SAN JUAN, Puerto Rico, May 14, 2025 (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, reports its financial results for the first quarter ended March 31, 2025 and provides a corporate update.
Recent Operational Highlights
First Quarter 2025 Financial Highlights
“Red Cat’s momentum continues to build as we execute on our strategy to deliver advanced, AI-enabled unmanned systems across air, land, and sea," said Jeff Thompson, Red Cat CEO. "Our partnership with Palantir to deploy Warp Speed is optimizing our manufacturing and cost efficiency, while our expansion into maritime autonomy with Unmanned Surface Vessels significantly expands our Family of Systems. A strong balance sheet bolstered by a recent $30 million capital raise positions us strongly to meet growing domestic and international demand in the second half of 2025.”
“Our balance sheet remains strong as we transition to production and delivery of our new Black Widow drones,” said Chris Ericson, Red Cat CFO. “We have bolstered our quarter-end cash and receivables of $9 million with an additional $30 million from a capital raise executed soon after quarter-end. This liquidity has given us ample strength and ability to expand manufacturing to meet the impending demands of the U.S. Army’s SRR program and international opportunities for the second half of 2025.”
Conference Call Today
CEO Jeff Thompson and CFO Chris Ericson will host an earnings conference call at 4:30 p.m. ET on Wednesday, May 14, 2025, to review financial results and provide an update on corporate developments. Following management’s formal remarks, there will be a question-and-answer session. Interested parties can attend the conference call through a live webcast that can be accessed at: https://event.choruscall.com/mediaframe/webcast.html?webcastid=OqffyYp4
About Red Cat Holdings, Inc.
Red Cat (Nasdaq: RCAT) is a drone technology company integrating robotic hardware and software for military, government, and commercial operations. Through two wholly owned subsidiaries, Teal Drones and FlightWave Aerospace, Red Cat has developed a Family of Systems. This includes the Black Widow™, a small unmanned ISR system that was awarded the U.S. Army’s Short Range Reconnaissance (SRR) Program of Record contract. The Family of Systems also includes TRICHON™, a fixed-wing VTOL for extended endurance and range, and FANG™, the industry's first line of NDAA-compliant FPV drones optimized for military operations with precision strike capabilities. Learn more at www.redcat.red.
Forward Looking Statements
This press release contains "forward-looking statements" that are subject to substantial risks and uncertainties. All statements, other than statements of historical fact, contained in this press release are forward-looking statements. Forward-looking statements contained in this press release may be identified by the use of words such as "anticipate," "believe," "contemplate," "could," "estimate," "expect," "intend," "seek," "may," "might," "plan," "potential," "predict," "project," "target," "aim," "should," "will" "would," or the negative of these words or other similar expressions, although not all forward-looking statements contain these words. Forward-looking statements are based on Red Cat Holdings, Inc.'s current expectations and are subject to inherent uncertainties, risks and assumptions that are difficult to predict. Further, certain forward-looking statements are based on assumptions as to future events that may not prove to be accurate. These and other risks and uncertainties are described more fully in the section titled "Risk Factors" in the Form 10-K filed with the Securities and Exchange Commission on July 27, 2023. Forward-looking statements contained in this announcement are made as of this date, and Red Cat Holdings, Inc. undertakes no duty to update such information except as required under applicable law.
