Red Cat Holdings Reports Financial Results for Fiscal Year Ended April 30, 2024 and Provides Business Update

SAN JUAN, Puerto Rico, Aug. 08, 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 year ended April 30, 2024 and provides a business update

Recent Operational Highlights:

  • Certification of Teal 2 as Blue UAS received from U.S. Department of Defense
  • Continued global sales expansion into Middle East and Latin American markets
  • Selected by U.S. Army as finalist for Short Range Reconnaissance Program of Record
  • Launched Red Cat Futures Initiative Drone Industry Consortium
  • Introduced new Family of Low-Cost, Portable ISR and Precision Strike Systems
  • Formed new industry partnerships to integrate advanced AI and GPS-denied capabilities

Fiscal Year 2024 Financial Highlights:

  • Consolidated revenues in fiscal 2024 increased 286% year-over-year to $17.8 million
  • Fourth consecutive quarter of record revenues with $6.3 million in the fourth fiscal quarter
  • Completed divesture of Consumer segment in February 2024
  • Over $10.4 million of combined cash and account receivable balances as of April 30, 2024
  • Reduced quarterly cash burn to $1.6 million

“Small Drones have become a crucial tool in modern military operations, offering new capabilities and changing the dynamics of warfare,” said Jeff Thompson, Red Cat CEO. “Our singular focus on addressing this shift and innovation that supports the needs of the warfighter has spurred rapid growth for us as a business. We believe that the next six months will be a significant catalyst for mass production of our Family of Systems as governments across the globe begin supplying their armed forces with small drones.”

“We are ending the fiscal year in a fundamentally strong position, reporting solid results that include a year-over-year consolidated revenue increase of 286 percent to $17.8 million,” said Leah Lunger, Red Cat CFO. “Our performance reflects Red Cat's ability to consistently fulfill existing domestic and international contracts, and we have a robust and growing pipeline of new orders. Additionally, our pending acquisition of FlightWave as well as partnerships through the Red Cat Futures Initiative provide a runway for product diversification, new revenue streams, and continued financial growth.” 

Conference Call Today

CEO Jeff Thompson and CFO Leah Lunger will host an earnings conference call today (August 8, 2024) at 6:00 p.m. ET 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/10191533/fd3b347206

The conference call will also be available through a live webcast that can be accessed at:
https://event.choruscall.com/mediaframe/webcast.html?webcastid=uxH3YdCT

A replay of the webcast will be available until November 8, 2024 and can be accessed through the above link or at www.redcatholdings.com. A telephonic replay will be available until August 22, 2024 by calling 1-877-344-7529 (domestic) or 1-412-317-0088 (international) and using access code 5157974.

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. Red Cat’s solutions are designed to “Dominate the Night™” and include the Teal 2, a small unmanned system offering the highest-resolution thermal imaging in its class. Learn more at 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:

INVESTORS:
E-mail: Investors@redcat.red

NEWS MEDIA:
Phone: (347) 880-2895
Email: peter@indicatemedia.com

RED CAT HOLDINGS
Condensed Consolidated Balance Sheets
         
      April 30,     April 30,
      2024       2023  
ASSETS            
             
Cash and marketable securities   $ 6,067,169     $ 15,987,687  
Accounts receivable, net     4,361,090       719,862  
Inventory, including deposits     8,610,125       9,280,073  
Intangible assets including goodwill, net     12,882,939       23,905,947  
Equity method investee     5,142,500        
Note receivable     4,000,000        
Other     7,473,789       5,458,207  
Assets of discontinued operations           5,391,552  
             
TOTAL ASSETS   $ 48,537,612     $ 60,743,328  
             
             
LIABILITIES AND STOCKHOLDERS' EQUITY            
             
Accounts payable and accrued expenses   $ 2,703,922     $ 1,957,975  
Debt obligations     751,570       1,323,707  
Operating lease liabilities     1,517,590       1,641,390  
Liabilities of discontinued operations           1,052,315  
Total liabilities     4,973,082       5,975,387  
             
Stockholders’ capital     124,690,641        112,707,161   
Accumulated deficit/comprehensive loss     (81,126,111 )     (57,939,220 )
Total stockholders' equity     43,564,530       54,767,941  
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY   $ 48,537,612     $ 60,743,328  
             


Condensed Consolidated Statements of Operations 
 
    Year ended
April 30,
    2024   2023
Revenues   $ 17,836,382     $ 4,620,834  
                 
Cost of goods sold     14,155,836       5,455,145  
                 
Gross profit (loss)     3,680,546       (834,311 )
                 
Operating Expenses                
Research and development     5,896,037       5,595,281  
Sales and marketing     4,568,617       3,731,776  
General and administrative     10,679,105       12,383,470  
Impairment loss     412,999       2,826,918  
Total operating expenses     21,556,758       24,537,445  
Operating loss     (17,876,212 )     (25,371,756 )
                 
Other expense     3,650,484       1,004,887  
                 
Net loss from continuing operations     (21,526,696 )     (26,376,643 )
                 
Loss from discontinued operations     (2,525,933 )     (1,730,386 )
Net loss   $ (24,052,629 )   $ (28,107,029 )
                 
Loss per share - basic and diluted   $ (0.40 )   $ (0.52 )
                 
Weighted average shares outstanding - basic and diluted     60,118,675       53,860,199  
                 


Condensed Consolidated Statements of Cash Flows
         
      Year ended April 30,  
      2024       2023  
Cash Flows from Operating Activities                
Net loss from continuing operations   $ (21,526,696 )   $ (26,376,643 )
Non-cash expenses     8,512,449       7,784,364  
Changes in operating assets and liabilities     (4,672,816 )     (5,721,395 )
Net cash used in operating activities     (17,687,063 )     (24,313,674 )
                 
Cash Flows from Investing Activities                
Proceeds from sale of marketable securities     12,826,217       32,290,448  
Other     740,861       (2,700,213 )
Net cash provided by investing activities     13,567,078       29,590,235  
                 
Cash Flows from Financing Activities                
Payments of debt obligations, net     (572,137     (633,550
Payments related to employee equity transactions     (30,599 )     (581,775 )
Proceeds from issuance of common stock, net     8,404,812        
Net cash provided by (used in) financing activities     7,802,076       (1,215,325
                 
Net cash used in discontinued operations     (875,227 )     (4,885,746 )
                 
Net increase (decrease) in Cash     2,806,864       (824,510
Cash, beginning of period     3,260,305       4,084,815  
Cash, end of period     6,067,169       3,260,305  
Less: Cash of discontinued operations           (86,656 )
Cash of continuing operations, end of period     6,067,169       3,173,649  
Marketable securities           12,814,038  
Cash of continuing operations and marketable securities    $ 6,067,169      $ 15,987,687  
                 

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Source: Red Cat Holdings, Inc.