Red Cat Holdings Inc (RCAT) 2024 Q2 法說會逐字稿

Ladies and gentlemen, thank you for standing by. Good afternoon and welcome to the Red Cat Holdings fiscal second-quarter 2024 financial results and corporate update conference call. (Operator Instructions)

女士們、先生們，感謝你們的支持。下午好，歡迎參加 Red Cat Holdings 2024 財年第二季財務業績及公司更新電話會議。（操作員指示）

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. The webcast replay of the call will be available approximately one hour after the end of the call through December 15, 2024.

請本次電話會議的參與者註意，本次電話會議的音訊正在透過網路現場直播，同時也會被錄製以供回放。這次電話會議的網路直播重播將在電話會議結束後約一小時提供，直至 2024 年 12 月 15 日。

I would now like to turn the call over to Joey Delahoussaye, Vice President of Core IR, the company's Investor Relations firm. Please go ahead, sir.

現在，我想將電話轉交給公司投資者關係公司 Core IR 的副總裁 Joey Delahoussaye。先生，請繼續。

Thank you, Sarah. Good afternoon, everyone, and thank you for joining us for the Red Cat Holdings fiscal second-quarter 2024 financial results and business update conference call. Joining us today from Red Cat Holdings are Jeff Thompson, Chief Executive Officer; and Joseph Hernon, Chief Financial Officer.

謝謝你，莎拉。大家下午好，謝謝大家參加 Red Cat Holdings 2024 財年第二季財務業績及業務更新電話會議。今天，Red Cat Holdings 的執行長 Jeff Thompson 和財務長 Joseph Hernon 也與我們一同出席了會議。

During this call, management will be making forward-looking statements, including statements that address Red Cat'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 Red Cat's most recently filed periodic reports on Form 10-K and Form 10-Q and in Red Cat's press release that accompanies this call, particularly the cautionary statement today.

在本次電話會議中，管理層將做出前瞻性陳述，包括涉及 Red Cat 對未來業績或營運結果的預期的陳述。前瞻性陳述涉及風險和其他因素，可能導致實際結果與這些陳述有重大差異。有關這些風險的更多信息，請參閱 Red Cat 最近提交的 10-K 表和 10-Q 表定期報告中描述的風險因素以及隨附本次電話會議的 Red Cat 新聞稿，特別是今天的警示聲明。

Content of this call contains time-sensitive information that is accurate only as of today, December 15, 2023. Except as required by law, Red Cat disclaims any obligation to publicly update or revise any information to reflect events or circumstances that occur after this call.

本次通話內容包含時間敏感訊息，僅截至今天（2023 年 12 月 15 日）準確。除法律要求外，Red Cat 不承擔公開更新或修改任何資訊以反映本次電話會議後發生的事件或情況的義務。

It is now my pleasure to turn the call over to Jeff Thompson, Chief Executive Officer. Jeff?

現在我很高興將電話轉給執行長傑夫湯普森。傑夫？

Thanks, Joey. Welcome, everyone to our fiscal year 2024 second-quarter earnings conference call. I'll start by summarizing our recent performance and achievements and then we'll provide information related to our outlook for fiscal year 2024. After which, Joseph will review our financial results, and then we will take your questions.

謝謝，喬伊。歡迎大家參加我們 2024 財年第二季財報電話會議。我將首先總結我們最近的業績和成就，然後提供與 2024 財年展望相關的資訊。之後，約瑟夫將審查我們的財務結果，然後我們將回答您的問題。

I am pleased to report the second-quarter results exceeded expectations in our guidance of $3 million by 30%. Revenue was $3.9 million, a 123% sequential growth from Q1. Our margins tripled to 30%. Joseph will supply more detail on this great achievement.

我很高興地報告，第二季的業績超出了我們預期的 300 萬美元，高出 30%。營收為 390 萬美元，較第一季環比成長 123%。我們的利潤率增加了兩倍，達到 30%。約瑟夫將提供有關這項偉大成就的更多細節。

On our last quarterly call, I talked about some of the regulatory tailwinds, hopefully leading to the passage of the American Security Drone Act. I'm happy to report that this passed the House and the Senate this week and is on the President's desk to become law.

