Sign in

RCAT on Nasdaq

Red Cat Holdings, Inc.

U.S.-based provider of advanced all-domain drone and robotic solutions for defense1

In its 2026 annual report the company says: “We develop American-made hardware and software that supports military, government, and public safety operations across air, land, and sea.”4 It is headquartered in South Salt Lake, Utah.1 Its shares trade on Nasdaq under the symbol RCAT.1

Price unavailable

Last updated Oct 21, 2026.

Overview

Compare with Alarum Technologies Ltd., AUDIOEYE INC or Datasea Intelligent Technology Ltd., or pick any stock.

  • TickerRCAT on Nasdaq1
  • IndustryServices-Prepackaged Software1
  • HeadquartersSouth Salt Lake, Utah1
  • Business address2800 S West Temple, Suite 5, South Salt Lake, Ut 841152
  • Filer categoryNon-accelerated filer, Smaller reporting company2

See how the biggest companies compare on our leaderboards

We are a U.S.-based provider of advanced all-domain drone and robotic solutions for defense, national security, and commercial applications. We develop American-made hardware and software that supports military, government, and public safety operations across air, land, and sea. Our family of systems delivers tactical capabilities in small, unmanned aircraft systems (sUAS) and uncrewed surface vessels (USVs), delivering integrated platforms designed to enhance safety and multi-domain mission effectiveness.4 From its latest annual report

Financials

From the company’s reports to the SEC. Every number links to the filing it came from.

Key numbers, fiscal 2025

3.1%Gross margin5
-163.5%Operating margin5
-177.0%Net margin5
128.4%Revenue growth, 20255
-29.3%Return on equity5

What sells

Revenue by product, business segment and region, as the company reports it to the SEC.

Products and services

Product brought in 93% of the revenue Red Cat Holdings, Inc. broke down this way in fiscal 2025.

  1. Product$37.9M593%up 177% from 2024
  2. Service$2.9M57%down 32% from 2024
Products and services by year
Products and services20242025
Product$13.7M$37.9M
Service$4.2M$2.9M

Where the money goes

Where each dollar of revenue went, fiscal 2025

  • Cost of revenue68¢$39.5M
  • Research and development31¢$17.9M
  • Income tax1¢$443.0K

Out of $40.7M in revenue.5 The company lost money this year.

Financial statements

Revenue67895$40.7M in 2025+9983% since 2020
0$20.0M$40.0M$60.0M2020: $403.9K$403.9K20202021: $5.0M$5.0M2021+1138%2022: $6.4M$6.4M2022+29%2023: $1.3M$1.3M2023−80%2024: $17.8M$17.8M2024+1259%2025: $40.7M$40.7M2025+128%
Gross profit67895$1.3M in 2025+1522% since 2020
-$2.0M0$2.0M$4.0M2020: $78.6K$78.6K20202021: $1.1M$1.1M2021+1262%2022: $925.5K$925.5K2022−13%2023: -$834.3K-$834.3K20232024: $3.7M$3.7M20242025: $1.3M$1.3M2025−65%
Operating income1095-$66.6M in 2025+8764% since 2019
-$80.0M-$60.0M-$40.0M-$20.0M02019: -$751.3K-$751.3K20192020: -$1.7M-$1.7M2020+121%2023: -$26.4M-$26.4M2023+1490%2024: -$19.3M-$19.3M2024−27%2025: -$66.6M-$66.6M2025+245%
Net income1067895-$72.1M in 2025+9493% since 2019
-$80.0M-$60.0M-$40.0M-$20.0M02019: -$751.3K-$751.3K20192020: -$1.6M-$1.6M2020+113%2021: -$13.2M-$13.2M2021+726%2022: -$11.7M-$11.7M2022−12%2023: -$28.1M-$28.1M2023+140%2024: -$24.1M-$24.1M2024−14%2025: -$72.1M-$72.1M2025+200%

Every line of the income statement as filed: the last 2 fiscal years, latest first.5

