>
-Announcement for the purposes of Rule 2.8 of the Irish Takeover Panel Act, 1997, Takeover Rules, 2022 (the “Irish Takeover Rules”)-BLUETTI Opens First Flagship Store in Munich, Germany for Hands-on Experience-10 Trucos para ahorrar en la factura de la luz en España-Leading Solo VC Ozi Amanat Collects $300 Million-Jack Nathan Health Provides Corporate Update-CORRECTING and REPLACING – Canadian Spirit Resources Inc. Announces Third Quarter 2022 Financial Results-Friedman Industries, Incorporated Announces Second Quarter Results and Provides Near-term Outlook-Wesco Declares Quarterly Dividend on Preferred Stock-InterDigital Declares Regular Quarterly Cash Dividend-BeeHero Raises $42 Million Series B to Accelerate Deployment of Its Data-driven Precision Pollination Platform-Athene Holding Ltd. Declares Fourth Quarter 2022 Preferred Stock Dividends-Horace Mann declares quarterly dividend-PotlatchDeltic Board Declares $0.95 Special Dividend and Increases Regular Distribution 2.3%-FCPT Announces Acquisition of a Cheesecake Factory Property and a Dual-tenant Starbucks and AT&T Property for $12.3 Million-EVERTEC Announces Refinancing of Credit Facilities-Brookfield Office Properties Announces Reset Dividend Rate and Conversion Privileges on Its Class AAA Series II Preference Shares-CORRECTING and REPLACING Essential Utilities’ Aqua Illinois Subsidiary Acquires Oak Brook Water Assets-Correction: KOREA FAIR TRADE COMMISSION (KFTC) – APPEAL PROCEEDINGS UPDATE-KOREA FAIR TRADE COMMISSION (KFTC) – POINT SUR LA PROCEDURE D’APPEL-Korea Fair Trade Commission (kftc) – Appeal Proceedings Update

Red Cat Holdings Reports Record Quarterly Revenues for its First Quarter of Fiscal Year 2023 and Provides Corporate Update

| Source: Red Cat Holdings, Inc.


SAN JUAN, Puerto Rico, Sept. 12, 2022 (GLOBE NEWSWIRE) — Red Cat Holdings, Inc. (Nasdaq: RCAT) (“Red Cat” or “Company”), a hardware-enabled software provider to the drone industry, reports financial results for its first quarter of fiscal 2023 (three months ending 7/31/2022) and provides a business update.

Recent Corporate Highlights:

Enterprise

  • Skypersonic demonstrated remote-piloted drone at LoveIT Detroit’s Aerospace Reception
  • Teal Drones received FAA waiver to hold public demonstration of its Eris technology that enables a single pilot to simultaneously control multiple drones
  • Teal Drones secured exclusive license to use autonomous drone software and technology from Autonodyne
  • Skypersonic demonstrated its “Fly Anywhere” technology on Mt. Etna, an active volcano in Sicily
  • Skypersonic inspected a utility plant in Italy using a drone controlled by a pilot located in Florida using a cellphone connection
  • Teal completed development and production of a four-drone, multi-vehicle system for defense, government, and public safety markets
  • Skypersonic completed a two-year program under which General Motors used the Skycopter to perform crane rail inspections at 19 North American stamping facilities

Consumer

  • Fat Shark launched a new FPV (first-person view) drone headset, the Dominator, which is a low-latency, 1080p digital goggle with an extended flight range over existing systems
  • Consumer segment generated record quarterly revenues in 1Q23

First Quarter 2023 Financial Highlights:

  • Record Revenues for any fiscal quarter since the Company’s inception
  • Revenues increased 120% year-over-year and 134% sequentially
  • Cash and Investment balance of $43 million at July 31, 2022
  • Inventory at July 31, 2022 of approximately $6.4 million established to address supply chain challenges and forecast demand

“Despite the inflationary and supply chain pressures that persisted during our fiscal first quarter, we executed well and delivered record quarterly revenue, including year-over-year and sequential revenue increases over 100%. We are encouraged by Teal’s strong pipeline, along with ramping sales of Fat Shark’s new Dominator goggle,” commented Red Cat CEO Jeff Thompson.

“The War in Ukraine has fundamentally changed the methods and tools of warfare. Smaller Class 1 drones like the Teal Golden Eagle can be an important tool for the warfighter. We expect accelerating demand from the defense spending renaissance in Eastern Europe for the foreseeable future. We also envision a complementary role for the innovative Skycopter, given its ability to navigate and inspect indoor and confined spaces, tunnels, and other dangerous environments on the battlefield,” concluded Thompson.

“Despite active construction at the Teal factory, we achieved record production volume during the quarter,” stated George Matus, Chief Executive Officer of Teal Drones. “It is clear that our investment to expand our manufacturing capacity and product development are bearing fruit, and we expect further increases in demand and unit production in future quarters.”

“Our fiscal 2023 year is off to a resounding start, as record quarterly revenues almost equaled half of total revenues for fiscal 2022,” stated Joseph Hernon, Chief Financial Officer. “Our financial position remains strong, with almost $43 million of cash and marketable securities and debt obligations of less than $2 million. Inventory levels are higher than normal, both in response to the challenges associated with supply chain delays and to meet growing customer demand.”