在我們上次的季度電話會議上，我談到了一些監管方面的有利因素，希望能促成《美國安全無人機法案》的通過。我很高興地報告，該法案本週已在眾議院和參議院獲得通過，並提交給總統批准成為法律。

What does this mean? Well, it means the largest drone manufacturer in the world, whose largest market is the United States, can no longer by law be bought by anyone that receives federal dollars. It's not just the Department of Defense. It's local groups. It's fire departments. It's anyone who receives any federal dollars. This will be immediate and significantly increase the total addressable market in the US for Teal Drones.

這是什麼意思？這意味著世界上最大的無人機製造商（其最大的市場是美國）不再依法被任何接受聯邦資金的人收購。不僅僅是國防部。這是當地團體。是消防部門。任何獲得聯邦資金的人都是如此。這將立即顯著增加美國 Teal Drones 的總目標市場。

Now I'll move on to revenue opportunities and investment tailwinds. I'm going to discuss the current organic revenue growth and the driver of our backlog. So let's start with organic revenue in our backlog. Today, we reported Q2 $3.9 million in revenue. Our guidance for Q3 is $5 million. We do not see revenue from Q3 guidance for 123% sequential growth in Q2. This guidance for Q3 is based on signed purchase orders.

現在我將討論收入機會和投資順風。我將討論目前的有機收入成長和積壓訂單的驅動因素。因此，讓我們從積壓的有機收入開始。今天，我們報告第二季的收入為 390 萬美元。我們對第三季的預期是 500 萬美元。我們認為第三季的營收不會比第二季實現 123% 的環比成長。第三季的指引是基於簽署的採購訂單。

We also have $7.4 million in growing of funded backlog. As I said on our last call, Q3 revenues of $5 million puts us at a $20 million run rate after selling the Teal 2 for just under five months. This is an amazing growth story, and we'd like to thank the entire Teal team for making it happen.

我們還有 740 萬美元的資金積壓成長。正如我在上次電話會議上所說的那樣，在銷售 Teal 2 不到五個月後，第三季的收入為 500 萬美元，使我們的營業額達到了 2000 萬美元。這是一個令人驚嘆的成長故事，我們要感謝整個 Teal 團隊讓這一切成為現實。

Now let's move on to long-term revenue opportunities, the Short Range Reconnaissance Program, SRR program of record. Just to review or for the few investors that are on -- new investors that are on the call, the SRR program of record started over three years ago and was originally set to have three tranches: Tranche 1, 2, and 3. Tranche 1 would have a prototype contract and a production contract. The same is supposed to happen for Tranche 2 and then Tranche 3.

現在讓我們來談談長期收入機會，即短程偵察計劃，即記錄中的 SRR 計劃。僅回顧一下，或者對於參加電話會議的少數投資者——新投資者來說，記錄的 SRR 計劃始於三年前，最初設定為三部分：第 1、2 和 3 部分。第 1 部分將有一份原型合約和一份生產合約。第二批和第三批也應該會發生同樣的事情。

We were awarded a Tranche 1 prototype contract and we were not awarded a production contract. That production contract a couple of years ago was for $100 million for 1,083 drones. Tranche 2 was supposed to be awarded months ago, but the Army notified us last December and said they were absorbing Tranche 3 into Tranche 2 to accelerate the final product and to get it into the warfighters' hands.

我們獲得了第 1 批原型合同，但沒有獲得生產合約。幾年前的生產合約價值 1 億美元，用於生產 1,083 架無人機。第二批合約本應在幾個月前授予，但陸軍去年 12 月通知我們，稱他們將把第三批合約併入第二批合同，以加速最終產品的生產並將其交到作戰人員手中。

This was due mostly because of the Ukraine war and everyone is understanding how important small drones are. So Tranche 3 was absorbed in Tranche 2.

