Red Cat Holdings, Inc. Files 10-Q for Q3 2024

TL;DR

<b>Red Cat Holdings, Inc. filed its Q3 2024 10-Q report on March 18, 2024.</b>

AI Summary

Red Cat Holdings, Inc. (RCAT) filed a Quarterly Report (10-Q) with the SEC on March 18, 2024. Red Cat Holdings, Inc. filed a 10-Q for the period ending January 31, 2024. The filing covers the third quarter of fiscal year 2024. The company's fiscal year ends on April 30. The filing was made on March 18, 2024. The company was formerly known as TimefireVR Inc., EnergyTEK Corp., and BROADLEAF CAPITAL PARTNERS INC.

Why It Matters

For investors and stakeholders tracking Red Cat Holdings, Inc., this filing contains several important signals. This filing provides investors with the latest financial performance and operational updates for Red Cat Holdings, Inc. for the third quarter of fiscal year 2024. Understanding the details within this 10-Q is crucial for assessing the company's financial health, strategic direction, and potential future performance.

Risk Assessment

Risk Level: low — Red Cat Holdings, Inc. shows low risk based on this filing. The filing is a standard quarterly report (10-Q) and does not contain immediate red flags or significant negative developments.

Analyst Insight

Review the detailed financial statements and management discussion within the 10-Q to understand Red Cat Holdings' performance and outlook.

Financial Highlights

total Assets

71567007

total Debt

54586793

Key Numbers

• 2024-01-31 — Reporting Period End Date (Conformed Period of Report)
• 2024-03-18 — Filing Date (Filed as of Date)
• 0430 — Fiscal Year End (Fiscal Year End)
• 71567007 — Total Assets (Previous Period) (Implied from filing structure, likely prior year end)
• 54586793 — Total Debt (Previous Period) (Implied from filing structure, likely prior year end)

Key Players & Entities

• Red Cat Holdings, Inc. (company) — Filer
• TimefireVR Inc. (company) — Former company name
• EnergyTEK Corp. (company) — Former company name
• BROADLEAF CAPITAL PARTNERS INC (company) — Former company name

FAQ

Industry Context

Red Cat Holdings, Inc. operates in the software services industry, specifically focusing on prepackaged software.

Regulatory Implications

The company is subject to standard SEC reporting requirements for publicly traded companies, including the filing of quarterly (10-Q) and annual (10-K) reports.

What Investors Should Do

1. Analyze the financial statements for revenue, net income, and cash flow.
2. Review the Management's Discussion and Analysis (MD&A) section for operational insights.
3. Check for any new risk factors or updates to existing ones.

Key Dates

• 2024-01-31: Quarterly Period End — End of the reporting period for the 10-Q filing.
• 2024-03-18: Filing Date — Date the 10-Q was officially filed with the SEC.
• 2024-04-30: Fiscal Year End — Marks the end of Red Cat Holdings' fiscal year.

Year-Over-Year Comparison

This is the 10-Q filing for the third quarter of fiscal year 2024, providing updated financial information compared to previous filings.

Key Financial Figures

• $1,995,114 — ly to consumers. The purchase price was $1,995,114. B. In November 2020, the Company ac
• $8,354,076 — drone industry. The purchase price was $8,354,076. C. In May 2021, the Company acquire
• $2,791,012 — s of miles away. The purchase price was $2,791,012. D. In August 2021, the Company acqu
• $10,011,279 — AV") technology. The purchase price was $10,011,279. Following the Teal acquisition in Au
• $9,200,000 — stock which generated gross proceeds of $9,200,000 and net proceeds of approximately $8,40
• $8,400,000 — 0,000 and net proceeds of approximately $8,400,000. On February 16, 2024 , we closed the
• $7,697,335 — s – At January 31, 2024, we had cash of $7,697,335 in multiple commercial banks and financ
• $0 — nce sheets. Accrued interest income was $0 and $151,671 as of January 31, 2024 and
• $151,671 — ets. Accrued interest income was $0 and $151,671 as of January 31, 2024 and April 30, 20

Filing Documents

• rcat0318form10q.htm (10-Q) — 1161KB
• rcat0318form10qexh10_1.htm (EX-10.1) — 10KB
• rcat0318form10qexh31_1.htm (EX-31.1) — 9KB
• rcat0318form10qexh31_2.htm (EX-31.2) — 9KB
• rcat0318form10qexh32_1.htm (EX-32.1) — 4KB
• rcat0318form10qexh32_2.htm (EX-32.2) — 4KB
• 0001554795-24-000065.txt (&nbsp;) — 6536KB
• rcat-20240131.xsd (EX-101.SCH) — 78KB
• rcat-20240131_cal.xml (EX-101.CAL) — 66KB
• rcat-20240131_def.xml (EX-101.DEF) — 132KB
• rcat-20240131_lab.xml (EX-101.LAB) — 395KB
• rcat-20240131_pre.xml (EX-101.PRE) — 314KB
• rcat0318form10q_htm.xml (XML) — 1170KB

Financial Statements (unaudited)

Financial Statements (unaudited) 3 Consolidated Balance Sheets as of January 31, 2024 and April 30, 2023 3 Consolidated Statements of Operations for the Three and Nine Months Ended January 31, 2024 and 2023 4 Consolidated Statements Stockholders' Equity for the Three and Nine Months Ended January 31, 2024 and 2023 5 Consolidated Statements of Cash Flows for the Nine Months Ended January 31, 2024 and 2023 6

Notes to Consolidated Financial Statements

Notes to Consolidated Financial Statements 7 Item 2.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 24 Item 3.

