AgEagle Aerial Systems (UAVS) 10-Q 18 May 18 2017 Q1 Quarterly report Financial data

Document And Entity Information

Document And Entity Information - shares	3 Months Ended
	Mar. 31, 2018	May 17, 2018
Document And Entity Information [Abstract]
Entity Registrant Name	AgEagle Aerial Systems Inc.
Entity Central Index Key	8,504
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Mar. 31, 2018
Document Fiscal Year Focus	2,017
Document Fiscal Period Focus	Q1
Current Fiscal Year End Date	--12-31
Entity Well-known Seasoned Issuer	No
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Filer Category	Smaller Reporting Company
Entity Common Stock, Shares Outstanding		10,246,566

Consolidated Balance Sheets (Un

Consolidated Balance Sheets (Unaudited) - USD ($)	Mar. 31, 2018	Dec. 31, 2017
Current Assets:
Cash	$ 3,466,745	$ 35,289
Accounts receivable	84	255
Inventory	143,366	158,632
Prepaid expense	117,660	3,384
Total current assets	3,727,855	197,560
Property and equipment, net	34,551	38,703
Investment in unconsolidated investee	1,110,000	75,000
Total assets	4,872,406	311,263
CURRENT LIABILITIES:
Accounts payable	695,823	426,154
Accrued liabilities	19,720	59,354
Accrued interest	4,171	185,335
Payroll liabilities	5,052	5,521
Convertible notes payable	0	1,160,005
Promissory note	125,556	0
Promissory notes - related party	0	131,050
Total current liabilities	850,322	1,967,419
Total liabilities	850,322	1,967,419
COMMITMENTS AND CONTINGENCIES	0	0
STOCKHOLDERS' EQUITY (DEFICIT):
Common stock, $0.001 par value; 250,000,000 shares authorized; 9,832,048 shares issued and outstanding at March 31, 2018. Common stock, $0.0001 par value; 100,000,000 shares authorized; 4,200,000 shares issued and outstanding at December 31, 2017.	9,832	420
Additional paid-in capital	7,812,150	1,939,832
Accumulated deficit	(3,799,905)	(3,596,408)
Total stockholders' equity (deficit)	4,022,084	(1,656,156)
Total liabilities and stockholders' equity (deficit)	4,872,406	$ 311,263
Series B Preferred Stock [Member]
STOCKHOLDERS' EQUITY (DEFICIT):
Preferred stock, $0.001 par value, 25,000,000 shares authorized: Preferred stock Series B, $0.001 par value, 1,764 shares authorized, 8.25 shares issued and outstanding at March 31, 2018. Preferred stock Series C Convertible, $0.001 par value, 10,000 shares authorized, 6,879 shares issued and outstanding at March 31,2018.	0
Series C Convertible Preferred Stock [Member]
STOCKHOLDERS' EQUITY (DEFICIT):
Preferred stock, $0.001 par value, 25,000,000 shares authorized: Preferred stock Series B, $0.001 par value, 1,764 shares authorized, 8.25 shares issued and outstanding at March 31, 2018. Preferred stock Series C Convertible, $0.001 par value, 10,000 shares authorized, 6,879 shares issued and outstanding at March 31,2018.	$ 7

Consolidated Balance Sheets (U3

Consolidated Balance Sheets (Unaudited) (Parenthetical) - $ / shares	Mar. 31, 2018	Dec. 31, 2017
Preferred stock, par value	$ 0.001
Preferred stock, shares authorized	25,000,000
Common stock, par value	$ 0.001	$ 0.0001
Common stock, shares authorized	250,000,000	100,000,000
Common stock, shares issued	9,832,048	4,200,000
Common stock, shares outstanding	9,832,048	4,200,000
Series B Preferred Stock [Member]
Preferred stock, par value	$ 0.001
Preferred stock, shares authorized	1,764
Preferred stock, shares issued	825
Preferred Stock, shares outstanding	825
Series C Convertible Preferred Stock [Member]
Preferred stock, par value	$ 0.001
Preferred stock, shares authorized	10,000
Preferred stock, shares issued	6,879
Preferred Stock, shares outstanding	6,879

Consolidated Statements of Oper

Consolidated Statements of Operations (Unaudited) - USD ($)	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Income Statement [Abstract]
Revenues	$ 29,191	$ 35,199
Cost of sales	23,798	12,431
Gross Profit	5,393	22,768
Operating Expenses:
Selling expenses	4,627	4,157
General and administrative	40,853	66,791
Professional fees	150,585	85,972
Consulting fees - related party	0	1,595
Research and development	476	316
Total operating expenses	196,541	158,831
Loss from operations	(191,148)	(136,063)
Other income (expense):
Other income	15,065	4,654
Interest expense	(27,414)	(41,171)
Total other income (expense)	(203,497)	(36,517)
Loss before Income Taxes	(203,497)	(172,580)
Provision for income taxes	0	0
Net Loss	$ (203,497)	$ (172,580)
Net Loss Per Share - Basic and Diluted	$ (0.04)	$ (0.04)
Weighted Average Number of Shares Outstanding During the Period - Basic and Diluted	4,919,236	4,200,000

Consolidated Statements of Cash

Consolidated Statements of Cash Flows (Unaudited) - USD ($)	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Cash flows from operating activities
Net income (loss)	$ (203,497)	$ (172,580)
Adjustments to reconcile net income (loss) (used in) operating activities:
Depreciation	4,151	4,156
Stock-based compensation	2,491	0
Accretion for debt discounts, warrants and issuance cost	0	18,621
Changes in current assets and liabilities
Accounts receivable	171	14,106
Inventory	15,267	(9,182)
Prepaid expenses and other assets	(114,276)	1,327
Accounts payable	(461,415)	30,949
Accrued liabilities	(39,634)	(74,140)
Accrued interest	27,412	21,730
Accrued payroll liabilities	(469)	(3,621)
Net cash used in operating activities	(769,799)	(168,634)
Cash flows from investing activities
Cash received in reverse merger	256,255	0
Investment in unconsolidated investee	(35,000)	0
Purchase of fixed assets	0	(12,775)
Net cash provided by (used in) investing activities	221,255	(12,775)
Cash flows from financing activities
Issuance of convertible notes payable	0	190,000
Issuance of common stock Series C convertible preferred stock in connection with investment upon merger, net of $20,000 in fees	3,980,000	0
Net cash provided by financing activities	3,980,000	190,000
Net increase in cash	3,431,456	8,591
Cash at beginning of period	35,289	15,887
Cash at end of period	3,466,745	24,478
Non-cash investing and financing activities:
Assets acquired and (liabilities assumed) in reverse merger cash	256,255	0
Assets acquired and (liabilities assumed) in reverse merger accounts payable	(860,812)	0
Net liabilities assumed	(604,557)	0
Investment made in unconsolidated investee	$ 1,000,000	$ 0

Consolidated Statements of Cas6

Consolidated Statements of Cash Flows (Parenthetical)	3 Months Ended
	Mar. 31, 2018USD ($)
Statement of Cash Flows [Abstract]
Reverse merger Fees	$ 20,000

