Utilicraft Aerospace Industries, Inc. is a Nevada corporation that was incorporated on December 10, 2004. The Company was formed to effect a reorganization (the "Reorganization") of American Utilicraft Corporation ("AMUC"). The Reorganization was deemed necessary by the AMUC Board of Directors because they concluded that the business of AMUC could not be continued by the corporation in its current form due to its inability to facilitate significant investment to satisfy capital requirements for bringing its products to market. Among other things, delinquencies and deficiencies in its public filings under federal securities laws and certain pending litigation were reasons AMUC was unable to facilitate significant investment necessary to fund continuing operations. Upon formation, the Company: (1) obtained from John Dupont, assignments of patent rights for the design of the FF-1080-300 aircraft, the method patent for the Express Turn-Around (ETA) electronic freight tracking system and for the Automated Flat Rate System (AFRS); (2) entered into separate employment agreements with John Dupont, Darby Boland, John Dapogny and Karen Shoemaker; (3) entered into lease agreements for facilities for use in its business operations, including a sublease (which has since been terminated) from AMUC of facilities located at 554 Briscoe Blvd., Lawrenceville, Georgia (formerly AMUC headquarters); and (4) recognized and resolved to honor deferred compensation obligations of AMUC to its officers in the amount of $1,892,108 to effect the Reorganization of AMUC. In connection with the Reorganization, the Company has also paid an aggregate of approximately $1,095,077 to AMUC or its creditors and assumed debt owed by AMUC to an officer of the Company aggregating approximately $532,000. AMUC applied approximately $46,499 of the proceeds from UAI toward settlement of certain obligations to persons who serve as officers/directors of the Company, who also served AMUC as officers/directors. The settled AMUC obligations to such officers/directors included payroll obligations totaling approximately $36,224 paid to Messrs Dupont, Boland and Dapogny, approximately $775 in accounts payable paid to Darby Boland, repayment of $7,000 of personal loans from John Dupont to AMUC, approximately $1,500 paid to John Dupont in reimbursement for travel expenses, and a $1,000 payment to Mr. Dupont for research and development services.