Note 10 - Retirement Plans

12 Months Ended

Dec. 31, 2025

Notes to Financial Statements

Compensation and Employee Benefit Plans [Text Block]

Note 10 – Retirement Plans

Defined Benefit Plan

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.

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, 2025, provided by allea Ltd.

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 loss. The Defined Benefit Plan’s assets and benefit obligations are remeasured as of December 31 each year.

The net periodic benefit cost of the Defined Benefit Plan for the period from January 1, 2025 through December 31, 2025 was as follows:

		*2025*
Service cost		$	174,215
Interest cost			16,706
Expected return on plan assets			(63,242	)
Amortization of prior service cost (credit)			(2,387	)
Net periodic pension benefit cost		$	125,292

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, 2025 through December 31, 2025 were as follows:

		*2025*
PBO, beginning of period		$	1,914,338
Service cost			183,586
Interest cost			17,604
Plan participation contributions			153,407
Actuarial (gains) / losses			247,715
Benefits paid through plan assets			33,951
Foreign currency exchange rate changes			276,114
PBO, end of period			2,826,715
Component representing future salary increases			(137,061	)
Accumulated benefit obligation (“ABO”), end of period		$	2,689,654

For the period from January 1, 2025 through December 31, 2025, the change in fair value of the Pension Plan assets was as follows:

		*2025*
Fair value of plan assets, beginning of period		$	1,785,911
Expected return on plan assets			66,644
Gain / (losses) on plan assets			82,991
Employer contributions			228,853
Plan participant contributions			153,407
Benefits paid through plan assets			33,951
Foreign currency exchange rate changes			259,935
Fair value of plan assets, end of period		$	2,611,692

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 Defined Benefit Plan is to invest in accordance with the following allocation: 34.1% in equities, 36.3% in bonds, 17.7% in real estate, 7.6% in alternative investments and 4.3% in cash and cash equivalents.

The following table presents the fair value of the Defined Benefit Plan assets by major categories and by levels within the fair value hierarchy as of December 31, 2025:

		*Level 1*				*Level 2*				*Level 3*				*Total*
Cash and equivalents		$	112,303			$	—			$	—			$	112,303
Equity securities			890,587				—				—				890,587
Bonds			948,044				—				—				948,044
Real estate			—				462,270				—				462,270
Alternative investments			—				198,488				—				198,488
Total fair value of plan assets		$	1,950,934			$	660,758			$	—			$	2,611,692

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, 2024:

		*Level 1*				*Level 2*				*Level 3*				*Total*
Cash and equivalents		$	79,032			$	—			$	—			$	79,032
Equity securities			581,766				—				—				581,766
Bonds			647,626				—				—				647,626
Real estate			—				309,543				—				309,543
Alternative investments			—				167,944				—				167,944
Total fair value of plan assets		$	1,308,424			$	477,487			$	—			$	1,785,911

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, 2025:

Fair value of plan assets		$	2,611,692
Less: PBO			(2,826,714	)
Underfunded status, end of period		$	215,021

As of December 31, 2025 and 2024, the underfunded status is included in defined plan obligation on the consolidated balance sheets.

The Defined Benefit Plan has a PBO in excess of Defined Benefit Plan assets. For the period from January 1, 2025 through December 31, 2025, the amounts recognized in accumulated other comprehensive loss related to the defined benefit plan were as follows:

		*2025*
Net prior service (cost) / credit		$	—
Net gain / (loss)			(82,877	)
Accumulated other comprehensive income (loss), net of tax		$	(82,877	)

The net prior service credit included in accumulated other comprehensive loss as of December 31, 2025, is expected to be recognized as a component of net periodic benefit cost during the year ending December 31, 2026.

The actuarial assumptions for the Defined Benefit Plan were as follows:

Benefit obligations:
Discount rate			0.90	%
Estimated rate of compensation increase			1.25	%
Periodic costs:
Discount rate			0.90	%
Estimated rate of compensation increase			1.25	%
Expected long term rate of return on plan assets			3.31	%
Cash balance interest credit rate			0.90	%

The following table shows expected benefit payments from the Defined Benefit Plan for the next five fiscal years and the aggregate five years thereafter:

Year Ending December 31:		*Expected Plan Benefit Payments*
2026		$	431,300
2027			381,003
2028			338,250
2029			304,299
2030			276,636
Thereafter			1,310,247
Total expected benefit payments by the plan		$	3,041,735

Defined Contribution Plan

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, 2025 and 2024, the Company’s employer contribution to the 401(k) Plan totaled $87,244 and $97,845, respectively.