Orlando Drone-Component Maker Could Land Game-Changing U.S. Government Investment
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Disclosures for Roth Capital Partners, Unusual Machines Inc., June 2, 2026

Regulation Analyst Certification ("Reg AC"): The research analyst primarily responsible for the content of this report certifies the following under Reg AC: I hereby certify that all views expressed in this report accurately reflect my personal views about the subject company or companies and its or their securities. I also certify that no part of my compensation was, is or will be, directly or indirectly, related to the specific recommendations or views expressed in this report. Disclosures: Rating and Price Target History for: Unusual Machines Inc. (UMAC) as of 06-01-2026 35 30 25 20 15 10 5 0 Q1 Q2 Q3 2024 Q1 Q2 Q3 2025 Q1 Q2 Q3 2026 Q1 Q2 05/13/26 I:B:$25 Created by: BlueMatrix Each box on the Rating and Price Target History chart above represents a date on which an analyst made a change to a rating or price target, except for the first box, which may only represent the first note written during the past three years. Distribution Ratings/IB Services shows the number of companies in each rating category from which Roth or an affiliate received compensation for investment banking services in the past 12 months. Distribution of IB Services Firmwide IB Serv./Past 12 Mos. as of May 25, 2026 Rating Count Percent Count Percent Buy [B] 371 74.95 102 27.49 Neutral [N] 84 16.97 7 8.33 Sell [S] 3 0.61 1 33.33 Under Review [UR] 36 7.27 16 44.44 Our rating system attempts to incorporate industry, company and/or overall market risk and volatility. Consequently, at any given point in time, our investment rating on a stock and its implied price movement may not correspond to the stated 12-month price target. Ratings System Definitions - ROTH Capital employs a rating system based on the following: Buy: A rating, which at the time it is instituted and or reiterated, that indicates an expectation of a total return of at least 10% over the next 12 months. Neutral: A rating, which at the time it is instituted and or reiterated, that indicates an expectation of a total return between negative 10% and 10% over the next 12 months. Sell: A rating, which at the time it is instituted and or reiterated, that indicates an expectation that the price will depreciate by more than 10% over the next 12 months. Under Review [UR]: A rating, which at the time it is instituted and or reiterated, indicates the temporary removal of the prior rating, price target and estimates for the security. Prior rating, price target and estimates should no longer be relied upon for UR-rated securities. Not Covered [NC]: ROTH Capital does not publish research or have an opinion about this security. ROTH Capital Partners, LLC and its affiliates expects to receive or intends to seek compensation for investment banking or other business relationships with the covered companies mentioned in this report in the next three months. The material, information and facts discussed in this report other than the information regarding ROTH Capital Partners, LLC and its affiliates, are from sources believed to be reliable, but are in no way guaranteed to be complete or accurate. This report should not be used as a complete analysis of the company, industry or security discussed in the report. Additional information is available upon request. This is not, however, an offer or solicitation of the securities discussed. Any opinions or estimates in this report are subject to change without notice. An investment in the stock may involve risks and uncertainties that could cause actual results to differ materially from the forward-looking statements. Additionally, an investment in the stock may involve a high degree of risk and may not be suitable for all investors. No part of this report may be reproduced in any form without the express written permission of ROTH. Copyright 2026. Member: FINRA/SIPC.

On June 2, 2026, Craig Irwin of Roth Capital Partners reiterated a Buy rating and raised his 12-month price target to US$40.00 (from US$25.00) on Unusual Machines Inc. (UMAC:NYSEAMERICAN), implying upside of approximately 38.5% from the June 1, 2026, closing price of US$28.88, following news of a probable U.S. government investment in the company.

Irwin views such funding as "transformational, greatly derisking its future status as a category leader" in drone components, and would be an opportunistic buyer at current levels.

Government Investment Catalyst

The central development driving the upgrade is media reporting that the U.S. government plans to invest in Unusual Machines, along with certain other drone companies. Irwin interprets this as a clear signal that the company's main Department of War customer sees demand well above current execution capacity, and believes the investment would cement UMAC's standing as a future category winner.

The news also pulls forward Roth's thesis that drone demand will unfold in three phases—military first, then delivery, and finally consumer—while raising the probability that Unusual Machines becomes a low-cost leader serving stable, non-military demand.

Motors, Drivetrain, and Supply Chain

Irwin highlights the motor and drivetrain as strategic, noting that the drone industry has found it difficult to move away from Chinese suppliers despite UMAC's recent product success. The company has been building out 1 million units of motor capacity, with management estimating US$4 million in capital expenditures and US$40 million in supply chain and inventory investments.

Roth speculates a government investment could enable capacity to expand to 4 million motors, which would likely require a broader product portfolio. The recent US$52 million acquisition of Upgrade Energy adds battery production to the company. Because the entire flight powertrain must be FAA-certified for Part 108, Roth expects batteries and motors to be a focus of any government investment, and estimates that a US$150 million to US$300 million investment could be sufficient to rapidly accelerate growth.

Valuation

The US$40 price target is based on a 37x price-to-sales multiple applied to 2027 estimates, up from 22x previously.

Irwin considers the higher multiple fair given a rapidly derisking growth outlook, diversified positioning, and strategic supply chain importance.

Risks

Roth flags volatility tied to UMAC's high valuation, which already anticipates substantial future growth. Other risks include concentration in a limited number of customers and suppliers without long-term binding contracts, manufacturing execution as the company enters a new production business, competition from larger and better-resourced firms that could pursue a low-cost strategy, tariff and trade exposure, regulatory dependence on FAA and other approvals, intellectual property protection, and a limited operating history marked by net losses since inception.