Red Cat Holdings Reports Financial Results for the 2024 Transition Period (as of December 31, 2024 and the eight months then ended) and Provides Corporate Update
SAN JUAN, Puerto Rico, March 31, 2025 (GLOBE NEWSWIRE) -- Red Cat Holdings, Inc. (Nasdaq: RCAT) ("Red Cat" or "Company"), a drone technology company integrating robotic hardware and software for military, government, and commercial operations, reports its financial results for the 2024 Transition Period (as of December 31, 2024 and the eight months then ended) and provides a corporate update.
Recent Operational Highlights:
-- Black Widow selected as the sole winner and provider of the U.S. Army's
Short Range Reconnaissance $(SRR.AU)$ Program of Record.
-- Closed the acquisition of FlightWave Aerospace Systems Corporation. The
acquisition officially brings the Edge 130, FlightWave's Blue UAS
approved military-grade tri-copter, into Red Cat's Family of Systems.
-- Partnered with Palantir to integrate Visual Navigation software (VNav)
into Red Cat's Black Widow drones. This collaboration will transform
autonomous sUAS operations for modern warfare by utilizing Palantir's
Visual Navigation in GPS denied environments.
-- Partnered with Palantir to deploy Warp Speed, Palantir's manufacturing
OS. This collaboration will transform our supply and manufacturing
operations with Palantir's AI enabled monitoring, process flow
enhancement and comprehensive data analysis. Palantir's Warp Speed will
optimize Red Cat's production and streamline its supply chain, change
management, and quality assurance, ultimately reducing costs and
improving margins.
-- Announced that the Black Widow drone and FlightWave Edge 130 were
included on the list of 23 platforms and 14 unique components and
capabilities selected as winners of the Blue UAS Refresh. The platforms
will undergo National Defense Authorization Act $(NDAA)$ verification and
cyber security review with the ultimate goal of joining the Blue UAS
List.
-- Introduced our Black Widow$(TM)$ short-range reconnaissance drone and Edge
130 Tricopter to the Middle East market at the International Defense
Exhibition and Conference in Abu Dhabi, UAE, Feb 17-21 2025.
-- Will be introducing Black Widow(TM) and Edge 130 drones to the Latin
American market at LAAD 2025 in Rio De Janeiro, Brazil in April 2025.
-- Introduced Black Widow(TM) to the Asia Pacific Market at the AISSE
conference in Putrajaya, Malaysia in January 2025.
-- Expanded our Red Cat Futures Industry Consortium to include Palantir and
Palladyne to boost AI capabilities in contested environments, including
visual navigation.
2024 Transition Period (as of December 31, 2024 and the eight months then ended) Financial Highlights:
-- Transition period revenue of $4.9 million
-- Ended the period with cash and accounts receivable of $9.6 million
-- Closed an additional $6 million financing since prior quarter end
-- Guidance of $80-$120 million for calendar year 2025 , which consists of:
-- $25 million in Non-SRR Black Widow sales
-- $25 million in Edge 130 sales
-- $5 million in Fang FPV sales
-- $25 to $65 million in SRR-related Black Widow sales
"Red Cat's partnerships and global expansion strategy is already yielding strong results. Over the past few months, we've introduced the Black Widow and Edge 130 drones to key international markets, including the Middle East, Asia Pacific, and soon Latin America," said Jeff Thompson, Red Cat CEO. "This momentum underscores growing global interest in our Family of Systems. The ongoing development of Black Widow for the U.S. Army's SRR Program of Record, bolstered by AI partners like Palantir and Palladyne, we're not only meeting immediate defense needs--we're ensuring our warfighters and allies are well equipped for rapidly-evolving battlefield."
"Our financial position remains solid as we scale to meet increased demand," added Thompson. "With over $9 million in cash and receivables and the recently secured debt financing of $15 million, we've significantly strengthened our capital position heading into a pivotal year. This infusion of non-dilutive capital allows us to aggressively scale production, and meet accelerating demand tied to the U.S. Army's SRR program and international opportunities. Combined with our strong cash balance and operational discipline, we are confident in our ability to support 2025 revenue guidance and deliver long-term shareholder value."
Conference Call Today
CEO Jeff Thompson will host an earnings conference call at 4:30 p.m. ET on Monday, March 31, 2025 to review financial results and provide an update on corporate developments. Following management's formal remarks, there will be a question-and-answer session.
Interested parties can attend the conference call through a live webcast that can be accessed at:
https://event.choruscall.com/mediaframe/webcast.html?webcastid=kOCu4DoZ.
About Red Cat Holdings, Inc.
Red Cat (Nasdaq: RCAT) is a drone technology company integrating robotic hardware and software for military, government, and commercial operations. Through two wholly owned subsidiaries, Teal Drones and FlightWave Aerospace, Red Cat has developed a leading-edge Family of Systems. This includes the flagship Black Widow(TM), a small unmanned ISR system that was awarded the U.S. Army's Short Range Reconnaissance (SRR) Program of Record contract. The Family of Systems also includes TRICHON(TM), a fixed wing VTOL for extended endurance and range, and FANG(TM), the industry's first line of NDAA compliant FPV drones optimized for military operations with precision strike capabilities. Learn more at www.redcat.red.
