AgEagle Aerial Systems Inc. Segments Disclosure
Note 16 – Segment Information
Operating segments are defined as components of an entity for which separate financial information is available and that is regularly provided to the Chief Operating Decision Maker (CODM) in deciding how to allocate resources to an individual segment and in assessing performance. The Company’s Chief Executive Officer is the Company’s CODM. The CODM reviews financial information presented by operating segment in making operating decisions, allocating resources, and evaluating financial performance.
The Company conducts the business through the following operating segments: Drones, Sensors, and SaaS.
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.
As of December 31, 2025 and 2024 and for the years then ended, operating information about the Company’s reportable segments consisted of the following:
Goodwill and Assets
| Corporate | Drones | Sensors | SaaS | Total | ||||||||||||||||
| As of December 31, 2025 | ||||||||||||||||||||
| Assets | $ | 30,086,163 | $ | 8,821,960 | $ | 3,321,218 | $ | — | $ | 42,229,341 | ||||||||||
| As of December 31, 2024 | ||||||||||||||||||||
| Goodwill | $ | — | $ | — | $ | 4,459,644 | $ | — | $ | 4,459,644 | ||||||||||
| Assets | $ | 3,804,628 | $ | 7,028,158 | $ | 9,744,152 | $ | 4,616 | $ | 20,581,554 | ||||||||||
Net (Loss) Income
| Corporate | Drones | Sensors | SaaS | Total | ||||||||||||||||
| Year ended December 31, 2025 | ||||||||||||||||||||
| Revenues | $ | — | $ | 7,857,059 | $ | 4,954,023 | $ | — | $ | 12,811,082 | ||||||||||
| Cost of sales | — | 3,385,315 | 2,785,853 | — | 6,171,168 | |||||||||||||||
| Compensation and related expenses | 988,466 | 4,918,999 | 1,668,747 | — | 7,576,212 | |||||||||||||||
| Professional fees | 685,515 | 440,631 | 219,797 | — | 1,345,943 | |||||||||||||||
| Other operating expenses | 2,456,409 | 2,961,431 | 1,130,55 | 107,647 |
| |||||||||||||||
| Impairment charge | — | — | 5,792,932 | — | 5,792,932 | |||||||||||||||
| Loss from operations | $ | (4,130,390 | ) | $ | (3,849,319 | ) | $ | (6,643,361 | ) | $ | (107,647 | ) | $ | (14,730,717 | ) | |||||
| Other income (expense), net | 9,280,600 | (301,905 | ) | 472,305 | — | 9,451,000 | ||||||||||||||
| Net loss | $ | 5,150,210 | $ | (4,151,224 | ) | $ | (6,171,056 | ) | $ | (107,647 | ) | $ | (5,279,717 | ) | ||||||
| Year ended December 31, 2024 | ||||||||||||||||||||
| Revenues | $ | — | $ | 6,410,305 | $ | 6,663,196 | $ | 319,276 | $ | 13,392,777 | ||||||||||
| Cost of sales | — | 3,288,665 | 3,534,296 | 281,180 | 7,104,141 | |||||||||||||||
| Compensation and related expenses | 457,324 | 5,643,297 | 1,325,552 | 827,418 | 8,253,591 | |||||||||||||||
| Professional fees | 656,699 | 794,842 | 634,186 | 271,888 | 2,357,615 | |||||||||||||||
| Other operating expenses | 2,701,359 | 1,946,947 | 451,447 | 270,046 | 5,369,799 | |||||||||||||||
| Impairment charge | — | — | 2,943,000 | — | 2,943,000 | |||||||||||||||
| Loss from operations | $ | (3,815,382 | ) | $ | (5,263,446 | ) | $ | (2,225,285 | ) | $ | (1,331,256 | ) | $ | (12,635,369 | ) | |||||
| Other income (expense), net | (22,331,474 | ) | (60,841 | ) | (13,989 | ) | — | (22,406,304 | ) | |||||||||||
| Net loss | $ | (26,146,856 | ) | $ | (5,324,287 | ) | $ | (2,239,274 | ) | $ | (1,331,256 | ) | $ | (35,041,673 | ) | |||||
Other segment expenses are primarily comprised of software and IT related subscriptions, rent, insurance, listing fees to be public, and other general and administrative costs.
Revenues by Geographic Area
| Drones | Sensors | SaaS | Total | |||||||||||||
| Year ended December 31, 2025 | ||||||||||||||||
| North America | $ | 617,812 | $ | 1,349,831 | $ | — | $ | 1,967,643 | ||||||||
| Latin America | 1,197,747 | 219,947 | — | 1,417,694 | ||||||||||||
| Europe, Middle East and Africa | 5,807,471 | 1,850,191 | — | 7,657,662 | ||||||||||||
| Asia Pacific | 234,029 | 1,368,145 | — | 1,602,174 | ||||||||||||
| Other | — | 165,909 | — | 165,909 | ||||||||||||
| Total | $ | 7,857,059 | $ | 4,954,023 | $ | — | $ | 12,811,082 | ||||||||
| Year ended December 31, 2024 | ||||||||||||||||
| North America | $ | 1,806,630 | $ | 1,956,620 | $ | 310,633 | $ | 4,073,883 | ||||||||
| Latin America | 1,040,864 | 284,509 | 5,185 | 1,330,558 | ||||||||||||
| Europe, Middle East and Africa | 3,299,302 | 2,863,566 | 495 | 6,163,363 | ||||||||||||
| Asia Pacific | 263,509 | 1,367,301 | 2,468 | 1,633,278 | ||||||||||||
| Other | — | 191,200 | 495 | 191,695 | ||||||||||||
| Total | $ | 6,410,305 | $ | 6,663,196 | $ | 319,276 | $ | 13,392,777 | ||||||||
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Mar 31, 2026 | Showing above |
| 2024 | Mar 31, 2025 | |
| 2023 | Apr 1, 2024 | |
| 2022 | Apr 4, 2023 | |
| 2021 | Apr 12, 2022 | |
About Segments Disclosures
Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.
Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.