-redline: true">$</span></td><td style="border-bottom: Black 2.5pt double; text-align: right"><span style="-sec-ix-redline: true">(15,194,860</span></td><td style="padding-bottom: 2.5pt; text-align: left"><span style="-sec-ix-redline: true">)</span></td><td style="padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 2.5pt double; text-align: left"><span style="-sec-ix-redline: true">$</span></td><td style="border-bottom: Black 2.5pt double; text-align: right"><span style="-sec-ix-redline: true">(30,108,680</span></td><td style="padding-bottom: 2.5pt; text-align: left"><span style="-sec-ix-redline: true">)</span></td></tr> </table> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt; width: 100%"><tr style="vertical-align: top; text-align: justify"> <td style="width: 15pt; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><sup id="xdx_F04_zhcXx1XYnBh2">(1)</sup></span></span></td><td style="width: 5pt"></td><td style="text-align: justify"><span style="-sec-ix-redline: true"><span id="xdx_F17_zwYqioCzFP4g" style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Includes goodwill impairment $<span class="xdx_phnt_RGlzY2xvc3VyZSAtIFNjaGVkdWxlIG9mIFNlZ21lbnQgUmVwb3J0aW5nIE5ldCAoTG9zcykgSW5jb21lIChEZXRhaWxzKSAoUGFyZW50aGV0aWNhbCkA" id="xdx_90D_ecustom--GoodwillImpairmentLosses_c20220101__20221231__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__custom--DroneAndSaaSMember_zCGCaOpR4qpc" title="Good will impairment">41,687,871</span> for the Drone and SaaS reporting segments</span></span></td> </tr></table> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt; width: 100%"><tr style="vertical-align: top; text-align: justify"> <td style="width: 15pt; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><sup id="xdx_F07_zWR9Ypvj1MYb">(2)</sup></span></span></td><td style="width: 5pt"></td><td style="text-align: justify"><span style="-sec-ix-redline: true"><span id="xdx_F16_zfthdaecxxuj" style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Includes goodwill impairment $<span class="xdx_phnt_RGlzY2xvc3VyZSAtIFNjaGVkdWxlIG9mIFNlZ21lbnQgUmVwb3J0aW5nIE5ldCAoTG9zcykgSW5jb21lIChEZXRhaWxzKSAoUGFyZW50aGV0aWNhbCkA" id="xdx_903_ecustom--GoodwillImpairmentLosses_c20220101__20221231__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__custom--SaaSMember_zI7jC2Nqnpad" title="Good will impairment">12,357,921</span> for the SaaS reporting segment</span></span></td> </tr></table> <p id="xdx_8A9_z8ZmoE6nqI5c" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>AGEAGLE AERIAL SYSTEMS INC. AND SUBSIDIARIES </b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>NOTES TO CONSOLIDATED FINANCIAL STATEMENTS</b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: center"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>FOR THE YEARS ENDED DECEMBER 31, 2022 AND 2021</b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Note 17 – Segment Information-Continued</b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0.5in; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i>Revenues by Geographic Area</i></b></span></span></p> <p id="xdx_899_eus-gaap--ScheduleOfRevenuesFromExternalCustomersAndLongLivedAssetsByGeographicalAreasTableTextBlock_zEKN6UnkA7J" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="display: none; font-family: Times New Roman, Times, Serif; font-size: 10pt"> <span id="xdx_8B8_zTJwoucHEe19">Schedule of Segment Revenues by Geographic Area</span></span></span></p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td><span style="-sec-ix-redline: true"> </span></td><td style="font-weight: bold; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td colspan="2" id="xdx_4B5_us-gaap--StatementBusinessSegmentsAxis_custom--DronesMember_zeCrKrsKtgw4" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"><span style="-sec-ix-redline: true">Drones</span></td><td style="padding-bottom: 1.5pt; font-weight: bold"><span style="-sec-ix-redline: true"> </span></td><td style="font-weight: bold; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td colspan="2" id="xdx_4B6_us-gaap--StatementBusinessSegmentsAxis_custom--SensorsMember_zP37hLRmniol" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"><span style="-sec-ix-redline: true">Sensors</span></td><td style="padding-bottom: 1.5pt; font-weight: bold"><span style="-sec-ix-redline: true"> </span></td><td style="font-weight: bold; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td colspan="2" id="xdx_4B4_us-gaap--StatementBusinessSegmentsAxis_custom--SaaSMember_zX0fnjaBWTAe" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"><span style="-sec-ix-redline: true">SaaS</span></td><td style="padding-bottom: 1.5pt; font-weight: bold"><span style="-sec-ix-redline: true"> </span></td><td style="font-weight: bold; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td colspan="2" id="xdx_4BC_z8vQdj60e4e" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"><span style="-sec-ix-redline: true">Total</span></td><td style="padding-bottom: 1.5pt; font-weight: bold"><span style="-sec-ix-redline: true"> </span></td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-weight: bold"><span style="-sec-ix-redline: true">Year ended December 31, 2022</span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> <tr id="xdx_434_c20220101__20221231__srt--StatementGeographicalAxis__srt--NorthAmericaMember_eus-gaap--Revenues_ziOyDHDEozbg" style="vertical-align: bottom; background-color: White"> <td style="width: 44%; text-align: left"><span style="-sec-ix-redline: true">North America</span></td><td style="width: 2%"><span style="-sec-ix-redline: true"> </span></td> <td style="width: 1%; text-align: left"><span style="-sec-ix-redline: true">$</span></td><td style="width: 10%; text-align: right"><span style="-sec-ix-redline: true">5,320,034</span></td><td style="width: 1%; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="width: 2%"><span style="-sec-ix-redline: true"> </span></td> <td style="width: 1%; text-align: left"><span style="-sec-ix-redline: true">$</span></td><td style="width: 10%; text-align: right"><span style="-sec-ix-redline: true">3,173,347</span></td><td style="width: 1%; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="width: 2%"><span style="-sec-ix-redline: true"> </span></td> <td style="width: 1%; text-align: left"><span style="-sec-ix-redline: true">$</span></td><td style="width: 10%; text-align: right"><span style="-sec-ix-redline: true">598,670</span></td><td style="width: 1%; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="width: 2%"><span style="-sec-ix-redline: true"> </span></td> <td style="width: 1%; text-align: left"><span style="-sec-ix-redline: true">$</span></td><td style="width: 10%; text-align: right"><span style="-sec-ix-redline: true">9,092,051</span></td><td style="width: 1%; text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> <tr id="xdx_437_c20220101__20221231__srt--StatementGeographicalAxis__custom--EuropeMiddleEastAndAfricaMember_eus-gaap--Revenues_zscwgaruLYZf" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left"><span style="-sec-ix-redline: true">Europe, Middle East and Africa</span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true">3,537,463</span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true">3,309,039</span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true"><span style="-sec-ix-hidden: xdx2ixbrl4738">—</span></span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true">6,846,502</span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> <tr id="xdx_437_c20220101__20221231__srt--StatementGeographicalAxis__srt--AsiaPacificMember_eus-gaap--Revenues_zbeohxINMPmi" style="vertical-align: bottom; background-color: White"> <td style="text-align: left"><span style="-sec-ix-redline: true">Asia Pacific</span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true">982,824</span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true">1,756,253</span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true"><span style="-sec-ix-hidden: