SAN JUAN, Puerto Rico, Dec. 15, 2023 (GLOBE NEWSWIRE) — Red Cat Holdings, Inc. (Nasdaq: RCAT) (“Red Cat” or “Company”), a drone expertise firm integrating robotic {hardware} and software program for navy, authorities, and industrial operations, studies its monetary outcomes for the second quarter ended October 31, 2023 and offers a business update.
Operating Highlights:
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Selected by U.S. Army as a finalist for its Short Range Reconnaissance (SRR) Tranche 2 Drone Program
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Received orders for 344 drones with a complete worth of roughly $5.2 million from a U.S. federal authorities company
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Secured contract with U.S. Customs and Border safety for 106 Teal 2 Drone programs
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Partnered with aerospace engineering agency ES Aero to facilitate fast completion of buyer particular tasks
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Remote ID certification acquired from the Federal Aviation Administration (FAA)
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Teal 2 sUAS now available for buy via federal authorities’s GSA Advantage
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Continued world growth with entry into Latin America
Financial Highlights:
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Record revenues of almost $4 million for fiscal second quarter ending October 31, 2023, representing progress of greater than 400% in comparison with the prior-year interval and 125% on a sequential foundation
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Gross margin tripled sequentially to greater than 30% within the second quarter of fiscal 2024 in comparison with 10% within the first quarter of fiscal 2024, pushed by continued enhancements within the manufacturing course of, a rise in models shipped, and better margins on the SRR prototype contract
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Backlog grew to $4.5 million at October 31, 2023 and $7.4 million in early December 2023
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Raised $9.2 million in gross proceeds from an fairness providing
“Our Q2 results exceeded our guidance by 30% and was the highest quarterly revenue in Company history due to our launch of the Teal 2 drone in April 2023,” commented Jeff Thompson, Chief Executive Officer. “This brand new system is now fully integrated with artificial intelligence and computer vision capabilities, including Athena AI, AeroVironment’s Tomahawk Kinesis, Reveal Technologies’s Farsight, and ATAK by PAR Government. This technology stack gives the frontline warfighter a feature-rich capability never seen on a rucksack portable drone.
“We are extremely honored to be downselected by the U.S. Army as a finalist for the Short Range Reconnaissance (SRR) program of record. With the ongoing shift to small tactical drones in warfare, we are very optimistic that our Teal sUAS will be needed globally as the premier ISR system for the warfighter. Given our record performance, growing backlog, and recent U.S. Army downselection, we reiterate our Q3 revenue guidance of $5 million, which would be another successful quarter of record revenue,” concluded Thompson.
“We are reporting file revenues, gross margin, and backlog for the second quarter of fiscal 2024, every of which represents clear indicators that the Teal 2 is resonating within the market,” acknowledged Joseph Hernon, Chief Financial Officer. “With our state-of-the-art manufacturing facility in Salt Lake City persevering with to scale manufacturing capability and refine the manufacturing course of, we’re assured in our means to satisfy our backlog with growing product gross margins.”
Earnings Conference Call
CEO Jeff Thompson and CFO Joseph Hernon will host an earnings convention name at 4:30 p.m. ET on Friday, December 15, 2023 to evaluate monetary outcomes and supply an update on company developments. Following administration’s formal remarks, there can be a question-and-answer session.
Interested events can hearken to the convention name by dialing 1-844-413-3977 (throughout the U.S.) or 1-412-317-1803 (worldwide). Callers ought to dial in roughly ten minutes previous to the beginning time and ask to be linked to the Red Cat convention name. Participants may also pre-register for the decision utilizing the next hyperlink: https://dpregister.com/sreg/10184976/fb36c42d00
The convention name can even be available via a stay webcast that may be accessed at:
https://event.choruscall.com/mediaframe/webcast.html?webcastid=4p3YUvHy
A replay of the webcast can be available till December 15, 2024 and may be accessed via the above hyperlink or at www.redcatholdings.com. A telephonic replay can be available till December 29, 2023 by calling 1-877-344-7529 (home) or 1-412-317-0088 (worldwide) and utilizing access code 8771219.
About Red Cat Holdings, Inc.
Red Cat (Nasdaq: RCAT) is a navy expertise firm that integrates robotic {hardware} and software program to offer vital situational consciousness and actionable intelligence to on-the- floor warfighters and battlefield commanders. Its mission is to boost the effectiveness and security of navy operations domestically and globally – and to “Dominate the Night.” Red Cat’s suite of options consists of Teal Drones, developer of the Golden Eagle, a small unmanned system with the best decision imaging for nighttime operations, and Skypersonic, a number one supplier of unmanned plane for inside areas and different harmful environments. Learn extra at https://www.redcatholdings.com/.
