Attached files
| file | filename |
|---|---|
| 8-K - DRONE AVIATION HOLDING CORP. FORM 8-K - COMSovereign Holding Corp. | form8k.htm |
| EX-99.1 - EXHIBIT 99.1 - COMSovereign Holding Corp. | ex991.htm |
| EX-23.1 - EXHIBIT 23.1 - COMSovereign Holding Corp. | ex231.htm |
EXHIBIT 99.2
DRONE AVIATION HOLDING CORP.
Unaudited Combined Pro Forma Balance Sheet at
March 31, 2014
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ASSETS
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Proforma
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Adjusted Pro
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DRONE
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LTAS
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Adjustments
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Forma Totals
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CURRENT ASSETS
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Cash
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$ | 572,041 | $ | 53,429 | $ | - | $ | 625,470 | ||||||||
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Accounts receivable
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20,442 | 135,050 | - | 155,492 | ||||||||||||
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Inventories
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- | 65,122 | - | 65,122 | ||||||||||||
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Prepaid expenses
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18,440 | 1,625 | - | 20,065 | ||||||||||||
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TOTAL CURRENT ASSETS
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610,923 | 255,226 | - | 866,149 | ||||||||||||
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Property and equipment, net of accumulated depreciation
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2,470 | 1,728 | (2,470 | ) | 1,728 | |||||||||||
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OTHER ASSETS
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Goodwill
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- | 807,824 | (671,418 | ) | 136,406 | |||||||||||
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Customer list
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- | - | 135,550 | 135,550 | ||||||||||||
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Investments held for resale
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315,353 | - | - | 315,353 | ||||||||||||
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Capitalized patent costs, net of accumulated amortization
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69,520 | - | (69,520 | ) | - | |||||||||||
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TOTAL ASSETS
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$ | 998,266 | $ | 1,064,778 | $ | (607,858 | ) | $ | 1,455,186 | |||||||
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LIABILITIES AND STOCKHOLDERS' DEFICIT
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CURRENT LIABILITIES
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Accounts payable trade
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$ | 61,837 | $ | 93,473 | $ | - | $ | 155,310 | ||||||||
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Accounts payable - related parties
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- | 254,957 | (254,957 | ) | - | |||||||||||
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Accrued liabilities
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- | 65,140 | - | 65,140 | ||||||||||||
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Accrued debenture interest
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48,083 | - | (48,083 | ) | - | |||||||||||
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Accrued shareholder loan interest
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47,988 | - | (47,988 | ) | - | |||||||||||
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Short term debt - related parties
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22,500 | - | - | 22,500 | ||||||||||||
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Current maturities of note payable
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110,000 | - | - | 110,000 | ||||||||||||
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TOTAL CURRENT LIABILITIES
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290,408 | 413,570 | (351,028 | ) | 352,950 | |||||||||||
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LONG TERM LIABILITY
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Shareholder note payable
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533,681 | - | (533,681 | ) | - | |||||||||||
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Convertible debentures, net of discount of $50,000
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100,000 | - | (100,000 | ) | - | |||||||||||
| 633,681 | - | (633,681 | ) | - | ||||||||||||
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TOTAL LIABILITIES
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924,089 | 413,570 | (984,709 | ) | 352,950 | |||||||||||
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STOCKHOLDERS' EQUITY
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Convertible preferred stock, Series A, $.0001 par value; authorized 595,000 shares;
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- | - | 60 | 60 | ||||||||||||
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556,900 and 0 shares issued and outstanding, at June 30, 2014
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and December 31, 2013, respectively
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Convertible preferred stock, Series B, $.0001 par value; authorized 324,674 shares;
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- | - | 32 | 32 | ||||||||||||
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324,671 and 0 shares issued and outstanding, at June 30, 2014
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and December 31, 2013, respectively
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Convertible preferred stock, Series B-1, $.0001 par value; authorized 156,231 shares;
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- | - | 16 | 16 | ||||||||||||
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68,731 and 0 shares issued and outstanding, at June 30, 2014
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and December 31, 2013, respectively
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Convertible preferred stock, Series C, $.0001 par value; authorized 355,000 shares;
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- | - | 36 | 36 | ||||||||||||
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355,000 and 0 shares issued and outstanding, at June 30, 2014
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and December 31, 2013, respectively
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Convertible preferred stock, Series D, $.0001 par value; authorized 36,050,000 shares;
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- | - | 3,605 | 3,605 | ||||||||||||
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36,050,000 and 10,000,000 shares issued and outstanding, at June 30, 2014
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and December 31, 2013, respectively
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Convertible preferred stock, Series E, $.0001 par value; authorized 2,700,000 shares;
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- | - | 270 | 270 | ||||||||||||
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2,700,000 and 0 shares issued and outstanding, at June 30, 2014
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and December 31, 2013, respectively
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Common stock, $.0001 par value; authorized 300,000,000 shares;
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1,982,191 | 1 | (1,980,995 | ) | 1,197 | |||||||||||
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15,780,700 and 0 shares issued and outstanding, at June 30, 2014
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and December 31, 2013, respectively
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Additional paid in capital
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19,946,750 | 922,499 | (19,431,417 | ) | 1,437,832 | |||||||||||
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Accumulated other comprehensive income
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(455,985 | ) | - | 455,985 | - | |||||||||||
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Accumulated deficit
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(21,398,779 | ) | (271,292 | ) | 21,329,259 | (340,812 | ) | |||||||||
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TOTAL STOCKHOLDERS' DEFICIT
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74,177 | 651,208 | 376,851 | 1,102,236 | ||||||||||||
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TOTAL LIABILITIES AND STOCKHOLDERS' DEFICIT
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$ | 998,266 | $ | 1,064,778 | $ | (607,858 | ) | $ | 1,455,186 | |||||||
1
DRONE AVIATION HOLDING CORP.
