Red Cat Holdings, Inc.

Ladies and gentlemen, thank you for standing by. Good afternoon and welcome to the Red Cat Holdings Fiscal First Quarter 2022 Financial Results and Corporate Update Conference Call. At this time, all participants are in a listen-only mode. Should you need assistance, please signal a conference specialist by pressing the star key followed by zero. After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press star then one on your telephone keypad. To withdraw your question, please press star, then two. Participants of this call are advised that the audio of this conference call is being broadcast live over the Internet and is also being recorded for playback purposes. A webcast replay of the call will be available approximately one hour after the end of the call through December 20, 2021. I would now like to turn the call over to Scott Gordon, President of CoreIR, the company's investor relations firm. Please go ahead, sir.

Thank you, Eileen. Good afternoon, everyone, and thank you for joining us for the REDCAT Holdings Fiscal First Quarter 2022 Financial Results and Corporate Update Conference Call. Joining us today from REDCAT Holdings are Jeff Thompson, Chief Executive Officer of REDCAT Holdings, and Jeff Hernan, Chief Financial Officer. During this call, management will be making forward-looking statements, including statements that address REDCAT's expectations for future performance or operational results Forward-looking statements involve risks and other factors that may cause actual results to differ materially from those statements. For more information about these risks, please refer to the risk factors described in REDCAT's most recently filed periodic reports on Form 10-K and Form 10-Q, the Form 8-K filed with the SEC today, and REDCAT's press release that accompanies this call, particularly the cautionary statement in it. The content of this call contains time-sensitive information that is accurate only as of today, September 20th, 2021. Except as required by law, REDCAT disclaims any obligation to publicly update or revise any information to reflect events or circumstances that occur after this call. It is now my pleasure to turn the call over to Jeff Thompson, REDCAT CEO. Jeff, please go ahead. Thank you, Scott.

Good afternoon, and thank you all for joining our fiscal first quarter 2022 call and webcast. Also joining me today is Joseph Kernan, our CFO. The series of recent acquisitions we have completed, both in fiscal 2021 and 2022 thus far, are pivotal to the direction and outlook for REDCap. The acquisitions of Keel Drones at the beginning of September 2021 and Skypersonic in early May 2021 positioned the company to compete effectively in the military, and infrastructure inspection marketplaces, respectively. And both will add considerable contribution to our enterprise segment. With the Teal drones acquisition, we gain immediate access to the military reconnaissance and public safety applications markets for small UAVs. Teal's Golden Eagle drone is one of just five drones approved by the Department of Defense, We are both invigorated and optimistic about the military contracts that we can now bid on. Additionally, the Golden Eagle is currently the only drone approved to fly on United States Air Force property. This is an important exclusivity, and we intend to continue to leverage this competitive advantage moving forward. Teal drones are made in the USA, and the ban on drones and even drone components made in China coming into effect. This is another competitive advantage for REDCAT. Additionally, we continue to move forward with the DoD and the short-range reconnaissance, SRR, program, and we are participating in the second tranche of that program. In fact, Dr. Alan Evans, our COO, and George Matus, CEO and founder of Teal Drones, are attending the program for Advanced Autonomous Short-Range VTOL CSO as we speak. After attending crunch one, we received notice approximately five weeks later. This could be a $2 million win for Teal and Red Cat. While we are working on securing government contracts, we are also aggressively scaling Golden Eagle production to meet the current levels of government agency demands. We are fortunate to be fully funded, and we plan on using some of our cash reserve as an internal investment to grow production Turning to Scepersonic, we have an incredible opportunity to use drones to evaluate the structural integrity of enterprise and or government structures or other assets, particularly in locations where there's high risk for human operators involved. Scepersonic allows for the execution of remote drone flights with operators anywhere in the world using patented technology that allows for tight space inspections even in areas where GPS is not allowed or available. We've already received small purchase orders for pilot programs for our artificial intelligence platform that Skypersonic is building as part of DroneBox. We anticipate success in these programs as well as more substantial revenues for these services in the next 12 months. Also, we currently have outstanding bids on jobs in Europe and with General Motors and other domestic government agencies. We're currently co-bidding on a project with partners in Italy that is approximately $8 million, and if we were selected, we would get a material portion of the award. Let's move on to the consumer segment. I am pleased with its performance, especially given the adversity seen in the quarter. The global supply chain crisis resulted in being out of stock of our most popular items at Fatshark and Rotoride divisions for over a month. Luckily, we anticipated the issue and minimized the impact. We are very excited for the fiscal second quarter because we have gotten ahead on inventory and expect robust Christmas for Rotor Riot along with growing digital goggle sales from Fatshark. Rotor Riot had a backlog of almost 100 ready-to-fly drones. We have quickly started building and are expected to be caught up now that we have the supply chain issues resolved. Batshark is also poised in Q2 to rebound with new products and proper inventory. We continue to perform strongly in the market, carving out a leadership position in the industry through acquisitions and performance. As we continue to execute on the expansion of the company, with it comes an expansion of our revenue and overall market performance. As Joseph, our CFO, will talk a little later, we recognize a 155% year-over-year increase in our revenues overall. in our fiscal first quarter ending in July 31. And we are extremely in a strong position to fill large contracts and execute on our roadmap, thanks to the $66 million in cash and equivalents on our balance sheet as of July 31, 2021. And with that, I'm going to hand the call over to Joseph.