xdx2ixbrl4743">—</span></span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true">2,739,077</span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> <tr id="xdx_430_c20220101__20221231__srt--StatementGeographicalAxis__custom--OtherGeographicAreaMember_eus-gaap--Revenues_zHp89i9EwDe7" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-bottom: 1.5pt"><span style="-sec-ix-redline: true">Other</span></td><td style="padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 1.5pt solid; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="border-bottom: Black 1.5pt solid; text-align: right"><span style="-sec-ix-redline: true"><span style="-sec-ix-hidden: xdx2ixbrl4746">—</span></span></td><td style="padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 1.5pt solid; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="border-bottom: Black 1.5pt solid; text-align: right"><span style="-sec-ix-redline: true">416,795</span></td><td style="padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 1.5pt solid; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="border-bottom: Black 1.5pt solid; text-align: right"><span style="-sec-ix-redline: true"><span style="-sec-ix-hidden: xdx2ixbrl4748">—</span></span></td><td style="padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 1.5pt solid; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="border-bottom: Black 1.5pt solid; text-align: right"><span style="-sec-ix-redline: true">416,795</span></td><td style="padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> <tr id="xdx_437_c20220101__20221231_eus-gaap--Revenues_zEwO4C1VStud" style="vertical-align: bottom; background-color: White"> <td style="padding-left: 10pt; padding-bottom: 2.5pt"><span style="-sec-ix-redline: true">Total</span></td><td style="padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 2.5pt double; text-align: left"><span style="-sec-ix-redline: true">$</span></td><td style="border-bottom: Black 2.5pt double; text-align: right"><span style="-sec-ix-redline: true">9,840,321</span></td><td style="padding-bottom: 2.5pt; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 2.5pt double; text-align: left"><span style="-sec-ix-redline: true">$</span></td><td style="border-bottom: Black 2.5pt double; text-align: right"><span style="-sec-ix-redline: true">8,655,434</span></td><td style="padding-bottom: 2.5pt; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 2.5pt double; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="border-bottom: Black 2.5pt double; text-align: right"><span style="-sec-ix-redline: true">598,670</span></td><td style="padding-bottom: 2.5pt; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 2.5pt double; text-align: left"><span style="-sec-ix-redline: true">$</span></td><td style="border-bottom: Black 2.5pt double; text-align: right"><span style="-sec-ix-redline: true">19,094,425</span></td><td style="padding-bottom: 2.5pt; text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td><span style="-sec-ix-redline: true"> </span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-weight: bold"><span style="-sec-ix-redline: true">Year ended December 31, 2021</span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> <tr id="xdx_435_c20210101__20211231__srt--StatementGeographicalAxis__srt--NorthAmericaMember_eus-gaap--Revenues_zKR8RINsuESa" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left"><span style="-sec-ix-redline: true">North America</span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true">$</span></td><td style="text-align: right"><span style="-sec-ix-redline: true">527,292</span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true">$</span></td><td style="text-align: right"><span style="-sec-ix-redline: true">2,235,143</span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true">$</span></td><td style="text-align: right"><span style="-sec-ix-redline: true">538,367</span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true">$</span></td><td style="text-align: right"><span style="-sec-ix-redline: true">3,300,802</span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> <tr id="xdx_436_c20210101__20211231__srt--StatementGeographicalAxis__custom--EuropeMiddleEastAndAfricaMember_eus-gaap--Revenues_zAhNveO7mc9k" style="vertical-align: bottom; background-color: White"> <td style="text-align: left"><span style="-sec-ix-redline: true">Europe, Middle East and Africa</span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true">1,074,413</span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true">2,587,399</span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true"><span style="-sec-ix-hidden: xdx2ixbrl4763">—</span></span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true">3,661,812</span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> <tr id="xdx_43D_c20210101__20211231__srt--StatementGeographicalAxis__srt--AsiaPacificMember_eus-gaap--Revenues_zFqVswMTrSe9" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left"><span style="-sec-ix-redline: true">Asia Pacific</span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true">257,021</span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true">1,224,719</span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true"><span style="-sec-ix-hidden: xdx2ixbrl4768">—</span></span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true">1,481,740</span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> <tr id="xdx_43D_c20210101__20211231__srt--StatementGeographicalAxis__custom--OtherGeographicAreaMember_eus-gaap--Revenues_zgs07GTAngb8" style="vertical-align: bottom; background-color: White"> <td style="padding-bottom: 1.5pt"><span style="-sec-ix-redline: true">Other</span></td><td style="padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 1.5pt solid; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="border-bottom: Black 1.5pt solid; text-align: right"><span style="-sec-ix-redline: true">570,132</span></td><td style="padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 1.5pt solid; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="border-bottom: Black 1.5pt solid; text-align: right"><span style="-sec-ix-redline: true">746,466</span></td><td style="padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 1.5pt solid; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="border-bottom: Black 1.5pt solid; text-align: right"><span style="-sec-ix-redline: true"><span style="-sec-ix-hidden: xdx2ixbrl4773">—</span></span></td><td style="padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 1.5pt solid; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="border-bottom: Black 1.5pt solid; text-align: right"><span style="-sec-ix-redline: true">1,316,598</span></td><td style="padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> <tr id="xdx_439_c20210101__20211231_eus-gaap--Revenues_zFLEBZLUO6u4" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-bottom: 2.5pt"><span style="-sec-ix-redline: true">Total</span></td><td style="padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 2.5pt double; text-align: left"><span style="-sec-ix-redline: true">$</span></td><td style="border-bottom: Black 2.5pt double; text-align: right"><span style="-sec-ix-redline: true">2,428,858</span></td><td style="padding-bottom: 2.5pt; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 2.5pt double; text-align: left"><span style="-sec-ix-redline: true">$</span></td><td style="border-bottom: Black 2.5pt double; text-align: right"><span style="-sec-ix-redline: true">6,793,727</span></td><td style="padding-bottom: 2.5pt; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 2.5pt double; text-align: left"><span style="-sec-ix-redline: true">$</span></td><td style="border-bottom: Black 2.5pt double; text-align: right"><span style="-sec-ix-redline: true">538,367</span></td><td style="padding-bottom: 2.5pt; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 2.5pt double; text-align: left"><span style="-sec-ix-redline: true">$</span></td><td