Mon, Sep 23, 8:20 PM (89 days ago)
For the quarter ending July 31, 2024, Red Cat Holdings, Inc. reported revenues of $2,776,535, a 59% increase from $1,748,129 in the same quarter of 2023. However, the company faced a gross loss of $483,391, contrasting with a gross profit of $174,665 a year prior, primarily due to costs associated with prototype deliveries under a U.S. Army contract. Operating expenses rose to $7,244,096 from $5,506,069, leading to a net loss from continuing operations of $12,416,376 compared to $5,594,295 in the prior year. The company's cash flow from operating activities improved, with $2,348,412 used in Q1 2024 versus $6,926,069 in Q1 2023. Total current assets stood at $21,470,151 against current liabilities of $4,230,512, yielding a working capital of approximately $17,239,639. Recent divestitures and financing efforts, including an $8 million secured convertible note, aim to bolster liquidity. However, ongoing losses raise concerns about the company's ability to sustain operations without further capital.