Period ending2025-12-312024-04-30
Revenues$40.7M$17.8M
Cost of goods sold$39.5M$14.2M
Gross profit (loss)$1.3M$3.7M
Research and development$17.9M$6.3M
Sales and marketing$13.1M$5.1M
General and administrative$36.9M$11.2M
Impairment loss$0$413.0K
Total operating expenses$67.9M$23.0M
Operating loss-$66.6M-$19.3M
Convertible note payable fair value adjustment$11.4M$0
Gain on extinguishment of convertible notes payable-$3.2M$0
Interest (income) expense, net-$2.7M$69.0K
Loss on sale of equity method investment$0$0
Gain on divestiture of consumer segment$0-$9.6M
Impairment on equity method investment$0$11.4M
Equity method loss$0$504.0K
Other income, net-$487.0K-$56.0K
Total other expense$5.0M$2.2M
Loss from continuing operations before provision for income taxes-$71.6M-$21.5M
Provision for income taxes$443.0K$0
Net loss from continuing operations-$72.1M-$21.5M
Loss from discontinued operations$0-$2.5M
Net loss-$72.1M-$24.1M
Change in foreign currency translation adjustments$0$2.0K
Unrealized gain on marketable securities$0$864.0K
Comprehensive loss-$72.1M-$23.2M
Continuing operations - basic (in USD per share)-$1-$0
Continuing operations - diluted (in USD per share)-$1-$0
Discontinued operations - basic (in USD per share)$0-$0
Discontinued operations - diluted (in USD per share)$0-$0
Loss per share - basic (in USD per share)-$0.73-$0.40
Loss per share - diluted (in USD per share)-$0.73-$0.40
Weighted average shares outstanding - basic (in shares99.0M shares60.1M shares
Weighted average shares outstanding - diluted (in shares)99.0M shares60.1M shares

Compare Red Cat Holdings, Inc. with another company

Corporate structure

Red Cat Holdings, Inc. sits at the top of its group. 8 entities, 1 country on record. Switch between the flow chart and the network, and select any entity to see its details.

Major holders of Red Cat Holdings, Inc.

  • Red Cat Holdings, Inc. South Salt Lake, Utah
    • Unusual Machines, Inc. Stake · Orlando, Florida
    • Blue Ops, Inc. Subsidiary · Nevada, United States
    • FW Acquisition, Inc. Subsidiary · Nevada, United States
    • Red Cat Propware, Inc. Subsidiary · Nevada, United States
    • Skypersonic, Inc. Subsidiary · Michigan, United States
    • Teal Drones, Inc. Subsidiary · Delaware, United States
    • UAVPatent Corp. Subsidiary · Nevada, United States

Built from subsidiaries listed in Exhibit 21 of annual reports filed with the SEC; major holders from Schedules 13D and 13G; stakes of 5% or more it reported on Schedules 13D and 13G (1 companies). Each entity in the chart links to its source.

What it owns

What Red Cat Holdings, Inc. reports owning in its annual reports to the SEC: buildings, land and equipment, real estate and locations, investments, intangible assets and inventory, at the end of its latest fiscal year and a year before.

Property and equipment

ItemLatestA year beforeChange
Machinery and equipment$2.1M5 Dec 31, 2025$1.6M5 Dec 31, 2024+29.7%
Furniture and fixtures$1.3M5 Dec 31, 2025$227.0K5 Dec 31, 2024+461.7%
Leasehold improvements$1.7M5 Dec 31, 2025$1.6M5 Dec 31, 2024+6.2%
Construction in progress$4.2M5 Dec 31, 2025$05 Dec 31, 2024
Property and equipment, before depreciation$1.6M13 Dec 31, 2024$1.4M13 Apr 30, 2023+17.8%
Accumulated depreciation$1.5M5 Dec 31, 2025$1.5M5 Dec 31, 2024−2.9%
Property and equipment, net$7.8M5 Dec 31, 2025$1.9M5 Dec 31, 2024+314.5%
Operating-lease assets (leased space)$13.1M5 Dec 31, 2025$1.5M5 Dec 31, 2024+780.3%