style="border-bottom: Black 2.5pt double; text-align: right"><span style="-sec-ix-redline: true">9,760,952</span></td><td style="padding-bottom: 2.5pt; text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> </table> <p id="xdx_8AC_zkJFRv7VYMFj" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> 3 <p id="xdx_893_eus-gaap--ScheduleOfIntangibleAssetsAndGoodwillTableTextBlock_zT1R79uwftK6" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0.5in; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">As of December 31, 2022 and 2021 and for the years then ended operating information about the Company’s reportable segments consisted of the following:</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0.5in; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i>Goodwill and Assets</i></b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0.5in; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i> </i></b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="display: none; font-family: Times New Roman, Times, Serif; font-size: 10pt"> <span id="xdx_8B1_z4gU7F6tmF95">Schedule of Goodwill and Assets</span></span></span></p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td><span style="-sec-ix-redline: true"> </span></td><td style="font-weight: bold; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td colspan="2" id="xdx_4BA_us-gaap--StatementBusinessSegmentsAxis_us-gaap--CorporateMember_zvH5veC54ys1" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"><span style="-sec-ix-redline: true">Corporate</span></td><td style="padding-bottom: 1.5pt; font-weight: bold"><span style="-sec-ix-redline: true"> </span></td><td style="font-weight: bold; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td colspan="2" id="xdx_4BA_us-gaap--StatementBusinessSegmentsAxis_custom--DronesMember_zTf3VQ10voRl" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"><span style="-sec-ix-redline: true">Drones</span></td><td style="padding-bottom: 1.5pt; font-weight: bold"><span style="-sec-ix-redline: true"> </span></td><td style="font-weight: bold; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td colspan="2" id="xdx_4BA_us-gaap--StatementBusinessSegmentsAxis_custom--SensorsMember_zPI94ma9JsKg" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"><span style="-sec-ix-redline: true">Sensors</span></td><td style="padding-bottom: 1.5pt; font-weight: bold"><span style="-sec-ix-redline: true"> </span></td><td style="font-weight: bold; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td colspan="2" id="xdx_4B2_us-gaap--StatementBusinessSegmentsAxis_custom--SaaSMember_z0uwuuRrF3Ga" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"><span style="-sec-ix-redline: true">SaaS</span></td><td style="padding-bottom: 1.5pt; font-weight: bold"><span style="-sec-ix-redline: true"> </span></td><td style="font-weight: bold; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td colspan="2" id="xdx_4B6_zbakGDnXMU0a" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"><span style="-sec-ix-redline: true">Total</span></td><td style="padding-bottom: 1.5pt; font-weight: bold"><span style="-sec-ix-redline: true"> </span></td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-weight: bold"><span style="-sec-ix-redline: true">As of December 31, 2022</span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> <tr id="xdx_433_c20221231_eus-gaap--Goodwill_iI_zHllRMjlSFV8" style="vertical-align: bottom; background-color: White"> <td style="width: 35%"><span style="-sec-ix-redline: true">Goodwill</span></td><td style="width: 2%"><span style="-sec-ix-redline: true"> </span></td> <td style="width: 1%; text-align: left"><span style="-sec-ix-redline: true">$</span></td><td style="width: 9%; text-align: right"><span style="-sec-ix-redline: true"><span style="-sec-ix-hidden: xdx2ixbrl4637">—</span></span></td><td style="width: 1%; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="width: 2%"><span style="-sec-ix-redline: true"> </span></td> <td style="width: 1%; text-align: left"><span style="-sec-ix-redline: true">$</span></td><td style="width: 9%; text-align: right"><span style="-sec-ix-redline: true"><span style="-sec-ix-hidden: xdx2ixbrl4638">—</span></span></td><td style="width: 1%; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="width: 2%"><span style="-sec-ix-redline: true"> </span></td> <td style="width: 1%; text-align: left"><span style="-sec-ix-redline: true">$</span></td><td style="width: 9%; text-align: right"><span style="-sec-ix-redline: true">18,972,896</span></td><td style="width: 1%; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="width: 2%"><span style="-sec-ix-redline: true"> </span></td> <td style="width: 1%; text-align: left"><span style="-sec-ix-redline: true">$</span></td><td style="width: 9%; text-align: right"><span style="-sec-ix-redline: true">4,206,515</span></td><td style="width: 1%; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="width: 2%"><span style="-sec-ix-redline: true"> </span></td> <td style="width: 1%; text-align: left"><span style="-sec-ix-redline: true">$</span></td><td style="width: 9%; text-align: right"><span style="-sec-ix-redline: true">23,179,411</span></td><td style="width: 1%; text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> <tr id="xdx_43F_c20221231_eus-gaap--Assets_iI_zx7Q3yOBWFT1" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td><span style="-sec-ix-redline: true">Assets</span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true">$</span></td><td style="text-align: right"><span style="-sec-ix-redline: true">4,785,643</span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true">$</span></td><td style="text-align: right"><span style="-sec-ix-redline: true">14,930,789</span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true">$</span></td><td style="text-align: right"><span style="-sec-ix-redline: true">26,081,788</span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true">$</span></td><td style="text-align: right"><span style="-sec-ix-redline: true">8,386,654</span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true">$</span></td><td style="text-align: right"><span style="-sec-ix-redline: true">54,184,874</span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> <tr style="vertical-align: bottom; background-color: White"> <td><span style="-sec-ix-redline: true"> </span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-weight: bold"><span style="-sec-ix-redline: true">As of December 31, 2021</span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> <tr id="xdx_431_c20211231_eus-gaap--Goodwill_iI_zVKRdj3y6p3f" style="vertical-align: bottom; background-color: White"> <td><span style="-sec-ix-redline: true">Goodwill</span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true">$</span></td><td style="text-align: right"><span style="-sec-ix-redline: true"><span style="-sec-ix-hidden: xdx2ixbrl4649">—</span></span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true">$</span></td><td style="text-align: right"><span style="-sec-ix-redline: true">12,655,577</span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true">$</span></td><td style="text-align: right"><span style="-sec-ix-redline: true">18,972,896</span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true">$</span></td><td style="text-align: right"><span style="-sec-ix-redline: true">33,238,809</span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true">$</span></td><td style="text-align: right"><span style="-sec-ix-redline: true">64,867,282</span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> <tr id="xdx_43A_c20211231_eus-gaap--Assets_iI_zhL3rB5oXzr5" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td><span style="-sec-ix-redline: true">Assets</span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true">$</span></td><td style="text-align: right"><span style="-sec-ix-redline: true">14,516,466</span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true">$</span></td><td style="text-align: right"><span style="-sec-ix-redline: