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    Ashok Kumar • ThinkEquity

    Ashok Kumar's questions to Red Cat Holdings Inc (RCAT) leadership

    Ashok Kumar's questions to Red Cat Holdings Inc (RCAT) leadership • Q1 2025

    Question

    Ashok Kumar asked about the key milestones needed to achieve the 2025 revenue guidance, the expected revenue from the new USV maritime division, the company's competitive differentiation, the status of the Russell 2000 inclusion, margin improvements from the Palantir partnership, factory production capacity, and the company's liquidity and cash burn rate following its recent capital raise.

    Answer

    CEO Jeffrey Thompson confirmed Red Cat expects to be included in the Russell 2000 reconstitution. He detailed the USV strategy, which involves partnering with experienced boat builders and leveraging a proven tech stack, contrasting it with competitors' 'Silicon Valley model'. He anticipates minimal USV revenue in 2025 but highlighted a strong competitive position for the Indo-Pacific region. Thompson noted that production is now ramping for both FlightWave and Black Widow drones, which will improve financials. He also affirmed the company is well-financed with the recent $30 million raise, positioning them to focus on execution.

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    Ashok Kumar's questions to Red Cat Holdings Inc (RCAT) leadership • Q2 2025

    Question

    Ashok Kumar asked for specifics on the potential revenue per drone from the Palantir AI software, the operational timeline for the FlightWave factory, and whether the Palantir software would also be integrated into the Edge 130 drone.

    Answer

    CEO Jeff Thompson stated that while a specific per-drone revenue figure for the Palantir software is not yet available, it will be a high-margin addition. He confirmed the FlightWave factory is being set up, with a preliminary production line expected in 3-4 weeks and a full factory operational in about two months to fulfill existing orders. Thompson also affirmed that after the Black Widow integration is complete, the Palantir software will be integrated into the Edge 130.

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    Ashok Kumar's questions to Red Cat Holdings Inc (RCAT) leadership • Q1 2025

    Question

    Ashok Kumar of ThinkEquity inquired about the composition of Red Cat's record $13 million backlog and asked if the entire backlog is expected to ship within the current calendar year.

    Answer

    Executive Jeffrey Thompson explained that the product mix is a new development for the company, with approximately half of the backlog consisting of the recently acquired FlightWave Edge 130 Blue drone. Thompson stated that the company aims to ship a significant portion of this backlog by the end of the calendar year, acknowledging the operational complexities of transitioning from a fiscal to a calendar year reporting schedule.

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