RCAT ALERT: Levi & Korsinsky Reminds Investors of an Investigation Involving Possible Securities Fraud Violations by Red Cat Holdings, Inc. ...

RCAT ACTIVE INVESTIGATION: Contact Levi & Korsinsky if you lost money on your Red Cat Holdings, Inc. investment ...

Did Red Cat Holdings, Inc. Mislead Investors? Shareholder Rights Advocates at Levi & Korsinsky Investigate - RCAT ...

On January 16, 2025, Bloomberg reported that shares of Red Cat were "down as much as 11%" after Kerrisdale Capital said it was "short Red Cat Holdings." Contact If you have information concerning Kerrisdale Capital's report or would like more information about our investigation, please click here: Shareholder Contact | Berman Tabacco or contact us at 800-516-9926 or law@bermantabacco.com. BOSTON, Jan. 16, 2025 (GLOBE NEWSWIRE) -- Berman Tabacco announces that it is investigating potential securities law vio ...

BOSTON, Jan. 16, 2025 (GLOBE NEWSWIRE) -- Berman Tabacco announces that it is investigating potential securities law violations by Red Cat Holdings, Inc. (“Red Cat” or the “Company”) (NASDAQ: RCAT), a drone technology company. About the Investigation On November 22, 2024, Bloomberg reported that “Red Cat Holdings Inc. shares r[o]se as much as 26% on Friday trading. The drone technology company’s stock is extending gains after it said it was selected as the winner of the US Army’s Short Range Reconnaissance ...

Group 1: Company Performance - Red Cat Holdings, Inc. (RCAT) shares have increased by 561.6% over the past six months, significantly outperforming the industry growth of 25.4% and the Zacks S&P 500 composite index rise of 7.6% [1] - RCAT's stock closed at $10.9, which is 40.1% higher than its 52-week high of $15.3 [4] - Over the past year, RCAT's performance is notably better than its peers, Adeia Inc. (ADEA) and Inspired Entertainment, Inc. (INSE), which gained 9.8% and 1.1%, respectively [4] Group 2: Financial Challenges - In the second quarter of fiscal 2025, RCAT's revenue dropped by 44.7% from the previous quarter and 61% year-over-year [5] - The company recorded an operating loss of $9.1 million in the same quarter, worsening from a loss of $7.7 million in the previous quarter and $4.9 million a year ago [7] - The current ratio for RCAT was 1.43, below the industry average of 2.16, indicating liquidity issues [9] Group 3: Earnings Estimates and Dividends - The Zacks Consensus Estimate for RCAT's fiscal 2025 loss has been revised from a loss of 33 cents per share to 50 cents per share, reflecting a decline in analyst confidence [12][13] - RCAT has never paid dividends and does not plan to, making it unsuitable for dividend-seeking investors [14] Group 4: Investment Outlook - Supply-chain disruptions and cost overruns related to the Short Range Reconnaissance (SRR) contract could negatively impact RCAT's financial health [15] - The company is advised to be cautious, as the consistent decline in cash and bleak earnings prospects may lead to further stock price declines [15][16]

SAN JUAN, Puerto Rico, Jan. 08, 2025 (GLOBE NEWSWIRE) -- Red Cat Holdings, Inc. (Nasdaq: RCAT), a drone technology company integrating robotic hardware and software for military, government, and commercial operations, today announced it has received authorization from the Federal Aviation Administration (FAA) to operate unmanned aircraft systems (UAS) in U.S. airspace without broadcasting Remote Identification (Remote ID) information, specifically for the purpose of aeronautical research. “This authorizatio ...

SAN JUAN, Puerto Rico, Dec. 30, 2024 (GLOBE NEWSWIRE) -- Red Cat Holdings, Inc. (Nasdaq: RCAT) (“Red Cat” or the “Company”), a drone technology company integrating robotic hardware and software for military, government, and commercial operations, announced today that it received notice and funds to exercise 750,000 outstanding warrants to purchase shares of common stock for cash at an exercise price of $6.50 per share. The gross proceeds to the Company from the exercise of these warrants is $4.875 million. ...