Description of Business

Description of Business	3 Months Ended
	Mar. 31, 2018
Accounting Policies [Abstract]
Description of Business	Note 1 – Description of Business AgEagle Aerial Systems, Inc. (the “Company” and/or “AgEagle”) designs, produces, distributes and supports technologically-advanced small unmanned aerial vehicles (UAVs or drones) that are offered for sale commercially to the precision agriculture industry. AgEagle Sub was founded in 2010 by Bret Chilcott, our President and Chief Executive Officer, as Solutions by Chilcott, LLC, a Kansas limited liability company. In April 2015, Solutions by Chilcott was converted into a corporation and then merged into AgEagle Sub, a newly-formed Nevada corporation. Its first commercially available product was the AgEagle Classic which was followed shortly thereafter by the RAPID System. The Company has improved and matured its initial product, the RX-60 and subsequently the current products are the RX-47 and RX-48. In February 2016, the Company signed a worldwide distribution agreement with Raven Industries, Inc. (“Raven”) under which they can purchase the RX-60 or RX-48 for the agriculture markets for resale through their network of dealers worldwide. Raven and its network of dealers offer the RX-60 and RX-48 systems to the public, including a subscription for a software package that is provided by a third party. The first shipment of our RX-60 system to Raven occurred in March 2016. The Company believes its success has been achieved with its products, stems from its ability to invent and deliver advanced solutions utilizing our proprietary technologies and trade secrets that help farmers, agronomists and other precision agricultural professionals operate more effectively and efficiently. The company’s core technological capabilities, developed over five years of innovation, include a lightweight laminated shell that allows the UAV platform to perform under challenging flying conditions, a camera with a Near Infrared (NIR) filter, a rugged foot launcher (RX-60), and high end software provided by third parties that automates drone flights and provides geo-referenced data. The Company is headquartered in Neodesha, Kansas 66757. Its website address is http://www.ageagle.com. Corporate History; Recent Business Combination The Company was formerly known as Millennium Plastics Corporation and was incorporated in the State of Nevada on March 31, 1999. In August 2006, the Company acquired Midwest Energy, Inc., a Nevada corporation pursuant to a reverse merger. After such merger, Midwest Energy became a wholly-owned subsidiary, and as a result of such merger, the former Midwest Energy stockholders controlled approximately 98% of our outstanding shares of common stock. The Company changed its name to EnerJex Resources, Inc., (“EnerJex”) in connection with this merger, and in November 2007, it changed the name of Midwest Energy (one of our wholly-owned subsidiaries) to EnerJex Kansas, Inc. (“EnerJex Kansas”). All of its operations conducted prior to this merger were through EnerJex Kansas, Inc., Black Sable Energy, LLC, a Texas limited liability company (“Black Sable”) and Black Raven Energy, Inc. a Nevada corporation (“Black Raven”). The Company’s leasehold interests were held in our wholly-owned subsidiaries Black Sable, Working Interest, LLC, EnerJex Kansas and Black Raven. On March 26, 2018 (the “Merger Date), the Company consummated the transactions contemplated by that certain Agreement and Plan of Merger (the “Merger Agreement”), dated October 19, 2017, pursuant to which AgEagle Merger Sub, Inc., a Nevada corporation and our wholly-owned subsidiary, merged with and into AgEagle Aerial Systems, Inc., a privately held company organized under the laws of the state of Nevada (“AgEagle Sub”), with AgEagle Sub surviving as its wholly-owned subsidiary (the “Merger”). In connection with the Merger, the Company changed its name to AgEagle Aerial Systems Inc. and AgEagle Sub changed its name to “Eagle Aerial Systems, Inc.” The Company’s common stock continues to trade on the NYSE American under its new symbol “UAVS” since March 27, 2018. In November 2017, the Company entered into a multi-agreement arrangement with Agribotix, LLC (“Agribotix”), headquartered in Boulder, Colorado, a leading agricultural information processing company providing actionable data to the agriculture industry. See Note 5 for further details about the transaction.

Summary of Accounting Policies

Summary of Accounting Policies	3 Months Ended
	Mar. 31, 2018
Accounting Policies [Abstract]
Summary of Accounting Policies	Note 2 – Summary of Significant Accounting Policies Basis of Presentation The accompanying unaudited condensed financial statements have been prepared in accordance with accounting principles generally accepted in the United States and pursuant to SEC rules and regulations for interim financial information. Accordingly, they do not include all of the information and footnotes required for complete financial statements. In the opinion of management, these condensed consolidated financial statements contain all normal recurring adjustments considered necessary for a fair presentation of the Company’s financial position at March 31, 2018 and December 31, 2017, the results of operations for the three months ended March 31, 2018 and 2017, and cash flows for the three months ended March 31, 2018 and 2017. The results for the three months ended March 31, 2018 and 2017 are not necessarily indicative of the results to be expected for the full year. These statements should be read in conjunction with the Company’s audited financial statements and management’s discussion and analysis included the Company’s annual financial statements for the years ended December 31, 2017 and 2016 included as part of the Form 8-K filed March 29, 2018. Use of Estimates - Fair Value of Financial Instruments - Cash and Cash Equivalents - Receivables and Credit Policy - The Company estimates an allowance for doubtful accounts based upon an evaluation of the current status of receivables, historical experience, and other factors as necessary. It is reasonably possible that the Company’s estimate of the allowance for doubtful accounts will change. The Company determined that no allowance was necessary as of March 31, 2018 and December 31, 2017. Inventories - . Provisions for Inventory Obsolescence – Research and Development - Property and Equipment - Investment in Unconsolidated Investee - Investments—Equity Method and Joint Ventures Shipping Costs - Revenue Recognition and Concentration - The Company generally recognizes revenue on sales to customer, dealer and distributors upon satisfaction of our performance obligations when the goods are shipped. For consignment sales, we recognize revenue when the goods are pulled from consignment inventory. The Company generally ships FOB Shipping Point terms. Shipping documents are used to verify delivery and customer acceptance. The Company assesses whether the sales price is fixed or determinable based on the payment terms associated with the transaction and quantity of drones being purchased. The Company assesses collectability based on the creditworthiness of the customer as determined by evaluations and the customer’s payment history. Additionally, customers are required to place a deposit on each drone ordered. The Company has executed one significant non-exclusive worldwide distributor agreement in 2016 and a dealer agreement whereby the dealer and distributor agreed to purchase AgEagle drones and other related products. Only the non-exclusive worldwide distributor has the right of return within twelve months of purchase up to a certain percentage of the annual sales volume less a restocking fee. As of March 31, 2018, no sales of the Company are subject to this right of return clause per the distributor agreement. Sales concentration information for customers comprising more than 10% of our total net sales such customers is summarized below: Percent of total sales for period ended March 31, Customers 2018 2017 Customer A 31.8% * Customer B 27.8% * Customer C 19.1% * Customer D * 29.5% Customer E * 17.7% Customer F * 10.02% *- Represents less than 10% of total revenue Advertising costs . Earnings Per Share Potentially Dilutive Securities Income Taxes - Accounting for Income Taxes Recently Issued Adopted Accounting Standards In May 2014, the FASB issued Accounting Standards Update (“ASU”) 2014-09, Revenue from Contracts with Customers (Topic 606). This updated guidance supersedes the current revenue recognition guidance, including industry-specific guidance. The updated guidance introduces a five-step model to achieve its core principal of the entity recognizing revenue to depict the transfer of goods or services to customers at an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. This standard provides a single set of guidelines for revenue recognition to be used across all industries and requires additional disclosures. It is effective for annual and interim reporting periods beginning after December 15, 2017. Topic 606 requires revenue to be recognized when promised goods or services are transferred to customers in amounts that reflect the consideration to which the Company expects to be entitled in exchange for those goods or services and recognize revenue under the new standard as costs are incurred. Under previous U.S. generally accepted accounting principles (GAAP), revenue was generally recognized when deliveries were made, performance milestones were attained, or as costs were incurred. The new standard accelerates the timing of when the revenue is recognized, however, it does not change the total amount of revenue recognized on these contracts. The new standard does not affect revenue recognition for purposes of the Company’s sales as each of the Company’s revenue transactions represent a single performance obligation that is satisfied at a point time, as defined in the new ASU. Accordingly, the Company recognizes revenue for these customers at the point in time when the Company’s performance obligation is complete, which is when the customer accepts delivery of the drone. The Company adopted the updated guidance effective January 1, 2018 using the full retrospective method, however the new standard did not have a material impact on our consolidated financial position and consolidated results of operations, as it did not change the manner or timing of recognizing revenue on a majority of our revenue transactions. In January 2016, the FASB issued ASU 2016-01, Financial Instruments: Recognition and Measurement of Financial Assets and Financial Liabilities In February, 2016, FASB issued Account Standards Update 2016-02 – Leases In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments Other recent accounting pronouncements issued by FASB did not or are not believed by management to have a material impact on the Company’s present or future financial statements.

Inventories

Inventories	3 Months Ended
	Mar. 31, 2018
Inventory Disclosure [Abstract]
Inventories	Note 3 — Inventories Inventories consist of the following at: March 31, 2018 December 31, 2017 Raw materials $ 84,930 $ 91,201 Work-in-process 33,053 34,850 Finished goods 25,383 32,581 $ 143,366 $ 158,632

Property and Equipment

Property and Equipment	3 Months Ended
	Mar. 31, 2018
Property, Plant and Equipment [Abstract]
Property and Equipment	Note 4 — Property and Equipment Property and equipment consist of the following at: March 31, 2018 December 31, 2017 Property and equipment $ 108,663 108,664 Less accumulated depreciation (74,112 ) (69,961 ) $ 34,551 $ 38,703 Depreciation expense for the three months ended March 31, 2018 and 2017 was $4,151 and $4,156, respectively.

