Red Cat Reports Record Revenues For Fiscal Third Quarter

Red Cat Holdings, Inc. (OTCQB: RCAT)  (“Red Cat” or the “Company”), a leading brand in the drone industry, reviewed its recently reported financial results for its fiscal third quarter which included record quarterly revenues.

“We are pleased to report record quarterly revenues exceeding $2 million for our fiscal third quarter driven by the first full quarterly contribution from our Fat Shark subsidiary which was acquired in November 2020,” stated Jeffrey Thompson, Chief Executive Officer. “Our Rotor Riot subsidiary is on track to attain record annual revenues for our fiscal year which ends on April 30. Finally, we look forward to the potential revenue contribution associated with the acquisition of Skypersonic which we expect to close in April.”

“While our net loss for the nine months ended January 31 totaled approximately $10 million, more than $9 million of that loss can be attributed to non-cash expenses, including more than $8 million of derivative related charges,” stated Joseph Hernon, Chief Financial Officer. “With an adjusted year to date net loss, excluding non-cash charges, of approximately $1 million, Red Cat is very well positioned on an operating basis.”

About Red Cat
Red Cat provides products, services and solutions to the drone industry through its three wholly-owned subsidiaries. Fat Shark Holdings is the leading provider of First Person View (FPV) video goggles to the drone industry. Rotor Riot, LLC is a leader in the sale of FPV drones and equipment, primarily to the consumer marketplace through its digital storefront located at www.rotorriot.com. Rotor Riot enjoys high visibility in social media through its Facebook page and its sponsorship of a professional drone racing team which has won numerous championships. Red Cat Propware is developing a Software-as-a-Solution (“SaaS”) platform to provide drone flight data analytics and storage, as well as diagnostic products and services.