Intangibles and goodwill

ItemLatestA year beforeChange
Goodwill$17.7M5 Dec 31, 2025$17.7M5 Dec 31, 20240%
Intangible assets, net (excluding goodwill)$6.9M5 Dec 31, 2025$8.5M5 Dec 31, 2024−18.1%
Indefinite-lived intangibles (excluding goodwill)$2.0M5 Dec 31, 2025$2.0M5 Dec 31, 20240%
Finite-lived intangibles, gross$9.2M5 Dec 31, 2025$9.2M5 Dec 31, 20240%
Accumulated amortization$4.3M5 Dec 31, 2025$2.8M5 Dec 31, 2024+55.3%
Finite-lived intangibles, net$4.9M5 Dec 31, 2025$6.5M5 Dec 31, 2024−23.8%

Inventory

ItemLatestA year beforeChange
Inventory, total$23.5M5 Dec 31, 2025$13.0M5 Dec 31, 2024+81.1%
Raw materials$19.8M5 Dec 31, 2025$8.4M5 Dec 31, 2024+135.1%
Work in process$3.8M5 Dec 31, 2025$899.0K5 Dec 31, 2024+317.2%
Finished goods$2.4M5 Dec 31, 2025$4.2M5 Dec 31, 2024−42.1%

Properties, in its own words

We lease all properties where our business is operated. We believe that these properties are adequate for the purposes for which they are used. All leases are with unaffiliated third parties. We believe that the loss of any lease would not have a material adverse effect on our operations, as we believe that we could identify and lease comparable facilities upon approximately equivalent terms. The Company has the following operating leases for real estate locations where it operates:

Location · Monthly Rent · Expiration

The rest of Item 2

West Palm Beach, Florida · 18,050 · February 2032

South Salt Lake, Utah · 46,545 · December 2030

Valdosta, Georgia · 48,550 · November 2030

Torrance, California · 66,330 · October 2030

Carson, California · 22,655 · April 2028

San Juan, Puerto Rico · 6,403 · June 2027

Grantsville, Utah · 1,250 · December 2026

Spring Lake, North Carolina · 3,000 · August 2026

The West Palm Beach, Florida facility has approximately 11,400 square feet and is used for customer engagement and to support operations. The South Salt Lake, Utah facility has approximately 37,000 square feet and is used for our manufacturing. The Valdosta, Georgia facility has approximately 155,000 square feet and is used for our manufacturing. The Torrance, California facility has approximately 51,000 square feet and is used for our manufacturing. The Carson, California facility has approximately 14,616 square feet and is used for our manufacturing. The San Juan, Puerto Rico facility has approximately 3,600 square feet and is used for administrative purposes. The Grantsville, Utah property is approximately one acre and is used for drone flight operations and testing. The Spring Lake, North Carolina facility has approximately 2,840 square feet and is used for administrative purposes.

These lease agreements have remaining terms up to 14.67 years, including options to extend certain leases for up to ten years.

The weighted average remaining lease term as of December 31, 2025 was 9.04 years. The weighted average discount rate used to calculate the Company's lease liabilities at December 31, 2025 was 12%. Future undiscounted payment obligations at December 31, 2025 were as follows (in thousands):

2026 · 2,554

2027 · 2,743

2028 · 2,709

2029 · 2,695

2030 · 2,561

Thereafter · 10,009

Total · 23,271

Item 2 of the 10-K filed Mar 19, 2026.4

Leadership

Who has led Red Cat Holdings, Inc., and when. Pick a name to see everywhere that person has worked.

Chief executive

  1. Craig Crawford2014
  2. Jonathan R. Read2016–2018
  3. Jeffrey Rassas2017
  4. Jeffrey M. Thompson2019–2021
  5. Allan Thomas Evans2021–2022
  6. George Michael Matus2021–2024

Chair

  1. Jeffrey M. Thompson2021–now

President

  1. Joseph Michael King2011–2012
  2. Damon Wagley2014
  3. Craig Crawford2014
  4. John M. Wise2016
  5. Jeffrey M. Thompson2019

Chief financial officer

  1. Craig Crawford2014–2015
  2. Jessica L. Smith2016–2017
  3. Joseph P. Hernon2020–2023
  4. Leah Lunger2024–2025
  5. Christian Ericson2025
  6. Christian Spenst Morrison2025–now

Chief operating officer

  1. Allan Thomas Evans2022–2023
  2. Christian Ericson2025–now
201520202025
Board members and other officers (21)

Subsidiaries and ownership

Subsidiaries (Exhibit 21)

  • Blue Ops, Inc. Nevada3
  • FW Acquisition, Inc. Nevada3
  • Red Cat Propware, Inc. Nevada3
  • Skypersonic, Inc. Michigan3
  • Teal Drones, Inc. Delaware3
  • UAVPatent Corp. Nevada3

The subsidiaries the company lists in Exhibit 21 of its annual report, as filed.

