Red Cat Holdings Reports Financial Results for Fiscal First Quarter 2024 and Provides Corporate Update
19 Setembro 2023 - 5:05PM
Red Cat Holdings, Inc. (Nasdaq: RCAT) (“Red Cat” or “Company”), a
military technology company integrating robotic hardware and
software to protect and support the warfighter, reports its
financial results for the fiscal quarter ended July 31, 2023 and
provides a business update.
Operational Highlights:
- Orders for 344 drones with a total value of approximately $5.2
million placed by a U.S. federal government agency
- Remote ID certification received from the Federal Aviation
Administration (FAA)
- Teal 2 sUAS Now Available for Purchase Through US Government’s
GSA Advantage
- Secured $1.2M Additional Funding for U.S. Army’s Short Range
Reconnaissance Program
- Received DoD “Blue UAS” Approval for New Teal 2 sUAS to be
Added to Cleared List
- Announced breakthrough artificial intelligence and
computer-vision capabilities for Teal 2 military-grade drone
- Received Order for 200 Long-Range, High-Speed Drones for
Ukrainian Deployment
- Partnering with Doodle Labs as wireless networking provider for
U.S. Army’s Short Range Reconnaissance program
First Quarter 2024 Financial
Highlights:
- Consumer Segment
reported as Discontinued Operations as sale to Unusual Machines
(“UM”) expected to close in fiscal second quarter for immediate
cash proceeds of $3 million and approximately $21 million in UM
stock, including working capital adjustments
- Strong quarterly
revenues for the Consumer segment provide value potential for
shares of UM stock to be received from the sale
- Record quarterly
revenues for Enterprise segment as sales pipeline matures with an
additional $6 million in booked orders to be shipped over the
balance of Fiscal 2024
- More than 70% of Enterprise
revenues generated from sales to U.S. government agencies
- Inventory related balances of more
than $11 million at July 31, 2023 require $3 million to complete
the manufacturing of approximately 1,200 drones representing $18
million in revenues when shipped
“Since its official launch at the end of April,
the Teal 2 generated more than $2 million of sales in its first
quarter of availability. In addition, its current backlog of
$6 million is expected to increase throughout our Fiscal 2024,
especially as government agencies seek to spend their budgetary
allowances before they expire," stated Jeffrey Thompson, President
and CEO. "This was a record sales quarter for
the Enterprise segment and we expect the next two fiscal
quarters to report even higher record sales levels. We are
providing revenue guidance for our Enterprise segment of $3 million
for our second fiscal quarter and $5 million for our third fiscal
quarter.”
"We look forward to closing the sale of the
Consumer segment so that we can focus exclusively on the long-term
opportunities that are rapidly emerging for the Enterprise segment,
as evidenced by the repeat orders from the Border Patrol,” stated
Joseph Hernon, Chief Financial Officer. "We purposely built higher
than normal inventory levels to address the supply chain issues
that existed during the Covid crisis. With our manufacturing
facility completed and operating efficiently, we plan to spend an
additional $3 million to convert our existing inventory into
approximately 1,200 drones, representing more than $18 million in
future revenues.”
Conference Call
CEO Jeff Thompson and CFO Joseph Hernon will
host an earnings conference call at 4:30 p.m. ET on Tuesday,
September 19, 2023 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/10182400/fa69246800
The conference call will also be available
through a live webcast that can be accessed at:
https://event.choruscall.com/mediaframe/webcast.html?webcastid=yh9zCJ8Z
A replay of the webcast will be available until
December 19, 2023 and can be accessed through the above link or at
www.redcatholdings.com. A telephonic replay will be available until
October 3, 2023 by calling 1-877-344-7529 (domestic) or
1-412-317-0088 (international) and using access code 2400908.
About Red Cat Holdings, Inc.Red
Cat (Nasdaq: RCAT) is a military technology company that integrates
robotic hardware and software to provide critical situational
awareness and actionable intelligence to on-the- ground warfighters
and battlefield commanders. Its mission is to enhance the
effectiveness and safety of military operations domestically and
globally – and to “Dominate the Night.” Red Cat’s suite of
solutions includes Teal Drones, developer of the Golden Eagle, a
small unmanned system with the highest resolution imaging for
nighttime operations, and Skypersonic, a leading provider of
unmanned aircraft for interior spaces and other dangerous
environments. Learn more at https://www.redcatholdings.com/.
Forward Looking StatementsThis
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.