true">27,073,211</span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true">$</span></td><td style="text-align: right"><span style="-sec-ix-redline: true">25,548,066</span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true">$</span></td><td style="text-align: right"><span style="-sec-ix-redline: true">37,545,298</span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true">$</span></td><td style="text-align: right"><span style="-sec-ix-redline: true">104,683,041</span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> </table> 18972896 4206515 23179411 4785643 14930789 26081788 8386654 54184874 12655577 18972896 33238809 64867282 14516466 27073211 25548066 37545298 104683041 <p id="xdx_89A_eus-gaap--ScheduleOfSegmentReportingInformationBySegmentTextBlock_zD8ZU4q8yR22" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="display: none; font-family: Times New Roman, Times, Serif; font-size: 10pt"> <span id="xdx_8B5_zNvXb8bhODV3">Schedule of Segment Reporting Net (Loss) Income</span></span></span></p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td><span style="-sec-ix-redline: true"> </span></td><td style="font-weight: bold; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td colspan="2" id="xdx_4BA_us-gaap--StatementBusinessSegmentsAxis_us-gaap--CorporateMember_zGzgWjF8tz78" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"><span style="-sec-ix-redline: true">Corporate</span></td><td style="padding-bottom: 1.5pt; font-weight: bold"><span style="-sec-ix-redline: true"> </span></td><td style="font-weight: bold; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td colspan="2" id="xdx_4B3_us-gaap--StatementBusinessSegmentsAxis_custom--DronesMember_zin0P5CBnmuk" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"><span style="-sec-ix-redline: true">Drones</span></td><td style="padding-bottom: 1.5pt; font-weight: bold"><span style="-sec-ix-redline: true"> </span></td><td style="font-weight: bold; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td colspan="2" id="xdx_4B6_us-gaap--StatementBusinessSegmentsAxis_custom--SensorsMember_zGkLrhiShVm1" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"><span style="-sec-ix-redline: true">Sensors</span></td><td style="padding-bottom: 1.5pt; font-weight: bold"><span style="-sec-ix-redline: true"> </span></td><td style="font-weight: bold; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td colspan="2" id="xdx_4B8_us-gaap--StatementBusinessSegmentsAxis_custom--SaaSMember_zfNYibog5SLf" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"><span style="-sec-ix-redline: true">SaaS</span></td><td style="padding-bottom: 1.5pt; font-weight: bold"><span style="-sec-ix-redline: true"> </span></td><td style="font-weight: bold; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td colspan="2" id="xdx_4BC_zxO24aZJ9Z0b" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"><span style="-sec-ix-redline: true">Total</span></td><td style="padding-bottom: 1.5pt; font-weight: bold"><span style="-sec-ix-redline: true"> </span></td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-weight: bold"><span style="-sec-ix-redline: true">Year ended December 31, 2022</span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> <tr id="xdx_430_c20220101__20221231_eus-gaap--Revenues_zQniM3tXUKDg" style="vertical-align: bottom; background-color: White"> <td style="width: 35%"><span style="-sec-ix-redline: true">Revenue</span></td><td style="width: 2%"><span style="-sec-ix-redline: true"> </span></td> <td style="width: 1%; text-align: left"><span style="-sec-ix-redline: true">$</span></td><td style="width: 9%; text-align: right"><span style="-sec-ix-redline: true"><span style="-sec-ix-hidden: xdx2ixbrl4663">—</span></span></td><td style="width: 1%; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="width: 2%"><span style="-sec-ix-redline: true"> </span></td> <td style="width: 1%; text-align: left"><span style="-sec-ix-redline: true">$</span></td><td style="width: 9%; text-align: right"><span style="-sec-ix-redline: true">9,840,321</span></td><td style="width: 1%; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="width: 2%"><span style="-sec-ix-redline: true"> </span></td> <td style="width: 1%; text-align: left"><span style="-sec-ix-redline: true">$</span></td><td style="width: 9%; text-align: right"><span style="-sec-ix-redline: true">8,655,434</span></td><td style="width: 1%; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="width: 2%"><span style="-sec-ix-redline: true"> </span></td> <td style="width: 1%; text-align: left"><span style="-sec-ix-redline: true">$</span></td><td style="width: 9%; text-align: right"><span style="-sec-ix-redline: true">598,670</span></td><td style="width: 1%; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="width: 2%"><span style="-sec-ix-redline: true"> </span></td> <td style="width: 1%; text-align: left"><span style="-sec-ix-redline: true">$</span></td><td style="width: 9%; text-align: right"><span style="-sec-ix-redline: true">19,094,425</span></td><td style="width: 1%; text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> <tr id="xdx_432_c20220101__20221231_eus-gaap--CostOfRevenue_z3lZ7ks2j7F2" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td><span style="-sec-ix-redline: true">Cost of sales</span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true"><span style="-sec-ix-hidden: xdx2ixbrl4669">—</span></span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true">4,762,888</span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true">5,086,993</span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true">1,026,427</span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true">10,876,308</span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> <tr id="xdx_435_c20220101__20221231_eus-gaap--OperatingIncomeLoss_z6t9ppkzORN7" style="vertical-align: bottom; background-color: White"> <td style="text-align: left"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Loss from operations <sup id="xdx_F45_zN1SuzeylWJ4">(1)</sup></span></span></p></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true">(10,177,362</span></td><td style="text-align: left"><span style="-sec-ix-redline: true">)</span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true">(22,004,223</span></td><td style="text-align: left"><span style="-sec-ix-redline: true">)</span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true">10,958</span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true">(32,106,210</span></td><td style="text-align: left"><span style="-sec-ix-redline: true">)</span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true">(64,276,837</span></td><td style="text-align: left"><span style="-sec-ix-redline: true">)</span></td></tr> <tr id="xdx_43C_c20220101__20221231_eus-gaap--NonoperatingIncomeExpense_zSqsmUeNPxLa" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true">Other income (expense), net</span></td><td style="padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 1.5pt solid; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="border-bottom: Black 1.5pt solid; text-align: right"><span style="-sec-ix-redline: true">6,416,717</span></td><td style="padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 1.5pt solid; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="border-bottom: Black 1.5pt solid; text-align: right"><span style="-sec-ix-redline: true">(356,095</span></td><td style="padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true">)</span></td><td style="padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 1.5pt solid; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="border-bottom: Black 1.5pt solid; text-align: right"><span style="-sec-ix-redline: true">(30,893</span></td><td style="padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true">)</span></td><td style="padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 1.5pt solid; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="border-bottom: Black 1.5pt