New Horizon Aircraft Q2 Earnings Call Highlights

Core Insights - New Horizon Aircraft has achieved a significant milestone with a successful full-wing transition flight of a large-scale prototype, which is a rare accomplishment among eVTOL developers globally [1] - The company is focused on developing the Cavorite X7 as a hybrid-electric aircraft, emphasizing safety, operating costs, and durability, while avoiding the air taxi service model [2][4] Funding and Liquidity - The company reported a cash balance of over $24 million and raised more than $11 million in the quarter, alongside securing a $10.5 million non-dilutive INSAT grant to fund prototype completion within approximately 12 months [5][11] - Total operating expenses for the quarter were $5.1 million, an increase from $3.3 million in the prior year, with R&D and aircraft development spending rising significantly [13] Technical Progress and Timeline - Management plans to complete and assemble the full-scale X7 prototype by the end of 2026, with initial testing targeted for early 2027 [6][7] - The engineering team has been expanded to enhance capabilities in aerodynamics, aerostructures, propulsion, and systems integration [7] Partnerships and Non-Dilutive Funding - The company has established partnerships with Pratt & Whitney for propulsion expertise and with McLaren Applied for power electronics and systems integration [8] - The INSAT program grant is viewed as a meaningful source of funding that supports development without shareholder dilution [9][10] Market Positioning and Certification Path - The Cavorite X7 is positioned for various missions beyond air taxi operations, including cargo and medical evacuation, with expected performance targets of nearly 250 mph cruising speed and a 500-mile range [15] - Certification work is already underway, with discussions with Transport Canada and a partnership with Certification Center Canada to facilitate the process [16][17] Future Outlook - The company anticipates that operating costs will gradually increase as it expands its workforce and certification efforts, projecting total operating costs could be around double by this time next year [14] - Management is engaged in strategic discussions for future partnerships, prioritizing aerospace industry collaborations [18]