Quantitative and Qualitative Disclosures about Market Risk

Quantitative and Qualitative Disclosures about Market Risk 31 Item 4.

Controls and Procedures

Controls and Procedures 31 PART II. OTHER INFORMATION Item 1.

Legal Proceedings

Legal Proceedings 31 Item 1A.

Risk Factors

Risk Factors 31 Item 2. Unregistered Sales of Equity Securities, Use of Proceeds, and Issuer Purchases of Equity Securities 31 Item 3. Defaults Upon Senior Securities 32 Item 4. Mine Safety Disclosures 32 Item 5. Other Information 32 Item 6. Exhibits 32

SIGNATURES

SIGNATURES 33 RED CAT HOLDINGS Consolidated Balance Sheets (Unaudited) January 31, April 30, 2024 2023 ASSETS Current assets Cash $ 7,697,335 $ 3,173,649 Marketable securities — 12,814,038 Accounts receivable, net 5,091,724 719,862 Inventory 9,093,270 8,920,573 Other 2,798,293 1,263,735 Current assets of discontinued operations 3,261,136 5,283,155 Total current assets 27,941,758 32,175,012 Goodwill 17,012,832 17,012,832 Intangible assets, net 6,672,235 7,323,004 Property and equipment, net 2,477,601 2,650,358 Other 303,180 303,180 Operating lease right-of-use assets 453,416 620,307 Long-term assets of discontinued operations 456,177 108,397 Total long-term assets 27,375,441 28,018,078 TOTAL ASSETS $ 55,317,199 $ 60,193,090 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities Accounts payable $ 2,281,874 $ 1,392,550 Accrued expenses 936,625 409,439 Debt obligations - short term 899,935 922,138 Customer deposits 52,296 155,986 Operating lease liabilities 297,435 281,797 Warrant derivative liability 285,384 588,205 Current liabilities of discontinued operations 474,439 1,010,501 Total current liabilities 5,227,988 4,760,616 Operating lease liabilities 194,727 379,466 Debt obligations - long term — 401,569 Long-term liabilities of discontinued operations 321,771 41,814 Total long-term liabilities 516,498 822,849 Commitments and contingencies Stockholders' equity Series B preferred stock - shares authorized 4,300,000 ; outstanding 4,676 and 986,676 47 9,867 Common stock - shares authorized 500,000,000 ; outstanding 74,171,106 and 54,568,065 74,171 54,568 Additional paid-in capital 121,060,881 109,993,100 Accumulated deficit ( 71,567,007 ) ( 54,586,793 ) Accumulated other comprehensive loss 4,621 ( 861,117 ) Total stockholders' equity 49,572,713 54,609,625 TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 55,317,1

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) Our unaudited interim consolidated financial statements and accompanying notes are prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP"). In the opinion of management, the unaudited interim consolidated financial statements reflect all adjustments of a normal recurring nature that are necessary for a fair presentation of the results for the interim periods presented. Interim results are not necessarily indicative of results for a full year. The information included in this Form 10-Q should be read in conjunction with the financial information included in the Annual Report on Form 10-K for the fiscal year ended April 30, 2023 of Red Cat Holdings, Inc. (the "Company" or "Red Cat"), filed with the Securities and Exchange Commission ("SEC") on July 27, 2023. Note 1 – The Business The Company was originally incorporated in February 1984. Since April 2016, the Company's primary business has been to provide products, services, and solutions to the drone industry which it presently does through its four wholly owned operating subsidiaries. Beginning in January 2020, the Company expanded the scope of its drone products and services through four acquisitions, including: A. In January 2020, the Company acquired Rotor Riot, a provider of First Person View ("FPV") drones and equipment, primarily to consumers. The purchase price was $1,995,114. B. In November 2020, the Company acquired Fat Shark Holdings ("Fat Shark"), a provider of FPV video goggles to the drone industry. The purchase price was $8,354,076. C. In May 2021, the Company acquired Skypersonic which provides hardware and software solutions that enable drones to complete inspection services in locations where GPS is either denied or not available, yet still record and transmit data even while being operated from thousands of miles away. The purchase price was $2,791,012. D. In August 2021, t

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View this 10-Q filing on SEC EDGAR