Investment in Unconsolidated In

Investment in Unconsolidated Investee	3 Months Ended
	Mar. 31, 2018
Equity Method Investments and Joint Ventures [Abstract]
Investment in Unconsolidated Investee	Note 5 —Investment in Unconsolidated Investee In November 2017, AgEagle entered into a multi-agreement arrangement with Agribotix, LLC (“Agribotix”), headquartered in Boulder, Colorado, an agricultural information processing company providing actionable data to the agriculture industry. Agribotix’s platform delivers agricultural intelligence to increase yields and profits using drone-enabled technologies. Agribotix was founded in 2013 by Dr. Tom McKinnon, its Chief Technology Officer. The Company believes that developing a strong working relationship with Agribotix will benefit AgEagle and its shareholders in developing important vertically integrated products and services. Agribotix’s primary product is FarmLens™, a subscription cloud analytics service that processes data, primarily collected with a drone such as the Company’s, and makes such data usable by farmers and agronomists. FarmLens is currently sold by Agribotix as a subscription and offered either standalone or in a bundle with major drone platforms manufactured by leading drone providers like AgEagle, DJI, and senseFly. Agribotix extends the reach of its FarmLens platform by partnering with and directly integrating into offerings by leading agricultural companies like John Deere’s Operations Center and The Climate Corporation’s FieldView. To date, Agribotix has processed agricultural imagery for over 50 different crop types from over 50 countries around the world. The agreements reached between the Company and Agribotix include: • Dealer Agreement whereby the Company appointed Agribotix as a non-exclusive dealer of the Company’s products on a worldwide, best efforts basis. The term of the agreement is for twelve months with marketing and sales commencing on or after January 1, 2018, and automatically renews for one-year periods unless otherwise terminated. Either party may terminate the agreement with 30 days written notice. Both parties agree to provide standard reporting and support services. Agribotix is required to maintain proper insurance and is obligated to standard confidentiality clauses. The Company has the right to audit Agribotix on an annual basis for its business under this agreement. Both parties agreed to standard indemnification clauses. • Distribution and Resale Agreement whereby Agribotix appointed the Company as a non-exclusive distributor of Agribotix products and analytic services including FarmLens on a worldwide, best efforts basis. The term of the agreement is for twelve months and automatically renews for one-year periods unless otherwise terminated. Either party may terminate the agreement with 90 days’ written notice. Both parties agree to provide standard reporting and support services. The Company is required to maintain proper insurance and is obligated to standard confidentiality clauses. Both parties agree to standard indemnification clauses. • Exchange Agreement whereby, to further align interests between the parties, the Company has agreed to exchange shares of the Company’s common stock it receives in the Merger equal to an aggregate value of $1,000,000 for 20% of the equity membership interests of Agribotix. As of the date of the closing of the Merger, 200,000 shares of EnerJex were issued to Agribotix as outlined per the Exchange Agreement. The shares did not affect the Merger exchange ratio, and therefore was not additionally dilutive to the EnerJex shareholders. • As part of the signing of the exchange agreement three promissory notes totaling $110,000 with a 6% per annum interest payable that were executed between Agribotix and the Company in exchange for exclusive dealing until the later of 120 days after the signing date, or the termination date as defined per the exchange agreement has been recorded as part of its’s investment in unconsolidated investee as of the date of close of the Merger Agreement The Company accounts for its investment in Agribotix using the equity method of accounting. The difference between the fair value of the Company’s investment, and the amount of underlying equity in the net assets of Agribotix, totaling approximately $1,489,000 is accounted for as if Agribotix was a consolidated subsidiary and all identifiable assets, including goodwill, were recorded at fair value and amortized, with this amortization recorded in “memo” and the Company’s portion included in its share of earnings of Agribotix. Condensed unaudited summary financial information for Agribotix LLC as of March 31, 2018 and for the three months ended March 31, 2018 is as follows: March 31, 2018 (Unaudited) ASSETS Cash $ 37,645 Accounts receivable 21,151 Property and equipment 9,070 Inventories 4,740 Marketable securities in EnerJex at fair market value 866,000 Total assets $ 938,606 LIABILITIES AND MEMBERS' DEFICIT Accounts payable and accrued expenses $ 103,406 Deferred revenue 9,067 Debt 1,855,913 Members' deficit (1,029,780 ) Total liabilities and members' deficit $ 938,606 For the Three Months Ended March 31, 2018 (Unaudited) STATEMENT OF OPERATIONS Revenues $ 85,897 Cost of sales 49,860 Gross profit 36,037 Operating expenses 139,096 Operating loss (103,059 ) Other (expense) income 178 Net loss (102,881 ) Loss on marketable securities (134,000 ) Comprehensive loss $ (236,881 ) Ownership interest 20 % Share of net loss as of date of investment $ (914 )

Debt

Debt	3 Months Ended
	Mar. 31, 2018
Debt Disclosure [Abstract]
Debt	Note 6 — Debt Convertible Notes Payable On May 6, 2015, the Company closed a private placement pursuant to a subscription agreement whereby two institutional investors (the “2015 Holders”) purchased convertible notes having an aggregate principal amount of $500,000, convertible into common stock of the Company at $2.00 per share and maturing on November 6, 2016. Interest on the notes accrues at a rate of 8% annually and is payable quarterly. It was determined that there were no aggregate beneficial conversion features. On or about March 4, 2016, the Company and the 2015 Holders entered into extension and modification agreements whereby the 2015 Holders agreed to extend the maturity date of the notes to November 6, 2016, and permanently waive all rights and remedies, of whatever nature, with respect to the various defaults that occurred under this subscription agreement and notes, including, without limitation, (I) the Company’s failure to become a public SEC reporting company on or before September 30, 2015, (ii) the Company’s failure to pay interest on the notes, and (iii) modifying and waiving certain participation rights in future financings. For the three months ended March 31, 2018 and 2017, the Company recorded $9,111 and $10,000 of interest expense, respectively. As of the Merger Date, the principal amount of the promissory note of $500,000 and its accrued interest of $114,556 were converted at $1.25 per share into AgEagle common stock of 491,644 shares. On June 6, 2016, the Company closed a private placement pursuant to a subscription agreement whereby an existing institutional investor (the “2016 Holder”) purchased a convertible note having a principal amount of $300,000, convertible into common stock of the Company at $3.00 per share and maturing on June 30, 2017. Interest on the note accrues at a rate of 8% annually and is payable quarterly. It was determined that there were no aggregate beneficial conversion features. For the three months ended March 31, 2018 and 2017, the Company recorded $5,467 and $6,000 of interest expense, respectively. As of the Merger Date, the principal amount of the promissory note of $300,000 and its accrued interest of $42,933 were converted at $1.25 per share into AgEagle common stock of 274,347 shares. On February 3, 2017, the Company closed a private placement pursuant whereby a bridge loan (the “2017 Note A”) agreement was executed with an accredited investor (the “2017 Holder Note A”) to purchase a convertible promissory note with an aggregate principal amount of $175,000, an original issue discount of $25,000, convertible into common stock of the Company at $2.50 per share and maturing 90 days following issuance, or May 4, 2017. After payment of a finder’s fee and other expenses, the Company received net proceeds of $101,250. In addition, the Company also issued to the 2017 Holder Note A warrants to purchase 200,000 shares of the Company’s common stock at an exercise price per share of $2.50. To the extent the entire unpaid principal balance of the note is not paid in full on the maturity date, (i) interest on the unpaid principal balance will accrue from the maturity date at the rate of 18% per annum, and will continue until the date the note is paid in full, and (ii) the Company will issue to the 2017 Holder Note A an additional warrant to purchase 100,000 shares of common stock for each ninety (90) calendar day period that the unpaid principal balance of the note and any accrued interest is not paid in full by such date. The Company had not paid the unpaid balance on May 4, 2017 thereby resulting in a default of the loan and additional warrants to purchase 100,000 shares of common stock were issued. For the three months ended March 31, 2018 and 2017, the Company recorded $7,077 and $4,833, respectively. As of the date of the merger March 26, 2018, the principal amount of the promissory note of $175,000 and its accrued interest of $35,642 were converted at $2.50 per share into AgEagle common stock of 84,257 shares. On July 2017, the Company closed a private placement pursuant to a subscription agreement whereby an existing institutional investor (the “2017 Note B”) purchased a convertible note having a principal amount of $100,005, convertible into common stock of the Company at $2.00 per share and maturing on February 28, 2018. Interest on the note accrues at a rate of 8% annually payable upon maturity. It was determined that there were no aggregate beneficial conversion features. For the three months ended March 31, 2018, the Company recorded $1,822 of interest expense. As of the date of the Merger Date, the principal amount of the promissory note of $100,005 and its accrued interest of $5,600 were converted at $1.25 per share into AgEagle common stock of 84,484 shares. On September 2017, the Company closed a private placement pursuant to a subscription agreement whereby an existing institutional investor (the “2017 Note C”) purchased a convertible note having a principal amount of $35,000, convertible into common stock of the Company at $2.00 per share and maturing on February 28, 2018. Interest on the note accrues at a rate of 8% annually payable upon maturity. It was determined that there were no aggregate beneficial conversion features. For the three months ended March 31, 2018, the Company recorded $638 of interest expense. As a date of the Merger Date, the principal amount of the promissory note of $35,000 and the accrued interest of $1,369 were converted at $1.25 per share into AgEagle common stock of 29,095 shares. On October 2017, the Company closed a private placement pursuant to a subscription agreement whereby an existing institutional investor purchased a convertible note having a principal amount of $50,000, (the “2017 Note D”) convertible into common stock of the Company at $2.00 per share and maturing on February 28, 2018. Interest on the note accrues at a rate of 8% annually payable upon maturity. It was determined that there were no aggregate beneficial conversion features. For the three months ended March 31, 2018, the Company recorded $911 of interest expense. As a date of the Merger Date, the principal of $50,000 and the accrued interest of $1,722 were converted at $1.25 per share into AgEagle common stock of 41,378 shares. Promissory Notes - Related Parties On December 15, 2016, the Company issued a promissory note with an aggregate principal amount of $30,000 to a related party. On January 24, 2017, the Company issued a 2 nd rd On March 5, 2017, the Company issued a promissory note with an aggregate principal amount of $10,000 to a related party. On May 15, 2017, the Company issued a 2 nd rd rd As of the date of the Merger Date, all the AgEagle common shares issued in connection with conversion of debt noted above were subsequently converted into EnerJex shares and then split at a rate of 25 to 1 resulting in a conversion rate of 1.6564 per AgEagle share into a total of a series of EnerJex common stock of 787,891 shares and 1,631 of Series C preferred shares. As part of the liabilities acquired from EnerJex the Company recorded a promissory note for a principal amount of $125,556 and accrued interest of $4,171 payable over twelve months and maturing on March 26, 2019. The total amount outstanding as of March 31, 2018 was $129,727.