Former names

  • TimefireVR Inc.Dec 2, 2016 to Jul 31, 20192
  • EnergyTEK Corp.Jul 23, 2014 to Nov 18, 20162
  • BROADLEAF CAPITAL PARTNERS INCJun 21, 2002 to Jun 30, 20142
  • BROADLEAF CAPITAL PARTNERS INCMay 6, 2002 to Sep 28, 20042
  • PEACOCK FINANCIAL CORPAug 20, 1996 to Feb 21, 20022

Timeline

  1. Aug 6, 20268-K Results of operations45
  2. Jul 22, 20268-K Executive or director change; Other events46
  3. Jun 25, 20268-K Shareholder vote47
  4. May 20, 20268-K Completed an acquisition or sale; Unregistered sale of shares; Regulation FD disclosure48
  5. May 18, 20268-K Other events49
  6. May 14, 20268-K Entered a material agreement; Other events50
  7. May 11, 20268-K Other events51
  8. May 7, 20268-K Results of operations52
  9. Mar 31, 20268-K Other events53
  10. Mar 31, 20268-K Entered a material agreement54
  11. Mar 18, 20268-K Results of operations55
  12. Jan 13, 20268-K Results of operations56
  13. Oct 5, 2021New chief executive George Michael Matus becomes CEO15
  14. Jan 19, 2021New chief executive Allan Thomas Evans becomes CEO14
  15. May 16, 2019New chief executive Jeffrey M. Thompson becomes CEO16
  16. Mar 14, 2017New chief executive Jeffrey Rassas becomes CEO17
  17. Dec 7, 2016New chief executive Jonathan R. Read becomes CEO18
  18. Oct 31, 2014New chief executive Craig Crawford becomes CEO19

Calendar

Coming up

  1. Nov 12, 2026Reports results for the quarter ending Sep/2026 A year earlier it reported ($0.16) a share, on Nov 13, 2025.57

When it reported results

  1. Aug 6, 2026Reported quarterly or annual results45
  2. May 7, 2026Reported quarterly or annual results52
  3. Mar 18, 2026Reported quarterly or annual results55
  4. Jan 13, 2026Reported quarterly or annual results56
  5. Mar 18, 2024Reported quarterly or annual results58
  6. Sep 21, 2023Reported quarterly or annual results59
  7. Sep 15, 2023Reported quarterly or annual results60

Upcoming dates from Nasdaq's calendar; past results from the company's 8-K filings (Item 2.02). The full markets calendar

Filings

330 filings to the SEC since October 2021: 6 annual reports, 15 quarterly reports, 80 major events, 135 insider forms, 17 large holders, 77 other. The latest 20:

  1. Oct 15, 2026144 EDGAR
  2. Oct 6, 20264 EDGAR
  3. Sep 17, 20264 EDGAR
  4. Sep 1, 20264 EDGAR
  5. Aug 28, 2026144 EDGAR
  6. Aug 19, 20264 EDGAR
  7. Aug 18, 2026144 EDGAR
  8. Aug 14, 2026SCHEDULE 13G EDGAR
  9. Aug 13, 20264 EDGAR
  10. Aug 13, 20264 EDGAR
  11. Aug 11, 2026144 EDGAR
  12. Aug 11, 2026144 EDGAR
  13. Aug 7, 2026SCHEDULE 13G EDGAR
  14. Aug 6, 202610-Q EDGAR
  15. Aug 6, 20268-K EDGAR
  16. Jul 22, 20268-K EDGAR
  17. Jul 16, 20264 EDGAR
  18. Jul 15, 2026144 EDGAR
  19. Jun 25, 20268-K EDGAR
  20. Jun 15, 20264 EDGAR

The 330 filings since October 2021 can be filtered by form type and year here when JavaScript is on.

