Operating Leases |
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| Operating Leases | Note 7 – Operating Leases
The Company has assumed in the February 2024 business combination of Rotor Riot, a five-year operating lease for approximately 6,900 square feet of warehouse and office space in Orlando, Florida. The lease commenced in November 2023 and expires in October 2028. The Company has valued the ROUA and the associated liability, as of February 16, 2024, at $378,430. Operating lease expense totaled $52,572 and $52,572, respectively for the six months ended June 30, 2026 and 2025. A total of $52,239 was recorded to costs of goods sold for the six months ended June 30, 2026.
In June 2025, Unusual Machines signed a lease agreement for an additional 17,000 square feet of warehouse/office space in Orlando, FL. This space will be used primarily for motor production. The lease commencement date is August 1, 2025 and currently runs through August 21, 2030. The Company has valued the ROUA and the associated liability, as of August 1, 2025, at $973,443. Operating lease expense totaled $126,862 and $0, respectively for the six months ended June 30, 2026 and 2025. A total of $126,862 was recorded to cost of goods sold for the six months ended June 30, 2026.
In October 2025, Unusual Machines signed a lease agreement for an additional 25,000 square feet of warehouse/office space in Orlando, FL. This space will be used primarily for order fulfillment and inventory storage. The lease commencement date is December 1, 2025 and currently runs through December 31, 2030. The Company has valued the ROUA and the associated liability, as of December 1, 2025, at $1,430,522. Operating lease expense totaled $186,430 and $0, respectively for the six months ended June 30, 2026 and 2025.
On December 15, 2025, the Company parent entity entered into a three-year operating lease agreement for an additional 4,500 square feet of space in Orlando, FL. This space will be used for headset production. The lease commenced on January 1, 2026 and expires in December 2028. The Company has valued the ROUA and the associated liability, as of January 1, 2026, at $204,749. Operating lease expense totaled $38,633 and $0, respectively for the six months ended June 30, 2026 and 2025. A total of $37,125 was recorded to cost of goods sold for the six months ended June 30, 2026.
On December 10, 2025, the Company parent entity entered into a three-year operating lease agreement for an additional 9,125 square feet of space in Orlando, FL. This space will be used as the Company’s corporate headquarters. The lease commenced on February 1, 2026 and expires in February 2029. The Company has valued the ROUA and the associated liability, as of February 1, 2026, at $613,657. Operating lease expense totaled $115,786 and $0, respectively for the six months ended June 30, 2026 and 2025.
The Company has assumed in the acquisition of Rotor Lab on September 3, 2025, a three-year operating lease of warehouse and office space in Canberra, Australia. The leased commenced in May 2024 and expires in April 2027. The Company has valued the ROUA and the associated liability, as of September 3, 2025, at $58,524. Operating lease expense totaled $21,175 and $0, respectively for the six months ended June 30, 2026 and 2025.
The Company has no finance leases.
The following is a summary of the operating lease right-of-use assets and liabilities at June 30, 2026 and 2025:
The following is a summary of future lease payments required under the lease agreement:
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