Red Cat Holdings Reports FY24 Results: $4.1M Revenue, $81.1M Net Loss

TL;DR

RCAT FY24: $4.1M revenue, $81.1M loss. Big red flag.

AI Summary

Red Cat Holdings, Inc. filed its 10-K for the fiscal year ending April 30, 2024, reporting total assets of $21.5 million and total liabilities of $17.7 million. The company's revenue for the fiscal year was $4.1 million, with a net loss of $81.1 million. Red Cat Holdings, Inc. previously operated under the names TimefireVR Inc., EnergyTEK Corp., and BROADLEAF CAPITAL PARTNERS INC.

Why It Matters

This filing provides a comprehensive overview of Red Cat Holdings' financial performance and position for the fiscal year 2024, which is crucial for investors to assess the company's profitability and solvency.

Risk Assessment

Risk Level: high — The company reported a significant net loss of $81.1 million against $4.1 million in revenue, indicating substantial financial challenges.

Key Numbers

• $21.5M — Total Assets (As of April 30, 2024)
• $17.7M — Total Liabilities (As of April 30, 2024)
• $4.1M — Revenue (For the fiscal year ended April 30, 2024)
• $81.1M — Net Loss (For the fiscal year ended April 30, 2024)

Key Players & Entities

• Red Cat Holdings, Inc. (company) — Filer of the 10-K
• 2024-04-30 (date) — Fiscal year end
• $21.5 million (dollar_amount) — Total assets
• $17.7 million (dollar_amount) — Total liabilities
• $4.1 million (dollar_amount) — Revenue for fiscal year 2024
• $81.1 million (dollar_amount) — Net loss for fiscal year 2024
• TimefireVR Inc. (company) — Former company name
• EnergyTEK Corp. (company) — Former company name
• BROADLEAF CAPITAL PARTNERS INC (company) — Former company name

FAQ

Key Financial Figures

• $0.001 — ch registered Common stock, par value $0.001 RCAT Nasdaq Capital Market Securit
• $2.0 million — rriot.com. The total purchase price was $2.0 million. In November 2020, the Company acquir
• $8.4 million — or drone. The total purchase price was $8.4 million. In May 2021, we acquired Skypersonic
• $2.8 million — available. The total purchase price was $2.8 million. In August 2021, the Company acquired
• $10.0 million — lications. The total purchase price was $10.0 million. Following the Teal acquisition in Au
• $5.7 million — ts SRR T2 contract, whose value totaled $5.7 million. Teal expects the Army to announce vend
• $1.8 Million — of calendar 2024. U.S. Border Patrol $1.8 Million Purchase Order from U.S. Border Patrol
• $1.8 million — In September 2023, Teal was awarded a $1.8 million contract from U.S. Customs and Border P
• $90 Million — Border Protection Contract Worth up to $90 Million over Five Years In December 2021, Tea
• $90 million — tion. The BPA has an estimated value of $90 million in total over a 5-year period. The Dep
• $5.2 million — l received two purchase orders totaling $5.2 million from the U.S. Defense Logistics Agency
• $33 b — rogram. This 10-year program, capped at $33 billion, covers the delivery of logistics
• $2.5 million — ountries In March 2024, Teal received $2.5 million in new contract awards with two NATO al
• $54.6 billion — bal drone market is expected to grow to $54.6 billion by 2030, with the commercial market gro
• $34.9 billion — market is projected to reach a value of $34.9 billion by 2030 at a CAGR of 11.6%. 7 Gover

Filing Documents

• rcat0808form10k.htm (10-K) — 1289KB
• rcat0808form10kexh4_2.htm (EX-4.2) — 43KB
• rcat0808form10kexh4_3.htm (EX-4.3) — 34KB
• rcat0808form10kexh10_1.htm (EX-10.1) — 147KB
• rcat0808form10kexh21_1.htm (EX-21.1) — 5KB
• rcat0808form10kexh31_1.htm (EX-31.1) — 9KB
• rcat0808form10kexh31_2.htm (EX-31.2) — 9KB
• rcat0808form10kexh32_1.htm (EX-32.1) — 4KB
• rcat0808form10kexh32_2.htm (EX-32.2) — 4KB
• rcat0808form10kexh97_1.htm (EX-97.1) — 47KB
• image_001.gif (GRAPHIC) — 5KB
• 0001554795-24-000195.txt ( ) — 7149KB
• rcat-20240430.xsd (EX-101.SCH) — 81KB
• rcat-20240430_cal.xml (EX-101.CAL) — 74KB
• rcat-20240430_def.xml (EX-101.DEF) — 152KB
• rcat-20240430_lab.xml (EX-101.LAB) — 436KB
• rcat-20240430_pre.xml (EX-101.PRE) — 351KB
• rcat0808form10k_htm.xml (XML) — 997KB

Business

Business 4 Item 1A.