Unaudited Combined Pro Forma Statements of Operations --
Three Months Ended March 31, 2014
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Pro Forma
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Pro Forma
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Adjusted
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DRONE
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LTAS
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Adjustments
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Combined Totals
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Sales
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$ | 134,808 | $ | 229,350 | $ | (134,808 | ) | $ | 229,350 | |||||||
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Cost of goods sold
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99,557 | 139,238 | (99,557 | ) | 139,238 | |||||||||||
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Gross Profit
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35,251 | 90,112 | (35,251 | ) | 90,112 | |||||||||||
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Operating expenses
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General and administrative expenses
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244,660 | 90,201 | (244,660 | ) | 90,201 | |||||||||||
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Total operating expenses
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244,660 | 90,201 | (244,660 | ) | 90,201 | |||||||||||
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LOSS FROM OPERATIONS
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(209,409 | ) | (89 | ) | 209,409 | (89 | ) | |||||||||
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Interest expense, net
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(15,555 | ) | - | 15,555 | - | |||||||||||
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Net loss
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$ | (224,964 | ) | $ | (89 | ) | $ | 224,964 | $ | (89 | ) | |||||
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Net Loss Per Share - Basic and Diluted
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$ | (0.03 | ) | $ | (0.00 | ) | $ | - | $ | (0.00 | ) | |||||
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Weighted Average Shares Outstanding - Basic and Diluted
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8,050,000 | 3,920,700 | - | 11,970,700 | ||||||||||||
2
DRONE AVIATION HOLDING CORP.
Unaudited Combined Pro Forma Statements of Operations --
Year ended December 31, 2013
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Pro Forma
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Pro Forma
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Adjusted
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DRONE
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LTAS
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Adjustments
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Combined Totals
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Sales
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$ | 1,454,337 | $ | 847,314 | $ | (1,454,337 | ) | $ | 847,314 | |||||||
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Cost of goods sold
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854,471 | 511,689 | (854,471 | ) | 511,689 | |||||||||||
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Gross Profit
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599,866 | 335,625 | (599,866 | ) | 335,625 | |||||||||||
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Operating expenses
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General and administrative expenses
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777,920 | 187,705 | (777,920 | ) | 187,705 | |||||||||||
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Total operating expenses
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777,920 | 187,705 | (777,920 | ) | 187,705 | |||||||||||
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LOSS FROM OPERATIONS
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(178,054 | ) | 147,920 | 178,054 | 147,920 | |||||||||||
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OTHER INCOME (EXPENSE)
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Other income
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6,681 | - | (6,681 | ) | - | |||||||||||
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Interest expense, net
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(69,311 | ) | (811 | ) | 69,311 | (811 | ) | |||||||||
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Net loss
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$ | (240,684 | ) | $ | 147,109 | $ | 240,684 | $ | 147,109 | |||||||
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Net Loss Per Share - Basic and Diluted
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$ | (0.03 | ) | $ | 0.04 | $ | - | $ | 0.01 | |||||||
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Weighted Average Shares Outstanding - Basic and Diluted
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8,050,000 | 3,920,700 | 11,970,700 | |||||||||||||
3
Notes to Unaudited Pro Forma Consolidated Financial Statements
Drone Aviation Holding Corp. (DAHC) entered into a Share Exchange Agreement with Drone Aviation Corp. (DAC), whereby Drone Aviation Holding Corp exchanged 67.2% of its outstanding shares of common stock and 89.7% of its outstanding shares of preferred stock for 100% of the outstanding shares of Drone Aviation Corp. common stock. As of the closing date, Drone Aviation Corp., and its subsidiary Lighter Than Air Systems (LTAS), will operate as wholly-owned subsidiaries of Drone Aviation Holding Corp.
As a result of the Share Exchange Agreement, each outstanding share of Drone Aviation Corp. common stock shall be transferred, conveyed and delivered to Drone Aviation Holding Corp. in exchange for 8,050,000 newly-issued shares of common stock and 36,050,000 newly-issued shares of Series D preferred stock of Drone Aviation Holding Corp.
As of the closing date of the Share Exchange Agreement, the former shareholders of Drone Aviation Corp. held approximately 30.2% of the issued and outstanding common and preferred shares on a fully-diluted basis of Drone Aviation Holding Corp. The preferred stock contains a restrictive blocker with respect to individual holders’ ownership notwithstanding. The issuance of 8,050,000 common shares and 36,050,000 preferred shares to the shareholders of Drone Aviation Corp. was deemed to be an acquisition for accounting purposes. The number of shares outstanding and per share amounts have been restated to recognize the recapitalization as reflected in pro forma adjustments.
The pro forma consolidated balance sheets of Drone Aviation Holding Corp. and DAC/LTAS are presented here as of March 31, 2014. The pro forma consolidated statements of operations for Drone Aviation Holding Corp. and Drone Aviation Corp. are presented here as of the year ended December 31, 2013 and the three months ended March 31, 2014.
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