Every filing from the last five years, summarized. The full record is on SEC EDGAR.

Insider trades

62 open-market trades by officers, directors and large owners since October 2021: 25 buys and 37 sales. Grants, option exercises and gifts are left out.

DateWhoTradeSharesPriceValueFiling
Sep 15, 2026Thompson Jeffrey MChairman of the Board, CEOSale150,000$7.74$1.2MForm 4
Aug 28, 2026Liuzza Nicholas Reyland JRDirectorSale65,000$8.50$552.5KForm 4
Aug 17, 2026Thompson Jeffrey MChairman of the Board, CEOSale150,000$10.45$1.6MForm 4
Aug 11, 2026Moe Christopher R.DirectorSale20,000$10.51$210.2KForm 4
Aug 11, 2026Liuzza Nicholas Reyland JRDirectorSale55,000$10.63$584.6KForm 4
Jul 15, 2026Thompson Jeffrey MChairman of the Board, CEOSale150,000$8.51$1.3MForm 4
Jun 11, 2026Funk Paul IIDirectorSale165,028$11.50$1.9MForm 4
Sep 29, 2025Moe Christopher R.DirectorSale10,000$10.91$109.1KForm 4
Sep 12, 2025Moe Christopher R.DirectorSale10,000$10.96$109.6KForm 4
Sep 11, 2025Moe Christopher R.DirectorSale30,000$10.11$303.3KForm 4
Sep 8, 2025Moe Christopher R.DirectorSale10,000$8.90$89.0KForm 4
Aug 25, 2025Moe Christopher R.DirectorSale10,000$10.04$100.4KForm 4
Aug 21, 2025Moe Christopher R.DirectorSale16,833$9.58$161.3KForm 4
Aug 20, 2025Moe Christopher R.DirectorSale10,000$8.93$89.3KForm 4
Jun 30, 2025Freedman Joseph DavidDirectorSale150,000$7.37$1.1MForm 4
Jun 10, 2025Liuzza Nicholas Reyland JRDirectorSale100,000$8.58$858.0KForm 4
May 21, 2025Liuzza Nicholas Reyland JRDirectorSale100,309$6.70$672.1KForm 4
Dec 30, 2024Freedman Joseph DavidDirectorSale15,000$14.24$213.6KForm 4
Dec 30, 2024Liuzza Nicholas Reyland JRDirectorSale80,000$13.46$1.1MForm 4
Dec 27, 2024Freedman Joseph DavidDirectorSale10,000$12.25$122.5KForm 4

All 62 trades can be filtered by person here when JavaScript is on.

From Forms 4 filed with the SEC.

Major holders

Investors who own more than 5% of the shares must tell the SEC: a 13D if they may seek to influence the company, a 13G if they hold passively.

Stakes it holds

Red Cat Holdings, Inc. has told the SEC it owns more than 5% of 1 company, latest first (Schedules 13D and 13G).

Held by these funds

The largest holders among investment managers' 13F reports for the quarter ending Jun 30, 2026, the top 25 of 100. Change is in shares since the quarter before.