Risk Factors

Risk Factors 10 Item 1B. Unresolved Staff Comments 27 Item 1C. Cybersecurity 27 Item 2.

Properties

Properties 28 Item 3.

Legal Proceedings

Legal Proceedings 29 Item 4 Mine Safety Disclosures 29 PART II Item 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities 29 Item 6. Reserved 30 Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations 30 Item 7A. Quantitative and Qualitative Disclosures About Market Risk 34 Item 8.

Financial Statements

Financial Statements and Supplementary Data 35 Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure 60 Item 9A.

Controls and Procedures

Controls and Procedures 60 Item 9B. Other Information 61 Item 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections 61 PART III Item 10. Directors, Executive Officers, and Corporate Governance 61 Item 11.

Executive Compensation

Executive Compensation 62 Item 12.

Security Ownership of

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters 62 Item 13. Certain Relationships and Related Transactions, and Director Independence 62 Item 14. Principal Accountant Fees and Services 62 PART IV Item 15. Exhibits and Financial 62 Item 16. Form 10-K Summary 63

Signatures

Signatures 64 2 FORWARD-LOOKING This Annual Report contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (the "Securities Act") and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"). Such forward-looking statements include, among others, those statements including the words "believes", "anticipates", "expects", "intends", "estimates", "plans" and words of similar import. Such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause our actual results, performance or achievements, or industry results, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements.

Forward-looking statements

Forward-looking statements are based on our current expectations and assumptions regarding our business, potential target businesses, the economy, and other future conditions. Because forward-looking statements relate to the future, by their nature, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict. Our actual results may differ materially from those contemplated by the forward-looking fact or as guarantees or assurances of future performance. Important factors that could cause actual results to differ materially from those in the forward-looking statements include (i) the market and sales success of our existing and any new products, (ii) our ability to raise capital when needed and on acceptable terms, (iii) our ability to make acquisitions and integrate acquired businesses into our company, (iv) our ability to attract and retain management, (v) the intensity of competition, (vi) changes in the political and regulatory environment and in business and economic conditions in the United States and globally, (vii) geopolitical conflicts throughout the world, including those in Ukraine and Israel. These risks and others described under the section "Risk Factors" below are not exhaustive. Given these uncertainties, readers of this Annual Report are cautioned not to place undue reliance on such forward-looking statements. We disclaim any obligation to update any such factors or to publicly announce the result of any revisions to any of the forward-looking statements contained herein to reflect future events or developments. All references in this Annual Report to the "Company", "we", "us", or "our", are to Red Cat Holdings, Inc., a Nevada corporation, including its wholly owned consolidated subsidiaries Skypersonic, Inc. ("Skypersonic"), Teal Drones, Inc. ("Teal"), and Red Cat

BUSINESS

ITEM 1. BUSINESS Overview The Company was originally incorporated under the laws of the State of Colorado in 1984 under the name Oravest International, Inc. In November 2016, we changed our name to TimefireVR, Inc. and re-incorporated in Nevada. In May 2019, the Company completed a share exchange agreement with Propware which resulted in the Propware shareholders acquiring an 83% ownership interest, and management control, of the Company. In connection with the share exchange agreement, we changed our name to Red Cat Holdings, Inc. ("Red Cat" or the "Company" or "we") and our operating focus to the drone industry. Prior to the share exchange agreement, Propware was focused on the research and development of software solutions that could provide secure cloud-based analytics, storage and services for the drone industry. Following the share exchange agreement and its name change, Red Cat has completed a series of acquisitions and financings which have broadened the scope of its activities in the drone industry. These acquisitions included: In January 2020, we acquired Rotor Riot, a reseller of drones and related parts, primarily to the consumer marketplace through its digital storefront located at www.rotorriot.com. The total purchase price was $2.0 million. In November 2020, the Company acquired Fat Shark which sells consumer electronics products to the first-person view ("FPV") sector of the drone industry. Fat Shark's flagship products are headsets with a built-in display (or "goggles") that allow a pilot to see a real-time video feed from a camera typically mounted on an aerial platform or drone. The total purchase price was $8.4 million. In May 2021, we acquired Skypersonic, a provider of drone products and software solutions that enable drone inspection flights that can be executed by pilots anywhere in the world. Skypersonic powers drones to "Fly Anywhere" and "Inspect the Impossible". Its patented software and hardware solutions allow for inspection s

View Full Filing

View this 10-K filing on SEC EDGAR