這主要是因為烏克蘭戰爭，每個人都明白小型無人機的重要性。因此，第 3 批債券被第 2 批債券吸收。

During the last quarterly call, quarterly call for Q1, I mentioned that we expected the finalists would be announced this December or January 2024. I'm happy to report that we were down-selected yesterday as a finalist for the large, long-term SRR program of record.

在上一次季度電話會議，即第一季的季度電話會議中，我提到我們預計最終入圍名單將於今年 12 月或 2024 年 1 月公佈。我很高興地報告，我們昨天被選為大型長期 SRR 計劃的最終候選人。

Before I hand it over to Joseph, quick summary. We gave guidance for this quarter of $$3 million. We delivered $3.9 million and we are reiterating revenue guidance of $5 million for Q3. We told you about the America Security Drone Act and expected to pass with the NDA. It passed yesterday.

在我將其交給約瑟夫之前，先簡單總結一下。我們對本季的預期為 300 萬美元。我們實現了 390 萬美元的營收，並重申第三季 500 萬美元的營收預期。我們向您介紹了《美國安全無人機法案》，並希望該法案能與《保密協議》一起通過。昨天就過去了。

Last quarter we hope we'd be a finalist for the Army's SRR program of record. Yesterday, we were awarded a $3 million-plus contract and down-selected as a finalist. And I will now hand the call over to Joseph.

上個季度，我們希望能夠成為陸軍 SRR 計劃的最終入圍者。昨天，我們獲得了一份價值 300 多萬美元的合同，並被選為最終候選人。現在我將把電話交給約瑟夫。

Thank you, Jeff, and to everyone for joining the call today. As Jeff noted, we are reporting record revenues, record gross margin, and record backlog for the second quarter of fiscal 2024, which ended on October 31. Each of these financial milestones are clear indicators that the Teal 2 is resonating in the marketplace and that Red Cat has not only reached an inflection point, but we have turned a metaphorical corner and are on a clear runway to continued growth in revenues, increasing product gross margin, and a backlog that continues to grow despite record shipments.

謝謝傑夫，也感謝今天參加電話會議的所有人。正如傑夫所指出的，我們報告了截至 10 月 31 日的 2024 財年第二季創紀錄的收入、創紀錄的毛利率和創紀錄的積壓訂單。每個財務里程碑都清楚地表明，Teal 2 在市場上引起了共鳴，Red Cat 不僅已經到達了一個轉折點，而且我們已經度過了一個隱喻性的轉折點，並且走在了收入持續增長、產品毛利率不斷提高以及積壓訂單持續增長的明確道路上，儘管出貨量創下了紀錄。

As Jeff noted, and I want to emphasize, revenues of almost $4 million for the second quarter represents more than 400% growth year over year and 125% on a sequential basis. We have guided to continued growth in the current third quarter and are confident in our revenue outlook longer term. Our sequential improvement in gross margin on a percentage basis is very impressive.

正如傑夫所說，我想強調的是，第二季的營收接近 400 萬美元，年成長超過 400%，季增 125%。我們預計第三季將繼續成長，並對長期收入前景充滿信心。我們的毛利率按百分比連續提高，令人印象深刻。

Two quarters ago, we had negative gross margin of 87% as we worked on developing a fully integrated manufacturing process with the Teal 2 and our then newly completed state-of-the-art manufacturing facility in Salt Lake City. Naturally, there were multiple test runs and processes which required multiple efforts resulting in negative gross margin.

兩個季度前，當我們致力於開發與 Teal 2 完全整合的製造流程以及當時在鹽湖城新建成的最先進的製造工廠時，我們的毛利率為負 87%。當然，需要經過多次試運行和多次流程，這需要付出多次努力，導致毛利率為負。

In our last quarter, our fiscal 2024 first quarter, we generated gross margins of 10%, which was a dramatic improvement. This quarter, we reported 30%, which is a tripling of our gross margin percentage on a sequential basis. In the eyes of a financial professional like myself, that is an impressive performance by our operating team.