solid; text-align: right"><span style="-sec-ix-redline: true">(6,615</span></td><td style="padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true">)</span></td><td style="padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 1.5pt solid; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="border-bottom: Black 1.5pt solid; text-align: right"><span style="-sec-ix-redline: true">6,023,114</span></td><td style="padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> <tr id="xdx_434_c20220101__20221231_eus-gaap--NetIncomeLoss_zyV02d1egwd6" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 2.5pt"><span style="-sec-ix-redline: true">Net loss</span></td><td style="padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 2.5pt double; text-align: left"><span style="-sec-ix-redline: true">$</span></td><td style="border-bottom: Black 2.5pt double; text-align: right"><span style="-sec-ix-redline: true">(3,760,645</span></td><td style="padding-bottom: 2.5pt; text-align: left"><span style="-sec-ix-redline: true">)</span></td><td style="padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 2.5pt double; text-align: left"><span style="-sec-ix-redline: true">$</span></td><td style="border-bottom: Black 2.5pt double; text-align: right"><span style="-sec-ix-redline: true">(22,360,318</span></td><td style="padding-bottom: 2.5pt; text-align: left"><span style="-sec-ix-redline: true">)</span></td><td style="padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 2.5pt double; text-align: left"><span style="-sec-ix-redline: true">$</span></td><td style="border-bottom: Black 2.5pt double; text-align: right"><span style="-sec-ix-redline: true">(19,935</span></td><td style="padding-bottom: 2.5pt; text-align: left"><span style="-sec-ix-redline: true">)</span></td><td style="padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 2.5pt double; text-align: left"><span style="-sec-ix-redline: true">$</span></td><td style="border-bottom: Black 2.5pt double; text-align: right"><span style="-sec-ix-redline: true">(32,112,825</span></td><td style="padding-bottom: 2.5pt; text-align: left"><span style="-sec-ix-redline: true">)</span></td><td style="padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 2.5pt double; text-align: left"><span style="-sec-ix-redline: true">$</span></td><td style="border-bottom: Black 2.5pt double; text-align: right"><span style="-sec-ix-redline: true">(58,253,723</span></td><td style="padding-bottom: 2.5pt; text-align: left"><span style="-sec-ix-redline: true">)</span></td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td><span style="-sec-ix-redline: true"> </span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-weight: bold"><span style="-sec-ix-redline: true">Year ended December 31, 2021</span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> <tr id="xdx_431_c20210101__20211231_eus-gaap--Revenues_z9XbJd1XDGLl" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td><span style="-sec-ix-redline: true">Revenue</span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true">$</span></td><td style="text-align: right"><span style="-sec-ix-redline: true"><span style="-sec-ix-hidden: xdx2ixbrl4693">—</span></span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true">$</span></td><td style="text-align: right"><span style="-sec-ix-redline: true">2,428,858</span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true">$</span></td><td style="text-align: right"><span style="-sec-ix-redline: true">6,793,727</span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true">$</span></td><td style="text-align: right"><span style="-sec-ix-redline: true">538,367</span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true">$</span></td><td style="text-align: right"><span style="-sec-ix-redline: true">9,760,952</span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> <tr id="xdx_437_c20210101__20211231_eus-gaap--CostOfRevenue_zhFMHWTta2ci" style="vertical-align: bottom; background-color: White"> <td><span style="-sec-ix-redline: true">Cost of sales</span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true"><span style="-sec-ix-hidden: xdx2ixbrl4699">—</span></span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true">1,474,368</span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true">3,303,286</span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true">727,054</span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true">5,504,708</span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> <tr id="xdx_430_c20210101__20211231_eus-gaap--OperatingIncomeLoss_zSEJgfbQaw44" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Loss from operations <sup id="xdx_F4D_zmcxuLZ3xgtj">(2)</sup></span></span></p></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true">(11,976,556</span></td><td style="text-align: left"><span style="-sec-ix-redline: true">)</span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true">(1,803,370</span></td><td style="text-align: left"><span style="-sec-ix-redline: true">)</span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true">(1,266,599</span></td><td style="text-align: left"><span style="-sec-ix-redline: true">)</span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true">(15,246,247</span></td><td style="text-align: left"><span style="-sec-ix-redline: true">)</span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true">(30,292,772</span></td><td style="text-align: left"><span style="-sec-ix-redline: true">)</span></td></tr> <tr id="xdx_437_c20210101__20211231_eus-gaap--NonoperatingIncomeExpense_ziCxaz7C3tvc" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true">Other income (expense), net</span></td><td style="padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 1.5pt solid; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="border-bottom: Black 1.5pt solid; text-align: right"><span style="-sec-ix-redline: true">121,926</span></td><td style="padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 1.5pt solid; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="border-bottom: Black 1.5pt solid; text-align: right"><span style="-sec-ix-redline: true">(16,007</span></td><td style="padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true">)</span></td><td style="padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 1.5pt solid; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="border-bottom: Black 1.5pt solid; text-align: right"><span style="-sec-ix-redline: true">26,786</span></td><td style="padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 1.5pt solid; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="border-bottom: Black 1.5pt solid; text-align: right"><span style="-sec-ix-redline: true">51,387</span></td><td style="padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 1.5pt solid; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="border-bottom: Black 1.5pt solid; text-align: right"><span style="-sec-ix-redline: true">184,092</span></td><td style="padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> <tr id="xdx_43F_c20210101__20211231_eus-gaap--NetIncomeLoss_zm5hHLtl4fOl" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 2.5pt"><span style="-sec-ix-redline: true">Net loss</span></td><td style="padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 2.5pt double; text-align: left"><span style="-sec-ix-redline: true">$</span></td><td style="border-bottom: Black 2.5pt double; text-align: right"><span style="-sec-ix-redline: true">(11,854,630</span></td><td style="padding-bottom: 2.5pt; text-align: left"><span style="-sec-ix-redline: true">)</span></td><td style="padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 2.5pt double; text-align: left"><span style="-sec-ix-redline: true">$</span></td><td style="border-bottom: Black 2.5pt double; text-align: right"><span style="-sec-ix-redline: true">(1,819,377</span></td><td style="padding-bottom: 2.5pt; text-align: left"><span style="-sec-ix-redline: true">)</span></td><td