Related Party Transactions |
9 Months Ended |
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Sep. 30, 2026 | |
| Related Party Transactions [Abstract] | |
| Related Party Transactions | Note 12 – Related Party Transactions
On March 13, 2026, the Company issued vested shares of common stock to each of three of its independent directors as compensation for the first quarter 2026; the fourth independent director elected to receive cash compensation. The shares were valued at an aggregate of $ and were immediately recognized as stock compensation expense.
On April 1, 2026, the Company paid $217,943 to its investment committee, which includes the Chief Executive Officer and two independent Directors of the Company. The payment is based on a 1% per committee member based on the realized gains from investments during the previous quarter.
In January 2026, the Company received a $2.1 million order in addition to several smaller orders from Teal Drones, which is a subsidiary of Red Cat Holdings, Inc. (“Red Cat”). Red Cat is a related party as Jeffrey Thompson is the Chief Executive Officer of Red Cat and is also on the Board of Directors of Unusual Machines. The order was delivered in the first half of 2026 and includes several different drone components manufactured and sourced from the Company. The Company recognized approximately $4.2 million in revenue from Red Cat for the nine months ended September 30, 2026. The Company had related party receivables of $1.9 million as of September 30, 2026.
On July 24, 2026, the Company entered into a warrant agreement with 8 Consulting LLC, on behalf of Dr. Allan Evans, the Company’s Chief Executive Officer, providing for the issuance of warrants to purchase up to 5,000,000 shares of the Company’s common stock at an exercise price of $25.00 per share, subject to shareholder approval. The warrants have a five-year term and vest in five equal tranches upon achievement of specified stock-price targets of $25, $40, $60, $80, and $100 per share. The warrant award was approved by the Company’s shareholders on October 5, 2026. See Note 14 – Subsequent Events for additional information.
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