在我們的上一季度，即 2024 財年第一季度，我們的毛利率達到了 10%，這是一個顯著的提高。本季度，我們的毛利率達到 30%，比上一季成長了兩倍。在像我這樣的金融專業人士眼中，這是我們營運團隊令人印象深刻的表現。

Looking forward, we believe that we can reach gross margins of 50% as production capacity scales and we spread out fixed manufacturing overhead over a greater number of units. There may be some variability going forward from quarter to quarter related to our contract work with the Army on our prototype.

展望未來，我們相信，隨著生產能力的擴大以及我們將固定製造費用分攤到更多單位，我們可以達到 50% 的毛利率。我們與陸軍就原型簽訂的合約工作可能在每個季度都會有所不同。

Gross margin on that contract can vary to quarter to quarter based on the mix of work we perform relative to mix relative to what's required for materials versus labor. This work is directly connected to our efforts to secure the SRR Phase 2 program contracts.

根據我們所執行的工作組合以及材料和勞動力所需的組合，該合約的毛利率可能每個季度都有所不同。這項工作與我們爭取 SRR 第二階段計畫合約的努力直接相關。

As Jeff noted, we were very excited to be awarded an additional $3 million of funding to support the prototype milestones, that we have been announced as one of two finalists out of a starting field 37 competitors speaks for itself. We are playing to win.

正如傑夫所說，我們非常高興獲得額外的 300 萬美元資金來支持原型里程碑，我們從 37 個競爭對手中脫穎而出，成為兩名決賽選手之一，這說明了一切。我們比賽是為了贏。

Our backlog continues to grow even as we report record revenues. Backlog totaled $4.5 million at October 31, 2023, the end of the second quarter and has further increased into the fiscal third quarter to $7 million currently. This clearly demonstrates continuing and growing demand for the Teal 2.

儘管我們的收入創歷史新高，但我們的積壓訂單仍在持續成長。截至 2023 年 10 月 31 日（第二季末），積壓訂單總額為 450 萬美元，進入第三財季後進一步增加至目前的 700 萬美元。這清楚地表明了對 Teal 2 的需求持續成長。

One of our key objectives during calendar 2024 will be to continue to grow revenues, increase our gross margin, and control our operating costs. Our operating loss for the second quarter net of stock-based comp, which everyone knows is a non-cash charge, totaled $3.4 million in the fiscal second quarter compared to $4.1 million for the fiscal first quarter, representing a 17% improvement on a quarter-over-quarter basis. That is impressive in my opinion. We are intent on driving our quarterly operating loss lower during calendar 2024, and our recent capital raise now gives us the operating runway to execute on that objective.

2024 年期間，我們的一個主要目標是繼續增加收入、提高毛利率並控制營運成本。我們第二季的營業虧損扣除股票補償（眾所周知，這是一項非現金費用）後，第二財季總計 340 萬美元，而第一財季為 410 萬美元，環比改善 17%。我認為這令人印象深刻。我們致力於在 2024 年降低季度營運虧損，而我們最近的融資為我們實現這一目標提供了營運基礎。

In summary, there are a number of key accomplishments that the company has been diligently working on over the past three years that are coming to fruition. Our state-of-the-art manufacturing facility in Salt Lake City, Utah is complete and already demonstrating its ability to scale production. Our made in the USA platform gives us a huge competitive advantage in an industry that has historically relied on sourcing from China.

總而言之，公司在過去三年中一直努力實現的多項重要成就正在取得成果。我們位於猶他州鹽湖城的最先進的製造工廠已經完工，並已展示出其擴大生產的能力。我們的美國製造平台為我們在歷史上依賴中國採購的產業提供了巨大的競爭優勢。

We have completed a rigorous application and review process to secure key government approvals and certifications, including Blue sUAS, Authority to Operate, and approval to sell through the GSA. The long and arduous investment and building relationships and creating awareness of the capabilities of the Teal 2 by our sales team is yielding benefits as evidenced by our growing backlog.

