Unusual Machines, Inc.
We are a drone technology company focused exclusively on FPV (first person view) goggles to serve FPV pilots. (Incorporated in Puerto Rico)
Headquartered in Puerto Rico, we intend to build both organically and through strategic acquisitions, by targeting companies within the highly fragmented drone industry that have valuable intellectual property, revenue generating customers, and exceptional teams.
On Nov. 21, 2022, we entered into a Share Purchase Agreement with Red Cat Holdings, Inc. and Jeffrey Thompson, the founder and Chief Executive Officer of Red Cat, in which we agreed to purchase Red Cat’s consumer business consisting of Fat Shark and Rotor Riot. Fat Shark and Rotor Riot are in the business of designing and marketing consumer drones and first-person-view (“FPV”) goggles. Rotor Riot is also a licensed authorized reseller of consumer drones manufactured by third-parties. The purchase price: $18 million
Fat Shark is a leader in FPV, designing and manufacturing ultra-low latency FPV video goggles for drone pilots, which it markets towards retail distributors, including Rotor Riot. Rotor Riot is a rapidly growing e-commerce marketplace, backed by the largest community of FPV drone pilots in the world, and markets drones and drone-related products including Fat Shark goggles and competitor offerings, to end users of the drones and drone products, including drone enthusiasts, hobbyists and competitive racers. Over the next two years, we expect that these businesses will continue to excel in the consumer FPV market, while expanding into new enterprise verticals like public safety and drone delivery. This is part of our vision to enable people to be part of the robotics revolution.
Fat Shark and Rotor Riot principally operate in the drone FPV segment of the industry. This segment focuses on drones piloted with wearable display devices. These are head mounted displays (“HMDs”) or goggles for drone pilots. These goggles give pilots FPV perspective to control their drone in flight. This is a unique experience where the pilot is interacting with an aircraft through visual immersion. In this augmented reality (AR), the pilot sees only what the drone sees, as if sitting in the pilot seat. This experience is accomplished by live streaming footage from a camera mounted on the nose of the drone directly into specially designed goggles worn by the pilot. The image is transmitted via radio (traditionally analog but increasingly digital) to the pilot. The drone remote control unit, the drone, and the FPV goggles are all interconnected via radio. This effect requires sophisticated electronics that transmit visual information with sufficient speed and reliability to allow pilot control over the drone in real-time. Pilots routinely achieve speeds of over 90 mph in racing and other mission critical applications.
There are three common categories of FPV flight – freestyle flight, racing, and aerial photography. In freestyle, the pilot navigates around obstacles focused on acrobatics and exploring the environment around the aircraft through the HMD. This type of flight can be used for public safety as well as package delivery. FPV racing describes a growing spectator sport where pilots fly their drones in competitions through a series of obstacles, flags, and gates in a racetrack. Aerial photography is the process of viewing and recording a subject matter from the air from the viewpoint of the pilot.
**Note: Revenue and net loss figures are for the year ended Dec. 31, 2022.
(Note: Unusual Machines, Inc. increased its IPO’s size by 50 percent to 1.5 million shares – up from 1.0 million shares – and kept the price range at $4.00 to $6.00 – to raise $7.5 million, according to an S-1/A filing dated Aug. 7, 2023. In the same filing on Aug. 7, 2023, Unusual Machines added Dominari Securities as a co-manager to work with Maxim Group, the sole book-runner.)
(Note: Unusual Machines, Inc., cut the size of its IPO in half on June 14, 2023, according to an S-1/A filing: 1.0 million shares – down from 2.0 million shares – and a price range of $4.00 to $6.00 – replacing the assumed IPO price of $5.00 – to raise $5.0 million. Unusual Machines also changed its sole book-runner to Maxim Group, which replaced ThinkEquity. On June 14, 2023, Unusual Machines also updated its financial statements through March 31, 2023. Unusual Machines, Inc. filed its S-1 and its S-1/A on the same day: March 14, 2023. )
|Industry:||Drone Services - Radio & TV Broadcasting Services & Equipment|
|Address||151 Calle De San Francisco Ste. 200 PMB 2106 San Juan, Puerto Rico 00901-1607|
|Phone Number||+1 855-921-4600|
|View Prospectus:||Unusual Machines, Inc.|
|Revenues||$4.89 mil (last 12 months)|
|Net Income||$-2.68 mil (last 12 months)|
|Price range||$4.00 - $6.00|
|Est. $ Volume||$7.5 mil|
|Manager / Joint Managers||Maxim Group|
|Expected To Trade:|
|Quiet Period Expiration Date:||Available only to Subscribers|
|Lock-Up Period Expiration Date:||Available only to Subscribers|
|SCOOP Rating||Available only to Subscribers|
|Rating Change||Available only to Subscribers|