James Manning | PA Images | Getty Images
“Having Don Jr. join our board of advisors gives us the unique expertise we need as we bring drone component manufacturing back to the U.S.,” Uncommon Machines CEO Alan Evans said in a statement. ”
“He brings a wealth of experience and I look forward to his advice and role within the company as we continue to build our business,” said Evans, whose Orlando, Florida-based company has a market capitalization of just under $50 million. .
“The need for drones is clear,” Trump Jr. said in a statement.
“I love what Extraordinary Machines is doing to bring drone manufacturing jobs back to America and I’m excited to play a big role in that movement,” Trump Jr. said.
Also on Wednesday, Unusual Machines filed an S-1 registration statement with the Securities and Exchange Commission.
Trump Jr. previously owned 331,580 shares of Extraordinary Machines as detailed in the statement, and currently owns no shares, the statement said. The statement did not say how much Trump Jr. paid for his shares, or at what price he sold them.
Extraordinary Machines, which closed an initial public offering of 1.25 million shares of stock for net proceeds of $3.85 million in February, recently reported revenue of just $3.56 million for the nine months ended Sept. 30 and the same period. reported a net loss of $4.86 million for .
Extraordinary Machines shares hit a 52-week low of 98 cents a share. As of Wednesday morning, the stock, which closed Tuesday at $5.36 a share, was trading at more than $8 a share.
Volume was heavy Wednesday morning, with more than 13.5 million shares trading hands. The company’s 10 day average trading volume is just 380,000 shares.
When the company completed its IPO in February, it also acquired drone brands Fat Shark and Rotor Riot from Red Cat, whose founder and CEO Jeffrey Thompson is the founder, former CEO and current board member of Extraordinary Machines.
The company’s S-1 filing on Wednesday said its consumer business has been “heavily dependent on Chinese imports for our products and operations,” citing President-elect Trump’s tariffs on Chinese imports. The risks have increased.
“As a result of the recent United States presidential election, President-elect Trump is expected to sell goods from China,” the filing said. may impose stiff tariffs on imports of drones, including drones that we use in our B2C business.” “If tariffs are increased, it could materially and adversely affect our business and results of operations.”
On Monday, the president-elect said he would impose an “additional 10 percent tariff on top of any additional tariff” on imports from China unless the nation stops the trafficking of chemicals used to make the deadly opioid fentanyl.
In a recent regulatory filing, Uncommon Machines noted that it changed its accounting firm in April and “terminated its engagement with its first auditor.”
“On May 3, 2024, the Securities and Exchange Commission (“SEC”) issued an order imposing a cease and desist against the Company’s former auditor, requiring the Company to obtain new auditors and review its financial statements. The statements were required to be re-audited for the years ending December 31, 2023 and 2022,” the filing noted.
A new accounting firm retained by Extraordinary Machines re-audited the company’s previous financial statements, and found that “certain transactions were not recorded in the correct period, related to the March 7, 2023 issuance of common stock.” Stock compensation expense of $600,000 was not recorded and deferred offering expense was classified as an operating activity rather than a financing activity.”
This is developing news. Check back for updates.