我們已經完成了嚴格的申請和審查流程，以獲得關鍵的政府批准和認證，包括 Blue sUAS、營運授權以及透過 GSA 銷售的批准。我們的銷售團隊長期艱苦的投資、建立關係以及提高對 Teal 2 功能的認識正在產生效益，這一點從我們不斷增長的積壓訂單中可以看出。

Finally, as Chief Financial Officer, naturally, I'm not going to predict when Red Cat will reach cash flow breakeven or report profitability. However, we can provide the following for prospective. Revenues for the Teal 2 are increasing, gross margins are growing, and our operating loss is relatively modest in absolute dollars. It will not require an unrealistically steep rate of growth for us to reach breakeven. I believe that steady growth and a focus on controlling costs can get us there.

最後，身為財務長，我自然不會預測 Red Cat 何時能夠實現現金流收支平衡或報告獲利。但是，我們可以為未來提供以下資訊。Teal 2 的收入正在增加，毛利率正在成長，而且我們的營業虧損以絕對美元計算相對較小。我們不需要不切實際的急遽成長就能達到收支平衡。我相信，穩定成長和注重控製成本可以讓我們實現目標。

Meanwhile, we have two huge opportunities that could dramatically change the company's financial position and its market capitalization. The funded Replicator program recently announced by the Department of Defense is focused on purchasing thousands of small-form drones. Red Cat is an expert on small-form drones.

同時，我們有兩個巨大的機會，可能會大幅改變公司的財務狀況和市值。美國國防部最近宣布的資助的Replicator計劃主要致力於購買數千架小型無人機。Red Cat 是小型無人機專家。

As Jeff noted, we are a finalist for the Tranche 2 program award. Tranche 1 was a $100 million program. Tranche 2 is expected to be much larger. Winning either of these programs would have a huge impact on the company, including, I believe, its market capitalization and stock price.

正如傑夫所說，我們是第二批項目獎的決賽入圍者。第 1 部分是一個價值 1 億美元的項目。預計第二批的規模將會更大。我相信，贏得其中任何一個項目都會對公司產生巨大影響，包括其市值和股價。

I will now turn the call over to the operator for questions.

我現在將把電話轉給接線員以回答問題。

(Operator Instructions)

（操作員指示）

Ashok Kumar, ThinkEquity.

ThinkEquity 的 Ashok Kumar。

Thank you. Great results and good work on the margins. Jeff, you've talked a lot about the Replicator Initiative from the DoD on your last call and you didn't mention it today. So could you just update on that?

謝謝。取得了出色的成果，並且在邊緣方面做得很好。傑夫，你在上次通話中多次談到國防部的複製器計劃，但今天卻沒有提及。那你能更新一下嗎？

The second question is: do you expect further margin expansion in fiscal third quarter? And you're retaining your top-line guidance for the January quarter of $5 million. So I just want to clarify that.

第二個問題是：您是否預期第三財季利潤率會進一步擴大？而您仍維持 1 月季度 500 萬美元的營收預期。所以我只是想澄清這一點。

And then the last question is: now that you're one of the two finalists for the SRR, what should we hear next? And is there a chance that they select both companies? Thank you very much.

最後一個問題是：既然您是 SRR 的兩名決賽選手之一，我們接下來應該聽到什麼？他們有可能選擇這兩家公司嗎？非常感謝。

Great. Thanks. Ashok. Yes. So the Replicator Initiative has made a lot of news. It's a very exciting initiative. We want to be respectful of the DoD and the DIU's mission, and we've been getting closely more involved. And their mission is to you're not talking about what specific things are going to be happening in what they're acquiring out there. So we're going to stick with their mission and not talk about what's going on out there and respect that as a we don't want to give away what type of assets they're buying to defend against China. The Replicator Initiative is more based on China than anywhere else.

偉大的。謝謝。阿肖克。是的。因此，複製器計劃引起了很多新聞關注。這是一個非常令人興奮的舉措。我們希望尊重國防部和 DIU 的使命，我們一直在更密切地參與其中。他們的使命是，你不會談論他們在收購時會發生什麼具體的事情。因此，我們將堅持他們的使命，不談論外面發生的事情，並尊重這一點，因為我們不想透露他們​​購買了什麼類型的資產來防禦中國。複製計劃主要立足於中國，而非其他任何地方。

The margin expansion for this Q, for Q3, we're pretty excited about getting to 30% this quick. Our biggest goal is to get to 50% and we've made quite a climb in just one quarter. We expect as we add more units to each quarter that the margins will get better.

