Red Cat Holdings Reports Financial Results for Fiscal First Quarter 2025 and Provides Corporate Update


SAN JUAN, Puerto Rico, Sept. 23, 2024 (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 fiscal first quarter ended July 31, 2024 and provides a corporate update.

Recent Operational Highlights:

  • Presented drone solutions to high-level officials, at multiple Defense Conferences, including the U.S Marine Corps (Modern Day Marine), domestic and international Special Operations Forces (SOF Week), and European Union and NATO forces at Eurosatory 2024 in Paris, France.
  • Announced development of a new Family of Small ISR and Precision Strike Systems at Eurosatory 2024.
  • Recently closed FlightWave asset purchase agreement.
  • Launched Robotics and Autonomous Systems Industry Consortium called Red Cat Futures Initiative.

First Quarter 2025 Financial Highlights:

  • Quarterly revenue of $2.8 million, representing 59% year-over-year growth.
  • Ended the quarter with cash of $7.7 million.
  • Guidance of $50-$55 million for calendar year 2025 exclusive of government or NATO programs of record.
  • Record backlog of $13 million.

"Red Cat continues to see significant global demand and year-over-year growth with a strong pipeline and backlog,” said Jeff Thompson, Red Cat Chairman and Chief Executive Officer. “This is being driven by strong domestic and international adoption and sales across our entire Family of Systems, which now includes the Edge 130 Blue. Our guidance for the upcoming 2025 calendar year of $50 - $55 million will continue our growth trend as we await news around the U.S. Army’s Short-Range Reconnaissance Program of Record and prepare to scale up production capacity.”

“We are reporting 59% year-over-year growth and $13 million in backlog for the first quarter of fiscal 2025,” stated Leah Lunger, Chief Financial Officer. “Having officially closed the acquisition of FlightWave Aerospace System, we look forward to integrating the Edge 130 Blue into our Family of Systems, which will open new revenue streams and partnership opportunities with companies in our Futures Initiative. We also have significant market potential for NDAA compliant FPV precision strike drones within our innovation roadmap.”

Conference Call Today

CEO Jeff Thompson and CFO Leah Lunger will host an earnings conference call at 4:30 p.m. ET on Tuesday, September 23, 2024 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 listen to the conference call by dialing 1-844-413-3977 (within the U.S.) or 1-412-317-1803 (international). Callers should dial in approximately ten minutes prior to the start time and ask to be connected to the Red Cat conference call. Participants can also pre-register for the call using the following link: https://dpregister.com/sreg/10192508/fd6e5cff60

The conference call will also be available through a live webcast that can be accessed at:
https://event.choruscall.com/mediaframe/webcast.html?webcastid=TD6F4UVA

A replay of the webcast will be available until December 22, 2024 and can be accessed through the above link or at www.redcatholdings.com. A telephonic replay will be available until October 7, 2024 by calling 1-877-344-7529 (domestic) or 1-412-317-0088 (international) and using access code 2058195.

About Red Cat, 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 bleeding-edge Family of ISR and Precision Strike Systems including the Teal 2, a small unmanned system offering the highest-resolution thermal imaging in its class, the Edge 130 Blue Tricopter for extended endurance and range, and FANG™, 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
    
  July 31,  April 30,
  2024   2024 
ASSETS     
      
Cash and marketable securities$7,732,763  $6,067,169 
Accounts receivable, net 681,775   4,361,090 
Inventory, including deposits 10,667,676   8,610,125 
Intangible assets including goodwill, net 12,612,560   12,882,939 
Other 6,260,457   7,473,789 
Equity method investee    5,142,500 
Note receivable    4,000,000 
      
TOTAL ASSETS$37,955,231  $48,537,612 
      
LIABILITIES AND STOCKHOLDERS' EQUITY     
      
Accounts payable and accrued expenses$3,428,538  $2,703,922 
Debt obligations 599,570   751,570 
Operating lease liabilities 1,471,589   1,517,590 
Total liabilities 5,499,697   4,973,082 
      
Stockholders’ capital 126,002,642   124,690,641 
Accumulated deficit/comprehensive loss (93,547,108)  (81,126,111)
Total stockholders' equity 32,455,534   43,564,530 
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY$37,955,231  $48,537,612 
      


Condensed Consolidated Statements of Operations      
         
  Three months ended     
  July 31,      
  2024   2023  
 Revenues$2,776,535  $1,748,129 
         
 Cost of goods sold 3,259,926   1,573,464 
         
 Gross (loss) profit (483,391)  174,665 
         
 Operating Expenses       
 Research and development 1,626,440   1,353,551 
 Sales and marketing 2,041,511   1,288,760 
 General and administrative 3,483,095   2,863,758 
 Impairment loss 93,050    
 Total operating expenses 7,244,096   5,506,069 
 Operating loss (7,727,487)  (5,331,404)
         
 Other expense 4,688,889   262,891 
         
 Net loss from continuing operations(12,416,376)  (5,594,295)
         
 Loss from discontinued operations    (242,573)
 Net loss$(12,416,376) $(5,836,868)
         
 Loss per share - basic and diluted$(0.17) $(0.11)
         
 Weighted average shares outstanding - basic and diluted 74,500,480   54,935,339 
         


Condensed Consolidated Statements of Cash Flows
   
   Three months ended July 31, 
   2024   2023 
Cash Flows from Operating Activities        
Net loss from continuing operations $(12,416,376) $(5,594,295)
Non-cash expenses  6,755,639   1,522,611 
Changes in operating assets and liabilities  3,312,325   (2,854,385)
Net cash used in operating activities  (2,348,412)  (6,926,069)
         
Cash Flows from Investing Activities        
Proceeds from sale of equity method investment and note receivable  4,400,000    
Proceeds from sale of marketable securities     4,888,399 
Other  (99,957)  (5,054)
Net cash provided by investing activities  4,300,043   4,883,345 
         
Cash Flows from Financing Activities        
Payments of debt obligations, net  (152,000)  (137,989)
Payments related to employee equity transactions  (134,037)  (8,520)
Net cash used in financing activities  (286,037)  (146,509)
         
Net cash used in discontinued operations     (118,295)
         
Net increase (decrease) in Cash  1,665,594   (2,307,528)
Cash, beginning of period  6,067,169   3,260,305 
Cash, end of period  7,732,763   952,777 
Less: Cash of discontinued operations     (15,021)
Cash of continuing operations, end of period  7,732,763   937,756 
Marketable securities     7,922,392 
Cash of continuing operations and marketable securities $7,732,763  $8,860,148