Equity

Equity	3 Months Ended
	Mar. 31, 2018
Equity [Abstract]
Equity	Note 7 – Equity Capital Stock Issuances As a result of the Merger all the holders of EnerJex’s 10% Series A Cumulative Redeemable Perpetual Preferred Stock (the “Series A Preferred Stock”) had their shares automatically converted into 896,640 shares of the Company’s common stock. EnerJex’s Series B Convertible Preferred Stock (the “Series B Preferred Stock”) remains outstanding, and 1,623.79 shares of Series C Convertible Preferred Stock (the “Series C Preferred Stock”) are now convertible into 1,060,432 shares of the Company’s common stock. Furthermore, an additional 5,050.60 shares of Series C Preferred Stock, convertible into 3,298,348 shares of the Company’s common stock, were issued to the current holder of Series C Preferred Stock in connection with a $4 million financing of Series C Preferred Stock (the “Financing”) and the conversion and retirement of $425,000 in prior EnerJex promissory notes due and owing to such holder. As of the Merger Date, the former shareholders of AgEagle Sub own approximately 67% of the Company’s common stock (inclusive of the AgEagle Sub assumed stock options and warrants), the former EnerJex holders of common stock, the Series A Preferred Stock, the Series B Preferred Stock and the Series C Preferred Stock, which were outstanding immediately prior to the Financing, collectively own 12.7% of the Company’s common stock on a fully-diluted basis. Options The Board of Directors of the Company has unanimously approved a proposal to adopt and approve the EnerJex 2017 Omnibus Equity Incentive Plan (the “Plan”). The Board of Directors of EnerJex recommended that this proposal be presented to the EnerJex shareholders for approval. The Plan became effective on March 26, 2018 the date of the Merger, and is a comprehensive incentive compensation plan under which the Company can grant equity-based and other incentive awards to officers, employees and directors of, and consultants and advisers to, the Company. The purpose of the Plan is to help the Company attract, motivate and retain such persons and thereby enhance shareholder value. The Company has reserved a total of 2,000,000 shares of common stock for issuance as or under awards to be made under the Plan. To the extent that an award lapses, expires, is canceled, is terminated unexercised or ceases to be exercisable for any reason, or the rights of its holder terminate, any shares subject to such award shall again be available for the grant of a new award. The Plan shall continue in effect, unless sooner terminated, until the tenth (10th) anniversary of the date on which it is adopted by the Board of Directors (except as to awards outstanding on that date). The Board of Directors in its discretion may terminate the Plan at any time with respect to any shares for which awards have not theretofore been granted; provided, however, that the Plan’s termination shall not materially and adversely impair the rights of a holder, without the consent of the holder, with respect to any award previously granted. The number of shares for which awards which are options or SARs may be granted to a participant under the Plan during any calendar year is limited to 500,000. For purposes of qualifying awards as “performance-based” compensation under Code Section 162(m), the maximum amount of cash compensation that may be paid to any person under the Plan in any single calendar year shall be $500,000. On March 31, 2018, the Company issued options to purchase 49,500 shares of common stock to directors of the Company at the fair-market value exercise price of $4.33 per share expiring on March 30, 2023. The Company determined the fair-value of the options to be $156,258. In connection with the issuance of these options the Company recognized no stock compensation expense for the three months ended March 31, 2018 as the vesting period will commence April 1, 2018. On October 4, 2017, the Company issued options to purchase 927,775 shares of common stock to employees and directors, that were approved by the board at an exercise price of $0.06 per share. In connection with the issuance of these options to employees and directors for the three months ended March 31, 2018, the Company recorded $2,491 of stock compensation expense. On March 1, 2015, the Company entered into a strategic consulting agreement with a related party and granted 207,055 stock options exercisable over five years from the grant date at an exercise price per share of $2.60. On October 4, 2017, the Company held a board meeting to approve the modification of the existing 207,055 options to purchase common stock from an exercise price of $2.60 to $0.06 per share. The fair value of options granted during the three months ended March 31, 2018, were determined using the Black-Scholes option valuation model. The expected term of options granted is based on the simplified method in accordance with Securities and Exchange Commission Staff Accounting Bulletin 107, and represents the period of time that options granted are expected to be outstanding. The Company makes assumptions with respect to expected stock price volatility based on the average historical volatility of peers with similar attributes. In addition, the Company determines the risk free rate by selecting the U.S. Treasury with maturities similar to the expected terms of grants, quoted on an investment basis in effect at the time of grant for that business day. The significant weighted average assumptions relating to the valuation of the Company’s stock options granted during the three months ended March 31, 2018 were as follows: March 31, 2018 Dividend yield 0 % Expected life 7 yrs. Expected volatility 78.66 % Risk-free interest rate 2.68 % A summary of the options activity as of March 31, 2018, are as follows: Weighted Weighted Average Average Remaining Aggregate Exercise Contractual Intrinsic Shares Price Term Value Outstanding at January 1, 2018 1,134,830 $ 0.06 8.5 years $ — Granted 49,500 4.33 5.0 years — Outstanding at March 31, 2018 1,184,330 $ 4.19 4.0 years $ — Exercisable at end of the year 786,914 $ 0.06 4.0 years $ — For options granted in 2018, the fair value of the Company’s stock was obtained per the close of market as of March 30, 2018. The future expected stock-based compensation expense expected to be recognized in future years is $171,204. Intrinsic value is measured using the fair market value at the date of exercise (for shares exercised) or at March 31,2018 (for outstanding options), less the applicable exercise price.

