Balance Sheets

6 Months Ended

Jun. 30, 2022

Balance Sheets

Balance Sheets

Note 3 – Balance Sheets

Accounts Receivable, net

As of June 30, 2022 and December 31, 2021, accounts receivable, net consist of the following:

	June 30, 2022			December 31, 2021
Accounts receivable	$	3,787,376		$	2,918,435
Less: Provisions for doubtful accounts		(23,985	)		(29,556	)
Accounts receivable, net	$	3,763,391		$	2,888,879

Inventories, Net

As of June 30, 2022 and December 31, 2021, inventories, net consist of the following:

	June 30, 2022			December 31, 2021
Raw materials	$	2,500,642		$	2,862,293
Work-in process		466,994			647,829
Finished goods		2,995,773			833,785
Gross inventories		5,963,409			4,343,907
Less: Provision for obsolescence		(315,009	)		(305,399	)
Inventories, net	$	5,648,400		$	4,038,508

Property and Equipment, Net

As of June 30, 2022 and December 31, 2021, property and equipment, net consist of the following:

	Estimated
	Useful
	Life		June 30,			December 31,
Type	(Years)		2022			2021
Leasehold improvements		3	$	106,837		$	81,993
Production tools and equipment		4-5		303,536			417,779
Computer and office equipment		3-5		575,214			559,110
Furniture		5		79,590			77,971
Drone equipment		3		282,436			95,393
Total Property and equipment				1,347,613			1,232,246
Less: Accumulated depreciation				(504,907	)		(280,118	)
Total Property and equipment, net			$	842,706		$	952,128

For the three and six months ended June 30, 2022 and 2021, depreciation expense is classified within the condensed consolidated statements of operations and comprehensive loss as follows:

	For the Three Months Ended June 30,				For the Six Months Ended June 30,
Type	2022		2021		2022		2021
Cost of sales	$	70,463	$	—	$	135,306	$	—
General and administrative		43,941		34,321		89,833		54,055
Total	$	114,404	$	34,321	$	225,139	$	54,055

Intangible Assets, net

As of June 30, 2022 and December 31, 2021, intangible assets, net, other than goodwill, consist of following:

Name	Estimated Life (Years)		Balance as of December 31, 2021		Additions		Amortization			Balance as of June 30, 2022
Intellectual property/technology		5-7	$	5,427,294	$	—	$	(447,824	)	$	4,979,470
Customer base		3-10		4,047,319		—		(576,032	)		3,471,287
Tradenames and trademarks		5-10		1,985,236		—		(109,792	)		1,875,444
Non-compete agreement		2-4		831,501		—		(254,488	)		577,013
Platform development costs		3		995,880		509,982		(189,585	)		1,316,277
Internal use software costs		3		278,264		420,460		(38,817	)		659,907
Total intangibles assets, net			$	13,565,494	$	930,442	$	(1,616,538	)	$	12,879,398

As of June 30, 2022, the weighted average remaining amortization period in years is 5.06. For the three and six months ended June 30, 2022 and 2021, amortization expense was $851,284 and $1,616,538, respectively, and $288,065 and $400,821, respectively.

 For the following years ending, the future amortization expenses consist of the following:

	For the Years Ending December 31,
	(rest of year) 2022		2023		2024		2025		2026		Thereafter		Total
Intellectual property/ technology	$	447,824	$	866,755	$	808,968	$	808,968	$	808,968	$	1,237,987	$	4,979,470
Customer base		576,031		1,147,263		889,364		141,145		141,145		576,339		3,471,287
Tradenames and trademarks		109,792		215,704		207,944		207,944		207,944		926,116		1,875,444
Non-compete agreement		241,080		335,933		—		—		—		—		577,013
Platform development costs		280,115		560,229		385,402		90,531		—		—		1,316,277
Internal use software costs		116,454		232,908		232,908		77,637		—		—		659,907
Total Intangible Assets, Net	$	1,771,296	$	3,358,792	$	2,524,586	$	1,326,225	$	1,158,057	$	2,740,442	$	12,879,398

Accrued Expenses

As of June 30, 2022 and December 31, 2021, accrued expenses consist of the following:

	June 30, 2022		December 31, 2021
Accrued compensation and related liabilities	$	822,065	$	1,039,979
Accrued professional fees		476,404		267,949
Provision for warranty expense		274,435		286,115
Other		—		307,598
Total accrued expenses	$	1,572,904	$	1,901,641