Red Cat Holdings, Inc. (NASDAQ:RCAT) Shareholder/Analyst Conference Call August 14, 2025 4:30 PM ET Company Participants Brendan Stewart - Corporate Participant Christian Koji Ericson - Chief Financial Officer Jeffrey M. Thompson - Founder, President, CEO & Chairman Stan Nowak - Vice President of Marketing Jeffrey M. Thompson [Audio Gap] aircraft systems beyond visual line of sight, also known as BVLOS, aimed at integrating unmanned aircraft systems into the national airspace. These executive orders and the ...

Financial Performance & Outlook - Ondas reported revenue of $63 million in Q2 2025, a 555% increase compared to $957851 in Q2 2024[19,35] - The company is targeting at least $25 million in revenue for the full year 2025[19] - Ondas' consolidated backlog has grown to $22 million, up from $10 million at the end of Q4 2024[22] - The company's cash balance as of Q2 2025 was $686 million[22,37] - Adjusted EBITDA improved by $905k year-over-year[36] Ondas Autonomous Systems (OAS) - OAS generated $61 million in revenues for Q2 2025 and captured $233 million in orders year-to-date[58] - OAS secured $38 million in orders for the Optimus Drone Network in the UAE[58] - OAS secured $143 million Optimus System order from a major defense customer[58] Ondas Networks & dot16 Technology - IEEE 80216t (dot16) wireless standard was ratified, with Ondas leading the development[19,46] - dot16 was selected as the NGHE communications platform by the AAR[19] - The company is launching a field trial in Q3 2025 to demonstrate converting a 160 MHz network to dot16[51]

Core Viewpoint - ZenaTech, Inc. has completed its eighth and largest acquisition of Cardinal Civil Resources, enhancing its Drone as a Service (DaaS) capabilities and expanding its footprint in the Southeast region of the United States, aligning with new regulatory changes in the drone industry [1][4]. Company Overview - ZenaTech specializes in AI-powered drones, DaaS, Enterprise SaaS, and Quantum Computing solutions, aiming to innovate and improve operational efficiencies in various sectors [6][9]. - The company has established a goal of acquiring and establishing 25 DaaS locations nationwide by mid-next year, having completed eight acquisitions to date [5]. Acquisition Details - The acquisition of Cardinal Civil Resources, a reputable land surveying and engineering firm, strengthens ZenaTech's relationships with major clients, including the US Department of Transportation [1][2]. - Cardinal Civil Resources has a strong portfolio, serving federal and state agencies, municipalities, and prominent commercial clients, which enhances ZenaTech's market position [2][7]. Strategic Timing - The acquisition coincides with the proposed BVLOS (Beyond Visual Line of Sight) rule by US Transportation Secretary Sean Duffy, which aims to streamline drone operations and expand their commercial use [4][5]. - This regulatory change is expected to unlock wider drone applications for government land and road projects, positioning ZenaTech favorably in the market [4]. Market Positioning - ZenaTech's DaaS model offers flexible, on-demand access to drone services, eliminating the need for customers to invest in drone hardware and software, thereby creating recurring revenue opportunities [5][8]. - The company is focused on acquiring land survey engineering firms and other innovative businesses to enhance its scalable, tech-enabled multiservice drone operations [5].

Core Insights - Volatus Aerospace Inc. reported financial results for FY 2024, generating total revenue of CAD 27,147,414, with a 16% year-over-year growth in services and technology revenue [2][6][10] - The company achieved a record blended gross margin of 38% in Q4 2024, up from 27% in Q3 2024, primarily due to a higher mix of margin services and technology revenue [2][6] - Normalized EBITDA for Q4 2024 was near breakeven at $(206,900), a significant improvement from $(3,344,056) in Q4 2023, attributed to successful integration efforts and cost synergies from the merger with Drone Delivery Canada [2][6][10] Financial Highlights - Total revenue for FY 2024 was CAD 27,147,414, a decrease from CAD 34,872,815 in FY 2023, with a focus on higher-margin services [6][10] - Gross profit for FY 2024 was CAD 9,556,299, with an overall gross margin increase from 32% in FY 2023 to 35% in FY 2024 [6][10] - The company realized approximately CAD 3,770,000 in cost synergies from the merger within four months [6][10] Operational Highlights - The active sales pipeline exceeds CAD 600 million, indicating strong future revenue potential [6] - Volatus completed acquisitions of UAVHub and The Drone Mentor, enhancing its operational capabilities [7] - The company expanded its global ecosystem into markets such as the UK, India, and Norway [7] Strategic Developments - A partnership was announced with DroneUp LLC to accelerate drone deliveries in the United States [11] - The company obtained Canada-wide approval for long-distance, remotely piloted BVLOS drone operations at night [11] - Volatus will host a webinar on May 2, 2025, to discuss financial results and major milestones [8]