Warrants to Purchase Common Sto

Warrants to Purchase Common Stock	3 Months Ended
	Mar. 31, 2018
Notes to Financial Statements
Warrants to Purchase Common Stock	Note 8 – Warrants to Purchase Common Stock As of March 31, 2018, the Company had outstanding, in connection with the issuance of debentures in the prior year, warrants to purchase 828,221 shares of the Company’s common stock at an exercise price of $1.51. All warrants outstanding as of March 31, 2018 are scheduled to expire between February 2, 2024 and October 31, 2024. A summary of activity related to warrants for the three months ended March 31, 2018 follows: Shares Weighted- Average Exercise Price ($) Weighted-Average Remaining Contractual Term Outstanding at December 31, 2017 828,221 $ 1.51 — Outstanding at March 31, 2018 828,221 $ 1.51 6.10 Exercisable at March 31, 2018 828,221 $ 1.51 6.10

Commitments and Contingencies

Commitments and Contingencies	3 Months Ended
	Mar. 31, 2018
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Note 9 – Commitments and Contingencies Operating Leases The Company leases office space in Neodesha, Kansas for $300 a month. The lease terminates on September 30, 2018 with no option to renew unless approved by the city commission of Neodesha. Rent expense was $900 and $900 for the three months ended March 31, 2018 and 2017, respectively. Service Agreements The Company provides a one-year warranty for all units sold to a customer through their exclusive dealer agreement that is included in the price of the product. Based on historical experience, the Company has recorded as an estimate for the warranty accrual expense of $0 for the three-month ended March 31, 2018 and $4,618 for the three months ended March 31, 2017 which represents approximately 1% of sales revenue for the year. The warranty accrual will remain until the product contractual warranty period is over or the Company is required to perform product maintenance on the product as contractually required. Merger Agreement On March 26, 2018, EnerJex Resources, Inc. (“EnerJex”), a Nevada company, consummated the transactions contemplated by that certain Agreement and Plan of Merger, dated October 19, 2017, pursuant to which AgEagle Merger Sub, Inc., a Nevada corporation and a wholly-owned subsidiary of EnerJex, merged with and into AgEagle Aerial Systems, Inc., a privately held company organized under the laws of the state of Nevada (“AgEagle Sub”), with AgEagle Sub surviving as a wholly-owned subsidiary of EnerJex (the “Merger”). In connection with the Merger, EnerJex changed its name to AgEagle Aerial Systems, Inc. (the “Company, “we,” “our,” or “us”) and AgEagle Sub changed its name to “Eagle Aerial Systems, Inc.” Our common stock will continue to trade on the NYSE American under its new symbol “UAVS” commencing on March 27, 2018. As a result of the Merger, through AgEagle Sub, we are now engaged in the business of designing, developing, producing, distributing and supporting technologically-advanced small unmanned aerial vehicles (UAVs or drones) that we supply to the precision agriculture industry. Each share of common stock issued and outstanding and underlying options and warrants of AgEagle Sub outstanding immediately prior to the Merger was exchanged for 1.66 shares of Company common stock (the “Exchange Ratio”). As a result, at the effective time of the Merger Date (the “Effective Time”), 5,439,526 shares of AgEagle Sub’s capital stock, representing all currently outstanding common shares and all other debt or equity securities convertible into common shares (except options and warrants as described below) were automatically converted into 7,944,941 shares of Company common stock. In addition, at the Effective Time, 685,100 outstanding options and 500,000 warrants to purchase shares of AgEagle Sub common stock were assumed by EnerJex and converted into 1,134,830 options and 828,221 warrants to purchase shares of common stock of the Company. All holders of EnerJex’s 10% Series A Cumulative Redeemable Perpetual Preferred Stock (the “Series A Preferred Stock”) had their shares automatically converted into 896,640 shares of the Company’s common stock. EnerJex’s Series B Convertible Preferred Stock (the “Series B Preferred Stock”) remains outstanding, and 1,623.79 shares of Series C Convertible Preferred Stock (the “Series C Preferred Stock”) are now convertible into 1,060,432 shares of Company common stock. Furthermore, an additional 5,050.60 shares of Series C Preferred Stock, convertible into 3,298,348 shares of Company common stock, were issued to the current holder of Series C Preferred Stock in connection with a $4 million financing of Series C Preferred Stock (the “Financing”) and the conversion and retirement of $425,000 in prior EnerJex promissory notes due and owing to such holder. As of the Effective Time, the former shareholders of AgEagle Sub own approximately 67% of the Company’s common stock (inclusive of the AgEagle Sub assumed stock options and warrants), the former EnerJex holders of common stock, the Series A Preferred Stock, the Series B Preferred Stock and the Series C Preferred Stock, which were outstanding immediately prior to the Financing, collectively own 12.7% of the Company’s common stock on a fully-diluted basis. In connection with the Merger, AgEagle waived the requirement for EnerJex to have paid and satisfied in full all outstanding indebtedness of EnerJex such that there would be no continuing liabilities of EnerJex subsequent to the closing of the Merger (“Liability Condition”). In consideration for AgEagle waiving the Liability Condition, the 1,215,278 shares of common stock to be held in escrow (valued at $350,000) owned by certain former principal stockholders, officers and directors of EnerJex to secure losses, if any, that may be suffered by the AgEagle indemnified parties pursuant to the indemnification obligations under the Merger Agreement, were never issued and such former principal stockholders, officers and directors are not entitled to receive such shares. However, such former principal stockholders, officers and directors received, in the aggregate, deferred salaries and fees valued at approximately $297,500. In lieu of payment of the deferred salaries and fees in cash, such amounts have been converted into an aggregate of 1,032,986 shares of Company common stock. Prior to the Merger, EnerJex operated as an oil exploration and production company engaged in the acquisition, development, exploration and production of oil in Eastern Kansas. In connection with the Merger, EnerJex disposed of its principal assets, consisting primarily of its Kansas oil and gas properties.

Related Party Transactions

Related Party Transactions	3 Months Ended
	Mar. 31, 2018
Related Party Transactions [Abstract]
Related Party Transactions	Note 10 — Related Party Transactions The following reflects the related party transactions during the three months ended March 31, 2018. Consulting Agreement The Company issued promissory notes for an aggregate amount of $76,050 (the “Related Party Notes A”) that accrued interest at an annual rate of 8% and were set to mature as of the date of the Merger. For the three months ended March 31, 2018, the Company recorded $1,386 of interest expense and for the three months ended March 31, 2017, $870 of interest expense was recorded. As of the date of the Merger Date, the principal of $76,050 and the accrued interest of $7,239 were converted at $1.25 per share into 110,371 shares of the Company’s common stock. The Company issued promissory notes for an aggregate amount of $55,000 (the “Related Party Notes B”) that accrued interest at an annual rate of 8% and were set to mature as of the date of the Merger. For the three months ended March 31, 2018, the Company recorded $1,002 of interest expense and for the three months ended March 31, 2017, $37 of interest expense was recorded. As of the date of the Merger Date, the principal of $55,000 and the accrued interest of $3,686 were converted at $1.25 per share into 77,769 shares of the Company’s common stock.

Subsequent Events

Subsequent Events	3 Months Ended
	Mar. 31, 2018
Subsequent Events [Abstract]
Subsequent Events	Note 11 – Subsequent Events In April 2018, 8.25 shares of Series B Preferred Stock were converted into 5,388 common shares at a conversion price of $1.53 and 621.86 shares of Series C Preferred Stock was converted into 406,129 common shares at a conversion price of $1.53. On May 11, 2018, we consummated a private placement of 250 shares of Series C Preferred Stock, convertible into 163,400 shares of Company common stock to Alpha Capital Anstalt (“Alpha”). We received a cash payment of $250,000 for the issuance of the Series C Preferred Stock. The Series C Preferred Stock includes a beneficial ownership limitation preventing conversion of shares of Series C Preferred Stock into more than 9.99% of the number of shares of common stock outstanding immediately after giving effect to the issuance of shares of common stock upon conversion of the Series C Preferred Stock.