對於本季、第三季的利潤率擴張，我們非常高興能夠這麼快達到 30%。我們最大的目標是達到 50%，而且我們僅用一個季度就取得了相當大的進步。我們預計，隨著我們每季增加更多的單位，利潤率將會變得更好。

We sometimes have -- can't really call them one-time items, but they are actually -- they are one-time items -- actually once-in-a-lifetime items. When you're bidding on a large project like SRR, you have a lot of stuff that will be nonrecurring that you have to do that can actually end up to the margins. And most of the work for SRR Tranche 2 is done at the end of March once we deliver the last group of systems to the Army which is at the end of March. So a lot of costs will go away after March and we expect margins to continue to grow throughout the rest of the year.

我們有時會有——不能真正稱它們為一次性物品，但它們實際上——它們是一次性物品——實際上是一生一次的物品。當您競標像 SRR 這樣的大型專案時，您需要做很多非經常性的事情，這些事情最終都會影響利潤。一旦我們在三月底向陸軍交付最後一組系統，SRR Tranche 2 的大部分工作就會在三月底完成。因此，三月之後許多成本將會消失，我們預期利潤率將在今年剩餘時間內持續成長。

And then the SRR program, currently it is a winner-take-all. But if you do see the push, we are seeing the push out from things like Replicator, they need as many drones from as many people as they can get. There's only two manufacturers that manufacture drones like the drones that are being in the Ukraine. So we are -- as Americans, we hope we can make enough drones. We would love to win it as a sole source contract, but they do choose two because they need so many drones.

然後是 SRR 計劃，目前是贏家通吃。但如果你確實看到了推動力，我們看到了來自 Replicator 之類的推動力，他們需要盡可能多的人提供盡可能多的無人機。只有兩家製造商生產像烏克蘭這樣的無人機。所以，身為美國人，我們希望能夠製造足夠的無人機。我們很想贏得獨家合同，但他們只選擇了兩架，因為他們需要很多無人機。

I just got back from Ukraine. I got to be with the pilots, do a ride-along. They're basically using a lot of drones just like ours, and we hope to get them more of the Teal 2. So I think I answered all three of your questions.

我剛從烏克蘭回來。我必須和飛行員一起飛行。他們基本上使用了很多和我們一樣的無人機，我們希望能為他們提供更多的 Teal 2。所以我想我已經回答了你的所有三個問題。

Well, thank you very much. Congratulations and best wishes for the new year. Thank you.

好的，非常感謝。恭喜您並祝您新年快樂。謝謝。

Great. Thanks, Ashok.

偉大的。謝謝，阿肖克。

Jim McIlree, Dawson James.

吉姆·麥克爾裡、道森·詹姆斯。

Thank you. Good afternoon. Can you talk about the pricing this quarter versus last quarter and versus what's in the backlog?

謝謝。午安.您能談談本季與上一季的定價以及積壓訂單的定價情況嗎？

Yes. I mean, our pricing is standard. Most of our stuff has to be bought through the GSA. The border patrol buys for the GSA, and they also basically come to that. And so a drone and controller combo is approximately $15,000 for that combo. If you're just buying a drone with one controller, it's around a little over $10,000 just for the drone. So those prices don't change pretty much at all unless there's significant volume, which we're not there yet.

是的。我的意思是，我們的定價是標準的。我們的大部分東西都必須透過 GSA 購買。邊境巡邏隊為 GSA 購買，他們基本上也這樣做。因此，無人機和控制器組合的價格約為 15,000 美元。如果您只購買帶有一個控制器的無人機，那麼僅無人機的價格就約為 10,000 美元多一點。因此，除非出現大量交易，否則這些價格幾乎不會發生太大變化，而我們目前還沒有出現這種情況。

Yeah. The volume was what I was really trying to get at, is if you're hitting the volume breakpoints anytime soon. But it sounds like no.

