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 ...

SAN JUAN, Puerto Rico, Nov. 27, 2024 (GLOBE NEWSWIRE) -- Red Cat Holdings, Inc. (Nasdaq: RCAT), a drone technology company building hardware and software for military, government, and commercial operations, today announced the promotion of Geoffrey Hitchcock to Chief Revenue Officer (CRO). Hitchcock previously served as the General Manager for Teal Drones (a Red Cat subsidiary), where he was responsible for building a global sales organization for its hardware and software solutions. “Geoff has been instrum ...

Financial Data and Key Metrics Changes - For fiscal year 2024, revenue increased by 286% to a record $17.8 million compared to $4.6 million in fiscal year 2023 [4][12] - Fourth quarter revenue rose to $6.4 million, representing over a 100% increase from the same period last year [4][12] - Gross profit for fiscal 2024 totaled $3.7 million, approximately 21% of total revenues, compared to negative 18% in fiscal 2023 [12] - Adjusted operating expenses decreased from $18.1 million in fiscal 2023 to $17.5 million in fiscal 2024, a reduction of approximately 3% [12][13] - Cash used in operations for Q4 of fiscal 2024 was $2.3 million, a decrease of 43% sequentially and 69% compared to the same quarter in the prior fiscal year [14] Business Line Data and Key Metrics Changes - The product portfolio expanded from one drone to three drones, completing the Family of Systems strategy [5] - The Teal 2 drone was highlighted as a significant contributor to record revenues [11] Market Data and Key Metrics Changes - Global demand for small, portable autonomous systems surged, prompting the company to invest in manufacturing capacity [5] - The Replicator Initiative by the U.S. Department of Defense aims to deploy thousands of autonomous systems, with significant funding expected for drone manufacturers [9] Company Strategy and Development Direction - The Family of Systems strategy focuses on low-cost, portable, field-repairable ISR and precision strike systems, marking a shift in the drone industry [5] - Recent acquisitions, such as FlightWave, are expected to enhance the company's capabilities in ISR and mapping [6] - The company is preparing for large-scale production of the Teal 3 drone and aims to meet increasing demand [24] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about continued revenue growth and improved profit margins in the upcoming year [14] - The company is well-positioned for potential contracts in both U.S. and NATO programs of record, with significant revenue opportunities anticipated [10][11] Other Important Information - The company secured $4.4 million in non-dilutive financing through the divestiture of an investment, enhancing its financial position [13] - The company is in the final stages of selection for the U.S. Army's Short Range Reconnaissance program, with potential contracts worth hundreds of millions [10][11] Q&A Session Summary Question: Does the $10 million in cash and receivables include the $4.4 million from UMAC? - Yes, the $10.4 million in cash and accounts receivables was the balance as of April 30, and the $4.4 million is in addition to that [18][19] Question: Can you provide the magnitude of NATO programs of record compared to the U.S. Army's? - One NATO program is for 25,000 systems, which is significantly larger than the U.S. Army's SRR program of about 6,000 systems [20] Question: Is there demand for the FlightWave Edge 130 system? - There has been a great response since the announcement, indicating strong demand for the Edge 130 [21] Question: Is production capacity back up and running? - Yes, production is back up, and the company is hiring to scale production for the Teal 3 drone [24] Question: What is the expected revenue from FlightWave in 2025? - The company projects $10 million to $20 million in revenue from FlightWave in 2025 [27] Question: What is the manufacturing capacity at Salt Lake? - The Salt Lake facility can scale to produce 1,000 drones a month for the Teal 2/Teal 3 [32]

SAN JUAN, Puerto Rico, July 22, 2024 (GLOBE NEWSWIRE) -- Red Cat Holdings, Inc. (Nasdaq: RCAT) ("Red Cat"), a drone technology company integrating robotic hardware and software for military, government, and commercial operations, today announced that it secured $4.4 million of non-dilutive financing through its divestiture in Unusual Machines. Additional information on the financing will be filed with the U.S. Securities and Exchange Commission. "With military modernization, the defense drone industry is in ...

SAN JUAN, Puerto Rico, June 24, 2024 (GLOBE NEWSWIRE) -- Red Cat Holdings, Inc.(Nasdaq: RCAT) ("Red Cat"), a drone technology company integrating robotic hardware and software for military, government, and commercial operations, today announced that it is set to join the Russell Microcap® Index at the conclusion of the 2024 Russell US Indexes annual reconstitution, effective following the closing of US equity markets on Friday, June 28, 2024, according to a preliminary list of additions posted Friday, May 2 ...

The annual Russell US Indexes reconstitution captures the 4,000 largest US stocks as of Tuesday, April 30, 2024, ranking them by total market capitalization. Membership in the Russell Microcap® Index, which remains in place for one year, means automatic inclusion in the appropriate growth and value style indexes. FTSE Russell determines membership for its Russell indexes primarily by objective, market-capitalization rankings, and style attributes. Forward-Looking Statements Contacts: NEWS MEDIA: Indicate Me ...

NEWS MEDIA: Indicate Media Phone: (347) 880-2895 Email: peter@indicatemedia.com A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/3a218431-f5e2-41dd-82e0-9c0a32aaf0d3 SAN JUAN, Puerto Rico, June 17, 2024 (GLOBE NEWSWIRE) -- Red Cat Holdings, Inc.(Nasdaq: RCAT) ("Red Cat"), a drone technology company integrating robotic hardware and software for military, government, and commercial operations, today introduced its new family of unmanned Intelligence, S ...