Summary of Accounting Policies

Summary of Accounting Policies (Policies)	3 Months Ended
	Mar. 31, 2018
Accounting Policies [Abstract]
Basis of Presentation	Basis of Presentation The accompanying unaudited condensed financial statements have been prepared in accordance with accounting principles generally accepted in the United States and pursuant to SEC rules and regulations for interim financial information. Accordingly, they do not include all of the information and footnotes required for complete financial statements. In the opinion of management, these condensed consolidated financial statements contain all normal recurring adjustments considered necessary for a fair presentation of the Company’s financial position at March 31, 2018 and December 31, 2017, the results of operations for the three months ended March 31, 2018 and 2017, and cash flows for the three months ended March 31, 2018 and 2017. The results for the three months ended March 31, 2018 and 2017 are not necessarily indicative of the results to be expected for the full year. These statements should be read in conjunction with the Company’s audited financial statements and management’s discussion and analysis included the Company’s annual financial statements for the years ended December 31, 2017 and 2016 included as part of the Form 8-K filed March 29, 2018.
Use of estimates	Use of Estimates -
Fair Value of Financial Instruments	Fair Value of Financial Instruments -
Cash and Cash Equivalents	Cash and Cash Equivalents -
Receivables and Credit Policy	Receivables and Credit Policy - The Company estimates an allowance for doubtful accounts based upon an evaluation of the current status of receivables, historical experience, and other factors as necessary. It is reasonably possible that the Company’s estimate of the allowance for doubtful accounts will change. The Company determined that no allowance was necessary as of March 31, 2018 and December 31, 2017.
Inventory	Inventories - .
Provisions for Inventory Obsolescence	Provisions for Inventory Obsolescence –
Research and Development	Research and Development -
Property and Equipment	Property and Equipment -
Investment in Unconsolidated Investee	Investment in Unconsolidated Investee - Investments—Equity Method and Joint Ventures
Shipping Costs	Shipping Costs -
Revenue Recognition and Concentration	Revenue Recognition and Concentration - The Company generally recognizes revenue on sales to customer, dealer and distributors upon satisfaction of our performance obligations when the goods are shipped. For consignment sales, we recognize revenue when the goods are pulled from consignment inventory. The Company generally ships FOB Shipping Point terms. Shipping documents are used to verify delivery and customer acceptance. The Company assesses whether the sales price is fixed or determinable based on the payment terms associated with the transaction and quantity of drones being purchased. The Company assesses collectability based on the creditworthiness of the customer as determined by evaluations and the customer’s payment history. Additionally, customers are required to place a deposit on each drone ordered. The Company has executed one significant non-exclusive worldwide distributor agreement in 2016 and a dealer agreement whereby the dealer and distributor agreed to purchase AgEagle drones and other related products. Only the non-exclusive worldwide distributor has the right of return within twelve months of purchase up to a certain percentage of the annual sales volume less a restocking fee. As of March 31, 2018, no sales of the Company are subject to this right of return clause per the distributor agreement. Sales concentration information for customers comprising more than 10% of our total net sales such customers is summarized below: Percent of total sales for period ended March 31, Customers 2018 2017 Customer A 31.8% * Customer B 27.8% * Customer C 19.1% * Customer D * 29.5% Customer E * 17.7% Customer F * 10.02% *- Represents less than 10% of total revenue
Advertising costs	Advertising costs .
Earnings Per Share	Earnings Per Share
Potentially Dilutive Securities	Potentially Dilutive Securities
Income Taxes	Income Taxes - Accounting for Income Taxes
Recently Issued Adopted Accounting Standards	Recently Issued Adopted Accounting Standards In May 2014, the FASB issued Accounting Standards Update (“ASU”) 2014-09, Revenue from Contracts with Customers (Topic 606). This updated guidance supersedes the current revenue recognition guidance, including industry-specific guidance. The updated guidance introduces a five-step model to achieve its core principal of the entity recognizing revenue to depict the transfer of goods or services to customers at an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. This standard provides a single set of guidelines for revenue recognition to be used across all industries and requires additional disclosures. It is effective for annual and interim reporting periods beginning after December 15, 2017. Topic 606 requires revenue to be recognized when promised goods or services are transferred to customers in amounts that reflect the consideration to which the Company expects to be entitled in exchange for those goods or services and recognize revenue under the new standard as costs are incurred. Under previous U.S. generally accepted accounting principles (GAAP), revenue was generally recognized when deliveries were made, performance milestones were attained, or as costs were incurred. The new standard accelerates the timing of when the revenue is recognized, however, it does not change the total amount of revenue recognized on these contracts. The new standard does not affect revenue recognition for purposes of the Company’s sales as each of the Company’s revenue transactions represent a single performance obligation that is satisfied at a point time, as defined in the new ASU. Accordingly, the Company recognizes revenue for these customers at the point in time when the Company’s performance obligation is complete, which is when the customer accepts delivery of the drone. The Company adopted the updated guidance effective January 1, 2018 using the full retrospective method, however the new standard did not have a material impact on our consolidated financial position and consolidated results of operations, as it did not change the manner or timing of recognizing revenue on a majority of our revenue transactions. In January 2016, the FASB issued ASU 2016-01, Financial Instruments: Recognition and Measurement of Financial Assets and Financial Liabilities In February, 2016, FASB issued Account Standards Update 2016-02 – Leases In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments Other recent accounting pronouncements issued by FASB did not or are not believed by management to have a material impact on the Company’s present or future financial statements.

Summary of Accounting Policie19

Summary of Accounting Policies (Tables)	3 Months Ended
	Mar. 31, 2018
Accounting Policies [Abstract]
Sales concentration information	Sales concentration information for customers comprising more than 10% of our total net sales such customers is summarized below: Percent of total sales for period ended March 31, Customers 2018 2017 Customer A 31.8% * Customer B 27.8% * Customer C 19.1% * Customer D * 29.5% Customer E * 17.7% Customer F * 10.02% *- Represents less than 10% of total revenue

Inventories (Tables)

Inventories (Tables)	3 Months Ended
	Mar. 31, 2018
Inventory Disclosure [Abstract]
Inventories	Inventories consist of the following at: March 31, 2018 December 31, 2017 Raw materials $ 84,930 $ 91,201 Work-in-process 33,053 34,850 Finished goods 25,383 32,581 $ 143,366 $ 158,632

Property and Equipment (Tables)

Property and Equipment (Tables)	3 Months Ended
	Mar. 31, 2018
Property, Plant and Equipment [Abstract]
Property and Equipment	Property and equipment consist of the following at: March 31, 2018 December 31, 2017 Property and equipment $ 108,663 108,664 Less accumulated depreciation (74,112 ) (69,961 ) $ 34,551 $ 38,703

Investment in Unconsolidated 22

Investment in Unconsolidated Investee (Tables)	3 Months Ended
	Mar. 31, 2018
Equity Method Investments and Joint Ventures [Abstract]
Business combination	The difference between the fair value of the Company’s investment, and the amount of underlying equity in the net assets of Agribotix, totaling approximately $1,489,000 is accounted for as if Agribotix was a consolidated subsidiary and all identifiable assets, including goodwill, were recorded at fair value and amortized, with this amortization recorded in “memo” and the Company’s portion included in its share of earnings of Agribotix. Condensed unaudited summary financial information for Agribotix LLC as of March 31, 2018 and for the three months ended March 31, 2018 is as follows: March 31, 2018 (Unaudited) ASSETS Cash $ 37,645 Accounts receivable 21,151 Property and equipment 9,070 Inventories 4,740 Marketable securities in EnerJex at fair market value 866,000 Total assets $ 938,606 LIABILITIES AND MEMBERS' DEFICIT Accounts payable and accrued expenses $ 103,406 Deferred revenue 9,067 Debt 1,855,913 Members' deficit (1,029,780 ) Total liabilities and members' deficit $ 938,606 For the Three Months Ended March 31, 2018 (Unaudited) STATEMENT OF OPERATIONS Revenues $ 85,897 Cost of sales 49,860 Gross profit 36,037 Operating expenses 139,096 Operating loss (103,059 ) Other (expense) income 178 Net loss (102,881 ) Loss on marketable securities (134,000 ) Comprehensive loss $ (236,881 ) Ownership interest 20 % Share of net loss as of date of investment $ (914 )

Equity Transactions (Tables)

Equity Transactions (Tables)	3 Months Ended
	Mar. 31, 2018
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions	The significant weighted average assumptions relating to the valuation of the Company’s stock options granted during the three months ended March 31, 2018 were as follows: March 31, 2018 Dividend yield 0 % Expected life 7 yrs. Expected volatility 78.66 % Risk-free interest rate 2.68 %
Summary of Stock Options	A summary of the options activity as of March 31, 2018, are as follows: Weighted Weighted Average Average Remaining Aggregate Exercise Contractual Intrinsic Shares Price Term Value Outstanding at January 1, 2018 1,134,830 $ 0.06 8.5 years $ — Granted 49,500 4.33 5.0 years — Outstanding at March 31, 2018 1,184,330 $ 4.19 4.0 years $ — Exercisable at end of the year 786,914 $ 0.06 4.0 years $ —

Warrants to Purchase Common S24

Warrants to Purchase Common Stock (Tables)	3 Months Ended
	Mar. 31, 2018
Notes to Financial Statements
Summary of activity related to warrants	A summary of activity related to warrants for the three months ended March 31, 2018 follows: Shares Weighted- Average Exercise Price ($) Weighted-Average Remaining Contractual Term Outstanding at December 31, 2017 828,221 $ 1.51 — Outstanding at March 31, 2018 828,221 $ 1.51 6.10 Exercisable at March 31, 2018 828,221 $ 1.51 6.10

Summary of Accounting Policie25

Summary of Accounting Policies (Details) - Sales Revenue, Net [Member]	3 Months Ended
	Mar. 31, 2018		Mar. 31, 2017
Customer A
Concentration percentage	31.80%			[1]
Customer B
Concentration percentage	27.80%			[1]
Customer C
Concentration percentage	19.10%			[1]
Customer D
Concentration percentage		[1]	29.50%
Customer E
Concentration percentage		[1]	17.70%
Customer F
Concentration percentage		[1]	10.02%
[1]	Represents less than 10% of total revenue