style="padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 2.5pt double; text-align: left"><span style="-sec-ix-redline: true">$</span></td><td style="border-bottom: Black 2.5pt double; text-align: right"><span style="-sec-ix-redline: true">(1,239,813</span></td><td style="padding-bottom: 2.5pt; text-align: left"><span style="-sec-ix-redline: true">)</span></td><td style="padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 2.5pt double; text-align: left"><span style="-sec-ix-redline: true">$</span></td><td style="border-bottom: Black 2.5pt double; text-align: right"><span style="-sec-ix-redline: true">(15,194,860</span></td><td style="padding-bottom: 2.5pt; text-align: left"><span style="-sec-ix-redline: true">)</span></td><td style="padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 2.5pt double; text-align: left"><span style="-sec-ix-redline: true">$</span></td><td style="border-bottom: Black 2.5pt double; text-align: right"><span style="-sec-ix-redline: true">(30,108,680</span></td><td style="padding-bottom: 2.5pt; text-align: left"><span style="-sec-ix-redline: true">)</span></td></tr> </table> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt; width: 100%"><tr style="vertical-align: top; text-align: justify"> <td style="width: 15pt; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><sup id="xdx_F04_zhcXx1XYnBh2">(1)</sup></span></span></td><td style="width: 5pt"></td><td style="text-align: justify"><span style="-sec-ix-redline: true"><span id="xdx_F17_zwYqioCzFP4g" style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Includes goodwill impairment $<span class="xdx_phnt_RGlzY2xvc3VyZSAtIFNjaGVkdWxlIG9mIFNlZ21lbnQgUmVwb3J0aW5nIE5ldCAoTG9zcykgSW5jb21lIChEZXRhaWxzKSAoUGFyZW50aGV0aWNhbCkA" id="xdx_90D_ecustom--GoodwillImpairmentLosses_c20220101__20221231__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__custom--DroneAndSaaSMember_zCGCaOpR4qpc" title="Good will impairment">41,687,871</span> for the Drone and SaaS reporting segments</span></span></td> </tr></table> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt; width: 100%"><tr style="vertical-align: top; text-align: justify"> <td style="width: 15pt; text-align: right"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><sup id="xdx_F07_zWR9Ypvj1MYb">(2)</sup></span></span></td><td style="width: 5pt"></td><td style="text-align: justify"><span style="-sec-ix-redline: true"><span id="xdx_F16_zfthdaecxxuj" style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Includes goodwill impairment $<span class="xdx_phnt_RGlzY2xvc3VyZSAtIFNjaGVkdWxlIG9mIFNlZ21lbnQgUmVwb3J0aW5nIE5ldCAoTG9zcykgSW5jb21lIChEZXRhaWxzKSAoUGFyZW50aGV0aWNhbCkA" id="xdx_903_ecustom--GoodwillImpairmentLosses_c20220101__20221231__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__custom--SaaSMember_zI7jC2Nqnpad" title="Good will impairment">12,357,921</span> for the SaaS reporting segment</span></span></td> </tr></table> 9840321 8655434 598670 19094425 4762888 5086993 1026427 10876308 -10177362 -22004223 10958 -32106210 -64276837 6416717 -356095 -30893 -6615 6023114 -3760645 -22360318 -19935 -32112825 -58253723 2428858 6793727 538367 9760952 1474368 3303286 727054 5504708 -11976556 -1803370 -1266599 -15246247 -30292772 121926 -16007 26786 51387 184092 -11854630 -1819377 -1239813 -15194860 -30108680 41687871 12357921 <p id="xdx_899_eus-gaap--ScheduleOfRevenuesFromExternalCustomersAndLongLivedAssetsByGeographicalAreasTableTextBlock_zEKN6UnkA7J" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="display: none; font-family: Times New Roman, Times, Serif; font-size: 10pt"> <span id="xdx_8B8_zTJwoucHEe19">Schedule of Segment Revenues by Geographic Area</span></span></span></p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td><span style="-sec-ix-redline: true"> </span></td><td style="font-weight: bold; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td colspan="2" id="xdx_4B5_us-gaap--StatementBusinessSegmentsAxis_custom--DronesMember_zeCrKrsKtgw4" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"><span style="-sec-ix-redline: true">Drones</span></td><td style="padding-bottom: 1.5pt; font-weight: bold"><span style="-sec-ix-redline: true"> </span></td><td style="font-weight: bold; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td colspan="2" id="xdx_4B6_us-gaap--StatementBusinessSegmentsAxis_custom--SensorsMember_zP37hLRmniol" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"><span style="-sec-ix-redline: true">Sensors</span></td><td style="padding-bottom: 1.5pt; font-weight: bold"><span style="-sec-ix-redline: true"> </span></td><td style="font-weight: bold; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td colspan="2" id="xdx_4B4_us-gaap--StatementBusinessSegmentsAxis_custom--SaaSMember_zX0fnjaBWTAe" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"><span style="-sec-ix-redline: true">SaaS</span></td><td style="padding-bottom: 1.5pt; font-weight: bold"><span style="-sec-ix-redline: true"> </span></td><td style="font-weight: bold; padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td colspan="2" id="xdx_4BC_z8vQdj60e4e" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"><span style="-sec-ix-redline: true">Total</span></td><td style="padding-bottom: 1.5pt; font-weight: bold"><span style="-sec-ix-redline: true"> </span></td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-weight: bold"><span style="-sec-ix-redline: true">Year ended December 31, 2022</span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> <tr id="xdx_434_c20220101__20221231__srt--StatementGeographicalAxis__srt--NorthAmericaMember_eus-gaap--Revenues_ziOyDHDEozbg" style="vertical-align: bottom; background-color: White"> <td style="width: 44%; text-align: left"><span style="-sec-ix-redline: true">North America</span></td><td style="width: 2%"><span style="-sec-ix-redline: true"> </span></td> <td style="width: 1%; text-align: left"><span style="-sec-ix-redline: true">$</span></td><td style="width: 10%; text-align: right"><span style="-sec-ix-redline: true">5,320,034</span></td><td style="width: 1%; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="width: 2%"><span style="-sec-ix-redline: true"> </span></td> <td style="width: 1%; text-align: left"><span style="-sec-ix-redline: true">$</span></td><td style="width: 10%; text-align: right"><span style="-sec-ix-redline: true">3,173,347</span></td><td style="width: 1%; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="width: 2%"><span style="-sec-ix-redline: true"> </span></td> <td style="width: 1%; text-align: left"><span style="-sec-ix-redline: true">$</span></td><td style="width: 10%; text-align: right"><span style="-sec-ix-redline: true">598,670</span></td><td style="width: 1%; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="width: 2%"><span style="-sec-ix-redline: true"> </span></td> <td style="width: 1%; text-align: left"><span style="-sec-ix-redline: true">$</span></td><td style="width: 10%; text-align: right"><span style="-sec-ix-redline: true">9,092,051</span></td><td style="width: 1%; text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> <tr id="xdx_437_c20220101__20221231__srt--StatementGeographicalAxis__custom--EuropeMiddleEastAndAfricaMember_eus-gaap--Revenues_zscwgaruLYZf" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left"><span style="-sec-ix-redline: true">Europe, Middle East and Africa</span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true">3,537,463</span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true">3,309,039</span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true"><span style="-sec-ix-hidden: xdx2ixbrl4738">—</span></span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true">6,846,502</span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> <tr id="xdx_437_c20220101__20221231__srt--StatementGeographicalAxis__srt--AsiaPacificMember_eus-gaap--Revenues_zbeohxINMPmi" style="vertical-align: bottom; background-color: White"> <td style="text-align: left"><span style="-sec-ix-redline: true">Asia