Contact:
INVESTORS:
E-mail: Investors@redcat.red
NEWS MEDIA:
Phone: (347) 880-2895
Email: peter@indicatemedia.com
| RED CAT HOLDINGS | ||||||||
| Condensed Consolidated Balance Sheets | ||||||||
| March 31, | December 31, | |||||||
| 2025 | 2024 | |||||||
| ASSETS | ||||||||
| Cash | $ | 7,722,410 | $ | 9,154,297 | ||||
| Accounts receivable, net | 1,554,295 | 489,316 | ||||||
| Inventory, including deposits | 17,107,860 | 13,592,900 | ||||||
| Intangible assets including goodwill, net | 25,718,450 | 26,124,133 | ||||||
| Other | 7,552,833 | 6,243,621 | ||||||
| TOTAL ASSETS | $ | 59,655,848 | $ | 55,604,267 | ||||
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||
| Accounts payable and accrued expenses | $ | 2,712,333 | $ | 3,289,634 | ||||
| Debt obligations | 350,000 | 350,000 | ||||||
| Customer deposits | 220,517 | 227,484 | ||||||
| Operating lease liabilities | 2,329,194 | 1,617,596 | ||||||
| Convertible notes payable | 25,132,556 | — | ||||||
| Total liabilities | 30,744,600 | 5,484,714 | ||||||
| Stockholders’ capital | 176,779,302 | 174,864,256 | ||||||
| Accumulated deficit/comprehensive loss | (147,868,054 | ) | (124,744,703 | ) | ||||
| Total stockholders' equity | 28,911,248 | 50,119,553 | ||||||
| TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ | 59,655,848 | $ | 55,604,267 | ||||
| Condensed Consolidated Statements of Operations | |||||||||
|
Three months ended March 31, |
|||||||||
| 2025 | 2024 | ||||||||
| Revenues | $ | 1,629,662 | $ | 6,614,029 | |||||
| Cost of goods sold | 2,480,072 | 5,492,825 | |||||||
| Gross (loss) profit | (850,410 | ) | 1,121,204 | ||||||
| Operating Expenses | |||||||||
| Research and development | 3,432,593 | 2,669,502 | |||||||
| Sales and marketing | 3,314,748 | 1,410,506 | |||||||
| General and administrative | 4,880,448 | 3,084,495 | |||||||
| Total operating expenses | 11,627,789 | 7,164,503 | |||||||
| Operating loss | (12,478,199 | ) | (6,043,299 | ) | |||||
| Other expense (income) | 10,645,152 | (635,676 | ) | ||||||
| Net loss from continuing operations | (23,123,351 | ) | (5,407,623 | ) | |||||
| Loss from discontinued operations | — | (1,373,457 | ) | ||||||
| Net loss | $ | (23,123,351 | ) | $ | (6,781,080 | ) | |||
| Loss per share - basic and diluted | $ | (0.27 | ) | $ | (0.09 | ) | |||
| Weighted average shares outstanding - basic and diluted | 85,505,520 | 74,204,622 |
|
Condensed Consolidated Statements of Cash Flows | ||||||||
| Three months ended March 31, | ||||||||
| 2025 | 2024 | |||||||
| Cash Flows from Operating Activities | ||||||||
| Net loss from continuing operations | $ | (23,123,351 | ) | $ | (5,407,623 | ) | ||
| Non-cash expenses | 12,886,204 | 1,129,679 | ||||||
| Changes in operating assets and liabilities | (5,670,590 | ) | (97,316 | ) | ||||
| Net cash used in operating activities | (15,907,737 | ) | (4,375,260 | ) | ||||
| Cash Flows from Investing Activities | ||||||||
| Proceeds from divestiture of consumer segment | — | 1,000,000 | ||||||
| Purchases of property and equipment | (273,103 | ) | (75,991 | ) | ||||
| Net cash (used in) provided by investing activities | (273,103 | ) | 924,009 | |||||
| Cash Flows from Financing Activities | ||||||||
| Proceeds from issuance of convertible notes payable, net | 14,432,879 | — | ||||||
| Proceeds from exercise of stock options | 316,074 | — | ||||||
| Payments of debt obligations, net | — | (147,147 | ) | |||||
| Net cash provided by (used in) financing activities | 14,748,953 | (147,147 | ) | |||||
| Net cash used in discontinued operations | — | (194,969 | ) | |||||
| Net decrease in Cash | (1,431,887 | ) | (3,793,367 | ) | ||||
| Cash, beginning of period | 9,154,297 | 10,245,064 | ||||||
| Cash, end of period | $ | 7,722,410 | $ | 6,451,697 |