是的。我真正想要了解的是音量，即您是否很快就會達到音量斷點。但聽起來好像不是。

What do you mean by breakpoints?

斷點是什麼意思？

Well, some level of volume, the customer would get a lower price.

嗯，達到一定數量後，顧客會得到更低的價格。

Yes. No, they haven't hit those thresholds yet. There's small discount once they order 100 systems and then the next break is pretty far up.

是的。不，他們還沒有達到這些門檻。一旦他們訂購 100 個系統，就會有小幅折扣，而且下一次折扣會相當高。

Okay. And then secondly, do you need or do you have foreign military sales of approval?

好的。其次，您是否需要或已經獲得對外軍售的批准？

We haven't applied for any foreign military sales currently. The FMS and the FMFs, even though the NDA is hopefully getting signed later today by President Biden, the NDAA does not fund FMS and FMF. The trips that I did just get back from to the Ukraine was to do a few things. One, you have to get your drone tested against electronic warfare and GPS jamming, then you have to basically go through the ODC and the embassy in Ukraine, which we did.

目前我們還沒有申請任何對外軍售。FMS 和 FMF，儘管希望拜登總統今天晚些時候簽署 NDA，但 NDAA 不會為 FMS 和 FMF 提供資金。我剛從烏克蘭回來，這次旅行是為了做一些事情。首先，你必須對你的無人機進行電子戰和 GPS 幹擾測試，然後你必須通過 ODC 和烏克蘭大使館的測試，我們就是這樣做的。

So once we get our testing parameters back from their testing sites, we then submit the letter of request that we get from the Ukrainian government to the US embassy and the ODC and then they'll ship it to DSCA in Huntsville for the FMS.

因此，一旦我們從他們的測試站點拿回測試參數，我們將從烏克蘭政府收到的請求信提交給美國大使館和 ODC，然後他們會將其發送到亨茨維爾的 DSCA 供 FMS 使用。

If we can get that part, you typically get a FMS award. The US Army will buy the drones and send them to the Ukraine. So that's the entire reason that I actually went to the Ukraine was for an FMS, hopefully buy from the armies for the Ukrainians.

如果我們能得到那個部分，你通常會獲得 FMS 獎。美國陸軍將購買這些無人機並將其送往烏克蘭。所以我去烏克蘭的全部原因是為了購買 FMS，希望從烏克蘭軍隊購買。

Got it. Very good on. Yes, that's it for me. Thanks a lot.

知道了。非常好。是的，對我來說就是這樣。多謝。

(Operator Instructions)

（操作員指示）

This concludes the question-and-answer session from call participants.

通話參與者的問答環節到此結束。

Great.

偉大的。

I will now turn the call over to Joey Delahoussaye of Core IR to read pre-submitted questions for management. Joey?

現在，我將把電話轉給 Core IR 的 Joey Delahoussaye，讓他閱讀管理層預先提交的問題。喬伊？

Yes, thank you, Sarah. Jeff, we received a few pre-submitted questions from investors recently and thought this would be a good forum for you to address those questions.

是的，謝謝你，莎拉。傑夫，我們最近收到了一些投資者預先提交的問題，並認為這是一個讓您解答這些問題的好論壇。

So with that, the first question is: last quarter, you said that you did not believe you needed to do an equity raise and now looking at non-dilutive financing. Can you explain maybe what changed given the recent equity raise?

因此，第一個問題是：上個季度，您說您認為不需要進行股權融資，現在正在考慮非稀釋性融資。您能否解釋一下最近股權增加後可能發生了什麼變化？

Yeah. No, absolutely. So the bottom line is all of the non-diluted possibilities, we had no control over. As we lightly mentioned Replicator tonight, which is who knows when that's coming, we are getting an FMS award. They pre-pay. The debt term sheets we were getting were horrific and would have destroyed the company.

