Red Cat Holdings, Inc.

Ladies and gentlemen, thank you for standing by. Good afternoon and welcome to the REDCAT Holdings Fiscal 2022 Year-End 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 and then one on your telephone keypads. To draw your questions, you may press star and 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 October 27th, 2022. I would now like to turn the call over to Scott Gordon, President of Core IR, the company's investor relations firm. Sir, please go ahead.

Thank you, Jamie. Good afternoon, everyone, and thank you for joining us for the Red Cat Holdings Fiscal 2022 Year-End Financial Results and Corporate Update Conference Call. Joining us today from Red Cat Holdings are Jeff Thompson, Chief Executive Officer of Red Cat Holdings, and Joseph Hernon, 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, particularly. 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, and REDCAT's press release that accompanies this call, particularly the cautionary statements in it. The content of this call contains time-sensitive information that is accurate only as of today, July 27, 2022. 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, Chief Executive Officer. Jeff. Please go ahead.

Great. Thanks. And thanks, everyone, for joining the 2022 year-end results for REDCAT. It's been an incredible year. We've spent a lot of time and energy putting the company in the right spot at the right time in the drone industry. The press release has some great highlights of each subsidiary, but I want to add a few brief comments for each team. Rotor Riot is which was our first acquisition, and over the last year under Drew Camden, has started to grow organically and is having its best quarter in the history of Rotor Riot. I want to say thanks, Drew, and thanks, Stacy. Fatshark, the new product refresh of the Fatshark Dominator, launched in Q1 2023, and is getting great reviews and is also off to a great start. Thank you, Mr. French. It was a huge undertaking. Skypersonic. The team at Skypersonic has been very busy in Europe. They have been perfecting the remote piloting from thousands of miles away, and the NASA contract has also been going very well with drones and actual rovers. We expect Skypersonic to improve each quarter and be very important as infrastructure dollars start to come to the market. Teal Drones. Lots of progress with Teal Drones over the last 12 months. They were 12 people with no factory, now 50 employees with a full working production line. Supply chain is still tricky, but we made some decisions a year ago, basically this month, that are now bearing fruit. Thanks, Dr. Evans. This has enabled teal drones to have a predictable delivery system for the DOD in equivalent organizations in NATO countries. The teal drone production line is in full swing and producing high-quality drones. We expect to go into mass production in the fall. And when mass production starts, it will also have a new camera payload that customers have been begging for. This, again, will allow predictable drone delivery with large numbers of drones each month. This has been REDCAT's goal for the last 12 months, to get to mass production. Our sales team at Thiel has been all over the U.S. and Europe, demoing the Golden Eagle four-ship almost every week. Most recently, as in last week, was at Leonardo, the defense contractor in Italy. So let me talk about the Foreship product in case you are not familiar with it. The Foreship is a software platform that controls four teal Golden Eagle drones that can be flown by one pilot. This enables full 360 degrees of situational awareness. We can also stay in the air theoretically forever. by having drones replace themselves in the formation when the batteries get low. The Foreship solves many drone issues, but let me just focus on two big issues. Number one, battery life. This is the biggest issue for drones. Almost everybody knows this. Being able to keep our drones in the air indefinitely until the mission is complete is an industry first. DJI, the banned Chinese drone manufacturer that has been around for 15 plus years, does not have the solution. One-to-one pilot ratio is number two. Four drones can do the work faster and better than a single drone. And being able to control them with one pilot instead of four is also a game changer. The biggest cost center for any aviation program is always the pilots. I can go on for another hour talking about things we have done with Teal drones, but I promise to be brief and get to questions. Some housekeeping before we move on to Joseph's comments. We'll be reporting Q1 in early September. I'm sure many of today's questions will be about Q1. The quarter's not done, and we'll talk about the first quarter, the very first full quarter with Teal Golden Eagles and shipments of the Dominator Goggle in September. And I also want to thank the finance team for getting our year end, which is the toughest finance that we have to file, done a couple days early. Thank you, Leah and Steve. And with that, I'm going to hand it over to Joseph Hernon.