Forward Looking Statements
This press launch incorporates “forward-looking statements” which might be topic to substantial dangers and uncertainties. All statements, aside from statements of historic truth, contained on this press launch are forward-looking statements. Forward-looking statements contained on this press launch could also be recognized by means of phrases corresponding to “anticipate,” “consider,” “ponder,” “may,” “estimate,” “count on,” “intend,” “search,” “might,” “may,” “plan,” “potential,” “predict,” “undertaking,” “goal,” “intention,” “ought to,” “will” “would,” or the damaging of those phrases or different comparable expressions, though not all forward-looking statements comprise these phrases. Forward-looking statements are primarily based on Red Cat Holdings, Inc.’s present expectations and are topic to inherent uncertainties, dangers and assumptions which might be troublesome to foretell. Further, sure forward-looking statements are primarily based on assumptions as to future occasions that will not show to be correct. These and different dangers and uncertainties are described extra totally within the part titled “Risk Factors” within the ultimate prospectus associated to the general public providing filed with the Securities and Exchange Commission. Forward-looking statements contained on this announcement are made as of this date, and Red Cat Holdings, Inc. undertakes no obligation to update such info besides as required below relevant legislation.
Contacts:
INVESTORS:
CORE IR
Phone: (516) 222-2560
E-mail: [email protected]
NEWS MEDIA:
CORE IR
Phone: (516) 222-2560
Email: [email protected]
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RED CAT HOLDINGS |
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Condensed Consolidated Balance Sheets |
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October 31, |
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April 30, |
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2023 |
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2023 |
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ASSETS |
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Cash and marketable securities |
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$ |
4,024,266 |
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|
$ |
15,987,687 |
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Intangible belongings together with goodwill, internet |
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|
23,901,101 |
|
|
|
24,335,836 |
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Inventory, together with deposits |
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|
10,871,809 |
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|
|
9,280,073 |
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Accounts receivable, internet |
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|
2,989,054 |
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719,862 |
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Other |
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|
4,580,519 |
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4,478,080 |
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Assets of discontinued operations |
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4,239,895 |
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5,391,552 |
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TOTAL ASSETS |
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$ |
50,606,644 |
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$ |
60,193,090 |
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LIABILITIES AND STOCKHOLDERS’ EQUITY |
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Accounts payable and accrued bills |
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$ |
2,323,380 |
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$ |
1,957,975 |
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Debt obligations |
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|
1,044,581 |
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|
1,323,707 |
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|||
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Warrant spinoff legal responsibility |
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|
399,203 |
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|
588,205 |
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Other |
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|
525,612 |
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|
661,263 |
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Liabilities of discontinued operations |
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|
438,993 |
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|
1,052,315 |
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Total liabilities |
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4,731,769 |
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5,583,465 |
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Stockholders’ capital |
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112,158,387 |
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110,057,535 |
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Accumulated deficit/complete loss |
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(66,283,512 |
) |
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|
(55,447,910 |
) |
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Total stockholders’ fairness |
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|
45,874,875 |
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|
|
54,609,625 |
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TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY |
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$ |
50,606,644 |
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$ |
60,193,090 |
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Condensed Consolidated Statements of Operations |
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Three months ended October 31, |
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Six months ended October 31, |
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2023 |
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2022 |
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2023 |
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2022 |
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Revenues |
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$ |
3,930,868 |
