Red Cat (US:RCAT)2025-11-13 21:38Financial Performance - Consolidated revenues for the three months ended September 30, 2025, totaled $9,646,392, an increase of $8,353,945 or 646% compared to the same period in 2024[124] - Gross profit for the 2025 period was $637,502, a significant increase of $1,029,465 from a gross loss of $391,963 in the 2024 period, resulting in a gross profit margin of 7%[125] - The company reported a gross profit of $162,146 for the nine months ended September 30, 2025, a decrease of $834,899 or 84% compared to the same period in 2024[132] - Other income for the 2025 period totaled $2,209,203, a significant improvement compared to other expense of $3,991,934 in the 2024 period[129] Expenses - Research and development expenses rose to $5,968,131 in the 2025 period, an increase of $4,088,645 or 218% compared to the 2024 period[126] - General and administrative expenses increased to $9,215,783 during the 2025 period, up by $5,106,939 or 124% from the previous year[128] - Sales and marketing costs increased to $9,487,010 during the 2025 period, representing a rise of $3,904,541 or 70% compared to the previous year[134] Net Loss and Cash Flow - Net loss from continuing operations for the nine months ended September 30, 2025, was $52,418,759, an increase of $26,417,399 or 102% compared to the same period in 2024[138] - Net cash used in operating activities was $52,656,680 during the nine months ended September 30, 2025, an increase of $37,963,914 or 258% from the prior year[139] Assets - Current assets as of September 30, 2025, totaled $248,802,498, with cash amounting to $206,425,996[142] Fair Value and Risk Disclosures - The fair value of the issued warrants is estimated using a Monte Carlo simulation model, with significant unobservable inputs including stock price, exercise price, risk-free rate of return, time to expiration, and volatility[155] - Changes in unobservable inputs could lead to a material increase or decrease in the estimated fair value of the warrants[155] - The company is classified as a "smaller reporting company" and is not required to provide certain market risk disclosures[156]