Summary of Accounting Policie26

Summary of Accounting Policies (Details Narrative) - USD ($)	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Summary Of Accounting Policies [Line Items]
Estimated obsolescence and shrinkage of inventory	$ 15,369
Research and development costs	476	$ 316
Shipping Costs	952	649
Advertising costs	$ 906	$ 1,036
Warrant [Member]
Summary Of Accounting Policies [Line Items]
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount	828,200	200,000
Option [Member]
Summary Of Accounting Policies [Line Items]
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount	1,184,300	125,000
Series B Preferred Stock [Member]
Summary Of Accounting Policies [Line Items]
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount	623,293
Common Stock [Member]
Summary Of Accounting Policies [Line Items]
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount	4,497,611
Convertible notes [Member]
Summary Of Accounting Policies [Line Items]
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount		511,647
Minimum [Member]
Summary Of Accounting Policies [Line Items]
Property, Plant and Equipment, Useful Life	3 years
Maximum [Member]
Summary Of Accounting Policies [Line Items]
Property, Plant and Equipment, Useful Life	7 years

Inventories (Details)

Inventories (Details) - USD ($)	Mar. 31, 2018	Dec. 31, 2017
Inventory Disclosure [Abstract]
Raw materials	$ 84,930	$ 91,201
Work-in-process	33,053	34,850
Finished goods	25,383	32,581
Total inventory	$ 143,366	$ 158,632

Property and Equipment (Details

Property and Equipment (Details) - USD ($)	Mar. 31, 2018	Dec. 31, 2017
Property, Plant and Equipment [Abstract]
Property and equipment	$ 108,663	$ 108,664
Less accumulated depreciation	(74,112)	(69,961)
Property and equipment, net	$ 34,551	$ 38,703

Property and Equipment (Detai29

Property and Equipment (Details Narrative) - USD ($)	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Property, Plant and Equipment [Abstract]
Depreciation expense	$ 4,151	$ 4,156

Investment in Unconsolidated 30

Investment in Unconsolidated Investee (Details) - USD ($)	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017	Dec. 31, 2017
ASSETS
Property and equipment	$ 34,551		$ 38,703
Inventories	143,366		158,632
Total assets	4,872,406		311,263
LIABILITIES AND MEMBERS' DEFICIT
Members' deficit	4,022,084		$ (1,656,156)
Operating expenses	196,541	$ 158,831
Operating loss	(191,148)	$ (136,063)
Agribotix LLC
ASSETS
Cash	37,645
Accounts receivable	21,151
Property and equipment	9,070
Inventories	4,740
Marketable securities in EnerJex at fair market value	866,000
Total assets	938,606
LIABILITIES AND MEMBERS' DEFICIT
Accounts payable and accrued expenses	103,406
Deferred revenue	9,067
Debt	1,855,913
Members' deficit	(1,029,780)
Total liabilities and members' deficit	938,606
Revenues	85,897
Cost of sales	49,860
Gross profit	36,037
Operating expenses	139,096
Operating loss	(103,059)
Other (expense) income	178
Net loss	(102,881)
Loss on marketable securities	(134,000)
Comprehensive loss	(236,881)
Ownership interest	20
Share of net loss as of date of investment	$ (914)

Investment in Unconsolidated 31

Investment in Unconsolidated Investee (Details Narrative) - USD ($)	3 Months Ended
	Mar. 31, 2018	Dec. 31, 2017
Promissory notes	$ 125,556	$ 0
Common stock issued	9,832,048	4,200,000
Agribotix LLC
Promissory notes	$ 110,000
Interest rate	6.00%
Agreegate value of equity membership interests	$ 1,000,000
Common stock issued	200,000
Investment in Unconsolidated Investee Description	The Company accounts for its investment in Agribotix using the equity method of accounting. The difference between the fair value of the Company’s investment, and the amount of underlying equity in the net assets of Agribotix, totaling approximately $1,489,000 is accounted for as if Agribotix was a consolidated subsidiary and all identifiable assets, including goodwill, were recorded at fair value and amortized, with this amortization recorded in “memo” and the Company’s portion included in its share of earnings of Agribotix

Long-Term Debt (Details Narrati

Long-Term Debt (Details Narrative) - USD ($)

May 04, 2017

Feb. 03, 2017

Jun. 06, 2016

May 06, 2015

Mar. 26, 2018

Sep. 30, 2017

Jul. 31, 2017

Mar. 31, 2018

Mar. 31, 2017

Dec. 31, 2017

Oct. 31, 2017

Jun. 24, 2017

Jun. 15, 2017

May 15, 2017

Mar. 05, 2017

Jan. 24, 2017

Dec. 15, 2016

Debt Instrument [Line Items]

Proceeds from convetible debt

$ 0

$ 190,000

Promissory notes

125,556

$ 0

EnerJex

Debt Instrument [Line Items]

Convertible Notes Payable

$ 129,727

Common stock

787,891

Series C Convertible Preferred Stock [Member]

Debt Instrument [Line Items]

Preffered shares

1,631

Related Party Notes A

Debt Instrument [Line Items]

Share price

$ 2

$ 2

$ 2

Debt Instrument, Interest Rate, Stated Percentage

8.00%

8.00%

8.00%

Interest expenses

$ 1,386

870

Number of shares con version

66,631

Conversion price

$ 1.25

Promissory notes

$ 16,050

$ 30,000

$ 30,000

Related Party Notes B

Debt Instrument [Line Items]

Share price

$ 2

$ 2

$ 2

Debt Instrument, Interest Rate, Stated Percentage

8.00%

8.00%

8.00%

Interest expenses

$ 1,002

37

Number of shares con version

46,949

Conversion price

$ 1.25

Promissory notes

$ 32,000

$ 10,000

$ 10,000

Principal | EnerJex

Debt Instrument [Line Items]

Conversion of debt amount

$ 125,556

Principal | Related Party Notes A

Debt Instrument [Line Items]

Conversion of debt amount

76,050

Principal | Related Party Notes B

Debt Instrument [Line Items]

Conversion of debt amount

55,000

Accrued Interest | EnerJex

Debt Instrument [Line Items]

Conversion of debt amount

4,171

Accrued Interest | Related Party Notes A

Debt Instrument [Line Items]

Conversion of debt amount

7,239

Accrued Interest | Related Party Notes B

Debt Instrument [Line Items]

Conversion of debt amount

3,686

2015 Holders

Debt Instrument [Line Items]

Convertible Notes Payable

$ 500,000

Share price

$ 2

Debt Instrument, Interest Rate, Stated Percentage

8.00%

Maturity date

Nov. 6, 2016

Interest expenses

$ 9,111

10,000

Number of shares con version

491,644

Conversion price

$ 1.25

2015 Holders | Principal

Debt Instrument [Line Items]

Conversion of debt amount

$ 500,000

2015 Holders | Accrued Interest

Debt Instrument [Line Items]

Conversion of debt amount

114,556

2016 Holders

Debt Instrument [Line Items]

Convertible Notes Payable

$ 300,000

Share price

$ 3

Debt Instrument, Interest Rate, Stated Percentage

8.00%

Maturity date

Jun. 30, 2017

Interest expenses

$ 5,467

6,000

Number of shares con version

274,347

Conversion price

$ 1.25

2016 Holders | Principal

Debt Instrument [Line Items]

Conversion of debt amount

$ 300,000

2016 Holders | Accrued Interest

Debt Instrument [Line Items]

Conversion of debt amount

42,933

2017 Holder Note A

Debt Instrument [Line Items]

Convertible Notes Payable

$ 175,000

Original issue discount

$ 25,000

Share price

$ 2.50

Debt Instrument, Interest Rate, Stated Percentage

18.00%

Interest expenses

7,077

$ 4,833

Number of shares con version

84,257

Conversion price

$ 2.50

Proceeds from convetible debt

$ 101,250

Warrants purchase

100,000

200,000

Exercise price

$ 2.50

2017 Holder Note A | Principal

Debt Instrument [Line Items]

Conversion of debt amount

$ 175,000

2017 Holder Note A | Accrued Interest

Debt Instrument [Line Items]

Conversion of debt amount

35,642

2017 Note B

Debt Instrument [Line Items]

Convertible Notes Payable

$ 100,005

Share price

$ 2

Debt Instrument, Interest Rate, Stated Percentage

8.00%

Maturity date

Feb. 28, 2018

Interest expenses

$ 1,822

Number of shares con version

84,484

Conversion price

$ 1.25

2017 Note B | Principal

Debt Instrument [Line Items]

Conversion of debt amount

100,005

2017 Note B | Accrued Interest

Debt Instrument [Line Items]

Conversion of debt amount

$ 5,600

2017 Note C

Debt Instrument [Line Items]