Pacific</span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true">982,824</span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true">1,756,253</span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true"><span style="-sec-ix-hidden: xdx2ixbrl4743">—</span></span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true">2,739,077</span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> <tr id="xdx_430_c20220101__20221231__srt--StatementGeographicalAxis__custom--OtherGeographicAreaMember_eus-gaap--Revenues_zHp89i9EwDe7" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-bottom: 1.5pt"><span style="-sec-ix-redline: true">Other</span></td><td style="padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 1.5pt solid; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="border-bottom: Black 1.5pt solid; text-align: right"><span style="-sec-ix-redline: true"><span style="-sec-ix-hidden: xdx2ixbrl4746">—</span></span></td><td style="padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 1.5pt solid; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="border-bottom: Black 1.5pt solid; text-align: right"><span style="-sec-ix-redline: true">416,795</span></td><td style="padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 1.5pt solid; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="border-bottom: Black 1.5pt solid; text-align: right"><span style="-sec-ix-redline: true"><span style="-sec-ix-hidden: xdx2ixbrl4748">—</span></span></td><td style="padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 1.5pt solid; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="border-bottom: Black 1.5pt solid; text-align: right"><span style="-sec-ix-redline: true">416,795</span></td><td style="padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> <tr id="xdx_437_c20220101__20221231_eus-gaap--Revenues_zEwO4C1VStud" style="vertical-align: bottom; background-color: White"> <td style="padding-left: 10pt; padding-bottom: 2.5pt"><span style="-sec-ix-redline: true">Total</span></td><td style="padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 2.5pt double; text-align: left"><span style="-sec-ix-redline: true">$</span></td><td style="border-bottom: Black 2.5pt double; text-align: right"><span style="-sec-ix-redline: true">9,840,321</span></td><td style="padding-bottom: 2.5pt; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 2.5pt double; text-align: left"><span style="-sec-ix-redline: true">$</span></td><td style="border-bottom: Black 2.5pt double; text-align: right"><span style="-sec-ix-redline: true">8,655,434</span></td><td style="padding-bottom: 2.5pt; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 2.5pt double; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="border-bottom: Black 2.5pt double; text-align: right"><span style="-sec-ix-redline: true">598,670</span></td><td style="padding-bottom: 2.5pt; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 2.5pt double; text-align: left"><span style="-sec-ix-redline: true">$</span></td><td style="border-bottom: Black 2.5pt double; text-align: right"><span style="-sec-ix-redline: true">19,094,425</span></td><td style="padding-bottom: 2.5pt; text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td><span style="-sec-ix-redline: true"> </span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-weight: bold"><span style="-sec-ix-redline: true">Year ended December 31, 2021</span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> <tr id="xdx_435_c20210101__20211231__srt--StatementGeographicalAxis__srt--NorthAmericaMember_eus-gaap--Revenues_zKR8RINsuESa" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left"><span style="-sec-ix-redline: true">North America</span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true">$</span></td><td style="text-align: right"><span style="-sec-ix-redline: true">527,292</span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true">$</span></td><td style="text-align: right"><span style="-sec-ix-redline: true">2,235,143</span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true">$</span></td><td style="text-align: right"><span style="-sec-ix-redline: true">538,367</span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true">$</span></td><td style="text-align: right"><span style="-sec-ix-redline: true">3,300,802</span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> <tr id="xdx_436_c20210101__20211231__srt--StatementGeographicalAxis__custom--EuropeMiddleEastAndAfricaMember_eus-gaap--Revenues_zAhNveO7mc9k" style="vertical-align: bottom; background-color: White"> <td style="text-align: left"><span style="-sec-ix-redline: true">Europe, Middle East and Africa</span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true">1,074,413</span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true">2,587,399</span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true"><span style="-sec-ix-hidden: xdx2ixbrl4763">—</span></span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true">3,661,812</span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> <tr id="xdx_43D_c20210101__20211231__srt--StatementGeographicalAxis__srt--AsiaPacificMember_eus-gaap--Revenues_zFqVswMTrSe9" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left"><span style="-sec-ix-redline: true">Asia Pacific</span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true">257,021</span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true">1,224,719</span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true"><span style="-sec-ix-hidden: xdx2ixbrl4768">—</span></span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td><span style="-sec-ix-redline: true"> </span></td> <td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="text-align: right"><span style="-sec-ix-redline: true">1,481,740</span></td><td style="text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> <tr id="xdx_43D_c20210101__20211231__srt--StatementGeographicalAxis__custom--OtherGeographicAreaMember_eus-gaap--Revenues_zgs07GTAngb8" style="vertical-align: bottom; background-color: White"> <td style="padding-bottom: 1.5pt"><span style="-sec-ix-redline: true">Other</span></td><td style="padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 1.5pt solid; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="border-bottom: Black 1.5pt solid; text-align: right"><span style="-sec-ix-redline: true">570,132</span></td><td style="padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 1.5pt solid; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="border-bottom: Black 1.5pt solid; text-align: right"><span style="-sec-ix-redline: true">746,466</span></td><td style="padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 1.5pt solid; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="border-bottom: Black 1.5pt solid; text-align: right"><span style="-sec-ix-redline: true"><span style="-sec-ix-hidden: xdx2ixbrl4773">—</span></span></td><td style="padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="padding-bottom: 1.