AgEagle Aerial Systems replaces auditor WithumSmith+Brown with Grassi & Co.

AgEagle Aerial Systems Inc. (NYSE American:UAVS), a small-cap drone technology company with a market capitalization of $16.57 million, announced a change in its independent registered public accounting firm, according to a statement filed with the Securities and Exchange Commission. According to InvestingPro data, the company maintains impressive gross profit margins of 49.2% despite challenging market conditions.

On July 2, the Audit Committee of the Board of Directors dismissed WithumSmith+Brown, P.C. as the company’s independent auditor. WithumSmith+Brown had audited AgEagle’s financial statements for the fiscal years ended December 31, 2024 and 2023. The audit reports did not include an adverse opinion or disclaimer of opinion and were not qualified or modified as to uncertainty, audit scope, or accounting principles, except for an explanatory paragraph about the company’s ability to continue as a going concern.

The company stated there were no disagreements with WithumSmith+Brown regarding accounting principles, financial statement disclosure, or auditing scope during the fiscal years ended December 31, 2024 and 2023, or the interim period through July 2, 2025. There were also no reportable events, except for a previously disclosed material weakness in internal controls related to the computation of net loss attributable to common stockholders, which resulted in an understatement of loss per share. This issue, identified during the preparation of interim financial statements for the period ended September 30, 2024, led to the filing of an amended annual report on November 27, 2024.

AgEagle also reported that it provided WithumSmith+Brown with a copy of these disclosures and requested a letter addressed to the SEC stating whether the firm agreed with the statements. This letter was filed as an exhibit to the current report.

On July 2, the Audit Committee approved the appointment of Grassi & Co., CPAs, P.C. as AgEagle’s new independent registered public accounting firm, effective July 9. Grassi & Co. will audit the company’s consolidated financial statements for the year ending December 31, 2025. The company noted that it had not previously consulted with Grassi & Co. on any accounting or auditing matters prior to this engagement.

This information is based on a press release statement included in the company’s SEC filing.

In other recent news, AgEagle Aerial Systems Inc. has announced a series of developments that could interest investors. The company plans to demonstrate AI-enabled autonomous drone operations in collaboration with an unnamed Israeli defense technology firm. This demonstration will showcase the capabilities of AgEagle’s eBee VISION drones in a simulated border-crossing scenario, highlighting their ability to operate with minimal human intervention. In another development, AgEagle has expanded its presence in South Korea by selling two additional eBee X drones, bringing the total number of these drones in the country to over 100 units. This expansion strengthens AgEagle’s position in the Asia-Pacific drone market, which is projected to grow significantly in the coming years.

Additionally, AgEagle has sold a RedEdge-P multispectral sensor to JEPICO Corporation in Japan to monitor and combat red tide pollution. This sensor will aid in the early detection of harmful algal blooms that threaten marine life and coastal economies. Furthermore, AgEagle has issued new preferred stock as part of an agreement with Alpha Capital Anstalt, allowing the firm to purchase up to $25 million of Series F Preferred Stock and accompanying warrants. These transactions, confirmed in a recent SEC filing, reflect AgEagle’s ongoing financial activities and strategic partnerships.

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