Convertible Notes Payable

$ 35,000

Share price

$ 2

Debt Instrument, Interest Rate, Stated Percentage

8.00%

Maturity date

Feb. 28, 2018

Interest expenses

$ 638

Number of shares con version

29,095

Conversion price

$ 1.25

2017 Note C | Principal

Debt Instrument [Line Items]

Conversion of debt amount

$ 35,000

2017 Note C | Accrued Interest

Debt Instrument [Line Items]

Conversion of debt amount

1,369

2017 Note D

Debt Instrument [Line Items]

Convertible Notes Payable

$ 50,000

Share price

$ 2

Debt Instrument, Interest Rate, Stated Percentage

8.00%

Interest expenses

$ 911

Number of shares con version

41,378

Conversion price

$ 1.25

2017 Note D | Principal

Debt Instrument [Line Items]

Conversion of debt amount

$ 50,000

2017 Note D | Accrued Interest

Debt Instrument [Line Items]

Conversion of debt amount

$ 1,722

Equity (Details)

Equity (Details)	3 Months Ended
	Mar. 31, 2018
Equity [Abstract]
Dividend yield	0.00%
Expected life	7 years
Expected volatility	7866.00%
Risk-free interest rate	2.68%

Equity (Details 1)

Equity (Details 1) - USD ($)	Oct. 04, 2015	May 01, 2015	Mar. 31, 2018	Dec. 31, 2017
Options
Options Outstanding, Beginning Balance			1,134,830
Options Granted			49,500
Options Outstanding, Ending Balance			1,184,330	1,134,830
Options Exercisable at end			786,914
Weighted Avg. Exercise Price
Weighted Avg. Exercise Price Outstanding, Beginning Balance			$ 0.06
Weighted Avg. Exercise Price Granted	$ 0.06	$ 2.60	4.33
Weighted Avg. Exercise Price Outstanding, Ending balance			4.19	$ 0.06
Weighted Avg. Exercise Price Exercisable at end			$ 0.06
Weighted Average Remaining Contractual Term
Weighted Average Remaining Contractual Term Outstanding			4 years	8 months
Weighted Average Remaining Contractual Term Granted		5 years	5 years
Weighted Average Remaining Contractual Term Exercisable at end			4 years
Aggregate Intrinsic Value
Aggregate Intrinsic Value Outstanding, Beginning Balance			$ 0
Aggregate Intrinsic Value Granted			0
Aggregate Intrinsic Value Outstanding, at end			0	$ 0
Aggregate Intrinsic Value Exercisable at end			$ 0

Equity Transactions (Details Na

Equity Transactions (Details Narrative) - USD ($)	Oct. 04, 2015	May 01, 2015	Mar. 31, 2018
Option available under plan			2,000,000
Cash compensation			$ 500,000
Option to purchase stock		$ 207,055
Option granted			49,500
Term		5 years	5 years
Exercise price	$ 0.06	$ 2.60	$ 4.33
Modification of options to purchase common stock	207,055
Stock-based compensation expense			$ 171,204
AgEagle | Series A Preferred Stock [Member]
Common stock issued upon conversion of preferred stock (shares)			896,640
AgEagle | Series C Preferred Stock [Member]
Common stock issued upon conversion of preferred stock (shares)			1,060,432
Preferred stock converted (shares)			1,623.79
Additional Common stock issued upon conversion of preferred stock (shares)			3,298,348
Additional Preferred stock converted (shares)			5,050.60
Financing cost			$ 4,000,000
Retirement of promissory notes cost			425,000
Employees and directors [Member]
Option to purchase stock	$ 927,775		$ 49,500
Exercise price	$ 0.06		$ 4.33
Fair-value of options			$ 156,258
Expiration date			Mar. 30, 2023
Stock-based compensation expense	$ 2,491

Warrants to Purchase Common S36

Warrants to Purchase Common Stock (Details)	3 Months Ended
	Mar. 31, 2018$ / sharesshares
Warrants
Warrants Outstanding, Beginning Balance | shares	828,221
Warrants Outstanding, Ending Balance | shares	828,221
Warrants Exercisable at end | shares	828,221
Weighted Avg. Exercise Price
Weighted Avg. Exercise Price Outstanding, Beginning Balance | $ / shares	$ 1.51
Weighted Avg. Exercise Price Outstanding, Ending balance | $ / shares	1.51
Weighted Avg. Exercise Price Exercisable at end | $ / shares	$ 1.51
Weighted-Average Remaining Contractual Term
Weighted-Average Remaining Contractual Term Outstanding	6 years 1 month 6 days
Weighted-Average Remaining Contractual Term Exercisable at end	6 years 1 month 6 days

Commitments & Contingencies (De

Commitments & Contingencies (Details Narrative) - USD ($)	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017	Dec. 31, 2017
Commitments and Contingencies Disclosure [Line Items]
Operating Leases, Rent Expense	$ 900	$ 900
Periodic payment	$ 300
Lease termination date	Sep. 30, 2018
Warranty accrual expense	$ 0	$ 4,618
Option outstanding	1,184,330		1,134,830
Common stock to be held in escrow , Shares		1,215,278
Common stock to be held in escrow, Value		$ 350,000
AgEagle
Commitments and Contingencies Disclosure [Line Items]
Capital stock oustanding	5,439,526
Common stock conversion	7,944,941
Option outstanding	685,100
Warrants to purchase in connection with common stock	500,000
Conversion of option	1,134,830
Warrants to purchase shares of common stock	828,221
AgEagle | Series A Preferred Stock [Member]
Commitments and Contingencies Disclosure [Line Items]
Common stock issued upon conversion of preferred stock (shares)	896,640
Deferred salaries and fees	$ 297,500
Common stock issued in connection with payment to deferred salaries and fees	1,032,986
AgEagle | Series C Preferred Stock [Member]
Commitments and Contingencies Disclosure [Line Items]
Common stock issued upon conversion of preferred stock (shares)	1,060,432
Preferred stock converted (shares)	1,623.79
Additional Common stock issued upon conversion of preferred stock (shares)	3,298,348
Additional Preferred stock converted (shares)	5,050.60
Financing cost	$ 4,000,000
Retirement of promissory notes cost	$ 425,000

Related Party Transactions (Det

Related Party Transactions (Details Narrative) - USD ($)	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017	Dec. 31, 2017	Jun. 24, 2017	Jun. 15, 2017	May 15, 2017	Mar. 05, 2017	Jan. 24, 2017	Dec. 15, 2016
Promissory notes	$ 125,556		$ 0
Related Party Notes A
Promissory notes				$ 16,050				$ 30,000	$ 30,000
Number of shares con version	66,631
Conversion price	$ 1.25
Related Party Notes A | Principal
Conversion of debt amount	$ 76,050
Related Party Notes A | Accrued Interest
Conversion of debt amount	$ 7,239
Related Party Notes B
Promissory notes					$ 32,000	$ 10,000	$ 10,000
Number of shares con version	46,949
Conversion price	$ 1.25
Related Party Notes B | Principal
Conversion of debt amount	$ 55,000
Related Party Notes B | Accrued Interest
Conversion of debt amount	3,686
Consulting Agreement | Related Party Notes A
Promissory notes	$ 76,050
Accrued interest rate	8.00%
Interest expense	$ 1,386	$ 870
Number of shares con version	110,371
Conversion price	$ 1.25
Consulting Agreement | Related Party Notes A | Principal
Conversion of debt amount	$ 76,050
Consulting Agreement | Related Party Notes A | Accrued Interest
Conversion of debt amount	7,239
Consulting Agreement | Related Party Notes B
Promissory notes	$ 55,000
Accrued interest rate	8.00%
Interest expense	$ 1,002	$ 37
Number of shares con version	77,769
Conversion price	$ 1.25
Consulting Agreement | Related Party Notes B | Principal
Conversion of debt amount	$ 55,000
Consulting Agreement | Related Party Notes B | Accrued Interest
Conversion of debt amount	$ 3,686

Subsequent Events (Details Narr

Subsequent Events (Details Narrative) - USD ($)	May 11, 2018	Apr. 30, 2018	Apr. 20, 2018
Series B Preferred Stock [Member] | Alpha Capital Anstalt [Member]
Common stock issued upon conversion of preferred stock (shares)	163,400
Preferred stock converted (shares)	250
Conversion of debt amount	$ 250,000
Subsequent Event [Member] | Series B Preferred Stock [Member]
Common stock issued upon conversion of preferred stock (shares)			5,388
Preferred stock converted (shares)			8.25
Conversion price		$ 1.53
Subsequent Event [Member] | Series C Preferred Stock [Member]
Common stock issued upon conversion of preferred stock (shares)		406,129
Preferred stock converted (shares)		621.86
Conversion price		$ 1.53