是的。不，絕對不是。所以底線是，所有未稀釋的可能性我們都無法控制。正如我們今晚輕描淡寫地提到的 Replicator，誰知道它什麼時候會到來，我們將獲得 FMS 獎。他們預付款。我們收到的債務條款清單非常可怕，可能會毀掉整個公司。

So basically, we didn't want to play Russian roulette while we're having so many good things happening. Great revenue growth, margin expansion, all things and get us to breakeven. So we raised the money that we needed to and you'll notice that we no longer have a going concern in our Q.

所以基本上，當我們有這麼多好事發生時，我們不想玩俄羅斯輪盤。營收大幅成長、利潤率擴大，所有這些都讓我們實現了收支平衡。因此，我們籌集了所需的資金，您會注意到我們的 Q 不再具有持續經營能力。

So we hope that this is a -- Joseph wouldn't say this is enough to get us there. But I think that with everything that we have and the revenue growth that we have, I think we're going to be good.

所以我們希望這是一個——約瑟夫不會說這足以讓我們到達那裡。但我認為，憑藉我們所擁有的一切以及我們所擁有的收入成長，我們會做得很好。

Okay. Perhaps add that addresses the next question of: do you think you now have the capital you need you get to get to breakeven?

好的。或許可以補充回答下一個問題：您認為現在是否擁有實現收支平衡所需的資本？

Yes. This gives us the opportunity to get those non-dilutive opportunities that we can't control in time. But we -- there is no way that the SRR programs not getting awarded between May and September, and we have plenty of money to get to September. So that's a non-dilutive event.

是的。這使我們有機會及時獲得那些我們無法控制的非稀釋性機會。但我們——SRR 計畫不可能不在 5 月至 9 月之間獲得獎勵，而且我們有足夠的資金來維持到 9 月。所以這是一個非稀釋事件。

The FMS contracts I was just talking about that I went to the Ukraine for, they are pay upfront contract also. We are going to hopefully see our grant come in from the manufacturing grant that we just received. It was non-dilutive but that's taking more time than we thought. We hopefully get that in the next month or two. So this money gets us where we need to be. And I think it's enough get us to breakeven.

我剛才談到的我去烏克蘭簽訂的 FMS 合約也是預付款合約。我們希望看到我們的補助金來自我們剛收到的製造業補助金。它不具稀釋性，但這比我們想像的要花費更多時間。我們希望在未來一兩個月內實現這一目標。所以這些錢可以幫助我們達到我們所需要的目標。我認為這足以讓我們達到收支平衡。

Great. Thank you. So those that was the last of the previously submitted questions and thanks for your answers on each. Hopefully, this gave investors some additional insight into what's going on within the company.

偉大的。謝謝。以上是之前提交的最後一個問題，感謝您對每個問題的回答。希望這能讓投資人對公司內部的情況有更深入的了解。

Now I'd like to the call back over to you for any closing remarks, Jeff.

傑夫，現在我想請您做最後的總結發言。

Great. I want to thank everybody. It's unusual for us to have to do this on a Friday. But this is when our actually last day of the quarter -- to file the quarter was. We won't be doing this on Fridays anymore. We would typically have done it on Wednesday or something earlier, but we -- last week threw us off a little bit. We've done a lot in the last two weeks.

偉大的。我要感謝大家。對我們來說，在周五做這件事是不尋常的。但這實際上是我們提交季度報告的最後一天。我們不會再在星期五做這樣的事了。我們通常會在周三或更早的時候完成這件事，但是上週我們稍微耽誤了一點時間。過去兩週我們做了很多事。

But anyway, I'm pretty excited. I want to thank the Teal team; they're doing a great job. The biz dev team, they're doing a great job selling our drones. It's going to be a very, very exciting 2024. Thanks, everybody.

但無論如何，我很興奮。我要感謝 Teal 團隊；他們做得非常好。業務開發團隊在銷售我們的無人機方面做得非常出色。2024 年將會是非常非常令人興奮的一年。謝謝大家。

The conference has now concluded. Thank you for attending today's presentation. You may now disconnect.

會議現已結束。感謝您參加今天的演講。您現在可以斷開連線。