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 1.5pt solid; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="border-bottom: Black 1.5pt solid; text-align: right"><span style="-sec-ix-redline: true">1,316,598</span></td><td style="padding-bottom: 1.5pt; text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> <tr id="xdx_439_c20210101__20211231_eus-gaap--Revenues_zFLEBZLUO6u4" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-bottom: 2.5pt"><span style="-sec-ix-redline: true">Total</span></td><td style="padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 2.5pt double; text-align: left"><span style="-sec-ix-redline: true">$</span></td><td style="border-bottom: Black 2.5pt double; text-align: right"><span style="-sec-ix-redline: true">2,428,858</span></td><td style="padding-bottom: 2.5pt; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 2.5pt double; text-align: left"><span style="-sec-ix-redline: true">$</span></td><td style="border-bottom: Black 2.5pt double; text-align: right"><span style="-sec-ix-redline: true">6,793,727</span></td><td style="padding-bottom: 2.5pt; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 2.5pt double; text-align: left"><span style="-sec-ix-redline: true">$</span></td><td style="border-bottom: Black 2.5pt double; text-align: right"><span style="-sec-ix-redline: true">538,367</span></td><td style="padding-bottom: 2.5pt; text-align: left"><span style="-sec-ix-redline: true"> </span></td><td style="padding-bottom: 2.5pt"><span style="-sec-ix-redline: true"> </span></td> <td style="border-bottom: Black 2.5pt double; text-align: left"><span style="-sec-ix-redline: true">$</span></td><td style="border-bottom: Black 2.5pt double; text-align: right"><span style="-sec-ix-redline: true">9,760,952</span></td><td style="padding-bottom: 2.5pt; text-align: left"><span style="-sec-ix-redline: true"> </span></td></tr> </table> 5320034 3173347 598670 9092051 3537463 3309039 6846502 982824 1756253 2739077 416795 416795 9840321 8655434 598670 19094425 527292 2235143 538367 3300802 1074413 2587399 3661812 257021 1224719 1481740 570132 746466 1316598 2428858 6793727 538367 9760952 <p id="xdx_809_eus-gaap--SubsequentEventsTextBlock_zw4R14EWWoR8" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Note 18 – <span id="xdx_82B_zr1LDr2fmxx1">Subsequent Events</span></b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0.5in; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">On January 24, 2023, the board of directors (the “Board”) of AgEagle Aerial Systems Inc. (the “Company”) approved and adopted the Second Amended and Restated Bylaws (the “Amended Bylaws”) which became effective immediately. The Amended Bylaws, among other things, lowered the quorum requirement for all meetings of shareholders from the holders of a majority to the holders of 33-1/3%, of the issued and outstanding shares of the Company’s common stock entitled to vote at all such meetings.</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0.5in; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">At a Special Meeting of the Shareholders of AgEagle, held on February 3, 2023 in Miami, Florida, the Company’s shareholders of record as of the close of business on December 9, 2022 and entitled to vote, approved the issuance of shares of the Company’s Common Stock, par value $<span id="xdx_90B_eus-gaap--CommonStockParOrStatedValuePerShare_iI_c20230203__us-gaap--SubsequentEventTypeAxis__us-gaap--SubsequentEventMember_zEcplazY3fD9" title="Common stock, par value">0.001</span> per share (the “Common Stock”), representing more than 20% of the Company’s Common Stock outstanding upon the purchase of Series F convertible preferred stock, par value $<span id="xdx_904_eus-gaap--PreferredStockParOrStatedValuePerShare_iI_c20230203__us-gaap--SubsequentEventTypeAxis__us-gaap--SubsequentEventMember__us-gaap--StatementClassOfStockAxis__custom--SeriesFConvertiblePreferredStockMember_zTj6lYdRwuW4" title="Preferred stock, par value">0.001</span> per share (the “Series F Convertible Preferred Stock”), convertible into shares of Common Stock and warrants exercisable for shares of Common Stock (the “Warrants”), in accordance with NYSE American Rule 713(a)(ii). Since the approval of the reverse stock split proposal required the affirmative vote of a majority of shares issued and outstanding, and the Company has not obtained the requisite vote for approval of the reverse stock split proposal, the only proposal adopted by the shareholders at the Special meeting was the shares issuance proposal.</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0.5in; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">On March 9, 2023, the Company received an Investor Notice to purchase an additional <span id="xdx_90C_eus-gaap--StockIssuedDuringPeriodSharesConversionOfConvertibleSecurities_c20230309__20230309__us-gaap--SubsequentEventTypeAxis__us-gaap--SubsequentEventMember__us-gaap--StatementClassOfStockAxis__custom--AdditionalSeriesFPreferredStockMember_zcfdTSb0MnCe" title="Number of convertible preferred stock issued">3,000</span> shares of Series F Convertible Preferred (the “Additional Series F Preferred”) convertible into <span id="xdx_90D_eus-gaap--ConvertiblePreferredStockSharesIssuedUponConversion_iI_c20230309__us-gaap--SubsequentEventTypeAxis__us-gaap--SubsequentEventMember__us-gaap--StatementClassOfStockAxis__custom--AdditionalSeriesFPreferredStockMember_zsCQBTkiUoS2" title="Conversion of preferred stock">2,381</span> shares of the Company’s Common Stock per $<span id="xdx_90E_eus-gaap--PreferredStockParOrStatedValuePerShare_iI_c20230309__us-gaap--SubsequentEventTypeAxis__us-gaap--SubsequentEventMember__us-gaap--StatementClassOfStockAxis__custom--AdditionalSeriesFConvertiblePreferredStockMember_zi8xEYJJI873" title="Preferred stock, par value">1,000</span> Stated Value per share of Preferred Stock, at a conversion price of $<span id="xdx_901_eus-gaap--PreferredStockConvertibleConversionPrice_iI_c20230309__us-gaap--SubsequentEventTypeAxis__us-gaap--SubsequentEventMember__us-gaap--StatementEquityComponentsAxis__custom--AdditionalSeriesFPreferredStockMember_zfw8t2YDnDa9" title="Preferred stock conversion price">0.42</span> per share and associated Common Stock warrant to purchase up to <span id="xdx_908_eus-gaap--ClassOfWarrantOrRightNumberOfSecuritiesCalledByEachWarrantOrRight_iI_c20230309__us-gaap--SubsequentEventTypeAxis__us-gaap--SubsequentEventMember__us-gaap--StatementEquityComponentsAxis__custom--AdditionalWarrantsMember_zVRYdhcofj24" title="Warrants to purchase common stock">7,142,715</span> shares of Common Stock at the exercise price of $<span id="xdx_90C_eus-gaap--ClassOfWarrantOrRightExercisePriceOfWarrantsOrRights1_iI_pid_c20230309__us-gaap--SubsequentEventTypeAxis__us-gaap--SubsequentEventMember__us-gaap--StatementEquityComponentsAxis__custom--AdditionalWarrantsMember_zAnB420p6s8l" title="Common Stock warrant to purchase exercise price">0.42</span> per share warrant (the “Additional Warrant”) for an aggregate purchase price of $<span id="xdx_905_eus-gaap--WarrantsAndRightsOutstanding_iI_c20230309__us-gaap--SubsequentEventTypeAxis__us-gaap--SubsequentEventMember__us-gaap--StatementEquityComponentsAxis__custom--AdditionalWarrantsMember_zTopzmSzuL4l" title="Common stock warrant to purchase aggregate price">3,000,000</span>. The Additional Warrant is exercisable upon issuance and has a three-year term. On March 10, 2023, the Company issued and sold the Additional Series F Preferred and the Additional Warrant.</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Note 18 – Subsequent Events-Continued</b></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0.5in; text-align: justify"><span style="-sec-ix-redline: true"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The Additional Series F Preferred and the Additional Warrant were issued in reliance upon the exemption from registration provided by Section 4(a)(2) of the Securities Act. Neither the Additional Series F Preferred nor the Additional Warrant has been registered under the Securities Act, or applicable state securities laws, and none may be offered or sold in the United States absent registration under the Securities Act or an exemption from such registration requirements. The Company is obligated to file a registration statement on Form S-3 (or Form S-1, if the Company is not eligible to use a Form S-3) to register the shares underlying the Additional Series F Preferred and the Additional Warrant no later than ten days after filing the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2022.</span></span></p> 0.001 0.001 3000 2381 1000 0.42 7142715 0.42 3000000 Reflects the exercise price after the Down Round Trigger events on December 6, 2022, March 9, 2023, and June 6, 2023 (see Note 7). Reflects the exercise price after the Down Round Trigger event on December 6, 2022 (see Notes 9 and 10). Includes goodwill impairment $41,687,871 for the Drone and SaaS reporting segments Includes goodwill impairment $12,357,921 for the SaaS reporting segment