Red Cat Holdings, Inc.

Ladies and gentlemen, thank you for standing by. Good morning and welcome to the REDCAT Holdings Fiscal 2023 First Quarter 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 1 on your telephone keypad. To withdraw your question, please press star then 2. Participants of this call are advised that the audio of this conference call is being broadcast live over the internet, and it's 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 12, 2022. I would now like to turn the call over to Joey De La Jose, Vice President of Core IR, the company's investor relations firm. Please go ahead, sir.

Thank you, Andrew. Good morning, everyone, and thank you for joining us for the Red Cat Holdings Fiscal 2023 First Quarter Financial Results and Corporate Update Conference Call. Joining us today from Red Cat Holdings are Jeff Thompson, Chief Executive Officer, and Joseph Herman, 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 And then 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, September 12th, 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 thanks joey and thank you welcome to our first quarter fiscal year 2023 earnings conference call this is an exciting conference call for redcat this is the first quarter with organic revenue from keel drones production line and fat shark digital goggles i will start with summaries of each subsidiary including progress on the army tranche 2 program and high level status on requests for proposals across the globe so let me start with rota riot rota riot continues to improve revenue and margins and is just starting to see in-person community events like quads and coffee return in-person events are similar to music concerts that promote a record release rota riot had a record quarter and with a new digital advertising campaign, new digital goggle launches should provide tailwinds for the consumer segment for the next 12 to 18 months. Let's now talk about Fatshark. In Q1, Fatshark launched a new headset and saw the largest pre-order first day sales of any headset to date. And Fatshark has been around since 2007. The Dominator headset is getting great reviews, and we hope to see follow-through for the next few quarters. Skypersonic. The Skycopter drone can be piloted virtually anywhere from virtually anywhere. As the Skypersonic team recently demonstrated on Mount Etna in July, using Skypersonic's long-range real-time remote piloting system, the drone on an active volcano in Italy was controlled by personnel in Houston, Texas in real time. Whereas most drones cannot be piloted without connecting to the GPS network, Skycopter uses technology that is able to control and track the drone in locations such as Mars where GPS is not available. We believe the Skycopter will be a leader in infrastructure inspections next year. But we also believe the technology can be very useful on the battlefield and for first responders. Being able to fly indoors, in caves, in tunnels, in GPS-denied locations is game-changing, not only for infrastructure inspections, but also for the dismounted warfighter. And now I'll talk about sealed drones. Let's start with the production line. We are currently switching from PVT, production validation tests, to ramp and mass production. Mass production enables Teal to continue to improve ongoing yields, qualify additional tools or vendors, make design changes based on customer feedback, any early field failures, or cost down efforts. We have significant design improvements as we go into mass production, specifically the camera payload. We believe that having a made in USA factory up and running at mass production is strategic advantage for the RFPs we are working on and the tranche two production contract. That brings us to SRR tranche two short range reconnaissance program for the, for the army and the DIU. Teal drones continues to meet the scheduled milestones for the tranche two prototype design. and expect to have a flying prototype by the end of the calendar year. The Tranche 2 production contract is still expected early in the first half of next year. Now let me talk about some of the potential sales pipeline for the Golden Eagle. We are fielding multiple requests for proposals, RFPs, with NATO allies for the Teal Golden Eagle and the Skypersonic Skycopter. We continue to work with these customers and prospective customers to translate their interest into firm purchase orders and contracts. We are seeing many opportunities and demand growing. We believe this will set REDCAT up for a strong fiscal 2023. In summary, we have new products, new software capabilities, a new production facility, and organic growth from Rotor Riot, Batshark, and Teal Drones, and expect the Skycopter, our least mature product, to be a very important revenue generator next year. We have much to do, but we are close to firing on all cylinders. And with that, I'll hand the call over to Joseph, our CFO.