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|
$ |
747,612 |
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$ |
5,678,997 |
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$ |
1,874,163 |
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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|
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Cost of products bought |
|
|
2,730,286 |
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|
|
623,761 |
|
|
|
4,303,750 |
|
|
|
1,668,192 |
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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Gross Margin |
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|
1,200,582 |
|
|
|
123,851 |
|
|
|
1,375,247 |
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|
|
205,971 |
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Operating Expenses |
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|
|
|
|
|
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|
|
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|
|
|
|
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Operations |
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|
440,445 |
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|
|
1,581,818 |
|
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|
1,148,348 |
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|
|
2,468,121 |
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Research and growth |
|
|
1,987,890 |
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|
|
1,266,956 |
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|
|
3,126,017 |
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|
|
1,716,920 |
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Sales and advertising |
|
|
675,490 |
|
|
|
563,756 |
|
|
|
1,662,398 |
|
|
|
970,709 |
|
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General and administrative |
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|
1,460,073 |
|
|
|
1,815,314 |
|
|
|
2,903,229 |
|
|
|
2,877,718 |
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Stock primarily based compensation |
|
|
1,196,325 |
|
|
|
1,246,796 |
|
|
|
2,107,931 |
|
|
|
2,002,267 |
|
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Total working bills |
|
|
5,760,223 |
|
|
|
6,474,640 |
|
|
|
10,947,923 |
|
|
|
10,035,735 |
|
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Operating loss |
|
|
(4,559,641 |
) |
|
|
(6,350,789 |
) |
|
|
(9,572,676 |
) |
|
|
(9,829,764 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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Other (revenue) expense |
|
|
522,176 |
|
|
|
(519,807 |
) |
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|
1,076,916 |
|
|
|
(406,580 |
) |
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|
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|
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Net loss from persevering with operations |
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$ |
(5,081,817 |
) |
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$ |
(5,830,982 |
) |
|
$ |
(10,649,592 |
) |
|
$ |
(9,423,184 |
) |
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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|
Loss from discontinued operations |
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|
(599,511 |
) |
|
|
(413,495 |
) |
|
|
(842,084 |
) |
|
|
(632,892 |
) |
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Net loss |
|
$ |
(5,681,328 |
) |
|
$ |
(6,244,477 |
) |
|
$ |
(11,491,676 |
) |
|
$ |
(10,056,076 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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Loss per share – basic and diluted |
|
$ |
(0.10 |
) |
|
$ |
(0.12 |
) |
|
$ |
(0.21 |
) |
|
$ |
(0.19 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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|
Weighted common shares excellent – basic and diluted |
|
|
55,606,336 |
|
|
|
54,078,111 |
|
|
|
55,270,838 |
|
|
|
53,928,133 |
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|
Condensed Consolidated Statements of Cash Flows |
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||||
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|
Six months ended October 31, |
|
||||
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|
2023 |
|
|
|
2022 |
|
|
Cash Flows from Operating Activities |
|
|
|
|
|
|
|
|
|
Net loss from persevering with operations |
|
$ |
(10,649,592 |
) |
|
$ |
(9,423,184 |
) |
|
Non-cash bills |
|
|
3,222,395 |
|
|
|
1,748,455 |
|
|
Changes in working belongings and liabilities |
|
|
(3,813,162 |
) |
|
|
(1,852,743 |
) |
|
Net money utilized in working actions |
|
|
(11,240,359 |
) |
|
|
(9,527,472 |
) |
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|
|
|
|
|
|
|
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Cash Flows from Investing Activities |
|
|
|
|
|
|
|
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Proceeds from sale of marketable securities |
|
|
10,205,501 |
|
|
|
13,241,836 |
|
|
Purchases of property and tools |
|
|
(139,860 |
) |
|
|
(1,280,935 |
) |
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Net money offered by investing actions |
|
|
10,065,641 |
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|
|
11,960,901 |
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|
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Cash Flows from Financing Activities |
|
|
|
|
|
|
|
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Payments of debt obligations, internet |
|
|
(279,126 |
) |
|
|
(367,419 |
) |
|
Payments associated to worker fairness transactions |
|
|
(16,292 |
) |
|
|
(561,407 |
) |
|
Proceeds from issuance of widespread inventory via ATM amenities, internet |
|
|
9,212 |
|
|
|
— |
|
|
Net money utilized in financing exercise |
|
|
(286,206 |
) |
|
|
(928,826 |
) |
|
|
|
|
|
|
|
|
|
|
|
Net money utilized in discontinued operations |
|
|
(384,094 |
) |
|
|
(4,006,667 |
) |
|
|
|
|
|
|
|
|
|
|
|
Net lower in Cash |
|
|
(1,845,018 |
) |
|
|
(2,502,064 |
) |
|
Cash, starting of interval |
|
|
3,260,305 |
|
|
|
4,084,815 |
|
|
Cash, finish of interval |
|
|
1,415,287 |
|
|
|
1,582,751 |
|
|
Less: Cash of discontinued operations |
|
|
(6,310 |
) |
|
|
(90,810 |
) |
|
Cash of continuous operations, finish of interval |
|
|
1,408,977 |
|
|
|
1,491,941 |
|
|
Marketable securities |
|
|
2,615,289 |
|
|
|
31,302,888 |
|
|
Cash of continuous operations and marketable securities |
|
$ |
4,024,266 |
|
|
$ |
32,794,829 |
|
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|
|
|
|
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