Contacts:
INVESTORSCORE IR Phone: (516) 222-2560 E-mail:
investors@redcat.red
NEWS MEDIADalton AgencyPhone: (615)
515-4891Email: redcat@daltonagency.com
RED CAT HOLDINGS |
Condensed Consolidated Balance Sheets |
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July 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 |
|
$ |
8,875,169 |
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$ |
15,987,687 |
|
Intangible assets including goodwill, net |
|
|
24,118,468 |
|
|
|
24,335,836 |
|
Inventory, including deposits |
|
|
11,084,959 |
|
|
|
9,280,073 |
|
Accounts receivable, net |
|
|
720,642 |
|
|
|
719,862 |
|
Other |
|
|
4,723,848 |
|
|
|
4,478,080 |
|
Assets of discontinued operations |
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|
4,627,792 |
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|
5,391,552 |
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TOTAL
ASSETS |
|
$ |
54,150,878 |
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|
$ |
60,193,090 |
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LIABILITIES AND
STOCKHOLDERS' EQUITY |
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|
|
|
|
|
Accounts payable and accrued expenses |
|
$ |
1,316,026 |
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|
$ |
1,957,975 |
|
Debt obligations |
|
|
1,185,718 |
|
|
|
1,323,707 |
|
Warrant derivative liability |
|
|
561,685 |
|
|
|
588,205 |
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Other |
|
|
594,562 |
|
|
|
661,263 |
|
Liabilities of discontinued operations |
|
|
499,489 |
|
|
|
1,052,315 |
|
Total liabilities |
|
|
4,157,480 |
|
|
|
5,583,465 |
|
|
|
|
|
|
|
|
Stockholders’ capital |
|
|
110,960,621 |
|
|
|
110,057,535 |
|
Accumulated deficit/comprehensive loss |
|
|
(60,967,223 |
) |
|
|
(55,447,910 |
) |
Total stockholders' equity |
|
|
49,993,398 |
|
|
|
54,609,625 |
|
TOTAL LIABILITIES AND
STOCKHOLDERS' EQUITY |
|
$ |
54,150,878 |
|
|
$ |
60,193,090 |
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Condensed
Consolidated Statements of Operations |
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Three months ended July 31, |
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|
2023 |
|
2022 |
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Revenues |
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$ |
1,748,129 |
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|
$ |
1,126,551 |
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Cost of
goods sold |
|
|
1,573,464 |
|
|
|
1,044,431 |
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Gross
margin |
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|
174,665 |
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|
82,120 |
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Operating
expenses |
|
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|
|
|
|
Operations |
|
|
707,903 |
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|
886,303 |
|
Research and development |
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|
1,138,127 |
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|
449,964 |
|
Sales and marketing |
|
|
986,908 |
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|
|
406,953 |
|
General and administrative |
|
|
1,443,156 |
|
|
|
1,062,404 |
|
Stock based compensation |
|
|
911,606 |
|
|
|
755,471 |
|
Total operating expenses |
|
|
5,187,700 |
|
|
|
3,561,095 |
|
Operating
loss |
|
|
(5,013,035 |
) |
|
|
(3,478,975 |
) |
|
|
|
|
|
|
|
Other
(income) expense |
|
|
|
|
|
|
Change in fair value of derivative liability |
|
|
(26,520 |
) |
|
|
92,922 |
|
Other |
|
|
581,260 |
|
|
|
20,305 |
|
Other
(income) expense |
|
|
554,740 |
|
|
|
113,227 |
|
|
|
|
|
|
|
|
Net loss
from continuing operations |
|
$ |
(5,567,775 |
) |
|
$ |
(3,592,202 |
) |
|
|
|
|
|
|
|
Loss
from discontinued operations |
|
|
(242,573 |
) |
|
|
(219,397 |
) |
Net
loss |
|
$ |
(5,810,348 |
) |
|
$ |
(3,811,599 |
) |
|
|
|
|
|
|
|
Loss per
share - basic and diluted |
|
$ |
(0.11 |
) |
|
$ |
(0.07 |
) |
|
|
|
|
|
|
|
Weighted
average shares outstanding - |
|
|
|
|
|
|
basic
and diluted |
|
|
54,935,339 |
|
|
|
53,778,154 |
|
Condensed Consolidated Statements of Cash
Flows |
|
|
|
|
|
|
|
|
Three months ended July 31, |
|
|
|
|
2023 |
|
|
|
2022 |
|
Cash Flows from Operating
Activities |
|
|
|
|
|
|
|
|
Net loss from continuing operations |
|
$ |
(5,567,775 |
) |
|
$ |
(3,592,202 |
) |
Non-cash expenses |
|
|
1,496,091 |
|
|
|
943,500 |
|
Changes in operating assets and liabilities |
|
|
(2,854,385 |
) |
|
|
(1,166,060 |
) |
Net cash used in operating
activities |
|
|
(6,926,069 |
) |
|
|
(3,814,762 |
) |
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Cash Flows from Investing
Activities |
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Proceeds from sale of marketable securities, net |
|
|
4,888,399 |
|
|
|
8,204,649 |
|
Other, net |
|
|
(5,054 |
) |
|
|
(544,942 |
) |
Net cash provided by investing
activities |
|
|
4,883,345 |
|
|
|
7,659,707 |
|
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|
|
|
|
|
|
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|
Cash Flows from Financing
Activities |
|
|
|
|
|
|
|
|
Payments of debt obligations |
|
|
(137,989 |
) |
|
|
(215,650 |
) |
Payments related to employee equity transactions |
|
|
(8,520 |
) |
|
|
(469,631 |
) |
Net cash used in financing
activities |
|
|
(146,509 |
) |
|
|
(685,281 |
) |
|
|
|
|
|
|
|
|
|
Net cash used in discontinued
operations |
|
|
(118,295 |
) |
|
|
(999,053 |
) |
|
|
|
|
|
|
|
|
|
Net (decrease) increase in
Cash |
|
|
(2,307,528 |
) |
|
|
2,160,611 |
|
Cash, beginning of period |
|
|
3,260,305 |
|
|
|
4,084,815 |
|
Cash, end of period |
|
|
952,777 |
|
|
|
6,245,426 |
|
Marketable securities |
|
|
7,922,392 |
|
|
|
36,708,627 |
|
Cash and marketable
securities |
|
$ |
8,875,169 |
|
|
$ |
42,954,053 |
|
|
|
|
|
|
|
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|
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