FundSharesValueShare of the fundChange
State Street Corp12,091,447$128.8M0.0%+4,928,540
BlackRock, Inc.11,230,987$119.6M0.0%−445,997
Hood River Capital Management LLC10,578,223$112.7M0.8%+7,545,218
Vanguard Capital Management LLC5,861,166$62.4M0.0%+1,328,558
Citadel Advisors LLC3,441,774$36.7M0.0%+3,275,575
Geode Capital Management, LLC3,132,448$33.4M0.0%+535,717
Van Eck Associates Corp2,553,337$27.2M0.0%New
Morgan Stanley2,385,654$25.4M0.0%+582,111
MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd.1,591,139$16.9M0.0%+83,816
UBS Group AG1,468,101$15.6M0.0%−36,568
Charles Schwab Investment Management Inc1,051,540$11.2M0.0%+189,196
Vanguard Portfolio Management LLC1,043,630$11.1M0.0%+173,974
Northern Trust Corp977,622$10.4M0.0%+148,658
Vanguard Fiduciary Trust Co925,972$9.9M0.0%+194,514
Cantor Fitzgerald, L. P.896,710$9.5M0.1%+256,168
AWM Investment Company, Inc.874,460$9.3M0.8%+500,000
Bank Of America Corp /de/864,910$9.2M0.0%+661,544
First Trust Advisors LP813,669$8.7M0.0%New
Vident Advisory, LLC809,046$8.6M0.1%+428,286
Ameriprise Financial Inc726,189$7.7M0.0%+687,676
Defiance ETFs, LLC712,621$7.5M0.1%−1,239,001
Needham Investment Management LLC687,500$7.3M0.2%+307,500
IMC-Chicago, LLC680,359$7.2M0.1%New
Sei Investments Co635,943$6.8M0.0%+458,092
Marex Group Ltd561,908$6.0M0.0%+20,869

13F reports cover disclosed long positions in U.S. stocks only.

SEC filer profile

How Red Cat Holdings, Inc. is registered with the Securities and Exchange Commission, from its EDGAR record and the cover page of its latest annual report.

  • Name on EDGARRed Cat Holdings, Inc.1
  • CIK0000748268
  • Employer ID (EIN)88-04900344
  • Filer statusNon-accelerated filer not an emerging growth company; a smaller reporting company; not a shell company4
  • Incorporated inNevada4
  • Fiscal year endsDecember 311
  • Industry code (SIC)7372 Services-Prepackaged Software1
  • SEC reviewing officeOffice of Technology, Division of Corporation Finance1
  • Business address2800 S West Temple, Suite 5, South Salt Lake, UT 841151
  • Phone833-373-32281
  • Shares outstanding152,714,362 as of Aug 4, 202612
  • Public float$620.7M as of Jun 30, 20254
  • AuditorKPMG LLP, Salt Lake City, Utah PCAOB ID 185; no auditor attestation of internal control over financial reporting4
  • On EDGAR sinceAug 20, 19961
  • Filings818 in all: 8-K (167), 4 (156), 10-Q (84), 3 (34), CORRESP (34), NT 10-Q (33), 10-K (22), UPLOAD (21)1
    All 63 form types

    S-8 (20), SC 13G/A (17), 144 (16), SC 13G (16), 8-K/A (15), NT 10-K (14), 424B5 (11), 5 (9), DEF 14A (9), SC 13D (9), PRE 14A (8), 10KSB (7), 10QSB (7), D (7), EFFECT (7), 4/A (6), DEFA14A (6), S-1/A (6), SCHEDULE 13G (6), DEF 14C (5), S-3 (5), S-3/A (5), PRE 14C (4), PRER14A (4), 1-E (3), 10-K/A (3), ARS (3), S-1 (3), SCHEDULE 13G/A (3), 10KSB/A (2), 10QSB/A (2), 2-E (2), N-54A (2), PRER14C (2), S-8 POS (2), SC 13D/A (2), 10-KT (1), 10-Q/A (1), 10-QT (1), 424B3 (1), 424B4 (1), 424B7 (1), 8-A12B (1), 8-A12G (1), CERT (1), D/A (1), DEFM14A (1), DEFR14A (1), DRS (1), N-54C (1), NTN 10Q (1), RW (1), S-3ASR (1), SC 14F1 (1), SD (1)

  • Latest filingsAnnual report (10-K) Mar 19, 2026
    Quarterly report (10-Q) Aug 6, 2026
    Proxy statement (DEF 14A) Apr 30, 2026
    Latest 8-K (8-K) Aug 6, 2026

Securities registered for trading

ClassSymbolExchange
Common stock, par value $0.001RCATNasdaq

From the cover page of the 10-K filed Mar 19, 2026 (Section 12(b) of the Exchange Act).4

Risk factors and legal proceedings

The risks Red Cat Holdings, Inc. names in Item 1A of its 10-K filed Mar 19, 2026: 51 risks under these headings, as written.4