Conference Call Today

CEO Jeff Thompson and CFO Joseph Hernon will also host an earnings conference call at 8:30 a.m. ET on Monday, September 12th, 2022 to review financial results and provide an update on corporate developments. Following management’s formal remarks, there will be a question-and-answer session.

To listen to the conference call, interested parties within the U.S. should dial

1-866-777-2509 (domestic) or 1-412-317-5413 (international). All callers should dial in approximately 10 minutes prior to the scheduled start time and ask to be joined into the Red Cat Holdings, Inc. conference call. Participants can also pre-register for this event using the following link: https://dpregister.com/sreg/10170894/f452d40446

The conference call will also be available through a live webcast that can be accessed at: https://event.choruscall.com/mediaframe/webcast.html?webcastid=yfWG9lAg

The webcast replay will be available until December 12, 2022 and can be accessed through the above link or on the Company’s website. A telephonic replay will be available until September 26, 2022 by calling 1-877-344-7529 (domestic) or 1-412-317-0088 (international) and using access code 5208091.

About Red Cat Holdings, Inc.

Red Cat provides drone-based products, services, and solutions through its four subsidiaries and services the enterprise, military, and consumer markets. Teal Drones is a leader in unmanned aircraft systems (UAS), and its Golden Eagle is one of only five drones approved by the Department of Defense for reconnaissance, public safety, and inspection applications. Skypersonic’s technology enables drones to complete inspection services in locations where GPS is not available, yet still record and transmit data even while being operated from thousands of miles away. Fat Shark is a leading provider of First Person View (FPV) video goggles. Rotor Riot, LLC is a reseller of FPV drones and equipment, primarily to the consumer marketplace. Learn more at https://www.redcatholdings.com/.

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 final prospectus related to the public offering filed with the Securities and Exchange Commission. 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:

RED CAT HOLDINGS

Condensed Consolidated Balance Sheets

(Unaudited)

   
           
      July 31,       April 30,
      2022       2022

ASSETS              
               
Cash and marketable securities   $ 42,954,053       $ 48,875,184  
Intangible assets including goodwill, net     27,781,121         27,837,281  
Inventory, including deposits     6,389,375         5,602,955  
Other     3,844,903         2,763,205  
               
TOTAL ASSETS   $ 80,969,452       $ 85,078,625  
               
               
LIABILITIES AND STOCKHOLDERS’ EQUITY              
               
Accounts payable and accrued expenses   $ 1,642,681       $ 2,541,171  
Debt obligations     1,755,011         1,970,661  
Warrant derivative liability     1,700,419         1,607,497  
Other     961,939         1,043,624  
Total liabilities     6,060,050         7,162,953  
               
Stockholders’ capital     107,556,395         106,885,000  
Accumulated deficit/comprehensive loss     (32,646,993 )       (28,969,328 )
Total stockholders’ equity     74,909,402         77,915,672  
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY   $ 80,969,452       $ 85,078,625  
               
Condensed Consolidated Statements of Operations
(Unaudited) 
         
    Three months ended July 31,
    2022   2021
Revenues   $ 3,069,271     $ 1,396,751  
                 
Cost of goods sold     2,711,644       1,294,347  
                 
Gross margin     357,627       102,404  
                 
Operating expenses                
Operations     1,048,086       176,863  
Research and development     532,770       244,254  
Sales and marketing     602,231       100,633  
General and administrative     1,117,565       876,180  
Stock based compensation     755,471       384,086  
Total operating expenses     4,056,123       1,782,016  
Operating loss     (3,698,496 )     (1,679,612 )
                 
Other expense (income)                
Change in fair value of derivative liability     92,922       (154,248 )
Other, net     20,181       32,408  
Other expense (income)     113,103       (121,840 )
                 
Net loss   $ (3,811,599 )     (1,557,772 )
                 
Loss per share – basic and diluted   $ (0.07 )     (0.05 )
                 
Weighted average shares outstanding –                
basic and diluted     53,778,154       34,074,226  
Condensed Consolidated Statements of Cash Flows

 (Unaudited) 
     
     
         
      Three months ended July 31,  
      2022       2021  
Cash Flows from Operating Activities                
Net loss   $ (3,811,599 )   $ (1,557,772 )
Non-cash expenses     943,500       438,164  
Changes in operating assets and liabilities     (1,945,716 )     (2,953,434 )
Net cash used in operating activities     (4,813,815 )     (4,073,042 )
                 
Cash Flows from Investing Activities                
Proceeds from maturity of marketable securities, net     8,204,649        
Other, net     (544,942 )     13,502  
Net cash provided by investing activities     7,659,707       13,502  
                 
Cash Flows from Financing Activities                
Payments of debt obligations     (215,650       (264,428 )
Proceeds from issuance of equity, net           70,165,202  
Payments from employee equity transactions     (469,631        
Net cash (used in) provided by financing activities     (685,281       69,900,774  
                 
Net increase in Cash     2,160,611       65,841,234  
Cash, beginning of period     4,084,815       277,347  
Cash, end of period     6,245,426       66,118,581  
Marketable securities     36,708,627        
Cash and marketable securities   $ 42,954,053     $ 66,118,581  
                 

Leave a Comment