Serving a rapidly changing industry
Unusual Machines primarily serves the American drone industry by building and selling drone components.
In February 2024 we acquired FPV market leader Fat Shark, which designs and manufactures ultra-low latency video goggles for drone pilots, and Rotor Riot, a drone-focused e-commerce marketplace backed by one of the largest communities of FPV drone pilots in the world. In short, Fat Shark makes the drone components and Rotor Riot sells them.
We expect demand for drones to continue to grow across all industries, including public safety, enterprise inspection, defense, and eventually drone delivery. While these industries are expanding, legislative changes like the American Securities Drone Act and conflicts like the one in Ukraine are creating significant changes in the manufacturing and supply chains for drones. Recently, the supply chains have been dominated by Chinese companies (reference). We believe the shift toward American manufacturing will create significant demand for a non Chinese based supplier of drone components and represents an opportunity for us to rapidly grow.
The Unusual Machines strategy
We have successfully acquired both Rotor Riot and Fatshark and now plan to organically grow our consumer sales by building and selling best in class drone technologies. We will also search for and acquire promising companies with complementary businesses in either drone component sales or production. Our business strategy includes the following:
- Expanding with existing customers and increasing our overall customer base. The Rotor Riot e-commerce channel has grown sales to FPV enthusiasts at over 30% per year for the last several years. We plan on continuing to provide great products and support to these customers and expect continued growth.
- Investing in domestic products. We intend to invest in new suppliers and facilities to produce products outside of China. We expect other businesses that require NDAA compliance to need these types of products. We also plan to explore and pursue acquisitions of companies that may help us more quickly vertically integrate.
- Strategic partnerships with leading drone manufactures. We will partner with leading drone manufactures to act as a supplier of drone components. This will let us expand our sales to businesses as well as consumers and fully leverage our drone industry expertise.
- Leverage marketing channels. Fat Shark and Rotor Riot, the target entities in our present acquisition efforts, have substantial social media followings, a stable of world class drone pilots, and valuable brand equity. We intend to leverage and grow these channels to enable further expansion of our market presence and brand strength.