  • Risks Related to our Financial Results and Condition
  • Risks Related to our Operations
  • Risks Related to our Industry
  • Risks Related to Our Common Stock
  • Risks Related to Regulatory Matters
  • Risks Related to Intellectual Property
  • We have incurred net losses since inception.
  • We may need additional capital to fund our expanding operations until we reach profitability, and if we are not able to obtain sufficient capital, we may be forced to limit or curtail our operations.
  • Lack of long-term purchase orders and commitments from customers may lead to a rapid decline in sales.
  • Our products require a continuing investment in research and development, and may experience technical problems or delays, which could lead the business to fail.
  • The nature of our business involves significant risks and uncertainties that may not be covered by insurance or indemnity.
  • Product quality issues and a higher-than-expected number of warranty claims or returns could harm our business and operating results.
The other 45 risks
  • Our operating results may be adversely impacted by worldwide political, economic and public health uncertainties and specific conditions in the markets we address.
  • Acquisitions could divert the attention of key personnel, be difficult to integrate, dilute our existing stockholders and adversely impact our financial results.
  • Our failure to effectively manage growth could harm our business.
  • Our products are subject to lengthy development cycles.
  • We expect to incur substantial research and development costs related to identifying and commercializing new products and services which may never result in revenues.
  • We identified a material weakness in internal control over financial reporting, and may in the future identify additional material weaknesses. Until we remediate the identified material weakness or if we identify additional material weaknesses, we may not be able to accurately and timely report our financial results, in which case our business may be harmed and investors may lose confidence in the accuracy and completeness of our financial reports.
  • Our operations may be adversely affected if we lose our rights under third-party technology licenses.
  • If our customers are not satisfied with our technical support, firmware or software updates, they may choose not to purchase our products which would adversely impact business and operating results.
  • Our use of open-source software could negatively affect our ability to sell our products and could subject us to possible litigation.
  • We must recruit and retain highly trained and experienced employees, especially engineers, in order to succeed in our business.
  • Our facilities and information systems and those of our key suppliers could be damaged as a result of disasters or unpredictable events which could have an adverse effect on our business operations.
  • We rely on third-party suppliers, some of which are sole-source suppliers, to provide components for our products which has in the past and may continue to lead to supply shortages, long lead times for components, and supply changes, any of which could disrupt our supply chain, increase our costs, and adversely impact our operating results
  • We depend on third parties to provide integrated circuit chip sets and other critical components for use in our products.
  • We may be subject to litigation, legal proceedings, and class action claims that could adversely affect our business and financial condition.
  • There are difficult issues to navigate in the development and use of machine learning and artificial intelligence technologies (“AI Technologies”), which may result in reputational harm or liability, and failure to introduce new and innovative products that have AI Technology capabilities could put us at a competitive disadvantage.
  • Our financial success is dependent on contracts awarded through a lengthy, uncertain and competitive process.
  • We operate in an emerging and rapidly growing industry which makes it difficult to evaluate our current business and prospects.
  • We face competition from larger companies that have substantially greater resources which challenges our ability to establish market share, grow our business segments, and reach profitability.
  • Our business is dependent upon our ability to keep pace with the latest technological changes.
  • Cybersecurity risks could adversely affect our business and disrupt our operations.
  • U.S. government contracts are generally not fully funded at inception and may include provisions that are not favorable to us which could adversely impact our cash flows and results of operations.
  • Many of our contracts contain performance obligations that require innovative design capabilities, are technologically complex, require state-of-the-art manufacturing expertise, or are dependent upon factors not wholly within our control. Failure to meet these obligations could adversely affect our revenue.
  • The U.S. Government provides a significant portion of our revenue, and our business could be adversely affected by changes in the fiscal policies of the U.S. Government and other governmental entities.
  • Government contracts differ materially from standard commercial contracts, involve competitive bidding and may be subject to cancellation or delay without penalty.
  • Significant delays or reductions in appropriations for our programs and U.S. Government funding more broadly may negatively impact our business and programs and could have a material adverse effect on our financial position, results of operations, and/or cash flows.
  • We are subject to extensive government regulation and our failure to comply with these regulations could subject us to penalties that may adversely impact our ability to operate our business.
  • We are subject to the DoD CMMC requirement issued by the Pentagon which may limit our ability to bid and win projects. The cost for the DoD CMMC requirement may be significant.
  • If the drone industry does not experience significant growth, if we cannot expand our customer base or if our products do not achieve broad acceptance, or if the products we have developed or will develop do not become programs of record, then we may not be able to achieve our anticipated level of growth.
  • Our management has voting control of the Company.
  • Our failure to maintain effective internal controls over financial reporting could have an adverse impact on the Company.
  • Directors may authorize and issue shares of new classes of stock that could adversely affect current holders of our common stock.
  • Our shares will be subordinate to all of our debts and liabilities which increases the risk that investors could lose their entire investment.
  • The price of our common stock may fluctuate significantly, and this may make it difficult for you to resell shares of our common stock owned by you at times or at prices you find attractive.
  • Future capital raises may dilute our existing stockholders’ ownership and adversely impact the fair value of their investment.
  • We do not intend to pay cash dividends on our shares of common stock so any returns will be limited to the value of our shares.
  • We are currently listed on The Nasdaq Capital Market. If we are unable to maintain listing of our securities on Nasdaq or any stock exchange, our stock price could be adversely affected and the liquidity of our stock and our ability to obtain financing could be impaired and it may be more difficult for our shareholders to sell their securities.
  • The drone industry is subject to various laws and government regulations which could complicate and delay our ability to introduce products, maintain compliance, and avoid violations which could negatively impact our financial condition and results of operations.
  • Our business and products are subject to government regulation, and we may incur additional compliance costs or be forced to suspend or cease operations if we fail to comply.
  • Our international operations, including the use of foreign contract manufacturers, subjects us to international operational, financial, legal, political and public health risks which could harm our operating results.
  • We could be adversely affected by violations of the U.S. Foreign Corrupt Practices Act or similar anti-bribery laws in other jurisdictions in which we operate.
  • We are subject to governmental export and import controls, and economic sanctions laws that could subject us to liability and impair our ability to compete in international markets.
  • Changes in trade policy in the United States and other countries may have adverse impacts on our business, results of operations and financial condition.
  • We may collect, store, process and use the personal information of our customers which subjects us to governmental regulation related to privacy, information security and data protection. Any cybersecurity breaches or our failure to comply with such legal obligations by us, or by our third-party service providers or partners, could harm our business.
  • Our products could infringe on the intellectual property rights of others.
  • Our intellectual property rights and proprietary rights may not adequately protect our products.