Financial Data and Key Metrics - Year-to-date revenues totaled $4.3 million, a 24% decrease compared to $5.7 million for the same period last year, due to the strategic focus on Black Widow [26] - Gross margin year-to-date was negative 12% of revenue, compared to positive 25% in the same period last year, primarily due to the final delivery of SRR Tranche 2 prototypes and lower production quantities of TL2 [26] - Cash used in operations totaled $12.5 million, an 11% increase compared to the same period last year, driven by increased staffing and resources for future demands [28] - The company ended the quarter with $5.7 million in cash and accounts receivable and closed an additional $6 million financing [29] Business Line Data and Key Metrics - The company has shifted manufacturing and sales efforts to prepare for mass production of Black Widow, prioritizing long-term growth over short-term revenue [26] - The acquisition of FlightWave added the Edge 130 to the product mix, with expectations to reach up to 50% gross margins under mass production [27] - The company has received quotes totaling $14.7 million for Black Widow customers, with strong demand signals globally [17] Market Data and Key Metrics - The company has been inundated with customer requests for quotes and RFPs following the SRR announcement, with significant interest from both DoD and international markets [17] - The partnership with Palantir is expected to enhance the Black Widow's capabilities, particularly in visual navigation and AI, addressing key battlefield challenges [10][11] - The company anticipates a total addressable market (TAM) of $975 million once the DJI ban is implemented, with potential opportunities in law enforcement and first responder markets [41][43] Company Strategy and Industry Competition - The company is focused on integrating Palantir's visual navigation and AI software into the Black Widow, which is expected to significantly enhance margins and accelerate the path to profitability [12] - The company is preparing for LRIP (Low-Rate Initial Production) in the first half of 2025 and full-rate production in the second half of 2025, with the software expected to be ready for LRIP [23] - The company is applying for the Office of Strategic Capital, which could provide loans between $10 million and $150 million, offering a low-interest, grant-like funding option [32] Management Commentary on Operating Environment and Future Outlook - The company is optimistic about the future, with the Black Widow expected to be a dominant platform in the global market once the integration with Palantir's software is complete [21] - The company is exploring new and creative ways to address the commercial drone market, particularly in urban environments where RF jamming is a challenge [63] - The company believes the current administration's focus on building a large drone and robot army will be beneficial for its growth [69] Other Important Information - The company is transitioning its fiscal year end from April 30th to December 31st, with the next report being a transition 10-K for the eight months ended December 31st, 2024 [25] - The company is planning an Analyst Day in early January to provide more details on contracts and firm up guidance [13] - The company is working on integrating remote ID into the drone, which will be a key focus after completing the SRR program [63] Q&A Session Summary Question: Can you talk further about the relationship with Palantir? - The partnership with Palantir was driven by a joint customer request, and the integration is expected to be completed in the next couple of months [35] Question: Is there upside from Palantir built into the guidance? - The current guidance of $80 million to $120 million does not include additional revenue from Palantir's software, which is expected to add to the margins [36] Question: What revenue per drone can we expect with AI software from Palantir? - The company has not yet determined the per-drone revenue from Palantir's software but expects it to significantly enhance margins [38] Question: How do you expect to adapt Black Widow for non-Army business? - The Black Widow, built for the Army, is also suitable for law enforcement and first responders, with a potential TAM of $975 million once the DJI ban is implemented [40][43] Question: How does the Palantir contract help increase gross margins? - The Palantir software is expected to add high-margin revenue to the Black Widow, potentially increasing gross margins beyond the 50% achieved with hardware alone [50][52] Question: Have we seen any movement on NATO and other EU contracts? - The company is actively engaged with NATO countries and expects to see movement following the SRR announcement [55] Question: How does Red Cat plan to differentiate itself in the drone market? - The company is focused on integrating advanced technologies like Palantir's visual navigation and AI, as well as addressing specific market needs like GPS jamming and RF jamming [63] Question: Does a contract with the U.S. DoD limit you from selling drones to foreign countries? - The company can sell to foreign countries as long as they are not on the "bad boy list," though some software may require export licenses [68] Question: How might the future administration affect the size or volume of contracts? - The company believes the current administration's focus on building a large drone and robot army will be beneficial for its growth [69]

SAN JUAN, Puerto Rico, Dec. 16, 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 second quarter ended October 31, 2024 and provides a corporate update. Recent Operational Highlights: Announced selection as the winner of the U.S. Army’s Short Range Reconnaissance (SRR) Program of Record. Announced a strat ...