Forward Looking Statements
This press release contains "forward-looking statements" that are subject to substantial risks and uncertainties. All statements, other than statements of historical fact, contained in this press release are forward-looking statements. Forward-looking statements contained in this press release may be identified by the use of words such as "anticipate, " "believe," "contemplate," "could," "estimate," "expect," "intend," "seek," "may," "might," "plan," "potential," "predict," "project," "target," "aim," "should," "will" "would," or the negative of these words or other similar expressions, although not all forward-looking statements contain these words. Forward-looking statements are based on Red Cat Holdings, Inc.'s current expectations and are subject to inherent uncertainties, risks and assumptions that are difficult to predict. Further, certain forward-looking statements are based on assumptions as to future events that may not prove to be accurate. These and other risks and uncertainties are described more fully in the section titled "Risk Factors" in the Form 10-K filed with the Securities and Exchange Commission on July 27, 2023. Forward-looking statements contained in this announcement are made as of this date, and Red Cat Holdings, Inc. undertakes no duty to update such information except as required under applicable law.
Contact:
INVESTORS:
E-mail: Investors@redcat.red
NEWS MEDIA:
Phone: (347) 880-2895
Email: peter@indicatemedia.com
RED CAT HOLDINGS
Condensed Consolidated Balance Sheets
December 31, April 30,
2024 2024
ASSETS
Cash $ 9,154,297 $ 6,067,169
Accounts receivable, net 489,316 4,361,090
Inventory, including
deposits 13,592,900 8,610,125
Intangible assets
including goodwill,
net 26,124,133 12,882,939
Equity method investee -- 5,142,500
Note receivable -- 4,000,000
Other 6,243,621 7,473,789
TOTAL ASSETS $ 55,604,267 $ 48,537,612
============ ===========
LIABILITIES AND
STOCKHOLDERS' EQUITY
Accounts payable and
accrued expenses $ 3,517,118 $ 2,703,922
Debt obligations 350,000 751,570
Operating lease
liabilities 1,617,596 1,517,590
Total liabilities 5,484,714 4,973,082
Stockholders' capital 174,864,256 124,690,641
Accumulated
deficit/comprehensive
loss (124,744,703) (81,126,111)
------------ -----------
Total stockholders'
equity 50,119,553 43,564,530
------------ -----------
TOTAL LIABILITIES AND
STOCKHOLDERS' EQUITY $ 55,604,267 $ 48,537,612
============ ===========
Condensed Consolidated Statements of Operations
For the Eight For the Year
Months Ended Ended
December 31, April 30,
2024 2024
Revenues $ 4,850,304 $ 17,836,382
Cost of goods sold 6,206,378 14,155,836
----------- -----------
Gross (loss) profit (1,356,074) 3,680,546
Operating Expenses
Research and development 6,610,980 6,266,129
Sales and marketing 6,321,763 5,086,600
General and administrative 11,459,442 11,214,154
Impairment loss 93,050 412,999
----------- -----------
Total operating expenses 24,485,235 22,979,882
----------- -----------
Operating loss (25,841,309) (19,299,336)
Other expense 17,772,662 2,227,360
Net loss from continuing
operations (43,613,971) (21,526,696)
Loss from discontinued operations -- (2,525,933)
----------- -----------
Net loss $ (43,613,971) $(24,052,629)
=========== ===========
Loss per share - basic and
diluted $ (0.57) $ (0.40)
=========== ===========
Weighted average shares
outstanding - basic and diluted 77,039,869 60,118,675
=========== ===========
Condensed Consolidated Statements of Cash Flows
For the Eight For the Year
Months Ended Ended
December 31, April 30,
2024 2024
---------------- ---------------
Cash Flows from Operating
Activities
Net loss from continuing
operations $ (43,613,971) $ (21,526,696)
Non-cash expenses 22,633,786 8,479,195
Changes in operating assets
and liabilities 444,208 (4,672,816)
----------- -----------
Net cash used in operating
activities (20,535,977) (17,720,317)
Cash Flows from Investing
Activities
Proceeds from sale of
marketable securities -- 12,826,217
Proceeds from sale of equity
method investment and note
receivable 4,400,000 --
Other (163,555) 740,861
----------- -----------
Net cash provided by investing
activities 4,236,445 13,567,078
Cash Flows from Financing
Activities
Proceeds from issuance of
convertible notes payable,
net 13,456,000 --
Payments of debt obligations,
net (394,606) (572,137)
Proceeds from exercise of
stock options 1,350,267 2,655
Proceeds from exercise of
warrants 4,974,999 --
Proceeds from issuance of
common stock, net -- 8,404,812
----------- -----------
Net cash provided by financing
activities 19,386,660 7,835,330
----------- -----------
Net cash used in discontinued
operations -- (875,227)
----------- -----------
Net increase in Cash 3,087,128 2,806,864
Cash, beginning of period 6,067,169 3,260,305
----------- -----------
Cash, end of period $ 9,154,297 $ 6,067,169
=========== ===========
(END) Dow Jones Newswires
March 31, 2025 16:00 ET (20:00 GMT)
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