Red Cat (US:RCAT)2024-12-16 21:30Financial Performance - Consolidated revenues for the three months ended October 31, 2024, totaled $1,534,727, a decrease of $2,396,141 or 61% compared to $3,930,868 in the same period of 2023[142] - Product revenue for the three months ended October 31, 2024, was $1,524,791, down $1,858,447 or 55% from $3,383,238 in the prior year[142] - Consolidated revenues for the six months ended October 31, 2024, totaled $4,311,262, a decrease of $1,367,735 or 24% compared to $5,678,997 in the same period of 2023[151] - The company incurred a net loss of approximately $25,750,000 during the six months ended October 31, 2024[165] Gross Profit and Loss - Consolidated gross loss for the three months ended October 31, 2024, was $23,475, compared to a gross profit of $1,200,582 in the same period of 2023, representing a decrease of $1,224,057 or 102%[144] - Consolidated gross loss for the six months ended October 31, 2024, was $506,866, a decrease of $1,882,113 or 137% from a gross profit of $1,375,247 in the prior year[153] Net Loss from Operations - Net loss from continuing operations for the three months ended October 31, 2024, was $13,334,618, an increase of $8,090,319 or 154% from $5,244,299 in the prior year[150] - Net loss from continuing operations for the six months ended October 31, 2024, was $25,750,994, an increase of $14,912,400 or 138% from $10,838,594 in the same period of 2023[159] Expenses - Research and development expenses for the three months ended October 31, 2024, totaled $2,231,470, an increase of $9,333 or 0.5% from $2,222,137 in the prior year[145] - Sales and marketing costs for the three months ended October 31, 2024, increased by $1,311,134 or 127% to $2,343,779 compared to $1,032,645 in the same period of 2023[146] Cash Flow - Net cash used in operating activities increased by $1,247,354 or 11%, totaling $12,487,713 in 2024 compared to $11,240,359 in 2023[160] - Net cash used in operations, net of non-cash expenses, rose by $5,661,589 or 76%, amounting to $13,088,786 in 2024 versus $7,427,197 in 2023[160] - Net cash provided by investing activities decreased by $5,789,434 or 58%, totaling $4,276,207 in 2024 compared to $10,065,641 in 2023[162] - Net cash provided by financing activities was $6,755,429 in 2024, a significant increase from net cash used of $286,206 in 2023[163] Assets and Liabilities - As of October 31, 2024, current assets were $20,913,163 and current liabilities were $14,672,706, resulting in net working capital of $6,240,457[164] - Cash totaled $4,611,092 at October 31, 2024, with inventory-related balances amounting to $12,554,330[164] Company Developments - The Company acquired FlightWave Aerospace Systems Corporation for an aggregate purchase price of $14,000,000 in shares of common stock[131] - The company received proceeds of approximately $8,000,000 and $6,000,000 from financings in September 2024 and November 2024, respectively[165] - The company was selected as the winner of the U.S. Army's Short Range Reconnaissance (SRR) Program of Record in November 2024, which is expected to enhance gross profits[165] - The company has never been profitable and has raised substantial doubt about its ability to continue as a going concern[165]