Legal proceedings

From time to time, we may become involved in various lawsuits and legal proceedings that arise in the ordinary course of business. We are not currently involved in any legal proceeding or investigation by a governmental agency that we believe will have a material adverse effect on our business, financial condition, or operating results.

The opening of Item 3, Legal Proceedings.4

Sources

The numbers on this page point here. Each one links to the record it came from.

  1. 1
  2. 2
  3. 3
  4. 4
  5. 5
  6. 6
  7. 7
  8. 8
  9. 9
  10. 10
  11. 11
  12. 12
  13. 13
  14. 14
  15. 15
  16. 16
  17. 17
  18. 18
  19. 19
  20. 20
  21. 21
  22. 22
  23. 23
  24. 24
  25. 25
  26. 26
  27. 27
  28. 28
  29. 29
  30. 30
  31. 31
  32. 32
  33. 33
  34. 34
  35. 35
  36. 36
  37. 37
  38. 38
  39. 39
  40. 40
  41. 41
  42. 42
  43. 43
  44. 44
  45. 45
  46. 46
  47. 47
  48. 48
  49. 49
    SEC EDGAROther events
  50. 50
  51. 51
    SEC EDGAROther events
  52. 52
  53. 53
    SEC EDGAROther events
  54. 54
  55. 55
  56. 56
  57. 57
  58. 58
  59. 59
  60. 60
  61. 61
  62. 62
  63. 63
  64. 64
  65. 65
  66. 66
  67. 67
  68. 68
  69. 69
  70. 70
  71. 71